Table of Contents

Index

Introduction

Personal Information

Mission and Vision  

SWOT Analysis 

Marketing Analysis 

Financial Analysis

Conclusions

INTRODUCTION Ricardo Alcívar, Elizabeth Morales, Fanny Pacheco and

Juan Echeverría decided one day that this country needed a new marketing company. A company which would cover all expectations about advertisement and market research.

We decided to associate ourselves to create this company that is going to provide not only advertisement service as other companies but market

research including present and possible competition.  This idea arises due to the continuous complaints of big businesses which hire ordinary companies, with ordinary services. The four of us work in the advertisement environment so we were constantly involved in the complaints and surrounded by unsatisfied customers.

PERSONAL INFORMATIONRicardo Alcívar Arteaga  General Manager of “Usine Marketing Corporation” Business Administrator, who handles the company’s

important issues, makes final decisions and leads the organization to its main objective.  

Elizabeth Morales Moreira  Marketing Manager of “Usine Marketing Corporation” Marketing Technician, who is in charge of the company

promotion. Also deals with the different campaigns being lunch for the customers.

Personal informationJuan Echeverrí

Financial Manager of “Usine Marketing Corporation”Commercial Engineer, who is in charge of deciding the different investments done, loans required and handle the company books.

 Fanny Pacheco Espinoza

Human Resources Manager of “Usine Marketing Corporation”Economist, in charge of dealing with recruitment, and potential customers. Also handles any disagreement or discomfort in the customers.

MISSION

To be the best provider of

advertisement service. Also include a complete market research, involving current and potential competition.

VISION

The unsatisfied market full of complain inspires us to create a company which main priority is to provide a complete advertisement service including competition research.

SWOT ANALYSISStrengthsOur main strength is the target market loyalty. Although we only have a few years in the market, our costumers are satisfied with our work, and they keep requesting our services and accepting changes, variations and modifications.

Weaknesses Usine’s main weakness is it’s lack of experience in the advertisement market. Everyday we have to deal with powerful competitors who lead the Ecuadorian market. Such as Norlop Thompson Asociados and Maruri Communications Group. Both of these companies have been in the market since the beginning.

SWOT ANALYSIS

Opportunities

Because of its new company status, Usine can aim at new targets such as small organizations with fresh new tendencies.

 Threats

The main threat is that big enterprises already have contracts with well known advertisement agencies. This represents aggressive competition and difficulty in gaining market.

MARKETING ANALYSIS

How important is advertisement for your business?

50

35

15

0

10

20

30

40

50

customers

Importance of Advertisement

very important

important

not important

How you been receiving the service you expect?

Service Expectation

80%

20%

 Are you happier with USINE MARKETING CO. service or the one you had before?

Customers Satisfaction

55

1530

0

10

20

30

40

50

60

happier prefer last co. never had onebefore

cu

sto

me

rs

How would you grade our service?

excellent

good

bad0

32

68

Service Qualification

PRODUCT MIXSERVICE.-

Advertisement campaigns are different ways of making the public (potential customers) know an organization or product. In it is explained the benefits and advantages of the product or organization that is been marketed.

 PRICE.-

Prices are set according the type of campaign the client requires. Extensive campaigns, with more promotion channel avenues demand more money, on the other side smaller campaigns with less target requires less money.

PRODUCT MIXPLACE.-

The campaigns are done in USINE MARKETING CO, with the supervision of the marketing department and a person involved with the customers. Also previous meetings have been done for gathering the information that must be included in the campaigns, and discuss about the campaigns.

PROMOTION.- For the service we offer all type of promotion channels. Such as TV spaces, radio channels, street banners, brochures distribution, launching shows and all media diffusion in order to get to know the company or product.

Financial Analysis

Here is explained the financial situacion of the company. Usin balance sheet we know how much cash we have. It also permits us to compute the fixed assets the company has.

The income statment considers the money coming from the service and the diferent expenses resulting. Here we obtain the diference between incomes and outcomes and if the company has profits or losses.

ASSETS EQUITIES Current Assets 201,050.00 Current Liabilities 182,290.00 cash 41,370.00 accounts payable 41,350.00 accounts receivable 68,490.00 payroll 19,540.00 notes receivable 3,000.00 Income taxes 28,400.00 inventories 86,420.00 long term notes 75,000.00 prepaid insurances 1,770.00 bank loans 18,000.00 Plant Assets 307,300.00 STOCKHOLDERS EQUITY 367,460.00 land 14,600.00 premium on stock 82,500.00 building and equipment 292,700.00 retained earnings 192,850.00 Intangible Assets 32,900.00 capital stock 92,110.00 organization expense 4,900.00 goodwill 28,000.00 Other Assets 8,500.00advances to company officers 8,500.00

TOTAL ASSETS 549,750.00 TOTAL EQUITIES 549,750.00

Balance Sheet31 of December 2002

INCOME STATEMENTDECEMBER 2002

net sales 1,283,480.00cost of service sold 756,560.00Gross Margin 526,920.00

Selling Expenses 129,260.00 sales salaries 79,940.00 advertising 31,870.00 entertaining 6,460.00 delivery 4,850.00 depreciation 6,140.00

General and Administrative Expenses 122,140.00 officers salaries 53,180.00 office expenses 38,870.00 taxes 7,610.00 insurance 1,740.00 utilities 6,480.00 uncollectible account 6,760.00 org expenses amortization 2,450.00 goodwill amortization 4,000.00 depreciation 1,050.00

Total Operating Expenses 251,400.00

Operating Income 275,520.00 interest and dividends 5,320.00 rent revenue 8,600.00 (-) interest expense 9,340.00

4,580.00Income before taxes 280,100.00 (-) estimated income taxes 139,600.00Income before Extraordinary loss 140,500.00

NET INCOME 140,500.00