Professional Documents
Culture Documents
Work
Semester-
II
A Project Report on
Sep-2015
Prepared By
“Nirav K. Oza” Enrollment No: 4243850
Shambhu’s Coffee Bar is not only popular for its rich quality coffee and other delicacies
but also for its value for money offerings. It offers the best quality of products at economy
rates. Their commitment to quality is reflected in a unique operational style that is hands-
on and dedicated to best preparation practices – a formula which has resulted in the
Shambhu’s Coffee Bar growing from strength to strength.
Shambhu’s coffee bar has many franchisee in Gujarat and like in Ahmedabad ,vadodara
,surat etc. and now its being also famous in their country region like in Mumbai ,Rajsthan
etc.
Goal: Nowadays Shambhu’s Coffee Bar wants to enter in international market and
grow their Geocentric business but now they have plan to start business in Canadian
market .
Milestone : 1
With franchising model, the Shambhu’s business can expand at a rapid rate. Brand
Recognition is spread when franchisee set up the store in a new location. The franchise is
operated by highly motivated entrepreneur who has the knowledge of local culture as well as
customer needs and wants. Huge amount of investment is needed if they want for opening
and operating on their own. Therefore, the risk of failure for opening the branch in another
country is minimized. Furthermore, the franchisor receives the initial and royalty fee which
can be used as a capital to support and strengthen its business operation. The franchisee is
probably motivated to perform the business at highest level because they invest in the
business.
For franchisor
Even if there are lots of benefits, several drawbacks are also emerged. With the
limited control, the quality of franchisee might not be met which, in turn, can damages the
reputation of franchise. Among of all disadvantages, the greatest concern is contributed to the
possibility of franchisee turning into a competitor. When the technology and know-how is
given to the franchisee, they might cancel the contract and operating on their own to earn
higher profit.
For franchisee
The franchisee is bounded to the legal contract and agreement with the franchisor.
They must follow the standard and procedure from the head quarter. Thus, there is a lack of
independence in operating the business. The cost of owning a franchise might be higher than
expect. The initial setup cost, royalty fee, and some portion of the profits must be provided to
the franchisor. This may cause the franchisee to feel lack of motivation to continue the
business.
Milestone 2:
Face-to-face interviewing:-
- Better explanations
- Depth
- Greater accuracy
- Product placements
Telephone interviews
Self-completion interviews
The factor that influences the response rate of a postal survey more than anything else is the
interest that respondents have in the subject.
Online surveys
Milestone 3:
This information we could get from their government’s health site and other genuine
websites and from a long survey.
Eat at least one dark green and one orange vegetable each day.
o Go for dark green vegetables such as broccoli, romaine lettuce, and spinach.
o Go for orange vegetables such as carrots, sweet potatoes, and winter squash.
Enjoy vegetables and fruit prepared with little or no added fat, sugar or salt.
Grain Products
Make at least half of your grain products whole grain each day.
o Eat a variety of whole grains such as barley, brown rice, oats, quinoa and wild
rice.
o Enjoy the true taste of grain products. When adding sauces or spreads, use
small amounts.
o Compare the Nutrition Facts table on yogurts or cheeses to make wise choices.
Eat at least two Food Guide Servings of fish each week. *Health Canada
provides advice for limiting exposure to mercury from certain types of fish.
o Choose fish such as char, herring, mackerel, salmon, sardines and trout.
Select lean meat and alternatives prepared with little or no added fat or salt.
o Trim the visible fat from meats. Remove the skin from poultry.
o Use cooking methods such as roasting, baking or poaching that require little or
no added fat.
1. Analysis
here is presidential election every 10 years in Canada, and the candidate that has been
chosen for the first period of 10 years can only be elected for the next 10 years. It means the
maximum period to be the president of Canada for one person is only 10 years. The elected
President of Canada will be given a task to create and build His or Her own governmental
cabinet.
In terms of legal factor, Canada is a country with plenty labor forces. In order to
protect their labor rights, the Canadian government has set-up a law which is called Labor
Laws Article. In this law it is stated that there is 8-hour work days and 40-hour workweeks,
with 30-minutes rest period for each 3 hours of work is legal in Canada). Another policy is
that there must be at least two day of rest weekly in Canada. Canada has also signed the
Memorandum of Understanding with the International Labor organization under the
International Program for the Elimination of Child Labor (IPEC), it is stated there that the
minimum working age is 14 years (Labor & Social Protection, 2009).
2.1.4 Analysis
Given the situation in which there is one election every 5 years and the maximum
period of an Canadian President is 10 years, and also the cabinet is created by the president,
which most probably will support the President without any major opposition activities in the
cabinet. It will give Canada more stable political environment as long as the President show
the charisma and do the right job that He or She has to do. So,political stability will give
higher opportunity in terms of investment to grow inside the country. When the investment is
growing, businesses are spread out through the whole country which eventually reduce the
number of unemployment and make better society in terms of welfare.
2.2.1 Factors
Canada is a developing country with plenty natural resources spread out throughout
the country. In recent years, Canada has actually made tremendous progress in terms of the
development of the economical factors on the country itself. Moreover, Canada also has a
good and strong agricultural sector; it is supported by the very fertile soil because there are a
lot of active and passive volcanoes. The agricultural sector is also supported by the climate of
Canada which is a tropical climate with high level of humidity and also high level of rainfall.
2.2.3 Analysis
With huge agricultural sectors, Canada is a good market for Shambhu. Raw materials
that Shambhu needs are actually vegetables, meat which all come from agricultural sector. If
Canada provides a lot of supply in this case is those product come from agricultural area, the
possibility of having cheaper price of those kind of raw materials will be bigger compared to
those country who are not as huge as Canada in agricultural sector.
Increase in import indicates the increase in demand from the market. When demand is
increasing it means the people on that market are willing to give out their money to buy
certain things they want. From there we can draw a line that the disposable income of those
people in that market is also increasing. This is a good situation for Shambhu because
Shambhu is considered as new restaurant in Canada. With the increase in the willingness to
try something new the chance for Shambhu to get new customers will be much higher.
2.3.1 Factors
Social factor is defined as an aspect in which cultural aspects and social phenomenon
are taken into account, for example population’s health consciousness, population growth
rate, and age distribution. For instance, in a mature society where most of the population did
not belong to the working age group anymore, it will affect the labor cost because the supply
and demand is not balance, the supply is less than the demand so in order to get the workers,
companies need to pay more.
However, there is one thing that could be a challenge for Shambhu especially which is
most of Canadian are considering meat as their main meal. It means, whenever they eat, they
will always eat with meat.
2.3.3 Analysis
It’s a challenge for Shambhu to open up stores in the market situated like this. The
reason is one of Shambhu’s signature menus vegetables. So in order to suit with the market
demand, Shambhu has to change and adapt based on the customers. For instance, those meals
which are containing only vegetables actually can be changed by Shambhu with the usage of
beef or chicken instead of using only vegetables.
One big opportunity for Shambhu is that with the low level of life expectancy,
Shambhu can actually focus in advertising regarding to the health issue. For example,
Shambhu can create one advertisement that shows most of Canadian conscious about their
health, and then shows that Shambhu provides a fresh and healthy food with very good taste
on it.
2.4.3 Analysis
2.5.1 Factors
2.5.3 Analysis
With all the data the natural disaster data that are given above, it has indirect impact
on the continuity of Shambhu business. For example, Winter atmosphere of Canada , it has
also distract every business in those affected area. Therefore in order to avoid those impact,
Shambhu need to open some stores in some different areas, in order to maintain the
continuity of the business and the existence of the business in Canada. For example ,Ontario
province where almost cities are well developed and temperature are low equal to other
province.
Below table explain the by a survey some factors which can affect to Shambhu.
As an case study of SUBWAY and as before survey of Shambhu it can prove that a
franchisee also can be successful in Canada
Case study:Subway
Eric Heinrich decided several years ago to abandon the bright lights of Toronto, where he was
employed by a national hotel chain, and go into business for himself—ideally in a smaller
community where he felt more comfortable and the cost of living was cheaper. He bought his
first Subway franchise in 1994 in Hanover, Ont., a community of about 7,000. He has since
added a dozen or so more of the popular submarine sandwich restaurants around the
province, focusing on similarly small towns where there is little competition from rival fast-
food chains. That now includes locations in Wiarton (with 2,300 residents, not including a
famous winter-predicting groundhog named Willie), Kincardine, Wingham, Arthur, Port
Elgin, Walkerton, Clinton, Exeter, Palmerston and three stores in his hometown of Owen
Sound, a relative metropolis with a population of 22,000.
As a result, Subway franchisees like Heinrich are able to scratch out a living in towns and
hamlets that would otherwise be considered too small to sustain a McDonald’s or Burger
King, but are starved for the experience of a big chain restaurant. In some ways, it’s the
perfect franchise recipe for a large and sparsely populated country like Canada, and is among
the reasons Subway, which generated US$13.8 billion in global sales last year, is poised to
overtake industry icon McDonald’s when it comes to global locations in the next few months
(Subway already has more restaurants than McDonald’s in North America, although it still
trails Tim Hortons in Canada).
Milestone : 5
Financials:
Startup expenses:
To start the Canadian diamonds business in Canada, the startup capital would be $10 million
CAD. The following are the assumptions for the Canadian diamonds business in Canada
The Canadian company, at the end of the first year estimated sales would be $1.35 million per
a store. The prices below is all in Canadian dollars (CAD)
Milestone :6
Marketing Strategy
Marketing strategies reflects the company’s best opinion as to how it can most
profitably apply its skills and resources to the market place. It is invertible broad in
scope. “Marketing strategies are the means by which a company achieves its marketing
objectives and are usually concerned with the four “P” s.
The Shambhu example represents marketing and product strategies that are classic
examples of focusing on market demand, consumer trends, product leveraging, and
innovation. The marketing strategies of creating clear brand recognition, brand and
product association, and market demands, have strategically positioned Shambhu to
advance market share into the near future. These marketing strategies are also
repeatable fundamental marketing strategies transcending the fast food market.
The Shambhu Franchisee Advertising Fund Trust will governs advertising. This
functions independently of Doctor’s Associates Inc., which is the franchisor of the
SHAMBHU business franchise concept, and its affiliates that trust manages funds
contributed by SHAMBHU franchisees. It was established to create advertising and
marketing programs that are designed to build restaurant sales and promote the
system’s image.
SHAMBHU has a customer care team, dedicated specialists who are in constant
communication with consumers same way they can plan as global prospective.
Success factors for fast food franchisees will include products and marketing
targeted to healthier menu selections, brand consistency, low start-up costs,
franchisee support, and consumer convenience. Shambhu represents a
poignant example of a fast food franchisee ready for success in the future fast
food market. Their strategies transcend the fast food market and apply to
many other markets and products
Branded fast food continuing to move into other nontraditional venues such as colleges,
airports, military bases, hospitals, and amusement centers. Part of their marketing
strategy, Shambhu includes identifying which venues and retail chains would be most
amenable to quick-service brands.
Target Markets
The process of breaking down the total market for a product or services into
distinct sub groups or segments , where each segment might represent a distinct target
market to be reached with a distinctive marketing mix.“ A market segment consists of a
group of customers or consumers who share the same or similar needs”
Segmentation Methods
1. Demographics (Age, Life cycle , Gender , Income , Occupation, Religion ,
Education , Race ,Nationality )
2. Geographic ( Location , Regional , Urban , Density , Climate )
3. Psychographic (Social class , Life style , Personality )
4. Behavioral (Occasions , Benefit sought , User stages , Usage rate , Loyalty
status )
SHAMBHU Segmentations
Halal sandwiches
Market Development
This strategy involves finding new markets for the products a firm already makes.
SHAMBHU can develope a team specifying for market development. New Business
Development This team works closely with potential franchisees who wish to open a
SHAMBHU restaurant in non-traditional locations--such as in a supermarket, movie
theatre or gas station
Shambhu restaurant sites are adaptable to any type of location. The simplicity of the
Shambhu Restaurant operation and the ability to fit into spaces that competitors
cannot enables them to open restaurants in many unusual and non-traditional sites,
such as:
Airports
amusement parks
business centers
convenience stores
convention centers
hospitals
military bases
recreational facilities
supermarkets
Milestone 7:
We believe to start scope management and planning from making a WBS – Create the
project's WBS.
- Promotion:
The promotion method to be used for our services would be the use of Discount coupons and
prospect of winning prize by giving a unique number on Shambhu’s bill when customer buy
something and advertisement through various medium, television, and internet. The
company will be in attendance in different trade shows to display our products
We will have also plan to give mobile truck which can deliver food to industries as Canada
has many factories and industry whenever they will have lunch break there will be a mobile
truck from which Canadian can buy sandwiches and shakes and coffee.
Pricing:
We would be using the penetration pricing strategy to enter the market this is because
Canadian already have a well known brand a, they are widely known for their reputation(e.g.
Subway,Mc. Donald , Pizza Pizza etc). As mentioned earlier we estimated $5million CAD for
the start-up capital in order to meet up with certain standards
In order for our company to gain initial recognition in our target market at some point we will
have to work with flexible prices for our partners, and to enter in a market and eliminate other
competitors
Time :
To compete others and to make it renown in Canada we have to make a time schedule where
every goal should be fix on a time for example : If a customer complain in customer service
that service is very poor or quality or very slow then to put these all in account we have to fix
that problems time by time . We have to improve our goals and budget planning where we
can cut the food cost and save some venture.
For ex, we can buy vegetables,fruits, and all grocery in wholesale so we can save some cost
and deliver it to each franchisee on time.
Potential problems :
There are lots of big-name fast food pizza joints such as Domino's Pizza (DPZ), Yum!
Brands' (YUM) Pizza Hut and Papa John's (PZZA) have all invested heavily in new mobile
ordering technology and improved ingredient quality to snag customers in the competitive
fast-food industry which can be diminish the business of Shambhu fast food.
- As per our survey , If a food quality will be poor then TV and media can make that a
huge matter as they want a spicy news and those competitors can also will take a
chance in this
As an solution , we have to precise in each and every matter related to food quality.
- Canadian government also very aware for their citizen especially in food quality so
our single mistake unconsciousness can jeopardize company’s future .
- Foods and shipping problem can be also occur as they know we are new in market of
Canada and shipping companies can take advantage as even we do not know the
budget and market rates of delivering basic foods which we will need every day to
make sandwiches and pizzas.
- Distance and Time
Even with technologies such as video conferencing, executives in other countries may prefer
to establish relationships on a personal level. For a our company, this can mean a significant
investment in travel costs and having key executives out of the office for extended periods.
Time zone differences can make it difficult to coordinate projects where collaboration is
required. Executives on the West Coast of the Canada. are just getting to work in the morning
when their Indian counterparts are winding down for the day.