Businessplanpresentation 091220042538-phpapp01
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Marketing plan

Marketing plan

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    Businessplanpresentation 091220042538-phpapp01 Businessplanpresentation 091220042538-phpapp01 Presentation Transcript

    • Make People Happy, Have Some Fun and Be Number 1! Yours Truly Restaurant. For AM & PM people
    • EXECUTIVE SUMMARY Blend of Italian, Chinese, continental and Indian. Located in the booming, and rapidly expanding city of Mumbai. Inspired menu from different countries Seven days a week Relaxed, friendly and correct service Hiring of experienced staff Venturing into the Catering business Total sales allocation to be 85% restaurant sales and 15% catering sales.
    • RAISING OF FUNDS Secured loans 40,000,000 at an interest rate of 10% Unsecured loans 20,000,000 at an interest rate of 6%
    • FINANCIAL SUCCESS We believe this will be achieved by offering high-quality service and excellent food with an interesting twist. Start-up expenditure Lease deposit 26,00,000 Furnishing and Interior 22,00,000 Support Equipments 20,00,000 Licensing 7,00,000
    • MISSION Great tasting food, but have efficient and friendly service Choice for all families and singles, young and old, male or female Employee welfare
    • OBJECTIVES Keeping food cost under 35% revenue. Keeping employee labor cost between 25-30% of revenue. Stay in the restaurant business with excellent food and service. Expand our marketing and advertising in neighboring cities viz. Pune and Nasik.
    • KEYS TO SUCCESS Unique and innovative fine dining atmosphere Great food, great service and atmosphere. Appeal to a wide and varied clientele. Public relations Controlling costs at all times without exception
    • Future Plan If the business is meeting its projections in an year than, we will start scouting for a second location and develop plans for the next unit.5 Year Plan 3 restaurants in different parts of the country like Delhi, Kolkata, Pune, Mumbai etc. Although the restaurant industry is very competitive, the lifestyle changes created by modern living continue to fuel its steady growth.
    • COMPANY DESCRIPTIONVision:Extraordinary dining experienceAim to be the best in the multi cuisine restaurant businessCompany ownership:Partnership between Shantanu Singh & Priyanka BabbarEach partner will have a holding of 50%Company location:Palm Spring Mall, Malad (west) - Link Road, Mumbai
    • COMPANY DESCRIPTION CONTD.Basic product offering : Italian, Chinese, Indian & Continental Healthy food (low fat, low cholesterol)Markets to be served: Students Couples / families Destination customers Working class singles Business persons Tourists
    • ENTREPRENEURSHIPFormalities & expenses: Registration of the company Licensing Furnishing Electrical Fitting Kitchen and Crockery InsuranceRisks & liabilities Not able to break even at the expected time Repayment of loan’s Unlimited liabilities of the partners.
    • Competition/Competitive AdvantageDirect Competition Kareems Lemon Grass Café MachanAdvantages Location Multi – Cuisine Expert Management Team
    • Competitive Edge Fusion will leverage it’s multi-pronged competitive edge to quickly gain market share. Our competitive edge is the menu, the chef, the environment, the management, the service and our friendly place. The chef has an excellent taste for what fine dining is and requires Our environment is elegant and comfortable and our decor is warm and relaxing.
    • Strategy And Implementation Summary Our strategy is simple, we intend to succeed by giving people a combination of excellent and interesting food in an environment that appeals to a wide and varied group of people. We will focus on maintaining quality and establishing a strong identity in our community. We will keep our standards high and execute the concept so that word-of-mouth will be our main marketing force. We will create an appealing and entertaining environment with unbeatable quality at an exceptional price.
    • Marketing Strategy Sell For Tomorrow—Not just Today Print media advertising Flyers Entertainment book coupons Mass Media Vehicles Billboards E- business
    • Sales Strategy Word’s Of Mouth Discount Coupons Free Home Delivery Concentrating on the customers experience Offer various specials throughout the week that people can come to enjoy.
    • MARKETING ANALYSIS7 P’s of RestaurantPRODUCT:• Product marketing deals with marketing the product to prospects, customers, and others.• The products being offered at FUSION are-a cosmopolitan flair, comfortable atmosphere, striking décor, entertainment, engaging clientele along with an international menu comprising of multi- cuisines: INDIAN, ITALIAN , CONTINENTAL and CHINESE.• FUSION will be the only restaurant among all the competition which focuses the entire menu on healthy and low-fat cookingPRICE:• Pricing is one of the most important elements of the marketing mix, as it is the only mix, which generates a turnover for the organization.• It costs to produce and design a product, it costs to distribute a product and costs to promote it.• The pricing strategies that we at FUSION will be considering during the preparation of the menu are- Competition pricing Product Line Pricing Premium pricing
    • PLACE This refers to how an organization will distribute the service they are offering to the end user. The organization must distribute the service to the user at the right place and at the right time. Fusion is located at Palm Spring, Malad.
    • PEOPLE: An essential ingredient to any service provision is the use of appropriate staff and people. The staff at FUSION is efficiently and well trained to serve the guests in the best possible way. Our staff is well trained to give to our customer’s high quality of personal service. The service delivered by our employees is a very important element of value. It is also an area where we can distinguish our selves.PROCESS: This refers to the systems that are used to assist the organization in delivering the service. A big emphasis is being placed on extensive research into the quality and integrity of our products. They will constantly be tested for our own high standards of freshness and purity.
    • PROMOTION: Promotion involves disseminating information about a service, product line, brand, or company. Promotion is generally sub-divided into two parts:• Above the line promotion• Below the line promotionPHYSICAL EVIDENCE: Physical Evidence is the element of the service mix which allows the consumer again to make judgments on the organization. Physical evidence is an essential ingredient of the service mix. Consumers will make perceptions based on their sight of the service provision which will have an impact on the organization’s perceptual plan of the service.
    • MARKET ANALYSIS SUMMARY FUSION focuses on local and tourist restaurant seekers. People that have a desire for good food and a fascinating atmosphere. The market customers for FUSION would develop from: Local Neighborhood Marketing Program Customer Frequent Diner Loyalty Program Suggestive Selling Program to increase average check Tremendous growth in upper level family income
    • MARKET SEGMENTATION The Business Man Happy Couples The Family High-end Singles Tourists
    • MARKET PENETRATION Entry into the market should not be a problem. Restaurant has high visibility with heavy foot traffic all day long. The local residents and students always support new restaurants and the tourists do not have fixed preferences. In addition, Rs.4,00,000 has been budgeted for a pre-opening advertising and public relations campaign.
    • SERVICE BUSINESS ANALYSIS The restaurant industry is highly competitive and risky. Most new restaurants opened by inexperienced owners struggle or fail. However, those based on solid understandings of the market needs have a much higher chance of success. Restaurants make money by taking inexpensive ingredients, combining them in creative ways, cooking them properly, and selling them at a much higher price
    • UNIQUE SELLING PROPOSITION
    • Market Feasibility Study A market feasibility study is essential to gauge the practicality, prospects, potential of the project, and therefore it’s feasibility We obtained an online sample of a survey conducted to gauge the tastes and preferences of city goers. The survey was done on about 120 people residents of Mumbai between 16 and 21 years. From the survey, we came up with a SWOT analysis and marketing strategy to follow.
    • SWOT ANALYSISSTRENGHTS First mover advantage Economies of Scale Varieties of food of the cuisine Large number of bachelors/students/IT professionals Catering to a wide range of people No good restaurant near the location
    • WEAKNESSES High cost of operation Not from a known group Pricing Competition Difficulty In obtaining licenses
    • OPPORTUNITIES New restaurants in other parts of the city Offer greater variety High growth of the Hospitality Industry and tourism Rising standard of living
    • THREATS Other concept restaurants People may be restrictive High attrition rate.
    • Questionnaire Based on the questionnaire, following feedback was obtained: People look for customer service most, followed by décor. People mind spending more money, even if they are offered quality of service 3/4th of the people surveyed visit a restaurants at least once a week.
    • Questionnaire They prefer Indian cuisine the most, followed by Chinese, Italian and others They look forward to new dining experiences given the opportunity While choosing a restaurant, customers are price conscious.
    • POSSIBLE FINANCING OPTIONS Entrepreneur’s Financial personal institutions resources Financing Options Unusual Angel investors resources Venture Business capitalists development Public offering programme
    • Evaluating Financing Options Personal Personal Potential Control Risk RewardPersonal Resources H H HFinancial Institutions(Debt Financing) L-M L L–MVenture Capitalists(Equity-Debt Financing) L–M L L–MAngel Investors(Equity Financing) L–M L L–MPublic OfferingsEquity Financing) L L L–HBusiness DevelopmentProgram L–M L L–MUnusual Sources L–H L L- HL – Low M – Medium H - High
    • COMPARISON OF VARIOUS SOURCESTYPE COST DILUTION RISK RESTRAINT ON MANAGERIAL FREEDOMEQITY HIGH YES NIL NORETAINED HIGH NO NIL NOEARNINGSPREFERENCE HIGH NO NEGLIGIBLE NOCAPITALTERM LOANS LOW NO HIGH MODERATEDEBENTURES LOW NO HIGH SOME
    • WHAT WE ARE CHOSING• LOANS FROM FRIENDS AND RELATIVES- 20 LAKHS(UNSECURED)• LOAN FROM FINANCIAL INSTITUTIONS -40 LAKHS(SECURED AGAINST THE BUSINESS ITSELF)INTEREST:• 6% annual rate from friends and relatives• 12% annual rate from bank
    • FINANCE Profit and loss account. Balance sheet. Cash flow statement.
    • P&L
    • Projected Balance Sheet of Fusion Company For First ThreeYears
    • Cash Flow StatementCash received 1st year 2nd year 3rd yearCash from operationsCash sales 34675000 61867500 80756250Subtotal cash received 34675000 61867500 80756250Expenditure 1st year 2nd year 3rd yearCash paid to suplier 20257500 41013073 55074639Cash paid to employees 6066000 6975000 8021250Additional expenses 6284063 7260945 8286600Principal repayment of loan 400000 400000 400000Interest on unsecured loan 120000 120000 120000Interest on secured loan 400000 360000 320000Tax paid 140377 1514148 2332995Cash expenditure 33667940 57643166 74555484
    • 1st year 2nd year 3rd yearNet cash flow 1007060 4224334 6200766Cash balance 92960 3542794 64074819
    • Break Even AnalysisThus the company is going to break even in the begin of the third year.
    • Gross margin ratio Gross profit = 14518635 sales = 34675000Gross profit ratio = 0.4187
    • Liquidity ratioCurrent assetsCash = 92960Closing stock =101135Prepaid expenses=500000Total =694095Current liabilities =6100000Liquidity ratio= 0.1137
    • OPERATIONAL ANALYSIS and HR
    • LOCATION ANALYSIS Customer access Nearby business Population Population growth Economic conditions General business factors
    • MACHINERIESSupport equipments: Main equipments in kitchen: Chimney  Heaters Air Conditioner  Stoves Music System  Fridges Computers  Griller Water Filters  Chillers Software’s for data analysis  Trolleys  Microwaves  Mixers
    • QUALITY TESTING PROCEDURE ISO 9000-the only available internationally accepted standard for quality management system Applicable to all kinds of organization of industries in manufacturing or service sector. Systematic standardization and certifications That allows complete freedom on selection and use of processes and framing of operating procedures an work instructions
    • PROCESS FLOW CHART Place order Give the order to chef Get drinks for customer Deliver salad or soup order to customer Deliver dinner to customerDeliver check to customer Cash Bring change to Cash or Credit customer Credit Return credit slip to Close table and customer Collect signed slip collect tip
    • ORGANIZATION STRUCTURE
    • QUALIFICATION & CONDITION REQUIRED FOR MANPOWER Good health and stamina Keen sense of taste and smell Excellent hand/eye co-ordination Good memory for details Artistic and creative talent Excellent communication skills, interpersonal skills and team- building skills Ability to remain calm in hectic circumstances Excellent organizational skills Desire to do a precise and thorough job
    • SALARY STRUCTURE Main chef -500000 Chef (15000*2) -300000 Helper (7500*3) -22500 Waiter (5000*10) -50000 Manager -12000 Cleaning staff (2000*2) -4000 Total -161000 Security (3000*3) -9000 For three floors for 365 days -6066000
    • DUTIES & RESPONSIBILITIES Creating new recipes to please customers Hiring and supervising kitchen staff Estimating labour and food costs and altering menus to stay within budget Meeting with customers regarding menus for special occasions such as weddings, birthday parties and banquets Arranging for equipment purchases and repairs Checking the quality of raw and cooked food products Ensuring that sanitation standards are maintained Assisting with staff development and training Meeting with other managers in the organization
    • LONG TERM DEVELOPMENT PLAN Goals Strategies Milestones Risk Evaluation Exit plan
    • LONG-TERM DEVELOPMENT & EXITPLANGoals FUSION is an innovative concept that targets a new, growing market. We assume that the market will respond, and grow quickly in the next 5 years. Our goals are to create a reputation of quality, consistency and security (safety of food) that will make us the leader of a new style of dining.
    • Strategies Our marketing efforts will be concentrated on take-out anddelivery, the areas of most promising growth. The market changes, new products may be added to maintainsalesMilestones  After the restaurant opens, we will keep a close eye on sales and profit. If we are on target at the end of year 1, we will look to expand to a second unit.
    • Risk Evaluation The success of our project hinges on the strength and acceptance of a fairly new market. After year 1, we expect some copycat competition in the form ofother independent units. Chain competition will be much later.Exit Plan  Ideally, FUSION will expand to five units in the next 10 years.  At that time, we will entertain the possibility of a buy-out by a larger restaurant concern or actively seek to sell to a new owner.