MINI PROJECT REPORT

ON
RESTAURANT BUSINESS

Submitted By
UDITYA
SRIVASTAVA
MBA I YEAR

Under the Guidance of

Mr. Lakshman Kumar
Trivedi

HOD – MBA

In partial fulfillment of the requirement

for the award of the degree of

MBA (MASTER OF BUSINESS ADMINISTRATION)

OF

DR. A.P.J. ABDUL KALAM TECHNICAL UNIVERSITY, LUCKNOW

INSTITUTE OF ENGINEERING AND TECHNOLOGY

RESORA, SITAPUR
 DECLARATION

I do hereby declare that this Project Report “MINI PROJECT ON

RESTAURANT BUSINESS IN THE CITY OF SITAPUR ” is an original work

done by me in partial fulfillment for the degree of Master of Business

Administration under AKTU, LUCKNOW

I further declare that this work is not partially or wholly submitted for

any other purpose and the data included in the report collected from various

sources are true to best of my knowledge and will be kept confidential.

UDITYA SRIVASTAVA

MBA I Year
 CERTIFICATE

This is to certify that Project report entitled “MINI PROJECT ON

RESTAURANT BUSINESS IN THE CITY OF SITAPUR ” submitted by Uditya

Srivastava student of MBA I Year in partial fulfillment requirement for

the award of degree MBA (Master of Business Administration ) under

the guidance of Mr,Lakshman Kumar Trivedi, HOD (MBA)

Date:

Place:

Signature
 ACKNOWLEDGEMENT

In the making of this project report, I have relied upon the valuable assistance and

help have spent of several people without whom this report would not have been

possible.

I wish to place heart full thanks to all those who have spent their precious time,

expressed keen interest and give continued encouragement. Success of my project

depends upon two factors internal and external factor includes sincere efforts,

dedication to the work and good potential whereas internal factors includes

cooperation and support of Staff Members who patiently tell me about the schemes

and plans of the company.

Throughout the study provide me the better opportunity to work as a trainee in the

company and enabled the successful completion of my project .

UDITYA SRIVASTAVA

MBA I Year
 PREFACE

The Mini project report is an integral part of the MBA course. As a matter of fact

ever management students, has to undergo practical training in an approved

business or organization normally, in under the guidance of our Teachers as to

become aware of the real life, business situation and the environment.

During this project, expected to use and apply their academic knowledge of and

gain valuable insight into corporate cultures with all its environment operational

complexity the said training offers, a valuable opportunities to the projects to meet

their academic knowledge with the real world situation.

UDITYA SRIVASTAVA

MBA I Year
 TABLE OF CONTENT

Sr. No. Topics

1 INTRODUCTION OF THE NEW
PRODUCT/SERVICE
PROJECT AT A GLANCE-
1.1 Name of project
1.2 Name of partners/proprietor
1.3 Total cost
1.4 Sources of finance
1.5 Use of product/service
1.6 No. of employee
1.7 Specification of employees
1.8 Size of business
1.9 Form of business
1.10 Role and responsibilities of manager
2 IMPORTANCE AND RELEVANCE OF
BUSINESS
IDEA
2.1 For yourself
2.2 For consumers
2.3 For society
2.4 For government
3 TECHNICAL ANALYSIS
3.1 Location
3.2 Product spoecification
3.3 List of machinery and equipment
3.4 Manufacturing process
3.5 Flowchart
3.6 Raw material & Utilitiesw
3.7 Software & Hardware requirements
3.8 Administrative
control- For
employee
For customer
3.9 Quality policy
3.10 Technical strength and weakness of project
4 MARKETING ANALYSIS
4.1 Origin and growth
4.2 Future development and opportunities
4.3 Recent Development
4.4 Marketing and retailing
4.5 Market forecasting
4.6 Market segmentation
4.7 Market targetting
4,8 4P’s of marketing
4.9 Marketing strategies
5 FINANCIAL ANALYSIS
5.1 Capital requirement
5.2 Sources of funds
5.3 Total cost of project
6 SWOT ANALYSIS OF THE PROJECT
7 BIBLIOGRAPHY
 Introduction

Freshin Fries is a locally owned fast food outlet that will be positioned as an

national franchise through our creative approach to the company's image and detail

presentation. Freshin Fries will provide a combination of excellent food at value

pricing, with fun packaging and atmosphere. Freshin Fries is the answer to an

increasing demand for snack-type fast food, to be consumed while window

shopping and walking around inside a shopping mall.

In today's highly competitive environment, it is becoming increasingly difficult to

differentiate one fast food outlet from another. Mumbai a city-state, is now

becoming the model metropolis for Asia's new economic boom.

Our main priority is to establish one outlet in a crowded mall, preferably in one of

prominent shopping malls in Mumbai. Later, our effort will be a further

development of more retail outlets in the surrounding area.

This plan is prepared to obtain a location for the initial launch of this concept.

Additional financing will need to be secured for the two subsequent outlets,

anticipated in month 13 and early in year three. The financing, in addition to the

capital contributions from shareholders, will allow Freshin Fries to successfully

open and expand through year two. The initial capital investment will allow

Freshin Fries to provide its customers with a value-driven, entertaining experience

through
the creativity of its founders.

Freshin Fries will entice youngsters to bring their friends and family with our

innovative environment, fresh-cut fries, and selection of unique signature dipping

sauces.

Objectives

 To establish a presence as a successful local fast food outlets and gain a

market share in Mumbai's fast food industry.

 To make Freshin Fries a destination spot for mall-goers.

 To expand into a number of outlets by year three, and sell the franchise to

neighboring metropolitan cities.

Mission

Our main goal is to be one of the most successful fast food outlets in Mumbai,

starting with one retail outlet located inside a major shopping mall as a "market

tester."

Freshin Fries will strive to be a premier local fast food brand in the local

marketplace. We want our customers to have the total experience when visiting our

outlet(s) and website as they will learn about this fascinating new "pop culture."

We will sell merchandise from pre-packaged sauces and t-shirts, to potato cutters,
all with our official brand attached to them.

Our main focus will be serving high-quality food at a great value.

Keys to Success

To succeed in this business we must:

 Create a unique, innovative, entertaining menu that will differentiate us from

the rest of the competition.

 Control costs at all times, in all areas and implement a conservative

approach to growth policy. Although, we provide more than enough fund to

open more than one outlet, we want to be on the safe side of the business.

 Sell the products that are of the highest quality, as well as keeping the

customers happy with all of our product categories from food to store

merchandising.

 Provide 100% satisfaction to our customers and maintaining the level of

excellent services among other competitors.

 Encourage the two most important values in fast food business: brand and

image, as these two ingredients are a couple of main drivers in marketing

communications.

 Get access to high-traffic shopping malls near the target market.

 Promote good values of company culture and business philosophy.

Company Summary

Freshin Fries will use advertising What is Freshin Fries?

Freshin Fries sells gourmet fries in a cone with a choice of sauce. We use the

concept of Belgian Fries, where the fries are all made from fresh potatoes and fried

twice. Our outlet also provides excellent and friendly customer service to support

the ambience of fun, energetic and youthful lifestyle.

Start-up Summary

The retail outlet will be rented at one of the target location shopping malls. Our

preference is Space A, for the main reason of reaching larger traffic.

Startup requirements will be financed through owner investments.

Marketing Assessment

Youthful and fresh surroundings

We will imitate successful establishments, such as Jamba Juice and Starbucks,

which represent the majority of our core target market, between 18 to 35 years of

age. Our store will feature display cooking of our featured Belgian Fries from

cutting to frying. Our customers will also be able to read our in-house brochures in

regards to all knowledge about Belgian Fries and our featured sauces. Our store

will be decorated with fast food setting, such as a bright counter and display menu
on the wall.

Quality food

Each store will offer nothing but freshly fried fries, sandwiches and variety of

unique blend sauces, all served with old-fashioned home-style care.

Open everyday

Our store is open everyday from 10 am to 9 pm.

Variety, variety, variety

A different selection of sauces will be featured every three months and we will also

change our soda flavors to accompany our fries.

Company Ownership

Freshin Fries is a privately held company. It will be registered as a Limited

company, with ownership 25% - Guy Fry, 25% - Sam Sauce, 25% - Carl Cone,

25% - Harry Hip.

Guy Fry and Sam Sauce have more than 10 years of experience in the food

industry. Both are currently employed as Corporate Staff of Company A.

Sam Sauce holds an MBA degree from University V. A true entrepreneur by heart,
his latest entrepreneurial project is a diamond store in the heart of Mumbai.

Company Locations and Facilities

Freshin Fries locations will range in size from 50 – 70 meter square and will seat

from 15 – 25 guests. Our first location will be on the larger end of this range. The

location will feature its own originality in merchandise display and other brand

building attributes. We will equip the outlet with modern furniture and aim for

cleanliness and an open feeling. We are currently looking at several possible sites

in shopping malls along Orchard Road.

The space selection will be chosen based upon the following criteria:

 Community size: minimum of 800,000 people within a radius of 8

kilometers.

 Tourist destination.

 Easy access.

 Large percentage of teenagers in the community.

All of these qualities are consistent with Freshin Fries' goal of providing a top

quality fast food experience. We want "word-of-mouth" to be our best form of

marketing, where our customers value our brand as something exciting and cannot

wait to tell their friends and neighbors.

We want to focus only on selling fries. Alcoholic drinks will not be sold in our

outlet, as Freshin Fries promotes a healthy and positive Mumbai lifestyle. Instead,

we will offer Soda to complement the fries.

In promoting the Freshin Fries lifestyle, we will offer various merchandise with

our logo and colors, from hats to t-shirts to potato cutters to our signature sauces,

so that our customers can enjoy Freshin Fries at home. Our signature sauce is

exclusively manufactured by Company Q. They can be also purchased at selected

retailers.

Competitive Comparison

Freshin Fries has several advantages over its leading competitors:

 Unique "fusion" concept of dipping sauce.

 We expect a high degree of enthusiasm and offer a fun store with friendly

staff, which reflects the company's youthful and energetic culture.

 Supporting merchandise items that support the company's brand building.

 Our fried potato is made 100% fresh, compared to most fast food outlets that

use frozen fries.

 Our dipping sauce is also made fresh without preservatives.

  Our innovative packaging will be more entertaining than our competitors; a

single cone with a cup reserved for dipping sauce.

Sourcing

Fresh potatoes will be delivered weekly by our distributor directly from the Market

We also have an agreement with Company Q to exclusively manufacture our

signature sauces, and all of our merchandise will be printed and produced by our

partner's office in China.

Sales Programs

Each opening of Freshin Fries will have, more or less, the same marketing mix as

the others. Below are the programs that we will develop to open each location.

Grand Opening

Each new outlet will have outdoor signage as soon as possible. We want the

signage to be supported by banners before the opening.

Point of Purchase

We will use "tray toppers" to explain the concept and philosophy of Freshin Fries.

We will also sell gift certificates, announce future job openings, and possibly

mention franchise opportunities.

Direct Mail Piece

A stand-alone piece, folded, will be produced in full color on heavy weight paper.

Inside will be all the important details of Freshin Fries, explanation of our menu,

prices, house of operation and a locator map.

Future Products

For now, we will focus on selling fries and signature sauces. However, as we grow

further, we will add new categories to our menu, such as Sandwiches and Buffalo

Wings .

In the future, our growth strategy will be offering the franchise of our brand to

food entrepreneurs in the region.

Value Meal

Sales of Freshin Fries will not only generated from the selling of its famous Fries,

but also will be generated by the conception of an innovative package menu called

the "value meal." It primarily consists of a combination of our featured Fries,

sandwiches and Italian soda at greater value than selling at individual items.

Further customization could be done by selling a bigger size of fries called "Uber

Freshin" to attract price sensitive customers.

Private Parties

Brochures and handouts will explain that we can handle banquets and private
parties, in addition to our brochure that will list our daily entrees.

Market Analysis Summary

The increasing number of new establishments such as fast food franchises, fancy

restaurants and gourmet bakeries around Mumbai has shown a significant growth

in this sector. Food spending is around 56% of total consumer expenditures in

Mumbai and consumer spending on leisure and recreation made up of 13% of total

consumer spending.

A much broader appeal exists for weekend slots because those are the days when

most of our core target market enjoys the mall going activities.

 Age - Youngsters, single, currently enrolled in college and high school.

 Family unit - We will also appeal to families (young families) with children.

 Gender - We will target both sexes, with a slight skew for males due to their

lower attention to dietary concerns.

 Income - We will appeal to the medium income individuals and to all in the

lower medium income bracket.

Our concept will have very broad appeal. It is our goal to be the hip destination for

fast food cravings.

According to a recent public survey of people 15 - 45 years old, 80% of those

interviewed like fast food. 90% of them like fast food on a regular basis, and 10%

of them claimed that they like fast food "very much," or "love" fast food. The

survey also provided the following particular reasons for the increasing popularity

of fast food:

 Most of Mumbaikars love to window shop, and when they do strolling

around the shopping district, they need a quick bite to accommodate their

activities.

 White-collar workers in offices have stopped bring lunch, and enjoy

chicken, hamburger, pizza or other fast food joints in the vicinity.

 Parents give more money to kids and students to buy lunch. Fast food is

naturally their first choice, because of the brand building effort that

heavily targets their age group.

 Eating out still remains as Mumbaikars common habit of life. They do

not perceive fast food is a luxury, and they enjoy it by bringing their

family, especially if they have smaller kids, in the environment of the

western-style fast food outlets.

Market Segmentation

We are targeting young Mumbaians as our primary market. Orchard Road is the

place to meet and hang out after school. Due to heavy extra-curricular activities
among Mumbai's youth, it is common for high schoolers to have lunch inside

shopping malls, and not at home. They tend to flock to fast food joints inside

shopping malls.

Our secondary market segment is the "Working Mumbaikars". With so many

shopping malls in the vicinity, the haven for shoppers and job seekers alike.

Lastly, destination for tourists staying in the area Tourists will stroll Road, hunting

for the latest trend in fashion and have no time to stop for a full meal during

shopping. Freshin Fries is the alternative for a quick bite while shopping the fancy

boutiques in the area.

Target Market Segment Strategy

Freshin Fries intends to cater to the bulk of teenagers and youngsters in Mumbai.

We have chosen this group for several important reasons. It is our goal to be "the

extraordinary fast food place" and we believe that the age group from 15 to 25 is

the primary age where brand-building efforts could take place. They are on limited

or fixed incomes and seek a value/price relationship that will not stretch their

budgets.

Our secondary target is between the ages of 25 and 37, which are a heavy

lounge/restaurant user group. They are more flexible in budgets and seek more

than a value/price relationship.

Our lunch strategy is dual purposed. First, we are featuring fresh fries to fill

Mumbai's craving for fast food as most ideas of lunch is a quick bite not a heavy

meal.

Second, we want to keep the price point at lunch as fair as possible to keep us in

competition with other fast food outlets.

Market Needs

Our core group:

 Wants variety and flavor in its food, preferably something fried

 Looks for speed of service

 Wants an entertaining and fun experience

 Insists upon a clean, friendly, and attractive environment

 Adopts a global lifestyle

 Is computer literate

 Enjoys eating out

 Has an active lifestyle

 Comes from various ethnic backgrounds.

Market Trends

In the past, Mumbaians preferred Western chain restaurants. This was the time
when KFC, McDonald's and Pizza Hut were dominating most of the chains. Many

of these brands grew to become giant franchises that dominate the Southeast Asia

region.

The key to success for these foreign chains was mainly due to the popularity of

Mumabi as tourist destination for these countries. Tourists are the strongest

"buzzer." Usually after they went back from vacationing in Mumbai, they told

friends and families about new things in Mumbai, including new shopping malls,

new boutiques, new restaurants, and new fast food joints. The fascination of Asian

tourists coming to Mumbai has positioned the city itself as an aspiration to modern

life in the region.

Trends in Food Service Retail

According to government surveys, Mumbai's spending on "eating out" is

continuing to increase. Spending on cooked food as a percentage of total average

food-spend reached 55% in 1998. The growth in spending in the food service

sector arises from a number of factors:

 Increased affluence amongst Mumbaians, especially those under the age of

40 years.

 Increases in the number of expatriate residents, which has more than

doubled since 1988.

  Increased convenience-seeking amongst younger Mumbaians who live in a

hectic city today compared to the much slower pace of life that existed 20

years ago.

When they want convenient cooked food, Mumbaians have long turned to the local

hawker stalls, rather than prepared ready-to-cook or ready-to-eat processed

convenience foods. As the numbers and variety of food service outlets has

increased in Mumbai, locals have adopted the convenient products of other food

service outlets, especially the fast food outlets, as alternative sources of convenient

cooked food. Younger middle and upper income group families and individuals are

also frequent users of the full service restaurants, modern-style coffee shops and

cafés that now exist all across Mumbai.

Over the past 5 years, there has been a general upgrading in the food service sector

which has seen the establishment of more air conditioned food centers (food

courts) that are considerably cleaner than the traditional hawker markets. At the

same time, increased investment from foreign and local businesses in the sector has

also produced an increase in the numbers of:

 Foreign chains, including chains such as Outback Steakhouse.

 Modern retail bakery/café outlets such as Bread Talk.

 Modern coffee shops such as Starbucks.

Competition and Buying Patterns

The competition in this arena is the fiercest in all other metropolitan areas in SE

Asia. Mumbai is a compact city, but has a lot to offer. Usually there is a minimum

of two of the same outlets within a radius of less than 300 meters. For instance,

Bread Talk opens one outlet inside the Ngee Ann City Shopping Centre and

another just across the street inside the Far East Plaza Shopping Centre. It is quite

common for retailers to implement this kind of strategy, due to the high volume of

people strolling around the main area of Orchard Road.

Another reason is because many retailers do not want to lose sales opportunity, as

the competitors are offering substitutions and similar product categories. This

phenomenon has made Mumbai the best place to shop. If you just missed Häagen

Dazs waffle at CK Tang Shopping Mall, there is another Häagen Dazs across the

street at the new Paragon Shopping Centre.

Main Competitors

Our main competitors in this segment are any food outlets within the 300-meter

radius. In our location, there are Pizza Walker, Starbucks, and Rotiboy.

Pizza Walker

Pizza Walker is a joint venture positioned as gourmet pizza joint in Mumbai. Most
of its retail outlets are decorated with welcoming ambience, such as flowers and

see-through kitchens. Pizza Walker is a good place to hang out, and the place is

always full during lunch hour. It has more than enough tables to serve a maximum

of 55 guests. Its specialty is all-you-can-eat pizza!

Starbucks

Starbucks' strategy entering the lunch market had made some impact in Mumbai.

Usually, a lunch menu in Mumbai consists of "fried and BBQ stuff" such as roast

pork with rice or the Big Mac. Starbucks is one of the first food retailers that

popularized "light and healthy" alternatives such as salad or lean sandwich as an

option for Mumbai's lunch accommodations.

Rotiboy

A Malaysian franchise. Rotiboy is quite popular in the region as it is now

expanding into several cities. Rotiboy offers simplicity for quick lunch franchiser,

and often considered alternatives for its long queueing rivals.

Foreign Vs. Local Franchising

Around 40% of the franchises operating in Mumbai are foreign. Homegrown

franchises are still in their maturing stages as they start to expand globally.

Franchises from the India account for 65% of foreign brands, with big players such

as KFC, Starbucks, Pizza Hut, etc. Due to high capital investment, Mumbai
conglomerates tend to dominate the industry.

Homegrown franchises are more often sought more by young entrepreneurs than

are their Western counterparts, as they offer greater flexibility and lower franchise

fees to operate. Unlike Western license holders, homegrown franchises are more

efficient in the overall supply chain management as the basic raw ingredients are

commonly found anywhere in the region.

Strategy and Implementation Summary

At first, we will open one outlet inside the New Paragon Shopping Centre. This

will become our "market testing area," and as we go further, Freshin Fries is

planning to open another in nearby shopping malls. In attracting customers to try

our fries, we will provide a see-through kitchen, so that people will see how we are

committed to freshness in our products.

The kitchen will also let out an aroma of our freshly fried fries into the

surroundings area, so that people will come and try our products.

Competitive Edge

 Our unique dipping sauces blend local taste and international into one fusion

recipe for the signature sauce.

 Enthusiastic and friendly staff

  Supporting merchandise items that support company's brand building.

 Our fries are made of 100% fresh potatoes, unlike the frozen fries used by

competitors.

 Innovative packaging will position us at the same level with foreign fast

food franchises.

Pricing Strategy

Our pricing strategy is positioned as "generic", meaning that Rs.300 is the average

consumer spending for a snack or light lunch in Mumbai. Leveraging the volume

of fries, Soda, and signature style sauces to be sold, we are serving the majority of

Mumbaians.

Brand Challenges

Freshin Fries must establish a distinct brand to stand out from the other Western-

style fast food competitors.

 Our logo is distinct as fresh, energetic and playful with color elements that

are eye catching.

 Product names are geared toward the target market (teens), with items such

as "Frenzy Freshin" and "Uber Freshin" which are fun and easy to

remember.
Marketing Programs

We will deploy three different marketing tactics to increase customer awareness of

Freshin Fries. Our most important tactic will be "word-of-mouth" and in-store

marketing. This will be by far the cheapest and most effective of our marketing

programs because of the high traffic in targeted shopping locations.

The second tactic will be local store marketing. These will be low-budget plans

that will provide community support and awareness of our facility. The last

marketing effort will be utilizing local media. Although, this will be the most

costly, this tactic will be used sparingly as a supplement where necessary.

In-Store Marketing

 In-store brochures containing our concept and philosophy.

 Wall posters.

 Design concept.

 In-store viewing of making fries process from cutting to frying.

 Standing signage inside malls’ lobby/aisle.

 Outdoor signage (if possible).

 Grand opening promotion.

 Party catering.

 Merchandising items.
Local Store Marketing

 Brochures.

 Free occasional t-shirts at local stores events.

Local Media

 Direct mail piece – containing brochures sent to surrounding addresses.

 Web page – containing company philosophy, history and news.

 Local magazines that target our core customers, such as Free! Magazine.

 Newspaper campaign – placing several large ads throughout the month to

explain

Positioning Statement

Our main focus in marketing will be to increase customer awareness in the

surrounding community. We will direct all of our tactics and programs toward the

goal of explaining who we are and what we are all about. We will price our

products fairly, keep our standards high, and execute the concept so that “word-of-

mouth” will be our main marketing force.

Sales Forecast

We anticipate the highest peak on the months of November and December in our

sales forecast, due to the holiday seasons. In November, there is Ramadan, and for
non-Muslims, it means vacation time Then in December, we anticipate more

tourists coming into Mumbai; this explains the jumped of sales in these last two

months of the year.

Strategic Alliances

Our business requires a long relationship with raw suppliers as well as partner

vendors. In Chinese, this relationship is called "guanxi," meaning business

bonding. We already have a long and good standing relationship with Company V

in our previous ventures. For Company Y, Mr. Joe Shmo, the managing director, is

a prominent figure in the society and we hope to strengthen further our business

relationship with him and the company.

Web Plan Summary

The website will, of course, show visitors everything about food culture, including

the history of french fries over time. To make the website interactive, Freshin Fries

will offer gift cards and promotions via the Internet, so our visitors can print the

promotional coupon in PDF format and bring it when they visit Freshin Fries.

Visitors can also download Freshin Fries' theme song as ring tones, or order potato

cutters for delivery.

Besides the traditional formats of customer service hotline and in-store form,

customers can now write their comments and suggestions on our website, which
will be directed to one of our staff.

So, the website itself will act as the medium between our company and our

audience.

In the future, our website will show information on franchising/licensing our brand

name.

Website Marketing Strategy

We will leverage the visibility of our shopping mall's website by getting them to

include a link to ours. We will also post banners on an official Mumbai tourism

website.

Development Requirements

To adequately serve our audience, the front-end strategy of our website should be

parallel with our corporate color. The front-end design of our website will be

entirely trusted to Mr. Guy Fry.

The diversity of founders' background in our company has enabled a cost efficient

development in our venture. As Mr. Harry Hip and Mr. Carl Cone are experts in

Information Technology, the back end of our website will be developed by these

gentlemen.
Management Summary

The initial management team depends on the founders themselves, with little back

up. As we grow, we will take on additional help in certain key areas. Part of our

basic philosophy will be able to run our executive management as a "knowledge

sharing" fellowship. We will not add additional overhead until absolutely

necessary. This will mean that the initial staff support team will have to work

extra. By doing this, we will keep our overhead as low as possible, allowing us to

adequately staff our outlets. This will also allow us and future business partners to

recoup investments as quickly as possible and enjoy a higher return.

At present time, Freshin Fries is owned by its four founders. Others that have

helped on the development of this business venture will be offered an opportunity

to grow together with the company at the appropriate time, and when the time

comes, the four founders’ share will be consolidated as one entity.

Management Team

Freshin Fries is currently the creative idea of its four founders. As the company is

small in nature, it only requires a simple organizational structure. Implementation

of this organization form calls for all four individuals to make all major

management decisions in addition to monitoring all other business activities.

As we expand into multiple locations, each location will have a primary site
manager.

Organizational Structure

Future organizational structure will include a director 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. David Lu will be responsible for accounting and business

development of Freshin Fries, helped by Mr. Harry Hip, 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.

Financial Assessment

The company is now privately held by Harry Hip, Guy Fry, Carl Cone, and Sam

Sauce. Future shares will be offered after two consecutive years of operating in

Mumbai.
TECHNICAL ANALYSIS
Start-up

Requirements

Start-up Expenses
Kitchen and Fixtures Rs21,600
Furniture and Interior Rs16,500
Legal Rs3,000
Rent Rs15,000
Packaging and Stationary Rs8,500
Contingencies Rs4,200
Total Start-up Expenses Rs68,800

Start-up Assets
Cash Required Rs50,000
Other Current Assets Rs0
Long-term Assets Rs0
Total Assets Rs50,000

Total Requirements Rs118,800

Table 1.1

Swot Analysis

Break Even Analysis

Table 1.2: Break-even Analysis

Break-even Analysis

Monthly Units Break-even 9,706

Monthly Revenue Break-even Rs32,104

Assumptions:

Average Per-Unit Revenue Rs3.31

Average Per-Unit Variable Cost Rs0.73
Estimated Monthly Fixed Cost Rs24,979

Projected Profit and Loss

As the Profit and Loss shows, Freshin Fries will run at a loss for the first two years, using up some of
the cash reserves initially invested by the founders. As sales increase, we will expand into new
locations to aggressively spread brand recognition. This increase in visibility will allow us to take up
less expensive locations while maintaining our flagship operation, the first store, in a prime spot.
Chart: Profit Monthly

Chart: Profit Yearly

Pro Forma Profit and Loss
Year 1 Year 2 Year 3
Sales Rs279,163 Rs558,327 Rs1,116,654
Direct Cost of Sales Rs61,957 Rs123,914 Rs247,827
Other Costs of Sales Rs0 Rs0 Rs0
Total Cost of Sales Rs61,957 Rs123,914 Rs247,827

Gross Margin Rs217,207 Rs434,413 Rs868,826

Gross Margin % 77.81% 77.81% 77.81%

Expenses
Payroll Rs88,200 Rs262,000 Rs449,600
Marketing/Promotion Rs10,000 Rs10,000 Rs10,000
Depreciation Rs0 Rs0 Rs0
Rent Rs174,000 Rs248,000 Rs298,000
Utilities Rs2,550 Rs5,000 Rs8,000
New location setup Rs25,000 Rs50,000 Rs50,000

Total Operating Expenses Rs299,750 Rs575,000 Rs815,600

Profit Before Interest and Taxes (Rs82,543) (Rs140,587) Rs53,226

EBITDA (Rs82,543) (Rs140,587) Rs53,226
Interest Expense Rs0 Rs0 Rs0
Taxes Incurred Rs0 Rs0 Rs0

Net Profit (Rs82,543) (Rs140,587) Rs53,226

Net Profit/Sales -29.57% -25.18% 4.77%

Projected Cash Flow

The following chart and table show the Projected Cash Flow for Freshin Fries.
 4 Ps of marketing

The 4 Ps of marketing — you’ve probably heard about them from a

friend, a textbook, or even at school.

I know it sounds like a boring topic that’s common sense, but there is
more to it than meets the eye.

And no, it’s not just for large companies. The smaller you are, the
more important for you it is to leverage the 4 Ps of marketing.

So before we dive into it, let’s first break down what they are…

What Are The 4 Ps of Marketing?

The 4 Ps of marketing is a marketing is a concept that summarizes the
four basic pillars of any marketing strategy.

The four Ps of marketing are:

 Product:
What you sell. Could be a physical good, services,
consulting, etc.

 Price:
How much do you charge and how does that impact how
your customers view your brand?

 Place:
Where do you promote your product or service? Where do
your ideal customers go to find information about your industry?

 Promotion:
How do your customers find out about you? What
strategies do you use, and are they effective?
 Target Market

A target market is a group of people that have been identified as the most
likely potential customers for a product because of their shared
characteristics such as age, income, and lifestyle.

Identifying the target market is a key part of the decision-making process

when a company designs, packages, and advertises its product.

A new product must satisfy a need or solve a problem, or both. That need or
problem is probably not universal unless it reaches the level of indoor
plumbing. More likely, it is needed by a subset of consumers, such as
environmentally-conscious vegetarians, or science nerds, or outdoor
enthusiasts. It may appeal to a teenager or a middle-aged professional, a
bargain-hunter or a snob.

Envisioning your likely target market is part of the process of creating and
refining a product, and informs decisions about its packaging, marketing, and
placement.

What Are the 4 Target Markets?

Marketing professionals divide consumers into four major segments:

Demographic: These are the main characteristics that define your target
market. Everyone can be identified as belonging to a specific age group,
income level, gender, occupation, and education level.
Geographic: This segment is increasingly relevant in the era of globalization.
Regional preferences need to be taken into account.

Psychographic: This segment goes beyond the basics of demographics to

consider lifestyle, attitudes, interests, and values.

Behavioral: This is the one segment that relies on research into the
decisions of a company's current customers. New products may be
introduced based on research into the proven appeal of past products.1

What Is an Example of a Target Market?

Each of the four target markets can be used to consider who the customer for
a new product is.

For example, there are an estimated 100,000 Italian restaurants in the U.S.
Clearly, they have enormous appeal.

But a corner pizza joint might appeal mostly, although by no means entirely,
to a younger and more budget-conscious consumer, while an old-fashioned
white tablecloth place might be dominated by older folks and families who live
in the neighborhood. Meanwhile, a newer place down the street might cater
to an upscale and trend-conscious crowd who will travel a good distance for
the restaurant's innovative menu and fancy wine list.

In each successful case, a savvy business person has consciously

considered the ideal target market for the restaurant and has tweaked the
menu, decor, and advertising strategy to appeal to that market.

Why Are Target Markets Important?

Few products today are designed to appeal to absolutely everyone. The
Aveda Rosemary Mint Bath Bar, available for $23 a bar at Aveda beauty
stores, is marketed to the upscale and eco-conscious woman who will pay
extra for quality.3 Cle de Peau Beaute Synactif Soap retails for $110 a bar
and is marketed to wealthy, fashion-conscious women who are willing to pay
a premium for a luxury product.4 An eight-pack of Dial soap costs under $5
on Amazon, and it is known to get the job done.5

Part of the success of selling a good or service is knowing to whom it will

appeal and who will ultimately buy it. Its user base can grow over time
through additional marketing, advertising, and word of mouth.

That's why businesses spend a lot of time and money in defining their initial
target markets, and why they follow through with special offers, social media
campaigns, and specialized advertising.

What Are Market Segments?

Dividing a target market into segments means grouping the population
according to the key characteristics that drive their spending decisions. Some
of these are gender, age, income level, race, education level, religion, marital
status, and geographic location.

Consumers with the same demographics tend to value the same products
and services, which is why narrowing down the segments is one of the most
important factors in determining target markets.

For example, people who fall into a higher income bracket may be more likely
to buy specialty coffee from Starbucks instead of Dunkin' Donuts. The parent
companies of both of these brands need to know that in order to decide
where to locate their stores, where to stock their products, and where to
advertise their brand.
 SWOT ANALYSIS

SWOT stands for Strengths, Weaknesses, Opportunities, and Threats, and so a

SWOT analysis is a technique for assessing these four aspects of your business.
SWOT Analysis is a tool that can help you to analyze what your company does
best now, and to devise a successful strategy for the future. SWOT can also
uncover areas of the business that are holding you back, or that your competitors
could exploit if you don't protect yourself.
A SWOT analysis examines both internal and external factors – that is, what's
going on inside and outside your organization. So some of these factors will be
within your control and some will not. In either case, the wisest action you can
take in response will become clearer once you've discovered, recorded and
analyzed as many factors as you can.
In this article, video and infographic, we explore how to carry out a SWOT
analysis, and how to put your findings into action. We also include a worked
example and a template to help you get started on a SWOT analysis in your own
workplace.
Why Is SWOT Analysis Important?
SWOT Analysis can help you to challenge risky assumptions and to uncover
dangerous blindspots about your organization's performance. If you use it carefully
and collaboratively, it can deliver new insights on where your business currently is,
and help you to develop exactly the right strategy for any situation.
For example, you may be well aware of some of your organization's strengths, but
until you record them alongside weaknesses and threats you might not realize how
unreliable those strengths actually are.
Equally, you likely have reasonable concerns about some of your business
weaknesses but, by going through the analysis systematically, you could find an
opportunity, previously overlooked, that could more than compensate.
How to Write a SWOT Analysis
SWOT analysis involves making lists – but so much more, too! When you begin to
write one list (say, Strengths), the thought process and research that you'll go
through will prompt ideas for the other lists (Weaknesses, Opportunities or
Threats). And if you compare these lists side by side, you will likely notice
connections and contradictions, which you'll want to highlight and explore.
You'll find yourself moving back and forth between your lists frequently. So, make
the task easier and more effective by arranging your four lists together in one view.
Draw up a SWOT Analysis matrix, or use our free downloadable template.
A SWOT matrix is a 2x2 grid, with one square for each of the four aspects of
SWOT. (Figure 1 shows what it should look like.) Each section is headed by some
questions to get your thinking
 BIBLIOGRAPHY

Adams, B., 1996. Streetwise, Small Business Start up: Your comprehensive
guide to starting and managing a business. Avon: Adams Media.

Andrews, 2007. Introduction to Tourism and Hospitality Management. New Delhi,

McGraw Hill.

Axsater, S., 2006. Inventory Control. New York: Springer.

Bplans Com., 2010. Business plans for beauty and hair salon. Web.

Burtler, D., 2006. Enterprise planning and development: Small business Start up
survival. Burlington: Elsvier.

Charles, G., 2003. Financing the Small Business. Avon: A streetwise Publication.