Problem:

Meat is the staple of almost everyone’s diet. To keep it healthy and nutritious, people expect the
animals to be “free range” and not tainted by chemicals before reaching the dinner table. There is
understandably a lot of social concern to make sure the meat industry is not crueler than it needs to be.
Where can people trust the meat they eat?

Solution:

Parkdale Meats will sell beef, chicken, domestic lamb and domestic goat. The products will be
purchased from suppliers within a 100-mile radius of the store to minimally impact the environment and
maintain product freshness. The shop will purchase whole animals, and trained butchers will butcher
them once they arrive. To ensure all customers leave satisfied, the sales staff will help make special
orders if the shop doesn’t have a specific meat in stock, as well as offer suggestions when no special
order is possible.

Target Market:

"The meat industry is unique because it relies on live animals as its raw materials. Within livestock
production, there is a classic, livestock price cycle. Prices rise and fall as producers raise more animals in
response to high prices or low supply, and then cease producing when livestock inventories become
high and prices fall. At the low points in the livestock price cycle, some livestock producers have called
for reviews of meat packing industry structure to determine if the structure may be causing a price
decline. Each review has found that industry structure is not to blame for livestock prices. Rather, the
basic laws of supply and demand most often are the cause.

"Consumers are eagerly buying more conveniently prepared food products of consistent quality, despite
the sluggish growth of overall food spending, nearly 40 percent of the consumer’s food rupee is spent in
restaurants and other eating establishments."

Despite, and in fact because of, these changes, there is a growing need for sales of specialty meats to
the market who can afford them and desire them as they are no longer satisfied by grocery stores and
large retailers.

Target Market Segment Strategy:

Market segmentation for Parkdale Meats is based on the specific market opportunity in the Parkdale
area. While low-income households are content with purchasing the meat options at local grocery
stores and big box retailers, households with more disposable income are interested in expanding their
options for home-cooked meats. Furthermore, these customers host events in their homes more
frequently than low-income households do and prefer to offer high-quality or rarer meat options to
their guests.

Of the potential customers in neighboring towns, high-income households will be targeted first. They
have the disposable income to comfortably handle the time and gas expense of a trip and will therefore
be more likely to travel to Parkdale.
Upscale restaurants and caterers, especially those serving high-end corporate and private events, seek
high-quality, specialty meats at wholesale prices. Parkdale Meats will sell in bulk to them at a
substantial discount from retail prices, but still enough to generate a profit. Restaurants and caterers
will be required to order in advance to allow for specialty orders, as well as to not deplete the meat
available at the retail location for immediate purchase.

Competition:

Current Alternatives

Competitors for Parkdale Meats fall into the following categories:

 Grocery Stores: seven stores in the greater Parkdale area

 Big box retailers: Fauji meat and K&N’s
 Local Butcher shops.

Grocery stores provide basic meat options at relatively low prices. They are chosen by customers
interested in buying meat along with all of their other grocery needs and not traveling far from home.
These customers will sacrifice quality and available options for price and convenience.

Big box retailers serve clients who are interested in the lowest price and willing to sacrifice convenience
(longer waits and longer travel times). They offer the same quality and variety of options as grocery
stores.

Local shops have been in existence for many years and primarily serves customers who value the store’s
history. These customers have typically been buying meat for many years and live within five miles of
the store. Because its meats are only slightly higher quality than grocery stores, some local shops does
not serve caterers and restaurants. Instead, it sells primarily to medium-income households.

Our Advantages

Parkdale Meats will establish its competitive edge through the expertise and experience of its founders.
I have existing relationships with the best meat suppliers and an understanding of the craft of
butchering and also I know a number of assistant butchers who went on to take head positions at
grocery stores and butcher shops. Understanding of food service management, sales record in business-
to-business sales, and financial acumen, the pair will have an edge over the town’s other butcher shops
and grocery stores within its market.

Keys to success

Parkdale Meats must follow these principles in order to achieve success in its market:

1. Maintain high-quality standards for its suppliers and continuously monitor this quality.
2. Preserve meats in optimal conditions to maintain freshness while in the store.
3. Practice excellence in the skill of butchering meats through hiring, training, and supervising
staff.
4. Listen carefully to customer needs and respond with custom-cut products, whether in person,
over the phone, or through Internet orders.
 5. Nowadays it’s too rare to find pure quality meat whether its beef, chicken or domestic goat. As I
belong to the rural area where these animals have natural growth and they are not injected, so I
shall transfer all these animals from my side and our quality would be our identity.

Sales Plan:

There are sales strategies for both retail and business sales.

Retail sales will be based on the marketing of the store and its location, explained in the marketing plan
section. At an operational level, orders will be taken in person by clerks working the floor of the store
(two on duty at any given time), or by the office clerk over the phone or Internet. Orders for specific
cuts will be transmitted from these clerks to the butchers on duty, who will prepare the cuts. The floor
clerks will package, price and prepare the cut meats for sale.

Walk-in customers will be greeted with a standard greeting and served to meet their satisfaction with
quick order-turnaround as well as high quality meat cuts. A machine will give numbers to waiting
customers so they can be served in an orderly fashion. These customers will have a few seats in the
store to sit in while waiting.

The business sales strategy relies on prospecting to establish connections with caterers and restaurants.
I will research, contact, and present to these businesses using my sales experience. I will work to
maximize revenue and increase profits instead of being motivated by commissions on sales.

Locations & Facilities

Parkdale Meats will provide the following products on a regular basis:

Beef:

 Leg pieces
 Kebab
 Boneless meat
 Chuck
 Rib steak
 Roast Beef
 Shell Steak
 Skirt Steak
 Strip Steak
 T-Bone Steak

Domestic Lamb and Goat:

 Chop
 Flank
 Leg

Free-Range Poultry:
  Chicken Kiev
 Chicken Cordon Bleu
 Cutlet

Meat will be purchased from suppliers within a 100-mile radius of the store to minimally impact on the
environment and maintain product freshness. Products will be purchased as whole animals and
butchered in the store by trained butchers. They will be sold fresh. While products should be
replenished every week, there is a possibility that certain items run out because of high demand. So that
all customers leave satisfied, the sales staff will help make special orders if the meat they want is out of
stock, as well as offer suggestions when no special order is possible.

Our Key Metrics are:

 Inventory turnover
 Sales per square foot
 Spoilage
 Cost of training employees
 # of return customers
 # of reviews that customers write
 Favorite meat choices
 Average price of meat by cut etc.

Ownership & Structure

Parkdale Meats is established as a limited liability company with 100% of my own ownership and I will
have one person as my assistant. Concerning about decisions regarding company I will take a group
discussion with all my staff.

Management Team

The management of Parkdale Meats will consist of two people the owner and his assistant.

Personnel Table

2021 2022

Owner Rs-300,000 Rs-4050000

Assistant Rs-150,000 Rs-200,000

Sales and Operations Rs-200,000 Rs-250,000

Totals Rs-470,000 Rs-855,000

Financial Plan

Forecast

Key Assumptions

Our key assumptions are:

 Families appreciate nourishing meat

 People are willing to pay for premium meats

Financing

Use of Funds

Our uses of funds are:

Legal ………………………………………………. Rs-20,000

Stationery etc. ……………………………….. Rs-2,000

Rent ……………………………………………….. Rs-10,800

Equipment’s…………………………………………Rs-3,000

TOTAL START-UP EXPENSES ………. Rs-35,800

The following summary table shows the projected start-up costs over the three months prior to the
store’s opening.

 Initial insurance premiums covering both general liability and product liability
 Business renters insurance
 Rent for one month’s security and two months to allow for build-out of the retail space
 Pre-launch marketing to cover flyers
 Standard legal expenses for consultation and permits.

Inventory on-hand at any given time must be low to keep all meat extremely fresh. It will be ordered on
a weekly basis or more often if necessary. Other current assets include office and store furniture,
shelving, one computer, phone systems, and other tools. Long-term assets include the refrigerator unit
for the shop, refrigerated display cases, window displays, store fixtures, a refrigerated delivery van, and
additional investments in improvements to the retail location.

A significant amount of cash is required to fund the first year of operations until the business reaches its
break-even point.

Sources of Funds

Our funds are from:

Robert Suidae $65,000

Eryka Auroch $65,000

Initial funds are from Robert Suidae and Eryka Auroch for $65,000 each.

Parkdale Meats will also get a credit line of $100,000 from the bank using the owner’s houses and land
as collateral. If everything goes according to plan, all debt will be paid off by year three. In year four, the
shop will start giving Robert and Eryka back their $65,000 in owner’s dividends.

Statements