BUSINESS PLAN

ON

HARD ROCK MOBILE CAFÉ

SUBMITTED TO: - SUBMITTED BY:- PROF HARSH MAHESHWRI DWAIPAYAN GOSWAMI PGDM SERVICES (09-11) PGSF0913

COMPANY INFORMATION

COMPANY NAME: HARD ROCK INCORPORAION

BUSINESS FORM: MOBILE COFFEE SHOP

BUSINESS NAME: HARD ROCK MOBILE CAFÉ

ADDRESS: #22, Camac Street, Park Street H.O. Kolkata -700016

FAX: 509-6666-5898

TELEPHONE: 033-22830773

COMPANY’S WEBSITE: www.hardrockmobilecafe.co.in

EMAIL ADDRESS: goswmidwaipayan@gmail.com

CONTACT PERSON: DWAIPAYAN GOSWAMI

DATE OF ESTABLISHMENT: 1st august 2010

DAYS OPEN: 7 DAYS A WEEK

TIMINGS: 7:00 A.M. – 9:00 P.M.

COMPANY’S LOGO:-

TABLE OF CONTENTS

Executive summary Type of Business Company summary Management Product/Service and Competition Exit

1 Background and Purpose1.10 Current Situation

1.20 The resource based concept

2 Objectives2.10 Short Term2.20 Long Term

3 Market Analyses3.10 Overall Market3.20 Specific Market3.30 Competitive Factors3.40 Pricing3.50 Advertising & promotion.

4 Development and production 4.10 Resource Requirement 4.20 Quality Assurance 4.30 Identify Locations

5 Marketing 5.10 Marketing strategies and resources 5.20 Sales Forecast

6 Financial Plans 6.10 Financial Statement 6.20 Break-Even Analysis 6.30 Sales Forecast 6.40 Cash Flow

7 Organizational Management 7.10 Key personnel resources 7.20 Human Resource Management

8 Summary and Conclusions

9 Scheduling and Milestone

EXECUTIVE SUMMERY

COMPANY’S ADDRESS: HARD ROCK MOBILE CAFÉ #22, Camac Street, Park Street H.O. Kolkata -700016

WEBSITE: - www.hardrockmobilecafe.co.in

EMAIL ID: - goswamidwaipayan@yahoo.com

CONTACT: - DWAIPAYAN GOSWAMI

TYPE OF BUSINESS: - The hard rock mobile coffee shop is a specialty beverage retailer. It uses a system that is new to the beverage and food service industry to provide hot and cold beverages in a convenient and time-efficient way. Mobile coffee shop provides its customers the ability to drive up and order their choice of a custom-blended espresso drink, freshly brewed coffee, or other beverage. TDP is offering a high-quality option to the fast-food, gas station, or institutional coffee. The hard rock mobile café will target two markets:

The Daily Commuter: - Someone traveling to/from work, out shopping, delivering goods or services, or just out for a drive.

The Captive Consumer: - Someone who is in a restricted environment that does not allow convenient departure and return while searching for refreshments, or where refreshments stands are an integral part of the environment.

MANAGEMENT: - Mobile café located in heart of city of Kolkata will lead by Mr. Dwaipayan Goswami who has 4 years of experience in sales marketing in food products in FMCG sector. He has done his MBA in service sector with in dual specialization of IT and Marketing.

PRODUCTS AND SERVICE COMPETITION: - Mobile coffee shop provides its patrons the finest hot and cold beverages, specializing in specialty coffees and custom blended teas. In addition, it will offer select domestic soft drinks, Italian sodas, fresh-baked pastries, and other confections. Seasonally, TDP will add beverages such as hot apple cider, hot chocolate, frozen coffees, and more.The Hard Rock Mobile Café considers itself to be a player in the retail coffee house industry. Primary competition will come from following sources: Café Coffee Day, Barista, Traditional coffee shop, Fast Food outlets and even from Convenience stores.

USE OF PROCEED: - We need at least 50 lakh for the starting of the business.

EXIT PLAN: - Our projected value at the end of the third year is r projected value of the business is 15, 00,000 this represent an IRR of 60%. Hard Rock Cafe chooses to become the Drive-thru version of Starbucks, obtaining thousands of rupees through an initial public or private offering that would allow the company to open twenty to thirty facilities per year in the region of the country between the mountain ranges, in both major and small metropolitan communities. This is the preferred Exit Strategy of the Management Team. The danger in this is that competitors would rise up and establish a foothold on a community before--or in the midst of--the arrival of The Hard Rock, causing a potential for a drain on revenues and a dramatic increase in advertising expenditures to maintain market share.  Knowing these risks--and planning for them--gives company the edge needed to make this scenario work.

BACK GROUND AND PURPOSE

CURRENT SITUATUION: - Hard Rock Mobile café would be operating at different location in Kolkata. The main idea behind is to target the daily commuters and captive consumers. It will also generate an opportunity for creating the job. Differentiating ourselves from other more traditional cafes has given us the ability to effectively compete on the beverage and pastry side of the business with the already entrenched competition. Sales are brisk and in-line with projections. Hard Rock café would provide one of the best coffee services with the state-of-art-technology available in various mobile coffee shops.

THE RESOURCE BASED CONCEPT: - Besides the financial and technical support that is being provided we need to have fresh coffee beans which is integral part of our business success. Apart from that the customized coffee van, coffee machine are also be considered as an integral part for the success of our business.

OBJECTIVES

SHORT TERM: - The Hard Rock Mobile Cafe has established three firm objectives it wishes to achieve in the next three years:

1. Thirteen Drive-thru locations and four fully booked Mobile Cafes by the end of the third year.

2. Gross Margin of 45% or more.

3. Net After-tax Profit above 15% of Sales.

LONG TERM: - The Mobile Café Objective is in three-fold, with each being as integral to our success as the next.

1. Product Objective - Provide customers the finest quality beverage in the most efficient time.

2. Community Objective - Provide community support through customer involvement.

3. Economic Objective - Operate and grow at a profitable rate through sound economic decisions.

MARKETING ANALYSES

OVER ALL MARKET: - Indian Coffee Board puts country's coffee production at 2.90 tones (Post monsoon estimation) and 3.06 tones (Post Blossom Estimation) respectively. For the present crop year beginning October, the board has estimated an output of Arabica at 101,525 tones and Robusta 204,755 tones. Karnataka leads the country with 2.05 tones (Post monsoon estimation) and 2.21 tones (Post Blossom Estimation) production followed by Kerala and Tamil Nadu. According to ICO estimate, India produced over 3.1 million bags of 60 kgs each in 2009 compared with 3.3 million bags in 2007.Country's coffee exports during fiscal 2008-09 stood at 1.96 lakh tones signifying marked decline from 2.18 lakh tones in 2007-08.

SPECIFIC MARKET: - The Mobile Café will focus on two markets:

1. The Daily Commuter - someone traveling to or from work, out shopping, delivering goods or services, or just out for a drive. Commuters are defined as any one or more individuals in a motorized vehicle traveling from point "A" to point "B." The Mobile Coffee shop’s greatest concentration will be on commuters heading to or from work, or those out on their lunch break

2. The Captive Consumer - Someone who is in a restricted environment that does not allow convenient departure and return while searching for refreshments, or where refreshments stands are an integral part of the environment. Examples would include high school and college campuses, where there is limited time between classes, and corporate campuses where the same time constraints are involved, but regarding meetings and project deadlines, and special events--such as carnivals, fairs or festivals-where there is an admission price to enter the gate, but exiting would mean another admission fee, or where refreshments are an integral part of the festivities.

COMPETITIVE FACTORS: - There are four general competitors in The Mobile coffee shop drive-thru market. They are the national specialty beverage chains, such as Starbucks and Barista, local coffee houses--or cafes--with an established clientele and a quality product, fast food restaurants, and convenience stores. There is a dramatic distinction among the patrons of each of these outlets. Competitors to the Mobile Cafes on campuses would include fast food restaurants-assuming they are close enough to the consumer that they can get there and back in the minimal allotted time, vending machines, and company or school cafeterias. The consumers in this environment are looking for quick, convenient, fairly priced, quality refreshment that will allow them to purchase the product and return to work, class, or other activity. Competitors to the Mobile Cafes at events such as festivals and fairs would include all the other vendors who are licensed to sell refreshments.

PRICING: - We will keep the price of instant coffee at Rs.20 which is quite cheaper as compared to Café Coffee day or Barista

ADVERTISING AND PROMOTION: - We believe in quality of products so our service products will self flurries on goodwill & words of mouth.

DEVELOPMENT AND PRODUCTION

RESOURCE EQUIPMENT: - We need at least 50 lakh for starting our business which includes buying of customized Van, Coffee Machines and Computers.

QUALITY ASSURANCE:-

1. We create a sense of quality assurance of green and roasted coffee products, new coffee product development, and coffee specification programs.

2. Coffee products for quick-service restaurants, fine and casual dining and convenient stores.

IDENTIFYING LOCATION: -

We will have our head quarters in above mention address and from their we will operating at various location in the city of Kolkata

.

MARKETING

MARKETING STRATEGY AND RESOURCES:- Hard Rock Mobile Café target market is the mobile individual who has more money than time, and excellent taste in a choice of beverage, but no time to linger in a cafe. By locating the Drive-Thrus in high traffic/high visibility areas, this unique--and abundant--consumer will seek. The Hard Rock Mobile Café out and become a regular guest.

To penetrate the target market for the Mobile Cafes, these units will do what they were designed to do. The Hard Rock will take the cafe to the customer. By using the community support program Hard Rock is instituting, arrangements will be made to visit a high school, college campus, or a corporate campus once or twice a month (Even visit these facilities for special games, tournaments, recruiting events, or corporate open houses). And, for every cup or baked good sold, a portion is returned to the high school or college. It becomes a tremendous, painless way for the institution to gain a financial reward while providing a pleasant and fulfilling benefit to their students or employees.

SALES FORECAST: - In the first year of its operation Hard Rock will have ten customized mobile vans will be fully operated. The first five will be operated within third month of this plan and the next five will be operated by end of this year. Hard Rock is building in a certain amount of ramp-up for each facility while commuters become familiar with its presence. These fully operated mobile vans will generate more than 5 lacs in the first year of its operation.

In the second quarter of the second fiscal year, The Hard Rock will deploy next 10 fully operated mobile coffee shops. Hard Rock Chain expects all ten mobile units to generate revenue 10, 00,000 in the second year. In the third fiscal year, with an additional 10 more mobile vans deployed, Hard Rock expects to see amount of revenue generated is something close to15 lacs.

FINANCIAL PLANS

FINANCIAL STATEMENTS: - The Hard Rock Café Company’s financial picture is quite promising. Since it is operating a cash business, the initial cost is significantly less than many start-ups these days. The process is labor intensive and TDP recognizes that a higher level of talent is required. The financial investment in its employees will be one of the greatest differentiators between Hard Rock and its competition. For the purpose of this pro-forma plan, the facilities and equipment are financed. These items are capital expenditures and will be available for financing. There will be a minimum of inventory on hand so as to keep the product fresh and to take advantage of price drops, when and if they should occur.

BREAK-EVEN ANALYSIS:-To arrive at the average monthly fixed costs, Hard Rock cafe calculated the fixed costs for the Drive-thru. Using the average price per unit, less the average cost per unit, divided into the fixed costs of operation, Company concludes that we will need to sell at least the number of units shown in the following table and chart to reach break-even each month.

Monthly Units Break-even Rs. 2986Monthly Revenue Break-even Rs. 75,000

AssumptionsAverage Per-Unit Revenue Rs.20Average Per-Unit Variable Cost Rs.2Estimated Monthly Fixed Cost Rs. 10,000

SALES FORECAST:-Revenues for the first year of operation are based on an almost 10% growth rate from month to month. This is an aggressive estimate, but we feel that our strong emphasis on marketing will have positive results. Annually, beyond the first year of operations, we're predicting a growth rate of roughly 10%. We'll have a better idea of potential growth rate beyond year one as we make our way through our first year. The plan will be updated as we receive more information.

CASH FLOW:- Initial capital requirement (cash outflow) = 50, 00,000(-)Investment recovery (cash inflow) = 75,000 p.m (+)Operating expense = 25,000 p.m (-) = 50,000 p.m

BALANCE SHEET

ASSETS

Current Assets Cash 15, 00,000Account receivable 2, 25,000Deposits Prepays 3, 41,000Inventory 1, 00,000

Total Current Assets 21, 66, 000

Fixed Assets Vehicles 5, 00,000Start up costs 50, 00, 000Other equipments 3, 00,000Less Accumulated Depreciation (3, 75,000)

Total Fixed Assets 54, 25,000

ORGANIZATIONAL MANAGEMENT

KEY PERSONNEL RESOURCES: - The Mobile Coffee Shop is a relatively flat organization. Overhead for management will be kept to a minimum and all senior managers will be "hands-on" workers. There is no intention of having a top-heavy organization that drains profits and complicates decisions.

At the zenith of this three-year plan, there will be four "Executive" positions: chief operating officer, chief financial officer, chief information officer, and director of marketing. There will be other mid-management positions, such as district managers for every four Drive-thrus, and a facilities manager to oversee the maintenance and stocking of the Mobile Cafes, as well as overseeing the maintenance and replacement of equipment in the Drive-thru facilities.

HUMAN RESOURCE MANAGEMENT: - The management of hard rock cafe realizes that motivated and committed human resources are the key to the success of a coffee business. Therefore the company took great care in selecting the right kind of people and made an effort to retain them. Consequently, the company's human resource policies reflected its commitment to its employees. The Company relied on its baristas and other frontline staff to a great extent in creating a kind of experience which differentiated it from competitors. Therefore the company paid considerable attention to the kind of people it recruited. The Company’s recruitment motto is "To have the right people hiring the right people."

SUMMARY AND CONCLUSION

The Hard Rock will penetrate the commuter and captive consumer markets by deploying Drive-thru facilities and Mobile Cafes in the most logical and accessible locations. The Drive-thrus are designed to handle two-sided traffic and dispense customer-designed, specially ordered cups of specialty beverages in less time than required for a visit to the locally owned cafe or one of the national chains. The company has identified its market as busy, mobile people whose time is already at a premium, but desire a refreshing, high quality beverage or baked item while commuting to or from work or school. In addition to providing a quality product and an extensive menu of delicious items, to ensure customer awareness and loyalty, as well as positive public and media support, Hard Rock could be donating up to 7.5% of revenue from each cup sold in individual Drive-thrus to the charities of the customers' choice.

SCHEDULING AND MILESTONE

The Milestone table reflects critical dates for occupying headquarters, launching the first Drive-thru and subsequent Drive-thrus, as well as deployment of the mobile units. The company also defines our break-even month, our website launch and subsequent visitor interaction function, and other key markers that will help us measure our success in time and accomplishment.