Amity University Mumbai

Amity Business School, Mumbai

Course – MBA Banking and Finance

Subject – Business Communication

Mid – Semester Assessment OCT – 2020

Assignment No – 1

Batch - 2020 – 2021

Enrollment Number – A70050220006

Date – 10th December 2020

Submitted by – Dhanisha Lolam

 LETTER TO CFO

Date – 10th December 2020.

To,

Nandini Dande,

Chief Financial Officer,

Fruity-Tea

Subject - Approval for Advertisement Budget.

Dear Ma’am,

Hope and trust you are doing well.

I am writing to you to seek your approval on the company’s proposed advertisement budget
for the current financial year. Social media advertising is the preferred mode of
advertisement, keeping in mind the ongoing coronavirus crisis which is being faced
worldwide and the numerous obstacles faced by the market.

I am aware about your concerns raised on controlling the budget for this current financial
year but I would request you to consider the proposal, as I feel that this step taken by us
would certainly help us to improve our position in the market.

The budget has been slightly increased from the previous year but this would only benefit us
by winning our customer’s trust and loyalty in the long run while being one step ahead from
our competitors.

Please find the Approval Note and the Advertising budget attached below

Hence, I request you to consider how this will impact us in long run and approve our proposal
of the proposed Advertising Budget.

Thank you,
Best Regards,

Dhanisha Lolam,

Brand Manager.

Fruity Tea.

APPROVAL NOTE

About Fruity Tea Brand

Fruity Tea company has been established, evolved and developed over the upcoming years
with an aspiration of providing the best tea experience a tea lover can experience. We aim on
providing different and unique flavors of tea to our consumers, keeping in the mind the
traditional and warm feeling of our Indian heritage. We select premium quality products, with
handmade packaging and fast delivery but with a price tag which is very affordable to our
consumers. We want our consumers to get engrossed while sipping every sip of our delightful
Tea and concoctions. We love and we take pride in what we deliver to customers in terms of
flavors as well as customer retailer relationship. Its not just about delivering Tea and
concoctions to our consumers but also connecting with them and delivering products which
are available for different consumers with different taste and emotions. We also provide
customized tea according to our consumers taste palate. This is not the only thing we are
trying to achieve; we want to contribute to our society by using fewer synthetic products and
also use reusable products for packaging of our products, our step towards being ecofriendly.

The Business Objective we are trying to achieve

The business objective which we are trying to achieve here is to how by strategies and
turning into social media advertising we can capture our customers attention. By using this
mode of advertisement, we will not only attract customers attention but also their brand
loyalty and deepen our Brand Image. By customizing our consumers needs with their taste of
products will not set us apart from others but also produce a reasonable net profit by the end
of the year. Consumers interest would increase and thus result in boosted sales for our
company.
Break Up of the cost that the brand is expected to incur

The Advertising campaign which we are seeking to get an approval on includes Social media
marketing, Pay per click Advertisement, Print Advertising, Native advertisement, Geofencing
Advertising, Influencer Advertising, Display and Outdoor advertising. Now, Social Media
and Influencer Advertising is the most common and most used mode of advertising and have
the highest share in expense. Results show that 80-90% percent of the people use social
media, through which we can reach and cover a wide area of consumers. As we know during
this pandemic the whole world is working digitally and the usage of social media has
increased to 8%, this may be a prime opportunity for us to hike up our sales. Influencer and
Geofencing would help us target the younger audience as many of them are majorly
influenced by them. Display and outdoor advertising anyways have a lower share in the
expense. People rarely see the outdoor banners and remember them.

Deviations in the Advertising Budget in the previous year

The Deviations in the advertising budget is as follows:

We plan on increasing the expenditure on Influencer, Social media and Geofencing

advertising and reducing the expenditure on Outdoor, Display and Printing Advertising. With
the lockdown being held, people are hardly getting out of their houses, social gathering has
also completely been banned, this is the best possible way which we hike up our brand sales
and image. Our sale team is ready to work and gear up on this proposal and we are confident
with our deviations and hope to achieve our targets.