Coffee Tea Corner is proposing to open a cafe that serves tea, coffee and snacks while showing sports matches on large screens. The cafe aims to provide a relaxing environment for professionals, students and others in Karachi. It will target customers aged 22 and above from middle to upper income levels. The financial plan estimates revenues of over 7 million PKR in the first year with net profits of nearly 800,000 PKR. The goals are to pay back initial loans within 3 years and continue expanding to new locations.

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COFFEE TEA CORNER
Name of Company: COFFEE TEA CORNER

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Name of Company:
COFFEE TEA CORNER
Group Member’s:
M.HarisArshad
Supervisor’s Name:
Sir Naveed Khan
Name of University:
Dadabhoy institute of higher Education

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Table Of Content
S.NO Description Pg #
1 Introduction
& Executive summary
03
2 Mission &vision 04
3 Innovative Idea 05
4 Problem and Management Strategic & planning 06
5 Risk Management 08
6 Marketing Plane 09-10
6 Financial Planning 11 to 15
7 Goals and SWOT Analysis 16-17
8 Recommendations and Action Plans 18

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Coffee Tea corner
INTRODUCTION:
Coffee and Tea corner is an effort to start our own small business among the giants of
businesses, We are introducing a café for the people who love to drink tea in an
environment where they can relax and enjoy their favorite sports. We are putting our
efforts to fulfill their relaxations needs by providing them good ambience & delightful
environment with our quality tea and services So that they come again and again to
enjoy the exclusive experience.
Executive Summary:
Gone are the days of the good old 60s, 70s or even the early 80s when life
was not so stressful and tense and when people used to have time to enjoy
and indulge themselves in leisure activities. With the complexities of life
increasing day by day there are hardly any places where people can enjoy
and relax in order to minimize the level of stress in their life. Our Business
idea is to provide proper ambience, healthy entertainment along with the
choicest of delicacies in tea, coffee and sandwiches. We are providing a few
hours of leisure and relaxation in this stressful environment.
This has been concluded without any doubt that Pakistanis are lovers of
cricket and as a budding entrepreneur we have anticipated a growing trend of
football matches among the youth. We take this as an opportunity to satisfy
their thirst for football and cricket by showing them matches on the big
screens along with our delicious menu and exclusive environment. We are
targeting the business class, the professors, the professionals, the youth and
the students because we are catering to their diversified needs.
There is no other place in the country where people from different walks of life
can enjoy high quality snacks, latest cricket and football matches along with a
most cozy and decent environment at an affordable price.

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VISION:
To provide tea & coffee drinkers a platform to satisfy their tea drinking need
in a perfect and sound environment. With a long term Business and
increase our units in all over Pakistan.
MISSION:
Our mission is “to give relaxation to human spirit” first in Karachi by
creating a place that provides not only product and services but
Unforgettable Experience. Our primary focus is the educated and business
class of society.

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INNOVATIVE IDEA:
We are going to show Football matches to Football lovers and cricket matches to cricket
fans. We are the first in Pakistan who are launching tea and coffee shop combined with
an exclusive ambience that will make you
feel relaxed.
1. It’s not just a product but it’s a
LIFESTYLE.
2. Coffee tea corner provides the
highest quality, satisfaction,
healthy product and services to
tea and coffee drinkers.
3. We are providing environment that
is safe, comfortable and
attractive that will encourage
customers to make repeat visits.
4. We are not just providing product
and services our focus is on
“UNIQUE EXPERIENCE”.
5. Our primary focus is on the
“educated and the business class”.
6. We are launching different varieties of tea and coffee to increase our product
line.

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Main Problems:
1- New in the market, people have zero knowledge about our product. So that we have
to create a perception regarding our service.
2- Depending on one product.
3- Initially running our business on Loan from Bank.
MANAGEMENT PLANNING & STRATEGY:
Well we have a strong planning to execute our idea into success story
 First we hire a staff of maximum 10 individuals.
 This is for our first initial café.
 After that we plan to expand our services in 5 areas of Karachi
 We plan to target commercial areas
 Every one individual is responsible (perfectionist) at his job.
 10 workers and one manager different sorts of job.
 Effective supply chain will play important role.
 Price would be affordable for our target market.
 Quality experience at affordable price is our main idea.
Working Staff for our first unit
Manager
Cheff
Waiters (4 male and 3 females)

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RISK MANAGEMENT:
RISK ASSESTMENT:
65% of chance that it’s going to be successful
35% chance of failure.
But according to our research chances of a big
setback is almost negligible.

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MARKETING PLAN
TARGET MARKET:
The marketing program can be profitably adjusted to recognize customer differences for
that segmentation analysis is the most important step. The major segmentation
variables are geographic, psychographic and behavioral segmentation.
DEMOGRAPHIC SEGMENTATION
In demographic segmentation the market is divided on the basis of variables such as
age, family size, family life cycle, gender etc. The demographic characteristics of our
customers are:
- Age: Firstly we are trying to cater the population 22 above. Those masses who
are with
- Gender: We are targeting both male and females.
- Occupation: People associated with all sorts of occupations are our customers.
It’s a domestic use product with have more in demand.
- Income Level: The income level of our targeted customers is Rs. 40,000 and
above.
- Social Classes: Due to comparatively high price we can target middle-upper
class and above.
- Life Style: Our target customers are those who are easy accessibility. Their
pattern of living will is of those who want comfortable life, hustle free living.
- Education: They can be young adult, working peoples and h Professional men
who are literate enough to comprehend the essence of this business.

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Price:
Buyers can purchase various types of brands at more reasonable price.
PLACEMENT: we provide our Coffee & Tea In different area of Karachi such
as Gulshan -e- Iqbal, North Nazimabad, Defense, Shahrah-e-Faisal etc where we can
provide healthy and quality beverages.
POSITIONING:
We will be integrating all messages in media to strengthen the brand name of Coffee
and tea corner. We will accordingly choose appropriate media with right time in so that
we can robust the company’s name and acquire a strong position in customer’s mind.
PROMOTION:
- Bill Boards: Advertisements will be placed initially on billboards across different
locations in the city such as:
LOCATION MONTHLY RENT
Shahrah-e-Faisal 80000
Defense 100000
North Nazimabad 40000
Gulshan -e- Iqbal 60000
- TVC of 30 second will be run on various news and program channels.
- Pamphlets will be distributed with the newspaper that is the cheapest and
most reliable source.
- Organizations would be targeted through banners and posters
- Broachers will be used at various malls.
- Radio advertisement will be run at morning and at night shows
- Online marketing through social media.

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FINANCIAL PLANNING:
GOALS:
To establish a café for tea and coffeedrinkers.
Tasks:
Import tea and coffee, take a place on rent near II CHUNDRIGAR or M.A JINNAH road,
buy furniture, do necessary arrangements, buy crockery , buy tea making equipment,
advertise it.
Outflows: EXPENSES
Rent & advance of outlet=500,000
Buy equipment=100,000
Crockery=80,000
Paint=10,000
Tea=50,000
Milk=20,000
Sugar=10,000
Coffee=70,000
Sandwiches raw material=20,000
Furniture=200,000
Advertising/board=15,000
Miscellaneous=50,000
Adds on Local TV channels and in Dawn and Jung Newspaper=65,000
Two Big Screens=40,000 rent on monthly basis
Total Expenses=1,230,000

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Our Primary Sales items:
Types of sandwich:
s.no Description Cost price Selling Price
1 Club sandwich 80 160
2 French sandwich 80 160
3 Tuna Sandwich 120 220
4 Chicken Sandwich 100 200
Types of Coffee:
s.no Description Cost price Selling Price
1 Capo chino 30 60
2 Dark coffee 30 70
3 Milky coffee 40 100
4 Cold Coffee 40 100
Types of Tea:
s.no Description Cost price Selling Price
1 Kashmiri Tea 15 40
2 Lemon Tea 10 30
3 Normal Tea with milk 10 25
4 Black Tea 10 25
5 Masala Tea 12 40

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Note: It excludes all taxes and tax benefit will be enjoyed by us till our debt is completely
paid back.
Watching matches on big screens are free for customers but who wants to watch
more than one hour they have to pay 100 per hour.
Time Plan in order to own our rented outlet and to pay back loans .
First our focus is on paying back our debt:
1-We are going to recover our loan IN SHAA ALLAH within three years where as our
term for loan is for about seven years maximum.
Cost Vs. Revenue (2012)
Items Revenue Costs 1st year Estimated
units
Club Sandwiches 1152000 576000 7200
French Sandwiches 1152000 576000 7200
Tina Sandwiches 720000 360000 3600
Chicken Sandwiches 1480000 720000 7200
Copa chino 432000 216000 7200
Dark Coffee 378000 162000 5400
Milky Coffee 360000 144000 3600
Kashmiri Tea 216000 81000 5400
Lemon Tea 324000 108000 10800
Normal tea with milk
Tea
450000 180000 18000
Black Tea 360000 144000 14400
Masala Tea 86400 288000 7200
Total 7110400 3555000 ---------

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income Statement (For the first year of our business):
Coffee Tea Corner
Income Statement
For the year ended December 2012
Sales (Products) 7110400
Cost of Sales (3555000)
Gross Profit 3555400
Less (Other Expenses and Revenues):
Sales (tickets) (500000)
Rent (Screens + Outlet) (3740000)
Wages to employees (1260000)
Electricity Expense (250000)
Tax Benefits 604418
Interest (184500)
15% of 557000
Net Profit 774682

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BREAK-EVEN ANALYSIS:
Break even quantity:
FIXED COST:
FC= rent+ big screen rent+ advertising rent
FC=500,000 + 40000(12) + 15000(12)
FC= 1160,000
SELLING PRICE:
SP= (price of selling all types of sandwiches) +(selling price of all types of coffee)+(
selling price of all types of tea)
SP= (160+160+220+200) +(60+70+100+100) + (40+30+25+25+40)
SP=1230 per unit
VARIABLE COST:
Mention above all cost per unit = 577
BE (Quantity)= FC/ (SP-VC)
BE (Quantity)= 1160,000/(1230-577)
BE (Quantity)= 1776 units.

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GOALS:
We are coming with one initial café after that we want to expand gradually
to differentareas of city
Our success depends on response.
If initially our plan workout than we need to further invest.

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SWOT ANALYSIS
a) Strengths :
1- Our staff is specialized in preparing coffee and tea. Therefore, there is a
chance of capturing market by focusing on one Issue.
2- Less Investment and out of our Profit from that investment we will be able to
pay back loan that we have taken from Bank.
3- Starting from one Unit and very limited workforce.
b) Weaknesses:
1- We are just focusing on one area therefore there is only one area on which
we are dependent.
2- Starting our Business on loan.
c) Opportunities:
1- We are the one and only of its type in the market.
2- Customers will be attracted because we are coming up with an innovative
idea. Wonderful environment and 2 big screens.
a. In Karachi there are many cricket lovers and football crazy people.
They can watch matches on big screens in comfortable environment at
affordable costs.
3- Youth is in max in Karachi therefore our focus is more on youth.
d) Threats:
1- Entry barriers are very Low.
2- People are not aware about this trend.
3- We have to make our name as quick as possible so that don’t give chance to
others to penetrate in the market.
4- There are numerous hotels and restaurants that are selling coffee and tea
in different varieties but they are our indirect competitors .They target upper
level customers therefore less chance of competition threat.

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Recommendations:
Initially we are in a profit and according to the research IN SHAA ALLAH within three to
four years we will be in a position to pay off loan and also going to acquire the unit.
Entrepreneur is an individual who anticipates a market need and use resources in order
to meet that need of customers. Therefore it should be kept in mind that we are
introducing a new business in the market and there is a risk that we are taking but at the
start of any business there is a risk and uncertainty present but we are the one and only
in the market. We can capture the market.
This unique idea makes us to come up with the concept of business like: “Coffee Tea
Corner”
Action Plan:
As we are new in the market and according to our vision statement we are here for the
long time period and with a thinking of increasing our units not only in Karachi but in all
over Pakistan. There are certain series of actions that are required in order to perform it.
Our first unit is our first priority to acquire it out and then go for second one and then
gradually increase our outlets.
No doubt we are playing the short in the dark but with our full research no doubt that we
are on safe side. Out of our Profit we are going to increase our outlets.