Food

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Business Plan on
Replacing fast foods by 'Bangladehsi Pithas'
Our business name – AHAR
Course Name – Marketing Management
Course No. - BA-2211
Prepared forSharif Mohammad Khan
Assistant Professor
Prepared byName
ID
Abdur Rakib Akon
070305
Reza Al Saad
070312
Md. Masrul Mollah
070314
Md. Nazmul Huda
070323
2nd Year, 2nd Term
BBA Program
Date of Submission: January 26, 2008
Business Administration Discipline
Khulna University
Businesses Plan of
'Ahar'
Owners:
Abdur Rakib Akon
Md. Nazmul Huda
Md. Masrul Mollah
Reza Al Saad
Date of publication: January 26, 2008
Index
Topic
Page
1. Executive Summary
1
2. Business Summary
2
2.1 Business Information
2
2.2 Our Operational Activities
2
2.3 The Market we will serve
3
2.4 The Industry
3
2.5 Benefits will be added by us
3
3. Market Situation Analysis
4
3.1 Our Strengths
4
3.2 Our weaknesses
4
3.3 Our Opportunities
5
3.4 Our Threats
5
4. Competitiveness Analysis
6
4.1 Competitive rivalry within an industry
6
4.2 Threat of new entrants
6
4.3 Threat of substitute product
7
4.4 Threats of buyers growing bargaining power
7
4.5 Threats of suppliers growing bargaining power
7
5. Mission Statements
8
6. Business Action Plans
9
6.1 Product Lines
9
6.2 Supply Chain
9
6.3 Human Resource
10
6.4 Marketing & Promotion
10
6.5 Research & Development
11
7. Management
7.1 Management Body
12
12
7.2 Management Structure
8. Financial Forecasting
13
14
8.1 Expenditures
14
8.2 Investments & Revenues
15
9. Exit Strategy
16
10. Appendix
17
References
18
1.
Executive Summary
Fast foods are very much popular all over the world because of less time consuming and more
taste. It is is also favorite among the people of our country. But because of these junk foods we
are forgetting our own foods pithas, singaras, samichas etc. types of our Bangladeshi fast foods.
So with this initiative we came forward to make a business plan to replace the ongoing fast foods
by our Bangladeshi pithas.
We have named our business 'Ahar'. We named this business supporting our Bangladeshi
perspective and we think this will be a perfect name for this type of product.
Our idea is to serve various type of pithas that will make people move to our Bangladeshi foods
especially to misti pitha and jhal pithas. We think there is a huge field to make a market of this
type of foods in our country. We have determined some factors that will help us generate some
revnues from the beginning of this business launch. And we also have defined our competitors
strategies so that we can compete with them.
We have analyzed our SWOT and defined in which way we will do our business. We have
created a great opportunity for investors who seeks new innovative business ideas and plans.
We have determined our break even point within one year. We have calculated in which year we
will have our revenue in what amount. And we projected our revenue will be double up within
five years if we can work in our way.
Our objective is to provide a better quality food habit and to move people from junk tastes to a
healthy taste. We want to see that people doesn't fear about heart diseases and diabetics type
sufferings.
We are planning to reach our break even point within one year from our launch and to earn a
double revenue within three years.
1
2.
Business Summary
2.1 Business Information
Business Name
: Ahar
Business Location/s
: Dhaka, Khulna, Chittagong
Contact
: +8801714117014, +880191989559
Owner/s
: Abdur Rakib Akon, Md. Nazmul Huda, Md. Masrul Mollah,
Reza Al Saad
Contact Person
Abdur Rakib Akon
Chief Executive Officer
Holding No. - 123
Road No. - 17
Nirala Residential Area
Khulna – 9100
Bangladesh
Phone: +880191989559
E-mail: [email protected]
Business Structure
: Partnership Business
Business Concept
: Bangladeshi Pitha Shop
Mission Statement
: To replace fast foods by pithas
Md. Nazmul Huda
Senior Executive Officer
Holding No. - 128
West Tootpara Main Road
Khulna – 9100
Bangladesh
Phone: +8801714117014
E-mail: [email protected]
2.2 Our Operational Activities
We will firstly start our operations from 3 regions of Bangladesh – Dhaka, Khulna and
Chittagong. If we can earn a satisfactory amount of money we wish we will also launch our
operations in Sylhet and Comilla.
We will mainly serve three main types of products. Our main concerns will be Sweet Pithas and
Chilly Pithas. But we will also serve some Spicy pithas and Deshi Fluid items. We also included
a price menu in our detailed section.
We already said that we want to make a share of fast food market. We think people will move
their tastes from junk fast foods to healthy and less cholesterol containing deshi pithas. Because
mosr of the pithas are made from rice or flours and other natural resources those come directly
from nature. So our promotional programs will only say one message – 'eat better, live longer'.
Our financial support will be maintained by us. We have a wish to make this business in
corporate environment if it runs well. As far we have collected more than 45 million among us to
launch this business. And if we need any financial support we will consider to take loans from
bank/s but now we think we are in a flexible position to run this business from financial point of
view.
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2.3 The market we will serve
We have the uniqueness from the side we are launching the products those were inbound to home
but we are releasing those items as professional business products. There are some businesses
with this type product but they doesn't have such type of objectives or goals like a professional
business planning. So, we are confident that we will capture one type of monopolistic market
from pitha business.
But there is a area where people searches fast foods. On that area we will have to compete with
other businesses. We could define some of our competitor sector which we will have to compete
with. Conventional Italian and American fast food shops will be our main competitors. And also
some other type of restaurants those serves middle and lower class people will be in our concern.
And students, employees, daters, etc. type of people will be attracted to our product lines we
believe.
But among the fast food industry there is also a gap to pull through. We must try to attract the
customers those go for fast foods regularly, but there is a group those don't go for fast food
regularly or never go there for health safety from junks. But we will serve low cholesterol foods.
So, this is one of our advantages.
And there is a group of people of lower middle class and lower class people as a potential
customer segment for us. Because normally conventional fast foods are very costly that cannot
be affordable by those people. But our items will be so lower cost bearing so that everybody can
get chance to have a taste of our food items.
2.4 The industry
Fast food and restaurant industry is a very competitive area in the perspective of Bangladesh. But
we are adding a new product line into this industry. So, we think at the first step we will not have
to face so much complications to catch maturity stage of our products.
Our main strength is that there is not so bigger competitor from the view of pitha business. And
we think we are financially strong to run such type of business in this market. Now a days many
diversified services in fast food industry is being added regularly. And we are also launching
with diversified product lines. So we think we can easily go to a top position in the fast food
market.
2.5 Benefits will be added by us
We think we are not here to do business for us. We have a responsibility to our society. Inspiring
by this we have thought about this new and productive business. Our business will certainly
create some opportunities for employment. Taxes will be a adding to our govt. revenue. As we
have a long term sustainability we think we will be able to make more people added to our
business that will work as a social well-being.
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3.
Market Situation Analysis
Every business has its own features on which the chances to be successful depends. For
measuring the potentiality and the risk of a new business we need to make the proper use SWOT
analysis test. By this test we can evaluate the strength, weakness, opportunity and threat. We are
starting with the strength of our plan.
3.1 Our Strengths:
We are going to deal with the seasonal Bangladeshi food. Which is in our language known as
'Pitha'. Traditionally we have many seasonal pitha. We have pitha in winter season, we have pitha
in summer and also in spring. The main advantages of our plan can be categorized in two ways.
One is cost and another is health consciousness.
In seasonal pithas normally we use ingredients which are achievable from our environment. Such
as most of the pithas are made of paddy, coconut, flour, sugar, cow milk which are not only
healthy but also very cheap. In comparison to the ingredients used in case of the fast food.
Because in fast food most of the cases we need to use chicken, mutton, beef, butter, cheese etc.
which are very costly and causes harm to our health. Because those ingredients are liable for the
increasing rate of diabetics, high blood pressure and heart diseases. As we know customers are
always price sensitive, so we have a huge chance to gather the big portion of the market within a
short period of time. Because we are offering food of diversified taste with a cheap price. Those
food are also very much healthy.
Our conventional seasonal foods are always very much popular among the people. But now a
days usually they do not take those foods. Because those are not easily found and cannot be
made easily. And also specialized skill is needed for making these foods. That shows that people
are always fond of having those seasonal pithas but they have not the proper source. And they
haven't enough time and skill to make it. As a result we can make those pithas for them and
present them in a favorable place that will be certainly popular among the people.
Why people prefer fast food? Because it is ready made, it is dry and for eating those foods huge
arrangements is not needed. No bowl or spoon is not mandatory. All those facilities we will
provide in Bangladeshi seasonal food Ahar. We will also add some innovative features in our
conventional seasonal pithas those will certainly serve the customers with different tastes those
they were always looking for.
3.2 Our Weaknesses:
In this business we cannot identify lots of weakness. But we have found a few such as – those
seasonal foods are available for a specific time in a year. Those pithas which are available in
winter cannot be made in summer. But those ingredients will not be available in that time. We
cannot provide our best effort through the whole year.
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Another weakness is that s our ingredients come from natural resources those are not available in
urban areas. We have to get those things from rural or sub-rural areas. For this we need to have
strong chain of suppliers. But for maintaining those suppliers and also because of the distance we
have to spend a lot that will certainly minimize the profit.
Diversity of taste can be weakness in a sense. Because in our seasonal food there is lack of chilly
foods. So in this case we need to be a little bit innovative.
3.3 Our Opportunities:
We have huge opportunities in this business. Because our people are very fond of those
conventional food items, but those are not available ready made. Sometimes they get those
pithas, but the sources are not very healthy. They have not any brand name in this field, which
name can assure them about the standard and the nutrition of the food. So 'Ahar' is going to be
the brand name of our seasonal pitha.
Nowadays people are much more health conscious, so many of them are trying to leave those
fast food with high cholesterol, but they have no substitute product to take. Ahar is going to be
that replacement. And pithas aren't junk. So people will get more attraction to these pithas.
3.4 Our Threats:
We are going to enter into a highly competitive segment of food market. We will have to face a
lot of threats. Our major competitors will be the fast food shops. They already have diversified
product line and also they are capturing the major portion of the market. So huge time, money,
people, and efforts are needed to gain their market share.
Our other threat can come from from bakeries, pastry shops and a bit from restaurants. Bakeries
and pastry shops are producing and serving some food items that made the need of the customer
whom we have targeted. Restaurants are dealing with the customers with limited earning. Middle
class and lower class people usually take food from restaurants. So a big portion of our target
market is engaged there. So all those things are proved to be the threat for that new business.
5
4.
Competitiveness Analysis
We have analyzed the current market situation by the five factor model of Michael Porter. In this
model there are five forces. By those forces we have identified the competitiveness of the target
market. It is the renowned process all over the world to evaluate the appropriateness to enter into
a business.
4.1 Competitive rivalry within an industry:
Within this market we have some strong existing competitors. Such as- Pizza Hut, KFC,
Domino's pizza, Sizzle etc. But as we are going to start with the conventional local food we don't
have such type of competitor. It is a stable business because it is related with appetite. So it is
appropriate business to enter. Exit barrier is also low, so certainly it is an attractive segment of
market to choose.
Figure: Michael Porter's Five Factor Model to measure competitiveness
4.2 Threat of new entrants:
Threats of new entrants for a business is always true. So we have always risk of those new
entrants. For this business entry barrier is not very high, as a result in that sense it is an
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unattractive segment. In food business new entrants are always available, but if we can build
our's as a brand name and gain the major portion of the market share we will certainly be able to
avoid the threat of the new entrants.
4.3 Threat of substitute product:
We are going to compete with fast food. We are a food item with a specific taste, in this field we
don't have real substitute products. Sweet industry such as our 'Dairy industry' can be substitute
product. But as those are not our real substitute product, it is certainly an attractive market.
4.4 Threats of buyers growing bargaining power:
Our buyers would not bargain with the price because we are offering very low price. As we are
starting from a low price it would certainly fulfill the customer demand, because customers are
always price sensitive. It is also avoidable because the switching cost of our product would be
much more higher. Our product would be cheaper than the fast food items.
4.5 Threats of suppliers growing bargaining power:
We are going to launch a new trend of the food business. So the suppliers of that field are not so
much concentrated and organized. We emphasize on collecting raw materials from diversified
areas. We will collect specific ingredients from specific places. As a result our suppliers are
widened through the whole country. So low bargaining power of the suppliers make the target
market so much attractive.
7
5.
Mission Statement
Our business plan is created through some motives. Here we tried to explain our missions and
objectives.
Product Mission – To serve better quality and taste of home through a variety of pithas.
Community Mission – Providing a community service through serving dehsi cultures and tastes.
Economic Mission - Operate and grow at a profitable rate through sound economic decisions.
Our objective is to capture the market share and replace a great portion of conventional fast food
items by serving Bangladeshi pithas.
Our goal is a little bit economical. We are forwarding to reach our break even point within one
year and if we can manage to double up our revenue within 3 years we have a plan to extend our
business.
Our visionary view of this business is that we don't want to see any body's panic because of bad
food habit. We want to make people having a good habit in eating.
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6.
Business Action Plan
Here we have come to our business actions plans by which we will fulfill our objectives. We
have prepared some segments those will make our works maintained and simplified. We have
interpreted some department where different group of people will work. But at first we should be
clear about our services.
Our services will include:
1.
2.
3.
4.
Four types of product lines including pithas
Chain van shop for lower class people, school, college, universities etc.
Restaurant services
Home delivery services
Then we can go through our main plan.
6.1 Product Lines:
We have defined four product lines for our business.
1. Sweet Pithas: This product line will include most of our items. The pithas are sweet will
be included under this line. i. e. - Vapa Pitha, Pati-Shapta Pitha, Ras Chitai Pitha etc.
2. Chilly Pithas: We will also some chilly pithas and dry pithas like Chitai Pitha, Jhal Pooli
Pitha etc. etc. will be included under this product line.
3. Spicy Pithas: Fried pithas like Vaja Pooli Pitha, Pan Pitha etc type of pithas will be
included under this category instead of 'sweet pithas'.
4. Deshi Fluids: We will arrange some drink items besides our pithas like coconut water,
juices made by deshi reciepies etc.
We will have our own menu items. One sample menu we have included in the appendix menu.
6.2 Supply Chain:
We should build a strong chain of suppliers who can supply us the ingredients we need to make
those seasonal pithas. As our ingredients are very much natural we have to depend a lot on the
rural areas. Because those ingredients are not available in the urban areas. So for the availability
of the ingredients we must have a strong and skilled line of suppliers. Those products are highly
perishable. So transportation facilities and timely distribution of those item should be ensured.
That's why skilled suppliers are needed.
We have arranged some people fixed who have contracts with us to supply our materials. Here is
given a list1. Mujib Biswas from Noapara will supply us flour from his flour mill.
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2. Rahima Begum from Naoga will supply us milk from her own firm – 'Adarsha Dairy
Firm'
3. We will get paddy supply from 'Sukendra Samabay Firm' from Rajshahi.
4. Mizan Gazi from Bagerhat will supply us date juice in winter season.
We haven't determined which others will serve other different materials but we think we will
manage them within a very short time. We have two trucks of our friends for transportation in
hire.
6.3 Human Resource:
As we can't imagine a business without materials or inventories, we can't imagine it without
human resource. So we also made our human resource department to find out some right persons
for our business.
1. Cook: We will find out some cooks through maybe some local competition or cook hunt.
But we must employ creative and innovative cooks.
2. Waiter: We have to employ waiters and waitresses for our restaurant service.
3. Street seller: We will need some street sellers who will sell our food items from our
chain van shops.
4. Delivery boy: For home delivery services we will need some delivery boys.
6.4 Marketing & Promotion:
Marketing and promotion department is a vital part of any business organization. We will have
some followings programs to promote our service.
1. Media Coverage: We will cover medias like newspapers, TV medias, and radio medias
to advertise ourselves.
2. Poster: Poster works will be limited but it will also work as our advertisement in some
special events. Like in some special events we will make posters.
3. Health Conscious Advertisement: We will promote our products as those are healthier
than any other fast foods.
4. SMS Service: We will advertise our business through promotional SMSs by
collaborating with the mobile operators.
5. Festival Discount: We will give special discounts in some special festivals.
6. Discount Leaflet: We will provide discount leaflets at the beginning stage of our
business.
7. Sponsorship Discount: We will provide discounts on the tickets of various events.
8. Food Sponsorship: We will sponsor various national and at a later stage also
international events which work as advertisement of our business.
With more of this we will have some regular customer packages for some special segments. Such
as10
1.
2.
3.
4.
A discount Package for newly married couples (marriage not before 6 months)
Discount card for regular and loyal customers
Special Packages for students
Special arrangements on special events like Eid, or Christmas
6.5 Research & Development:
We will have a research & development department. We have included this because every
product runs for a fixed amount of time. If it is not changed in from or any other presentation the
product cannot stay in the market. So, to make our products surviving for a long period, we have
a plan to do these followings under this department.
1. Nutrition Test: R&D will setup a nutrition test facility to maintain and observe the
nutritious power of our foods. As we are concerned with our customers' well being, we
are very much conscious about the nutrition of our foods.
2. Test of Healthiness: We will make comparison the healthiness of all foods will be under
our service. Because the more healthy food we will serve people will get more interested
with our items. And this will be a plus point for our business.
3. New Recipes: We will search for new recipes, new ways of serving foods, or new type of
food which can make a run in parallel to our products. Because innovation creates some
extra images and people are fond of something new. So we will arrange some recipe
contest or new food idea hunt type program to make this in a chain.
11
7.
Management
Without a proper management system a business cannot be run well. So we are very much
concerned about our management body of our business. And we have a flat structure
management of business organization.
7.1 Management Body
Chief Executive Officer (CEO)
Abdur Rakib Akon
Senior Executive Officer
Md. Nazmul Huda
Assistant Executive Officer
Reza Al Saad
Shamatha Islam
Dhaka Branch Officer
Ahmed Ibtehaj
Khulna Branch Officer
Md. Masrul Mollah
Chittagong Branch Officer
Hasan Md. Saiful Islam
Head, Product Control & Management
Arifuzzaman Khan
Head, Supply Chain Management
Safwan Ahmed
Head, Human Resource
Reza Al Saad
Head, Marketing & Promotion
Md. Nazmul Huda
Mohua Rashid
Head, Research & Development
Abdur Rakib Akon
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Accounts officer
Md. Masrul Mollah
Legal Advisors' committee
Advocate Salahuddin Yusuf
Advocate Sharmin Sultana
Waliur Rahman (Magistrate)
7.2 Management Structure
Our Management structure will be flat. All of the activities will be observed and monitored by
the executive officers' panel. And thus we are not in a complicated form of business we think this
will be enough for a business to make a first run. But if we plan to go for making our business
corporate, we will have concerns about our management and we will re-organize our
management body.
13
8.
Financial Forecasting
Here we have prepared our forecasting of our business for our business. First we have shown our
expenses and then we tried to show how our projected revenue will generate.
8.1 Expenditures
One time expenses
Tk.
Three Buildings Contract cost for five years costs:
800000
Business License Fee:
45000
Two Trucks Contracted for five years:
75000
Furnitures and Decorations
155000
Motor Vans (30)
3500610
Other setup charges
125240
VAT
705120
Total
5405970
Depreciation costs for every year within a five year period:
Years
1st Year
2nd Year
3rd Year
4th Year
5th Year
Depreciations
1081194
864955
691964
553572
2214285
3rd Year
4th Year
5th Year
12 months expenditure throughout the year
Expenses
1st Year
2nd Year
Rental
144000
144000
144000
144000
144000
Administrative
500500
618000
523000
541000
603000
Vans & Trucks
614400
612370
643050
655090
656050
Salaries
670000
678000
682000
689000
710000
1081194
864955
691964
553572
2214285
Materials
556000
568500
582300
589400
597600
Others
412000
423000
448000
453000
456000
3978094
3908825
3714314
3625062
5380935
Depreciations
Total
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8.2 Investments & Revenues
Our Investors total contributed:
Abdur Rakib Akon
Tk. 12500000
Reza Al Saad
10900000
Md. Masrul Mollah
9730000
Md. Nazmul Huda
13155000
Total
Tk. 46285000
Revenue Calculation
1st Year
2nd Year
3rd Year
4th Year
5th Year
Expenses
3978094
3908825
3714314
3625062
5380935
Projected
revenue
3987000
5020500
7343000
9786000
10105000
8906
1111675
3628686
6160938
4724065
Balance
From above we can see that we will enjoy the most incomings in the 4th year after launch. And
this is a positive sigh that we will have been reached at the break even point within 1st year.
15
9.
Exit Strategy
If some of misconducts or any breakup among our partnership comes may be we can dismiss our
business. Though there is a low possibility but if one of the following scenarios happens we will
close our business1. If any bankruptcy happens to us
2. If law enforces us to do so
3. If our partnership breaks up
4. If we become unable to run business
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10.
Appensix
Sample Price Menu
(As we haven't decided our products, so a hypothetical and short form of price menu is given
here)
Items
Price (Tk.)
Sweet Pithas
Vapa Pitha
15/=
Patishapta Pitha
12/=
Semai pitha cooked by gur (per plate)
15/=
Takti Pitha
5/=
Pooli Pitha
10/=
Nakshi Fula
20/=
Ras Chitai
18/=
Dudh Chitai
15/=
Chilly Pithas
Jhal Pooli
10/=
Dim Makhan
12/=
Jali Pitha
8/=
Jhal Takti
5/=
Spicy Pithas
Vaja Pooli
12/=
Vaja Patishapta
15/=
Shukna Chitai
8/=
Shukna Chitai with chicken
Pan Pitha
30/=
5/=
Fluid Items
Coconut Water
5/=
Bel Sharbat
8/=
Lebu Sharbat
5/=
17
References
We have followed some guidelines from 'Writing your business plan is a lot of hard work,
however it is' and 'Restaurant Business Plan submitted by Abonda' can be downloaded from
http://www.scribd.com
Porter's five factor's model picture is taken from http://foodandretail.blogspot.com/2007/10/porter-5-forces-how-they-work-3.html
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