1. 1. 1 1 COFFEE TEA CORNER Name of Company: COFFEE TEA CORNER
2. 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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.