Professional Documents
Culture Documents
We are starting an urban caf called After Hours without a hot kitchen. The location of this
caf will be in gulberg near kasuri road. We will provide our customers a range of hot and cold
beverages i.e. coffee, tea, milkshakes, juices of all kinds, cold smoothies, cold sandwiches,
sandwiches for diet conscious people, and bakery items and cold deserts.
Customer groups by industries:
Geographic:
The location of our caf would be near Kasuri road, Lahore in Gulberg, because it is an emerging
market and there are many opportunities in that area. Our main target are the people from upper
middle and upper class and the people living in the developed areas of the city, the working
class, women obsessed with shopping and students. In future if we receive a positive response
then well plan to expand to other major cities such as Islamabad, Karachi, Faisalabad and
Multan.
Psychology:
These days most of the cafes and restraunts in that area have a hot kitchen, have a specified long
list of dishes in their menu and in return take a long time to serve, we on the other hand will
introduce the concept of a cozy little nook with delicious organic and espresso, several varieties
of Chai, flavored teas, smoothies, juices and a tasty assortment of baked goods from local
bakeries: breakfast burritos, bagels, croissants, quiche and more. This is especially for people
who dont have enough time to sit out at an expensive restraunt and wait for their meal, it is
targeted on people who just need a little bite! For example for women who are out for shopping
and need a break to sit n take a drink or coffee, for people rushing to office in the morning so
they can quickly grab a bite, and for students when they need a little break. Our caf will provide
the opportunity of eating out even when u dont have enough time on your hands to look around.
Behavior:
People are becoming health and fitness conscious and prefer eating low fat and hygienic food.
People also prefer going to places where they dont have to wait for long time because after a
hectic routine nobody likes to wait for eating. We provide food items which take the least time to
get ready and are available at any time in a day.
Demographics:
Our main target are youth and the people in their professional lives. Out target market also
includes the families who like to go out and meet their friends or families to have some talk and
to take a break from their busy routines outside their homes. Our target would be people of the
urban areas. People going to offices dont have much time in the morning so they can take
advantage of our drive thru service, women who are busy shopping and drop in when they need a
break.
Market size:
People of Lahore love to eat out, and we are not the only caf in town so the market size is
increasing and so is the competition. We know our audience loves to go out and eat, so we have
some unique points to attract them, first one is the fast serving Drive Thru, many restaurants in
town also provide this facility but it hasnt been provided by any caf to its customers. This
facility is mostly beneficial for the working class, as they cannot be late and cannot wait at office
timings. The second is our long list of sweets and desserts, as people love some sweet desserts
after a heavy meal, especially dinner.
Future trends:
As we know that because of terrorism and political and economic instability the people of our
country are not left with recreational activities. In the past there were some trends for recreation
such as going to cinema for a movie with family but as the time has changed and life has become
fast people are busy all around the day and due to increase in terrorist activates all the
recreational activities have finished except of going out with family, friends, colleagues, peers
etc. for eating. Even in crisis people dont stop eating. So in future trend of cafes is visible and
people will go out to eat. People these days dont get time to meet each other and visit each so
caf like ours will provide them opportunity to sit and relax and a have a time with their family
or friends. The trend of eating outside the house is increasing.
PEST analysis:
Political factors are basically to what degree the government intervenes in the economy.
Currently the government has no such laws which negatively affect our business. The food
department has some laws for hygienic food items which we will ensure that our food items we
offer are hygienic. In future if the government passes any laws which directly or indirectly may
affect our business in a negative or positive way i.e. a high tax rate for urban cafes.
Economic factors include economic growth, interest rates, exchange rates and the inflation rate.
We are facing a high inflation rate and have instability in our economy. The purchasing power of
people has already decreased. If this instability remained there and the inflation rate kept on
increasing there will be effect on our business the prices would increase of the products and if the
economy gets stabled and the inflation rate comes down that would be a positive sign for our
business as more customers would be attracted. Social factors include the cultural aspects and
include health consciousness, population growth rate, age distribution, career attitudes and
emphasis on safety. It has become a trend in our country as well among the youth of going out
for breakfast, lunch and for tea time. The trend of sitting out in cafes till midnight or so has also
gained attention now. Due to less recreational activities the trend of going out for eating or
hanging out in cafes has increased from the past few years. In the case of technological factors
we need up-to date machines or making fresh food items and in less span of time e.g. latest
coffee making machines.
SWOT analysis:
Strengths:
We provide more products then our competitor in case of food of items and beverages. We also
offer our customers the drive thru service. Our caf would be open after midnight as well and has
a sports lounge as well which have indoor sports such as chess, ludo, cards, ps3 and Xbox and a
wifi facility.
Weakness:
Our weakness is that we dont have a hot kitchen. For lunch and dinner customers wont come to
us. We are also new in the industry so we lack in experience.
Opportunities:
More and more people are becoming diet conscious and prefer hygienic food so the target market
would increase, plus daily routines and lives are getting busier with time, so market would
increase as people want to spend less time waiting for food.
Threats:
Threat to our business could be multinational chains like Starbucks could start their operations in
our country. The existing competitors can open more branches.
Positioning statement:
For people who are always on a run, caf table serves coffee, gourmet sandwiches, organic
salads, smoothies, exotic iced tea drinks and bakery items. Unlike other cafes, cafe tables provide
you an opportunity to take a break from your busy lives and take a sip and bite and carry on.
Market Share Goals
The major competitors in our business are the very famous Gloria jeans, who also hold the
largest market share which is approximately estimated to be 35%. With this market share they
become the market leader in this industry. Gloria jeans has 5 branches at the hot locations of the
city. The second major competitor is the Masooms pancake lounge. With the market share of
25% they tend to be the runner ups of the industry. They also have 3 branches in the city, one in
gulberg, one in defence and one on link road. The third competitor or our business is Coffee
Planet. With one branch their market share is said to be approximately 20%. With this market
share they hold the third position in the industry.
Our goal is to increase the market share of our caf After Hours to 20% within the period of
first 2-3 months and to make our caf popular among the target mouth. We want our caf to be in
the top of the consideration set when people think of going for coffee or want to spend some time
with their family and friends and want to relax somewhere outside their homes.
The diagram below shows the market share of the leader and the other competitors in the
industry. The market shares shown are approximated figures.
Second Month:
Chillers: Average Sales = 3030
Percentage increased 1%
Espresso: Average sales = 5100
Percentage increased 2%
Eatables: Average sales = 2000
Percentage increased 0%
Third Month:
Chillers: Average Sales = 3046
Percentage increased 0.5%
First month:
Number of customers = 2500 per month
84 per day
Second month:
Number of customers = 2850 per month
95 per day
Percentage increased 14%
Third month:
Number of customers = 3420 per month
114 per day
Percentage increased 20%
Fourth month:
We expect that 2500 customers will visit us in the first month or at least 84 customers visit us per
day. In the second month with the opening of second branch we expect 14% increase in
customers which will be that 95 customers will visit us per day and 2850 customers per month.
In the third month we expect that there will be 20% increase in our customers, increasing our
number of customers to 114 per day and 3420 per month. In the middle of the third month we
will inaugurate a new branch in another area and by the end of fourth month with 3 branches in
the city we expect that our customers will increase by 25%, 142 customers per day and 4275
customers per month.
We further expect to increase 4% in our revenue of the fourth year, altogether making it a 10%
increase in our sales revenue in the first quarter of the year.
2,917,475 + (2,917,475 x 4%) = 3,034,174
Revenue by Product Type
We have divided our products in 3 major categories:
Chillers
Espresso
Desserts & sandwiches
First Month:
Chillers:
Forth Month:
Chillers: Avg price: 250
Avg sales increase/month: 3046+(3046x2%) = 3107
3107 x 250 = 776,750
Espresso: Avg price: 300
Avg sales increase/month: 5177+(5177x1%) = 5229
5229 x 300 = 1,568,700
Cold eatables: Avg Price: 250
Avg sales increase/month: 2020+(2020x1%) = 2041
2041 x 250 = 510,250
Revenue by Customer type.
We have divided our customers into three types:
Working class: 1/4
Youth: 1/2
Families(ladies mostly with kids): 1/4
First Month:
Total revenue: 2750000
Working class: 2750000 x 1/4 = 687,500
Youth: 2750000 x = 1,375,000
Families: 2750000 x = 687,500
Second Month:
Total Revenue: 2,832,500
Working class: 2,832,500 x = 708,125
Youth: 2,832,500 x = 1,416,250
Families: 2,832,500 x = 708,125
Third Month:
Total Revenue: 2,917,475
Working class: 2,917,475 x = 729,368.75
Youth: 2,917,475 x = 1,458,737.5
Families: 2,917,475 x = 729,368.75
Fourth Month:
Total Revenue: 3,034,174
Working class: 3,034,174 x = 758,543.5
Youth: 3,034,174 x = 1,517,087
Families: 3,034,174 x = 758,543.5
Revenue by territory
We plan to open 4 branches in different locations in Lahore by the end of our first four months.
First Month:
We only operate one branch in the first month, so the entire revenue is earned from one caf.
Revenue: 2,750,000
Second Month:
By the second month, we are expecting to open a second branch, but the major revenue is still
contributed by the first branch.
train where generally thousands of upper middle and high income level
health conscious people use to travel daily. Another emerging market is
government owned projects like Metro bus stations in Lahore and Islamabad,
historical places( Lahore fort) parks (Jilani park) . Youngsters are also one of
the largest markets for us and we have planned to grab directly that
segment through educational institutions like universities (UCP,LUMS,LSE)
colleges (PCBA,LC,KC) schools like(LGS,BECON HOUSE) we are foreseen a
huge potential of our products in different metro cities in the time to come.
New Business acquisition strategies:
In order to acquire new business in the best way possible, we are planning to
execute a sales promotion plan including numerous tactics to grab as much
customer line as possible. These will basically be the short term tactics to
achieve success.
Keep a notice of the quick referrals that people give to others to visit our
caf, and make sure those referrals are awarded too, for example with a
free coffee and a cookie.
Statement of overall competitive strategy
Our competitive edge would be 3 unique facilities we are providing our
customers with, one of them will be our unique timings, from 8 am - 4 am.
The reason for these timings is that we have a limited target market and
people belonging to that class mostly stay awake late and obviously need
something to eat. The second competative edge we have is our unique
sitting arrangment, which is devided in 3 areas, namely smoking area,
business class and mix. As the names suggest these three areas will have
their own audiences at all times. Our drive though will remain open same as
the cafe timings, and as no other cafe has a drive through, it is our third
competative edge.
Pricing Strategies
Our objective as referred to pricing is to be cheap from our competitors in the beginning to earn a
place in this industry. Our competitors have a well-established names and positing in the minds
of people. To make a place we need to give our customers good value but in a cheaper price from
our customers. Our beverages and food items are priced to give us an attractive margin while at
the same time offering value to the customer. We want repeat business, and we also want the
experience to remain fresh. Therein lies why the beverages and food programming will be
relatively flexible.
In the early stage of our business we will be using the penetration pricing strategy. Penetration
pricing strategy is designed to capture market share by entering the market with a low price
relative to the competition to attract buyers. The idea is that the business will be able to raise
awareness and get people to try the product. Even though penetration pricing may initially create
a loss for the company, the hope is that it will help to generate word-of-mouth and create
awareness amid a crowded market category. Penetration pricing strategy will help us in creating
a position in the minds of the people and will also attract the customers of all the social class.
One of our main target customers are students so this pricing strategy will help us in catering a
large number of customer from this class.
Once our business is running, a good word of mouth has been created and we have positioned
our self in the minds of people and have become the top priority among the consideration set
when people of going to a caf then we will shift our pricing strategy to the competition pricing
strategy. We will keep our pricing strategy lower from our competitors. One of the things we will
compete with our competitors is the pricing. This will also help us to cater price conscious
people. We will also introduce bundle pricing for some of our products keeping in view the
seasonal changes and demand of our customers e.g. offering a chocolate cup cake with coffee.
This will reduce the total price of the product as compared to buying both the items separately.
To our regular customers we will also offer customer loyalty discounts so that our regular and
loyal customers remain loyal to us and they come to us whenever they think of going to a caf
for a coffee with friends or family members. The customer loyalty discounts will be given to
customers through a loyalty card for which the customer will be charged annually, semi-annually
or on quarterly basis, depending on the deal the customer wishes to make.
month "Things came up that we would have never thought of. Additionally, as a group of individuals we are really
creative, thinking of upcoming campaigns and opportunities. From our suppliers we will ask for more incentives and
from our client we will address targets to ensure we are doing what is best for the entire marketing programmed." As
a result of keeping all parties involved, we are expecting enhanced working relationships and a performance increase
measured on actual sales. By keeping the communication alive, I am confident that we can boost sales by over 10%
this quarter."
Flexes: For sales promotion and communication of our message to our target customers, we have choose to put
flexes and small banners on green belt lights, and near public places, all around the city of Lahore. We would
need 5000 small banners for green belts and 100 flexes. This is going to cost us 6.5 lakh approx. It is to be
noted, that these are not exact costs it can vary from the actual budget.
Sales Promotion through facebook: Internet these days is the fastest way to spread a message, be it a
promotion cause or anything. We will do our sales promotion by making a facebook page, introducing different
coupon winning games, and update the page with the latest things coming up. This is a cheap way of promoting,
but we have to hire a person to take the responsibility of the page, the expenses will cost us about 2 lakh for a
quarter.
BTL Activities: we will conduct numerous BTL activities to promote ourselves, some of them include a person
dressed outside our caf, or other nearby public shops. These activities instantly grab peoples attention and so
weve choosen them to promote our new business. This would cost us about, 300,000 rs.
Hosting small events on our behalf: In order to encourage people to visit us more often, and to spread the
word about us, we have planned to host a small in house musical evening, with free drinks for some people,
This would increase our publicity in young generation and they would even participate. This would cost us
almost 400000 quaterly.
Guerilla marketing: These will be the unique ways through which we will convey our message to our target
market. This will cost us almost about 400000 rs quarterly.
SALE PROMOTIONALACTIVITIES
First Month
1.
2.
3.
4.
Second Month
1.
2.
3.
Guest appearance
in evening
Place stalls at a
food festival
Facebook contest
Third Month
1.
2.
3.
4.
Fourth Month
1.
2.
Participate in
Lahore food
junctions
Free cold
beverage contest
on facebook
3,034,174/200,000 = 15.17
This shows that we need approximately 16 workers in our caf to meet our expected revenue objective of the 4
quarters. These people will be divided into people who work as waiters, and others as the sales staff for fulfilling the
sales promotions activities.
We also require two managers, one for training and supervising hiring recruiting the workers and one for managing
the financials. These activities will be performed by the owners of the caf.
Salaries of all the staff for a month is as follow:
category
Total
Sales People
20,000/ person
160,000
Waiters
15000/ person
160,000
Supervisor
30000/ person
60,000
Managers
50000/ person
100,000
Competencies:
We will make sure our team is the finest of the teams; from the management to the waiters all people will have a
well knowledge of what they have to do and which way they have to do. We will also train our team according to
their needs. We will the hire the best chefs for our caf who can serve our customers with the best of the beverages
and food items. A manager would be there to look after the caf. The waiters will be always ready to welcome
customers and to take orders from them and serve them as soon as possible. We will make sure that our kitchen is up
to date. All the equipments and machines used are up dated and latest technology will be acquired and the chefs will
be given trainings on operating them. If things need to be changed in future keeping in view the changes in the
system or if the employees need to learn something new or they need training regarding to something, the training
will be given to them without wasting any time.
communicate with our employees in the training sessions conducted for them. In which they will be made well
aware of what is required for them and things they need to adopt to play their role in achieving the organizational
goals. They will also be briefed on the changes being made, if any. We will also use the electronic mail to keep our
employees up to date about all the policies of the caf and also about their jobs. These forms of communication will
be used so that the employees remain up to date about the organizational rules and the things they need to do to help
the organization in achieving the goals. They will also be briefed and communicated if any training is being
conducted for the employees or any changes are being in their job description.
Monitoring
During monitoring we are concerned about the employees whether they are working efficiently or not. Are they
meeting up the goals that were assigned to them? Are they meeting up the business missions or not. Well check for
a meeting every month to compare the actual performance and the budgeted performance of each quarter, we will
also conduct a detailed employee evaluation of his current performance to keep in check their individual
performance.
Feedback
As our business is new so we will adopt the different ways to get the feedback of our cafe We will take the feedback
from our customers by giving the feedback form We will also get the feedback from our employee on weekly bases
during the meetings Another way of getting the feedback is our facebook page. From all these ways we will get to
know about the perception and the standard of our cafe. If the feedback is positive this will also effect the sales of
our cafe otherwise we will remove the flaws and increase the sales promotions.
Group members:
1. Amna Khan (L1F10BBAM0261)
Contact no: 0323-4420199
Email id: amnakh.0261@gmail.com
Duties and responsibilities: group leader, idea generation, proof reader, coordinating
with other group members, assigning tasks to be fulfilled, compiling and consolidating
the overall data into a meaningful form, finalizing the overall marketing and sales plan,
research on competitors competitive advantage and designing our own competitive ede
over them.
2. Anam Iftikhar (L1F10BBAM0268)
Contact no: 03213342976
Email id: rainbowhub1@gmail.com
Duties and responsibilities: idea generation, analysis of latest market trends, selecting
target market, identifying the SWOT analysis in the industry, designing sales goals
revenue, designing the budget programme, helping in designing sales goals.
3. Asad Butt (L1F10BBAM0361)
Contact no: 03218824543
Email id: asadn.butt10@gmail.com
Duties and responsibilities: idea generation, helping with identifying the major sales
goals of the business, deign the overall sales positioning plan by doing a thorough market
research in the respected industry, applying effective sales promotion techniques.
4. Ramsha Ayyub (L1F10BBAM0256)
Contact no: 03444647622
Email id: ramsha_ayyub@live.com
Duties and responsibilities: contributing ideas for the business development, defining
the competitive advantage of the current players in market, doing a thorough competitior
analysis, contributing in designing the sales goals, updating about the latest sales events
by competitors.