SIP REPORT ON MARKETING STRATEGIES AT GIANIS ICE CREAM Submitted in partial fulfillment of requirement of Bachelor of Business Administration (B.B.

A !eneral

BBA " Semester (#ORNIN! Batch $%&&'$%&( Submitted to) #s.R+,-I SIN!-A. Assistant. Professor Submitted b*) /RO+-N !AR! &%0$(0%&1&&

2A!ANNAT- INTERNATIONA. #ANA!E#ENT S,-OO. 3A.3A2I4 NE5 /E.-I ACKNOWLEDGEMENT

&

I am deeply indebted to Mr.MAHESH GARG for his constant support, guidance and inspiration in completion of the internship program and preparation of this document. My sincere thanks to him for finding time out of his busy schedule and giving us invaluable suggestions. I am also grateful to other employee of Aviva Life Insurance for their encouragement and help. I would like to send my sincere thanks to Ms. RUCHI SINGHAL for her helpful hand in the completion of my project. Last but not the least; I would like to thank my parents and friends for their moral support throughout the project.

DROUHN GARG (10524501711)

DECLARATION
$

I, DROUHN GARG student of

achelor of

usiness Administration from

Ja a!!a"# I!"$r!a"%&!a' Ma!a $($!" S)#&&'* GGSI+ U!%,$rs%"- hereby declare that I have completed !ummer Internship project on .MARKETING STRATEGIES AT GIANIS ICE CREAM/ as part of the course re"uirement. I further declare that the information presented in this project is true and original to the best of my knowledge.

Ms. RUCHI SINGHAL (Ass%s"a!" +r&0$ss&r)

DROUHN GARG (10524501711)

CONTENTS
6

#escription
&'ecutive !ummary Introduction to topic *bjectives ,ompany profile Literature review .esearch Methodology #ata analysis Limitations ,onclusion Appendices ibliography

$age %o.
( ) + --) /0 /1) /1 12 (3

E1ECUTI2E SUMMAR3
&stablished in the year -+() at 4atehpuri #elhi, 5iani Ice ,ream is engaged in processing and marketing a delectable range of ice cream, faluda kulfi, Italian gelato, sorbet and snacks. eing -336 vegetarian, our delightful range of ice cream and snacks are relished by kids, youngsters and adults e"ually. !pread over a sprawling area of -(333 s"uare feet in Manesar and #elhi, our state of the art infrastructure is segregated into number of units such as processing unit, "uality testing, cold storage 7 packaging. 4acilities at our manufacturing unit include low temperature hardening room, continuous free8er and filling stations. 9nder the supervision of an efficient team comprising food e'perts, nutritionists, "uality controllers, sales personnel and administrative staff we are able to perform pasteuri8ation, homogeni8ation, hardening, aging the mi', free8ing and packaging at our facilities. *ur range is produced under stringent "uality norms using high "uality milk, cream, chocolate, fruits and other natural ingredients to assure high nutritional value and low fat content. *ur cold storage unit stores each variety of ice cream under re"uisite temperature so as to avoid re:crystalli8ation and maintain taste and freshness. ;e carefully and hygienically pack our ice creams in tamper proof material so as to maintain their "uality, taste and aroma. 9nder the proficient guidance of Mr. 5urbachan !ingh, the organi8ation has successfully gained an edge over our competitors as being customer centric. <is 13 years of industry e'perience, in:depth knowledge and transparent business policies has helped the 5iani ice cream franchise grow in #elhi and north India.

INTRODUCTION

+RODUCT O2ER2IEW
7

5iani Ice ,ream is engaged in processing and marketing a delectable range of ice cream, faluda kulfi, Italian gelato, sorbet and snacks. eing -336 vegetarian, our delightful range of ice cream and snacks are relished by kids, youngsters and adults e"ually. According to seasonal availability, we offer our customers a delectable range to choose from.

4ALUDAS
;e offer various types of faludas namely .*=AL 4AL9#A, >9L4I 4AL9#A, .A .I 4AL9#A. ?his is processed using rose syrup and creamy milk and served using nuts and resins to enhance taste and aroma. 4aluda has high nutritional alue and delicious taste and is popular among people of all age groups.

RICH AND CREAM3 ICE CREAMS

*ur delectable range of rich and creamy ice cream is prepared using natural ingredients with an e'cellent combination of creams, chocolate and milk. It has pleasing aroma and high nutritional value and is processed as per the highest "uality standards. ;e offer them in different "uantities to fulfill the individual re"uirements of our customer.

SUNDAES
1

!undaes consist of a scoop of ice cream topped with sauce or syrup and other toppings. *ur e'pertise used in preparing scrumptious and mouth watering sundaes makes the e'perience at 5iani ice cream outlet worthwhile. <ot chocolate fudge and anana split are the most popular sundaes among our other sundaes.

4RUIT ICE CREAMS

Litchi , Mango , $ineapple, and !trawberry are some of our most popular fruit ice cream flavors. 4resh fruit ice cream containing fresh fruits and creamy milk provides much needed relief from the scorching heat.

GELATO AND SOR5ET

!orbet is a Latin word which means to eat and drink at the same time. !orbet is a fro8en desert made from the sweetened water flavored with fruits. @amun sorbet is the most popular sorbet among people of all ages. 5elato is an Italian word which means a sweet treat that is served fro8en. #ark chocolate, fresh mango gelato the popular ones .

O5JECTI2ES

O5JECTI2ES
-. Attain sales of A-)),333 in the first year. 0. Increase second year sales by (36 and third year by /36. /. &'pand to two stores by the third year of business.

MISSION
5iani Ice ,ream is a hospitality company dedicated to providing high:"uality desserts in a comfortable atmosphere for clients who seek a fun BgourmetB e'perience outside restaurants. ;e intend to make enough profit to generate a fair return for our investors and to finance continued growth and development in "uality products. ;e also maintain a friendly, fair, and creative work environment, which respects diversity, new ideas, and hard work.

KE3S TO SUCCESS
#edication to the finest "uality ingredients and Bmake it happen no matter whatB customer service. *ngoing employee education and recognition programs. 5ive back to the community.

&%

COM+AN3 +RO4ILE

&&

COM+AN3 +RO4ILE
5iani Ice ,ream is a dessert bar concept. It emphasi8es handmade gourmet desserts in a casual atmosphere. ;atching your dessert be prepared right in front of you is the uni"ue selling point of our business.

START U+ SUMMAR3
*ur start:up costs come to A/33,333 which is mostly kitchen e"uipment, store furnishings and construction, and starting inventory e'penses associated with opening our first store. ?he start:up costs are to be financed by outside investment. ?he assumptions are shown in ?able - and Illustration 0.

Ta6'$7 S"ar"89:
Start-up .e"uirements !tart:up &'penses Legal *ffice !upplies eginning Inventory !ommelier consulting Menus, etc Insurance .ent #esign 7 ,onstruction .esearch and #evelopment 4urnishings &'pensed &"uipment #ishes, silverware, glassware, etc ?otal !tart:up &'penses !tart:up Assets ,ash .e"uired !tart:up Inventory *ther ,urrent Assets Long:term Assets ?otal Assets &$ A-,333 A0,333 A(,333 A(33 A-,333 A(33 A(,333 A-0(,333 A-,333 A-3,333 A-0(,333 A(,333 A0C-,333 A-+,333 A3 A3 A3 A-+,333

T&"a' R$;9%r$($!"s

A/33,333

?ableD !tart:up 4unding

Start-up Funding !tart:up &'penses to 4und !tart:up Assets to 4und ?otal 4unding .e"uired Assets %on:cash Assets from !tart:up ,ash .e"uirements from !tart:up Additional ,ash .aised ,ash alance on !tarting #ate ?otal Assets Liabilities and ,apital Liabilities ,urrent orrowing Long:term Liabilities Accounts $ayable E*utstanding illsF *ther ,urrent Liabilities Einterest:freeF ?otal Liabilities ,apital $lanned Investment Investor *ther Additional Investment .e"uirement ?otal $lanned Investment Loss at !tart:up E!tart:up &'pensesF ?otal ,apital ?otal ,apital and Liabilities T&"a' 49!<%! &6

A0C-,333 A-+,333 A/33,333 A3 A-+,333 A3 A-+,333 A-+,333

A3 A3 A3 A3 A3

A/33,333 A3 A3 A/33,333 EA0C-,333F A-+,333 A-+,333 A/33,333

CHART7 START8U+

&(

LITERATURE RE2IEW

&0

+RODUCTS AND SER2ICES

5iani Ice ,ream sells gourmet desserts coupled with e'ceptional customer service in a comforting atmosphere. ,ustomers can dine:in and watch the chef create their dessert. ;e also offer carry:out to prepare our desserts at home or have a special cake for a celebration.

MARKET ANAL3SIS SUMMAR3

5iani Ice ,ream focuses on local markets, with a special focus on restaurant and ice cream shop customers. #elhi provides an e'cellent climate for our dessert bar as households there spend more money dining out than anywhere else in the country.

MARKET SEGMENTATION
*ur market is divided into four different psychographicsD ,omfort ,reatures, ,elebrators, !occer Moms, and 5ourmet ;anna:bes. ?hey represent groups of people sharing similar behavior patterns and reasons for patroni8ing 5iani Ice ,ream. ,omfort ,reatures are mainly white collar workers who are driven by success and prestige yet miss homemade comfort foods of their childhood. ?hey may stop in on their own or bring clients in for a gourmet dessert e'perience. ,elebrators are just that : people celebrating special occasions. at .utabaga !weets over sumptuous desserts and a festive atmosphere. !occer Moms actually encompass all family members. 5iani Ice ,ream is a gathering place where families are welcome and feel comfortable. BMomsB can come in for after school milk and cookies with their children and rela' while we irthday,

anniversary, graduation, valentineGs day, etc., families and loved ones will gather

&7

pamper the little ones. *r they can meet up with friends for our ?ea ?ime : a little civili8ed time stolen in the midst of a busy day.

CHART MARKET ANALUSIS

&1

TA5LE7 MARKET ANAL3SIS

Market Analysis =ear $otential ,ustomers ,omfort ,reatures ,elebrators 5ourmet ;anna:bes !occer MomGs T&"a' 5rowth -36 -(6 -(6 -36 (,333 (,333 (,333 (,333 (,(33 (,2(3 (,2(3 (,(33 ),3(3 ),)-/ ),)-/ ),3(3 ),)(( 2,)3( 2,)3( ),)(( 2,/0C,21) C,21) 2,/00 =ear / =ear 1 =ear ( ,A5. -3.336 -(.336 -(.336 -3.336 -0.(+6 =ear

-0.(+6 03,333

00,(33 0(,/0)

0C,(03 /0,-/1

TARGET MARKET SEGMENTATION STRATERG3

;e have specifically targeted segments of people with an appreciation for delicious desserts and a need for comfort and rela'ation. 5iani Ice ,ream is a haven for the busy 7 successful who want to treat themselves to something soothing and a little sinfulH It doesnGt take a lot of time, yet is so rewarding. ?hese people will value the high "uality product presented without pretension. *ur customers will also appreciate the fun and fast service : whether celebrating a birthday or stopping in before a concert at the M,I ,enter.

SER2ICE 5USINESS ANAL3SIS

Although 5iani Ice ,ream is creating a new niche in the food service industry, we do share similarities, and therefore compete with several kinds of "uick:service dessert businessesD -. .estaurantsD any restaurant offering dessert. &8

0. Ice ,ream !hopsD askin 7 .obbins, , etc. /. #onut and ,offee !hopsD any place coffee and pastries are available for carry:out or dine:in consumption. 1. !upermarketD in:store bakeries as well as fro8en specialty desserts offer some competition. (. akeriesD free:standing traditional bakeries.

COM+ETITION AND 5U3ING +ATTERNS

Although 5iani Ice ,ream is opening up a new niche in the restaurant industry, there is no doubt that we are competing with a variety of similar businesses. ;e need to compete against the ideas that dessert is something that only follows a special dinner and neednGt be any better than a fro8en cake. ;e want every day to be a reason to celebrate. And being able to watch your gourmet dessert be prepared by a chef is a treat that appeals to everyone. ;hile price may be a factor when competing against Ice ,ream and ,offee !hops, these same consumers who are willing to pay five dollars for a latte or a scoop of ice cream are already conscious of a better "uality product. ;e believe they will be e"ually as willing to spend a little e'tra for an e'traordinary dessert in a warm and friendly setting. ?he comfort factor also plays an important role in consumer decisions about sweets. oth the atmosphere and staff of 5iani Ice ,ream e'cel at warm 7 friendly. And the menu will reflect Bcomfort foodB desserts as opposed to intimidating desserts that resemble architectural collosi. ;e will use the highest "uality products; sometimes paring the ordinary with the e'otic, but we will always present our desserts in a unintimidating manner.

COM+ETITATI2E EDGE
*ur competitive edge is our uni"ue niche in an old market. Although restaurants, cafes, bakeries, ice cream shops, etc have an established position in the &9

marketplace, none are "uite like 5iani Ice ,ream. ;e are offering the customers a completely new e'perience and far higher "uality product. %o where else will they find a professional chef preparing gourmet desserts right in front of them. ?he ama8ing popularity of the 4ood %etwork is proof of the publicGs new:found interest in being a spectator in the kitchen.

MARKETING STRATERG3
5iani Ice ,reamG marketing strategy will be education of the consumer and subse"uent word:of:mouth. ;e will become known as a uni"ue dining e'perience as well as a superior pastry shop. ,ustomers will be reached through fliers, newspaper advertisements and special holiday promotions. Location will also play a crucial role in marketing and promotion. ?he business will be located in high:traffic retail area in #elhi. .utabaga !weets will target progressive and generally well:educated and affluent consumers who are interested in trying new products and e'periences and are dissatisfied with the limited selection and lack of personal service found in grocery store bakeries, neighborhood cafes and ice cream shops and area restaurants.

SALES STRATERG3
-. ;e need to sell the company as well as the product. @ust as !tarbucks became synonymous with great coffee drinks, 5iani ice cream will come to be known as a gathering place with spectacular desserts. $%

0. ;e have to sell not only an ama8ing BshowB as the desserts are created, but also an above and beyond service team who are knowledgeable and friendly. $eople will always feel welcome and at home at 5iani Ice ,ream. ?he =early ?otal !ales chart summari8es our ambitious sales forecast.

SALES 4ORCAST
*ur !ales 4orecast shows modest estimates for the first year of operations beginning in May of -+(). After establishing 5iani Ice ,ream as GtheG place for sweets and celebrations, we project aggressive sales increases for the $&

following years. In the second year of operation we estimate sales increase of /36 and of (36 in the third year for desserts, $*$ and carry:out. ;e are planning a -36 increase in ;eekly Lesson fees each of the two following years while keeping costs constant. *ur cost of sales is based on an average food cost of 036 for dine in desserts and -(6 for point of purchase items, carry:out and weekly lessons. ;e project a consistent food cost percentage of these amounts for the following two years. >eeping food costs low while sales increase is vital to the profitability of .utabaga !weets.

Ta6'$7 Sa'$s 4&r$)as"

Sales Forecast =ear !ales #essert !ales $*$ !ales ,arry *ut A-11,333 A0,)(3 A(,-33 $$ =ear 0 A0-),333 A/,11( A),013 =ear / A0C3,C33 A(,-)2 A+,/)3

;eekly Lessons ?otal !ales #irect ,ost of !ales #essert !ales $*$ !ales ,arry *ut ;eekly Lessons S96"&"a' D%r$)" C&s" &0 Sa'$s

A-1,133 A-)),-(3 =ear A0C,C33 A/+C A2)( A0,-)3 A/0,-0/

A-(,C13 A01-,(0( =ear 0 A1/,033 A+/) A+/) A0,-)3 A12,0/0

A-2,101 A/-0,2(=ear / A(),-)3 A22( A-,131 A0,-)3 A)3,1++

$6

C#ar"7 Sa'$s M&!"#'-

$(

C#ar"7 Sa'$s 6- 3$ar

$0

MILESTONE
5iani Ice ,ream plans to be profitable within the first year of operation. *ur goal is to reinvest in the company and e'pand to three stores by the third year. 4rom that point we hope to establish partnerships with each storeGs chef; similar to *utbackGs proprietor program. ?hey will each invest in their store and be directly rewarded for its profitability.

MANAGEMENT SUMMAR3
5iani Ice ,ream will be slow to hire people in the first few years of operation, but very loyal to those who are hired. Initially all employees will be part:time as the majority of the work will be done by the chef:proprietor. As the company grows, new employees will be trained and supervised by original employees who have been promoted to a leadership position. It is our belief that employees who are dedicated to the success of 5iani Ice ,ream should be rewarded. ?hey will be leaders in our future store developments.

$7

+ERSONAL +LAN 5iani Ice ,ream intends to promote from within and reward the best employees
with leadership roles. *ur opening employment goal is 1 with a goal to increase to 2 by the end of the first year, -3 the second year and -0 the third year. ;e reali8e that this is very aggressive staffing, but intend to hire culinary professionals who are used to the demands of the restaurant business. y this hiring philosophy, we will be able to operate with fewer, but more productive employees and reward them accordingly. 4rom that point we intend to increase the responsibilities of each employee as opposed to hiring more people. ?hereby rewarding those who have worked hard to establish .utabaga !weets as a superior dessert shop. ?hese people will then be vital in our e'pansion as we open new stores.

Table: Personnel
Personnel Plan ,hefI$roprietor aker <ost #essert ar Assistants #ishwasherI usser ?otal $eople T&"a' +a-r&'' =ear A0C,C33 A/,+03 A1,/12 A2,033 A(,2+) 2 A(3,3)/ =ear 0 A/-,)C3 A1,/-0 A1,/12 A2,+03 A(,2)3 -3 A(1,3-+ =ear / A/1,C1C A),203 A1,/12 AC,2-0 A(,2)3 -0 A)3,/C2

4INANCIAL +LAN

$1

It is key to our financial success to grow 5iani Ice ,ream not just as a dessert bar, but as a company. ;e are looking for an investment of A/33,333 seed money with the hopes of eventually selling an established chain of dessert bars or establishing our company as a gourmet franchise. ?his means we must always be reinvesting in the future of 5iani Ice ,ream.

IM+ORTANT ASSUM+TIONS
?he financial plan depends on important assumptions, most of which are shown in the following table. ?he key underlying assumptions areD ;e assume a slow:growth economy, without major recession. ;e assume of course that there are no unforeseen changes in technology to make products immediately obsolete. ;e assume access to e"uity capital and financing sufficient to maintain our financial plan as shown in the tables.

Ta6'$7 G$!$ra' Ass9(:"%&!s

General Assumptions $lan Month ,urrent Interest .ate Long:term Interest .ate ?a' .ate O"#$r =ear -3.336 -3.336 /3.336 3 =ear 0 0 -3.336 -3.336 /3.336 3 =ear / / -3.336 -3.336 /3.336 3

5REAK E2EN ANAL3SIS

4or our break:even analysis, we assume running costs including our full payroll, rent, and utilities, and an estimation of other running costs. $ayroll alone, at our

$8

present run rate, is only about A1,333. Margins are harder to assume that far in the future.

C#ar"7 5r$a=8$,$! A!a'-s%s

Ta6'$7 5r$a=8$,$! A!a'-s%s

Break-even Analysis Monthly .evenue reak:even $9 A-/,0(-

AssumptionsD Average $ercent Jariable ,ost Es"%(a"$< M&!"#'- 4%>$< C&s"

-+6 A-3,)C+

6%

RESEARCH METHODOLOG3

+ROJECTED +RO4IT AND LOSS

An important assumption when calculating our $7L is the increase in sales from year to year. ;e are basing our assumptions on the financial success of 4inale 6&

#eserters in #elhi. ?hey reported a (36 increase in sales the second year of business followed by a /36 increase the ne't year. ;e feel 5iani Ice ,ream can match. It is also vital that we hold our food cost at 036 and -(6 respectively for dine:in desserts and $*$, carry:out and weekly lessons. ?hat will assure our gross margin remains high.

Ta6'$7 +r&0%" a!< L&ss

Pro Forma Profit and Loss !ales #irect ,ost of !ales *ther $roduction &'penses ?otal ,ost of !ales 5ross Margin 5ross Margin 6 &'penses $ayroll !ales and =ear A-)),-(3 A/0,-0/ A3 A/0,-0/ A-/1,30C C3.)26 =ear 0 A01-,(0( A12,0/0 A3 A12,0/0 A-+1,0+/ C3.116 =ear / A/-0,2(A)3,1++ A3 A)3,1++ A0(0,0(0 C3.))6

Marketing

A(3,3)/ and A0,/33 A3 A3 A),333 A0,133 A)3,333 A2,(3+ A3 A-0C,020 and A(,2(( A(,2(( A3 A-,202

A(1,3-+ A0,(33 A3 A3 A),333 A0,133 A)3,333 AC,-3/ A3 A-//,300 A)-,02A)-,02A3 A-C,/C-

A)3,/C2 A0,(33 A3 A3 A),333 A0,133 A)3,333 A+,3(C A3 A-13,/1( A---,+32 A---,+32 A3 A//,(20

*ther &'penses #epreciation Leased &"uipment 9tilities Insurance .ent $ayroll ?a'es *ther ?otal *perating &'penses $rofit efore Interest

?a'es & I?#A Interest &'pense ?a'es Incurred

6$

%et $rofit N$" +r&0%"?Sa'$s

A1,30+ 0.106

A10,C+3 -2.2)6

A2C,//( 0(.3(6

C#ar"7 +r&0%" M&!"#'-

66

C#ar"7 +r&0%" 3$ar'-

C#ar"7 Gr&ss Mar %! M&!"#'-

6(

C#ar"7 Gr&ss Mar %! 3$ar'-

60

+ROJECTED CASH 4LOW

eing a "uick:service oriented business, our cash flow depends on sales assumptions. It is critical to keep our food cost low. ;e also need to be careful to balance slow Enon:holidayF months with busy months with big holidays such as ,hristmas, JalentineGs #ay and MotherGs #ay.

Ta6'$7 Cas# 4'&@

Pro Forma Cash Flo =ear ,ash .eceived ,ash from *perations ,ash !ales !ubtotal ,ash from *perations A-)),-(3 A-)),-(3 A01-,(0( A01-,(0( A3 A3 A3 A3 A3 A3 A3 A01-,(0( =ear 0 A(1,3-+ A-1),+0A033,+13 A3 A/-0,2(A/-0,2(A3 A3 A3 A3 A3 A3 A3 A/-0,2(=ear / A)3,/C2 A-20,(-( A0/0,+30 A3 =ear 0 =ear /

Additional ,ash .eceived !ales ?a', JA?, <!?I5!? A3 .eceived %ew ,urrent orrowing A3 %ew *ther Liabilities Einterest: A3 freeF %ew Long:term Liabilities !ales of *ther ,urrent Assets !ales of Long:term Assets %ew Investment .eceived !ubtotal ,ash .eceived &'penditures &'penditures from *perations ,ash !pending ill $ayments !ubtotal !pent on *perations A3 A3 A3 A3 A-)),-(3 =ear A(3,3)/ A-31,--C A-(1,-C-

Additional ,ash !pent !ales ?a', JA?, <!?I5!? $aid A3 *ut 67

$rincipal .epayment of ,urrent A3 orrowing *ther Liabilities .epayment Long:term Liabilities $rincipal A3 $rincipal A3 A3 A3 A3 A-(1,-CA--,+)+ A/3,+)+

A3 A3 A3 A3 A3 A3 A033,+13 A13,(C( A2-,((1

A3 A3 A3 A3 A3 A3 A0/0,+30 A2+,C1+ A-(-,13/

.epayment $urchase *ther ,urrent Assets $urchase Long:term Assets #ividends !ubtotal ,ash !pent %et ,ash 4low Cas# 5a'a!)$

C#ar"7 Cas#

61

+ROJECTED 5ALANCE SHEET

?he balance sheet is "uite solid. ;e do not project any real trouble meeting our debt obligations : as long as we can achieve our specific objectives. ;e reali8e weGve projected aggressively, but are confident the location weGve chosen for 5iani Ice ,ream,, as well as the dessert bar concept itself , will be very successful. At this point we havenGt included any assets or depreciation in our calculations. ;hether we purchase new or used kitchen e"uipment will determine those numbers at a later date.

Ta6'$7 5a'a!)$ S#$$"

Pro Forma Balance Sheet =ear Assets ,urrent Assets ,ash Inventory *ther ,urrent Assets ?otal ,urrent Assets Long:term Assets Long:term Assets Accumulated #epreciation ?otal Long:term Assets ?otal Assets Liabilities and ,apital ,urrent Liabilities Accounts $ayable ,urrent orrowing *ther ,urrent Liabilities !ubtotal ,urrent Liabilities A/3,+)+ A/,C/1 A3 A/1,C30 A3 A3 A3 A/1,C30 =ear A--,221 A3 A3 A--,221 A2-,((1 A),1)2 A3 A2C,30A3 A3 A3 A2C,30=ear 0 A-0,-3/ A3 A3 A-0,-3/ A-(-,13/ A2,0-) A3 A-(C,)-+ A3 A3 A3 A-(C,)-+ =ear / A-1,/)( A3 A3 A-1,/)( =ear 0 =ear /

68

Long:term Liabilities ?otal Liabilities $aid:in ,apital .etained &arnings &arnings ?otal ,apital ?otal Liabilities and ,apital N$" W&r"#

A3 A--,221 A/33,333 EA0C-,333F A1,30+ A0/,30+ A/1,C30 A0/,30+

A3 A-0,-3/ A/33,333 EA02),+2-F A10,C+3 A)(,+-C A2C,30A)(,+-C

A3 A-1,/)( A/33,333 EA0/1,3C0F A2C,//( A-11,0(/ A-(C,)-+ A-11,0(/

69

5USINESS RATIOS Ta6'$7 Ra"%&s

!atio Analysis =ear !ales 5rowth $ercent of ?otal Assets Inventory *ther ,urrent Assets ?otal ,urrent Assets Long:term Assets ?otal Assets ,urrent Liabilities Long:term Liabilities ?otal Liabilities %et ;orth $ercent of !ales !ales 5ross Margin !elling, 5eneral n.a. --.306 3.336 -33.336 3.336 -33.336 //.C/6 3.336 //.C/6 )).-26 -33.336 C3.)26 7 2C.016 =ear 0 1(./26 C.0+6 3.336 -33.336 3.336 -33.336 -(.(-6 3.336 -(.(-6 C1.1+6 -33.336 C3.116 )0.)+6 -.316 0(./26 =ear / 0+.1+6 1.((6 3.336 -33.336 3.336 -33.336 +.3)6 3.336 +.3)6 +3.+16 -33.336 C3.))6 ((.)-6 3.C36 /(.2C6 Industry $rofile 1.()6 -/.3C6 //./(6 (1.026 1(.2/6 -33.336 01.2/6 02.0/6 (-.+)6 1C.316 -33.336 01.0)6 -0.-06 3.+C6 -.+06

Administrative &'penses Advertising &'penses -./C6 $rofit efore Interest and /.1)6 ?a'es Main .atios ,urrent Kuick ?otal #ebt 0.+) 0.)/ ?otal //.C/6

to

).1( (.+-(.(-6 +0.+(6 2C.(/6 =ear 0 (%

--.31 -3.(1 +.3)6 22.(C6 23.((6 =ear /

-./2 3.21 (+.0)6 1.+/6 -0.-36

Assets $re:ta' .eturn on %et 01.++6 ;orth $re:ta' .eturn on Assets Additional .atios -).(16 =ear -

%et $rofit Margin .eturn on &"uity

0.106 -2.1+6

-2.2)6 )(.326 +.-2 -0.-2 /3 /.-3 3.-C -.33 A)(,+-C 3.33 3./0 -)6 (.+/.)) 3.33

0(.3(6 (1./36 C.C1 -0.-2 0C -.+2 3.-3 -.33 A-11,0(/ 3.33 3.(+6 -3.(1 0.-2 3.33

n.a n.a n.a n.a n.a n.a n.a n.a n.a n.a n.a n.a n.a n.a n.a

Activity .atios Inventory ?urnover -3.21 Accounts $ayable +.C1 ?urnover $ayment #ays ?otal Asset ?urnover #ebt .atios #ebt to %et ;orth ,urrent Liab. to Liab. Li"uidity .atios %et ;orking ,apital Interest ,overage 02 1.22 3.(-.33 A0/,30+ 3.33

Additional .atios Assets to !ales 3.0,urrent #ebtI?otal /16 Assets Acid ?est !alesI%et ;orth D%,%<$!< +a-&9" 0.)/ 2.03.33

(&

LIMITATIONS
?he data collection was little bit tough because latest data is not available on the internet. 4inding the data of Insurance sector is very difficult. $roblem occurred due to lack of time and facility of internet

A++ENDICES

Ta6'$7 Sa'$s 4&r$)as"

Sales Forecast Month !ales #essert !ales $*$ !ales ,arry *ut ;eekly Lessons ?otal !ales #irect ,ost of A0,133 A/3 A1( A023 A0,21( !ales #essert !ales $*$ !ales ,arry *ut ;eekly Lessons S96"&"a ' D%r$)" C&s" &0 Month 0 A0,133 A/3 A1( A023 A0,21( Month / A0,133 A/3 A1( A023 A0,21( Month 1 A0,133 A-( A1( A-/( A0,(+( Month ( A0,133 A-( A1( A-/( A0,(+( Month ) A0,133 A-( A2( A-/( A0,)0( Month 2 A/,033 A1( A-(3 A023 A/,))( Month Month C A-,)33 AC A/3 A-/( A-,22/ 0 Month / Month 1 Month ( Month ) Month 2 Month Month C

36 A-0,333 A-0,333 A-0,333 A-0,333 A-0,333 A-0,333 A-),333 AC,333 36 A033 36 A/33 36 A-,C33 A033 A/33 A-,C33 A033 A/33 A-,C33 A-33 A/33 A+33 A-33 A/33 A+33 A-33 A(33 A+33 A/33 A-,333 A-,C33 A(3 A033 A+33

A-1,/33 A-1,/33 A-1,/33 A-/,/33 A-/,/33 A-/,(33 A-+,-33 A+,-(3

Ta6'$7 +$rs&!!$'

Personnel Plan Month Month Month Month Month Month Month

Mont

,hefI$roprietor aker <ost #essert ar

36 36 36 36

A0,133 A3 A1C/ A)33

0 A0,133 A3 A3 A)33 A1C/ 1

/ A0,133 A3 A3 A)33 A1C/ 1

1 A0,133 A3 A3 A)33 A1C/ 1

( A0,133 A3 A1C/ A)33 A1C/ 1

) A0,133 A()3 A1C/ A)33 A1C/ (

2 A0,133 A()3 A1C/ A)33 A1C/ (

C A0,13 A()3 A1C/ A)33 A1C/ (

Assistants #ishwasherI usser 36 A1C/ ?otal $eople 1 T&"a' +a-r&''

A/,+)) A/,1C/ A/,1C/ A/,1C/ A/,+)) A1,(0) A1,(0) A1,(0

Ta6'$7 G$!$ra' Ass9(:"%&!s

General Assumption s Month $lan Month ,urrent Interest .ate Long:term Interest .ate ?a' .ate O"#$r -3.33 6 -3.33 6 /3.33 6 3 Month 0 0 -3.33 6 -3.33 6 /3.33 6 3 Month / / -3.33 6 -3.33 6 /3.33 6 3 Month 1 1 -3.33 6 -3.33 6 /3.33 6 3 Month ( ( -3.33 6 -3.33 6 /3.33 6 3 Month ) ) -3.33 6 -3.33 6 /3.33 6 3 Month 2 2 -3.33 6 -3.33 6 /3.33 6 3 Month C C -3.33 6 -3.33 6 /3.33 6 3

+ + -

6 3

Ta6'$7 +r&0%" a!< L&ss

Pro Profit Loss Month !ales #irect ,ost of !ales *ther $roduction &'penses ?otal ,ost of !ales 5ross Margin 5ross Margin 6 &'penses $ayroll !ales and Marketing and *ther A3 A3 A(33 A033 A(,333 -(6 A(+( A3 A3 A(33 A033 A(,333 A(00 A3 A3 A(33 A033 A(,333 A(00 A3 A3 A(33 A033 A(,333 A(00 A3 A3 A(33 A033 A(,333 A(+( A3 A3 A(33 A033 A(,333 A)2+ A3 A3 A(33 A033 A(,333 A)2+ &'penses #epreciation Leased &"uipment 9tilities Insurance .ent $ayroll ?a'es A0,21( A0,21( A0,21( A0,(+( A0,(+( A0,)0( A/,))( Month Month Month Month Month Month Forma and

0 / 1 ( ) 2 C A-1,/33 A-1,/33 A-1,/33 A-/,/33 A-/,/33 A-/,(33 A-+,-33 A+ A0,21( A0,21( A0,21( A0,(+( A0,(+( A0,)0( A/,))( AA3 A3 A3 A3 A3 A3 A3

A3

A-

A--,((( A--,((( A--,((( A-3,23( A-3,23( A-3,C2( A-(,1/( A2 C3.C36 C3.C36 C3.C36 C3.1+6 C3.1+6 C3.()6 C3.C-6

C3

A/,+)) A-,333

A/,1C/ A3

A/,1C/ A3

A/,1C/ A3

A/,+)) A3

A1,(0) A/33

A1,(0) A(33

A1 A3

A3 A3

A( A0 A( A)

*ther ?otal *perating &'penses $rofit efore

A3

A3

A3 A+,23(

A3 A+,23(

A3

A3

A3

A3

A--,0)- A+,23(

A-3,0)- A--,03( A--,13( A-

A0+1

A-,C(3

A-,C(3

A-,333

A111

EA//3F

A1,3/3

EA/ F

Interest and ?a'es & I?#A Interest &'pense ?a'es Incurred %et $rofit N$" +r&0%"?Sa'$s A03) -.116 A-,0+( +.3(6 A-,0+( +.3(6 A233 (.0)6 A/-0./16 EA0/-F :-.2-6 A0,C0-1.226 A0+1 A3 ACC A-,C(3 A3 A((( A-,C(3 A3 A((( A-,333 A3 A/33 A111 A3 A-// EA//3F A3 EA++F A1,3/3 A3 A-,03+

EA/

F A3

EAF

EA0 F :

0)

Ta6'$7 Cas# 4'&@

Pro

Forma Month 0 Month / Month 1 Month ( Month ) Month 2 Month

Cash Flo

,ash .eceived ,ash from A-1,/33 A-1,/33 A-1,/33 A-1,/33 A-1,/33 A-/,/33 A-/,/33 A-/,(33 A-+,-33 A-1,/33 A-/,/33 A-/,/33 A-/,(33 A-+,-33

*perations ,ash !ales !ubtotal ,ash from *perations Additional ,ash

.eceived !ales ?a', 3.336 A3 JA?, <!?I5!? .eceived %ew ,urrent orrowing %ew *ther Liabilities Einterest: freeF %ew term Liabilities !ales of *ther A3 Long: A3 A3 A3

A3

A3

A3

A3

A3

A3

A3 A3

A3 A3

A3 A3

A3 A3

A3 A3

A3 A3

A3

A3

A3

A3

A3

A3

A3

A3

A3

A3

A3

A3

,urrent Assets !ales Long:term Assets %ew Investment .eceived !ubtotal ,ash .eceived &'penditure s &'penditure s from A/,+)) A1/C A1,131 on A/,1C/ A-/,302 A-),(-3 A/,1C/ A+,(00 A/,1C/ A+,(3/ A/,+)) AC,+(( A1,(0) A+,3/3 A1,(0) A+,/)3 *perations ,ash !pending ill $ayments !ubtotal !pent *perations Additional ,ash !pent !ales ?a', JA?, <!?I5!? $aid *ut $rincipal .epayment of ,urrent orrowing A3 A3 A3 A3 A3 A3 A3 A3 A3 A3 A3 A3 A3 A3 Month 0 Month / Month 1 Month ( Month ) Month 2 Month A-1,/33 A-1,/33 A-1,/33 A-/,/33 A-/,/33 A-/,(33 A-+,-33 A3 A3 A3 A3 A3 A3 A3 of A3 A3 A3 A3 A3 A3 A3

A-/,33( A-0,+C) A-0,+0- A-/,(() A-/,CC)

*ther Liabilities $rincipal .epayment Long:term Liabilities $rincipal .epayment $urchase *ther ,urrent Assets $urchase Long:term Assets #ividends !ubtotal ,ash !pent %et 4low Cas# 5a'a!)$ ,ash

A3

A3

A3

A3

A3

A3

A3

A3

A3

A3

A3

A3

A3

A3

A3

A3

A3

A3

A3

A3

A3

A3

A3

A3

A3

A3

A3

A3

A3 A1,131

A3 A-),(-3

A3 A3 A3 A3 A3 A-/,33( A-0,+C) A-0,+0- A-/,(() A-/,CC)

A+,C+)

EA0,0-3

A-,0+(

A/-1

A/2+

EA()F

A(,0-1

F A0C,C+) A0),)C)

A02,+C- A0C,0+1 A0C,)21 A0C,)-2 A//,C/-

Ta6'$7 5a'a!)$ S#$$"

Pro Sheet

Forma

Balance Month Assets !tarting alances ,urrent Month 0 Month / Month 1 Month (

Assets ,ash Inventory *ther ,urrent Assets ?otal ,urrent Assets Long:term Assets Long:term

A-+,333 A3 A3

A0C,C+) A/,303 A3

A0),)C) A/,303 A3

A02,+CA/,303 A3

A0C,0+1 A0,C(( A3

A0C,)21 A0,C(( A3

A0 A0 A3

A-+,333

A/-,+-(

A0+,23(

A/-,333

A/-,-1+

A/-,(0C

A/

A3

A3 A3 A3 A/-,+-( Month -

A3 A3 A3 A0+,23( Month 0

A3 A3 A3 A/-,333 Month /

A3 A3 A3 A/-,-1+ Month 1

A3 A3 A3 A/-,(0C Month (

A3

Assets Accumulated A3 #epreciation ?otal Long: A3 term Assets ?otal Assets Liabilities and ,apital ,urrent Liabilities Accounts $ayable ,urrent orrowing *ther ,urrent Liabilities !ubtotal ,urrent Liabilities Long:term Liabilities A3 A3 A3 A3 A3 A-+,333

A3

A3

A/

A-0,23+ A3 A3

A+,03( A3 A3

A+,03( A3 A3

AC,)(1 A3 A3

AC,200 A3 A3

AC

A3

A3

A-0,23+

A+,03(

A+,03(

AC,)(1

AC,200

AC

A3

A3

A3

A3

A3

A3

?otal Liabilities $aid:in ,apital .etained &arnings &arnings ?otal ,apital ?otal Liabilities and ,apital N$" W&r"#

A3

A-0,23+

A+,03(

A+,03(

AC,)(1

AC,200

AC

A/33,333 EA0C-,333 F A3 A-+,333 A-+,333

A/33,333 EA0C-,333 F A03) A-+,03) A/-,+-(

A/33,333 EA0C-,333 F A-,(3A03,(3A0+,23(

A/33,333 EA0C-,333 F A0,2+( A0-,2+( A/-,333

A/33,333 EA0C-,333 F A/,1+( A00,1+( A/-,-1+

A/33,333 EA0C-,333 F A/,C3) A00,C3) A/-,(0C

A/

EA

F A/ A0 A/

A-+,333

A-+,03)

A03,(3-

A0-,2+(

A00,1+(

A00,C3)

A0