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Topic Introduction Executive Summary Organizational Hierarchy Marketing Objective Market Analysis Market Strategy And marketing Mix Sales strategy Innovative Marketing Strategy Break Even Financial Analysis Economic Feasibility Summary
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INTRODUCTION BUSINESS PLAN: (FOOD COURT)
WE ARE PLANNING TO SET UP A FOODCOURT IN BANGALORE CITY WHICH OFFERS DEEP ASSORTMENT OF TRADITIONAL VARIETY OF CUISINES AVAILABLE IN VARIOUS PARTS OF COUNTRY UNDER ONE ROOF. EXECUTIVE SUMMARY: We will be starting novel concept of food court in Bangalore. We have chosen to enter particularly to restaurant segment because as per BIRD OF GOLD report by McKinsey Global Institute Indian middle class household will swell from 50million to 583 million by 2025.Implies household have more disposable income and shift towards discretion spending. As per CII estimate 2009 because of increase of rising per capital income Food industry will grow to US$310 billion by 2015. Food Industry is growing at the rate of 13% estimate CSO (Central Statistical Organization) Thus there is a huge market potential and no player has tried to offer this concept of serving variety of regional tastes under one roof. This place will provide a traditional taste and traditional environment means ambience of particular food court will resemble to that of the place from which it belongs, e.g. (Punjab with vibrant surrounding representing euphoria feeling, Kerala with majestic and natural beauty of beaches and high tech global standard facilities). It’s a unique combination in its own concept. After enough market research, we have found that people miss food from their native places. They want a place where they can enjoy their native place food. The food court is all about catering to need of these types of customers. We will acquire half acre of land strategically located to be easily accessible for the customers residing in Bangalore.
20 cooks. 2 Crores which utilizes 10000Sq.) . of area (at Rs 2000per sq Ft. We will be repaying loan with an EMI of approximately Rs nine lakhs per month . 2.Total estimated cost of land is around Rs. 40 assistant workers to cook. .Remaining space would be used properly to present landscape beauty and to engage children for entertainment.The loan would be repaid over five year’s period. For day to day working several staff will be hired on monthly salary for various positions which include from sweeper. to a head for the food court supervision. They will be responsible for managerial decision making. We plan to hire roughly 10 Assistant manager. 1 crore and Bank loan of Rs.5 Crores (at Rs.per Sq. We will be able to breakeven in 3 years of time.). Ft. Initial project cost would be Rs 5 Crore. ORGANIZATIONAL HIERARCHY There will be 3 Functional heads for this firm who will be handling various managerial positions. 50 other helper boys for cleaning and taking order and for service. Ft. to accountant. 1150/. 4 crore. Contribution by Promoters will be Rs. to cook.Construction Cost Rs. to clean boy. to assistant manager.
utilizing the highest levels of corporate & with dedicated employees and partners … Mission: To provide integrated food management support and solutions for our partners … So that every customer gets highest level of food quality & outstanding service in a hygienic & fun dining environment .Vision: To constantly innovate & provide the best that we can for our customers … To be recognized as pioneers in the multi-brand food court management.
The feeling of being in their native place while dinning is itself a pleasure experience which gives us an advantage over others.Since we need expertise staff and to find and retain it is very difficult because of the competition in the market. which will be particularly vulnerable in one year. To become Market leader in Bangalore. Limited personnel: .Preliminary estimates of sales and expenditures suggest that it will remain financially stable. Ambience of place: .Our food court will be placed in such an area which can be easily accessible from all part of city.MARKETING OBJECTIVE To achieve annual growth sale of 25%on yearly basis. Will face stiff competition from local players. WEAKNESS Lack of experience: Food court is a start up and the odds are laced against it. However unforeseen expenditure or poor sales will threaten cash position. SWOT ANALYSIS: STRENGTH Location: . . Experienced staff: . To form strategic Alliance with.Our hired expertise staff helps us in providing quality food service to our customer. Financing: . Haldiram because we are sensitive to diverse need of customer.
Also local players are a threat to our business since they are also competing for the same market share.restaurants market is growing at a fast speed and demand for quality food is never ending.because of the experienced and expertise staff we can deliver quality food products. THREATS Local Competition (existing and potential): There are firms which specialize in this concept of food court. unforeseen or unanticipated economic recession would reduce disposable income and threaten our food court sales. Economic downturn: The strong domestic economy has been good for the Food and hospitality industry.Opportunities: Growing market: . however. Potential to become a premier food provider: . Also the use of technology like Surface technology on table makes it quite innovative and a new experience. . Continued growth is anticipated.
near IT park MARKETING STRATEGY AND MARKETING MIX .5 2. taste. location.5 3 1 3 Service 3 2.Traditional Food with deep assortment and global standard services under one roof. Mast kalandar Woody’s Shanti Sagar A2B Food Quality 4 3 2 3.5 Price 2.5 3 3 3. Business man. Corporate Behavioral: To build loyalty program with target customer. Income: Our target customer will be seeker (2lac-5lac per annum).5 2. Positioning: . and price. ambiance.MARKET ANALYSIS Market Segmentation: .5 Customer 0 0 0 0 Relation Program Doddaballapur road. striver (5lac -10lac per annum Occupation: Professionals.5 3 Location 3 3 2.5 Ambience 3. Competitive Analysis :( On a scale of 1-5) (Questioner asked from sample of fifty people within age group 25-40 years) This analysis is done on various food joints on the parameters like food quality. Target Customers: Age: Our target customers are family members within age group of 25-40 years.
we will offer special Flavor Thali meal at reduce price.. PRICING STRATEGIES: Price: We will be using VALUE PRICING STRATEGY offering just right combination of quality and good services at fair prices. FLAVOUR OF INDIA itself is a food court and has more than 15 food brands under its umbrella that offers a perfect cuisine-mix with an array of food variety to its customers! The brands may be as follows: Price: .PRODUCT MIX Product: We offer deep assortment of traditional food from different Regions of country under one roof .We will offer global standard services and rich ambience. Product bundle pricing: We will combine several products and offer bundle price at reduced price e.g.
. newspaper.One or two products in each section will be kept at low price to attract the customer . and magazine). Objective of Promotion: To ensure awareness. Advertisement through local media network (cable. We will be Using Buzz Marketing (attracting opinion leaders) and word of mouth publicity.The product whose price is reduced should be price elastic to pull the customer toward the food court. We will be giving important consideration for spending on promotional budget. preference and conviction for the concept. Promotional Strategies: 1st Stage To ensure awareness and knowledge among target customer. Promotion: We will be using Integrated Marketing Communication which will help food court to develop a consistent. Participating in food fest and organizing food fest competition. clear and compelling message which will be in sync with food court positioning strategy. Promotional opportunity: As with robust growth of economy per capita income is increasing and more shift is toward discretion spending. Next stage is to use promotional strategies to develop liking. knowledge about the food court concept to target customer. Other strategy is to focus on home delivery and corporate customers with the effective use of information system to reduce the timing for logistics. Last stage is to develop conviction and purchase for the selected target customer. Place: Our main focus is to pull crowd to food court by running promotional campaigns. Thus offering great opportunity to promote our concept to target audience.
TO target corporate office in the town and offering them special corporate prices. With the application of data base management system tracking customer purchase. Evaluation: Implement consumer feed back survey to selected target consumer to check success of IMC campaign on parameter like Branding. and Positioning after three month of promotional activities. . SALES STRATEGIES To generate majority of revenue for food court by pulling customer to food court location. Positioning Message: Our positioning message from every channel of media vehicle is going to promote traditional Food with deep assortment and global standard service. Image.2lac per year.Using SUBLIMINAL advertisement strategy in cinema hall to develop awareness of product. 2nd stage of strategy: Using direct marketing concept to reach selected customers via Email. frequency and preference to build customer loyalty program. To target carefully selected customer through DIRECT MARKETING using E-mail for better generation of revenue from Home delivery business. Budget: Budget would be Rs 19. Organizing cultural event every weekend to pull crowd to food court and develop liking and preference for the place.
access tourist places in Bangalore. famous goods produce in Bangalore . We will be using Microsoft latest surface technology computers with which customer will just have to put menu on surface of computer and will get all information regarding cuisine of his liking . PROMOTINAL STRATEGY: Installing kiosk in busy place like railway station .In addition we will be taking rent from them which will contribute to our miscellaneous revenue. Not only this they can pay bill by using their credit/debit card just moving card over surface of item order that display on computer surface screen.This would help us to cater diverse need of our target customer . STRATEGIC ALLIANCE: 1 Form strategic Alliance with Sweet Chariot. To greet Loyal customers on special occasions (marriage anniversary. advertising about food court and help any consumer to download song free of cost. frequency. preference etc. Haldiram. birthday anniversery).one option on the .All this activity help us to build loyalty program with profitable customer.INNOVATIVE MARKETING STRATEGIES Application of information system(Microsoft surface Technology Computers) In maintaining customer database on parameters like Amount of purchase. 2.This will substitute waiter role and help in cost reduction.majestic bus stand.
0website. Setting up web 2. We will be spending Rs 40.0 website which offers advantage better than web 1. We can use this site to offer wealth of information about nutrient content of our products. We will organize cultural programme every week to pull crowd towards food court.site provide wealth of information about assortment of product available with food court. 4.Customer can interact with site.000 per month on this activity. 3. provide their feed back and write blog about their experience in food court. .
We will break even at a Revenue of Rs 21.8 Cr .5 cr that we have spent on building and land. though we plan to repay our loan in a period of 5 yrs.BREAK EVEN ANALYSIS We plan to break even within a period of three years. Fixed cost of investment is Rs 4.
FINANCIAL ANALYSIS Year .2009 (All Figures in Rs) Cash Account Revenue To Capital To Loan from Bank To Cash Sales Total Expenses By land and Building By Purchase By Equipment Salary Electricity Insurance Consultancy Fee Stationary Legal Other Expense By Interest By Tax By Repayment of Loan By Advertisement By Balance Total 10000000 40000000 60000000 110000000 45000000 18000000 3800000 9000000 4000000 500000 100000 50000 10000 440000 4800000 5984748 5877292 1920000 10417960 110000000 .
Profit and Loss Account To Depreciation To other Expense To purchase To Interest To Advertisement To tax To Net Profit Total By Sales Total 2000000 15500000 18000000 4800000 1920000 5984748 11795252 60000000 60000000 60000000 Balance sheet Liability To Capital Loan Loan Repaid Loan to be Paid Profit Total Asset Land Building after Depreciation Cash Equipment Total 10000000 40000000 5877292 34122708 11795252 55917960 25000000 18000000 10417960 2500000 55917960 .
Cash Flow Statement Cash Flow from operating activities Paid to Suppliers(Purchase) Paid to office Expenses Paid for Advertising Sales Tax Cash flow from Investing Activities Land and Building Equipment Cash flow from financing activities Share Capital Loan Interest Repayment of Loan Net Cash -18000000 -15500000 1920000 60000000 -5984748 18595252 -45000000 25000000 -4750000 0 10000000 40000000 -4800000 -5877292 39322708 10417960 .
Year 2010 (All Figures in Rs) Cash Account Revenue To Balance To Cash Sales Total Expenses By Purchase Salary Electricity Insurance Consultancy Fee Stationary Other Expense By Repayment of Loan By Interest By Tax By Advertisement By Balance Total 10417960 72000000 82417960 22000000 10468000 5184000 450000 108800 54000 475200 7158567 3518725 12661723 1920000 18418945 82417960 Profit and Loss Account To Depreciation To other Expense To purchase To Interest To Advertisement To tax To Net Profit Total By Sales By Profit B/D Total 2000000 16740000 22000000 3518725 1920000 12661723 249954804 83795252 72000000 11795252 83795252 .
Balance Sheet Liability To Capital Loan Loan Repaid Loan to be Paid Profit Total Asset Land Building after Depreciation Cash Equipment Total 10000000 34122708 7158567 26964141 24954804 61918945 25000000 16000000 18418945 2500000 61918945 .
3. and 50 other helper boys for cleaning and taking order and for service.After successful implementation of plan we will be coming up with large scale up project. We have budget of Rs19. We have planned to hire three functional head for managing services. 2. We plan to hire roughly 10 Assistant managers.5 crore including 2. 20 chefs. marketing. The staff number is on higher side because we have to offer deep assortment of product every day to our customers and provide them with world class services.ECONOMIC FEASIBILITY 1Start up cost of acquiring land and building food court is Rs 4. As our revenue increases we can hire more staff depending on concept of Marginal Revenue per employee contribution. . We also have recruited marketing head to ensure successful implementation of plan that is to pull more than 1000 customer to food court on per day basis and more than 500 home delivery or corporate order from first month of operation. As we are introducing new concept of food court in Bangalore for the first time and our plan is to offer 20 different food sections presenting different state rich food culture. This scale up project of running 20 different food court and strategic alliance partners. We have not acquire more than half acre because this is our first pilot plan .5 crore&2crore respectively. and operation. area to provide world class services to customers and for rest of the space we have planned to maintain beautiful landscape to provide ambience and delight to customers. The salary expenses of staff and managers would be Rs 9 lacs per month. and 40 assistant workers to cook. In addition we will be catering home delivery and corporate customers. That is our main value proposition. So success of the plan would depend on how fast effective promotion campaign will pull crowd to food court location. We have estimated to breakeven in 3 years. We will be expecting 1000 customer per day from first month of our project. So this is the reason why we have acquired half acre land and built 10000sq ft.2 lacs per year on advertisement and promotion because our concept is new in the market.
SUMMARY We have introduce novel concept of offering deep assortment of traditional food with cultural ambience of surrounding and to match with world class Services. After successful implementation of our first pilot project in Bangalore . . We have done full proof analysis of financial status. On constructing food court complex to offer our customer ambience.we will be starting our project in other metro of country. ultra modern fitness center. We will be implementing many new market strategies to break through the clutter and emerge as leading player in fast food chain in Bangalore. We have plan to breakeven in three years. As we are spending Rs 2000 per Sqft. Spa. We will also scale up our project in Bangalore food court by utilizing unbuilt area for establishing Gaming center for children. To offer best taste in our recipe we have carefully recruited chefs from all parts of country.
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