project on development of new business

8/14/2019 PROJECT ON DEVELOPMENT OF NEW BUSINESS

1/24

PROJECT ON DEVELOPMENT OF

NEW BUSINESS

PREPARED BY:

STUDENTS OF

INTERNATIOMAL ISLAMIC

UNVERSITY ISLAMABAD


2/24

THE PROJECT OF NEW BUSINESSDEVELOPMENT

PREPARED BY,

AAMIR HAYAT& CLASS MATES

PROGRAM,MASTERS IN BUSINESS

ADMINSTRATION

Acknowledgement

Take &


3/24

The project was the great learning for us. Practice like this contributes very

much in reducing distance between bookish and practical world.

We have been able to accomplish our project successfully with the blessings

of

Almighty Allah who created this world for the search of knowledge and

bestowed us to complete this task. We invoke peace for Holy Prophet

(PBUH) the most perfect and exalted among and ever born on the surface

of earth and sky. The greatest social reformer who is forever the torch of

guidance and knowledge for humanity as a whole.

We are thankful to our esteemed teacher Prof. Adnan Shabir Sb. who

helps us a lot in making this project comprehensive and guided us very well

throughout the course of marketing and really made these course fruitful

for us. We enjoyed his company during the whole semester.

In last we never forget the praises worth contribution and moral support

each of our class fellows.

Dedication

To our beloved Parents and Teachers who always helped us in

every phase of life.


4/24

TABLEOF CONTENTS

1. Executive summary

2. Situation analysis

2.1.Market needs

2.2.Market Analysis

2.2.1.Market demographics

2.2.2.Market trends

2.2.3.Market growth

2.3.Company

2.3.1.Mission (essential purpose of company)

2.3.2.Product offering

2.3.3.Positioning (what the product is? For whom?)

2.3.4.SWOT analysis

2.4.Competition analysis

3. Marketing strategy

4. Marketing mix4.1.Product

4.2.Price

4.3.Place

4.4.Promotion

5. Financial strategy

5.1.Breakeven analysis (pay back period)

5.2.Projected sales (3 years)

5.3.Projected income statement

5.4.Projected balance sheet


5/24

1.EXECUTIVE SUMMARY


6/24

Introduction of the company:

Company Name:

Our company offers distribution services in Pakistan. Mainly it provide services

to the region of Islamabad and Rawalpindi. It provide services to different

companies like

Lindt

Heinz

Hersheys

Our market need is to cater the different shops of its target market and providing

them these products on time.

product

1.1. MARKETNEEDS:

Take & Taste Corner will be starting its operation in F-8 markaz Islamabad.

Our focus will be on the following areas that are important to our customer.

Customer Care: The customer is the boss. The customers will be impresses

by the standard of customer care they receive.

Take out customers: The number of take out customers has greatly increased

over the past few years. Due to some political instability and terrorists threatsthe people are now reluctant to dine in rather they prefer to take the food back

home and enjoy with their families. The customers will have access to our

take out at any time of the day.


7/24

Quality food: The customers of Islamabad are very sophisticated and they are

very conscious about the quality of the food. Take & Taste Corner will deliver

the best quality food to its customer.

1.2.MARKETANALYSIS:

Islamabad is a growing fast food market and the customers are very much

keen for good quality outlets. Some of the features of the market are:

1.2.1.MARKETDEMOGRAPHICS:

Islamabads total rural population is 630,000 and its majority

consists of middle class employed people. They are sophisticated

and health conscious people. The culture of the city is a mixed

culture. The people belong to different background Punjabis

account for 65% followed by the Urdu speaking around 10%

Pashto at 10% and others at (Sindhi, Balochi, Kashmiri etc) at

15%.

Our main focus will be the people belonging to the age group of

22-45.

1.2.2.MARKETTRENDS:

In recent years the trend of fast food eat out has greatly increased

in the city and big companies like MacDonalds and KFC have

also opened their branches. The people are now looking for more


8/24

variety and healthy food. The numbers of take out customers have

increased to a great extent. Take & Taste will try to capture the

market through its healthier environment and outclass customer

care.

1.2.3.MARKETGROWTH:

The first ever fast food was opened in Jinnah Super by the name of

`Black Beard'. It was followed by `Sam', also in Jinnah Super and

`Heaven' and `Point' at Super Market. The three have long closed

down. Food lovers say the opening up of MacDonalds, KFC and

Pizza Hut, all part of international fast food chains, in recent years

have completed the journey started by Black Beard.

Over the past years the fast food industry has a rapid growth in the

city. It has moved from the upper class to the middle class. Now

majority of the people have access to the fast food outlets and the

prices are also very low.

1.3.COMPANY:

Take & Taste corner will be a partnership company with 4 partners, each

contributing equal amount of capital. A total of 10 employees initially will

work for the organization. The fast food outlet will be located in the F-8

markaz (Ayub Market) Islamabad which is a very famous market of the city.

The area of the store is 720 square feet. Seating capacity for the customers is

around 20-25. Our take away staff will work for the whole day from 9am to

11pm in shifts.


9/24

1.3.1.MISSION STATEMENT:

Take & Taste corner is committed to good food, good health and

provide each customer a food experience to set new standards in value,

service, cleanliness and quality.

1.3.2.PRODUCTSOFFERING:

Take & Taste Corner will offer the all new Hot burger which will be

differentiated and superior to competitors. The taste and the juice in

every bite of the food that customers take at our corner will be an ever

new experience.

Burgers are made by the company itself and the stuff used to make the

burger is fresh and sterilized.

French fries are made from fresh potatoes along with a special recipe.

The meat used is Halal and fresh. Frozen meat is avoided as it may not

give our customers the true taste.

Ice cream will be offered in the summer season. For this purpose

company has hired some employees experienced from Chaman ice

cream Lahore who will be making delicious ice cream for our

customers.

All present brands of cold drinks in the market are available at the

store.

Dining at Take & Taste Corner is a great experience of quality

service along with healthy food and soothing environment.

1.3.3.POSITIONINGOFPRODUCT:


10/24

Our products will be positioned in a very special manner. The

customers will know that the product they are eating is great in both,

taste and health.

The products will be developed so that they may be aesthetically

pleasing. Take & Taste Corner will also arrange birthday parties. Our

superior customer service will help us to create long term relationships

with our customers and satisfy their needs.

1.3.4.SWOT ANALYSIS:

The following SWOT analysis gives the strength and weaknesses of

the company and threats and opportunities that surrounds it.

1.3.4.1.STRENGTHS:

Spacious outlet with clean environment and experienced staff

with great customer care.

Fresh inputs for the products that keeps the taste alive.

Great customer service and customer support staff that makes

dining at Take & Taste Corner a great experience.

High quality product offering that is superior to competitors

in both taste and presentation.

1.3.4.2.WEAKNESSES:

Take & Taste Corners name lack brand equity.

Very low advertising budget.


11/24

1.3.4.3.OPPORTUNITIES:

Increasing trend of the customers towards fast food.

There are three renowned universities and two colleges

surrounding the outlet. Students are a great source of income

for the fast food in Islamabad.

Different banks and an office of a telecom companys finance

department which have almost 100 employees.

1.3.4.4.THREATS:

Unstable political environment of the country.

Emerging obesity awareness.

1.4.COMPETITIONANALYSIS:

Daintys: The biggest competitor for Take & Taste Corner will be this

restaurant.

Mr. Cod: This restaurant also offers good products and has huge clientele.

Although they offer a high range of products but they are expensive.

2.MARKETING STRATEGY:

Our business marketing strategy is to establish a new business in the current market

of Islamabad. Whose competitors are the MacDonalds and KFC who are providing

the products on high rates, But T&T will come in the market by the additional

packages of products and services for the benefit of customers by providing them

freshest, most creative, health conscious, high quality nutrient food with in the

reasonable price.


12/24

T&T Corner will approach the marketing of the offered products in different ways.

T&T will introduce the customers to the offered products at the outlet in Islamabad. It

will also serve as a place where suggestion to improve our products can be gathered.

The T&T will introduce and sale their product to potential buyers from

advertisements by which they can view the details about our products and order.

Outlet will advertise its high quality, freshest, most creative health conscious food

through ads in local newspapers, magazines, and also through the pamphlets. The

products of T&T will be placed in festivals and different occasions by whichthis will

open the offered product to millions of potential customers and also introduces them

to companys Phone from where they can order the desired product. Also this may

result in long-term relationships with the customers.

2.1.MARKETING OBJECTIVES:

Experience an increase in new customers by which more motivation

towards our product.

Maintain positive, steady, growth each month.

Generate at least (300,000) rupees in sales per month.

2.2.FINANCIAL OBJECTIVES:

Our priority with customer satisfaction is to improve our growth for each year.

Reducing the variable costs through association with food production.

Reduce the cost through proper training of our employees about growth bywhich our budget can increase.

2.3.TARGET MARKET:

The market can be divided into three target populations:


13/24

Individuals: People who want to have delicious refreshment by themselves

including Males, Female, and Youngsters.

Families: A group of people, either friends or a group of relatives who dining

together.

Take Away: People who mostly prefer to eat burgers, ice creams in there

home or at a different location as compare to actual burger outlet.

The T&T Corner customer age is not a compulsory subject, because all age

groups can enjoy at our outlet.

Characteristic of the Target Market:

The most defined characteristics of the target market are

These areas have a large population consisting of

Families who have household disposable incomes over Rs.20, 000.

Many visitors who stay in Islamabad for visit many places.

Every employed individual.

Students of the universities & colleges surrounding the outlet.

T&T Corner arrives at a profile of the primary customer by the

combination of various demographic factors, which are as follows:

Young professionals who work close to the location.

Students of different colleges & schools.

Sophisticated families who live nearby.

2.3.1.STRATEGY:

The single objective is to position T & T Corner as the premier Burger

outlet, OR Area, Commanding a majority of the market share within

five years. The marketing strategy will seek to first create customer


14/24

awareness regarding their services offered, making more customer, and

work for customer attraction.

The message that T & T will seek to communicate is that T & T offers

The freshest,

Most creative,

Health conscious,

More attractive

High quality nutrients food

Reasonably priced, food in Islamabad.

2.3.2.POSITIONING

T& T Corner will position itself as a reasonably priced refreshment

corner. Consumers who appreciate high-quality nutrient food will

recognize the value and unique offerings of T & T Corner. Customers

will be single as well as families.

The products like the

Burgers: will have the freshest ingredients including Vegetables,

Meat, Beef, Chicken, and Mayonnaise.

Ice cream: by the flavor of Almond, Pasta, Tutti-frutti, Vanilla,

chocolate, Pineapple.

Cold drinks: All available brands in the market.

The product will also be developed to enhance presentation; and

everything will be more likely pleasing.


15/24

Communications Methods:

T&T corners offerings will be communicated through a variety of

methods.

By Pamphlets.

By Banners around commercial areas

By Ads given in local newspaper & magazines

By distribution of leaflets to attracts people.

By sign boards

This will be particularly effective because these are the popular

methods consulted when people are looking for things to act.

Take & Taste Image as an Employer:

Employees, play a vital role through their performance behavior. We

will provide the best employment experience to our employees for

achieving the goal of world's best quick-service refreshment outlet

experience to our valued customers.

Our commitment with employees like as,

We value you, your growth and your contributions

Five Principles guide our Commitment:

Learning, Development and Personal Growth: Employees will have

the opportunity to advance in skill, contribution and career level

through coaching, training and feedback.


16/24

Resources to Get the Job Done: More surety of comfortable place

work with access materials, equipment and information will provide

for job.

Recognition and Respect: All employees will have better dignity &

respect for more contribution of business success.

Values and Leadership Behaviors: Every employee will listen

&communicate freely & honestly for the interest of all other people

including (customers, owner, and suppliers)

Total Compensation: Pay and Rewards program follows a "Pay-for-

Performance" philosophy, the better results produced by employees,the greater pay opportunities.


17/24

3.MARKETING MIX:

3.1.PRODUCT

Our primary offerings would constitute the following items

Burgers

French fries

Ice-cream


18/24

Shakes

Take & Taste will constantly bring innovations in its products. New range of

burgers with variants will be introduced to retain customer interest. Besides

new items will be frequently launched based upon the customer taste.

3.2.PRICE

Take & Taste will charge normal price prevalent in the market. Our strategy

would be to charge a lower price affordable to greater number of customers.

So we could attract more customers who cant afford the prices offered by the

competitors of Take & Taste. Besides we will offer the products of various

price ranges.

Special discounts will be offered on:

Family Purchases & Big Orders

Membership scheme will be available to the customers so that they will

get up to 20% off on their purchases exceeding Rs. 1000.

Routine Customers will also be entertained by special Discounts.


19/24

PRICES OFFEREDAT TAKE & TASTE

Items PricesBURGERS Rs.Chicken Cheese Burger 100

Chicken Burger 95

Beef Burger 85

Mayonnaise Salad Burger* 60

FRIES Rs.Fries Large 35

Fries Mini 25

ICE CREAM Rs.3 Scoops 105

2 Scoops 85

1 Scoop 50

DRINKS Rs.Soft Drinks 25

Shakes 45


20/24

SHAKES Rs.Milky Cream Shake 55

Plain Milk Shake 40

*OURSPECIALTY

3.3.PLACE

Take & taste will be Located around F-8. It is a densely populate area. It is

surrounded by

Offices

Companies

Universities & colleges

Shops

Some of the famous universities, colleges & offices are situated around

Take &Taste, who are our prospect customers

It is accessible to all the residents around the city. People can easily access

us without the problem of parking.

Place Convenience for Customers

In the heart of commercial area

We will provide spacious parking area

Its nearby renowned universities

Easily accessible


21/24

3.4.PROMOTION

Take & Taste due to its financial constraints will adopt a small scale

promotional approach. Its main promotional means would constitute the

following:


22/24

Local newspaper ads

Pamphlets

Adds on local cable networks

Banners around commercial areas

Personal Contacts

Promotion is schools & colleges

4.FINANCIAL STRATEGY:

Financial Analysis of Take & Taste Include the following heads,

Break even analysis

Projected Sales Statement

Projected Income Statement

Projected Balance Sheet

4.1.BREAKEVEN ANALYSIS

A breakeven analysis determines the sales volume, at a given price, that is

required to recover total costs.

Expressed as a formula, breakeven is as follows.

Break even Sales = Fixed Cost / (1- Variable Cost / Sales)

Break even Sales = 27, 44,400 / (1- 8, 40,000 / 42, 00,000)

Break even Sales = 34, 30,500 PKR

The graph of Break even analysis is not possible because this is not a

manufacturing concern in which products to be made.


23/24

TAKE & TASTE

PROJECTED SALES

FORTHE YEAR2008

TAKE & TASTE

PROJECTED SALES

FORTHE YEAR2009

SALES PERDAY PERMONTH PERANNUM

PKR PKR PKR

BURGERS 8,750 262,500 3,150,000ICE CREAMS 2,500 75,000 900,000FRIES 1,250 37,500 450,000SHAKES 875 26,250 315,000SOFT DRINKS 1,215 36,260 435,000

TOTAL SALES 14,590 437,510 52,50,000

TAKE & TASTE

PROJECTED SALES

FORTHE YEAR2010


PKR PKR PKR

BURGERS 11,815 354,375 4,252,500ICE CREAMS 3,375 101,250 1,215,000FRIES 1,690 50,625 607,590SHAKES 1,180 35,440 425,250SOFT DRINKS 1,630 48,960 587,160

TOTAL SALES 19,690 590,650 7,087,500


PKR PKR PKR

BURGERS 7,000 210,000 2,520,000ICE CREAMS 2,000 60,000 720,000FRIES 1,000 30,000 360,000SHAKES 700 21,000 252,000SOFT DRINKS 970 29,000 348,000

TOTAL SALES 11,670 350,000 4,200,000


24/24

SALES CHART:

0

2000000

4000000

6000000

8000000

Years

Sales

Years 2008 2009 2010

Sales 4,200,000 5,250,000 7,087,500

1 2 3

PROFITABILITY CHART:

profit

profit

2008

615600

profit

2009

1470000

profit

2010

2859525

0

1000000

2000000

3000000

4000000

2008 2008 2009 2009 2010 2010 2011

profit

project on development of new business

Documents