Geetika mahajan (business plan)


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Geetika mahajan (business plan)

  1. 1. AICTE UNIVERSAL BUSINESS SCHOOL Karjat, Mumbai Program name: MBA (Finance) Professor and Tutor: Mr. Bibhas Bhasumatary Student Name: Geetika Mahajan Roll Number: MBA3/1323 Batch: MBA3 Date of Submission: 28 March 2014 Assignment: Launching a waiter free restaurant.
  2. 2. MARKETING PLAN PRODUCT LAUNCH: “ Launching of a Waiter free restaurant” BRAND: “ Cuisine of INDIA” Executive Summary and Opportunity Analysis This is a restaurant service which would be operated in greater cities like Bombay, Pune, Banglore, Delhi, Chandigarh which would provide personal space to the customers we serve. By adding a technical touch to it. This restaurant service is a kind of service which gives customer privacy to spend more time with their love ones. In INDIA we generally don’t get privacy in restaurants specially for couples. We plan to provide more privacy to various types of customer by giving them a waiter free zone as well as a private space (HUT) . Currently we have serious issues in INDIAN restaurants. Those are as follow as:  There are many disturbance in INDIAN restaurants.  They don’t provide a total privacy to the customer.  Many of the waiters are rude to them.
  3. 3.  Customers do not have the privileged to play their personal favourite music. Indian restaurants have a big privacy problem in INDIA because we have people screaming to their throats mainly talking to the person nearby or else on their mobile phones . We generally do not get privacy inside the restaurants for our loved ones and family. We always have somewhat disturbing our privacy so we have focused our attention towards providing privacy to the customers. By adding technological touch to the restaurants which thus bye eliminating the need for not only disturbance but also waiters. We provide a personal I pad menu card and a credit card swiping machine. On which the customer can order the cuisines they like as well as paying for that on the swiping card itself. So after ordering the menus they like the order will be delivered to them through a mini train which will bring their food they have ordered as well as when they are waiting for their order they can play music of their choice in the hut or space they are siting giving them a personal privacy. And also if they have any problem with the service they are getting they have a buzzer in the space or hut so that they can call the manager to the rescue and have their problem solved. And also they can adjust the environment to their choices as we can see that the more costlier the restaurants is the less the lights are in that restaurants. So we have given a choice of self adjusting lights according to their choices they want so that they have all independent choices and also the touch of intelligent technology. Situation Analysis Market size and Future projections: The INDIAN organized restaurant chain market has witnessed an upward trend and has grown at a CAGR of 19.1% from FY 2013 where it has witnessed revenues of INR – crores in FY 2013 growing from INR – crores in FY 2008. The organized chain market in India includes a large no of players in the QSR, full service, PBCL and the food court segments. The market has significantly expanded primarily owing to the high demand among the large Indian population over the years. The Quick Service Restaurants (QSR) and the casual dining restaurant account for a major share of the revenues of the organized chain market in India. The QSR’s and the casual dining restaurants together contributed a market share of 80.60% in FY’ 2013 to the organized restaurant chain market. The revenue from QSR’s reached to INR-crores in FY’ 2013 and the casual dining restaurants registered revenues of INR-crores in FY’2013.
  4. 4. POLITICAL AND LEGAL The Restaurants industry is amongst the fastest growing industry in India. According to a recent food services Report 2013 by National Restaurant Association of India (NRAI), market size of India’s restaurant sector is Rs. 247,680 crore ($48 billion). This sector is 24 times bigger than the film industry and $9 billion ahead of the telecom sector. And, it is projected to swell to Rs. 408,040 ($ 78 billion) by 2018 at a compounded annual growth rate (CAGR) of 11% This budding Industry is presenting a lot of opportunities to entrepreneurs who are willing to set up their own restaurants in some part of country . Recently, a national court had ordered 34 restaurants in Delhi’s Hauz Khas village to be closed because they are operating illegally without necessary pollution permits. We have listed different types of licenses issued by various bodies that are mandatory as per NRAI guidelines. The following are the licenses required for opening a restaurant in India:  Food safety license – issued by a Food Safety and Standards Authority of India (FSSAI)  Health/ Trade license – issued by Municipal Corporation / Health Department of the concerned state.  Eating House License – Acquired from licensing police commissioner of that city .  Environmental clearance – Issued by the concerned authority in the state .For Delhi it is pollution control committee (DPCC).  NOC from fire Department – Obtained from fire department of the concerned state.  Signage license – Municipal committee and corporation of the concerned city. License mandatory for service of liquor in the restaurants :  Liquor License L-4 (L-17 as per new Excise Rule)- Issued by local Excise Commisioner
  5. 5. License mandatory for Playing recorded / Live music in the restaurants:  Playing of music in restaurants – can be obtained from Phonographic Performance Limited (PPL)/ Indian Performing Right Society . This license becomes mandatory when you are planning to play recorded or live music of two or more members of PPL. In addition you are required to Register under the Following Sections and Act :  Nominations under PFA Act 1954 Section 17(2) and Rule 12 B of the Rules 1955- Director Prevention of Food Adulteration of the State.  Shop and Establishment Act – As prescribed in the Act and as the applicable to the state Restaurant is indeed a lucrative business, particularly in a country like India where people have taste buds for Food from across the World. If you dream of becoming a successful restaurateur , do ensure that include all these license while conceptualizing your business plan. Economic: In India, the population and per capita income of individuals are increasing. With rising urbanization, growing industrial and business development and increasing standard of living in metro cities. Citizens are ready to pay premium for dining and cuisines if provided with nice ambiences and good food as well as a little bit of privacy. Social: India’s middle class is expected to grow from around 160 million in 2011 to 267 million in 2016 (Ernst & Young GM Limited, 2012). The third quarter 2013 Indian consumer spending had increased 2.1% yoy to INR 8,552 billion and the GDP per capita (adjusted for purchasing power parity PPP) increased approximately 2% to USD 3,340 (Trade Economics, 2014). As consumer’s standard of living improves, it will have more money to spend on convenient and alternatives means of travel. Technological: In India we do not get to see a technological advanced restaurants and rate at which the technology is advanced in we expext to have more restaurants like our in every city.  Customers can reserve their HUTS, SPACES in restaurant online.  Customers can buzz the manager if find any problems in the service provide.
  6. 6.  They can have that personal light setting ambience and music according to their choice.  They can browse through the themes provided by us. Valentine day special, Independence day, Diwali, Holi, Rakshabandhan with the respect to the festival celebrated in India. Competitive Reviews: Currently “CUISINE OF INDIA” will operate in a completely new category. It will be operating in Metro Cities. Other types of restaurants and Pubs in metro cities. Strengths and weakness of different types of Restaurants Strength Weakness PUBS People were feel relaxed Lot of noise , disturbance HOTELS High quality food Disturbance , rude behavior RESTAURANTS High quality food Disturbance , rude behavior Competitive Analysis of different restaurants:
  7. 7. Analyzing the Restaurants using five force portal’s model: Bargaining power of suppliers: The suppliers of raw materials usually have power over industries. The bargaining power is in the price for the materials provided. Some industries have a lot of suppliers, but some do not. Those industries that have only few suppliers can suffer, because suppliers can charge any price they want. Bargaining power of Buyers: Within a restaurant industry, the bargaining power of customers is very essential aspect. This is because the prices should always be kept not higher than the competitors’ prices. In this case customer’s power is strong as customer might set the price. As soon as prices are increased way too much, the clients will leave our restaurant and find another one. However, the idea of our business is that we are the restaurant for students that provide food and drinks for quite reasonable prices. So this power can be medium. Threat of New entrants: The threat of new entrants to the market in the restaurant industry is very high. This is because there are extremely low barriers to entry. It is not so expensive to start up the restaurant business, that is why there are often a lot of new entrants. Threat of substitute Products: As there are a lot of other restaurants in the city and each of them offer their specific kind of food, the threat of substitute products becomes very high. One of the main
  8. 8. solutions of decreasing the threat is to keep in touch with customer preferences and offer wide range of products. If this solution is implemented successfully, the restaurant can maintain a competitive advantage over rival firms and be able to keep customers rather than lose them to substitute restaurants. Competitive rivalry within an Industry: Competition among firms is very high in restaurant industry. People always need to eat and a lot of them like to do it in restaurants. Therefore, more and more restaurants are being opened, causing higher competition. As a result, one of the main aims for each restaurant is to gain a competitive advantage among other restaurants. This can be done in several ways: changing prices, improving product differentiation or providing special discounts. The prices should be carefully made and not exceed the competitors’ prices. As soon as it is getting clear that the number of customers has been decreased, the new offers such as product differentiation or special discounts can be provided in order to get back old customers and attract new. Segmentation , Targeting , Positioning Segmentation: Segmentation for “CUISINE OF INDIA”
  9. 9. “CUISINE OF INDIA” Restaurant is divided into four groups :  By Price: Some restaurants segment the market by offering food at a low price. They know that office workers, for example, eat out regularly but can’t afford to pay $10 or more each day for lunch. These restaurants offer fewer menu items, smaller portions and fewer amenities, targeting the large market segment that wants to eat a good meal without paying more than $6 or $7. Some restaurants offer high-priced menus to create perceived value, targeting affluent diners who want a complete experience. These restaurants offer upscale interiors, use expensive ingredients, offer expansive, exotic menus and might serve wine or liquor.  By Service: Many people who eat out do so because of necessity, rather than a desire for an experience. Restaurants who want this segment of the marketplace offer quick service, including counter, buffet, self- or drive-through service instead of traditional seated dining with a server. These restaurants combine fast service with low prices to offer multiple benefits to
  10. 10. customers. Upscale restaurants offer more service, including guaranteed reservations, valet parking, music, a wine sommelier and tableside preparation of some items.  By Customer Type: Restaurants often use consumer demographics to guide them in developing their brand or concept. For example, if a restaurateur is located in a community with a large number of retirees, he might open a low-service, moderately priced restaurant. If the area has a large number of affluent young people, the restaurateur might offer an international menu, craft beers and live music. In a college town, restaurants know to offer a balance between low prices and a fun atmosphere.  By Cuisine: One of the easiest ways to segment a restaurant market it by the type of food you offer. This allows you to offer two more benefits. For example, if your specialty is Italian food, you might create an upscale Tuscan eatery, open a low-cost pizzeria, or offer family and senior dining. If your area has a large ethnic community, you can target that group, offering milder, less-authentic menu items to attract outsiders who enjoy that cuisine. If there are no other seafood restaurants in the area, customers might be wiling to pay more for that type of restaurant.
  11. 11. Targeting: A target market is a group of individuals that share certain characteristics. Age, gender, income, interests, education, parenthood, marital status, lifestyle preferences and geographic location are a few of these characteristics. The more you know about the specifics of your target market, the more refined and successful your marketing strategies will be. Positioning:
  12. 12. HIGH QUALITY  Taj hotel  My restaurant HIGH PRICE LOW PRICE  Blue frog LOW QUALITY Marketing Objectives: “Cuisine of India “ market objectives are:  Customer satisfaction and loyalty..  Generating a restaurant Traffic.  Building the restaurant Brand.  Achieving specific financial goal.  Serving Quality Food at fair prices. Our Mission: “Cuisine of India” service focused on serving our customer by providing comfortable , privacy , good quality food at reasonable price.
  13. 13. Marketing mix Strategy
  14. 14. Product Strategy: “Cuisine of India” service is at the introductory stage of its product life cycle. There will be totally privacy and waiter free service provided to the customer. Private huts ans space will be provided to the customer according to the no of Peoples. The huts used for the lovers and 2 -4 people. And Big cabins provided to the Family for spend their lovely time with their family, without any disturbance. Now I can show you the images for the huts where lovely couples spend their lovely time and that remember forever. Second Image for the Families who spend their time with their members and make them special..
  15. 15. These both will be modified such that it provides comfort , privacy, good quality of services to the customers. More things will be included that as follows: 1. An air-conditioning huts and cabins of the restaurants. 2. Free internet facilities for their customers. 3. Music will be played according to their choice. 4. Lightening system change according to their choice. 5. Waiter free restaurant, Ordered will be delivered through maini trains. 6. Ipad will be provided for the menu and cash paid through swiping machine. 7. Provide full privacy to their customer. 8. If they face any problem regarding service in their huts or cabins buzz system provided when they use that buzz manager will come and solve their problem. 9. Each Restaurant will have the Te – amo Brand logo placed at the roof toop. Website: Total Product for the “cuisine of India service”:
  16. 16. BRANDING: “TE AMO” will be the brand of the company . TE AMO is an Spanish word which signifies “LOVE”. The brand image will be logo which I create from the logo website. “cuisine of India” provides a best service for the loved ones and spread the message when they go outside with their families the privacy will be provided and also disturbance remove it. So my service signifies that give more time to the families at special occasion that’s why my Brand name is TE-AMO. TE-AMO SOURCES OF ADDITIONAL REVENUES: TE AMO SERVICE Other sources of revenues (INR) Per Year Yr 1 Yr2 Yr3 Advertising on Restaurant (INR) Per Year External Branding 2 lac 2.5 lac 4 lac Internal Branding 1.2 lac 1.20 lac 1.70 lac
  17. 17. Tie up with the marketing research restaurant 3.2 lac 3.7 lac 5.7 lac PRICE STRATEGY: Since TE-AMO is a new service in a existing segment , there is no direct competition in the service category. TE – AMO will not be able to adapt a particular pricing strategy because the pricing of all restaurants is fixed according to the Brand. PLACE AND PROCESS STRATEGY: TE-AMO will have a direct distribution service as it is a B2C Business. Customer can directly contact the TE-AMO team to book the cuisine. They have even go online and use their Website for booking. There is no intermediary between the restaurant and the customer. DISTIBUTION CHANNELS OF TE-AMO: CUSTOMERS ONLINE BOOKING(WEBSIT E) ON TIME BOOKING AVAILABLE SERVICE
  18. 18. In this Distribution channel Customer can directly booking through online for a lovely time with loved ones , or they can booked their service on time. Service available directly to the customer without any delay. HIERARCHY STRUCTURE OF TE- AMO:
  19. 19. TE- AMO MONTHLY COST: MONTHLY COST (INR) BASE RATE NO OF EMPLOYEES YR1 YR2 YR3 YR1 YR2 YR3 Manager 10,000 12000 15000 1 1 1 CHEF 8000 8800 9680 20 20 20 MAINTENANCE OH MINI TRAINS 5000 5500 6000 1 2 2 CUSTOMER RELATIONSHIP MANAGER 11ooo 11800 12500 1 1 2 CUSTOMER RELATIONSHIP EXECUTIVE 4000 4500 5000 5 5 5 CARE TAKER 3000 3500 4000 7 8 8
  21. 21. BIBLOGRAPHY: Catering management: a comprehensive guide to the successful management of hotel, restaurant, boarding house, popular café, tea rooms, and every other branch of catering, including a section on law and the caterer. London: Waverly Book Co., 1919. Ideas for refreshment rooms; hotel, restaurant, lunch room, tea room, coffee shop, cafeteria, dining car,
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