1.

Executive Summary

Tella is a locally owned fast drink outlet that will be positioned as an international franchise
through our creative approach to the company's image and detail presentation. Tella will provide
a combination of excellent drink at value pricing, with packaging and carbonic gas. Tella is the
answer to an increasing demand for cultural , to be consumed while window shopping and
walking around inside a shopping mall.

In today's highly competitive environment, it is becoming increasingly difficult to differentiate

one drink outlet from another. Addis Ababa, a city state, is now becoming the model metropolis
for Africans new economic boom. With more than 1 million visitors yearly, mainly from
neighboring countries (Kenya, Djibuti,Sudan,and the Somaliya), Ethiopia retail sector is the
strongest in the region. How ever ,Addis Ababa is the site of the rest Africans and the world
diplomatic resident.

Our main priority is to establish one outlet in a crowded mall, preferably in one of prominent
shopping malls in Ethiopia. Later, our effort will be a further development of more retail outlets
in the surrounding area.

This plan is prepared to obtain a location for the initial launch of this concept. Additional
financing will need to be secured for the two subsequent outlets, anticipated in month 13 and
early in year three. The financing, in addition to the capital contributions from shareholders, will
allow Tella to successfully open and expand through year two. The initial capital investment will
allow Tella to provide its customers with a value-driven, entertaining experience through the
creativity of its founders.

Tella will entice youngsters to bring their friends and family with our innovative environment,
fresh- Tella, and selection of unique signature dipping sauces.

Please note that all tables are in Ethiopian Dollars (1 USD= 30 Et birr)
 2,000,000
1,800,000

1,600,000
1,400,000
1,200,000
1,000,000 Sale
800,000 Gross margin
Net Profit
600,000
400,000
200,000

0
Year 1
Year 2
Year 3

Fig 1 Need actual charts?

1.1 Objectives

 To establish a presence as a successful local Flavored drink outlets and gain a market
share in Ethiopia Local drinks industry.

 To make Tella a destination spot for mall-goers.

 To expand into a number of outlets by year three, and sell the franchise to neighboring
metropolitan cities, such as Kenya, Djibuti ,Sudan,and the Somaliya.

1.2 Mission
 Our main goal is to be one of the most successful local drink outlets in Ethiopia, starting
with one retail outlet located inside a major shopping mall as a "market tester."
 Tella will strive to be a premier local drink brand in the local marketplace. We want our
customers to have the total experience when visiting our outlet(s) and website as they will
learn about this fascinating new "pop culture." We will sell merchandise from pre-
packaged sauces and t-shirts, all with our official brand attached to them.
 Our main focus will be serving high-quality food at a great value.
1.3 Keys to Success

To succeed in this business we must:

 Create a unique, innovative, entertaining menu that will differentiate us from the rest of
the competition.
 Control costs at all times, in all areas and implement a conservative approach to growth
policy. Although, we provide more than enough fund to open more than one outlet, we
want to be on the safe side of the business.
 Sell the products that are of the highest quality, as well as keeping the customers happy
with all of our product categories from drink to store merchandising.
 Provide 100% satisfaction to our customers and maintaining the level of excellent
services among other competitors.
 Encourage the two most important values in Local drink business: brand and image, as
these two ingredients are a couple of main drivers in marketing communications.
 Get access to high-traffic shopping malls near the target market.
 Promote good values of company culture and business philosophy.

2.Description of the venture

Our business requires a long relationship with raw suppliers as well as partner Small interprises.
In our regins, this relationship is called for future as"MELKAM_TELLA," meaning business
bonding. We already have a long and good standing relationship with Company X in our
previous ventures. For Company Y, Mr. X, the managing director, is a prominent figure in the
society and we hope to strengthen further our business relationship with him and the company.

Company Summary
 What is Etho-Tella?
Tella sells good drink in a burchiko with a  choice of sauce. We use the concept of
Ethiopian drink, where the drink are all made from fresh gesho,enkuro,and bikil. Our
outlet also provides excellent and friendly customer service to support the ambience of
fun, energetic and youthful lifestyle. 
 Youthful and fresh surroundings
We will imitate successful establishments, such as (Koreffe and Gush), which represent
the majority of our core target market, between 19 to 35 years of age. Our store will
feature display making of our featured Ethiopian drink. Our customers will also be able
to read our in-house brochures in regards to all knowledge about Ethiopian drink and our
featured sauces. Our store will be decorated with drink setting, such as a bright counter
and display menu on the wall.
 Quality drink
Each store will offer nothing but freshly ethiopian, koreffe and variety of unique blend
sauces, all served with old-fashioned home-style care.
 Open everyday
Our store is open everyday from 10 am to 9 pm.
 Variety, variety, variety
A different selection of sauces will be featured every three months and we will also
change accompany our drink
2.1 Company Ownership
 Ethio-Tella is a privately held company. It will be registered as a Limited company, with
ownership 16.6% - Hiwot Kebede, 16.6% Nurya Hassen, 16.6% Amsal Wube, 16.6%
fasika Belay,16.6% Meskrem H/Maryam,16.6% Banchiamlak Abebe.
 Hiwot Kebede and Nurya hassen have more than 10 years of experience in the drink
industry. Both are currently employed as Corporate Staff of Company A.
 Hiwot Kebede holds an MBA degree from University of Addiss Ababa. A true Physics
by heart, his latest entrepreneurial project is a diamond store in the heart of Ethiopia.
 Nurya Hassen holds a BA degree in Management from the Academy of Commers. His
projects are widely varied from product design to brand development of several reputable
companies.
 Amsal Wube holds a Diploma from Institute Kotebe teachers college. She completed
several projects and served as project manager for multi-national companies in Ethiopia.
 Banchiamlak Abebe holds a Dipiloma from Army, majoring in Management and
Information Technology. Prior to his return to Ethiopia, he has held several management
positions in a Ethiopia.-based IT company.
2.2 Start-up Summary
 The retail outlet will be rented at one of the target location shopping malls. Our
preference is Space A, for the main reason of reaching larger traffic.
 Startup requirements will be financed through owner investments.

900,000

800,000

700,000

600,000

500,000

400,000

300,000

200,000

100,000

0
Expense Assets Investments Loan

Fig 2 summery
Need actual charts?

Start-up Expenses
Kitchen and Fixtures 21,600
Furniture and Interior 16,500
Legal 3,000
Rent 15,000
Packaging and Stationary 8,500
Contingencies 4,200
Total Start-up Expenses 68,800
Start-up Assets
Cash Required 50,000
Other Current Assets 0
Long-term Assets 0
Total Assets 50,000
Total Requirements 118,800

We recommend using equity as the easiest way to create automatic financials for our own
business plan.

3 Industry Analysis

Despite the Ethiopian effects of the Africans Economic Crisis followed by political turmoil up to
mid 2001, Ethiopian's drink service industry witnessed growth over 2000/2001 at 4 - 5% in terms
of units and transaction .Much of this growth was contributed by the bars, Hotel sectors, whose
wide appeal amongst a young population, for whom time is of a premium, led to high levels of
growth. This growth is underpinned by market demand and lifestyle changes, such as seeing
local drinking out as part of trendy lifestyle.

Entry of major multi-national Alcohol service operators into major shopping destination in the
late 1980s until the 1990s led to growth in competition in the marketplace, mainly from fast food
africa. This stimulated the rise in the number of local drink units, both of international and local
Africa, that started in the early 1990s. Although there was a slowdown during the economic
crisis in 1998, the local Alcohol industry recovered faster than others, particularly during 2000
and 2001. Recent bombing tragedies have also proven that negative effects on this sector are
moderately short-term.

4. Products plan

For now, we will focus on selling Tella and signature sauces. However, as we grow further, we
will add new categories to our menu, such as Ethiopian filter tella.
In the future, our growth strategy will be offering the franchise of our brand to local drink
entrepreneurs in the region. The success of Tella franchising in Africa is the best example on
growing globally.

Value Meal

Sales of Etho- tella will not only generated from the selling of its famous Ethiopian local drink ,
but also will be generated by the conception of an innovative package menu called the "value
meal." It primarily consists of a combination of our featured Ethiopia tella, filter and Like other
country at greater value than selling at individual items. Further customization could be done by
selling a bigger size of Tellas called "Etho_Tella" to attract price sensitive customers.

5. Marketing Plan

We will deploy three different marketing tactics to increase customer awareness of Etho-Tella.
Our most important tactic will be "word-of-mouth" and in-store marketing. This will be by far
the cheapest and most effective of our marketing programs because of the high traffic in targeted
shopping locations.

The second tactic will be local store marketing. These will be low-budget plans that will provide
community support and awareness of our facility. The last marketing effort will be utilizing local
media. Although, this will be the most costly, this tactic will be used sparingly as a supplement
where necessary. 

A.Introductory remark

Each opening of Etho-tella will have, more or less, the same marketing mix as the others. Below
are the programs that we will develop to open each location.

Grand Opening

Each new outlet will have outdoor signage as soon as possible. We want the signage to be
supported by banners before the opening.

Point of Purchase

We will use "tray toppers" to explain the concept and philosophy of Ethho_tella. We will also
sell gift certificates, announce future job openings, and possibly mention franchise opportunities.

Direct Mail Piece

A stand-alone piece, folded, will be produced in full color on heavy weight paper. Inside will be
all the important details of Ethiopia tella, explanation of our menu, prices, house of operation and
a locator map.
  In-Store Marketing
o In-store brochures containing our concept and philosophy.
o Wall posters.
o Design concept.
o In-store viewing of making Tella process from tinsis or ( frist stage fermentation).
o Outdoor signage (if possible).
o Grand opening promotion.
o Party catering.
o Merchandising items.

 Local Store Marketing

o Brochures.
o Free occasional t-shirts at local stores events.

 Local Media
o Direct Tella piece – containing brochures sent to surrounding addresses.
o Web page – containing company philosophy, history and news.
o Local magazines that target our core customers, such as Free! Magazine.
o Newspaper campaign – placing several large adds throughout the month to
explain our concept to the local area.

B. Marketing characteristics

Our strategy is based on serving our markets well. We will start our first outlet as a "market
tester" that could become a model of the expanding number of outlets in the future.
Concentration will be on maintaining quality and establishing a strong identity in the local
market.

o A combination of local media and local store marketing programs will be utilized
at each location. Local store marketing is most effective, followed by print add.
As soon as a concentration of stores is established in a market, then broader media
will be explored. We believe, however, that the best form of advertising is still
hiegh By providing a fun and energetic environment, with unbeatable quality at
an acceptable price in a clean and friendly outlet, we will be the talk of the town.
Therefore, the execution of our concept is the most critical.

C. Market size
 We are targeting All Ethiopian as our primary market. Addiss Ababa Road is the place to
meet and hang out. Due to heavy extra-sociable people activities among Ethiopian
peoples, it is common for high set to have lunch inside shopping malls, and not at home.
They tend to flock to drink joints inside shopping malls across Addiss Ababa Road.
 Our secondary market segment is the "Working Ethiopians." With so many shopping
malls in the vicinity, Addiss Ababa Road is the haven for shoppers and job seekers alike.
 In the new Shopping Centre, there are more than 8,000 workers currently working as
sales persons and . There are more than 10 major shopping malls across Addiss Ababa
Road, including Jimma,Gonder,Mekele,Awasa,Dredwa,Adama,Dese, the biggest
shopping mall in the nation, employing more than 50,000 workers.
 Lastly, Addiss Ababa Road is also the destination for tourists staying in the area. Popular
Hotel are a few of the biggest accommodations in Ethiopia. Tourists will stroll Addiss
Ababa Road, hunting for the latest trend in fashion and have no time to stop for a full
drink during shopping. Ethio-Tella is the alternative for a quick bite while shopping the
fancy boutiques in the area.

Market Analysis(pie)

Adult Ethiopian
Working Ethiopians
Tourists

 Fig -3 Need actual charts?

D. Clients

Ethio-tella intends to cater to the bulk of All Ethiopian. We have chosen this for several
important reasons. It is our goal to be "the extraordinary local drink and we believe that the age
group from 18 and above is the primary age where brand building efforts could take place. They
are on limited or fixed incomes and seek a value/price relationship that will not stretch their
budgets.

Our secondary target is between the ages of 21 and 37, which are a heavy lounge/restaurant user
group. They are more flexible in budgets and seek more than a value/price relationship.

Our lunch strategy is dual purposed. First, we are featuring fresh drink to fill Ethiopian's craving
for drink as most ideas of lunch is a quick bite not a heavy drink.
Second, we want to keep the price point at lunch as drink as possible to keep us in competition
with other drink outlets. At S$0.50 for a medium size drink, we are only slightly above the
segment, but we offer much more excitement than the rest of the competition.

E. Competitive

 Our unique dipping sauces blend local taste and international into one fusion recipe for the
signature sauce.
 Enthusiastic and friendly staff
 Supporting merchandise items that support company's brand building.
 Our fries are made of 100% pure Gesho and Bikil unlike the Botanica used by
competitors.
 Innovative packaging will position us at the same level with foreign fast food franchises.

 Who makes the best tella in town?

Competitive in Fiche(source web site -Botanica)
 In Fiche, many women make tella beer or areke, a spirit similar to Italian grappa, to
supplement the family income. While caring for young children, tending the home and
family land, they will boil and ferment barley and teff grain, gesho (local hops), kosso and
other herbs in huge clay pots to make the traditional drinks for the tella houses in town. As
well as being popular beverages, tella and arake are often administered medicinally or in
combination with certain herbs to treat upset stomachs, worms or fever.
 When Etse-Fewus ‘Healing Herbs’ Association members were asked recently ‘Who
makes the best tella in town?’ – the answer was unanimous:  A woman named Beletech is
famous for her brew.
 76-year-old Ato Abe, one of the group leaders and a respected local herbalist, confirmed
he had sampled all the tella in Fiche.
 “Belatech’s is by far the best,” he said. “Before she offers you the tella, she gives you two
handfuls of injera (flat bread made of teff). Then, whenever I am in need of two handfuls
of injera in my mouth, I go to her place!”
 The discussion was part of a five day basic business skills course we organised in January
with Ethiopian micro-enterprise organisation Women in Self Employment (WISE).

6.Relative strength and weakness

 Strength of Botanica
 to be Association members.
 No age limitation.
 Entertaining local drink within their entire cumulative knowledge
 Weakness Botanica
 Botanica not planted by busness plan future.
 Supported by Ethiopian micro-enterprise organization.
 No organizational structure.
 Strength of Etho-tella
 To be Share members.
  No age limitation.
 Entertaining local drink within our entire cumulative knowledge .
 Supported in business plan.
 All share members have educational background.
7. Organizational Plan
 Our initial employees will include two cashiers, two Tella makers and One Car boys per
location, with that on the premises during open hours. This is considered an ideal
personnel number for a drink outlet the size of our own. Each employee will work for 38-
40 hours per week.
 In the long run, as we expand our product category and retail outlets, we will employ more
people in the middle management to ensure the focus of our work, including site
managers.
Organizational plan

Year1 Year2 Year3

Site managers 0birr 60,000 birr 96,000 birr
cashers 36,000 birr 80,000 birr 144,400 birr
Tella makers 28,000 birr 66,000 birr 115,200 birr
Carboys 23,000 birr 56,000 birr 94,000 birr
Total people 12 26 40

8.Company structure
 Future organizational structure will include a director of store operations when the store
locations exceed four units. We hope that this individual will come out of the ranks of our
stores’ management. This will provide a supervisory level between the executive level and
the store management level.
 Current plan is to have our accounting and payroll functions done by an in-house
bookkeeping. Mr. X will be responsible for accounting and business development of
Etho-tella, helped by Mr. Y, acting Head of Human Resources Division. Possible
positions might be added at a later date include marketing manager, purchasing manager,
controller, human resources, and administrative support team.
 Adminstrative
support
teamOrganizatio Executive level
nal plan

Store
Supervisory managment
Level
Executive
manager Store Opretor

Marketing
managment Accounting

Human resource

Fig 4 Company structure

9.Assessment of risk

Etho-Tella must establish a distinct brand to stand out from the other Others-style Local drink
competitors.

 Our logo is distinct as fresh, energetic and playful with color elements that are eye
catching.
 Product names are geared toward the target market, with items such as "Etho-Tella" and
"Uber Drink" which are fun and easy to remember.

10.The balance sheet

Etho-tella projected company balance sheet follows. We expect to run at a loss for the first two
years, decreasing our net worth slightly. As the operation becomes more profitable in the third
year, our net worth rises again.

Liabilities and Capital Year 1 Year 2 Year 3

Current Liabilities
Accounts Payable 29,242 35,911 50,452
Current Borrowing 0 0 0
Other Current Liabilities 0 0 0
Subtotal Current
29,242 35,911 50,452
Liabilities
Long-term Liabilities 0 0 0
 Total Liabilities 29,242 35,911 50,452
Paid-in Capital 800,000 800,000 800,000
Retained Earnings 68,800 151,343 291,930
Earnings 82,543 140,587 53,226
Total Capital 648,657 508,070 561,296
Total Liabilities and
677,899 543,981 611,748
Capital
Net Worth 648,657 508,070 561,296
Year1 Year2 Year3
Asset
Current Assets
Cash 677,899 543,984 611,723
Other current Assets 0 0 0
Total current Assets 677,899 543,984 611,723
Long-term Assets 0 0 0
Current Assets

11.Net worth

12.Appendix

Sale for cast

Mont Mont Mont Mont Mont Mont Mont Mont Mont Mont Mont Mont
h1 h2 h3 h4 h5 h6 h7 h8 h9 h 10 h 11 h 12
Unit Sales
2
Etho_tella 1,000 1,200 1,440 1,728 2,074 2,488 3,981 4,778 5,733 6,880 8,256 9,907
%
2
Botanica 650 780 936 1,123 1,348 1,617 2,426 2,790 3,209 3,690 4,243 4,880
%
Merchandisi 2
100 120 144 160 180 220 299 358 430 516 619 743
ng %
Signature
1
Packaged 100 118 139 150 150 150 270 319 376 444 523 618
%
Sauces
Total Unit 11,52 13,64 16,14
1,850 2,218 2,659 3,161 3,751 4,476 6,976 8,244 9,747
Sales 9 1 7
Mont Mont Mont Mont Mont Mont Mont Mont Mont Mont Mont Mont
Unit Prices
h1 h2 h3 h4 h5 h6 h7 h8 h9 h 10 h 11 h 12
Table of content

1. Executive Summery
1.1 objective
1.2 missions
1.3 key to success
2. Description of the venture
2.1 company ownership
2.2 stsrt-upsummery
3. Industry analysis
4. Production paln
5. Marketing plan
6. Introductory remarks
6.1 Market chaaracterstics
6.2 Market size
6.3 Clients
6.4 Competition
7. Relative strength and weakness
8. Organizational plan
9. Company structure
10. Assessment of risk
11. The balance sheet
12. Net worth
13. appendix