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Sr. No 1. 2. 3. 4. 5. 6. 7.
Particulars Executive Summary Products and Services Web Plan Summary Market Analysis Summary Strategy and Implementation Summary Financial Plan Management Summary
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Executive Summary The Indian fast food market has been witnessing rapid growth on the back of positive developments and presence of massive investments. Currently, market growth is largely fuelled by the rising young population, working women, hectic schedules, and increasing disposable income of the middle-class households. Some of the unique properties of fast food like quick served, cost advantage, etc are making it highly popular among the masses. Thus, India offers enormous opportunities for both domestic as well as international players. The Indian Fast Food Industry is anticipated to grow to CAGR of around 34% during 20112014.Anticipating the future growth, many international players are entering into the market by making deals with the domestic players. And those who already well-established in the Indian Market are finding the space in the other parts of the world. There is a large scope of growth in the untapped tier-2 and tier-3 cities, so we will apply our various marketing strategies to tap this market also. Currently we are targeting the Mumbai as our main source of Income and we will open our first chain outlet of Haji Ali Juice Centre at Nepean Sea Road which is an upmarket and has a great connectivity to the south Mumbai. Further to this we will position ourselves by providing the affordable and customized products (Juice, Ice Cream and Sandwiches) to suit the need of people. We will mainly focus on the youngster who not only bring their friends but also bring their families to the outlet which will significantly add revenue to the company. Objective: One destiny stop for Juice, Ice-Cream and Sandwiches To establish a presence as a successful local food outlet and to gain a small market share in Indias fast food Industry To expand in terms of product portfolio and as well as the number of outlets in a year or two Mission Our main focus will be serving high quality products with great value. Our main goal will be one of the most successful food and desert outlet in India, by starting our first chain at Nepean Sea Road which is an upmarket area and has a greater connectivity with south Mumbai.
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Key to Success To succeed in the business we will follow below steps: Our menu card will be unique, innovative which will differentiate us from the rest of the competition We will focus on our operational costs and we will follow integrate approach overall starting from getting raw material to making it as a finish good for customers We will sell the product with highest quality and will focus on to keep the customer happy with our product category We will focus on to get traffic to our outlet from the nearest places such as shopping malls, colleges etc to reach the target market Maintaining the excellent services over competitors to create brand image and to provide 100% satisfaction to our customer SWOT Analysis Strengths: Premier fast food operator in Mumbai and has been serving to the market for more than seven decades High Profile location and having a well honored name of saint Haji Ali Exceptional foods prepared by highly trained chefs Food Service is genuine and caring that is designed to maximize the guest appeal and to create life time guests Kitchens are completely visual to our customers with dramatic open spaces Wide variety of Products and great capability to increase the product portfolio further Differentiate with Specialties Weakness: Only one branch over the last seven decades No brand image in the minds of the consumer Opportunities Every year about 25-30% growing fast food market in India Growing dining out market (People going out to eat has been tremendously increased)
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Products and Services Products Our product portfolio will mainly contain Juices, Ice-Creams, Sandwiches. We will tie up with the Coke as it is highly accepted in the upmarket by the consumers. This will add one more item in our portfolio and this is mainly for those who dont like Juices and Milk Shake. Services Our hiring process for the staff will be unique and we will trained the employees in order to deliver the best service ever experience by the customer. We will provide free home delivery to the nearby are say about 15-20 KM and the order will be deliver in 45 mins. Product Description As above mentioned we will mainly focus on Juices, Ice-Creams and Sandwiches. Main Products sold are Fruit Juice, Milk Shake, Falooda , Special Juice with fresh cream, Pizza , IceCream and Sandwiches. Special dishes will be available with the Fresh cream for which price will be vary from Rs 40 Rs 90. Our Speciality Products are listed below: Kesar Dryfruit with Fresh Cream Badam Pista with Fresh Cream Dryfruit with Fresh Cream
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Competitive Comparision Haji Ali has several advantages over its leading competitors: Variety of Juice with special qualities We expect a high degree of enthusiasm and offer a fun store with friendly staff, that reflects the company's youthful and energetic culture. Our innovative packaging will be more entertaining than our competitors; a single cone with a cup reserved for dipping sauce. Our competitors are o Garcias Famous Pizza o Dominos Pizza o Shivsagar o Natural Ice-Cream o Swati Snacks o Right Place o Bharat Dairy and Juice Center
Sourcing of Raw Materials and Other Items Fresh Milk will be delivered daily from Kaduji Dairy (Jogeshwari [w]) at our outlet for preparation of Fresh Creams, Milk Shakes etc. We have also another source for getting milk that is Mahanand Dairy (Bandra [w]) for other stuffs. Fresh Bread for Sandwiches and Pizzas will be delivered on daily basis from Puratos Food Ingredients India Pvt. Ltd. (Mumbai Central). Rest all the stuff required such as Dryfruits and Vegetables will be outsourced from reputed Wholesaler. Technology Requirements We will be requiring high end machines with technological equipped that will easily make Juices, Ice-Cream, Sandwiches and Pizzas. We will be requiring a cold storage for Milk with advanced features.
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Web Plan Summary We will have a website which will be containing all our Product Portfolio and New Product offerings. Website will be made user friendly and more interactive with the help of Quiz Games. We will start a Promotional Coupons (Daily Basis) on the website wherein first come first server user can get an advantage for the same. Further there will be a Suggestions and Feedback form on the website which will helps us to improve our product offerings and service. Website will be our key for the engagement between the company and our target audience. Website Marketing Strategies Haji Ali is one of the famous and Prestigious place to visit so we will tie up with the tourism websites for more visibility Justdail will be the most powerful tool for us, we will have a separate strategy with them Burrp and Zomato we will be using for creating a Brand Image We will integrate our FB page with Burrp and Zomato, if any user will post about our outlet it will be directly posted on the reviews section. We will target our audience on FB Development Requirements To make the website user friendly our front end design will be done by Mr. Jitesh Navlani with the help of most powerful tool WordPress which has in all more than 10000 Plugin to make website interactive and more customer oriented.
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Indian consumers spending trend for food eating outside have increased over the period of time in this economic slowdown situation. There is an increase in the fast food franchises such as Dominos and Mc Donalds. The days are gone where people make the food at home and now people are more tending towards outside for food due to which number of food outlets and restaurants are increasing day by day. Indian Fast Food industry is anticipated to grow at a CAGR of around 34% during 2011-2014. We have defined our target market on the basis of below categories: Age: Youth and College Going Students Families: We all also focus on the families with children Income: We will target medium and high income group Survey Results: We have done a small survey in the age group between 20-40 years, of which we found that 52% of the people like to visit roadside food outlet more than once a week which is matching with the Indian Spending Trend of eating food outside and around 90% of the people will recommend to their friends which itself a good sign for increasing trend of food consumption outside. So, there is a large scope of opening an outlet in the Indian Market. The survey also illustrates below findings which clearly tell us the reason of increasing popularity of fast food: Almost 100% of the respondent said that we visit the roadside food outlet very frequently 60% of the people spend more than average while going out to eat More than 70% of the respondent like to visit in the evening time at roadside food outlet More than 53% of the people agreed about the price have been charged at the roadside food outlet
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Below is the output of our survey: Have you ever visited road side food outlet? Frequency 75 Percent 100.0 Valid Percent 100.0 Cumulative Percent 100.0
Valid
Yes
How much you spend at roadside food outlet? Frequency 17 45 11 2 75 Percent 22.7 60.0 14.7 2.7 100.0 Valid Percent 22.7 60.0 14.7 2.7 100.0 Cumulative Percent 22.7 82.7 97.3 100.0
What time you normally visit roadside food outlet Valid Frequency Percent Percent Valid Between 12-3 PM Between 3-6 PM Between 6-9 PM 10 PM or Later 3 11 53 8 4.0 14.7 70.7 10.7 4.0 14.7 70.7 10.7
Recommend to your Friend Frequency 67 8 75 Percent 89.3 10.7 100.0 Valid Percent 89.3 10.7 100.0 Cumulative Percent 89.3 100.0
Valid
Yes No Total
Please indicate whether you agree or disagree with the price charged at roadside food outlet Frequency Percent 9 12.0 40 25 1 75 53.3 33.3 1.3 100.0 Valid Percent 12.0 53.3 33.3 1.3 100.0 Cumulative Percent 12.0 65.3 98.7 100.0
Market Segmentation
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Percentage
10%
Target Market Segment Strategy As above mention our primary target market will be youth (20-30 age) as they are the first source to create a Brand image. They are our first stage of target market and we will be dependent on them as a main source of revenue. Our secondary market will be the working professional between the age of (30-45) as they are more flexible in spending so they will be our target for our premium products.
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Market Needs According to the survey done by us we have identify the following needs among the respondents. And we will go accordingly to serve our target market Want variety and quality in food with exceptional service With eating they need fun and entertainment Enjoy eating outside Maximum people love to go outside in between 6-9 PM Need of clean, friendly, and attractive environment Change in lifestyle and people come from various cultural background Adopts according to the city
Market Trends and Market Growth The Indian Fast Food Industry is anticipated to grow to CAGR of around 34% during 20112014.Anticipating the future growth, many international players are entering into the market by making deals with the domestic players. And those who already well-established in the Indian Market are finding the space in the other parts of the world. There is a large scope of growth in the untapped tier-2 and tier-3 cities, so we will apply our various marketing strategies to tap this market also. There is a huge growth opportunities in the coming years and with the opportunities there will be a great competition from the well established players like Mc D and Dominos. We will in all have a separate strategy to handle such well established brand in India. The key to success will be serving the best quality of food with exceptional service and giving a great experience with Fun and excitement for repurchase. Industry Analysis Despite the slowing economy and huge goof up by the political parties Indias Food Service Industry is anticipated to grow to CAGR of around 34% during 2011-2014. Much of this growth was contributed by the Fast Food Restaurants, Caf Bars etc and the population was mostly the youth and more importantly the trend of eating out has been seen as a lifestyle. Entry of the most multinational fast food chain restaurants overall India led to the growth of the competition in the marketplace. Though there was a crisis in 2007 but fast food industry has been
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Distribution Patterns As we are in the Fast Food Industry and we are just starting with our main branch in Napean Sea Road so there will be no agents, manufacturers and dealers in between the distribution. It will be pure concept of Personal Selling over phone. The order will be delivered in 45 minutes in which we have specified a range of 15 Km. Mode of distribution for this will be a two wheeler and a person who delivered the goods. There will be another mode of distribution is through the website wherein user can place an order and the order will be delivered with the same process of phone calling. All the orders which we will be taking for delivery are cash on delivery. Competition and Buying Patterns As we have thought of to open an outlet at Napean Sea Road near to the Palm Beach School where in our foot falls will be high as there are less competitor available there. Mc Donalds and Dominos are far away from that area. Though there are local food chains there but we will be positioned ourselves in a unique way so that we will get the appropriate response from the crowd. There are shopping malls beside the Napean sea roads so we will be targeting those shoppers as well by the medium of advertising. The buying pattern at Napean Sea Road is quite average as it is one of the upmarket in the Mumbai.
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So above all are the main competitors near to the Napean Sea road where our outlet will be located. All these are well positioned in that area and we are going to face a good competition from them. So below are the marketing strategies for our offerings and USP.
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Strategy and Implementation Summary The strategic plan needs to be implemented, which is a process that requires careful planning. The key to implementing objectives identified in the strategic plan is to assign goals and responsibilities with budgets and deadlines to responsible owners - key employees or department heads, for example. We are going to open our initial outlet near to the Pal Beach School, Napean Sea Road. This will become our market testing area and as we go further we will open another outlet in the coming months. We will be offering various gifts while opening depend upon our bedget in order to attract the traffic. Value Proposition & Competitive Edge Our competitive edge comes from the advantage of having established relationships with Supplier and Retailer and Wholesalers. Haji Ali Juice Centre has received affirmation of the demand for their product in the form of requests of introducing new variety in the existing product line. We feel we have a superior product offering because of the larger variety of our Juice line, and because we purchase our material direct from the original suppliers who provide other well-known products. Our company's competitive edge exists because we address the needs of our specialty juices and snacks for our customers. Innovative Packaging and Friendly staff There are several other projects we are currently working on to further broaden our product lines and open up our markets even more. We will be more than glad to discuss in length some of our future confidential plans, upon request.
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Pricing Strategy Initially, we would like to introduce all the existing products of Haji Ali Juice at a discount price of 10% in order to attract the specified market. It helps us to create awareness among the potential customer. The cost structure is important for identifying key factors for success. To this end, Porter's value chain model is useful for determining where value is added and for isolating the costs. Promotion Strategy Personal selling will remain our most important means of promotion. Our budget for promotion activities is as follows:
Personal Selling which includes phone expenses, direct selling, trade promotion and data generation from private organization which leads to Rs 35,000 annually. Print Advertising Rs 1000 monthly.
Distribution Strategy Distribution is one of the greatest challenges faced by Haji Ali Juice Centre. Distribution costs for internal sales are absorbed by the customer but distribution costs for home delivery are absorbed by us.
Existing distribution channels - can be described by how direct they are to the customer. Current Haji Ali Centre has the selective distribution channel which limits to the certain part of Mumbai or majorly the Haji Ali area.
Trends and emerging channels - new channels can offer the opportunity to develop a competitive advantage Now, by considering the existing demand for the Juice and Snacks of Haji Ali, we would like to adopt the intensive distribution channel which helps the customer to obtain the advantage of our product near to them. This will also help us in creating brand and loyal customer every part from the Mumbai to Navi Mumbai.
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Financial Plan
The company will be privately held by Hitesh, Meenakshi, Amol, Mayank and Jitesh. Important Assumption: The rent of the store is assumed on the basis of current market rate at Napean Sea Road The outlet should have a minimum area of 800sq feet for proper working of the staff. All the costs are assumed The breakeven is calculated on the basis of only on Juice Sell and only the FC and VC is being considered. The cash flow statement is made only on the Juice Sell. Key Financial Indicators Equipment Costs Item Furniture Utensil Electric Cooking System Gas cooking system Electrical goods
Group 3 Haji Ali Juice Center
Salary and Wages (Monthly) Position Cook(3) Helper(4) Cleaning stuff(5) Delivery Boy(4) Store Boys(5) Store Manager (2) Security(1) Others Total Rate 15000 6000 5,000 5,000 4,000 30,000 7,000 Amount (Rs) 45K 24K 25K 20K 20K 60K 6K 50K 2.5lacs
Raw Materials Item Milk, Dryfruit etc Water Charges Others Total Amount(Rs) 6lacs 5K 5K 6.10Lacs
Rent of the Outlet Particular Building rent Total Amount(Rs.) 2.25lacs 2.25Lacs
Amount(Rs)
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Sources of Funds: Investor: 10Lacs Bank Loan: 5Lacs 5 Partners: 5Lacs Total: 20Lacs Break Even Analysis Fixed Cost Rent Salary and Wages Adv Elec Bill Total Total Variable Cost Raw Materials Others Total
12.75Lacs
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So for breakeven we have to sell atleast a 12750 Glasses per month of the Juices with an average price of Rs 100. Further it is noted that we will not be earning any profit for next 1 year. Projected Profit and Loss As the Profit and loss shows, we will run our business with loss for the first year, using sum of the cash reserves. So a total loss of Rs 8.4Lacs which will be recovered in the coming year by opening up new outlets and new product offering.
140000 120000 100000 80000 60000 40000 20000 0
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Cash Sales Total Cash Received Cash Spending and Bill Payments Net Cash Flow
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Figures are in Cr
Mar'15 INCOME: Sales Turnover NET SALES TOTAL INCOME EXPENDITURE: Salary & Wages Material Consumed Rent Advertisement Electricity Bill TOTAL EXPENDITURE Operating Profit Profit and Loss for the Year 0.363 0.8712 0.3267 0.1452 0.1452 1.5246 0.3267 0.3267 1.8513 1.8513 1.8513
Mar'14
Mar'13
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Management Summary Organizational Structure Organizational structure will include a director (Mr Amol Godbole) of store operations when the store locations exceed four units. We hope that this individual will come out of the ranks of our stores management. This will provide a supervisory level between the executive level and the store management level. Current plan is to have our accounting and payroll functions done by an in-house bookkeeping. Mr. Hitesh Agarwal will be responsible for accounting and business development of Juice Centre, helped by Ms. Meenakshi Mathpal, acting Head of Human Resources Division. Possible positions might be added at a later date include marketing manager, purchasing manager, controller, human resources, R&D and administrative support team. Personnel Plan Our initial employees will include three cooks, two helper, four cleaning staff, four delivery boy, two store manager, one security during open hours. This is considered an ideal personnel number for a food outlet the size of our own. Each employee will work for 38-40 hours per week.
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