Tolani Motwane Institute of

Management

BUSINESS PLAN OF
ICE-CREAM PARLOR
BY: Thacker Hem
1. EXECUTIVE SUMMARY

Ice crem shopwill be a service ice cream shop that brings a warm
environment to everyone. When the weather gets warmer and the
crave for ice cream rises. Ice crem shopis a partnership. It will be
located in the city of Gandhidham, on the Banking circle. Ice crem
shopwill be successful because, who does not love ice cream? Also,
its location has no other ice cream places for miles and the friendly
environment will want its customers to come back for more.
Ice crem shopis selling ice cream. We are providing the product of
ice cream, as well as the service from the employees. Our product is
more appealing than our competitors because the toppings are
unlimited for just Rs. 130. Customers get charged for the size of their
bowls instead of the weight, so whatever they can fit in the bowl will
be the prize plus toppings. Also, customers can make their own ice
cream.
We are seeking money to invest in our company. Ice crem shopis
hoping to have 50% profit in the first years. We will pay back the
investor all of their loan including 6% interest. Ice crem shophopes
to thrive and improve in the next three to five years. We hope to
make 75-85% of our profits and possibly expand.

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 Business description:
RH Ice-cream Palor is Live Ice-cream Shop. Where you find flavour of
your choice in any season. We provide ice cream by maintaining high
standards of quality in a joyful environment. In our shop different type of
ice cream available for different age people.

• Mission statement : “ We provide ice cream to customer off all age

in variety of seasonal ,non seasonal and other flavor”
• vision statement : “ To provide a place with lifetime experience
and rich taste and be market leader”
Goals and Objectives:
1. Gain 50% of Market Share in first year of business in that
particular area.
2. At least 50% initial investment must recover in first six month of
business.
3. Provide healthy ice cream.
4. Provide splendid environment.
5. Provide different flvour according to the requirement of the people.

OWNERSHIP: PARTNERSHIP FIRM

NAME: RH ICECREAM PALOR.
SLOGAN: “GOOD FOR YOU”.
TYPE OF BUSINESS: ICE CREAM MANUFACTURING.

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 3. MARKET ANALYSIS
MARKET OVER VIEW
The Ice-cream parlor market of India is undergoing a lot of innovation and
development in the context of increasing the convenience of people. Use
different types of machines and technology to make the ice-cream.
“Ice-cream earlier was considered as a luxury food product. However, with
changing time taste and preference of consumers changed, which propelled
growth in the India ice cream market over the past few years”. Moreover,
growing demand for natural and traditional flavoured ice cream, coupled
with increasing penetration of international brands, improvement in cold
chain infrastructure and rapid urbanisation are set to drive the India ice
cream market during the forecast period.”
The most popular classic flavours are chocolate, vanilla, strawberry and
mango, while more traditional Indian flavours such and kesar pista and
pista kulfi are also highly popular. But now a day’s people taste was
change. People like more different flavor like banana ice-cream, chocolate
chips, mix fruits etc.

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RELEVANT MARKET SIZE:

The owners are only targeting the metropolitan cities in the initial years
of the launch of the live ice-cream. The target of the owners for selling
the ice-cream in the first year is: 1000 kgs,
Second Year is 1500 kgs
Third Year is 2000 kgs.

So, if we assume that there are 1000 customers interested in eating Ice-
cream in the 1st year across Gujarat and if on an average the customers are
ready to pay Rs 130 for purchasing cup of Ice-cream.

That will be 1000 customers * Rs. 130 (Price) = Rs. 1,30,000

For 2nd year –1500 customers* Rs. 130 (Price) = Rs. 1,95,000

For 3rd Year – 2000 customers* Rs. 130 (Price) = Rs. 2,60,000

The Total cost of Making ice-cream was as under:

The overall manufacturing cost = Rs. 55

+ More toping charges = Rs. 25

+ GST@18% = Rs. 15

Total Cost = Rs. 95

Selling Price = Rs. 130

Profit Available (per Cup) = Rs. 35

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 4. CUSTOMER ANALYSIS:

TARGET CUSTOMERS:
The main target market for ice cream is children, Young and families.
Thirty four percent (est) of such households consume four or more quarts
of ice cream per month, which is significantly higher than the 20% of the
family units without children. Preferences vary according to the age and
gender of the ice cream consumer2. At the moment, the ice cream industry
is driven by children but current demographic data indicates a decline in
the youth population over the next few years. This might push ice cream
retailers and producers to attract a new age group, while trying to retain
their current younger clients. Young children are also more adventurous
in their choices and eat a wider selection if ice cream flavors and frozen
desserts. African American households consume a larger range of products
and also more servings over a 30-day period than the average Indian
household. Teenage girls tend to choose healthier products labeled as low-
fat, mainly among the frozen yogurt products, while teenage boys still
prefer the premium ice cream range. Ice cream preferences normally
cement during the transition towards adulthood, and adults tend to be
faithful to their favorites.
Customer Need:
Now a day’s Customer want healthy and flavored ice-cream. Many
different age group people need different types of ice-cream. According to
their age group make different ice-cream. Also in Gujarat people also look
the taste and quality of the ice-cream.

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 5. COMPETITIVE ANALYSIS:

DIRECT COMPETITORS:

There are no direct competitors in Gujarat as such that fill the same
customer needs that we do however abroad there are few companies such
as Cremestry, Live ice-cream etc.

INDIRECT COMPETITORS:

Amul, Vadilal, Havmore, Maahi, Vimal,etc.

COMPETITVE ADVANTAGE:

Generally regular Ice-cream Made in 40-45 Minutes, but our ice-cream

made in 4-5 minutes. In other types of ice-cream barand some limited
flavour available, but in our ice-cream palour different types of flavour
available. In our RH ice-cream palour according to customer make the ice-
cream.

6. MARKETING PLAN:

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PRICING STRATEGY: The Price strategy is made according to the need
of the people. Our quality was high compare to the other ice-cream parlor.
The price of Ice-cream will be based on Penetration based Price Strategy.

Psychological pricing strategy:

Psychological pricing is the strategy utilized by marketing experts to set a
suitable price for a commodity, making the consumers believe that they
paid for exactly what the item is worth. This generally includes setting
prices like $4.99 instead of $5.0. And prices like 99 instead of 100.This
makes the consumer believe that their commodity isn’t worth $5, but
something within a whole figure of $4 is fine. This happens because the
human consumer brain rounds up the cost to the nearest smaller integer,
making them think of it as $4 instead of $5, while in reality, there isn’t
much of a difference between the two. This heavily influences sales at the
bulk scale.

Selling Strategies

1. Calling a celebrity for sales promotion and sell ice-cream at the day
of popularity.

2. Special package like a combination of different item offered less

than retail selling.

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3. Selling directly in front of school, colleges and universities by
opening small shop covering a huge amount of customers of upper
middle class.

4. Home delivery if any customer purchase certain amount of product.

Distributing Channel:

 Delivery Van

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 Ice-cream Parlor

 Retailer

 Mall

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7. MANAGEMENT TEAMS:

Management Team Members-

There will be mainly Four Departments i.e.:

Finance &Accounts Department
Marketing Department
Customer Service Department
Supply Department
Under Finance & Accounts Department there will be Mr. Hem palan who
will be Finance Head,

 The finance department would be responsible for management of the

organization’s Profit& loss and ensuring there are enough funds
available to meet the day-to-day payments. This area also
encompasses the credit and collections policies for the company’s
customers, there is a payment policy for the company’s suppliers.

 Finance department is responsible for advising and sourcing longer

term financing. Financing here is obtained through bank.

 Finance department will work with other departments to prepare the

company’s budgets and forecasts, and to report back on the progress
against these throughout the year.

MARKETING DEPARTMENT the activities would include demand

forecast for deciding the Distribution strategy. Mr. Reman thacker would
be the Marketing head. The other roles he needs to perform are as follows:

 Marketing department will create the materials that describe and

promote your core products and/or services, and keep them up-to-
date as those products and services evolve.
 Monitoring and managing social media.
 The Department will Create content providing search engine
optimization for your website.
 Conducting customer and market research.
 Conducting customer and market research.

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CUSTOMER SERVICE DEPARTMENT would have Mr. Reman
Thacker,
 He will also conduct personalized Customer Satisfaction Surveys
and Feedbacks.
 He will handle the any problem regarding ice-cream flavoured
and providing service.
SUPPLY DEPARTMENT would have Mr. Hem Palan,
 He will handle all the home delivery order according to need of
customers.
 He will also available in online software and give the ice-cream
order in online.
 He will Manage also stock Inventory and maintain the EOQ,
minimum level and maximum level of order.

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OPERATION PLAN
GENERAL APPROACH TO OPERATIONS
Our business will focus on all age group. We have to see “back stage” or
behind the scenes activities and “front stage”, what the customer can see
and experience.
Back stage:
- Operation manuals
- Relationship with suppliers
- Relation with city government
- Development of marketing materials
- Emergency plan
Front stage:
- Operation hour
- Products
- Staff assistance
- Promotions
- Workshops
The planning process, improve promotional planning, minimize
unnecessary build-ups of inventory and increase revenue and budget
forecasting.

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8. Financial Plans
Revenue: Revenue is generated by selling the Ice-cream
Financial Highlights
Revenues: - This includes the income from selling the Ice-cream and less
GST, gives the net sales. The revenue is explained as under:
Particulars 2017-18 2018-19 2019-20
Gross Sales 1,30,000 1,95,000 2,60,000
Less: GST@18% 23,400 35,100 46,800
Net Sales 1,06,600 1,59,900 2,13,200

Key Expenses: - The Key expenses are shown as under:-

Expenditure: 2017-18 2018-19 2019-20
Raw material Consumed 35,000 52500 70,000
Power and Fuel Cost 5000 7500 10,000
Employee Cost 3000 4500 6000
other manufacturing expenses 2000 3000 4000
General and Administrative 5000 7500 10,000
Expenses
Selling and Distribution Expenses 5000 7500 10,000
Total Expenditure 55000 82500 1,10,000

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 Particulars 2017-18 2018-19 2019-20
Net Sales 1,06,600 1,59,900 2,13,200
Expenditure:
Raw material Consumed 35,000 52500 70,000
Power and Fuel Cost 5000 7500 10,000
Employee Cost 3000 4500 6000
other manufacturing expenses 2000 3000 4000
General and Administrative 5000 7500 10,000
Expenses
Selling and Distribution 5000 7500 10,000
Expenses
Total Expenditure 55000 82500 1,10,000
Other Income 10000 12000
Operating Profit 56600 87400 115200
Interest 6600 7400 8200
PBDT 50000 80000 107000
Depreciation 20000 20000 20000
Profit before Tax 30000 60000 87000
Tax - - -
PAT 30000 60000 87000

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Particulars 2017-18 2018-19 2019-20
Equity and liability
Owners capital 1000000 1200000 1200000

Total Reserves

Long term borrowings

Secured Loans 500000 500000 500000
Unsecured Loans - 100000 -
Current Liability
Trade Payable 100000 120000 150000
other current liability
short term borrowings - 50000 50000
short term provision 50000 75000 75000
Total Current Liability 150000 245000 275000
Total Liability 1800000 2045000 1975000
Assets
Non-Current Assets
Asset 1000000 1015000 1015000
Less:Accumulated Depreciation 20000 20000 20000
Net Asset 980000 995000 995000
Non Current Investment
Long term loans & advances 200000 200000 400000
Total Non-current Assets
Current Assets loans & 100000 100000 100000
advances
Current Investments -
Inventories 200000 300000 230000
Sundry Debtors - -
Cash and bank 320000 450000 250000
Total Assets 1800000 2045000 1975000

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