Marketing Budget: Pro Forma Financial Statement

2.5. Marketing Budget

The Marketing Budget fully depends on the pro forma financial statement. This budget has been allocated based on the projected revenue. The most effective strategies will be used in order to reach the marketing objective. At least 25-30 percent of the revenue will be spent on marketing since we are entering into a new market. Gradually more money will be invested on marketing as we expand our business in the UK.

2.6. Pro forma annual profit and loss statement

In the previous chapter, the manufacturing costs for the bottled water have been determined at £1, 10 per bottle. And after analyzing the marketing research, the prices for the bottled water have been set at;

500 mil still glass: £3

375 ml still PET: £2.5

The number of units that will be exported is 5000 units per month. Therefore, annually 5000X12=60,000 units will be exported to the UK. Which makes the annual manufacturing cost for 60,000 units 60,000X£1, 10= £66,000

In the earlier section (prince

This makes the estimated cost for accounting £5,000 per year. As stated before, a large sum of revenue will be invested in the marketing and advertising that is nearly 25-30% as described in the marketing budget section. For the wear housing and office space, the rent is estimated on somewhere around £26,000-£40,000 including utilities. As transportation for the business purpose is also essential, in the first, second and third year a large amount of money will be invested for the purchase of one or two vehicles and may not be brand new. The maintenance cost for these vehicles have also been shown in the profit and loss statement. Since it is a small-scale business not more than two or three employees will be needed initially. However, in future more employees can be recruited as the business will continue to grow. The estimated wages, therefore, are between £20,000 and £30,