About a company that wants to venture into public relations. It is a case study that explains a company trying to venture into public relations in Kenya. the financial projection, the markets, the different strategies and techniques that the management needs to employ in order to see a success. question Case Study 1 Next Level Marketing is a digital agency operating out of Nairobi and offers digital advertising services to Kenyan corporates and multinationals. It has been in operation for the last 10 years and is looking to grow its revenue by expanding its service offering to include Public Relations. As the finance and operations assistant, you have been tasked to come up with a business plan and strategy that justifies the expansion to be presented to the C-Suite of the company. Your plan and strategy should address the following: 1. The market 2. The competition 3. The promotion strategy 4. The Organization Plan 5. A financial model that includes a 3-year projection

1. Case Study 1: PR venture
By: Furechi Samuel
furechisamuel@gmail.com

2. Case study 1
• Next Level Marketing is a digital agency operating out of Nairobi and offers digital advertising services to
Kenyan corporates and multinationals. It has been in operation for the last 10 years and is looking to grow
its revenue by expanding its service offering to include Public Relations. As the finance and operations
assistant, you have been tasked to come up with a business plan and strategy that justifies the expansion
to be presented to the C-Suite of thecompany. Your plan and strategy should address the following:
•
1. The market
2. The competition
3. The promotion strategy
4. The Organization Plan
5. A financial model that includes a 3-year projection
• Exercise: Create a presentation to the C-Suite team that captures the above

3. 1. The Market
 Public relations is an essential component of any business
 As a result, there is a high demand for public relations services in Kenya, particularly in the corporate and
multinational sectors.
 Next Level Marketing can capitalize on this market opportunity by expanding its service offerings to include
public relations.
 Some firms have lost current and potential customers because of lack of skills or expertise in public
relations.

4. 2. The competition
 Next Level Marketing will be entering a highly competitive market as there are already established PR agencies in
Kenya.
 However, the company's competitive advantage is its existing relationship with its clients and its established
reputation as a digital advertising agency.
 This provides the company with a unique opportunity to cross-sell its new PR services to its existing client base,
creating a competitive edge over new entrants.
 The presence on digital space in Kenya is also advantageous since the latest trends of information on issues is
happening on social media.

5. 3. Promotion strategy
 To effectively promote the new service offering, Next Level Marketing should develop an
integrated communication strategy that leverages its existing digital advertising channels.
 This will include targeted email marketing campaigns, social media marketing, and website
optimization.
 The company should list its PR services in every promotion like crisis communication, influencer
engagement, media relations, brand management, and digital communication

6. 4. Organizational plan
 Define the Scope of Public Relations Services
 Assess the Current Organizational Structure
 Identify Required Skillsets
 Hire or Train Staff
 Develop PR Processes and Procedures

7. 3-year financial model projection
• Before creating a financial model, here are the assumptions:
1. Next Level Marketing firm currently generates KES 50 million in
revenue.
2. The expansion into public relations will require an initial
investment of KES 10 million.
3. The firm plans to hire 5 new employees for the public relations
department.
4. The firm expects revenue to increase by 10% in the first year,
20% in the second year, and 30% in the third year.

8. Income Statement
Year 1 ksh (millions) Year 2 ksh (millions) Year 3 ksh (millions)
Revenue 55 66 85.8
Expenses:
Cost of sales 25 30 40
Operating expenses 20 24 30
PR expenses 5 8 12
Total expenses 50 62 82
Net Income 5 4 3.8

9. Balance Sheet
Year 1 ksh (millions) Year 2 (ksh millions) Year 3 (Ksh millions)
Assets:
• Current assets 25 30 35
• Fixed assets 35 45 60
Liabilities:
• Current liabilities 20 25 30
• Long-term liabilities 10 12 15
Equity 30 33 50

10. Cash flow statement
Year 1 ksh (millions) Year 2 ksh (millions) Year 3 Ksh (millions)
Cash from operation 5 4 3.8
Investing cash flow (10) (15) (20)
Financing cash flow 5 5 10
Net cash flow 0 (6) (6.2)

11. Key Performance Indicators
Year 1 Year 2 Year 3
Gross margin 50% 55% 60%
Operating margin 10% 6% 5%
Return on investment 50% 40% 38%