INSTITUTE OF PROFESSIONAL EDUCATION

AND RESEARCH

BUSINESS ESTABLISMENT ASSIGNMENT

ON

SPLASH ADVERTISING AGENCY PRIVATE LIMITED

SUBMITTED TO: SUBMITTED BY:

Prof Vaibhav Lowlekar Gagan Singh

Jitendra Agarwal
Mamta bhojwani

Piyush chunarkar
Shoaib quershi
 INTRODUCTION OF THE INDUSTRY

Advertising, generally speaking, is the promotion of goods, services, companies

and ideas, usually performed by an identified sponsor. Marketers see advertising as
part of an overall promotional strategy. Other components of the promotional mix
include publicity, public relations, personal selling, and sales promotion.

Advertising involves the process where in a massage is designed so as to

promote a product, a thought, an idea or even a service. The concept of advertising has
assumed a dynamic form with the use of the various mediums of communication. From
the newspaper, magazines, posters, neon and fluorescent signboards, billboards to the
commercial on TV, laser shows to inflated high-rise figures and objects, advertising has
come a long way. The work is formidable as it spearheads a process intended to attract,
modify, change and influences public opinion.

From the local business to multinational firm and all need to advertise. While
politicians, social organizations, government special groups need to advertise their
motto, national airlines, auto mobile manufactures, food and consumer goods
manufacturers have to reach the consumer. Specialist products and services are often
advertised through trade magazines and exhibitions. Lately mail-shots, handbill
circulation, special offers have become very popular. There are still other ways of
advertising. There are window displays, display on telephone directories, transit sign on
buses, lamp posters, banners, etc. Advertising through the electronic media has been
perhaps the most popular medium.

Advertising, as an effective medium, uses a variety of techniques to create

effective advertisements. A basic appeal is at the heart of advertising. Slogans and
product characters are created to catch the attention of the viewers. Most winning
advertisements would encompass factual information with emotional appeal. The
advertising industry has three major sectors.

• Business or organization which wishes to advertise,

• Media which provides the medium for advertising and
 • Ad-agency which creates the ad to suit the need of the firm.

Advertising agencies are primarily responsible for two functions. The first is the
production of advertising materials in the form of written copy, art, graphics, audio, and
video. The second is the strategic placement of the finished creative product in various
media outlets, such as periodicals, newspapers, radio, and television.

NATURE OF THE INDUSTRY

Firms in the advertising and public relations services industry prepare
advertisements for other companies and organizations and design campaigns to
promote the interests and image of their clients. This industry also includes media
representatives—firms that sell advertising space for publications, radio, television, and
the Internet; display advertisers—businesses engaged in creating and designing public
display ads for use in shopping malls, on billboards, or in similar media; and direct mail
advertisers. A firm that purchases advertising time (or space) from media outlets,
thereafter reselling it to advertising agencies or individual companies directly, is
considered a media buying agency. Divisions of companies that produce and place their
own advertising are not considered part of this industry.

Most advertising firms specialize in a particular market niche. Some companies

produce and solicit outdoor advertising, such as billboards and electric displays. Others
place ads in buses, subways, taxis, airports, and bus terminals. A small number of firms
produce aerial advertising, while others distribute circulars, handbills, and free samples.

Groups within agencies have been created to serve their clients’ electronic
advertising needs on the Internet. Online advertisements link users to a company’s or
product’s Web site, where information such as new product announcements, contests,
and product catalogs appears, and from which purchases may be made.

Some firms are not involved in the creation of ads at all; instead, they sell
advertising time or space on radio and television stations or in publications. Because
these firms do not produce advertising, their staffs are mostly sales workers.
 In an effort to attract and maintain clients, advertising and public relations
services agencies are diversifying their services, offering advertising as well as public
relations, sales, marketing, and interactive media services. Advertising and public
relations service firms have found that highly creative work is particularly suitable for
their services, resulting in a better product and increasing their clients' profitability.

INTRODUCTION TO OUR BUSINESS

SPLASH ADVERISING PVT. LIMITED

Your dreams…our ideas

Splash advertising private limited is a advertising firm started and set

up by 5 partners namely as:

Gagan Singh

Jitendra Agarwal
 Mamta Bhojwani

Piyush Chunarkar

Shoaib Quershi

It is situated in capital of Madhya Pradesh i.e. Bhopal. It is situated in

Sahara complex 16-2nd floor Zone-2 Maharana Pratap Nagar.

This is all about our advertising company which focuses on different

forms of advertisements. We have a strong tag line of
YOUR DREAMS…OUR IDEAS

OUR VISION STATEMENT

“To claim as the best marketing firm in Bhopal, dedicated to serve our
clients with creative solutions and innovative ideas through intensity,
integrity and intelligence”

MISSION STATEMENT

Our mission is:

….To be Bhopal’s leading marketing firm which provides creative solutions

coupled with innovative ideas to the clients.
….To be associated with our clients as their ‘marketing partner’ by helping
them achieve their marketing objectives.
….To obtain and sustain distinct competence through efficacy of our
customer service and enthusiasm towards our vision.
….To be recognized as the firm which inspires creativity, sparks innovation
and encourages talent.
….To promote rewarding, encouraging, motivating environment in which
we can accomplish our mission.

POSITIONING

“To give your vision a route to success with creative solutions and
innovative ideas in a cost effective manner”

OBJECTIVES

• As no company can survive without financial resources and without

enjoying any profit, so we too seek to enjoy a handsome profit out of
our services.

• To be known to our clients as a firm providing cost effective yet

innovative marketing solutions.

• To appear as a market challenger with creative solutions and

innovative ideas.

• To maintain friendly relations with our clients by satisfying them with

effective marketing solutions.

• To reach our clients through effective promotions.

 SWOT Analysis

Strengths

• Cost effectiveness
• Creative staff
• Public relations
• Skilled and efficient labors
• Location and availability
• Innovators

Weaknesses

• Capital constraints
• New entrant
• Limited resources
• Less client holdings

Opportunities

• Marketing boom
• Flourishing industry
• New Brands emerging in the market
• Businesses realizing marketing needs for their products/services
• Customers becoming more educated and conscious about what they consume.

Threats

• Intense competition
• Multiple market leaders like Atul advertisers etc
• Government rules & regulations
• Political instability
• Natural calamities
• Religious rigidity

SECTORS SERVED BY SPLASH

 Print Media: In this print media form our firm would basically work
with the the basis of tie up with daily local newspapers leader of our
city that are Daink bhaskar, raj express, Hindustan times, patrika,
peoples smachar and all leading daily print forms. For this form we
also have got a license from Indian newspaper society for worth
rupees three lakhs which will serve as our guarantee part and help us
also in publishing any advertisement through the country without any
form of guarantee. Release order are issued by us for the publication
of any advertisement. We will work on the basis of 15% commission
from the vendor for any particular ad. A credit limit of 60 days will also
be provided to us by the vendors.
 Television Media: for this form of advertisement we have full tie up
with the local channels like Btv network and digicom network. All the
advertisement provided by us will be on the basis of commission
basis. For designing of ads we have tie up with o&m.
 Radio: The radio jingle will be a total in source work and specifically
designed by our creative team according to the needs of the client.
The price quoted by us for this radio jingle are as 55rs for a 30
second jingle.
 Events & Exhibitions: events and exhibitions will be also provided
by us these all areas will be out sourced by us and commission will
be enjoyed. As our city is not more into all such things so we are not
much focused towards it. Large investment is also required which has
tend to shift our focus from it.

 Printing: the printing facilities will be provided by us to our clients on

a whole at a much lower price. The whole printing process will be
outsourced by us to our vendors with whom we may have tie ups and
enjoy the commission. Printing may include flex printing, ecosolvent
printing (costing around 35-40 rs/sq.), canopy, staidly, sunpack
(square pole display boards), glow sign board (at around 35-45
rs/sq.). These all tyes of above mentioned printing facilities will be
 provided by us. For this printing purpose our firm has a tie up with
yash digital printing press in mp nagar.
 Hoarding: these basically includes the display sign boards situates at
various corner of our city. We will basically go for the lease of these
hoarding and then provide them for the rent purpose. The rent would
be decided on the basis of localilty purpose. The hoardings basically
are also of two types government and private. Those on land are
government and those on the roof tops are private. We have lease of
8 hoardings that too private in the posh localites. The hoarding
displayed are of two types firstly plain (6-8 rs. Per feet sq.) and
secondly mutho-shining/corporate (10-12 rs.per feet sq.). the rate of
the hoarding wholly depends upon the location rate. Depending upon
the location rates may vary from 5000 rs-50000rs of 20*10 size.
Service taxes@10% are also extra liable.
 Designing: the whole designing process will be in the hands of our
creation team. This will be totally in sourced task that will help us in
providing an extra edge with our creation and innovation process. For
these designing process we have a designing team headed by
creative head namely Mr.Jitendra Agarwal.

 ATL/Creative: Above the line As ATL involves creativity and

designing so we provide following kind of solutions for above the line
marketing. For this format we provide with
Flyer
A single page leaflet with graphical designs to reach your brand
audience
Signboard
This includes all the creative form of advertising
.

BTL/Outdoor
Outdoor advertising has always been good medium to convey brand
messages to the mass audience. Through outdoor advertising you can
reach your brand audience more than any of the medium of advertising, in
outdoor advertising we offer;

• Billboards
No matter if TV channels are changed and radio turned off our outdoor
billboards are here to deliver your brand message and captivating the
attention of your brand audience while carrying your campaign. We ensure
that your message reaches over three million people per month.
The billboards are further divided into two main categories

○ Permanent billboards
○ Rotary billboards

In permanent billboard, we offer permanent location of billboard with

permanent structure, and in rotary billboards we penetrate different
market with same displays.

This a very important medium covered by splash advertising also as it

helps in good form of advertising.
 FUNCTIONS OF SPLASH

ORGANISATIONAL PEOPLE & POSITIONS

Gagan Singh - MD & MARKETING INCHARGE

Team of 6 people under him

Jitendra Agarwal – MD & CREATIVE HEAD DESIGNER

Team of 4 junior designers and 1 copy writer under him

Mamta Bojwani – MD & PUBLIC RELATIONS INCHARGE

Team of 3 headed by her

Piyush Cunarkar – MD & FINANCE HEAD

Team of two headed by him

Shoaib Quershi – MD & MANAGEMENT INCHARGE

Team of two headed by him

 ORGANISATIONAL HIERACHY/BUSINESS MODEL

M a rk et R esearch

C reative D ep artm ent

ORGANISATIONAL SET UP AND EXPENDITURE
All the 5 partners of Splash advertising agency invested five lakh rupees in
an equal proposition towardz the business. That resulted to an amount of
25 lakhs with the finance team. The major sources of expenditure were as
follows:
OFFICE- The finance department leased out a office in with an area of
1500 square feet at an lease price of 8 lakh rupees for the period of three
years.

INTERIOR- To make the firm attractive a major share of the pie was
contributed towards the interior department. The strong dominance of
interior facilities were noticed with whole centrally air conditioned cabins
and full office. This all resulted to a price of seven lakh rupees. Complete
form of interior work was done in this amount including every services.
TECHNOLOGY- All the work done by the workers are through
technological devices such as computers, printers, scanners. So the
management decided to spend on all this heavily and go out for the best
technology. The major software subscribed were coral and Photoshop. 10
systems along with other technological devices were arranged by the
management for the set up. All this resulted for a price of five lakh rupees.
LICENCE- A license cum registration was obtained from Indian newspaper
society worth rupees three lakh rupees.
PROMOTIONAL ACTIVITIES- A little bit of promotional activities was done
just to create awareness that to at a reduced price. This costed the
management around fifty thousand rupees.

MISCLEENAOUS EXPENDITURES- these are those expenditure which

occur commonly. They amounted to around fifty thousand rupess.

AUTO/TEMPO - One lakh rupess

COST ALLOCATION:
FIXED COST: Lease, interior cost, license cost. Technology

VARIABLE COST: In our business the variable cost only results to the
electricity expenditures, telephone allowances, phone bills. All the bills are
included into variable cost part as it is more of intellectual kind of work
where human brain is more required for innovation. Salary of staff is also a
part of it. Promotion also.

EXPECTED SALES FOR THE FIRST YEAR

Projects bagged from:

Vodafone, Tata Docomo, Kabuliwala, Fastrack, B.J.P Yuva Morcha, Triplex

Drycleaners, D.K Construction, HDFC Mutual Funds, Vishal planet fitness,
Danish Housing Society, Amer Greens which has resulted to our estimate
sales of around 27.70 lakhs which has provided or generated us with an
healthy revenue of around 11.48 lakhs.

BREAK-EVEN POINT
To determine the break-even point, we should use the following formula:
Sales (S) equals Fixed Expenses (FE) plus Variable Expenses (VE). The
fixed cost of business is around 24 lakhs and the variable cost is around
one lakh rupess and in the first year splash is to do an business of 11.48
lakhs, which is quite healty return as owener view. So the situation where
there is no profit no loss will arise after the time period of two years and 4
months when we will achieve our break even point.