BUSINESS PLAN

DONE BY :DAPHINRILANG KHONGPHAI

ROLL NO:B1700052
BBA 6TH SEMESTER

2020
Business model of Chillex Café
By
DAPHINRILANG KHONGPHAI

ROLL NO: B1700052

BBA 6TH SEMESTER

A project submitted to the

department of business
administration, shillong college
 Contents
Acknowledgment ………………………………………………………………………………………………………………………...4

Executive summary……………………………………………………………………………………………………………………….5

Introduction (industry background) ………………………………………………………………………………………………6

Mission ………………………………………………………………………………………………………………………………………...6

Vision…………………………………………………………………………………………………………………………………………….6

Purpose…………………………………………………………………………………………………………………………………………7

Business goal…………………………………………………………………………………………………………………………………7

KEY TO SUCCESS WILL BE………………………………………………………………………………………………………………8

OBJECTIVES……………………………………………………………………………………………………………………………….….8

FORMATION OF BUSINESS…………………………………………………………………………………………………………….8

FOUNDER………………………………………………………………………………………………………………………………………9

Location and Facilities……………………………………………………………………………………………………………………9

Marketing mix or 7p…………………………………………………………………………………………………………………….10

PRODUCT .......................................................................................................................................... 11
PRICE ................................................................................................................................................. 12
PROMOTION ..................................................................................................................................... 12
PLACE ................................................................................................................................................ 13
PROCESS ............................................................................................................................................ 13
PEOPLE .............................................................................................................................................. 13
PHYSICAL EVIDENCE .......................................................................................................................... 14
Freshness and Hygiene ..................................................................................................................... 20
MENU VARIETY ................................................................................................................................. 20
TAKE HOME EQUIPMENT .................................................................................................................. 20
AVAILABILITY ..................................................................................................................................... 20
QUALITY ............................................................................................................................................ 20
Easy accessibility ............................................................................................................................... 21
Blog ................................................................................................................................................... 22
Internet advertising .......................................................................................................................... 22
Text messaging/mailing list............................................................................................................... 22
Demographic segmentation :............................................................................................................ 23
Psychographic segmentation: ........................................................................................................... 23
Behaviorable segementation : .......................................................................................................... 24
Geographic segementation:.............................................................................................................. 24
COMPETITION AND BUYING PATTERN ............................................................................................. 36
BUYING PATTERN .............................................................................................................................. 36
STRATEGY AND IMPLENTATION........................................................................................................ 36
SALES STRATEGY ............................................................................................................................... 36
SALES FORECAST ............................................................................................................................... 37
Strength in the SWOT analysis of Chillax café .................................................................................. 39
Weakness in the SWOT analysis of chillax café ................................................................................ 39
Opportunities in the SWOT analysis of Chillax café .......................................................................... 40
Threats in the SWOT analysis of the Chillax café .............................................................................. 40
Political factors.................................................................................................................................. 41
Social factor....................................................................................................................................... 41
Technological factors ........................................................................................................................ 41
Environmental factors....................................................................................................................... 41
Legal factors ...................................................................................................................................... 41
Financial plan………………………………………………………………………………………………………………………….….. 46
 COMPANY DECRIPTION

Types of company: PRIVATE COMPANY

Types of business: CAFÉ
Products: MULTIPLE
Name of the company: Chillax Café
LOCATION: 7SISTERS FALLS CHERRAPUNJEE
Email id:@daphinrilangkhongphai@gmail.com
 ACKNOWLEGDMENT

First and foremost, and thanks to God the almighty, for his showers of blessings
throughout my business plan to complete my Project work successfully.
I would like to express my special thanks of gratitude to all my teacher of BBA
Department as well as our principal K.D Roy of SHILLONG COLLEGE and the BOARD OF
NEHU and specially to H.O.D of our department and also a teacher in-charge of this
project who gave me this opportunity to do this wonderful project on the topic of
Business Plan, which also helped me in doing a lot of research and I came to know about
so many new things, new ideas. I am really thankful to them.
Secondly I would also like to thank my parents, my cousins, my siblings and friends who
helped me alot in finalizing this project within the limited time frame.
 EXECUTIVE SUMMARY:
Chillax-Café shop is a novel neighbourhood bar/house that gives a well disposed ,powerful
place where singles/couples can meet .Cafe is not the common bar where individuals go to
meet different singles .Cafe has one of a kind administration called the structure discussion
framework that is very successful for permitting singles/couples to meet each other and
furnish them with significant understanding into the other individual through intelligent
discussion .The organized framework give an air that brings down restraint and breed
certainty permitting singles /couples to meet different singles/couples and pick up
knowledge into their identity by method for insightful talk . Cafe gives this gathering
powerful arrangement to this issue.
Chillax café will be a small entrepreneurial café located near Seven Sister’s falls
Cherrapunjee .The café will contain a comfortable seating area allowing customer to stop in
and sit down .Therefore Chillax café will ensure product quality through the use of fresh
ingrdients and focus on cleanliness. Innovations are also a goal of the company.
Chillax café will provide a friendly , comfortable atmosphere where the customer can
receive quality food , service and entertainment at a reasonal price. The café will offer a
variety of choices to the customer , Juice ,soda and non alcoholoic bevarages and also light
food will be available.
The interior design of the building will focus on projecting a relaxed atmosphere. Chillax café
will be divided different area for seating. Some will have tables and chair ,another will have
large antique stuffed couches and chairs ,end tables ,coffee tables ,book shelves filled with
books and magazines, style lamps etc. The public address system will be installed so that the
music and the entertainment can be heard thoroughly. A large section of table games will
be provided.
When Chillax café first open, it will host a grand opening to gain consumer awareness. The
event will offer a free samples of a variety of products offered by the business to achieve
consumer interest and desire ,which in turn will increase consumer purchase.
These plan will help the business grow more succesfull and profitable.
 Introduction (industry background)
The chillax- café is simple familiar where you can enjoy your time with a nice and unique
taste of coffee, tea, snacks, drinks, etc. The café is a cozy relaxing place where people will
differentiate the taste of coffee, tea, snacks, drinks etc. It is a casual social environment
where you can meet or find people reading newspaper magazines, studying or chatting with
the others about the current events. The café is also a place where information can be
exchanged .
The chillax-café will have menu similars to what is available in the competitors menu hot
and cold drinks .Also the café will offer some dessert like cupcakes ,muffins ,cookies ,etc
and some light food like sandwishes and salads that are suitable for snacks .This café will
have different menu which based on traditional food like khasi food .Some khasi tradition
food or snacks are putharo, pudoh ,pusaw ,phandieng ,umsoh, pyrshong,umsohiong etc.

MISSION

 Will make its best effort to create a unique place where customer can socialize with
each other in a comfortable and relaxing environment while enjoying the best coffee
,snacks etc. We will be in the business of helping our customer to relieve their daily
stresser by providing piece of mind through great ambience ,convenient location
freiendly customer service and products of consistently high quality .Will invest its
profits to increase the employee satisfaction
 Affordable high quality food coffee based product
 Live entertainment to the residents and hotel visitors located nearby the café.
 Choices for all families and singles ,young and old ,male or female
 Employee welfare

VISSION
To be among the creative and innovation leader in the market

PURPOSE
 This document is intended to outline the startup of the business known as Chillax
café. The business has a two- fold mission. One is to obtain financing, the other is to
help who, where, what, when and how for the business so that the business will
have a clear cut plan and operation map.

BUSINESS GOAL

The goal of the business are to provide a substantial income and to create a business
and working environment where both the customer and employee are treated with
dignity and respect.
The specific goals of the business are:
 Profit :personal income in excess of $50000 per year within 2 years
 Clientele: create a base clientele of a person who visit cherrapunjee ,live and
work in the area. These person will liked a relaxed atmosphere where they
can hangout
 Employee: competent employees who are committed and loyal.

KEY TO SUCCESS WILL BE

 Store design that will be both visually attractive to customer ,a relaxing and upscale
interior design
 Employee training to insure for preparation techniques
 Product quality -food, coffee and entertainment they must be of the high quality and
value.
 Service: each member of the staff will be courteous efficient and attentive
 Marketing: we will need to target our audience /customer early and often, while the
business is located in accessible location where many people or tourist can access to
the café.
 Management: the dining/entertainment /café-house must be delivered in a fashion
that will not only inspire repeat business, but encourage word of mouth
recommendations to others. Proper inventory, employee management, and quality
control is key.

OBJECTIVES
 Main objectives is to provide the best quality.
  Remaining a small unique with electic food and service.
 Expanding our advertising and marketing to increase our customer base.
 Expanding our advertising and marketing to increase our customer base.

FORMATION OF BUSINESS
Chillax café will be coffee/restaurant located near Seven Sisters falls at Cherrapunjee.

The café will offer a variety of choices to the customers. Coffee and tea of all sort will be
offered .The choices of the coffee will range from espresso to latte, from regularly flavour to
raspberry mocha. The teas will be range from various flavoured varieties.

Juice , Soda ,and non-alcoholic beverages also will be available .For others who want
something else to drink ,both wine and beer will be on sale. Wine can be ordered by the
glass or by the carafe .Bottled micro-brewed beer will be available.

The menu will featured croissants, muffins, bagels, donuts, French pastries, fruit filled
crepes, sandwishes, salads, different soup etc. Dessert will consists of cheesecakes some fat
free, fresh fruit and cheese etc.

Chillax café will offered traditional food of Meghalaya like putharo, pudoh, phankaro,
pukhlien ,pupaloi, some drinks like umsoh pyrshong, umsohkwit etc.

The interior design of the building will focus on projecting a relaxed atmosphere. The
bottom of the wall will be forest green n top of that you can see the beautifull falls. The
table and chairs will be custom made from light oak .The chair covering will be of forest
greenmaterial and heavily padded for comfort .The table tops will be marbleized forest
green laminate.

Chillax café will be divided into different areas for seating. An advantage to having different
areas is that customer can partake in different activities without bothering anyone.

FOUNDER
The Chillax café will be privately owned by D.khongphai. D.khongphai a graduate student of
Shillong College has undergraduate degree on Business Admistration

LOCATION and FACILITIES

The chillax-café is located near SEVEN SISTERs FALLS CHEERAPUNJEE. The facility will be
divide equally between the café/ entertainment function .The chillax-café will provide a full
service dine -in and carry out coffee based bevarages /snacks/light food as well as a dessert
.The chillax café will also contain a flexible indoor/outdoor patio seating ,a small
 entertainment stage and magazine and newspaper available .The facility will feature a
simple garden which will provide comfortable.
The total space requirements is 4000square feet. The café will feature a comfortable and
open concept design .The indoor patio seating will allocate 10 seats ,5 for double and 5 for
family/group of friends as well as outdoor patio seating .Parking lot will be accessible.

MARKETING MIX OR 7Ps

The Marketing mix identifies the main components of the café marketing plan namely
,product ,place ,promotion, price, people, process, physical evidence. Marketing mix as a
way of developing its brand image and popularity . Chillax café will change its marketing mix
over time as a way of responding strategic challenges in the market.
The marketing mix or 7Ps functions as a marketing tool for establishing and systematic
approach to bring the café in the market. Marketing ,it is of critical importance to apply a
suitable combination of approaches for promoting the café that offer at the right place at
right price.

PRODUCT
This components of the marketing focuses on what the business offer to customer .The Chillax café
will provide a first class delivery service of quality hot and cold beverage. Chillax café will
 use high quality and speciality expresso coffee, drinks and pastries and light sandwish,
snacks etc. Chillax café will provide our own traditional food ,drinks, snacks etc. The chillax
café will offering both carryout and dine in menu selections. It also provide WIFI
connections magazines and newspapers which will be readily available. Chillax café will
provide traditional musical and some small events and entertainment .
Presentation of food and bevarages will be in a unique way as it is important for the kitchen
staff to pay their full attention while presenting the food to the customers. Chillax café will
be the only café among all the competitors which focuses the entire menu on healthy and
low fat cooking at the same time focuses on the flavour.
Product quality is essential for the success of the business. In order to ensure the product
quality ,the chillax café will emphasize cleanliness and sanitation, use quality ingredients
and always be sure all the product are properly cooked .Innovation are also important factor
in the growth and success of the business. The café will continually work to develop new
recipe for new products. Doing so will allow to have more variety to offer and possibly
attract new customer. Doing this will give consumer something to look forward to in the
upcoming year, as well as increase business.

PRICE
Pricing is one of the most important elements of the marketing mix as it is the only mix
which generate a turnover for the organisation.
After Chillax Café open its key objective will include a strong market share survival and
return on investment. Achieving these aspiration will eventually allow the business to
become profitable. Keeping these goals in mind the business will choose prices that are
competitive with the industries . Doing so will help the café to stay in business with prices
that are not high over the competitors.
The food price will be in the moderate range and comparable to other restaurant ,resort in
the area. The cost will be determined by not only what the going rate in the area is but also
by the percentage of actual cost of the food. The price will not only be competitive, but the
food will be tasty, well presented and large portion will be served in a relaxing atmosphere
where the customer will be comfortable. The image projected by the pricing will be, that the
customer will be getting a fair value for their money ,that they do not need to be rich to
hangout at the Chillax Café and anyone can afford it. They will be able to use the books and
play games .In the evening they will be able to listen the live entertainment. During the day
music will be played over the PA.
Credit terms will be offered only in the form of credit card service such as visa, mastercard
and cash.

PROMOTION
This component of the marketing mix the communication strategies used to disseminate
information about the café to encourage to visit the café. Chillax Café will promote the café
through advertising, communication, social media, public relation, word of mouth
marketing. The marketing mix usually focuses on providing the best customer experience in
 order to encourage people to spread positive words about the cafe. The public relation will
also be important for the business .A chillax café will utilise public relation through
community involvement such as taking part in the community activities sponsoring local
events or charity or lending a helping hand during calamities .This will show the company
desire to be involve and help out the community which is extremely appealing to
community members .Public relation will be essential for the café to be successful. So
customer awareness is the first step in promoting a new business .Promotion objective will
consist of creating consumer awareness generating interest and desire and moving the
customer to make a visit to the café .Strategies for making consumer aware of the café will
include advertising and hosting a grand opening offering free sample of tasty treat at the
grand opening may lead to both customer interest and desire .As the customer try the
delicious delight they will be encouraged to make future visits to the café .By simply building
customer awareness interest and desire ,customer visit will increase .

PLACE
This component of the marketing mix determines the venue at which the customer can
access the location of the café easily. However there are various place or café in the cities or
nearby location, in this case Chillax Café is in the main place or location where to reach
target customer .On the otherhand the customer are allowed to place their orders online so
they could get their food and beverages at the place where they stay . The customer can
place their reservation . This refer to how an organisation will distribute the service they are
offering to the end user. Chillax Café is beginning as a little café. The objective of the
business is to continually grow.
The internet is an extremely efficient way to expand the business so the café will develop a
website in which a customer can place orders . Customers will then pick their orders or the
café will deliver it to their location. Doing so will not only increase the number of consumers
that will be able to access the business.

PROCESS
Chillax Café follow a standard procedure as most of the café around the world. Each outlet
of the CHILLAX CAFÉ will have a very nice seating arrangement. As the customer enter the
outlet and make themselves comfortable the menu card is presented to them by an
employee working in the café .The employee makes sure that each customer is treated
politely and with a smile. After taking the order the employee makes sure that the product
asked by the customer are made available to them in the optimum time ensuring good
quality. The last process is of paying bills for the products. Chillax café use a wide online
payment, credit debit card etc. There is a self service counter also.

PEOPLE
Chillax Café globally focuses on its people I.e Employee and customer. The employee of the
café are trained to follow a highly professional and ethical code with its customer. Chillax
Cafe will treat every customer with high regards. Also the employees will be very well
trained in communication skills as they have to be deal with variety of people.
 Employee of the chillax café will also interact with customers in regional language along
with English as their main language to make its customer feel more comfortable and friendly
Also ,employee all over will wear same colour uniform which will be in traditional way.

PHYSICAL EVIDENCE
Customer will patronize the café based on what they see and perceived of it.The look and
feel of the café outlet will be comfortable .The decorations and wall images are inviting .The
words on the café’s menu and phrases are visible and customer are able to comprehend the
message being passed across.

The design of the café is sophisticated ,unique but homey .The ambience in the café will be
relaxing with colour scheme ,the choice of furniture and the plants that can be seen around
the café . It can be perfect for meetings and hanging out with friends and family .The design
of the building and interior itself will be in a unique way that attract the customer .The
promotion,the packaging will be use in a unique way.
Chillax café will feature traditional/international dishes,and superior service. our food will
be the finest quality and prepared exotic flare. Customer satisfaction is a driving force
behind our success.we will change our menu every 6 months and the design and feature of
the café will change after 6-7months. The kitchen staff will have the best in education and
work experience.Their creative talents will compliment one another.The staff will offer the
finest service in a electic atmosphere and offer customer and extraordinary experiences.
 HOT STUFF(COFFEE & TEA)

CAPPUCCINO ₹ 100.00
ESPRESSO ₹ 100.00
CAFÉ LATTE ₹ 50.00
CARAMEL MACCHIATO ₹ 80.00
CAFÉ MOCHA ₹ 100.00
HOT COFFEE ₹ 50.00
AMERICANO ₹ 100.00
BLACK TEA ₹ 20.00
LEMON TEA ₹ 30.00
SPECIAL TEA ₹ 30.00
MASALA TEA ₹ 30.00
GREEN TEA ₹ 50.00
CARDAMON TEA ₹ 20.00

COLD STUFF(SHAKES & TEA)

CRUNCHY OREO SHAKE ₹ 150.00

VANILLA ROCK SHAKE ₹ 150.00
BERRY DELIGHT SHAKE ₹ 150.00
TWIST AND SHOT BROWNIESHAKE ₹ 150.00
CAFFE RAPPE ₹ 120.00
CHOCOLATE STRABERRY SHAKE ₹ 120.00
HOT CHOCOLATE ₹ 100.00
COLD COFFEE ₹ 80.00
LEMON ICE TEA ₹ 50.00
ICE MOCHA ₹ 100.00
ICE LATTE ICED AMERICANO ₹ 100.00
 MOCKTAIL
VIRGIN MOJITO ₹ 100.00
BLUE MOJITO ₹ 100.00
FRESH LIME JUICE ₹ 70.00
RED BULL ₹ 90.00

SOFT DRINKS ₹70.00

MINERAL WATER ₹ 20.00
GREEN APPLE ₹ 80.00

DESSERT

CHOCOLATE MOLTEN CAKE ₹ 120.00

HOT FUDGE BROWNIE ₹ 120.00
DEEP FRIED OREO ₹ 150.00
BANANA SPLIT SUNDAE ₹ 120.00
WARM APPLE CRUMBLE ₹ 120.00
MISSISSIPI MUD PIE ₹ 150.00
CHIOCE OF ICE CREAM ₹ 80.00

BURGERS
CRUNCHY BURGER
VEG/NONVEG ₹ 200.00
CHEESE BURGER ₹ 200.00
MEET BURGER ₹ 170.00
PINE APPLE BUN BURGER ₹ 180.00
ITALIAN BURGER ₹ 200.00
DORITOS BURGER ₹ 200.00
BBQ POTATO CHIP BURGER ₹ 220.00
CHILLI CHEESE BURGER ₹ 210.00
 STARTERS

ONION RING ₹ 80.00

VEGETABLES STICK ₹ 120.00
CHICKEN WING ₹ 150.00
CAJUN CHICKEN FINGERS ₹ 180.00
CHICKEN QUESADILLAS ₹ 200.00
DEVIL CHCICKEN ₹ 200.00
CRISPY POTATO ₹ 100.00
FRIENCH FRIES ₹ 50.00
CRISPY BABY CORN ₹ 120.00
GARLIC SHRIMP ₹ 180.00
VEG POKARO ₹ 80.00
CHICKEN POKORA ₹ 120.00
EGG POKORA ₹ 100.00
CHEESE ROLL ₹ 150.00
EGG ROLL ₹ 80.00
CHICKEN ROLL ₹ 120.00
VEG ROLL ₹ 70.00

TRADITIONAL CUSINE

PHANSAW,TUNGTAP,JHURIM ₹ 150.00
PUTHARO ₹ 20.00
PU-MALOI ₹ 20.00
PUKHLIEN ₹ 20.00
PUSLA ₹ 20.00
JA -SHULIA ₹ 20.00
SHRIEW +HONEY ₹ 50.00
SHA SOH-DA-NEI(ELEPHANT
'APPLE ₹ 60.00
SHA PHLANG-JEW(LEMONGRASS) ₹ 60.00
SHA SHIAH
KROT(SIMILAR_FEROX ₹ 60.00
SHA SLA SHIRA(PANDAN LEAF) ₹ 60.00
JADOH SNAM ₹ 30.00
SHANA NEI IONG ₹ 30.00
UMSOH BRAP ₹ 60.00
 PRODUCT MIX
Product mix also known as product assortment ,refers to the total
no.of the product lines a company offers to its customers.So chillax
café offer three product lines i.e beverages ,snacks,traditional food .
Chillax café aims at satisfying and surpassing its customer’s
expectations better than its competitors .The table below show food
and beverages the café has developed to satisfy its customer
SNACKS LEMON TEA
CHICKEN HOT DOG PUFF HOT CHOCOLATE LATTEE
CHOCO BROWNIE TRADITIONAL FOOD
CHOCO DOUGHNUT JADOH
COOKIES DOHKHLIEH
MOCHA MUFFIN PUMALOI
CHICKEN BURGER BAMBOOSHOOT
CHEESE SALAD PUTHARO
GARDEN SALAD PUDOH
VEG BURGER PUSAW
CORN PUKHLIEN
BEVERAGES SHRIEW
CAFÉ LATTE PHANDIENG
CAFÉ MOCHA PHAN KARO
CAPPUCCINO
MOCHIATO UMSOH PYRSHONG
BLACK COFFEE DOH SNAM(BLOOD SAUSAGE)
ESPRESSO COFFEE RICE BEER
COOL BLUE
MANGO SHAKE
LYCHEE CHILL
STRAWBERRY SHAKE
GREEN APPLE SODA
LEMON JUICE
 POSITIVE IMPACT OF THE CAFÉ
PRODUCTS

Freshness and Hygiene

Customers expect the café to served a freshly brewed proucts.
Customer expect to enjoy the art of the visible preparation process.
The chillax café will ensures that the management will prepared and
served under the hygienic conditions to satisfy customer and
promote a beneficial relationship.

MENU VARIETY
Chillax café offers beverages and food options in all its outlet .This menu cuts
across all diet type ,including vegetarian,non vegetarian and low calorie
options. The café understand that every customers is unique and continues to
improve on the menu base on research and customer feedback.
TAKE HOME EQUIPMENT
There is a stand at every outlet which offers take home equipment such as
branded tea cups, mugs, traditional things,etc at affordable rates. Chillax café
will make customer delighted because they do not need to get to the market
to purchase such products.
AVAILABILITY
Customer are able to demand whatever they require on the menu at any point
in time. The café will avoid running out of orders.
QUALITY
CHILLAX CAFÉ ensures that it gives customer value for their money based on
the quality of the products that offer.

PRICING MIX
 Chillax café understands that pricing is an important factor in a customer’s purchase
decision. The strategy is to charge lower than the competitors ,to possess a greater market
share. Pricing , as an element of the marketing mix ,is a proof of the goods and services
rendered to a customer by the café …….

POSITIVE IMPACT OF THE CAFÉ’S PRICING

Affordable
Chillax café will attract a large numbers of customers. It will offer affordable prices of its
products.
Discounts
In order to promote sales , customer are encouraged to purchase a café citizen card. It
entitiles them to 10% discount on products and seasonal gifts.
Chillax café will Offer special students discounts ,free coupons at student events and offer
entertainment on weekend. Discount coupons will be distributed to the regular customer

PLACE MIX
CAFÉ outlet location,means of transportation of products,and product distributors ,all make
up the distributiin channel. An effectives distribution channel of café ensures that goods and
services are delivered to agreed location at an agreed time an in agreed quantities.
POSITIVE IMPACT OF THE CAFÉ

Easy accessibility
The Chillax café located in the area where is the main tourist spot where all the tourist
,local people etc will be easy accessible.

PROMOTION MIX
Promotion mix is the means by which customers are made aware of the available products
and services chillax café offers. Advertising is an important aspect of this mix.
POSITIVE IMPACT OF THE CAFÉ
 Blog
A blog will be set up to receive customer feedback on its products and services to consider
areas of improvement. Customer will express their true feelings about the products offered
and services rendered

Internet advertising
The different menu options and services offerd at chillax café will be advertised on social
media like wats app, facebook, Instagram, twitter ,website of the café to create futher
awareness to customer .

Text messaging/mailing list

The café will collates a database of customers by handing out forms from time to time as
customers come visit the café. As a results ,the café will send out frequent
newsletters,textmeassging and emails, informing customer of recents development.

SEGMENTATION

Segmentation is the process of dividing a market potential customer into groups, or

segments based on different characteristics. The segment created are composed of
consumer who will respond similarly to marketing strategies and who share traits
such as similar interest, needs or locations
Chillax café will focus its marketing activities on reaching the tourist, the students
/teenage, people working in offices, hotels ,local residents,l ocal business people
located nearby the café .our market research shows that these are the customer
groups that are most likely to target .These groups are potentially strong customer
segments. The benefit of the mix customer is that it helps maintain consistent
business throughout the year. As we know tourism is strong all year in
Cheerapunjee, especially during summer season,as student population is not that
strong during the summer. The other customer segment(local residents ,local
business) are provide a consistent foundation all year long .
As we know segmentation are based on four types :
 Demographic segmentation
 Psychological segmentation
 Behaviorable segmentation
 Geographic segmentation
Demographic segmentation :is the process of dividing the market into segments based on
things like ethnicity ,age,gender,income,religion,family,and education .The demographic
segmentation of Chillax café based on:-
 Occupation:employed,self-employed,student,retired,housewife ,business man
&women and other.
 Age:youngsters,singles,couple,college student,high school student. mostly target
customer above the age 16-60.
 Family unit:we will also appeal to families(young families)with children.
 Gender:we target both sexs and other
 Income :we will appeal both to the medium and low medium income.

Psychographic segmentation: group people by their pshycographic profiles which

based on personality traits , value and lifestyle.
 Personality traits: every customer have personalities .chiilax café or
competitors all have personalities that created intentionally or
unintensionally. So chiilax café will often create these personalities to match
the personality traits most attractive to the target customer.By learning
about the personalities traits of the target segment will help refine the café
personality and also help to expressed and create more committed and loyal.
 Lifestyle :we all have different lifestyle patterns that reflect many factors
,including stage of life.our wants and needs change based on those patterns.
Segmentation by lifestyle consider where the customer or clients in their
 lifecycle and what is important to them at that exact time. So chiilax café will
promote their products and services as solution to those wants and needs
and made more credible

Behaviorable segementation : Group of people by attitude,knowledge ,usage of response

to a product. Occasion,benefits ,user,loyalty and usage status

Geographic segementation: Group people into countries, regions, municipalities, cities

and neighbourhoods. Our geographic include people from the local branch area,
neighbouring cities,and tourists from other cities and states.
 TARGETING SEGMENTATION

Chillax café will cater the people who want to get their daily cup of great coffee or great
tasting of snacks, drinks in a relaxing atmosphere. Such customer vary in age, although are
in the main spot of tourism where different people /tourist visted thats mean most of the
our client will be tourist from different states /countries. Our market research shows that
these are the discerning customers that grativate towards the better tasting of the coffee,
drinks, snacks etc. Our other target customer are of the teenage/students from nearby
town/cities /neighbour. As a lot of teenage or college students consider a café to be a
convieniet studying or meeting location, where they can read or meet with peers without
necessity to pay cover charges. Students represent an excellent customer segment for
several reason. Students bring an energy and youth to the café. By attracting students we
generate excellent word of mouth For us ,this will provide a unique possibilty for building a
loyal client base.
Chillax café intends to cater a wide group of peple . we want everyone to feel welcome and
relaxed in a cozy atmosphere with a wide and varied menu. It is our goal to have”something
for everyone’everyday on our menu. We have defined the following group above as a
targeted segment. The chillax café will have an intimate,romantic,sophisticated atmosphere
that encourages people to bring dates and to have couples arrive. Chillax café wants to be a
search place where people meet each other and develop a network. The perfect place for
family. Families will come for the accomadatives menu and friendly service . the excellent
value in their meals will keep chillax café in favour with parents. Chiilax café will attract the
singles ,students teenage with our décor and layout. Our excellent service and engaging
clientele ,evening events will confirm the feeling of being in the coolest place. As we all
know cherrapunjee ia a place that attracts many vacationers during summer months . chillax
café will be destination with its attractive atmosphere,menu,and outdoor patio.
We focus on these specific groups because these are the types of people who frequent
other café or restaurant in the area. The are the ones that are willing to spend their money
on good dinning and service at a value & affordable price.

POSITIONING SEGMENTATION
Positioning is the place that occupies in consumer’s mind relative to other products .
So Chillax café will be differentiated in the consumers mind relative to local
competitors is that we good quality for lower price. We will difeerentiated the café
by offering an experience unparalled to the competition like the food we offer im the
café will be like a home.all the mugs &cups n plates and everything around them will
be different ,but hold the same amount amount like your own home. There will be
bookcases that customers are encouraged to take from and read a book as well as
 magazines. Also there kids section for parent to put their kids so they can realx and
make comfortable amd enjoy the view and food we offer.
We will be implement the positioning strategy of offering a comparable quality for a
lower price or the same for less .This strategy will work if we offer the better quality .

USP (UNIQUE SELLING PROPOSITION)

The Chillax café Unique selling point or proposition is one thing that is truly different from
other. It make it very specific and meaningful that will tell the customer loud and clear. The
chillax café will advertise it ,put in the wall,on the table,print in our business card ,receipts
and be proud of it.
 A significantly higher quality ,better tasting product.
 Our current location be considered the best in the market
 An ambiance superior to all other café or resort nearby
 The chillax will provide regular weekend evening entertainment
 Our internet website will include sales of chocoalate,gift items and gift basket
 Friendly staff
 Affordable
 Chillax café will consider customer suggestion
 Focused on customer value
 An extraordinary contemporary café design

COMPETITIVE ADVANTAGE
The strongest competitive advantage of the chillax café is that chillax café would not
comes from what we offer ,but how we connect with the people/customer around.
Employess as a competitive advantage as we know employess are the face of the
company. The chillax café will have that culture that create internally that will becomes
a reflection of the culture of the guests experience while thay are at the café . the
owner of the café will keeping a full and happy staff with engagement.when employees
engaged ,they’re more loyal. When the employees are at the café know the mission
and vision,they see the success as their success too. The owner will make a stronger
connection to employees,the stronger their connection to guests. For the café ‘s
competitive advantage to be susitainable ,it wiil be difficult for competitors to imitate
and achieve. Chillax café will create a unique experience for the guests/customers just
in the way to treat them,will offering something while competitors is not. Chillax café
will keep the menu pricing affordable but offer superior food quality and presentation.
Porter’s 5 Forces

So what are they?

The Five forces are:

● Threat of new entrants
● Threat of substitutes
● Bargaining power of customers
● Bargaining power of suppliers
● Rivalry
These are the five competitive forces that shape every industry, and helps determine
an industry's weaknesses and strengths. This model was developed in reaction to
SWOT analysis which many people felt was not rigorous enough.

Threat of New Entrants

The force of new entrants into a market affects a company's power. It measures how
easy or difficult it is for competitors to join the marketplace in the industry being
examined. The easier it is for a competitor to join the marketplace, the greater the
risk of a business's market share being depleted.
 There will always be a continuous pressure for chillex cafe to respond and regulate these
new competitors.
 The easier it is for new competitors to enter the market the more competition there is
within the market.
 This should not be a problem for chillex cafe as they have a large number of market
share.

Bargaining power of Suppliers

This force addresses how easily suppliers can drive up the price of goods and
services in other words how much power a business's supplier has and how much
control it has over the potential to raise its prices, which, in turn, would lower a
business's profitability because a supplier to gain a profit will try to increase its selling
price which thereby would cause an increase in the cost price thereby decreasing
the profits. In addition, it looks at the number of suppliers available: The
fewer there are, the more power they have .

 The brand has its own supplier diversity policy that it uses to select the supplier.
 The brand sources raw material ethically from several parts of the state.
 It is also growing with the farmers directly that has helped it gain higher control over it
supply chain.

Bargaining power of buyer

This specifically deals with the ability of customers have to drive prices down. It is
affected by how many buyers, or customers, a company has. Consumers have power
when there aren't many of them, but lots of sellers, as well as when it is easy to
switch from one business's products or services to another. The smaller and more
powerful a client base, the more power it holds. Buying power is low when
consumers purchase products in small amounts and the seller's product is very
different from any of its competitors.

 The size of individual purchases is small and so single buyer do not hold enough
influence.
 It’s the coffee brand has a diverse customers base.
 Its customers are mainly quality sensitive and willing to pay higher price for premium
quality product.
Threat of Substitutes
The substitutions that can be used in place of a company's products or services pose
a threat. For example, if customers rely on a company to provide a tool or service
that can be substituted with another tool or service or by performing the task
manually, and this substitution is fairly easy and of low cost, a company's power can
be weakened.

 The number of substitute product for the chillex cafe are high.
 From tea to juices and alcoholic to non-alcoholic beverage available in the market.
 The pubs and restaurant that provide both ambience and quality product.
 Another source in this area are the homemade product that the consumer can make at
home.

Rivalry
The importance of this force is the number of competitors and their ability to threaten
a company. The larger the number of competitors, the larger is the rivalry. This force
examines how intense the competition currently is in the marketplace, which is
determined by the number of existing competitors and what each is capable of doing.
Rivalry competition is high when there are just a few businesses equally selling a
product or service and when rivalry competition is high, advertising and price wars
can follow.

 There is a monopolistic competition in the industry and number of firms competing for
market share is high.
 The entry and exit barriers are small.
 It has high market share as followed by Dunkin and McCafe.
 The industry has matured and growth rate has moderated as a high numbers of players
are competing for market share.
Idea generation process

What is it?
 INDUSTRIAL ANALYSIS
As we know the weather in cheerapunjee so the local climate with a long rainy
season is very conducive for the consumption of hot non alcoholic bevareages , cold
drinks ,snacks etc .At the same time ,hot dry summer drive people into café to order
iced drinks etc which they can consumed in a relaxing environment.

COMPETITION AND BUYING PATTERN

Chillax café direct competitors will be the other restuarants /resort located near the
location. These include like Jiva resort, Polo orchid etc. However the customer favour
smaller, independent establishments that offer cozy atmosphere and good tea,
coffee, drinks, snacks etc at affordable prices .
Chillax café will position itself as a unique café that not only offers the best tasting
coffee, drinks, snacks etc but also provide home like cozy and comfortable
environment. We will cater to customer bodies and minds ,which will help us grow
our market share in this competitive market .

BUYING PATTERN
The major reason for the customer to return to a specific café is a great tasting
coffee, tea, drinks ,snacks etc quick service and pleasant atmosphere .Chillax café
will price its product offering competitively and affordable. We strongly believe that
selling with great service in a nice setting will help as build strong base of loyal client .

STRATEGY AND IMPLENTATION

Chillax café marketing strategy will be focused at getting new customer retaining the
existing cutomers. Establishing a loyal customer base is of the utmost importance
since such customer core will not only generate most of the sales but also will
provide favourable refferals.Te chillax café uses strategy of total quality in product
and services. Our promise is in our location , the product we sell, the people we
attract and the atmosphere we create.

SALES STRATEGY
Chillax café will handle the sales trasactions.To speed up the customer service ,
atleast four employees will serving while two employee will be preparing the
customer order and the other one will be taking care of the sales transaction .All
sales logged on the computerize point of sale terminal will be later analysed for
marketing purposes.
In order to build up the customer base,chillax café will use banners utilize customer
referrals and cross promotion with other business in the community .At the same
time ,customer retention programs will be used to make sure the customers are
coming back and spending more at the café.
Chillax café will hiring a good attitude so that there will always a friendly enthusiastic
staff to make customer feel welcome constant staff training to assure the best
quality possible. Reduce customer waiting time ,take customer feedback to
constantly improve the business.

SALES FORECAST
Food cost are assumed at 30%for beverages and 30% for light snacks,40% of
traditional food .As we know it’s a tourism will dictate certain sales seasonality with
revenue slightly decreasing during the winter periods .we are forcasting an average
of 350 customers per day.

MARKETING PLAN
Chillax café will employ different marketing tactics to increase customer awareness
of the café. Our tactics will offering a high quality product and service in a superior
environment .An element of our differtiation from other will use of advertising and
marketing to gain awareness build customer traffic and establish a strong brand
image. We intend to create immediate customer awareness and not wait for word of
mouth .Launch marketing will promote aware ,build traffic and establish brand
image through public relations,local print and broadcast media,design and
packaging,superior location,etc.The goal of the public relation is to achieve and
establish the brand on wider scale. The cheapest and most effective of our
marketing programs.
Word of mouth:-
 We will host a V.I.P dinner before the grand opening. This will serve the dual
purpose of training our staff and introducing ourselves to the community.
 Grand opening celebration
 Once a month invite new local artist to show their work
 ‘’Saturday Night”-every Saturday night we will have special evening for the
café people. A perfect night for the local area’s area,café owners and staff to
get togethere on night off!
 Valentine’s Day
 Easter Dinner
 Christmas eve
 New Year
 Memorial Day.
 SWOT ANALYSIS
The swot analysis of chillax café discuss the strength ,weakness ,opportunities and
threats for leading the café.

Strength in the SWOT analysis of Chillax café

 Products of extreamly good quality and taste:- The chillax café menu will be
unique and the customer will just love the food ,drinks we served. Besisdes
this Chillax café will give an offer to regular customer and change the menu
from time to time
 The USP is affordable with comfort:- The Chillax café allow the customer to
set in the café and no one will ask them to leave. The comfort is a major USP
of the Chillax café. At the same time the menu is affordable so that customer
will come from time to time to have their comfort time in the café.
 Location:- Chillax café is located near seven sister falls cherrapunjee .It had
good view where customer can see the beauty from the café itself.
 Chillax café will have goals and strategies to run in the market.
 The team will attracted to build and manage the café.
 Hygienic food and quick service.
 Good advertising and marketing.

Weakness in the SWOT analysis of chillax café

 Poor consumer confidence ,uncertainity and pessimism in new start up as

chillax is new café in the market are not valid but also fueled by the media
and competitors marketing.
 Established new café can take away or limit our potential customer given
their goodwill and customer rapport.
 As Chillax café is new café potential consumer and customer have not heard
of our delicious exotic flavours of the products,so proper marketing will need
to established to assure our demographic knows and understand our
products.
 Negative publicity arise.
 Opportunities in the SWOT analysis of Chillax café

 Introducing more products and better items in the menu

 Better interiors:-Chillax café focus to maintain standard in the interior
of all outlet that it has .chillax café focus on the quality too.
 Good ambience and décor:- Chillax café will focus and in good
ambience and décor as it willattract customer . so it’s a good
oppoertunities for the café as the customer will feel relax and
comfortable.
 The proper use of internet will allow us to market our café to a
greater number of potential customer
 Ability to innovate
 Potential rapport with our customer can lead to increase in market
due to customer loyalty and word of mouth marketing.
 It will be first café in the location so it will be an opportunities to
make more profit.
 Local competition is not open late and opening for later hours can
lead to increased market share for the café.
 Improve product line
 Venture more into home delivery.

Threats in the SWOT analysis of the Chillax café

 Competition:-Chillax café will have a lot of competition especially with
other restaurant ,resort nearby
 Weather :- These affect seasonal business that depend on good
condition.
 Health conscious people
 The rising price of special ingredients like cheese etc used in foods

The chillax café will suited to tackle the threat and manage the
weakness of the business. It will exploit the opportunities presented
and rely on the company and founders strengths to proper the
business into suitable profitability.

PESTLE ANALYSIS OF THE CAFÉ

PESTLE is the abbreviation of political ,economic,social,technology
enivironmental and legal factors. PESTLE analysis is good technique to
find out the opportunitiesand threaths of the café. Once having a
 complete picture of the external environment factors that can affect
the business .The café will take a decision according to the situation.

Political factors
Political factors can greatly influence the café . the factors like tax
reforms or Health and safety guidelines. These regulations can
possibly affect the café business. The café will appropriate decision to
minimizethe impact of such regulations. From purchasing,cooking and
packing to delivery the chillax café is responsible to take care of food
products.

Economic factors
If the inflation rate increase in the company where the café is
operating,then it will afeect the price of the ingredients. The menu
prices will go up and most of the time people avoid to order food
from the café. So the Chillax will try to manage the price if there is
inflation rate .

Social factor

There are several social factors that can affect the café negatively and
positively. Nowadays people are more helath conscious so it will
affect the café menu. Chillax café will try their best to manage the
menu for those people who are more conscious of helath so that it
won’t affect the café.

Technological factors
Rapid technology advancement and change can impact the café
business for sure. So the chillax café are trying to find more solution
by installing CCTV camera control with mobiles phones .

Environmental factors
Both internal and external environment of the café is very important to consider.
The Chillax café will have place some indoor plants and take care of cleanliness on a regular
basis and the external surroundings will clean and hassle free so that customer can easly
reach to the palce.

Legal factors
Legal and local bodies can influence the café business. These regulartory authorities
frequently visit the different areas of the restuarants like kitchen and store to check
different food items quality and expiry ,staff and other hygiene condition.
Business layout
1) Key partnership:

Farmers
Supermarkets
Staff
Online food delivery service

2) Key activities:

Establish chillex café

Employment local community
Advertisement

3) Value proposition:

Will deliver healthy vegetarian and non-veg fast food

Help to get easy and cheap healthy fast food
Help our local community with new business opportunities

4) Customer relation:

Establish a ground customer relationship for word of mouth

Loyalty program

5) Channel:

Social network
Word of mouth
Family and friends
Email, phone
Advertisement in local newspaper and gym

6) Customer segmentation:

Vegetarian and non veg

Tourist
Health conscious
General public
7) Key resources:

Sources of raw food ingredients

Premises
Tourist places

8) Cost structure:
Main cost: shop rent, ingredient, staff, parking and advertisement

9) Revenue streams:
Customer who visit the tourist place near by
Customer who need cheap and healthy food
More variety of food
Quickly prepared fast food
Expansion of café
 FINANCIAL PLAN

SL NO. DESCRIPTION QUANTITY RATE AMOUNT(YEARLY)

1 Priliminary expense 500000

2 FIXED COST
Land 0wned
Building 100000
Furniture 20000
Interior 15000
Machinery 10000
Kitchen quipment 100000
Printer\scanner 1 12000
TOTAL 257000

3 WORKING CAPITAL
salary&wages
Manager 1 4500 54000
Helper -1 2 2000 48000
chef 1 6000 72000
Helper -2 1 1200 14490

TOTAL 188490

4 0THER EXPENSE
Stationary 5000
Electricity bill 800 9600
Repair &
maintenance 5000
Decorations 500 5000
RAW MATERIALS
vegetables 10000
Other materials 19000

TOTAL 53600
SL NO. SALES AMT.(MONTHLY) AMT.(YEARLY)

5 EXPECTED SALES

SEASON
APRIL 3000 90000
MAY 4000 124000
JUNE 4000 120000
JULY 5000 155000
AUGUST 3000 93000
SEMPTEMBER 5000 150000
OCTOBER 4500 139500
871500

OFF SEASON
NOVEMBER 1500 45000
DECEMBER 1000 31000
JANUARY 1000 31000
FEB 1000 28000
MARCH 1000 31000
166000

TOTAL SALES 1037500

AMOUNT

COST OF
PRODUCTION

FIXED COST 257000

WORKING CAPITAL 188490

TURN OVER
SALES 1037500
LESS:cost of
production 445490

TOTAL 592010
 FUTURE PLANS
 Offer special students discounts ,free coupons at student events and offer
entertainment on weekend.
 Discount coupons will be distributed to the regular customer
 Sell catalog as in the catalog it will show what its there in the café and future plan
the upcoming events
 Sell somthinf memorable that will remind about the café
 National awareness will help the expansion by generating opportuinties by the
media and familiarzing people the brand name.It will help set the stage for future
brand identification
 Design style
 Community involvement :we will make ourselves an intergral part of the local and
world community .This will generate goodwill ,create opportunities etc
 Take an active role in the community
 Invite the local charities to café as complementary ,by helping in raising funds
activities
BUSINESS CARD