Introduction about the Concept of JuiceShop

Idea factory ltd suggested that it should start a side business which would be a refreshment shop in
the premises of Comsats. Our focus is that

“A shop is an establishment that serves prepared food and   beverages to be

consumed on the premises. The term covers a diversity of styles of beverage that never before
have been offered to the students.”

In the shop, products and suppliers are used on a “first-in, first-out” basis to ensure freshness”.

Business and Products:

There are all types of refreshments facilities available for students in Comsats University. Due to its
large area and number of students one single café or any other shop in any category is not enough to
fulfill the needs of students, hence we identified a gap in market and realized that there is space and
need of another juice shop in an extended product line. Our company is determined to provide its
market with some unique products that never before have been introduced in the university. These
include Ice gola, Ice-creams, gol gappas, Dahi bhalay, milk shakes, Ice-cream shakes and other
beverages.

Trend:

Juice shop businesses are always in direct relationship with the seasons. Summers of Punjab are
always very hot and noon times of educational institutes are usually peak times for juice sales. Apart
from artificial drinks a great number of students prefer natural juices, fruit shakes, ice-cream and
traditional Golas to prevent themselves from the harsh effects of weather plus it serves as complete
nutrients provider and energy preserver that is drained out in everyday university fatigue. As
summers begin, its high time to establish a business in this category, before this segment is captured
by anyone else.

Location:

The location that is most suitable for the refreshment shop is at the end of Abbasi cafe, in front of the
‘Can-O-La’ sugarcane juice shop. The location advantage is such that a large number of students
visit Abbasi café due to its good food and hence it will be easier for them to drop by at our shop as
well.

Strength:

 Most of our product line we are introducing is totally unique from existing products and
hence will create a market leadership and invoke a healthy competition.
 Location Advantage.

Weakness:

 We yet have no experience in this business.

 We are not sure about the provision of Electricity services that is the basic need of business.

Opportunity:
  The Products that we are going to offer are unique in nature and high sale volume is
expected.
 Summers ahead are a great factor of sales growth.
 On a good response we will consider to carry this business for year long.

Threat:

 The competitors can adapt the same products that might be easy for them due to their
established business.
 The other company might grab the opportunity to start this business.
 The Abbasi Café might try to snatch or forcefully become partners of the business using its
long term relation with university authorities.
 The electricity conditions might effect the business.

Financial Analysis
The products which are required for refreshment shop are listed below which will help us to estimate
expenses of doing such business;

Total budget of the Refreshment Shop:

Items Required Cost in PKR

Ice Grinding Machine 1500
Fridge 10,000
Infrastructure 25,000
Electronic items 1500
Miscellaneous Items 4000
Total PKR - 42,000/-

Break Even Analysis

The break even analysis is done on product category wise.

1. Golas

Variable Cost Selling Total Fixed Profit Margin Units to be sold to Total Units of
per Gola Price Cost achieve Breakeven Both types with
equal ratio
PKR 6
PKR 20 42000 PKR 14 3000 Units
(Without Cup)
1236 Units
PKR 10 (With
PKR 30 42000 PKR 20 2100 Units
Cup)

2. Ice Creams

Variable Cost Selling Total Fixed Profit Margin Units to be sold to Total Units of
per Cup Price Cost achieve Breakeven All types with
 equal ratio
PKR 10 (Single
PKR 20 42000 PKR 10 4200 Units
Scoop)
PKR 17
PKR 35 42000 PKR 18 2334 Units 794
(Double Scoop)
PKR 25
PKR 50 42000 PKR 25 1680 Units
(Double Scoop)

3. Gol Gappas and Dahi Bhalay

Variable Cost Selling Total Fixed Profit Margin Units to be sold to Total Units of
per Plate Price Cost achieve Breakeven Both types with
equal ratio
PKR 30 (Gol
PKR 50 42000 PKR 25 1680 Units
Gappy)
1050 Units
PKR 15 (Dahi
PKR 30 42000 PKR 15 2800 Units
Bhalay)
4. Juices/ Shakes

Variable Cost Selling Total Fixed Profit Margin Units to be sold to Total Units of
per Glass Price Cost achieve Breakeven Both types with
equal ratio
PKR 10 (Carrot
PKR 20 42000 PKR 10 4200 Units
Juice)
PKR 20
(Apple/ Banana PKR 40 42000 PKR 20 2100 Units
Mil Shake)
PKR 30 560 Units
(Strawberry/
PKR 50 42000 PKR 20 2100 Units
Mango Mil
Shake)
PKR 35 (Ice-
cream Shake/ PKR 60 42000 PKR 25 1680 Units
Cold Coffee)

These are the breakeven analysis of the business that are done product wise. This is high time for
establishing this business as about 10-15 days will be spent on put up the infrastructure. And then we
have too few time to do business as university will be closed in mid of June.

It is a pleasure to keep this report in front of you. Project report is vitally important for BBA students
because it develops the feelings among the students about industrial environment and business to
develop on the practical base. Theoretical knowledge is true only when we apply the same in the
practical.