the partridge

8/4/2019 The Partridge

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ThePartridge


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INTRODUCTION

The PartridgeWE ARE PLANNING TO SET UP A FOODCOURT IN PANIPAT CITYWHICH OFFERS DEEP ASSORTMENT OF TRADITIONAL VARIETY OFPUNJABI AND BALTI CUISINES WITH HIGH CLASS ENVIRONMENTALSO WANTS TO OFFER DIFFREENT TYPES OF FAST FOODFRENCHIESES UNDER ONE ROOF.

EXECUTIVE SUMMARY:

We will be starting novel concept of food court in Panipat. We have chosen to enter particularly to restaurant segment because as per

BIRD OF GOLD report by McKinsey Global Institute Indian middle classhousehold will swell from 50million to 583 million by 2025.Implieshousehold have more disposable income and shift towards discretionspending.

As per CII estimate 2009 because of increase of rising per capital incomeFood industry will grow to US$310 billion by 2015.

Food Industry is growing at the rate of 13% estimate CSO (Central

Statistical Organization)

Thus there is a huge market potential and no player has tried to offer this conceptof serving variety of fast food under one roof. This place will provide a High Classtaste and High Class environment means ambience of food court will give you thefeel of foreign based food court. Its a unique combination in its own concept.After enough market research, we have found that people wants good food, good


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ambiance and also some experiments in foods, like food which is not so traditionaland have some international flavors. They want a place where they can enjoy foodwith good ambiance. The food court is all about catering to need of these types ofcustomers. We will acquire Six acre of land strategically located to be easilyaccessible for the customers residing in Panipat and Grant Trunk Road customer.

Total estimated cost of land is around Rs. 2.5 Crores (at Rs. 1150/- per Sq.Ft.).Construction Cost Rs. 6 Crores which utilizes 20000Sq. Ft. of area (at Rs2000per sq Ft.) .Remaining space would be used properly to present landscape

beauty and to engage children for entertainment. Initial project cost would be Rs 5Crore. Contribution by Promoters will be Rs. 1 crore and Bank loan of Rs. 4 crore.We will be repaying loan with an EMI of approximately Rs nine lakhs permonth .The loan would be repaid over five years period. We will be able to

breakeven in 3 years of time.

ORGANIZATIONAL HIERARCHY

There will be 3 Functional heads for this firm who will be handling variousmanagerial positions. (Purchase, Operation, HR)

They will be responsible for managerial decision making. For day to day working several staff will be hired on monthly salary or daily

wedges for various positions which include from sweeper, to clean boy, tocook, to accountant, to assistant manager, to a head for the food court

supervision. We plan to hire roughly 10 Assistant manager, 20 cooks, 40 assistant

workers to cook, 50 other helper boys for cleaning and taking order and forservice.

Vision:

To constantly innovate & provide the best that we can for our customers To be recognized as pioneers in the multi-brand food court management, utilizing

the highest levels of corporate & with dedicated employees and partners

Mission:


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To provide integrated food management support and solutions for our partnersSo that every customer gets highest level of food quality & outstanding service in ahygienic & fun dining environment

MARKETING OBJECTIVE

To achieve annual growth sale of 25%on yearly basis. To form strategic Alliance with, Macdonald, KFC and Haldiram

because we are sensitive to diverse need of customer. To become Market leader in NH1.

SWOT ANALYSIS:

STRENGTH

Location: - Our food court will be placed in such an area which canbe easily accessible from all part of city and connected to NH1.

Experienced staff: - Our hired expertise staff helps us in providingquality food service to our customer.

Ambience of place: - The feeling of High class ambiance whiledinning is itself a pleasure experience which gives us an advantageover others.

WEAKNESS

Lack of experience: Food court is a start up and the odds are lacedagainst it. Will face stiff competition from local players.

Financing: - Preliminary estimates of sales and expenditures suggestthat it will remain financially stable. However unforeseen expenditure

or poor sales will threaten cash position, which will be particularlyvulnerable in one year.

Limited personnel: - Since we need expertise staff and to find andretain it is very difficult because of the competition in the market.


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Opportunities:-

Growing market: - restaurants market is growing at a fast speed anddemand for quality food is never ending.

Potential to become a premier food provider: - because of theexperienced and expertise staff we can deliver quality food products.Also the use of technology like Surface technology on table makes itquite innovative and a new experience.

THREATS

Local Competition (existing and potential): There are firms whichspecialize in this concept of food court. Also local players are a threat

to our business since they are also competing for the same marketshare.

Economic downturn: The strong domestic economy has been goodfor the Food and hospitality industry. Continued growth is anticipated.however, unforeseen or unanticipated economic recession wouldreduce disposable income and threaten our food court sales.

MARKET ANALYSIS

Market Segmentation:.

Target Customers:

Age: Our target customers are family members within age group of 16-40 years.

Income: Our target customer will be seeker (2lac-5lac per annum), striver (5lac-10lac per annum

Occupation: Professionals, Business man, Corporate

Behavioral: To build loyalty program with target customer.

Positioning: - Traditional Food with deep assortment and global standard servicesunder one roof.


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Competitive Analysis :( On a scale of 1-5)(Questioner asked from sample of fifty people within age group 25-40 years)

This analysis is done on various food joints on theparameters like food quality, ambiance, taste, location, and price.

Haveli Sukhdev Svoy Green Panipat Mall

Food Quality 3 3 4 4

Price 4 4 3 4

Ambience 3.5 2 4 3Service 3 2.5 3 3

Location 4 4 5 3

CustomerRelationProgram

0 0 1 0

MARKETING STRATEGY AND MARKETING MIX

PRODUCT MIX

Product: We offer deep assortment of Punjabi, Balti traditional food and Fastfood under one roof .We will offer global standard services and rich ambience.Other then food we have plan for Marriage garden, gaming zone and motel too

PRICING STRATEGIES:

Price: We will be using VALUE PRICING STRATEGY offering just rightcombination of quality and good services at fair prices.

Product bundle pricing:

We will combine several products and offer bundle price at reduced price e.g., wewill offer special Flavor Thali meal at reduce price.


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The Partridge itself is a food court and has more than 15 food brands under its

umbrella that offers a perfect cuisine-mix with an array of food variety to itscustomers! The brands may be as follows:

Price: One or two products in each section will be kept at low price to attract thecustomer .The product whose price is reduced should be price elastic to pull thecustomer toward the food court.

Place: Our main focus is to pull crowd to food court by running promotionalcampaigns. Other strategy is to focus on home delivery and corporate customerswith the effective use of information system to reduce the timing for logistics.

Promotion: We will be using Integrated Marketing Communication which willhelp food court to develop a consistent, clear and compelling message which will

be in sync with food court positioning strategy.

Promotional opportunity: As with robust growth of economy per capita incomeis increasing and more shifts is toward discretion spending. Thus offering great


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opportunity to promote our concept to target audience. We will be giving importantconsideration for spending on promotional budget.

Objective of Promotion:

To ensure awareness, knowledge about the food court concept to targetcustomer.

Next stage is to use promotional strategies to develop liking, preferenceand conviction for the concept.

Last stage is to develop conviction and purchase for the selected target

customer.

Promotional Strategies:

1st Stage

To ensure awareness and knowledge among target customer. We will beUsing Buzz Marketing (attracting opinion leaders) and word of mouth

publicity. Advertisement through local media network (cable, newspaper, and Radio).

Participating in food fest and organizing food fest competition.

Using SUBLIMINAL advertisement strategy in cinema hall to developawareness of product.

2nd stage of strategy:

Using direct marketing concept to reach selected customers via E-mail.

Organizing cultural event every weekend to pull crowd to food courtand develop liking and preference for the place.

With the application of data base management system trackingcustomer purchase, frequency and preference to build customerloyalty program.

Positioning Message:

Our positioning message from every channel of media vehicle is going topromote traditional Food with deep assortment and global standard service.


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Evaluation: Implement consumer feed back survey to selected targetconsumer to check success of IMC campaign on parameter like Branding,Image, and Positioning after three month of promotional activities.

Budget: Budget would be Rs 20lac per year.

SALES STRATEGIES

To generate majority of revenue for food court by pulling customer to

food court location. To target corporate office in the town and offering them special

corporate prices.

To target carefully selected customer through DIRECTMARKETING using E-mail for better generation of revenue fromHome delivery business.

INNOVATIVE MARKETING STRATEGIES

Application of information system (Microsoft surface Technology

Computers)

In maintaining customer database on parameters like Amount of purchase,frequency, preference etc. All this activity helps us to build loyalty programwith profitable customer.

We will be using Microsoft latest surface technology computers with whichcustomer will just have to put menu on surface of computer and will get all

information regarding cuisine of his liking .This will substitute waiter roleand help in cost reduction. Not only this they can pay bill by using theircredit/debit card just moving card over surface of item order that display oncomputer surface screen.

To greet Loyal customers on special occasions (marriage anniversary,birthday anniversary).


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STRATEGIC ALLIANCE:

1 Form strategic Alliance with Macdonald, Sweet Chariot, Haldiram. This wouldhelp us to cater diverse need of our target customer .In addition we will be taking

rent from them which will contribute to our miscellaneous revenue.

2. PROMOTINAL STRATEGY:Installing kiosk on NH1, over bridges and on mall, provides internet to consumer

and can advertise like download song free of cost inside Food court. One option onthe site provides detail about assortment of product available with food court.

3. Setting up web 2.0 website which offers advantage better than web1.0website.Customer can interact with site, provide their feed back and write blogabout their experience in food court. We can use this site to offer wealth ofinformation about nutrient content of our products.

4. We will organize cultural programme every week to pull crowd towards foodcourt. We will be spending Rs 40,000 per month on this activity.

BREAK EVEN ANALYSI


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We plan to break even within a period of three years, though we plan to repay ourloan in a period of 5 yrs.Fixed cost of investment is Rs 4.5 cr that we have spent on building and land.We will break even at a Revenue of Rs 21.8 Cr

FINANCIAL ANALYSIS

Year - 2012(All Figures in Rs)

Cash Account


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Revenue

To Capital 10000000

To Loan from Bank 40000000

To Cash Sales 60000000

Total 110000000

Expenses

By land and Building 45000000By Purchase 18000000

By Equipment 3800000

Salary 9000000

Electricity 4000000

Insurance 500000

Consultancy Fee 100000

Stationary 50000

Legal 10000

Other Expense 440000

By Interest 4800000

By Tax 5984748

By Repayment of Loan 5877292

By Advertisement 1920000

By Balance 10417960

Total 110000000

Profit and Loss Account

To Depreciation 2000000

To other Expense 15500000

To purchase 18000000

To Interest 4800000

To Advertisement 1920000

To tax 5984748

To Net Profit 11795252

Total 60000000

By Sales 60000000

Total 60000000

Balance sheet

Liability

To Capital 10000000

Loan 40000000

Loan Repaid 5877292


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Loan to be Paid 34122708

Profit 11795252

Total 55917960

Asset

Land 25000000

Building after Depreciation 18000000

Cash 10417960Equipment 2500000

Total 55917960

Cash Flow Statement

Cash Flow from operating activities

Paid to Suppliers(Purchase) -18000000

Paid to office Expenses -15500000

Paid for Advertising 1920000

Sales 60000000Tax -5984748 18595252

Cash flow from Investing Activities

Land and Building -45000000

Equipment 25000000 -47500000

Cash flow from financing activities

Share Capital 10000000

Loan 40000000

Interest -4800000

Repayment of Loan -5877292 39322708

Net Cash 10417960

Year 2013(All Figures in Rs)

Cash Account

Revenue

To Balance 10417960

To Cash Sales 72000000

Total 82417960 Expenses

By Purchase 22000000

Salary 10468000

Electricity 5184000

Insurance 450000

Consultancy Fee 108800

Stationary 54000

Other Expense 475200


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By Repayment of Loan 7158567

By Interest 3518725

By Tax 12661723

By Advertisement 1920000

By Balance 18418945

Total 82417960

Profit and Loss Account

To Depreciation 2000000

To other Expense 16740000

To purchase 22000000

To Interest 3518725

To Advertisement 1920000

To tax 12661723

To Net Profit 249954804

Total 83795252

By Sales 72000000

By Profit B/D 11795252

Total 83795252

Balance Sheet

Liability

To Capital 10000000

Loan 34122708

Loan Repaid 7158567

Loan to be Paid 26964141

Profit 24954804

Total 61918945

Asset

Land 25000000

Building after Depreciation 16000000

Cash 18418945

Equipment 2500000

Total 61918945

ECONOMIC FEASIBILITY


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1Start up cost of acquiring land and building food court is Rs 4.5 crore including2.5 crore&2crore respectively. As we are introducing new concept of food court inPanipat for the first time and our plan is to offer 10 different food sections

presenting different state rich food culture. So this is the reason why we haveacquired half acre land and built 10000sq ft. area to provide world class services tocustomers and for rest of the space we have planned to maintain beautifullandscape to provide ambience and delight to customers. This scale up project ofrunning 10 different food court and strategic alliance partners. We will beexpecting 1000 customer per day from first month of our project. In addition wewill be catering home delivery and corporate customers. We have estimated to

breakeven in 3 years. We have not acquire more than half acre because this is ourfirst pilot plan .After successful implementation of plan we will be coming up withlarge scale up project.

2. We have planned to hire three functional head for managing services, marketing,and operation. We plan to hire roughly 10 Assistant managers, 20 chefs, and 40assistant workers to cook, and 50 other helper boys for cleaning and taking orderand for service. The salary expenses of staff and managers would be Rs 9 lacs permonth. The staff number is on higher side because we have to offer deepassortment of product every day to our customers and provide them with worldclass services. That is our main value proposition. As our revenue increases we canhire more staff depending on concept of Marginal Revenue per employeecontribution.

3. We have budget of Rs20lacs per year on advertisement and promotion becauseour concept is new in the market. So success of the plan would depend on how fasteffective promotion campaign will pull crowd to food court location. We also haverecruited marketing head to ensure successful implementation of plan that is to pullmore than 1000 customer to food court on per day basis and more than 500 homedelivery or corporate order from first month of operation.

SUMMARY

We have introduced novel concept of offering deep assortment of traditionalfood with cultural ambience of surrounding and to match with world class services.To offer best taste in our recipe we have carefully recruited chefs from all parts ofcountry. As we are spending Rs 2000 per Sqft. On constructing food court complexto offer our customer ambience. We have done full proof analysis of financialstatus. We have plan to breakeven in three years.


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After successful implementation of our first pilot project in Panipt . We will

also scale up our project in Panipat food court by utilizing unbuilt area forestablishing Gaming center for children, Spa, ultra modern fitness center.

the partridge

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