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- 1. 1 1 COFFEE TEA CORNER Name of Company: COFFEE TEA
CORNER
- 2. 2 2 Name of Company: COFFEE TEA CORNER Group Members:
M.HarisArshad Supervisors Name: Sir Naveed Khan Name of University:
Dadabhoy institute of higher Education
- 3. 3 3 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
- 4. 4 4 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 caf 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.
- 5. 5 5 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.
- 6. 6 6 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. Its
not just a product but its 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.
- 7. 7 7 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 caf. 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)
- 8. 8 8 RISK MANAGEMENT: RISK ASSESTMENT: 65% of chance that its
going to be successful 35% chance of failure. But according to our
research chances of a big setback is almost negligible.
- 9. 9 9 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.
Its 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.
- 10. 10 10 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 companys name and acquire a
strong position in customers 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.
- 11. 11 11 FINANCIAL PLANNING: GOALS: To establish a caf 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
- 12. 12 12 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
- 13. 13 13 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 ---------
- 14. 14 14 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
- 15. 15 15 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.
- 16. 16 16 GOALS: We are coming with one initial caf 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.
- 17. 17 17 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 dont 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.
- 18. 18 18 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.