business plan on haji ali juice center

Market Research Project

Project on Market Research

Submitted to:

Prof. Arun Sharma

Submitted by:

Group 3

Group 3 – Haji Ali Juice Center


Sr. No Particulars Page No.

1. Executive Summary 3-4

2. Products and Services 5-6

3. Web Plan Summary 7

4. Market Analysis Summary 8-14

5. Strategy and Implementation Summary 15-17

6. Financial Plan 18-20

7. Management Summary 21

Executive Summary



The Indian fast food market has been witnessing rapid growth on the back of positive developments and presence of massive investments. Currently, market growth is largely fuelled by the rising young population, working women, hectic schedules, and increasing disposable income of the middle-class households. Some of the unique properties of fast food like quick served, cost advantage, etc are making it highly popular among the masses. Thus, India offers enormous opportunities for both domestic as well as international players.

The Indian Fast Food Industry is anticipated to grow to CAGR of around 34% during 2011-2014.Anticipating the future growth, many international players are entering into the market by making deals with the domestic players. And those who already well-established in the Indian Market are finding the space in the other parts of the world.

There is a large scope of growth in the untapped tier-2 and tier-3 cities, so we will apply our various marketing strategies to tap this market also. Currently we are targeting the Mumbai as our main source of Income and we will open our first chain outlet of Haji Ali Juice Centre at Nepean Sea Road which is an upmarket and has a great connectivity to the south Mumbai. Further to this we will position ourselves by providing the affordable and customized products (Juice, Ice Cream and Sandwiches) to suit the need of people.

We will mainly focus on the youngster who not only bring their friends but also bring their families to the outlet which will significantly add revenue to the company.

Objective:

One destiny stop for Juice, Ice-Cream and Sandwiches To establish a presence as a successful local food outlet and to gain a small market share

in India’s fast food Industry To expand in terms of product portfolio and as well as the number of outlets in a year or

two

Mission

Our main focus will be serving high quality products with great value.

Our main goal will be one of the most successful food and desert outlet in India, by starting our first chain at Nepean Sea Road which is an upmarket area and has a greater connectivity with south Mumbai.

Our Speciality in Juices will strive to be a Premier local outlet as a brand in the local marketplace. We want our customer to have the total experience when visiting the outlet and website and provide a valuable feedback over there to understand their needs and wants.

Key to Success



To succeed in the business we will follow below steps:

Our menu card will be unique, innovative which will differentiate us from the rest of the competition

We will focus on our operational costs and we will follow integrate approach overall starting from getting raw material to making it as a finish good for customers

We will sell the product with highest quality and will focus on to keep the customer happy with our product category

We will focus on to get traffic to our outlet from the nearest places such as shopping malls, colleges etc to reach the target market

Maintaining the excellent services over competitors to create brand image and to provide 100% satisfaction to our customer

SWOT Analysis

Strengths:

Premier fast food operator in Mumbai and has been serving to the market for more than seven decades

High Profile location and having a well honored name of saint Haji Ali Exceptional foods prepared by highly trained chefs Food Service is genuine and caring that is designed to maximize the guest appeal and to

create life time guests Kitchens are completely visual to our customers with dramatic open spaces Wide variety of Products and great capability to increase the product portfolio further Differentiate with Specialties

Weakness:

Only one branch over the last seven decades No brand image in the minds of the consumer

Opportunities

Every year about 25-30% growing fast food market in India Growing dining out market (People going out to eat has been tremendously increased) Franchisee and Joint Venture Model New product offerings with the use of growing technology

Threats

More health conscious customer Competitors Indian Economic conditions (People started savings)



More mature players are available with the decrease in price of the products

Products and Services

Products

Our product portfolio will mainly contain Juices, Ice-Creams, Sandwiches. We will tie up with the Coke as it is highly accepted in the upmarket by the consumers. This will add one more item in our portfolio and this is mainly for those who don’t like Juices and Milk Shake.

Services

Our hiring process for the staff will be unique and we will trained the employees in order to deliver the best service ever experience by the customer. We will provide free home delivery to the nearby are say about 15-20 KM and the order will be deliver in 45 mins.

Product Description

As above mentioned we will mainly focus on Juices, Ice-Creams and Sandwiches. Main Products sold are Fruit Juice, Milk Shake, Falooda , Special Juice with fresh cream, Pizza , Ice-Cream and Sandwiches.

Special dishes will be available with the Fresh cream for which price will be vary from Rs 40 – Rs 90.

Our Speciality Products are listed below:

Kesar Dryfruit with Fresh Cream

Badam Pista with Fresh Cream

Dryfruit with Fresh Cream

Kesar Badam Pista with Fresh Cream

Anjeer with Fresh Cream

Kaju Anjeer with Fresh Cream

Competitive Comparision



Haji Ali has several advantages over its leading competitors:

Variety of Juice with special qualities We expect a high degree of enthusiasm and offer a fun store with friendly staff, that

reflects the company's youthful and energetic culture. Our innovative packaging will be more entertaining than our competitors; a single cone

with a cup reserved for dipping sauce. Our competitors are

o Garcia’s Famous Pizzao Domino’s Pizzao Shivsagaro Natural Ice-Creamo Swati Snackso Right Placeo Bharat Dairy and Juice Center

Sourcing of Raw Materials and Other Items

Fresh Milk will be delivered daily from Kaduji Dairy (Jogeshwari [w]) at our outlet for preparation of Fresh Creams, Milk Shakes etc. We have also another source for getting milk that is Mahanand Dairy (Bandra [w]) for other stuffs.

Fresh Bread for Sandwiches and Pizza’s will be delivered on daily basis from Puratos Food Ingredients India Pvt. Ltd. (Mumbai Central).

Rest all the stuff required such as Dryfruits and Vegetables will be outsourced from reputed Wholesaler.

Technology Requirements

We will be requiring high end machines with technological equipped that will easily make Juices, Ice-Cream, Sandwiches and Pizza’s. We will be requiring a cold storage for Milk with advanced features.

For operations we will be requiring the software that will help us in making receipt of sales easily and efficiently.

Future Products and Services

For nest 1 year we will be focusing mainly on the Juices, Sandwiches, Ice-Cream etc and later we will add new categories to our menu such as Banana Shake, Sandwiches with wheat bread etc. We will add French Fries in our Product Portfolio.



We will come up with the concept of “value meal” with an innovative package menu which will increase our sales with the volume. It will be a combination of French Fries, Sandwich and a Juice or Ice-Cream or Coke at greater value than selling at individual items.

Further we will like to have a Bigger Meals for Price Sensitive Customers.

Web Plan Summary

We will have a website which will be containing all our Product Portfolio and New Product offerings. Website will be made user friendly and more interactive with the help of Quiz Games. We will start a Promotional Coupons (Daily Basis) on the website wherein first come first server user can get an advantage for the same.

Further there will be a Suggestions and Feedback form on the website which will helps us to improve our product offerings and service. Website will be our key for the engagement between the company and our target audience.

Website Marketing Strategies

Haji Ali is one of the famous and Prestigious place to visit so we will tie up with the tourism websites for more visibility

Justdail will be the most powerful tool for us, we will have a separate strategy with them Burrp and Zomato we will be using for creating a Brand Image We will integrate our FB page with Burrp and Zomato, if any user will post about our

outlet it will be directly posted on the reviews section. We will target our audience on FB

Development Requirements

To make the website user friendly our front end design will be done by Mr. Jitesh Navlani with the help of most powerful tool WordPress which has in all more than 10000 Plugin to make website interactive and more customer oriented.

Our back end of the website will also be handled by Mr. Jitesh Navlani wherein our database will be managed to make business more efficient. PHP and My SQL technology will be used to develop the website and maintaining the database. Every week data will be automatically generated and insight will be taken to target the audience accordingly.

Market Analysis Summary



Indian consumers spending trend for food eating outside have increased over the period of time in this economic slowdown situation. There is an increase in the fast food franchises such as Domino’s and Mc Donalds.

The days are gone where people make the food at home and now people are more tending towards outside for food due to which number of food outlets and restaurants are increasing day by day. Indian Fast Food industry is anticipated to grow at a CAGR of around 34% during 2011-2014.

We have defined our target market on the basis of below categories:

Age: Youth and College Going StudentsFamilies: We all also focus on the families with childrenIncome: We will target medium and high income group

Survey Results: We have done a small survey in the age group between 20-40 years, of which we found that 52% of the people like to visit roadside food outlet more than once a week which is matching with the Indian Spending Trend of eating food outside and around 90% of the people will recommend to their friends which itself a good sign for increasing trend of food consumption outside. So, there is a large scope of opening an outlet in the Indian Market.

The survey also illustrates below findings which clearly tell us the reason of increasing popularity of fast food:

Almost 100% of the respondent said that we visit the roadside food outlet very frequently

60% of the people spend more than average while going out to eat More than 70% of the respondent like to visit in the evening time at roadside food

outlet More than 53% of the people agreed about the price have been charged at the

roadside food outlet

Below is the output of our survey:



Have you ever visited road side food outlet?

Frequency Percent Valid PercentCumulative Percent

Valid Yes 75 100.0 100.0 100.0

How much you spend at roadside food outlet?

Frequency PercentValid Percent

Cumulative Percent

Valid Below Rs 50 17 22.7 22.7 22.7

Rs 50 - Rs 150 45 60.0 60.0 82.7

Rs 150 - Rs 300 11 14.7 14.7 97.3

More than Rs 300

2 2.7 2.7 100.0

Total 75 100.0 100.0

What time you normally visit roadside food outlet

Frequency PercentValid Percent

Cumulative Percent

Valid Between 12-3 PM

3 4.0 4.0 4.0

Between 3-6 PM 11 14.7 14.7 18.7

Between 6-9 PM 53 70.7 70.7 89.3

10 PM or Later 8 10.7 10.7 100.0

Total 75 100.0 100.0



Recommend to your Friend


Valid Yes 67 89.3 89.3 89.3

No 8 10.7 10.7 100.0

Total 75 100.0 100.0

Please indicate whether you agree or disagree with the price charged at roadside food outlet


Valid Strongly Agree

9 12.0 12.0 12.0

Agree 40 53.3 53.3 65.3

Neutral 25 33.3 33.3 98.7

Disagree 1 1.3 1.3 100.0

Total 75 100.0 100.0

Market Segmentation

We are target youth Indian as our primary market as Indian Population has a lot of youngster. Napean Sea Road is the best place for our target market as it has a great connectivity over south Mumbai and there are lots of Colleges, Schools nearby vicinity. The young office goers will also be in our target list as they prefer to have outside rather than bringing lunch boxes with them.

Our Secondary market segment will be the working professional both males and females mostly the couples as they are more focused on saving time so they prefer to have food outside during their lunch timings rather than bringing the lunch boxes. Next to this our target will be the tourist who visit India and have no time for full meal and they prefer to have fast food to fill the stomach.



50%

40%

10%

Percentage

YouthWorking ProfessionalTourist

Target Market Segment Strategy

As above mention our primary target market will be youth (20-30 age) as they are the first source to create a Brand image. They are our first stage of target market and we will be dependent on them as a main source of revenue.

Our secondary market will be the working professional between the age of (30-45) as they are more flexible in spending so they will be our target for our premium products.

We will target the market with our core strategy of individual items as well as the value meal. We will provide the meal in between 12-3 PM so as to attract the college and school students. Our pricing will be little high because we will bring fun and excitement at the same place.

Market Needs

According to the survey done by us we have identify the following needs among the respondents. And we will go accordingly to serve our target market

Want variety and quality in food with exceptional service With eating they need fun and entertainment Enjoy eating outside Maximum people love to go outside in between 6-9 PM



Need of clean, friendly, and attractive environment Change in lifestyle and people come from various cultural background Adopts according to the city

Market Trends and Market Growth

The Indian Fast Food Industry is anticipated to grow to CAGR of around 34% during 2011-2014.Anticipating the future growth, many international players are entering into the market by making deals with the domestic players. And those who already well-established in the Indian Market are finding the space in the other parts of the world.

There is a large scope of growth in the untapped tier-2 and tier-3 cities, so we will apply our various marketing strategies to tap this market also. There is a huge growth opportunities in the coming years and with the opportunities there will be a great competition from the well established players like Mc D and Domino’s. We will in all have a separate strategy to handle such well established brand in India.

The key to success will be serving the best quality of food with exceptional service and giving a great experience with Fun and excitement for repurchase.

Industry Analysis

Despite the slowing economy and huge goof up by the political parties India’s Food Service Industry is anticipated to grow to CAGR of around 34% during 2011-2014. Much of this growth was contributed by the Fast Food Restaurants, Café Bars etc and the population was mostly the youth and more importantly the trend of eating out has been seen as a lifestyle.

Entry of the most multinational fast food chain restaurants overall India led to the growth of the competition in the marketplace. Though there was a crisis in 2007 but fast food industry has been recovered since 2001. Many fast food chain restaurants come up with the concept of Franchisee model like Mc D, Domino’s Pizza, Papa Jones, Pizza Hut, KFC etc. This has increased the food industry market radically and opens up the opportunities for the local players.

Local players have also started with the same strategies and experienced a great growth in the field of fast food market.

Industry Participants

We are in the business of Fast Food Industry and it is composed of few national brands and more f international brands. So our business plan will be made according to the nature of the participants with whom we will compete.

Below are the Industry Participants:

Health Juice Centre



Bachelor’s Juice Centre Gupta Snacks Mc Donalds Domino’s Pizza etc

Distribution Patterns

As we are in the Fast Food Industry and we are just starting with our main branch in Napean Sea Road so there will be no agents, manufacturers and dealers in between the distribution. It will be pure concept of Personal Selling over phone.

The order will be delivered in 45 minutes in which we have specified a range of 15 Km. Mode of distribution for this will be a two wheeler and a person who delivered the goods. There will be another mode of distribution is through the website wherein user can place an order and the order will be delivered with the same process of phone calling. All the orders which we will be taking for delivery are cash on delivery.

Competition and Buying Patterns

As we have thought of to open an outlet at Napean Sea Road near to the Palm Beach School where in our foot falls will be high as there are less competitor available there. Mc Donalds and Dominos are far away from that area. Though there are local food chains there but we will be positioned ourselves in a unique way so that we will get the appropriate response from the crowd.

There are shopping malls beside the Napean sea roads so we will be targeting those shoppers as well by the medium of advertising. The buying pattern at Napean Sea Road is quite average as it is one of the upmarket in the Mumbai.

Main Competitors

Our main competitors in this segment are any food outlets within the 500 meter radius. Below are few names that we have discovered of our competitors.

Garcia’s Famous Pizza Domino’s Pizza Shivsagar Natural Ice-Cream Swati Snacks Right Place Bharat Dairy and Juice Center



So above all are the main competitors near to the Napean Sea road where our outlet will be located. All these are well positioned in that area and we are going to face a good competition from them.

So below are the marketing strategies for our offerings and USP.



Strategy and Implementation Summary

The strategic plan needs to be implemented, which is a process that requires careful planning.

The key to implementing objectives identified in the strategic plan is to assign goals and responsibilities with budgets and deadlines to responsible owners - key employees or department heads, for example.

We are going to open our initial outlet near to the Pal Beach School, Napean Sea Road. This will become our market testing area and as we go further we will open another outlet in the coming months. We will be offering various gifts while opening depend upon our bedget in order to attract the traffic.

Value Proposition & Competitive Edge

Our competitive edge comes from the advantage of having established relationships with Supplier and Retailer and Wholesalers.

Haji Ali Juice Centre has received affirmation of the demand for their product in the form of requests of introducing new variety in the existing product line. We feel we have a superior product offering because of the larger variety of our Juice line, and because we purchase our material direct from the original suppliers who provide other well-known products.

Our company's competitive edge exists because we address the needs of our specialty juices and snacks for our customer’s.

Innovative Packaging and Friendly staff

There are several other projects we are currently working on to further broaden our product lines and open up our markets even more. We will be more than glad to discuss in length some of our future confidential plans, upon request.

Strategic alliances

As we are just opening our first outlet so currently we have not thought of to merge with any of the company or an established firm. In future if time permits we would like to merge with the well-established firm in the Fast Food Market in order to make our distribution channel stronger.

Currently we have a good relationship with our suppliers and vendors.

Sales Strategy

Our sales strategy focuses on meeting the increased demand of specialty juice centre in the Napean sea road.



These are critical to our ability to acquire additional accounts on both the East and West coasts of the Napean Sea road. We will focus on increasing the volume in the Napean area while working on our local maketing strategy.

For now, our products are seen through our website, where our e-commerce lets us sell our products direct at full retail price. We will also gear sales towards the specialty shops with our portals. Through this specialty juice and snack centre of Haji Ali, we will further increase our sales at Napean Sea Road Centre.

Marketing Strategy

Haji Ali Juice Centre marketing strategy will include the use of targeted print media advertising and direct selling to the customers in the Napean Sea Road.

Apart from this, we would like to distribute some pamphlets into the locality and one small hoardings near the Highway which helps potential customer to identify their Juice Centre.

We will capitalize on existing relationships with customers who have stated their willingness to have juice and recommend Haji Ali Juice Centre to their relatives.

Positioning Statements

We have positioned ourselves as a differentiated provider of the highest quality of Juice. The primary goal of all marketing efforts will be to communicate this to existing and potential customers.

Currently Haji Ali has all its product at its peak level. We would like to positioning by introducing some new variant into existing product and some newly product which also gives us the knowledge of market in terms of their like and dislike. To name a few:

- Coco (Chocolate Drink)- Fruit Salad (Mix Fruit Drink)- Badam Shake- Thick Shake (New product)- Anjeer Shake

Pricing Strategy

Initially, we would like to introduce all the existing products of Haji Ali Juice at a discount price of 10% in order to attract the specified market. It helps us to create awareness among the potential customer.

The cost structure is important for identifying key factors for success. To this end, Porter's value chain model is useful for determining where value is added and for isolating the costs.



Promotion Strategy

Personal selling will remain our most important means of promotion. Our budget for promotion activities is as follows:

Personal Selling which includes phone expenses, direct selling, trade promotion and data generation from private organization which leads to Rs 35,000 annually.

Print Advertising Rs 1000 monthly.

Distribution Strategy

Distribution is one of the greatest challenges faced by Haji Ali Juice Centre.

Distribution costs for internal sales are absorbed by the customer but distribution costs for home delivery are absorbed by us.

Existing distribution channels - can be described by how direct they are to the customer.

Current Haji Ali Centre has the selective distribution channel which limits to the certain part of Mumbai or majorly the Haji Ali area.

Trends and emerging channels - new channels can offer the opportunity to develop a competitive advantage

Now, by considering the existing demand for the Juice and Snacks of Haji Ali, we would like to adopt the intensive distribution channel which helps the customer to obtain the advantage of our product near to them. This will also help us in creating brand and loyal customer every part from the Mumbai to Navi Mumbai.



Financial Plan

The company will be privately held by Hitesh, Meenakshi, Amol, Mayank and Jitesh.

Important Assumption:

The rent of the store is assumed on the basis of current market rate at Napean Sea Road

The outlet should have a minimum area of 800sq feet for proper working of the staff.

All the costs are assumed

The breakeven is calculated on the basis of only on Juice Sell and only the FC and VC is being considered.

The cash flow statement is made only on the Juice Sell.

Key Financial Indicators

Equipment Costs

Item Estimated cost(Rs)

Furniture 3lac

Utensil 1lac

Electric Cooking System 1lac

Gas cooking system 1lac

Electrical goods 1lac

Decorative items 50K

Total 7.5Lacs

Salary and Wages (Monthly)

Position Rate Amount (Rs)

Cook(3) 15000 45K

Helper(4) 6000 24K

Cleaning stuff(5) 5,000 25K

Delivery Boy(4) 5,000 20K

Store Boys(5) 4,000 20K



Store Manager (2) 30,000 60K

Security(1) 7,000 6K

Others 50K

Total 2.5lacs0

Raw Materials

Item Amount(Rs)

Milk, Dryfruit etc 6lacs

Water Charges 5K

Others 5K

Total 6.10Lacs

Rent of the Outlet

Particular Amount(Rs.)

Building rent 2.25lacs

Total 2.25Lacs

Total Costs for Opening an Outlet

Particulars Amount(Rs)

Equipment costs 7.5lacs

Salary wages and RM 8.10lacs

Rent of building 2.25lacs

Advertisement 1lac

Electricity Bill and License 1lac

Others 10K

Total 20lacs

Sources of Funds:



Investor: 10LacsBank Loan: 5Lacs5 Partners: 5Lacs

Total: 20Lacs

Break Even Analysis

Fixed Cost Variable CostRent 2.25 Lacs Raw Materials 6 LacsSalary and Wages 2.25 Lacs Others .50lacAdv 1lac Total 6.5lacsElec Bill .75lacTotal 6.25lacsTotal 12.75Lacs

So for breakeven we have to sell atleast a 12750 Glasses per month of the Juices with an average price of Rs 100. Further it is noted that we will not be earning any profit for next 1 year.

Projected Profit and Loss

As the Profit and loss shows, we will run our business with loss for the first year, using sum of the cash reserves. So a total loss of Rs 8.4Lacs which will be recovered in the coming year by opening up new outlets and new product offering.



Month1

Month2

Month3

Month4

Month5

Month6

Month7

Month8

Month9

Month10

Month11

Month120

20000

40000

60000

80000

100000

120000

140000

Series 1Series 2Series 3

X-axis – No of Months and Y-axis Loss in Rs

Project Cash Flow

Projected Cash Flow Selling Juice Glasses

Cash Sales12750*100*12

15300000

Total Cash Received15300000

Cash Spending and Bill Payments16140000

Net Cash Flow (840000)



Mar'15 Mar'14 Mar'13

INCOME:

Sales Turnover 1.8513 1.683 1.53

NET SALES 1.8513 1.683 1.53

TOTAL INCOME 1.8513 1.683 1.53

EXPENDITURE:

Salary & Wages 0.363 0.33 0.3

Material Consumed 0.8712 0.792 0.72

Rent 0.3267 0.297 0.27

Advertisement 0.1452 0.132 0.12

Electricity Bill 0.1452 0.132 0.12

TOTAL EXPENDITURE 1.5246 1.386 1.26

Operating Profit 0.3267 0.297 0.27

Profit and Loss for the Year 0.3267 0.297 0.27



Figures are in Cr Profit & Loss A/C

Management Summary



Organizational Structure

Organizational structure will include a director (Mr Amol Godbole) of store operations when the store locations exceed four units. We hope that this individual will come out of the ranks of our stores’ management. This will provide a supervisory level between the executive level and the store management level.

Current plan is to have our accounting and payroll functions done by an in-house bookkeeping. Mr. Hitesh Agarwal will be responsible for accounting and business development of Juice Centre, helped by Ms. Meenakshi Mathpal, acting Head of Human Resources Division. Possible positions might be added at a later date include marketing manager, purchasing manager, controller, human resources, R&D and administrative support team.

Personnel Plan

Our initial employees will include three cooks, two helper, four cleaning staff, four delivery boy, two store manager, one security during open hours. This is considered an ideal personnel number for a food outlet the size of our own. Each employee will work for 38-40 hours per week.

In the long run, as we expand our product category and retail outlets, we will employ more people in the middle management to ensure the focus of our work, including store managers.


business plan on haji ali juice center

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