Business Plan(Fetch Pizza Corner).doc

Business Plan: Fetch Pizza Corner

Fetch Pizza Corner

(Redefining Satisfaction)

Prepared For

Prepared by

Date of Submission :

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20th June, 2011

LecturerSchool of BusinessUniversity of Information Science & Technology

Dear Madam,

We are writing this letter to inform you that I have prepared a Business Plan. The plan consists of the overview of a new business. I tried to gather information to make it specific and coherent. Through the process of preparing the plan, I managed to get some practical experiences.

We have tried my best to make the plan as reflective as possible. Assertively, Business Plan will meet the expectations. We are determined to provide any further information or clarification, if necessary.

Thank you.

Sincerely Yours

Table of Contents

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Acknowledgment...........................................................................................................................................4

Executive Summary.....................................................................................................................................5

Mission & Vision.............................................................................................................................................6

Vision....................................................................................................................................................................6

Vision of Fetch Pizza Corner...................................................................................................................7

Keys to Success..............................................................................................................................................7

Management....................................................................................................................................................8

Investors & Their Proportions...............................................................................................................8

Organization Structure..............................................................................................................................9

Market Analysis: The Overall Market Services.........................................................................10

Market Analysis Summary.....................................................................................................................10

Market Analysis............................................................................................................................................11

Market Analysis (PIE)................................................................................................................................12

Market Segments........................................................................................................................................12

SWOT Analysis..............................................................................................................................................13

Four Areas of Analysis.............................................................................................................................14

Key Competitive Strengths...................................................................................................................14

Key Competitive Weaknesses.............................................................................................................15

Opportunities.................................................................................................................................................15

Threats & Risks............................................................................................................................................15

Product Strategies.....................................................................................................................................16

Pricing Strategies.......................................................................................................................................16

Promotion Strategies................................................................................................................................16

Place....................................................................................................................................................................17

Marketing Strategy....................................................................................................................................17

Web Plan Strategy......................................................................................................................................18

Website Marketing Strategy................................................................................................................18

Development Requirements.................................................................................................................18

Target Market Segment Strategy.....................................................................................................19

Competition and Buying Patterns.....................................................................................................19

Process of Servicing..................................................................................................................................20

Employee..........................................................................................................................................................20

Physical Evidence........................................................................................................................................20

Human Resource Planning.....................................................................................................................20

Job Analysis.....................................................................................................................................................21

Job Description.............................................................................................................................................21

Job Requirements........................................................................................................................................21

Acknowledgment

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Preparing term paper is really a complex task. It requires enormous time & attention in every step of it. But it gave me a true feeling of creation & helped me to understand my ability to work.

We are grateful to our course instructor Nurun Nahar Anee for giving us the opportunity to become proud students of her course.

We are highly indebt to our course instructor for her proper guidance & providing me with the information regarding the business plan. We would also like to thank Mr. Tanin Rahman (Creative Head of Prowess Media) for his help regarding this term paper.

Finally, we want to thank the almighty Allah for keeping me fully free from any disaster.

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Executive Summary

Fetch Pizza Corner is a new player in the restaurant industry. The restaurant is in a comfortable, familiar, large city that has a strong need for additional dining options. Bolstered by the need for more choices in family-oriented dining experiences, combined with the option for home-delivery, the restaurant is positioned to take advantage of the market need and serve the families in the Baily Road area.

The population is rapidly growing with new subdivisions and young families moving to the Baily Road area. It is Fetch Pizza Corner’s strategy to exploit the first-mover opportunity and establish itself as the preferred pizza provider to the area. I believe a locally-owned restaurant is the best option to serve the rapidly growing population with a fresh, unique menu as opposed to a national chain franchise.

This business plan calls for an exciting, profitable start-up year ahead with future forecasted growth as I meet the demands of the community. In all, this plan describes a healthy company with good growth prospects, looking to manage its orderly growth in the near future.

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Mission & Vision

Mission

Fetch Pizza Corner creates a friendly and pleasant atmosphere for customers in a well-designed and productive environment in which people can work happily. We are sensitive to the look and taste of good pizza as well as to the high-quality ingredients. We look to provide the best possible value to our customers who desire great tasting pizza and to provide customers with the satisfaction of receiving a great value, both tangibly and intangibly. Additionally, we are the first home-deliverer of pizzas in our area.

Our customers are our neighbors as we are residents of our market area. We will also create and nurture a healthy, creative, respectful, and fun working environment, in which our employees are fairly compensated and encouraged to respect the customer and the quality of the product we produce. We seek fair profit, just enough to keep the company financially healthy for the long run and to fairly compensate owners and investors for their investment and risk.

Vision

Vision Statement

Our vision is to run a profitable business by providing best quality pizzas and aesthetician services in a caring, upscale, professional environment.

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Vision of Fetch Pizza Corner

Customers first Professional Respect each other Work as one team Committed to continuous improvement

Keys to Success

The keys to success in this business are:

Delivering the customer value proposition. Marketing : promoting a new company, product,

and delivery channels to a rural community. Product quality and consistency. Pricing effectively with respect to the project

quality and customer value proposition. Family-oriented atmosphere with occasional nights

of family entertainment. Management : products delivered on time, costs

controlled, marketing budgets managed. There is a temptation to fixate on growth at the expense of profits.

Reporting and controls in place for inventory and financials.

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Management

Management Team & Responsibilities

The management team will comprise of four personnel. They are:

Managing Director : Managing director will look after the human resource and marketing sector. Apart from this area, he will also always monitor overall day-to-day activity in a summarized form, from the regional head.

Regional Head : Regional head will see how accountants, service Managers & other employees are doing in their perspective areas.

Service Manager : Service managers will be accountable for the service quality provided by the therapist and trainee.

Accounts Manager : Accounts manager will be accountable for account related matter of the business.

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Investors & Their Proportions

Organization Structure

Managing Director: Regional Head (Dhaka):

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Regional Head (Chittagong): Accounts Manager (Dhaka): Accounts Manager (Chittagong): Service Manager (Dhaka): Service Manager (Chittagong):

Market Analysis: The Overall Market Services

Fetch Pizza Corner offers high quality pizza to a growing community that currently has limited availability of restaurants and no availability to delivery. At start up we will be open for dinner 4 p.m. to 10 p.m. Sunday - Thursday and 3 p.m. to 11 p.m. Friday and Saturday. We will consider opening earlier and serving lunch if there is a demand, and if forecast and financial analysis can justify the increased costs.

Our menu will include 4 sizes of pizzas with various combinations of toppings. Predefined, high-margin pizzas will be highlighted on the menu. Additionally, breadsticks, soft drinks will be included in the initial menu offerings.

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Market Analysis Summary

Our primary target market is people who desire a comfortable, family-oriented environment for dine-in pizza. Our secondary target market also desires a delivery service for pizza, or a take-out approach. There is overlap of these segments.

Baily Road and its surrounding communities are a growing middle-class area with nearly 2 million residents. A majority of these residents are families of four or more. The boom in the area is primarily in response to an exodus of families moving out of the over-populated areas and into a more rural setting.

According to a Growth Plan conducted in 2005, population within Baily Road is expected to increase. However, the number of persons per household is expected to decline, meaning the need for additional housing in Baily Road will continue to grow. From the same plan, population is listed as being evenly distributed by age groupings, with approximately 33% of the population being minors. Another 40% are less than 54 years of age, indicating a major concentration of the Baily Road population being families. The report forecasts there being nearly 4,500 households in the Baily Road by 2005. This is driving the need for more quality, family-oriented restaurants.

Additionally, Baily Road residents frequently visit the building in which fetch Pizza Corner is located. Tanning and video rental businesses are next to the restaurant, so we are providing a new convenience for families to select a movie and pick up a pizza.

With the expected continued growth in the area, estimated at 7% annually, opportunities to serve Baily

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Road and its surrounding communities will increase. The company will sell predominantly to individuals, but it will also accept some catering jobs to individual parties, schools, and company functions in the Baily Road area.

Market Analysis

Potential Custome

rs

Growth

2008 2009 2010 2011 2012 CAGR

Dine-In or Take-

Out7%

13,860

14,830

15,868

16,979

18,168

7%

Delivery 7% 5,000 5,350 5,725 6,126 6,555 7 %

Total 7%18,86

020,18

021,59

323,10

524,72

37%

Market Analysis (PIE)

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Market Segments

To promote our product we analysis the market and divided the market into some segments based on geographic, demographic, psychographic, and behavioral variables. We divided Bangladesh into three regions: Dhaka, Chittagong and Sylhet. People lived in these regions includes child, teenager and old people. Their age is between 1 to 100 years. All the people do not required that service. So based on age we get other segments. Based on age we make three segments- bellow 25 years, between 25 to 59 years and more than 60 years.

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This table shows some information.

Zone Dhaka Chittagong Sylhet

Population 38987140 24119660 7896720

Year/Age 2011 2001 1991

Below 25 58.02% 57.82% 60.07%

25-59 35.96% 36.05% 34.51%

60+ 6.26% 6.13% 5.42%

(Source: Census of population & sample variance, 2010)

SWOT Analysis

SWOT Analysis is an effective method of identifying our internal and external environment summarized as our strengths, opportunities, weaknesses and threats and is the key to business planning success.

Carrying out this in-depth analysis using the SWOT framework will show where we stand today with our business and will highlight our internal strengths and weaknesses, the opportunities available to our business and the threats that may be coming our way.

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Four Areas of Analysis

Our SWOT analysis will help us focus and build on our strengths, minimize weaknesses, maximize our opportunities and mitigate any weaknesses and is the foundation of any business plan or marketing plan.

Strengths - internal analysis Weaknesses - internal analysis Opportunities - external analysis Threats - external analysis

Once this analysis is complete we will have to put various actions plans together to focus on what will make our business a success in the future.

Key Competitive Strengths

As our prime target is to provide best quality of pizza, we think it is our main strength.

We will provide pizza to our customer at a low price. Our primary target is to provide best quality pizza in a low price.

Our location may be a good strength for us. As Baily road is the place as most of the upper- middle and middle class people live nearby, we may find good response.

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Key Competitive Weaknesses

As all the ingredients price are increasing day by day, we may not be able to keep the same price; we may have to raise the price.

At the very beginning we will not be able to provide variety of pizzas.

As we will keep waiter, we are needed to pay handsome salary.

We will be needed to spend a lot of money to build awareness of the target customer.

As there are franchising fast food shops like Pizza Hut® and KFC®, it would be very tough to sustain in market.

Opportunities

We are providing best quality pizzas in a lower price compared to other well known pizza houses, so we will have the advantage.

Our location is one of our opportunities as we will get that much of customer as we target.

Now- a-days people don’t have that much time to take lunch or dinner at home or in weekend. They love to dine out, so it’s our opportunity.

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Threats & Risks

First of all, franchisees like Pizza Hut® and KFC® are the main threats for our business.

As a new Fast Food shop, there will some obstacles to connect with the customer.

Pricing may be the factor to connect with the customer.

As we are providing pizzas at a lower price compared to the others, people might think our quality will not be the same with others.

As our primary location for the business is Baily road. Beside the place people who live there are from middle class. They will not come at daily basis.

Product Strategies

Pizza is our main product. We will provide varieties of pizzas to the customers. We will also provide breadstick and drinks along with it.

Pricing Strategies

We are needed to charge affordable prices so that middle-class people can take our services. We will charge price of our services in such a manner that it will be comfortable enough for an average target consumer.

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Promotion Strategies

In the early stages of our journey, we will choose the print media, namely The Daily Star, Star Weekend magazine, star forum, Brand forum, sports magazines etc, because print media covers a large portion of our target consumers and this kind of magazines will make a great impact in our business. To our corporate consumers we will use mobile messaging as a promotion tool.

Place

To fulfill demands of our target consumers, we will set up four service centers, three within Dhaka metropolitan area: Baily Road, Gulshan-1 and Dhanmondi, and the other one in Chittagong. The branch will be in Khulshi.

Marketing StrategyTo drive customers to Fetch Pizza Corner we will

employ several techniques outlined below.

Advertising in The Daily Star, Brand Forum Magazine, Prothom Alo, and Anondo Alo Magazine will be used to promote the Grand Opening of Fetch Pizza corner. As part of the advertising, a coupon will be available to customers. Intermittent newspaper advertisements will continue throughout the year to

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promote upcoming events. Most initiatives will focus on the local Dhaka Based papers as the target of these papers is specifically the Baily Road residents. Additional marketing efforts will come in the form of on-box coupons for future purchases.

Additionally, family-oriented events will be hosted by Fetch Pizza Corner to attract customers such as trivia nights, birthday parties, and prize giveaways. Frequent buyer cards will be employed to entice repeat customers. Fetch Pizza Corner will also sponsor a local Little League cricket team, and a Soccer team to publicize the restaurant within the community events.

Future plans of working in coordination with the nearby video store to offer "bundle savings" if both pizza and video rentals are purchased will be pursued within the second year of operation.

Web Plan Strategy

Fetch Pizza Corner website will be the virtual business card and portfolio for the company, as well as its online "home." It will showcase the history, product information, and offers for Fetch Pizza Corner. Special online-only offers will be made available on the website, along with customer's opportunity to sign-up for email news and offers.

Fetch Pizza Corner website needs to be a simple yet classy and well designed website that, at the same time, is in keeping with the latest trends in user interface design. Customers will be coming to the site for product information, history, and offers.

Future elements of the site can contain online ordering, if customers express an interest in this functionality.

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Website Marketing Strategy

Our Internet marketing activities will be focused on product information and offers. Future opportunities exist in offering online ordering.

Development Requirements

Fetch Pizza Corner website will be initially developed with few technical resources. A simple hosting provider, Our Local Web services, will host the site and provide the technical back end. The owner's expertise in professional Web development will lead this effort.

The user interface designer will work with a graphic artist to come up with the website logo, and the website graphics.

The maintenance of the site will be done by the owners. If the website rolls out future development such as newsletters and online ordering, the internal staff at Fetch Pizza Corner will design, implement, and execute the technology.

Target Market Segment StrategyIncluding Baily Road and its surrounding areas, no

pizza establishments exist. One or two unpopular fast food outlets serve pizzas at Baily Road, but not as a primary menu item. These pizza outlets are in taverns which are not conducive to family-type atmosphere. No

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eating establishments in the Baily Road area provide home-delivery service.

Competition and Buying PatternsThere is minimal competition for pizza in the Baily

Road area, besides the bar establishments previously mentioned. The closest locales for pizza to the Baily Road area Is Pizza Hut®, but it’s not competing pizza locations deliver to the Baily Road area. Additionally, Fetch Pizza Corner would be the only family-oriented, non-smoking restaurant in Baily Road.

Sales StrategyBaily Road area has expressed its need for

additional restaurants, specifically a desire for pizza. Because of this, there is pent-up demand for pizza in this area. We will expect a high rate of sales growth within the first 3 months as this customer desire is met.

For the next year, we continue to focus on a growing presence in the community and advertising heavily throughout the community.

Process of Servicing

Most importantly, this sort of service desires the perfect and peaceful environment to be effective. Four of the most essential feature of our environment is:

Nice, cold and calm room. Slow, divine music. Dim lights, candles and lamps.

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Great smell and fresh, clean and natural aroma fragrance.

Employee

We will provide the best employees who are also well trained.

Physical Evidence

Our main target is our customer satisfaction. What kind of massage the customer needs, if we are to provide them with their needs – at first, we will have to sort this out.

Human Resource Planning

First we will give advertisement into newspapers. People will apply for their position formally. Then we will call them for interview. There they will be justified by their work & experience.

Job Analysis

Although it is a business firm, but we are not going to give away the controls of our company to outside

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people, means employee. That is why we will take a number of employees, who will be only involved in service but not in core decision making. As we will fill the managing director & other regional posts, initially we will only appoint accountants and service manager.

Job Description

The Regional Head will be under direct supervision of Managing Director. Other employees will be accountable to the Service manager. Although service manager will control the total service quality of the centre but the accountants will be liable to regional head rather than service manager.

Job Requirements

In order to get job to our organization, employees must have some requirements. These requirements are:

Employees must be smart to look at. Having work experience of minimum 2 years in any

well-known fast food shop Fluent in both Bengali & English languages. Ability to control any moment at any time. For administrative level for the respective job all of

them should be graduated from own respective field of study

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Projected Income Statement

Start-up

Requirements

Start-up Expenses

Professional Fees (Legal, Accounting, Consulting) $1,800

Placemats, Stationery, Business Cards $1,100

Renovation $8,300

Marketing $2,500

Rent $2,000

Expensed Equipment $5,000

Insurance $350

Website Development $1,000

Misc Expense $3,800

Total Start-up Expenses $25,850

Start-up Assets

Cash Required $23,100

Start-up Inventory $6,000

Other Current Assets $5,250

Long-term Assets $20,300

Total Assets $54,650

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Total Requirements $80,500

Start-up FundingStart-up Expenses to Fund $25,850Start-up Assets to Fund $54,650Total Funding Required $80,500

Assets Non-cash Assets from Start-up $31,550Cash Requirements from Start-up $23,100Additional Cash Raised $0Cash Balance on Starting Date $23,100Total Assets $54,650

Liabilities and Capital

LiabilitiesCurrent Borrowing $0Long-term Liabilities $25,000Accounts Payable (Outstanding Bills) $9,500Other Current Liabilities (interest-free) $0Total Liabilities $34,500

Capital

Planned InvestmentInvestor 1 $15,000Owners $30,000Additional Investment Requirement $1,000Total Planned Investment $46,000

Loss at Start-up (Start-up Expenses) ($25,850)Total Capital $20,150

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Total Capital and Liabilities $54,650

Total Funding $80,500

Projected Balance Sheet

Pro forma Balance SheetASSETS FY 2005 FY 2006 FY 2007Current AssetsCash $46,670 $68,884 $98,698Inventory $1,720 $1,806 $1,896Other Current Assets $5,250 $5,250 $5,250Total Current Assets $53,640 $75,940 $105,844

Long-term AssetsLong-term Assets $20,300 $20,300 $20,300Accumulated Depreciation $2,040 $3,876 $5,528Total Long-term Assets $18,260 $16,424 $14,772Total Assets $71,900 $92,364 $120,616

LIABILITIES AND CAPITAL FY 2005 FY 2006 FY 2007Current LiabilitiesAccounts Payable $9,267 $9,454 $9,967Current Borrowing $0 $0 $0Other Current Liabilities $0 $0 $0Subtotal Current Liabilities $9,267 $9,454 $9,967

Long-term Liabilities $19,000 $9,000 $0Total Liabilities $28,267 $18,454 $9,967

Paid-in Capital $46,000 $46,000 $46,000Retained Earnings ($25,850) ($2,367) $27,911Earnings $23,483 $30,278 $36,739

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Total Capital $43,633 $73,911 $110,649Total Liabilities and Capital

$71,900 $92,364 $120,616

Net Worth $43,633 $73,911 $110,649

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Documents

Business Plan(Fetch Pizza Corner).doc