Le’ Cake

Business Name : Le’ Cake

Registration No :

Business Address :No. 7, Le’ Cake,

Kottawa Road,

Maharagama.

Ownership : Sole Proprietorship

Introduction

Le’ Cake expects to catch the interest of a regular loyal customer base with its broad variety of
coffee and pastry products. The company plans to build a strong market position in the town, due to
the partners' industry experience and mild competitive climate in the area.

Le’ Cake aims to offer its products at a competitive price to meet the demand of the middle-to
higher-income local market area residents and tourists.

Products and Services

Le’ Cake will be a small bakery located in Maharagama, Colombo, offering all cake and cupcake. The
business will be entrepreneurial with enough employees to help the business run smoothly. A couple
of employees will be designated bakers, preparing the delights in the kitchen, while the remaining
employees take orders and fulfil the needs of customers .The product of focus for this business will
be cake & cupcakes. A variety of flavours, frostings, sizes, styles, toppings, and decorations will all be
available at Le’ Cake. To rise above competitors, Le’ Cake will offer numerous options to satisfy
common health and diet needs of consumers. Whether it is required by allergies or simply a choice,
a desire for gluten free, organic, naturally sweetened, reduced fat, and vegan foods has recently
grown .By offering cake and cupcakes which meet these requests, more consumers will feel
welcome to this bakery because their needs will be recognized and satisfied. The bakery will contain
a comfortable lounge area open to customers, allowing them to Stop in and sit down. The location of
Le’ Cake will be another advantage of the company .This bakery will be the first, and therefore the
only ,cup cake shop in the town of Maharagama ;without similar businesses nearby, the competition
for this bakery will be minimal. The business will work out of a store front on the town’s main street,
making it extremely visible for all consumers. Being centrally located in Maharagama town, Le’ Cake
will be easily accessible by all members of the area. Given the varieties of cake and cupcakes,
convenience, and accessibility, Le’ Cake will be capable of standing above its competitors.

Details of the Owner

Full Name : Salika DIlrukshi Fernando

Age : 23 years

NIC No : 917170266V

Educational Qualifications : Passed GCE O/L & GCE A/L

Professional Qualifications & Experiences: Have been followed Pastry & Bakery Diploma in Prima,
Rajagiriya. Worked at Perera & Sons (pvt) ltd for 1 Year.
Mission

Le’ Cake aims to offer high quality cake and cup cake products at a competitive price to meet the
demand of the middle- to higher-income local market area residents.

Keys to Success

Keys to success for will include:

1. Providing the highest quality product with personal customer service.

2. Competitive pricing.

Legal Background

Arrangement for the legal requirement for registration of the entrepreneurs name under the act
number 04, 1990 registration of entrepreneur’s name district secretary has been taken.

And also the allocation for the requirement of the EPF & ETF of the employees as a legal
requirement of the EPF & ETF act number 46, 1980 has been done.

Target Market

As a bakery, Le’ Cake will have a broad target market .People of all ages, children through adults,
enjoy delicious treats, and therefore will be incorporated in the target market. This product is not a
high priced item and, as a result, will be available to nearly all people Regardless of varying incomes.
Located in an area with a high tourism rate, the target market of This Company will include tourists;
however, many locals will also indulge in the delights. The Catering service will be especially utilized
by locals for large events and celebrations. Le’ Cake will be able to rely on locals. The products of Le’
Cake will be Appreciated by all consumers who simply enjoy a decadent treat. Whether consumers
are Looking for plain, simple cupcakes, or intricately designed treats, this bakery will be able to meet
their needs. For consumers who are looking to come in and sit down, Cup of Cake Café will be
preferred by customers who enjoy a calm, modern, comfortable atmosphere. Locals and visiting
Tourists passed the Maharagam, with varying ages and differing income levels, will all be included in
the Target market of Le’ Cake.

Market Segmentation

Le’ Cake focuses on the middle- and upper-income markets. These market segments consume the
majority of cake and cup cake products.

Our market is divided into four different psychographics: Comfort Creatures, Celebrators, School
Moms,kids, lovers and Gourmet Wanna-bes.  They represent groups of people sharing similar
behavior patterns and reasons for patronizing Le’ Cake.
Comfort Creatures are mainly white collar workers who are driven by success and prestige yet miss
homemade comfort foods of their childhood.  They may stop in on their own or bring clients in for a
gourmet Cake experience.

Celebrators are just that - people celebrating special occasions.  Birthday, anniversary, graduation,
valentine's day, etc., families and loved ones will gather at Le’ Cake over sumptuous Cake and a
festive atmosphere.

School Moms actually encompass all family members.  Le’ Cake is a gathering place where
families are welcome and feel comfortable.  "Moms" can come in for after school milk and cup cake
with their children and relax while we pamper the little ones.  Or they can meet up with friends for
Tea Time - a little civilized time stolen in the midst of a busy day.

Kids are always looking for something new colourful sweets. Large verity of Le’ cake’s delightful cup
cakes are almost ready to pamper kids enthusiastic demand.

Lovers will definitely be a part of Le’ Cake since it provides comfortable and private dining areas.

Gourmet Wanna-bes are the people who search for delightful cake flavours and recopies .They'll be
the adventuresome diners at Le’ Cake

Target Market Segment Strategy

The dominant target market for Le’ Cake is a regular stream of local residents. Personal and
expedient customer service at a competitive price is key to maintaining the local market share of this
target market.

Marketing Mix

Product: Our product is a high-quality, organic dessert that is extremely adaptable to both special
events, and to the special dietary needs of our customers.
Each cupcake purchased is accompanied with a package of seeds (large
Variety available) to consumers to help us reach our goal of nourishing the
earth.

Price: The price of our cupcakes is Rs.150.00 each which includes the product, the
seeds and delivery of product to consumers within Connecticut.

Place: Le’ Cake will market its products’ adaptability and its utility adaptability in a venue of different
online and offline approaches which include:
[Online]….electronic press releases, website, e-mail marketing campaign, web video ad, message
boards, online catalogs, etc.
[Offline]…press release, brochures, menus, direct mail, television spot,
radio ads, business cards.
Promotion: Our current promotional plans include but are not limited to:
• Guerilla posting to blogs incorporating company message with
Signature file
• Create online and offline press releases to introduce new business
• Radio commercials
• TV featured story on Good Morning Connecticut

• Facebook, Twitter, Blogger, GoogleBuzz, Linked In,

• Ads on Google, and sites like WedAlert.com
• Coupon offers, both online and offline
• Premiums, giveaways, incentives, contests
• Samples (offline)

Sustainable Competitive Advantages

Based on our main competition mentioned above, Le’ Cake actually has quite a
few competitive advantages which include ADAPTABILITY:

1. Our price structure remains competitive

2. Our selection of cupcake designs is much more diverse
3. We are adaptable to our customers’ dietary needs offering
a) Vegan cupcakes
b) Gluten-free cupcakes
c) Sugar-free cupcakes
d) Nut free cupcakes
4. We can adapt any cupcake design to any specific occasion

Demand Analysis

Product Monthly Demand Unit Cost RS. Total Cost RS.

Chocolate gateaux 10 1500 15000

Black Forrest gateaux 10 1800 18000
Red Velvet Cake 10 2500 25000
Pineapple gateaux 10 2000 20000
Coffee gateaux 10 2000 20000
Lemon Swiss roulade 10 1000 10000
Cheese cake 10 1500 10000
Ribbon Cake 10 1500 15000
Cup cake- choco 100 150 15000
Cup cake- blueberry 100 150 15000
Cup cake- lemon 100 150 15000
custard
Cup cake- strawberry 100 150 15000
Cup cake- coffee 100 150 15000
Cup cake-tiramisu 100 150 15000
Cup cake- raspberry 100 150 15000
Cup cake- apple 100 150 15000
Cup cake-crumble 100 150 15000
Total 980 268000

Supply Analysis

Product Monthly Supply Unit Cost RS. Total Cost RS.

Chocolate gateaux 3 1500 4500

Black Forrest gateaux 3 1800 5400
Red Velvet Cake 3 2500 7500
Pineapple gateaux 3 2000 6000
Coffee gateaux 3 2000 6000
Lemon Swiss roulade 3 1000 3000
Cheese cake 3 1500 4500
Ribbon Cake 3 1500 4500
Cup cake- choco 0 150
Cup cake- blueberry 0 150
Cup cake- lemon 0 150
custard
Cup cake- strawberry 0 150
Cup cake- coffee 0 150
Cup cake-tiramisu 0 150
Cup cake- raspberry 0 150
Cup cake- apple 0 150
Cup cake-crumble 0 150
Total 24 41400
Wasana baker is the only cake shop in maharagama who pamper the cake requirement in the area,
but they are not producing cup cakes and also they do not have a variety of cakes and also no sitting
spaces as well.

Difference between Supply and demand in the area

Unit Value RS.
Demand 980 268000
Supply 24 41400
956 226600

Estimated revenue analysis

Product Unit Price No Of Units Expected sales Value
RS.
1st year 2nd 3rd year 1st year 2nd year 3rd year
year RS. RS. RS.
Chocolate gateaux 1500 300 350 350 450000 525000 525000
Black Forrest gateaux 1800 200 250 250 360000 450000 450000
Red Velvet Cake 2500 200 250 250 500000 625000 625000
Pineapple gateaux 2000 200 250 250 400000 500000 500000
Coffee gateaux 2000 300 350 350 600000 700000 700000
Lemon Swiss roulade 1000 250 300 300 250000 300000 300000
Cheese cake 1500 300 350 350 450000 525000 525000
Ribbon Cake 1500 400 450 450 600000 675000 675000
Cup cake- choco 150 1000 1500 2000 150000 225000 300000
Cup cake- blueberry 150 1000 1500 2000 150000 225000 300000
Cup cake- lemon 150 1000 1500 2000 150000 225000 300000
custard
Cup cake- strawberry 150 1000 1500 2000 150000 225000 300000
Cup cake- coffee 150 1000 1500 2000 150000 225000 300000
Cup cake-tiramisu 150 1000 1500 2000 150000 225000 300000
Cup cake- raspberry 150 1000 1500 2000 150000 225000 300000
Cup cake- apple 150 1000 1500 2000 150000 225000 300000
Cup cake-crumble 150 1000 1500 2000 150000 225000 300000
TOTAL 4960000 6325000 7000000
Cost Analysis

Fixed Assets RS. RS.

02 oven 10,000,000
02 Display fridges 10,000,000
furniture 500,000
Electric items 500,000 30,000,000

Pre operational expenses

Rent(1 year) 360,000
Registration 40000
Raw materials(1 Year) 600,000
maintenance 200,000 1,200,000

Working Capital
Salary(1 Year) 1,920,000
Electricity (1 Year) 240,000
Water(1 Year) 120,000
Gas(1 Year) 300,000 2,580,000

Total Project Cost 43,780,000

Estimated Profit Analysis

1st Year RS. 2nd Year RS. 3rd Year RS.

Sales 4,960,000 6325000 7000000

(-)Cost of sales (3,780,000) (3,830,000) (3,880,000)

Gross Profit 1,180,000 2,495,000 3,120,000

(-)
Administration expenses (100,000) (100,000) (100,000)
Sales & Distribution expenses (250,000) (250,000) (250,000)
Finance expenses (150,000) (150,000) (150,000)

Net Profit 680,000 1,995,000 2,620,000