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Assignment 5 SM
Assignment 5 SM
Amna Subhani
Malik Umar
SAP ID:
70071204
70075285
Course:
Service Marketing
Instructor:
Dated:
14 January 2021
Assignment 5
Business Idea
Open up a sports theme-based café in Bahria town, Lahore. The name of the café will be
Logo
Product or service
The business is a both product and service business. As we will be providing the service of dining and other
sports facilities, and our product will be the edibles that we are offering.
Product
The product is food and drink. Our main line of food products will be fast food, assorted hamburgers, pizza,
French fries, pasta, lasagna, spaghetti, sandwiches, steaks, etc. there is takeout and it also accommodates
our seating arrangement. Various types of cakes, cookies, cakes, ice cream, brownies, etc. in desserts. We
present. A wide variety of smoothies, coffee, slushies, sodas, shakes and other beverages are available for
drinks and beverages. All of these will be produced in our kitchen after our suppliers' inventory is taken,
and since we are working on the JIT strategy, we don't need any warehouse or other unit to keep our raw
materials as is. It is ordered daily and weekly. We will consider further expanding our product range based
on business performance. Today our main goal is to provide customers with better quality food and keep it
as affordable as possible.
Service
We focus not only on the quality and consistency of our product, but also on the service to provide, we plan
to hire personnel according to certain values. We also plan to train them in dealing with customers and there
will be a monthly workshop where staff will be taught to present trends and customer relationships. We
will arrange live events and create a healthy and competitive environment where people will feel part of
the event and their morale will be lightened, if both teams have fans. There is a live broadcast of any final
sporting event, each team has its own fans who will see their team win. They can come and enjoy the game
in a healthy environment. We will offer a fabulous service for those who do not want to eat. We will
maintain a hygienic environment because this is our top priority and we will keep our cleanliness standards
in check. In addition, we will maintain two guards so that customers can have a pleasant and safe time.
Target Market
Our main target is young and old, belonging to middle and upper middle class. The target age group is
between 15 and 40 years old. The growing purchasing power of the growing middle class in Lahore allowed
them to spend increasing amounts on leisure activities. Today's young people prefer a healthy and safe
environment. Students who cannot pay their food bills and also want a healthy environment and also love
sports want to come here again and again, where they can easily go. hang out Get the facilities you want
with your friends and. Seniors can come to us who want to have a cup of fresh coffee in the morning and
play some of their favorite board games or even read something. That's why we mainly focus on these two
segments, kids are also our goal for the playground, because little kids prefer video games more, so we will
get a special discount for our customers the playground for dinner in our cafe.
Marketing Plan
For the marketing of our business, we will use different strategies such as making a page on social sites and
advertising on google and various websites. Everyone will want to come and try our coffee to make sure
we are on the phone and we are the most viewed and visited page, many people will want to come and try
our coffee, everyone will be excited to try a new place and such services are not easily accessible to the
most people. Second, we would put our brochures in magazines and newspapers and distribute them in
areas near Multan road, Bahria, Lake City, Valencia, so that people would come here instead of going to
very distant places in Lahore city. Apart from these, we will give a 15% discount during the opening week
and a live music performance of a group where we will recruit enough groups that they will need a platform
to showcase and show their talents, the performances will be placed by them. On the first floor and in the
first two months of our opening, free desserts will be offered to consumers who spend more than 2000. We
will try to ensure that our services are in line with the demands of our customers so that they are satisfied
with our services and products, and in this way, they will spread a good word of mouth about our coffee
and other people will want to come. site. There will be free meals for children under 10 if they come with
their families on weekends, and the biggest attraction will be that our customers get a 20% discount on the
playground. This makes them loyal. As children prefer electronic games and video games more. We plan
to host a live arcade competition every six months and announce a prize for the winner and second place.
Together with the FCB and Real Madrid social accounts of important events such as El-Classico, we will
organize live broadcasts on the giant screens and we will give discounts to our clients and their followers,
as they already organize this type of event in different cafes in Lahore and in This broadcast participates a
large number of people. We would decorate the seating area according to the event, this would attract more
local customers and create excitement in customers. At events like the World Cup and PSL, we would call
the athlete our main guest, sports fans would come to meet and have fun with their favorite athletes. There
will be special promotional packages for customers at the beginning of each season. Over time and
according to trends and demand, new opportunities and packages will be introduced. We will receive
regular feedback from our customers and will try to make appropriate improvements to maintain a healthy
relationship with them and make their experience enjoyable.
• Strength
Our strength us the uniqueness of our idea, and that there is no such other café in the area, so there would
be no other competitors, reasonable price, best quality product, environmentally friendly specially in such
times.
• Weakness
It is a startup, we do not have much financial resources so our budget is limited, employees hiring, and
resources to make ur consumers more comfortable and gain their trust.
• Opportunities
Discounts available from suppliers, expansion of business through partnership, enhance market share
through advertising and promotional packages, special deals for our regular and loyal consumers.
• Threats
Threat of new entrants, chances of substitute business ideas, tax will increase our costs, ultimately
decreasing our profit margin, social forces, poor economic and political conditions in Pakistan. The
situation of COVID-19. People are practicing social distancing.
Operations Plan
Our strategies for managing operations are location strategies, capacity management and inventory
management. First of all, we need to do financial planning. About how and where to obtain financing, how
to invest in it, and how to ensure that creditors can repay it within the established timeframe. We chose the
back of Safari Villas in Bahria Lahore for the location. The main reason we chose this area is that there is
no such cafe in this part of the city and people have to go to places that are far from here and are very
expensive. They would rather come here when they enjoy good food and sports in our house. The area we
chose in Bahria is located next to the Umar Block behind the Safari as it is not on the main road, so the
building we rent is cheaper than the one on the main road and markets. Since it is a startup, we try to keep
it within our budget range as much as possible and must spend accordingly. However, it would still be a 5-
minute drive for Bahria residents. The second strategy we do in operations management is capacity
planning, and we are planning to rent a 10-room building with capacity for 2000 people in the commercial
sector. We will anticipate our demand first and then arrange the seats accordingly. Forecasting is important
because if we don't anticipate it, it can cause big problems down the road. However, since it is a cafeteria,
we will also do capacity planning for inventory and demand may differ from normal on rainy days or days
like this, so we must have a reserve stock on hand. We can satisfy customers' request for access, but since
this is a food business, we cannot store food any longer. So, we will order daily and weekly. This will help
with any urgent shortages of raw materials. We keep a slightly high number of raw materials in the
warehouse unit behind the kitchen during days like sunny day, rainy day, so if our demand exceeds normal,
we can meet your needs. We run it on the basis of JIT technique, which means ordering inventory on
demand. Third, we will do mass planning, such as ordering the product inventory as a whole. As we know,
flour is the main ingredient in most foods, all kinds of bread, cakes, donuts, etc. We order it as a large unit
of raw material for its production. The main objective is to minimize total cost and forecast customer
demand, so we will order according to estimates and according to our holding capacity, because we are a
start-up and we cannot rent a holding unit to maintain our raw material there. Finally, we need to plan
marketing ideas to create awareness and interest in people, and check how to implement these strategies,
our management operations and if our objectives are being met. If not, set restrictions and try to remove
them.
Development Plan
We plan to not rush into anything but to wait for the right time and then start working into anything. We
will work on the idea, take advices from all partners, and make modifications in the idea if necessary, and
then work it. We will further work on our new ideas and develop strategies of how to make this business
up to the latest trend and demand. A business development strategy is a plan to grow your business in a
new strategic direction. This is typically done to find new sources of revenue growth and/or manage
competitive threats.
Keep in mind this SWOT analysis we can make our development strategies accordingly. And try starting
new product line and service. And provide customers with facilities that they want. We will go for a
membership in our café and it will also help to generate our good revenue and make our customers regular
and loyal.
Competitive Advantage
We have no direct competitor in nearby area but some indirect competitors in market. Fashion café, buffalo
wings, etc. are our indirect competitors. Fashion cafe or rock cafe these cafes are based on food but we are
providing food with sports activities. We will create a sustainable competitive advantage by following our
strategic assets, these are the most important assets of our organization. Our strategic assets are
• Quality products
• Economical prices
• Customer Service (Service Quality)
• Convenient location for consumers
• Efficient and friendly staff
• Unique design for sports activities
Risk Assessment
• External Factors
Political and economic conditions are external factors that can have a strong impact on the business,
as the Pakistani economy is always fluctuating and never at a stable point. Therefore, it can be a risk
factor and the government can also be a risk factor, the change of government can lead to a negative
change in the tax rate or in the rules and regulations that govern the restaurant business. To avoid this
insurance, you can make insurance against the political risk of the company.
• Internal Factors
The management team is the main risk factor for any new company, what we need to do is to do the
recruitment on the basics and only hire staff who meet these standards and then hold a monthly workshop
to keep them updated. They should know the latest market trend and also get incentives to work more
efficiently, letting them know how to deal with customers. Another risk factor is customers. It doesn't matter
how confident we are about keeping our customers with us, but keeping them with us is a huge challenge
and for this we need to delve deeper into the market of similar businesses and identify market gaps and
customers' needs. and we strive to meet these needs so customers can stay loyal to us. Therefore, this risk
factor will also be reduced.
Exit Strategy
While creating a business you should know that you must always have an exit strategy, usually the startup
won’t always end up good, but with a little luck, effort, planning, and hard work success is possible. Pour
exit strategies are as below;
If we did not get desire results then we will go for more investments through looking for equity
partner to expand our business to get results.
• Intro of Membership
We will go for a membership in our café and it will also help to generate our good revenue and make
our customers regular and loyal.