2. SHAHID ABBAS
 MUHAMMAD ARSLAN
 AHMAD SHEHZAD
 KAMAL SUBHANI
 MUHAMMAD ATIF RAFIQ

BC11-252
BC11-259
BC11-264
BC11-294
BC11-296

3. Healthy water for Healthy Life

4.  Company
Name
AASKA Mineral Water (Pvt) Limited
 8 Km raiwind road near Bakhtawar hospital
Lahore.
 Phone No.042410007

5. 




Muhammad Arslan
Phone # +923037343810
Shahid Abbas
Phone # +923447487764
Ahmad Shehzad
Phone # +923426788877
Kamal Subhani
Phone # +923455827242
Muhammad Atif Rafiq
Phone #+923008679443

6. 






Our business is partnership.
We started business with the capital of Rs
30,000,000
Every partner will contribute 5 lac and remaining
amount we will obtain from bank
Our business is to provide healthy water to the
people
We will make mineral water in different packing
Our product is mineral water and we will deliver
our product to customer „s home free
We will solve the problem of inconvenience of
customer by delivering products to their homes

7. Our target market is Johor town, WAPDA town,
Azmeer town, EME, Eden housing society Behria
town and the departmental stores which are
situated near by the above mentioned areas
 Demographic

Our customers are upper class families

They have their own businesses and they are
health conscious

They are quality conscious

Behria town‟s people are richest families and
they are quality conscious

8. Our expansion decision is based on our marketing
strategy of increasing our customer base
 Other mineral water companies are taking this huge
opportunity
of
targeting
the
psychographic,
demographic and benefits sought segments of
Lahore region
 As we are in the business of bottled water which is a
consumer product no big effort in decision making is
required by the customers so push strategy is that we
are providing free of cost home delivery of water
 While other companies charge for this service. Due to
this reason we have competitive advantage on other
companies


9. 

Following fixed and working capital requirements have been
known for operations of the future business.
Table 1: Capital Investment for the Project
Description
Amount
Capital Cost
Plant and Machinery
1,600,000
Furniture, Fixture and Office Equipment
200,000
Motor Vehicles (2nd hand)
600,000
Pre-operating Cost
100,000
Total Capital Cost
2500,000
Working capital :
Building Rent
50,000
Cash
800,000
Total project cost
3,000,000

10. 
Vision
'Each day we struggle to make our goods full of flavor
and in good health choices that help clients care for
themselves and their families

Mission
“Confidently effect the community location in which
we work as liable business residents, with due esteem
for those ecofriendly ethics and social aims which
mend superiority of life”

11. 




The market of mineral water bottles has risen by at
least 15 per cent a year as the quality of tap water
depletes persistently in Pakistan
The quantum of the demand is projected to be
around 1.1 billion liters as the awareness about the
quality of drinking water grows in society
The bottled water has been powered by urban
middle class that aspires to switch to bottled water
to avoid water-borne diseases
Bottled water has also been treated as status
symbol in middle income families that tends to
follow the lifestyle of elite in Pakistan
`1

12. 




Five years back the market was hardly 25 per cent
of the current level of 1.1 billion liters a year
People living in posh areas seemed to be switching
over to bottled water
The situation seems to be similar in the mineral
water business such like tetra milk
Success factor of this business is that water
pollution is increasing day by day and people
becoming aware of it and they are becoming
conscious about health
Our vision is to provide healthy water to the nation

13. Company has three types of goals, operational,
financial and others





Operational goals
Enhance our water stewardship practices by partnering
with local communities and stakeholders to support up
to two watershed improvement projects per year (20142018)
Complete a comprehensive assessment of our materials
and packaging footprint by 2013, and use findings to
make future waste reductions and promote second-life
use
Develop next generation bottles made from 100%
recycled or renewable material by 2020
Increase the reach of water education through support
and engagement with leading water education entities

14. 



Financial
According to management of company will sale
250 bottles per day in start and in only one
year it will be 450 bottles per day
It is decided by the management that price of
the each bottle will be Rs.80 and the amount of
the sale will be Rs.20000 which will be
Rs.36000 in only one year
According to above mentioned estimation,
Rs600000 is the monthly sale of the company

15. 
Others
In others, company has the following goals



Continue efforts to educate and encourage
citizens to reduce their average annual caloric
intake from beverages
Continue to advocate for federal standards on
public disclosure of source, quality, and
process reporting for bottled water
Now, last but not least important goal is that,
to provide healthy water for healthy life
because quality has a vital role in the success
of every type of product

16. 
Desired image and position in market
It‟s company strategy to get a powerful image in the
market and a leading position among the competitors
 SWOT analysis
 Strength
 Socially responsible company
 Provide quality products
 Employ skilled labor and educated staff
 Have easily available products
 Have an efficient research and development
department
 Market a strong brand name, with a wide range of
products

17. 










Weaknesses
Is a relatively new company in Lahore as compare
to its rivals?
Have a limited relations with people
Opportunities
Consider adopting a credit policy to increase
sales
Develop some farms own
Threats
Price fluctuations due to rupee devaluation
Market segment growth could attract new
entrants.
Economic slowdown can reduce demand
Current market situation

18. 



Cost leadership
We follow cost leadership strategy in our
business
We use this strategy for our product, we
offer lower price as compare to our rivals
This strategy works well when buyers are
sensitive price changes when competing
firms sell the same commodity products, and
we can get benefit from economies of scale

19. 








Differentiation
We provide free home delivery to customers at their home
and departmental stores.
Focus
AASKA wants to win and keep customers: distributors,
departmental stores and retailers and the final consumers
They have different requirements
Trade customers expect excellent service, correct
information and timely delivery
Consumers study taste, appearance and price when they
make their choice. AASKA is offering quality to customers
It also means ecofriendly excellence
AASKA shares society‟s concern for the environment and is
committed to environmentally sound business practices
throughout the target Customers are central focus of AASKA
and it must always respect their needs and preferences.

20. 
Product

21. 





Product feature
Our product is full of minerals and healthy
from all aspects
AASKA has very low Sodium content, and has
no calories
AASKA has very low Sodium content, and has
no calories
AASKA is bottled at its state-of-the-art and
hygienically protected plant at raiwind road
AASKA is not chemically treated and no
minerals are added to it artificially

22. 







Customer benefits
Its great benefit for the customer to receive the
product at home without cost
Customer can get high quality water by purchasing it.
It has no side effect on customer‟s stomach or any
health disease
Uniqueness
Customer can get his payment back if they are not
satisfied with the product
We will provide dispenser to existing customers if
they motivate other people to buy our 1500 bottles
per month
We will also provide dispenser to retailer if he
purchase 2600 bottles per month

23. 

Trademark of the company is below
We protect our formula and process of
purification and bottle style

24. Raw Material
Natural water is our raw material
 Production process
 The first step for setting up a water purification plant is
the analysis of source of water
 After the chemical analysis, the terms of the purification
plant are set
 In the purification plant, source water is stored in the
feed water tank, passes through the sand filter for
preliminary water filtration
 Water then passes through the dosing pump-I where
chlorine is added to kill the germs in the water
 After the chlorination, water passes through carbon filter
 It help in the maintenance of proper odor and taste of the
water
 It also removes chlorine from water. Water is then passes
from dosing pump-II, where Sodium Meta Bisulphate is
added
 It helps in dechlorination of water.


25. 







Water is filtered next and passes through dosing pump-III, where
anti scallant is added
It prevents scaling of membrane from calcium, magnesium and
biological growth
Water then passes through reverse osmosis module
This stage of the process makes water clear from all the
impurities and minute elements
Water then passes through dosing pump-IV, where minerals are
added for taste development
After this stage, water undergoes Ultra Violet treatment to avoid
any impurity from bacteria and other microorganisms
Water then passes through automatic washing, filling and
covering plant. Here water is filled into bottles
After filling bottles are taken into the warehouse or shipped to
the retailers. The complete process flow diagram is as under

27.  Magnesium,
Sodium, calcium and
anti-scallant are consumable
asset of the company
 Company will utilize almost Rs
30,000 per month on these things
purchase

28. 



We will produce our own bottles rather than
buying from other company
We will give our customer one month credit
facility, (customers can pay bill after one
month)
We will install one more new plant of water
purification, through which customers can
enjoy less per unit cost
We will start one new branch in Faisalabad

29.  Marketing Strategy
 Our target market is Johar town, WAPDA town,
Azmeer town, EME, Eden housing society Behria
town and the departmental stores which are
situated near by the above mentioned areas
 After the company has segmented a market,
management must next select one or more
segments as its target markets
 The target market consists of upper lower class
to upper class due to their purchasing power and
company is following multiple targeting
strategies which include mainly two focus groups
i.e. home & Retailer particularly for bulk water.

30. 



Customers know that our product is a quality
product and with suitable cost
Customers are very careful about their
health, and our product provides them pure
water for good health, without any side effect
We will provide dispenser to existing
customers if they motivate other people to
buy our 1500 bottles per month
We will also provide dispenser to retailer if he
purchase 2600 bottles per month

31. 



Market of our product is increasing day by
day
Customers trends are changing they prefer
using purified water to normal water
Our market is not a large but it is growing
day by day
Size of marketing is increasing day by day
because ever changing fashion and trends are
influencing the customer

32. 




Promotion is the very important and crucial element
of marketing strategy as through it the company
establishes its image in the minds of the customers
AASKA is promoted by using different ways of
promotion
Advertisement of AASKA is done through TV, radio,
billboards, newspapers and magazines
Current advertising slogans are that AASKA is
“HEALTHY WATER FOR HEALTHY LIFE” AASKA also
conducts the tradeshows, concerts, events,
sponsorships, and discounts for sales promotion
For establishing public relation, AASKA distributes its
newsletters, annual reports, calendars and diaries,
lobbying, donation for charitable and civic events

33. 
Media
We use electronic media for advertisement, we have contract
with different websites such as yahoo, send sms.pk,
Facebook, news paper and magazine etc.
And we have printed posters and banners for advertisement.



Table 2.Media cost in percentage %
TV Advertisement
30%
Website
20%
Newspaper
35%
Magazine
7%
Banners and pamphlets
8%

34. 


It is decided by the management that price of
the each bottle will be Rs.80 for home
delivery and Rs70 for retailer and quantity
will be 19 Liters
Competitors
Sonnevalley, Gourmet, Nestle, Description
mineral water
Competitors name
Price
Nestle
120
Gourmet
90
Sonnevalley
80
Description mineral water
95

35. 




Ahmad Shehzad is a marketing manager who
will take over all the following responsibilities
We have two pick up vans for distribution of
our product in customers‟ homes and
departmental stores
Distribution channel
Branding and marketing of bottled water is
as essential as water for the survival of
the human body
The traditional marketing tools include site
advertisement, TV and print media
advertising and brochures

36. 


The study shows that 10% of the revenue is spent for
advertising and promotional purposes
The study suggests to focus more on other
marketing magnets that include interactive
marketing, cooperative marketing may include
educating the general public about the importance
of water and its daily consumption requirements for
human body through the participation in seminars
and in general public gatherings
One of the marketing options is to sponsor public
events like cricket matches or hospital campaigns,
distribution free brochures about water and its daily
consumption, water requirements in different age
brackets

37. Existing competitors
Sonnevalley, Gourmet, Description mineral water
,Nestle, Butt, Atlantic, Kinley, Aqua Fine water








Strength
Socially responsible company
Provide quality products
Employ skilled labor and educated staff
Have easily available products
Have an efficient research and development
department
Market a strong brand name, with a wide range
of products

38. 







Weaknesses
Is a relatively new company in Lahore as compare
to its rivals?
Have a limited relations with people
Potential Competitors
As the trend of market, it is changing and it is a
product which is developing day by day
Every 2nd person wants to starts this business.It
is difficult to say something about potential
competitors
They can affect our business because people
want to taste new thing one time
But our strategy is to improve quality every day to
compete such unknown competitors.

39. 




Organizational Structure
Organizational structure is the formal
framework by which jobs tasks are divided,
grouped, and coordinated
AASKA is a function-based organization
The tasks are divided into separate jobs and
then these jobs are grouped together under
different departments
Each major area is kept under the manager
who is skilled in that apprehensive field and
is responsible for all activities, which that
department performs

40. Muhammad Arslan (Managing director)
Phone # +923037343810
New Campus University of the Punjab,
hostel # 17, room #132
 Ahmad Shehzad (Marketing Manager)
Phone # +923426788877
New Campus University of the Punjab,
hostel # 19, room #35


41.  list





of employees
Accountant
Two drivers
Three helpers
Two plant operator with 2 year experience
Chemist

42. We have chosen partnership because we
individually don‟t have large amount to start
own business individually
 We want to share experiences for a best one
business
 Decision making authority
Managing director is the decision making
authority, then this decision flow from top to
low level
 Compensation and benefits packages
Company will provide free product to the
managers for their household use


43. Following financial statements are included in
the financial statements:
 Income statement
 Balance sheet
 Breakeven point
 Ratio analysis

44. Current assets:
Amount (Rs.)
Cash in hand
50,000
Cash at bank
500,000
Account receivable
405,000
Stores & spares
200,000
Advertising expenses
195,000
Fixed assets:
Plant & machinery
1,600,000
Furniture & fixture
200,000
Equipment
200,000
Motor vehicle
600,000
Bottles (700@Rs.500)
350,000
4,300,000
Total assets
Liabilities & Owner‟s Equity:
Current liabilities:
Account payable
400,000
Note payable
300,000
Rent payable
600,000
1,300,000
Fixed liabilities:
Bank loan@15% p.a
500,000
Owner‟s Equity:
Arslan‟s capital
500,000
Shahid‟s capital
500,000
Ahmad‟s capital
500,000
Kamal‟s capital
500,000
Atif‟s capital
500,000
Total capital
2,500,000
Total liabilities & owner‟s equity
4,300,000

45. Revenue From Sales:
Amount
Sales
6,120,000
Less: Cost of goods sold
Amount
3,672,000
Gross Profit
2,448,000
OPERATING EXPENSES:
Advertising expenses
5,000
Bad debts expense
5000
Rent expenses
600,000
Office expenses
30,000
Salary expenses
300,000
Factory expenses
100,000
Utility expenses
420,000
Total operating expenses
1,460,000
Other expenses:
Interest expenses
75,000
Net income before taxes
913,000
Income tax on exceeding amount 400,000@10%
51,300
Net Income
861,700

46. Following are the notes related with Balance Sheet
and Income Statement :






Balance Sheet
Furniture and Fixture include 20 chairs, 5 tables and 2
cupboards and depreciation will be charged @10% with
straight line balance method
The cost of the plant and machinery is Rs. 1,600,000 and
depreciation will be charged @5% with straight line balance
method. It was decided that useful life of the plant and
machinery is 30 years and residual value will be Rs. 300,000
Depreciation on equipment and motor vehicle will be
charged @10% per annum
It was decided by the management that the depreciation will
not be charged 1st year
Bank loan obtained @15% for 5 years and interest will be
paid at the end of every six month

47. 



Income Statement
It was assumed that total sales include 40% to
home based customers and 60% sold to
retailers
Cost of goods sold is the 60% of the total
sales
Advertising expenses are amortized in 5
years @ 5%

48.  Selling


price
= Profit+ (Variable cost per unit * Quantity
produced) + Total fixed cost/ Quantity produced
To break-even point, the management
assumes that the profit is Rs.0.
= Rs.4.5 per unit

49. 


Now it was supposed by the management
that company will earn Rs. 50,000 profit
Then the selling price is calculated as
follows:
= 50000 + (2.23 * 90,000) + 200,000 /
90,000
= 450700 / 90,000
= Rs. 5 per unit

50. In ratios analysis following ratios are calculated
Liquidity ratio












Current ratio
Quick ratio
Current ratio
=current asset / current liability
=1,350,000 / 1,300,000
=1.038
Quick ratio
=current assets – inventories / current liability
=1,350,000 – 200,000 / 1,300,000
=0.885

51.  Leverage
ratio

Debt ratio
Debt to equity ratio

Debt ratio


=total debts / total assets
=1,800,000 / 4,300,000
=0.418
Debt to equity ratio
=total debts / total equity
=1,800,000 / 2,500,000
=0.72

52. 



Amount Requested
Total capital of the partnership is
Rs.3,000,000
Every partner is contributing Rs. 500,000
Remaining amount is covered through bank
loan@15% per annum

53. Person
Month
Responsible
Task #/Name
Assigned
January
of
Action
for
February
Task Completion Date
February
March
Apply for loan
Shahid Abbas
X
Finalize suppliers
Kamal Subhani
X
Seek for building
Atif Rafique
Marketing
Ahmad Shehzad
X
X
Hiring
Muhammad
X
X
Employees
Arslan
X
X
X
X
materials created
and distributed