Dedication

Dedicated to our parents and to our beloved teacher Mr. HAFIZ GHUFRAN without whom

We would be unable to write even a single word.

He made us to think and think positively while observing the things in daily routine….

May Allah bless him and may he live long…

ACKNOWLEDGEMENT

All the efforts are put a name and given recognition under the head and patents of our beloved institute. This project has widespread scope to give us experience of managing our self and others in organization. We stipulate our thanks to those who render their help in data collection synchronized with guidance to put it to an end of better words.

We are deeply indebted to our supervisor, Sir Muhammad Naveed whose help, stimulating suggestions and encouragement helped us in all the time of data collection and writing of this project.

Table of Contents

Executive summary

The business description

Market analysis

Vision statement

Slogan

Mission statement

Business objectives

Business operations

Marketing

Competitive analysis

Legal structure

Management expertise

Legal structure

Financial information

Summary

EXECUTIVE SUMMARY  

    The purpose of this business plan is to fulfill the desert need of customers in the region of Islamabad and Rawalpindi. There is huge potential of ice cream business in this region but they need a good quality and high variety of ice-cream.  The business will be owned by F.A.J group E and will be located in leased space at blue area ISLAMABAD.  The business will serve healthy and premium ice cream, yogurt, sandwiches, and nonalcoholic beverages to the generally upscale target of Rawalpindi and Islamabad. The target market will be middle and upper class. because we are providing high quality ice cream at reasonable price. According to the current situation of the market and customer requirements Fast ‘n Fresh Premium Ice Cream Parlor will be successful.   It is anticipated that Fast ‘n Fresh Premium Ice Cream Parlor will become firmly established in Rawalpindi /Islamabad within one year and will become known throughout Punjab in five years with the potential of multiple locations.  The Fast ‘n Fresh Premium Ice Cream Parlor’s distinctive logo, its reputation for fast service and only the freshest foods, plus its slogan, “Fast ‘n Fresh – good for you!” will provide a distinctive competitive edge. The owners of F.A.J Group have experienced highly successful food service business in Pakistan.

THE BUSINESS DESCRIPTION

      Fast ‘n Fresh Premium Ice Cream Parlor will be a start-up ice cream parlor located in leased space at Blue Area Jinnah Avenue Khyber plaza Islamabad. The estimated opening date is June 19, 2010. 

     F.A J. Group, who has experienced successful food service business in Pakistan last seven years, will own the business as a sole proprietorship.. Fast ‘n Fresh Premium Ice Cream Parlor will be an upscale business selling healthy and premium ice cream, yogurt, sandwiches, and hot and cold nonalcoholic beverages. F.A.J Group will prepare its own Ice Cream and keep very high quality standards.

      Fast ‘n Fresh Premium Ice Cream Parlor will be successful because it is based on solid market research demonstrating that there is a demand for an ice cream shop selling premium products, it will be located in the most desirable retail space in Blue Area Islamabad, and the owner has a seven-years track record of proven success.

MARKET ANALYSIS

      Market analysis is favorable toward the ice cream business in Pakistan. According to research survey, the overall ice cream market in Pakistan is expected to grow by a total of 25% between 2009 and 2015, bringing category sales to Rs 70 million. Ice cream is a popular indulgence, and people will spend money for such a treat.  The International Premium Ice Cream Institute has identified an indulgence-in-moderation buying style with a conservative approach to most purchases, but splurging on certain items. This style is predominant both among affluent Pakistani living in households with incomes of  Rs 20,000 and less-affluent households with incomes of  under Rs 20,000.

The survey also shows that 80% of the Ice cream in Pakistan is consumed in summer while only 20% in other seasons. The consumption among children of age 5 to 15 is 38% and consumption among adults is 62%. The survey also shows that the sales of frozen deserts will increase by 30% and when asked where the greatest growth will be for the frozen dessert market, more than half (70%) of the 10 manufacturers in the survey mention “healthy” products.  While “healthy” ice cream remains strong in the market, “premium” ice cream consumption has increased, especially in Rawalpindi/ Islamabad.

      In summary, the general market analysis shows that both “healthy” and “premium” ice cream/yogurt sales are on the increase and will continue to increase. Further, the target market for these products is middle and upper income families. The market analysis also reveals that it is highly desirable to serve sandwiches and other foods to balance the seasonal decline in ice cream and yogurt.

      Since the market analysis identified middle and upper income groups as desirable target markets, what is the growth pattern in Islamabad regarding these groups? Table 1 presents informative statistics.

      TABLE 1

Number And Percentage Increases in Islamabad

Families By Income Groups, 1990 to 2010Est) 

Years Low Income

Families

Middle Income

Families

High Income

Families

1990 8,000 4,000 2,000

1995 8,500 4,800 2,400

2000 9.400 6,300 3,000

2005 10,000 8,200 3,900

2010(Est) 11,000 98,00 4,900

      Note: Family is estimated to be 4 persons.

      Source: CDA Planning Department 

      Table 1 reports two important trends: the total population of Islamabad and the number of families in the middle and high income categories are both increasing at a dramatic rate. As the Middle Income Families are increasing at a higher rate in Islamabad which is very beneficiary for our business because they can easily afford our products.

VISION STATEMENT

      In one year, Fast ‘n Fresh Premium Ice Cream Parlor will be established in Islamabad/ Rawalpindi, and expansion plans will be developed for company owned and franchise locations in other cities of Punjab. 

Slogan

      The catchy slogan of our business is: “Fast ‘n Fresh - - good for you!”  The slogan “good for you” will emphasize the premium quality of its products as well as representing that everything about the business will be good for its customers. This will include fast service, inviting décor, healthy, premium quality foods, and a selection broad enough to meet the needs of individual customers. 

MISSION STATEMENT

      Fast ‘n Fresh Premium Ice Cream Parlor’s mission is presented below:

      We, the employees and management of Fast ‘n Fresh Premium Ice Cream Parlor, make this pledge to you, our valued customers:

      We pledge that we will serve fresh foods and tasty beverages in a prompt and friendly manner.

      We pledge that we will serve only quality foods that meet the nutritional standards of the International Premium Ice Cream Institute.

      We pledge that we will be good community citizens, respectful of the environment, and friendly neighbors to the surrounding businesses.

      We pledge that we will always present a positive public image and make our establishment one that you can visit with safety and peace of mind.

      We pledge that we will be responsive to your suggestions and concerns.

      If we do not keep our pledge of satisfaction, you do not pay!  

BUSINESS OBJECTIVES

      Fast ‘n Fresh Premium Ice Cream Parlor will have these business objectives during its first year of operation:

      1. Cash break-even by the end of its first year of operations.

2. Increase in profit by 10% each year.

3. Open new branches in major cities like Lahore, Faisalabad, Multan etc.

BUSINESS OPERATIONS

      The operation of Fast ‘n Fresh Premium Ice Cream Parlor will be described using the main functions of the business: marketing, competitive analysis, legal structure, management expertise, support personnel, and financial information.

MARKETING

Marketing is very important tool in this competitive world. without marketing companies can not think about the success of their new product or service.

TARGET MARKET

Target market identification is one of the important components of marketing.

UPPER CLASS

We are targeting upper upper ,upper middle and upper lower class. Because we are not only believing that our products will be according to their taste and desire ,we are sure abot it.

MIDDLE CLASS

Similarly we are also offering our products to all the sub classes of middle class. Because or products are not only of best quality but our prices are also in range of this class.

More specifically our target market will be kids, teenagers and youngsters.

Product

      Fast ‘n Fresh Premium Ice Cream Parlor will sell:

      Fresh Premium ice cream and Ice cream shakes

      Two lines of yogurt: low fat and regular.

      Traditional hot and cold sandwiches.

      Coffee, tea and beverages.

    

Ice Cream and Related Products

      Fast ‘n Fresh Premium Ice Cream Parlor will sell the following ice cream, yogurt, beverages: vanilla, chocolate Totti Fruity, Pistachio, Pineapple, Mango, Kulfa, Brazilian Coffee Crunch, Strawberry Surprise, and other ice cream and yogurt flavors; ice cream and yogurt sandwiches; beverages; and a variety of Ice cream and Milk shakes.

      The five most popular ice cream flavors in Pakistan are as the follows: 

1. Vanilla, 2. Pista

3. Mango

4. Kulfa

5. Strawberry

F.A. J Group will produce all ice creams and yogurts by itself and the sandwiches will be purchased from Imperial Bakers.

Beverages And Other Food Products

      Five private branded beverages will be purchased from Muree Beverages, Pepsi, Cocacola, Shezan, Nestle etc. Coffee, tea and related beverages will be purchased from a local wholesale food distributor.  Hot and cold sandwiches, and other foods will be purchased from Imperial Bakers.

      All other foods and beverages will be purchased from reputable suppliers with careful attention to quality.

Price

      The majority of the business’ sales will come from ice cream and yogurt. Representative prices are as follows:  Rs 30.00 for a single scoop of ice cream, Rs 50.00 for a double scoop of ice cream (both single and double scoops include a cone or cup), Rs 60.00 for a double scoop in a chocolate waffle cone and Rs 70.00 for three scoop, Rs 80.00 for a triple scoop in a chocolate waffle cone. Volume costs include Rs 16 per scoop of ice cream, Rs 2.00 per 5 ½ oz. plastic cup, Rs 1 per plastic spoon, Rs 5.00 per chocolate waffle cone.

The general price range for sandwiches in the market is Rs 60.00 to Rs 400,Rs 25 to Rs 50 for soft drinks, and Rs 75 for coffee.  Fast ‘n Fresh Premium Ice Cream Shop will charge RS 70.00 for sandwiches, Rs 25.00 for soft drinks, and Rs 70 for coffee.  Volume costs for sandwiches will be Rs 60.00, soft drinks Rs 22.00, and coffee Rs 62.00.

Place

      The area of Islamabad is very suitable for any kind of business. People of this area have buying power. In Islamabad, Blue Area is famous shopping spot and there are so many restaurants over there. People come in Blue Area for shopping and food frequently. There are so many offices of different national and multinational companies and the employees of these companies want some good and fresh food on daily basis.

      Customers would be attracted to Blue Area because of the anchor and supporting tenants.  There are several entrances/exits creating easy accessibility.  All of these factors weigh in favor of Blue Area as a potential location.

      The ice cream parlor will be located on an approximately 1,500 sq. ft. building that can be expanded. A commercial real estate broker representing Blue Area said that the decoration and other furnishing etc, according to our specification will be done at a cost of Rs 250 per sq ft. Two five-year options would be included in the lease agreement. Three months free rent would be offered as an inducement. Consolidated area maintenance fees would be RS 4000/month initially.

Promotion

“Our aim is to spark the taste and feeling of summer in everyone’s day. Life is there to be enjoyed and we are the fun part of vitality. We constantly provide new products and experiences that excite the senses and inspire people of all ages to 'taste the fun side of life”

--------Promotion Statement---------

For any company to capture the market of its own wish and target, promotion plays the most important role in fulfilling the quest for market share. Although the process of promotion is very complex and can be looked in detail:

Companies inform the people when they don’t know about the product, persuasion takes place when people already know about the product and company forces them to buy the product and when companies is selling enough quantities of a product it reminds consumers about the product to keep the sales at the same level in future.

Promotion is important for firms in many ways. It helps to establish image of product, which the manufacture wants to portray, and also the personality of product. It informs the people, creates awareness and helps in positioning and repositioning of the product. With promotional tools company can tell about the availability of product, company can justify prices or can communicate the features of the product.

.

Promotional Tools

Promotional campaign

As we are new in the market so for our promotion we will launch a campaign in which we will target

main wedding halls of twin cities. During this campaign we will provide ice cream on discount.

We will also target all the famous visiting places of Islamabad in which we will offer our ice creams on

discount prices. The purpose of these activities is to inform them that we are in the market too and we

can not only compete rather we will lead this market.

1. ADVERTISEMENT

We are creating awareness for our products and for this purpose we using huge signboards on the major square of the cities and more importantly both the print and electronic media for advertisement .

Awareness

We are using print and electronic media plus the signboards initially just to create awareness and knowledge about our products.

Interest:

As the public gets awareness about our products the next step is to create interest among the target buyers about the product which is again done through advertisement.

Desire:

We creates curiosity among the customers and transform that curiosity into the desire of the product.

Action

Finally to make the customer purchase the product this is the final thing to be done in model. We follows sequential pattern through which we strengthens our products.

      Fast ‘n Fresh Premium Ice Cream Shop will be promoted with a variety of marketing methods:

      A grand opening will be held with free samples of food products and drawings for distinctive hats, T-shirts, and other clothing bearing the store’s logo and the phrase, “I’m Fast ‘n Fresh!”,   worn by store employees.

       Coupons will be published in bi-weekly ads in different weekly magazines .  Coupons will also be distributed at the Loke Virsa Programs. 

 

      and other community events.  One to three-year sales forecasts are presented in Table 3 together with anticipated promotional costs.

TABLE 3

One to Three-year Sales Forecasts And Related Promotional Costs 

YearsSales Revenue Promotion Cost

One 40,00000 500000

Two 48,00000 2500000

Three 55,00000 3,00000

COMPETITIVE ANALYSIS

Our major competitors in Rawalpindi Islamabad are

Chaman Ice cream:

Chaman ice cream is a well reputed ice cream parlor and are specialist in ice cream. They are very reputed in Lahore and are now spending themselves to many areas of Pakistan.

Rahat Bakers:

Rahat Bakers is located in Blue Area. Rahat Bakers is specialzed in bakery products. They are also providing Ice cream in many different flavors. Rahat Bakers has been in business from many years and enjoy a reputation as a well-run quality business.

Sogo Grill

Savour foods:

Savour is very famous throughout Rawalpindi/Islamabad region. Their specialty is rice and fast food but they are also providing a good quality of ice cream as well.

LEGAL STRUCTURE

      Fast ‘n Fresh Premium Ice Cream Parlor will be operated as a partnership owned by F.A.J group.

      MANAGEMENT EXPERTISE

                One of the owner of F.A.J group has a successful business of ice cream in pakistan. The owners holds degrees in business education from a reputed organization. All the partners are very energetic and are knowledgeable about business strategies .

EXHIBIT 2

Competitive Analysis

Items Fast’ n Fresh Chaman Rahat Sogo GrillSavour

Summer Hours 9am-1am 10am-1am 10am-1am 10am-12am 10am-2am

Winter Hours 10am-12am 10am-11pm 10am-12am 10am-11pm 11am-1am

Days Open 7 days a week 7 days a week 7 days a week 7 days a week 7 days a week

Price Level Moderate ModerateHigh

High Moderate

Specialty Ice cream

And shakes

Ice cream Bakery

Ice creamIce cream

Rice

 

Sandwiches Yes No Yes Yes No

ItemsReputation Unknown Fair outstanding Excellent Outstanding

National

Chain

No Yes No Yes No

Methods of

Promotion

Magazines

Newspaper 

Conerts

Radio

Magazines

Flyers  

Radio

Magazines

Flyers 

Magazines

Newspaper 

Magazines

HS Events

 

      F.A.J. group have used several reputable professionals who provide business services. These include the Habib Insurance Agency and Sadat law firm. The owners have good terms with few local banks.

SUPPORT PERSONNEL

      The business will operate using local young personnel with good looks, education, politeness and good communicational skills as its employees. Focus will be to hire the people of Islamabad and Rawalpindi. This will reflect a youthful, invigorating image consistent with its “Fast ‘n Fresh - - good for you!” slogan. The manager will be an experienced person from one of the owner’s. A special employee benefit will be Fast ‘n Fresh employee of the month who will be awarded a cash prize. The majority of the employees will work part-time with a full-time manager. 

FINANCIAL INFORMATION

Sources of Cash

1. Personal Funds. The owner will invest Rs 2000000 into the business. 2. Loan Proceeds. The owner will borrow Rs 1000000 from National Bank as a five-year revolving

line of credit at 10%. Interest will be charged only on the amount actually borrowed with principal payments of 20% of the amount borrowed due each year.

3. Cash Receipts From Business. Rs 4000000 in cash receipts net of sales taxes is estimated. This projection involves selling 15,000 single scoop, 6,000 double scoop cones, 10000 double scoop cups, 3000 triple scoop cones, 5000 triple scoop cups, 8,000 sandwiches, about 6000 cups of coffee, and the remaining sales were that of other items like softdrink, milk shakes, beverages etc.. This is a conservative estimate of cash receipts.

 

EXHIBIT 4

One-Year Cash Flow Projection 

Sources of Cash 

      1. Personal Funds                               2000000

      2. Loan Proceeds                              1000000

      3. Cash Receipts from Business (Net)                                             4000000 

            Total Sources                               7000000  

Uses of Cash 

      4. Equipment/Supplies                  1600000 

      5. Vehicle Purchase/Lease                         25000

      6. Real Estate                                    0

      7. Fixtures                              200000

      8. Security Deposits (Rent and Utility)      200000

      9. Signs     29,200

      10. Leasehold Improvements    100000

      11. Cost of Goods Sold   480000

      12. Telephone and Utilities     18000

      13. Rent   600000

      14. Business License Fee     75000

      15. Insurance Premiums     200000

      16. Office Supplies     35000

      17. Legal and Accounting     50000

      18. Advertising     500000

      19. Real Estate Taxes     50000

      20. Miscellaneous Expenses    250000

      21. Payroll Taxes and Benefits     15000

      22. Payroll Wages (Excluding Withholdings)   1500000

      23. Loan Payments (Principal and Interest)   300000

      24. Owner’s Draw   1000000 

            Total Uses              7000000 

 

Uses of Cash 

4. Equipment. Basic equipment cost is estimated to be Rs 1600000. This expense includes: dipping cabinets, refrigerators, tempering freezer, display freezers, holding freezer, three-compartment sink, ice machine, stove, serving equipment, dishwashing equipment, and equipment installation.

5. Vehicle Purchase/Lease. A utility van will be leased at Rs 25000 for three years from bank Al Falah Islamabad.

6. Real Estate. Real estate expense is included in lease expense.

7. Fixtures. Fixture costs will total about Rs 200000 based on an estimate from Hussain Restaurant Fixtures Supply. These cost will include purchasing tables, chairs, and removable service items.

8. Security Deposits. Security and other deposits will include Rs 200000 for lease-related deposits, utility deposits, and miscellaneous deposits.

9. Signs. Fast ‘n Fresh Premium Ice Cream will have signage on all four side of the building. Signage and installation will cost Rs 29,200.

10. Leasehold Improvements. Net leasehold improvements after the $10/sq.ft. allowance by the landlord will total $7,500. This estimate was provided by Smith Construction of Valley City and includes floor and wall coverings, window treatments, painting and decorating, window decorations, and miscellaneous minor improvements.

11. Cost of Goods Sold. Cost of goods sold is based on the sales projection of Rs 480000 and is estimated to be an average of 14% of sales totaling Rs 4000000.

12. Telephone and Utilities. Valley City Gas, Electric, and Telephone Company estimate telephone and other utilities at 1500/month for an annual total of Rs 18000.

13. Lease/Rent. Lease payments are Rs 50000/month for an annual total of Rs 600000. This information was provided by the commercial real estate agent.

14. Business License Fee. The business license fee based on business revenue (1.88% of gross revenue) will be Rs 75000 (License and Permits Office).

15. Insurance Premiums. K.K Insurance Agency, Islamabad estimated annual premiums at Rs 6, 00000. These premiums will cover business liability, property damage, workman’s compensation, and all other types of insurance.

16. Office Expense. This item includes all office-related expenses including copying and paper supplies. The owner will perform office duties. Total is estimated at Rs 35000 annually based on the owner’s previous experience.

17. Legal And Accounting. Masoom Akhtar and co and Sadat law firm will provide basic bookkeeping, accounting, and legal services. The total estimated annual cost is Rs 50000.

18. Advertising And Promotion. Rs 500000 will be allocated to the advertising and promotion campaigns discussed in the Marketing section above.

19. Real Estate and Other Taxes. Real Estate and Personal Property taxes will total Rs 50000/year. The Management Office, CDA, provided this information.

20. Miscellaneous Expenses. Rs 250000 has been estimated for miscellaneous expenses based on information provided by our partner who has a previous experience.

21. Payroll Taxes and Benefits. These are estimated to be 15000.

22. Payroll. Wages total Rs 1500000. workers’ compensation. Wages include all the salaries of workforce and manager who will be one of our partner and will be given extra compensation in term of salary.

23. Loan Payments (Principal and Interest). All of the Rs 1000000 loan allocation will be used during the first year of operations. Assuming this amount was available at the beginning of the

business’ fiscal year, interest at 10% totals Rs 100000. In addition, according to the loan agreements, principal payment of Rs 200000 was also required.

24. Owner’s Draw.  The owners drawn Rs 100000 at the end of one year.

SUMMARY

      Fast ‘n Fresh Premium Ice Cream Parlor will be successful. This business plan has documented that the establishment of Fast ‘n Fresh Premium Ice Cream Parlor is feasible. All of the critical factors such as industry trends, marketing analysis, competitive analysis, management expertise, and financial analysis support this conclusion.

      We invite you to attend our grand opening. We promise that we will make the experience, “Fast ‘n Fresh - - good for you!”