Business Plan on Replacing fast foods by 'Bangladehsi Pithas'
Our business name – AHAR
Course Name – Marketing Management Course No. - BA-2211

Prepared forSharif Mohammad Khan Assistant Professor

Prepared byName Abdur Rakib Akon Reza Al Saad Md. Masrul Mollah Md. Nazmul Huda 2nd Year, 2nd Term BBA Program ID 070305 070312 070314 070323

Date of Submission: January 26, 2008

Business Administration Discipline Khulna University

Masrul Mollah Reza Al Saad Date of publication: January 26.Businesses Plan of 'Ahar' Owners: Abdur Rakib Akon Md. Nazmul Huda Md. 2008 .

1 Business Information 2. Market Situation Analysis 3.4 Our Threats 4.4 Threats of buyers growing bargaining power 4. Executive Summary 2.2 Threat of new entrants 4.2 Our Operational Activities 2.3 Our Opportunities 3.2 Our weaknesses 3.5 Threats of suppliers growing bargaining power 5.3 The Market we will serve 2.1 Our Strengths 3.4 The Industry 2. Business Summary 2.5 Benefits will be added by us 3.4 Marketing & Promotion 6.5 Research & Development 7. Management 7. Competitiveness Analysis 4.1 Management Body Page 1 2 2 2 3 3 3 4 4 4 5 5 6 6 6 7 7 7 8 9 9 9 10 10 11 12 12 .2 Supply Chain 6. Mission Statements 6.3 Threat of substitute product 4.1 Competitive rivalry within an industry 4.3 Human Resource 6.1 Product Lines 6. Business Action Plans 6.Index Topic 1.

7.1 Expenditures 8. Exit Strategy 10. Financial Forecasting 8.2 Investments & Revenues 9.2 Management Structure 8. Appendix References 13 14 14 15 16 17 18 .

1 . Our objective is to provide a better quality food habit and to move people from junk tastes to a healthy taste. We think there is a huge field to make a market of this type of foods in our country. We have determined our break even point within one year. And we projected our revenue will be double up within five years if we can work in our way. types of our Bangladeshi fast foods. And we also have defined our competitors strategies so that we can compete with them. We named this business supporting our Bangladeshi perspective and we think this will be a perfect name for this type of product. We want to see that people doesn't fear about heart diseases and diabetics type sufferings. But because of these junk foods we are forgetting our own foods pithas. We have calculated in which year we will have our revenue in what amount. We have created a great opportunity for investors who seeks new innovative business ideas and plans. We have analyzed our SWOT and defined in which way we will do our business. singaras. We are planning to reach our break even point within one year from our launch and to earn a double revenue within three years. We have determined some factors that will help us generate some revnues from the beginning of this business launch. Our idea is to serve various type of pithas that will make people move to our Bangladeshi foods especially to misti pitha and jhal pithas.1. samichas etc. Executive Summary Fast foods are very much popular all over the world because of less time consuming and more taste. So with this initiative we came forward to make a business plan to replace the ongoing fast foods by our Bangladeshi pithas. We have named our business 'Ahar'. It is is also favorite among the people of our country.

We also included a price menu in our detailed section. Because mosr of the pithas are made from rice or flours and other natural resources those come directly from nature. Chittagong : +8801714117014.1 Business Information Business Name Business Location/s Contact Owner/s Contact Person : Ahar : Dhaka. Nazmul Huda.2 Our Operational Activities We will firstly start our operations from 3 regions of Bangladesh – Dhaka. .com : Partnership Business : Bangladeshi Pitha Shop : To replace fast foods by pithas Md.123 Road No.com Business Structure Business Concept Mission Statement 2. . So our promotional programs will only say one message – 'eat better. Masrul Mollah. +880191989559 Business Summary : Abdur Rakib Akon. We have a wish to make this business in corporate environment if it runs well. 2 . We think people will move their tastes from junk fast foods to healthy and less cholesterol containing deshi pithas.2. And if we need any financial support we will consider to take loans from bank/s but now we think we are in a flexible position to run this business from financial point of view. We will mainly serve three main types of products. If we can earn a satisfactory amount of money we wish we will also launch our operations in Sylhet and Comilla. We already said that we want to make a share of fast food market. Nazmul Huda Senior Executive Officer Holding No.17 Nirala Residential Area Khulna – 9100 Bangladesh Phone: +880191989559 E-mail: decentrambo@yahoo. 2. Our main concerns will be Sweet Pithas and Chilly Pithas. As far we have collected more than 45 million among us to launch this business. Md. Khulna. Our financial support will be maintained by us. Reza Al Saad Abdur Rakib Akon Chief Executive Officer Holding No. live longer'. .128 West Tootpara Main Road Khulna – 9100 Bangladesh Phone: +8801714117014 E-mail: aoni_k@accamail. Khulna and Chittagong. But we will also serve some Spicy pithas and Deshi Fluid items. Md.

But we are adding a new product line into this industry. Our business will certainly create some opportunities for employment. But we will serve low cholesterol foods. revenue. Now a days many diversified services in fast food industry is being added regularly.3 The market we will serve We have the uniqueness from the side we are launching the products those were inbound to home but we are releasing those items as professional business products. we think at the first step we will not have to face so much complications to catch maturity stage of our products. We have a responsibility to our society. type of people will be attracted to our product lines we believe. There are some businesses with this type product but they doesn't have such type of objectives or goals like a professional business planning. We could define some of our competitor sector which we will have to compete with. But among the fast food industry there is also a gap to pull through.4 The industry Fast food and restaurant industry is a very competitive area in the perspective of Bangladesh. On that area we will have to compete with other businesses. 2. Inspiring by this we have thought about this new and productive business. Our main strength is that there is not so bigger competitor from the view of pitha business. Because normally conventional fast foods are very costly that cannot be affordable by those people. And we think we are financially strong to run such type of business in this market. So. And also some other type of restaurants those serves middle and lower class people will be in our concern. employees.5 Benefits will be added by us We think we are not here to do business for us. Taxes will be a adding to our govt. So we think we can easily go to a top position in the fast food market. We must try to attract the customers those go for fast foods regularly. daters. And students. Conventional Italian and American fast food shops will be our main competitors. this is one of our advantages. As we have a long term sustainability we think we will be able to make more people added to our business that will work as a social well-being. So. 3 . But there is a area where people searches fast foods. we are confident that we will capture one type of monopolistic market from pitha business. And we are also launching with diversified product lines. but there is a group those don't go for fast food regularly or never go there for health safety from junks. etc. And there is a group of people of lower middle class and lower class people as a potential customer segment for us. 2.2. So. But our items will be so lower cost bearing so that everybody can get chance to have a taste of our food items.

And they haven't enough time and skill to make it.1 Our Strengths: We are going to deal with the seasonal Bangladeshi food. Which is in our language known as 'Pitha'. As we know customers are always price sensitive. We have pitha in winter season. But those ingredients will not be available in that time. 3. Our conventional seasonal foods are always very much popular among the people. No bowl or spoon is not mandatory. That shows that people are always fond of having those seasonal pithas but they have not the proper source. We will also add some innovative features in our conventional seasonal pithas those will certainly serve the customers with different tastes those they were always looking for. beef.3. In seasonal pithas normally we use ingredients which are achievable from our environment. All those facilities we will provide in Bangladeshi seasonal food Ahar. 3. mutton. sugar. Because in fast food most of the cases we need to use chicken. And also specialized skill is needed for making these foods. flour. For measuring the potentiality and the risk of a new business we need to make the proper use SWOT analysis test. In comparison to the ingredients used in case of the fast food. Because we are offering food of diversified taste with a cheap price. By this test we can evaluate the strength. Why people prefer fast food? Because it is ready made. Those pithas which are available in winter cannot be made in summer. cheese etc. Such as most of the pithas are made of paddy. butter. The main advantages of our plan can be categorized in two ways. We cannot provide our best effort through the whole year. Traditionally we have many seasonal pitha. cow milk which are not only healthy but also very cheap. coconut. Market Situation Analysis Every business has its own features on which the chances to be successful depends. which are very costly and causes harm to our health. Because those are not easily found and cannot be made easily. But now a days usually they do not take those foods. we have pitha in summer and also in spring. weakness.2 Our Weaknesses: In this business we cannot identify lots of weakness. high blood pressure and heart diseases. One is cost and another is health consciousness. As a result we can make those pithas for them and present them in a favorable place that will be certainly popular among the people. Because those ingredients are liable for the increasing rate of diabetics. 4 . But we have found a few such as – those seasonal foods are available for a specific time in a year. it is dry and for eating those foods huge arrangements is not needed. We are starting with the strength of our plan. opportunity and threat. so we have a huge chance to gather the big portion of the market within a short period of time. Those food are also very much healthy.

3. Middle class and lower class people usually take food from restaurants. but the sources are not very healthy. money.4 Our Threats: We are going to enter into a highly competitive segment of food market. So people will get more attraction to these pithas. They have not any brand name in this field.3 Our Opportunities: We have huge opportunities in this business. We have to get those things from rural or sub-rural areas. which name can assure them about the standard and the nutrition of the food. Restaurants are dealing with the customers with limited earning. So ' Ahar' is going to be the brand name of our seasonal pitha. pastry shops and a bit from restaurants. Because in our seasonal food there is lack of chilly foods. So a big portion of our target market is engaged there. people.Another weakness is that s our ingredients come from natural resources those are not available in urban areas. but they have no substitute product to take. So in this case we need to be a little bit innovative. Bakeries and pastry shops are producing and serving some food items that made the need of the customer whom we have targeted. 5 . And pithas aren't junk. Our other threat can come from from bakeries. So all those things are proved to be the threat for that new business. Ahar is going to be that replacement. For this we need to have strong chain of suppliers. So huge time. 3. Because our people are very fond of those conventional food items. They already have diversified product line and also they are capturing the major portion of the market. so many of them are trying to leave those fast food with high cholesterol. Sometimes they get those pithas. Our major competitors will be the fast food shops. and efforts are needed to gain their market share. Nowadays people are much more health conscious. Diversity of taste can be weakness in a sense. We will have to face a lot of threats. but those are not available ready made. But for maintaining those suppliers and also because of the distance we have to spend a lot that will certainly minimize the profit.

Domino's pizza. as a result in that sense it is an 6 . So it is appropriate business to enter. Sizzle etc. 4. So we have always risk of those new entrants. For this business entry barrier is not very high. KFC. Figure: Michael Porter's Five Factor Model to measure competitiveness 4. It is the renowned process all over the world to evaluate the appropriateness to enter into a business. In this model there are five forces.Pizza Hut. Competitiveness Analysis We have analyzed the current market situation by the five factor model of Michael Porter. Such as.4.1 Competitive rivalry within an industry: Within this market we have some strong existing competitors.2 Threat of new entrants: Threats of new entrants for a business is always true. Exit barrier is also low. so certainly it is an attractive segment of market to choose. But as we are going to start with the conventional local food we don't have such type of competitor. It is a stable business because it is related with appetite. By those forces we have identified the competitiveness of the target market.

4. Our product would be cheaper than the fast food items. But as those are not our real substitute product. it is certainly an attractive market. We will collect specific ingredients from specific places.4 Threats of buyers growing bargaining power: Our buyers would not bargain with the price because we are offering very low price. but if we can build our's as a brand name and gain the major portion of the market share we will certainly be able to avoid the threat of the new entrants. in this field we don't have real substitute products. Sweet industry such as our 'Dairy industry' can be substitute product. It is also avoidable because the switching cost of our product would be much more higher.unattractive segment. 4. 7 . In food business new entrants are always available.3 Threat of substitute product: We are going to compete with fast food. 4. As a result our suppliers are widened through the whole country. So low bargaining power of the suppliers make the target market so much attractive. We are a food item with a specific taste. As we are starting from a low price it would certainly fulfill the customer demand.5 Threats of suppliers growing bargaining power: We are going to launch a new trend of the food business. because customers are always price sensitive. We emphasize on collecting raw materials from diversified areas. So the suppliers of that field are not so much concentrated and organized.

Our goal is a little bit economical. Our objective is to capture the market share and replace a great portion of conventional fast food items by serving Bangladeshi pithas. Our visionary view of this business is that we don't want to see any body's panic because of bad food habit. Mission Statement Our business plan is created through some motives. Economic Mission . Here we tried to explain our missions and objectives. We are forwarding to reach our break even point within one year and if we can manage to double up our revenue within 3 years we have a plan to extend our business. 8 .5. Community Mission – Providing a community service through serving dehsi cultures and tastes. We want to make people having a good habit in eating. Product Mission – To serve better quality and taste of home through a variety of pithas.Operate and grow at a profitable rate through sound economic decisions.

One sample menu we have included in the appendix menu.2 Supply Chain: We should build a strong chain of suppliers who can supply us the ingredients we need to make those seasonal pithas. 6. Because those ingredients are not available in the urban areas. Business Action Plan Here we have come to our business actions plans by which we will fulfill our objectives. 3. The pithas are sweet will be included under this line. As our ingredients are very much natural we have to depend a lot on the rural areas.6. Mujib Biswas from Noapara will supply us flour from his flour mill. 9 . Chilly Pithas: We will also some chilly pithas and dry pithas like Chitai Pitha. i. Those products are highly perishable. etc. school. juices made by deshi reciepies etc. We have prepared some segments those will make our works maintained and simplified. 4. We will have our own menu items. We have arranged some people fixed who have contracts with us to supply our materials. 2. So transportation facilities and timely distribution of those item should be ensured. Our services will include: 1. That's why skilled suppliers are needed. 3. 4. But at first we should be clear about our services. Four types of product lines including pithas Chain van shop for lower class people. 1. Pan Pitha etc type of pithas will be included under this category instead of 'sweet pithas'. We have interpreted some department where different group of people will work. Pati-Shapta Pitha. Spicy Pithas: Fried pithas like Vaja Pooli Pitha. Here is given a list1. college. e. Jhal Pooli Pitha etc. 2. So for the availability of the ingredients we must have a strong and skilled line of suppliers. .1 Product Lines: We have defined four product lines for our business. universities etc.Vapa Pitha. Deshi Fluids: We will arrange some drink items besides our pithas like coconut water. Restaurant services Home delivery services Then we can go through our main plan. will be included under this product line. Ras Chitai Pitha etc. 6. Sweet Pithas: This product line will include most of our items.

We haven't determined which others will serve other different materials but we think we will manage them within a very short time. 6. We will get paddy supply from 'Sukendra Samabay Firm' from Rajshahi. 1.3 Human Resource: As we can't imagine a business without materials or inventories. 1. Discount Leaflet: We will provide discount leaflets at the beginning stage of our business. Such as10 . Sponsorship Discount: We will provide discounts on the tickets of various events. Delivery boy: For home delivery services we will need some delivery boys. 7. 3. So we also made our human resource department to find out some right persons for our business. 5. 2. 4. But we must employ creative and innovative cooks. Food Sponsorship: We will sponsor various national and at a later stage also international events which work as advertisement of our business. Rahima Begum from Naoga will supply us milk from her own firm – 'Adarsha Dairy Firm' 3. Media Coverage: We will cover medias like newspapers. we can't imagine it without human resource. 8. Festival Discount: We will give special discounts in some special festivals. TV medias. SMS Service: We will advertise our business through promotional SMSs by collaborating with the mobile operators.2. With more of this we will have some regular customer packages for some special segments. We have two trucks of our friends for transportation in hire. Poster: Poster works will be limited but it will also work as our advertisement in some special events. 4. Mizan Gazi from Bagerhat will supply us date juice in winter season. 4.4 Marketing & Promotion: Marketing and promotion department is a vital part of any business organization. 3. and radio medias to advertise ourselves. 6. Waiter: We have to employ waiters and waitresses for our restaurant service. Like in some special events we will make posters. Cook: We will find out some cooks through maybe some local competition or cook hunt. 2. 6. Health Conscious Advertisement: We will promote our products as those are healthier than any other fast foods. We will have some followings programs to promote our service. Street seller: We will need some street sellers who will sell our food items from our chain van shops.

2. we are very much conscious about the nutrition of our foods.5 Research & Development: We will have a research & development department. Because innovation creates some extra images and people are fond of something new. As we are concerned with our customers' well being. new ways of serving foods. And this will be a plus point for our business. Test of Healthiness: We will make comparison the healthiness of all foods will be under our service. 2. If it is not changed in from or any other presentation the product cannot stay in the market. So. A discount Package for newly married couples (marriage not before 6 months) Discount card for regular and loyal customers Special Packages for students Special arrangements on special events like Eid. or new type of food which can make a run in parallel to our products. we have a plan to do these followings under this department. New Recipes: We will search for new recipes. 1. 11 . or Christmas 6. 4. 3. We have included this because every product runs for a fixed amount of time. 3.1. Because the more healthy food we will serve people will get more interested with our items. So we will arrange some recipe contest or new food idea hunt type program to make this in a chain. to make our products surviving for a long period. Nutrition Test: R&D will setup a nutrition test facility to maintain and observe the nutritious power of our foods.

Nazmul Huda Assistant Executive Officer Reza Al Saad Shamatha Islam Dhaka Branch Officer Ahmed Ibtehaj Khulna Branch Officer Md.7. Marketing & Promotion Md. And we have a flat structure management of business organization. Saiful Islam Head. Human Resource Reza Al Saad Head. Management Without a proper management system a business cannot be run well. Research & Development Abdur Rakib Akon 12 .1 Management Body Chief Executive Officer (CEO) Abdur Rakib Akon Senior Executive Officer Md. Product Control & Management Arifuzzaman Khan Head. 7. So we are very much concerned about our management body of our business. Masrul Mollah Chittagong Branch Officer Hasan Md. Nazmul Huda Mohua Rashid Head. Supply Chain Management Safwan Ahmed Head.

13 .2 Management Structure Our Management structure will be flat. But if we plan to go for making our business corporate. Masrul Mollah Legal Advisors' committee Advocate Salahuddin Yusuf Advocate Sharmin Sultana Waliur Rahman (Magistrate) 7.Accounts officer Md. we will have concerns about our management and we will re-organize our management body. And thus we are not in a complicated form of business we think this will be enough for a business to make a first run. All of the activities will be observed and monitored by the executive officers' panel.

First we have shown our expenses and then we tried to show how our projected revenue will generate. 8. Financial Forecasting Here we have prepared our forecasting of our business for our business.1 Expenditures One time expenses Three Buildings Contract cost for five years costs: Business License Fee: Two Trucks Contracted for five years: Furnitures and Decorations Motor Vans (30) Other setup charges VAT Total Depreciation costs for every year within a five year period: Years Depreciations 1st Year 1081194 2nd Year 864955 3rd Year 691964 4th Year 553572 5th Year 2214285 Tk. 800000 45000 75000 155000 3500610 125240 705120 5405970 12 months expenditure throughout the year Expenses Rental Administrative Vans & Trucks Salaries Depreciations Materials Others Total 1st Year 144000 500500 614400 670000 1081194 556000 412000 3978094 2nd Year 144000 618000 612370 678000 864955 568500 423000 3908825 3rd Year 144000 523000 643050 682000 691964 582300 448000 3714314 4th Year 144000 541000 655090 689000 553572 589400 453000 3625062 5th Year 144000 603000 656050 710000 2214285 597600 456000 5380935 14 .8.

12500000 10900000 9730000 13155000 Tk.2 Investments & Revenues Our Investors total contributed: Abdur Rakib Akon Reza Al Saad Md. And this is a positive sigh that we will have been reached at the break even point within 1st year. 46285000 Revenue Calculation 1st Year Expenses Projected revenue Balance 3978094 3987000 8906 2nd Year 3908825 5020500 1111675 3rd Year 3714314 7343000 3628686 4th Year 3625062 9786000 6160938 5th Year 5380935 10105000 4724065 From above we can see that we will enjoy the most incomings in the 4th year after launch. Nazmul Huda Total Tk. Masrul Mollah Md.8. 15 .

If law enforces us to do so 3. If our partnership breaks up 4. Though there is a low possibility but if one of the following scenarios happens we will close our business1. If any bankruptcy happens to us 2. If we become unable to run business 16 . Exit Strategy If some of misconducts or any breakup among our partnership comes may be we can dismiss our business.9.

so a hypothetical and short form of price menu is given here) Items Sweet Pithas Vapa Pitha Patishapta Pitha Semai pitha cooked by gur (per plate) Takti Pitha Pooli Pitha Nakshi Fula Ras Chitai Dudh Chitai Chilly Pithas Jhal Pooli Dim Makhan Jali Pitha Jhal Takti Spicy Pithas Vaja Pooli Vaja Patishapta Shukna Chitai Shukna Chitai with chicken Pan Pitha Fluid Items Coconut Water Bel Sharbat Lebu Sharbat 5/= 8/= 5/= 12/= 15/= 8/= 30/= 5/= 10/= 12/= 8/= 5/= 15/= 12/= 15/= 5/= 10/= 20/= 18/= 15/= Price (Tk.) 17 . Sample Price Menu Appensix (As we haven't decided our products.10.

com/2007/10/porter-5-forces-how-they-work-3. however it is' and 'Restaurant Business Plan submitted by Abonda' can be downloaded from http://www.html 18 .blogspot.scribd.References We have followed some guidelines from 'Writing your business plan is a lot of hard work.com Porter's five factor's model picture is taken from http://foodandretail.

com. aoni_k@yahoo. +8801714117014 .Copyright © 2009 Explorer.

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