Business Plan for Creative Agency

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BUSINESS PLAN FOR ADVERTISING FIRM – TIGER

BRANDING, PROWLING MARKETEER

Prepared for

Dr. A. K. M. Saiful Majid

Course Instructor: W301 Entrepreneurship

Professor

Institute of Business Administration, University of Dhaka

Prepared by

Sajeed Alam ZR-60

Roll Number: ZR-60, BBA Batch 20, Section A

Institute of Business Administration, University of Dhaka

January 10, 2014

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January 10, 2014

Dr. A.K.M. Saiful Majid

Course Instructor: W301 Entrepreneurship Professor

Institute of Business Administration, University of Dhaka

Honorable Professor,

As commissioned on December 2014 under the Individual Assignments segment of your course curriculum, I am submitting the attached business plan titled Business Plan for Advertising Firm –

TIGER BRANDING, Prowling Marketeer. The business plan developed is based on research conducted

and class lectures on business plan development and consists of:

 A structured approach of a business plan consisting of all the standard components as referenced from Dr. Donald F. Kuratko

 Situation Analysis using SWOT and Porter’s Five Forces

 Elaborate marketing studies and market entry and pricing strategies

 Financial analysis of costs, profitability and break-even sales

 Organization management plans and strategies

In completion of this assignment, I am immensely grateful to you for handing over this practical learning opportunity, by exploring all the practical and theoretical aspects required to establish a proper business. This experiential learning experience is quite important to our development as students and future entrepreneurs and writing this business plan has helped me immensely. Thank you once again sir for everything.

Sincerely, __________ Sajeed Alam

ZR-60, BBA Batch 20, Section A

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EXECUTIVE SUMMARY

The advertising industry of Bangladesh has been growing since the late 1990s with the growing emergence of multinational companies in the local market. With growing global trends in consumer behavior and the burgeoning economic scenario of Bangladesh in recent times, consumers have become increasingly sensitive to the brand behavior. As a result, brands, both local and multinational have been heavily focused on marketing their products and services in a localized manner, aligning with global standards to successfully position them into consumer mindsets. This is where a lot of advertising agencies have been stepping into the scenario. Around 2003, global advertising agencies like GREY and Leo Burnett stepped into the scenario while the MNCs used their in-house advertising. However, due to the growing demand for local marketing intelligence, local advertising firms such as Asiatic ThreeSixty have dominated the local market.

Furthermore, the emergence of social media has massively transformed the paradigm of marketing, thus introducing social media marketing. Nowadays, technology itself has become central to marketing and even virtual reality and mobile application development are part of marketing services provided by ad firms in Bangladesh. Consequently, the industry has become highly lucrative for new entrants due to the relatively low start-up costs, easy knowledge of digital marketing trends and the most important aspect being creativity itself. The more creative agencies are, the better they are excelling. As a result, this business plan proposes the establishment of an advertising agency, Tiger Branding.

The name Tiger Branding is significant in terms of being an emerging and dominating advertising firm, which will seek to prowl on marketing intelligence and aggressively market the products to successfully position them into consumer mindsets. The organizational mission and vision also emphasize on socially responsible and ethical practices, with a view to ensuring that while the client is the lord, the content, i.e. the product or service to be marketed, will remain the king and the company will strive to maximize and promote the utility of the product or service.

In spite of a growing number of advertising firms already existing in the market, Tiger Branding’s core competencies will lie in the field of Digital Marketing, with its employee

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iv expertise in mobile application development, web design and firm knowledge of social media intelligence. Pricing strategies have also been competitively placed in order to position the company as a low-cost advertising agency providing superior services. Also, in order to enter the already saturated market, BTL strategies have been proposed which include the creation of a company design portfolio, a show reel to showcase video making competencies, and corporate gifts to be provided to corporate clients showcasing the design and marketing capabilities of Tiger Branding.

In terms of operations, the organization will follow a continuous process of client life cycle management with constant monitoring and evaluation. A fairly flat organizational structure will be maintained to ensure effective communication between the design teams and customer management teams, in order to develop the best marketing solutions. Employees will be working in small, cross-functional teams to maximize communication efficiency. For further operational flexibility, a combination of part-time (based on projects) and full time employees will be maintained. In terms of expenses and finances required, a significant initial investment in technological capital (equipment) will be required which will be adequately compensated for via a projected client locking of 15 clients in the first year and a significant profit in Year 1.

Risks to the business include the high investment on machinery and equipment which may not be adequately compensated for if client deals are not secured as per the desired targets. However, due to the nature of the industry which is highly creativity induced, the same equipment and workforce competencies can be widely applied to providing creative and design based solutions to any industry. In terms of milestones to be achieved, the company expects to reach a client portfolio of around 50 clients by its third year of operations and expects to diversify into international clientele and virtual reality marketing.

Overall, the most significant investment in Tiger Branding will be that of creativity, which itself is a non-monetary but immensely valuable asset. Provided the company runs as projected, it may soon become one of the top performing advertising agencies in the industry.

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1.0 BUSINESS OVERVIEW

1.1 Business inception

The proposed business plan caters to the establishment of an advertising firm. An advertising firm, is a service-oriented company which caters to marketing and advertising services of various brands, goods, services, organizations, NGOs and even government agencies. Services provided by advertising firms include logo design, campaign designs and marketing consultancy, advertisement development and a host of services catering to the promotion of the specific brand, product or company. In the advent of the digital revolution and the proliferation of social media, social media marketing itself is a significant part and an important tool for advertising firms in the industry. Based on these aspects, the proposed business plan caters to the development of an advertising firm providing all the above wide range of marketing solutions. The proposed name of the company is: TIGER BRANDING. The proposed tagline is: Prowling Marketeer.

1.2 Business name, logo and tagline

The rationale behind the name includes the national sentiment and the national animal of Bangladesh and its pride, the Royal Bengal Tiger. A tiger itself is a fearless animal which dominates the animal kingdom with its strength and hunting prowess, and a Royal Bengal Tiger is unique among all tigers. Likewise, Tiger Branding aims to be an advertising firm which fearlessly and comprehensively devours market intelligence to design and provide marketing solutions which captivate the target market of the client. The tagline, Prowling Marketeer, refers to the motion of a tiger prowling and its similarity in the proposed business’s approach, to prowl on the market and provide marketing solutions which puts the target consumers in awe. The logo features a tiger inside a circle representing the heart of Bangladesh.

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2 Figure 1. Company logo and tagline

1.3 Industry Background

The advertising agency industry of Bangladesh has seen a significant creative transformation in recent times. With the expansion of multinational company operations around 1998 (when Grameenphone entered the market and the Lever Brothers Bangladesh Ltd name was rebranded to Unilever Bangladesh Ltd), these MNCs sought the services of locally renowned art directors to help develop advertisement concepts. Print media was designed by global headquarters and most advertising was done in house. Around 2002, advertising companies entered the market, as both local and foreign products proliferated, particularly the fast-moving consumer goods. Leo Burnett entered into a joint venture as Bitopi-Leo Burnett, Ogilvy entered in 2008, GREY Dhaka has been operating since 2005. Local companies include Applebox Films, which specializes solely on advertisement making and is headed by renowned art director, Piplu R Khan, Beatnik Studios, Maverick Studios, Horin Branding and many more. Currently, there are over 60 registered advertising agencies, both local and international, operating in different capacities in the country. They provide a host of marketing services from consumer intelligence development, marketing and promotional strategies, campaign design and launch, logo design, web hosting to social media marketing.

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3 Figure 2. Grameenphone 3G Print ad designed by GREY Dhaka

The industry is highly capital intensive in terms of technological capital as advanced computers, television recording equipment, cameras and software are required to transform ideas into visible components. However, due to the growth of social media marketing and the propensity of all companies to enter the social media scene, marketing costs are significantly reduced. The most challenging aspect of the industry lies in its core essence of a constantly innovative sphere. Marketing is a dynamic field as consumer trends change by the minute and the internet’s global connectivity makes consumer behavior even more dynamic. To tap into the consumer mindset via the perfect positioning, campaign design, logo design and market offering requires a constant exercise of creativity. As a result, a lot of young and aspiring entrepreneurs are entering the industry due to the relatively low startup costs and their creative and innovative drive to attract the attention of the target customers. Moreover, companies are becoming increasingly consumer sensitive, thus localizing their brand messages and appeal. The more local a brand is, the better it sells as distributed by Bengali taglines and youth-oriented marketing campaigns. A notable example of that is “Bondhu Chara Life Impossible” – a youth oriented tagline of Airtel, promoting its cheap call rates. Capitalizing on all of that, local ad firms with good understanding of the young population and potential customer base of Bangladesh, are increasingly sought by big businesses to market their products. All of this makes the industry highly conducive to entrepreneurship.

1.4 Business description

1.4.1 Business summary

Tiger Branding is a proposed Advertising Agency, providing a host of marketing solutions and services ranging from logo design to campaign development and ad making, social media

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4 marketing services and marketing consultancy (The service offering is explained in details in section 2.2). Although, the business is part of an imitative model of existing advertising agencies, it aspires to capitalize on creativity as the most vital asset and apply this to reinvent and add a unique perspective to conventional marketing strategies and channels. The most distinctive feature of Tiger Branding includes:

 A unique approach to digital marketing through illustrations and video clip animation  User Experience Interface design and development

The above approach is not very commonplace among existing advertising agencies due to the shortage of computer and mobile application programmers in the industry and the lack of familiarity with social media trends among the companies. This is where my personal knowledge of mobile application development and extensive experience with social media interaction and technological framework may help device a competitive advantage in creating a unique value proposition for the business.

1.4.2 Business mission, vision and values

The mission statement of Tiger Branding is as follows:

To provide comprehensive marketing solutions to clients that can successfully captivate consumer minds and maximize the value and utility for all stakeholders involved in a socially responsible, ethical and transparent manner.

The company vision can be summarized as follows:

Tiger Branding expects to reach the ranks of a unique marketing agency where success is measured by a continuous flow of creativity to constantly improve marketing solutions and strategies for clients, and to develop a formidable reputation of a dynamic marketeer.

The proposed enacted values of Tiger Branding can be simply outlined as follows:

 To challenge the status quo constantly and embrace failure as a cornerstone for development

 To ensure transparency across all levels within the organization and outside

 To ensure that the customer is the lord while the content, i.e. the brand itself, remains the king

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2.0 MARKETING

2.1 Market Situation Analysis

After comprehensive understanding of the industry and the target consumers, external and internal factors of the proposed advertising firm, Tiger Branding, need to be analyzed to identify the company’s competitive standing and its challenges, constraints and growth opportunities.

2.1.1 SWOT Analysis

The SWOT analysis for Tiger Branding caters to the company’s internal, prospective strengths and weaknesses to emphasize on, and its external opportunities and threats to capitalize on.

Strengths:

 Strong knowledge of social media trends due to the presence of a young team actively involved in social media marketing. This helps capitalize on devising the right social media marketing strategies.

 Strong technical knowledge: web designing, logo designing, movie making, photography

 Low startup costs due to the existing resource pool of computers and electronic devices and a young and agile workforce to bolster creativity

 Existence of a strong network among existing peers and the alumni association of IBA, DU which itself contains a host of entrepreneurs and top executives at the leading companies of Bangladesh

Weaknesses:

 Lack of market understanding to cater to brands which are designed for the majority of the public and will require consumer behavioral understanding at the grassroots  Perceptual bias of big corporate clients preferring skilled advertising agencies over

start-up enterprises which may result in not being able to secure them

 Lack of technical knowledge on mobile application development, which is an emerging platform for digital marketing

Opportunities:

 The increasing popularity and extensive use of social media by Bangladeshi citizens is a green field for social media marketing, which is one of the key services to be provided by Tiger Branding

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6  Reputed and large scale advertising firms often outsource copyrighting and designing work to lower scale advertising firms, and Tiger Branding can capitalize on that to take in these outsourced projects and indirectly interact with the big clients, while simultaneously increasing its portfolio of marketing experience.

Threats:

 Creativity is extremely dynamic and non-quantifiable and so companies can easily gain a competitive edge

 Social Media Marketing is becoming increasingly commonplace for regular users to learn and so many clients may choose to do so themselves instead of hiring advertising agencies

 Media personalities are launching their own advertising agencies banking on their experience in film and television and they stand as threats to nascent advertising start-up ventures like Tiger Branding

2.1.2 Competitor Analysis

Tiger Branding is a relatively small scale proposed advertising firm with prospects for growth. Given the size, scale and scope of services to be provided, the major competitors of Tiger Branding include:

i. Beatnik Designs: Beatnik is a start-up venture itself with a highly successful run in the

last 4 to 5 months. It extensively focuses on social media marketing and has secured clients such as popular restaurants George’s Café and Veni Vidi Vici and large scale companies like IPDC and LG Bangladesh. One of the biggest strengths of Beatnik is its unique designs for all sorts of media (print and digital) and its widespread expertise in mobile application development.

ii. Maverick Studios: Maverick Studios is a hub of advertising innovation. The company

has tapped into the corporate marketing industry, developing marketing content for the biggest corporate clients such as Grameenphone, and overseeing B2B promotion. Its social media marketing is also widely recognized and the company manages social media engagement of top companies like Robi. Maverick Studios also has a dedicated research division for the development of mobile applications and unique software called ice9 interactive and is currently developing virtual reality entertainment.

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iii. Magneto Digital: Magneto Digital is also a growing start-up enterprise which is

heavily involved in social media marketing. Its top clients include over 20 restaurant chains which have a social media following of over 50000 people on all social media platforms thanks to Magneto’s unique marketing designs. The company is also actively involved in content marketing and consultancy services for top corporate clients like Grameenphone.

2.2 Service Offering

As a nascent advertising firm, Tiger Branding’s prior objective is to capitalize on the growing opportunities of social media marketing, print media and content design and visual/audio content generation. With practical considerations in mind, the company proposes to operate in a competitively priced structure, establish offices in a convenient location and promote itself to clients accordingly.

2.2.1 Service

The main services to be offered by Tiger Branding include:

 Digital Marketing: comprising social media marketing on Facebook, Twitter, YouTube, Instagram and Google+, content generation on social media platforms, digital platform page management and consumer engagement, digital advertisement promotion and consumer trend analytics

 Content Marketing: SEO, digital advertisements, visual/audio media

 Support services for major advertising firms: via logo design, peripheral creative media design and other support design and creative work

2.2.2 Pricing

Based on the services mentioned above, the pricing at advertising firms is usually arbitrary as it depends on the duration, creative complexity, scale and magnitude of the task involved. However, certain rates can be standardized as per global standards and in view of competitive pricing compared to that of existing advertising firms. Tiger Branding has the following basic pricing plans for clients to avail:

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i. Social Media Marketing/Digital Marketing

Platform/marketing type Quotation/Price Facebook

Sponsored advertisements, search advertisements

10% markup of actual costs which range between bids of US$0.6 and US$2 per square inch of impression as set by Facebook

Facebook page management via dealing with customer comments, messages and feedback and providing view and engagement analytics per month

Tk. 4,000 per month of page administration and customer response management, and a detailed consumer engagement report at the end of each month

Design of digital banner and online content Tk. 3000 per 50 impressions/ content designs

Google+ and Google

Page administration and content generation along with boosting content

5% markup of actual costs ranging between US $0.5 and $1.6 per square inch of

impression as set by Google Search Engine Optimization (SEO) to

promote company on Google search results

15% markup of actual costs depending on the type of SEO preferred by clients.

Instagram

Digital content generation Tk. 2000 per 100 impressions

Twitter

Tweets and impressions Tk. 2000 per 100 tweets

Website

Web interface design Tk. 4000 per webpage (basic template) Tk. 3000 per impression of flash animation Tk. 1000 per month for monthly website engagement analytics report

Mobile application

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ii. Development of audio-visual and design-oriented content Content type Quotation/Price

Logo creation, company banner design, color scheme, font and theme design

Tk. 3000 per logo

Tk. 5000 for overall package Creation of advertisement or video clips Tk. 2000 per minute of footage

Tk. 4000 per 10 seconds of animation Creation of radio commercial Tk. 1000 per 10 seconds

Creation of company visiting card Tk. 1000 Office interior design specifics via CAD

designs based on logo, theme and values

Tk. 5000

Product packaging design Tk. 1000 per 5 square inches of design space

It must be noted that these standard prices will be subject to change based on the length, complexity and creative input required to develop a superior experience for the client. Prices will be negotiable in bulk and mass scale consignments and will vary for outsourced work received from other advertising firms.

2.2.3 Place

The main target customer base of Tiger Branding constitutes the following:

 Local and multinational companies specializing in products (fast moving consumer goods) and service delivery

 NGOs and government organizations  Retail stores and brands

 Educational institutions

 Other large scale advertising firms seeking to outsource design work

As a service provider, Tiger Branding’s major engagement will be with corporate clients and businesses (B2B) which will require setting up offices in a convenient and accessible location. However, as a start-up enterprise with limited operations, I have located the office premises to be in Uttara in a commercial enterprise operated and owned by my family to compensate for high rental costs throughout Dhaka city.

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10 Figure 3. Office Interior

2.2.4 Promotion

As part of a B2B model, Tiger Branding’s major promotional activities will be centered on BTL marketing strategies to tap into the corporate client base. It will follow the following strategies to tap into the market:

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11  Relationship development through existing network – capitalizing on the alumni network for IBA graduate entrepreneurs and top executives at reputed local and multinational companies

 Establishment of a website featuring design portfolio and sample work – the website itself will be effectively designed to showcase the web designing capabilities of Tiger Branding and a show reel will be featured to showcase its video making capabilities. The website will also feature a design portfolio to showcase the design capabilities.

Figure 4. Website Interface

 An effective presence on social media with Facebook, Twitter, Instagram and

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12  Visiting cards with design portfolios to be prepared and submitted to corporate

clients as a token and promotional tool – may include calendars and gift items

exclusively designed by Tiger Branding as corporate gifts

Figure 6. Visiting Card

3.0 OPERATIONS

3.1 Office location

As cited in the earlier segment, the location has been selected in accordance with the competitive advantage of having an existing vacant office space at Uttara Sector 12. Due to the existing overcrowded nature of Gulshan and Banani and the high rental costs in those areas, Uttara is a budding location for businesses to move into. Furthermore, due to the existing family owned space, costs are further deduced and more resources can be invested to improve the services and technological competencies. Rent is hence not a cost consideration but standard utility expenses will be provided. The initial office of Tiger Branding will be located in Uttara Sector 12, House 3, Suite 7A, and Road 14. The following Google Map illustration identifies the location of the office premises.

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13 Figure 5. Location of Tiger Branding office

3.2 Operational procedures

The standard operating procedure of Tiger Branding can be described as follows in sequential order:

i. Client scouting and engagement ii. Listing of client requirements

iii. Preparation of a proposal and draft of client requirements in simulation iv. Negotiation with client on terms of design, monetary agreements and terms

v. Revision of agreement and designs and final securing of client deal vi. Execution of marketing tasks

vii. Constant monitoring and evaluation of tasks with feedback and engagement with client

viii. Completion/continuity of tasks as described in terms of agreement ix. Closing of client deal

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i. Client management team: This team deals with the entire client management life

cycle:

a. Client scouting, engagement and securing b. Client interaction and relationship development c. Client retention

ii. Design focus team: Once client requirements are received, the client management team

collaborates with the design focus team to prepare a proposal for the client. The client management team submits the proposal and re-engages with the client. After final terms are agreed upon, the Design focus team executes the tasks.

iii. Monitoring and evaluation team: a cross-functional team constituting team heads,

overseeing timely execution of projects and performance evaluation of employees.

3.3 Equipment and logistics

The nature of an advertising firm is technological capital intensive and high quality equipment is required. Following is the list of required equipment and the corresponding expenses:

i. Digital Single Lens Reflex Camera with 18.1 Megapixel Resolution and Full HD recording capability – preferred model is Canon EOS 650D with a market price of Tk. 54,000

ii. Camera Kit, tripod and lens – approximately Tk. 13,000

iii. 3 Apple MacBook Pro 13” Laptop – 1 currently owned and the rest accounting to Tk. 2, 30,000

iv. 3 Core i5, Dedicated 2GB graphics operating Desktop computers – approximately Tk. 1,20,000

v. Office furniture – One conference table, 20 office chairs, 15 desk stands of Board and

Partex furniture at approximately Tk. 3,75,000

vi. High speed internet connection – Link 3 enterprise connection of 20 Mbps at Tk. 8000 per month

vii. Air conditioning and office interior expenses – Tk. 9,80,000 viii. Utility expenses contingent on use

The overall initial expense for setting up and procuring equipment will hence wrap up to approximately Tk. 17,73,000.

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4.0 MANAGEMENT

4.1 Organizational structure

Tiger Branding proposes to follow a highly flat organizational structure with employees working on cross-functional teams offering high engagement and communication. The organizational structure can be outlined as follows:

i. Top management – the top management will consist of:

a) CEO and Creative Director – overseeing entire operations b) Head of Design Team – overseeing operations of Design Team c) Head of Customer Relationship – overseeing customer relationship

d) Head of Audit, M&E – overseeing accounting and company finances along with evaluation of targets

ii. Operational teams – there will be three operational teams which will be

cross-functional in nature and constantly collaborate to deliver results:

a. Client management team: This team deals with the entire client management

life cycle:

 Client scouting, engagement and securing  Client interaction and relationship development  Client retention

b. Design focus team: Once client requirements are received, the client

management team collaborates with the design focus team to prepare a proposal for the client. The client management team submits the proposal and re-engages with the client. After final terms are agreed upon, the Design focus team executes the tasks.

c. Monitoring and evaluation team: a cross-functional team constituting team

heads, overseeing timely execution of projects and performance evaluation of employees.

iii. Audit and Evaluation Team – this will consist of the CEO and Creative Director, the

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4.2 Employee structure

There will be 3 types of employees at Tiger Branding:

i. Permanent employees – Permanent employees will be stationed in each team and

will receive fixed salaries along with project-based bonuses and incentives

ii. Part-time employees – Part-time employees will work on an ad-hoc basis

depending on the project and will receive payment based on the project’s revenue distribution.

iii. Office staff – for office maintenance

All permanent and part-time employees will be from 3 categories: managerial, technical and operational.

The technical employees will be from the following expertise:

i. Web application development with knowledge of Java, C++ and .html ii. Mobile application development with knowledge of iOS and Android apps iii. Expert proficiency in Adobe Creative Suite

iv. Expert proficiency in video editing software suites v. Video shooting and photography

The managerial employees will be from the following expertise:

i. Expertise in leadership and management of teams to ensure tasks are executed on time

ii. Business acumen, strong market understanding and ability to make financial analysis and projections

iii. Ability to set organizational ethics, guidelines and implement them for monitoring and evaluation

iv. Good communication skills for client engagement

The operational employees must have:

i. Strong design and aesthetic sense

ii. Ability to work under pressure situations and perseverance iii. Good communication skills for client management

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4.3 Corporate governance

Tiger Branding will be a sole proprietorship. All employees will receive salaries and performance-based pay and incentives. In terms of legal structure, the owner will be solely responsible for all assets and liabilities.

5.0 FINANCIAL SEGMENT

The financial segment of Tiger Branding will analyze the financial viability of the business and the feasibility of operations via various financial statements.

5.1 Pro Forma Balance Sheet

The following assumptions were made in preparing the balance sheet  A bank loan of Tk. 20,00,000 will be taken in the first year

 A total of 15 clients will be locked in 2015, each of them taking standard digital marketing services accounting to over Tk. 2,00,000 per month

TIGER BRANDING

Pro Forma Balance Sheet for the Years 2015-17

2015 2016 2017 ASSETS Current assets Cash Tk. 8,00,000 Tk. 9,70,000 Tk. 9,20,000 Accounts receivable 4,00,000 5,00,000 2,00,000 Inventory 10,000,000 12,80,000 13,00,000 Prepaid expenses 4,50,000 4,00,000 3,00,000

Total current assets Tk. 26,50,000 Tk. 31,50,000 Tk. 27,20,000

Fixed assets

Equipment Tk. 17,73,000 Tk. 22,40,000 Tk. 25,60,000

Less: Accumulated depreciation

(30,000) (45,000) (60,000)

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18 Total assets Tk. 45,93,000 Tk. 65,45,000 Tk.52,20,000 LIABILITIES Current liabilities Tk. 20,00,000 Tk. 28,00,000 Tk. 32,00,000 OWNER’S EQUITY Tk. 25,93,000 Tk. 37,45,000 Tk. 20,20,000

Total liabilities and owner’s equity

Tk. 45,93,000 Tk. 65,45,000 Tk. 52,20,000

5.2 Income Statement

The income statement has the following assumptions:

 A total of 15 clients will be locked in 2015, 25 clients in 2016 and 40 clients in 2017  Each client will on average avail Digital Marketing services of Facebook and Instagram

accounting to around Tk. 3,00,000 per month

 Inventory and operational expenses have included set up costs of Tk. 17,73,000 for equipment as calculated earlier

 Income tax has been estimated at 15%

TIGER BRANDING

Income Statement for the Year Ended December 2015

Sales Revenue Tk. 36,00,000

Less: Cost of Service Provided

Inventory and service components, January 2015 Tk. 14,73,000

Purchases 5,00,000

Cost of service provided 19,73,000

Gross margin Tk. 16,27,000

Operating Expenses

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Operating income Tk. 3,27,000

Financial expenses

Income before taxes Tk. 3,27,000

Estimated income taxes 49,050

Net profit Tk. 2,77,950

6.0 CRITICAL RISKS

6.1 Potential problems and risks

The potential problems of the business include:

 High risk and investment required which may not be adequately met by client deals  The advertising agency industry is becoming increasingly more saturated and

differentiated services in the market will be difficult to provide

 Clients may not be confident with entrusting marketing services to a start-up agency  Peripheral and outsourced work from other agencies will not be a financially

sustainable business

6.2 Alternative courses of action

Based on the potential problems identified, the following alternative courses of action may be undertaken:

 Merger or strategic partnership with existing advertising agencies of similar scale to collaborate on a bigger platform with greater resources

 Diversifying business to various design-oriented businesses such as interior decoration, handicraft, video-making and photography ventures

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7.0 HARVEST STRATEGY

7.1 Continuity of business strategy

After revenue targets and break even sales are achieved, the company will pursue a

client-goal-oriented program. This program will have the following features:

 A set of goals in terms of the number of clients to reach per quarter, the number increasing exponentially

 An aggressive performance-based pay grade to motivate employees to deliver results successfully

 Incorporating partners into the business to expand sources of capital and to increase operations subsequently

 Expansion and research into virtual reality software development for marketing solutions

 Expanding client base to foreign companies to gain foreign clients  Securing long-term deals with clients to ensure continuity of service

 Increasing physical presence in the community via aggressive BTL marketing to reach clients

8.0 MILESTONE SCHEDULE

The milestone schedule of Tiger Branding is as follows:

i. Year 1 to Year 2: reach break-even, maintain client base of 15 ii. Year 2 to Year 3: set target client base of 45

iii. Year 3 to Year 4: accumulate foreign clients, set target client base of 70

The above projections are highly speculative and will depend on the company performance, market situation, consumer behavior and the overall paradigm of marketing globally and locally.

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9.0 APPENDIX

REFERENCES

How to Write a Business Plan | SBA.gov. (n.d.). The U.S. Small Business Administration. Retrieved May 27, 2014, from http://www.sba.gov/category/navigation-structure/starting-managing-business/starting-business/how-write-business-plan

Kotler, P., & Keller, K. L. (2012). Marketing management (14th ed., Global ed.). Boston, [Mass.: Pearson.

Kotler, P., & Armstrong, G. (2012). Principles of marketing (15th ed.). Englewood Cliffs, N.J.: Prentice Hall.

Business Plan for Creative Agency

BUSINESS PLAN FOR ADVERTISING FIRM – TIGER

BRANDING, PROWLING MARKETEER

Prepared for

Dr. A. K. M. Saiful Majid

Course Instructor: W301 Entrepreneurship

Professor

Institute of Business Administration, University of Dhaka

Prepared by

Sajeed Alam ZR-60

Roll Number: ZR-60, BBA Batch 20, Section A

Institute of Business Administration, University of Dhaka

January 10, 2014

TABLE OF CONTENTS

EXECUTIVE SUMMARY

1.0 BUSINESS OVERVIEW

1.1 Business inception

1.2 Business name, logo and tagline

1.3 Industry Background

1.4 Business description

2.0 MARKETING

2.1 Market Situation Analysis

2.2 Service Offering

3.0 OPERATIONS

3.1 Office location

3.2 Operational procedures

3.3 Equipment and logistics

4.0 MANAGEMENT

4.1 Organizational structure

4.2 Employee structure

4.3 Corporate governance

5.0 FINANCIAL SEGMENT

5.1 Pro Forma Balance Sheet

5.2 Income Statement

6.0 CRITICAL RISKS

6.1 Potential problems and risks

6.2 Alternative courses of action

7.0 HARVEST STRATEGY

7.1 Continuity of business strategy

8.0 MILESTONE SCHEDULE

9.0 APPENDIX

REFERENCES