INDEX

S.No Topic Page1 Introduction 22 Executive Summary 2-33 Organizational Hierarchy 44 Marketing Objective 5-65 Market Analysis 76 Market Strategy And marketing Mix 8-97 Sales strategy 10-128 Innovative Marketing Strategy 139 Break Even 1410 Financial Analysis 15-1911. Economic Feasibility 2012 Summary 21

INTRODUCTION

BUSINESS PLAN: (FOOD COURT)

WE ARE PLANNING TO SET UP A FOODCOURT IN BANGALORE CITY WHICH OFFERS DEEP ASSORTMENT OF TRADITIONAL VARIETY OF CUISINES AVAILABLE IN VARIOUS PARTS OF COUNTRY UNDER ONE ROOF.

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

BIRD OF GOLD report by McKinsey Global Institute Indian middle class household will swell from 50million to 583 million by 2025.Implies household have more disposable income and shift towards discretion spending.

As per CII estimate 2009 because of increase of rising per capital income Food 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 concept of serving variety of regional tastes under one roof. This place will provide a traditional taste and traditional environment means ambience of particular food court will resemble to that of the place from which it belongs, e.g. (Punjab with vibrant surrounding representing euphoria feeling, Kerala with majestic and natural beauty of beaches and high tech global standard facilities). It’s a unique combination in its own concept. After enough market research, we have found that people miss food from their native places. They want a place where they can enjoy their native place food. The food court is all about catering to need of these types of customers. We will acquire half acre of land strategically located to be easily accessible for the customers residing in Bangalore.

Total estimated cost of land is around Rs. 2.5 Crores (at Rs. 1150/- per Sq. Ft.).Construction Cost Rs. 2 Crores which utilizes 10000Sq. Ft. of area (at Rs 2000per sq Ft.) .Remaining space would be used properly to present landscape beauty and to engage children for entertainment. Initial project cost would be Rs 5 Crore. 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 per month .The loan would be repaid over five year’s 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 various managerial positions.

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

various positions which include from sweeper, to clean boy, to cook, 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 for service.

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:

To provide integrated food management support and solutions for our partners … So that every customer gets highest level of food quality & outstanding service in a hygienic & fun dining environment

MARKETING OBJECTIVE

To achieve annual growth sale of 25%on yearly basis. To form strategic Alliance with, Haldiram because we are sensitive to

diverse need of customer. To become Market leader in Bangalore.

SWOT ANALYSIS:

STRENGTH Location: - Our food court will be placed in such an area which can

be easily accessible from all part of city. Experienced staff: - Our hired expertise staff helps us in providing

quality food service to our customer. Ambience of place: - The feeling of being in their native place while

dinning is itself a pleasure experience which gives us an advantage over others.

WEAKNESS

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

Financing: - Preliminary estimates of sales and expenditures suggest that it will remain financially stable. However unforeseen expenditure or poor sales will threaten cash position, which will be particularly vulnerable in one year.

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

Opportunities:-

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

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

THREATS

Local Competition (existing and potential): There are firms which specialize in this concept of food court. Also local players are a threat to our business since they are also competing for the same market share.

Economic downturn: The strong domestic economy has been good for the Food and hospitality industry. Continued growth is anticipated. however, unforeseen or unanticipated economic recession would reduce 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 25-40 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 services under one roof.

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 the parameters like food quality, ambiance, taste, location,

and price.

Mast kalandar Woody’s Shanti Sagar A2BFood Quality 4 3 2 3.5Price 2.5 3 3 3.5Ambience 3.5 3 1 3Service 3 2.5 2.5 3Location 3 3 2.5 2.5Customer Relation Program

0 0 0 0

Doddaballapur road, near IT park

MARKETING STRATEGY AND MARKETING MIX

PRODUCT MIX

Product: We offer deep assortment of traditional food from different Regions of country under one roof .We will offer global standard services and rich ambience.

PRICING STRATEGIES:

Price: We will be using VALUE PRICING STRATEGY offering just right combination 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., we will offer special Flavor Thali meal at reduce price.

FLAVOUR OF INDIA 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 its customers! The brands may be as follows:

Price:

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

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

Promotion: We will be using Integrated Marketing Communication which will help 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 income is increasing and more shift is toward discretion spending. Thus offering great opportunity to promote our concept to target audience. We will be giving important consideration for spending on promotional budget.

Objective of Promotion: To ensure awareness, knowledge about the food court concept to target

customer. Next stage is to use promotional strategies to develop liking, preference

and 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 be Using Buzz Marketing (attracting opinion leaders) and word of mouth

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

magazine). Participating in food fest and organizing food fest competition.

Using SUBLIMINAL advertisement strategy in cinema hall to develop awareness 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 court

and develop liking and preference for the place. With the application of data base management system tracking

customer purchase, frequency and preference to build customer loyalty program.

Positioning Message:Our positioning message from every channel of media vehicle is going to promote traditional Food with deep assortment and global standard service.

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

Budget: Budget would be Rs 19.2lac 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 DIRECT MARKETING using E-mail for better generation of revenue from Home 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 help us to build loyalty program with profitable customer.

We will be using Microsoft latest surface technology computers with which customer will just have to put menu on surface of computer and will get all information regarding cuisine of his liking .This will substitute waiter role and help in cost reduction. Not only this they can pay bill by using their credit/debit card just moving card over surface of item order that display on computer surface screen.

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

STRATEGIC ALLIANCE:1 Form strategic Alliance with Sweet Chariot, Haldiram.This would help 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 in busy place like railway station ,majestic bus stand, advertising about food court and help any consumer to download song free of cost, access tourist places in Bangalore, famous goods produce in Bangalore .one option on the site provide wealth of information about assortment of product available with food court.

3. Setting up web 2.0 website which offers advantage better than web 1.0website.Customer can interact with site, provide their feed back and write blog about their experience in food court. We can use this site to offer wealth of information about nutrient content of our products.

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

BREAK EVEN ANALYSIS

We plan to break even within a period of three years, though we plan to repay our loan 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 - 2009(All Figures in Rs)

Cash Account

Revenue      To Capital   10000000  To Loan from Bank   40000000  To Cash Sales   60000000  Total   110000000  Expenses      By land and Building     45000000By Purchase     18000000By Equipment     3800000Salary     9000000Electricity     4000000Insurance     500000Consultancy Fee     100000Stationary     50000Legal     10000Other Expense     440000By Interest     4800000By Tax     5984748By Repayment of Loan     5877292By Advertisement     1920000By Balance     10417960Total     110000000

Profit and Loss Account

To Depreciation   2000000To other Expense   15500000To purchase   18000000To Interest   4800000To Advertisement   1920000To tax   5984748To Net Profit   11795252Total   60000000By Sales 60000000  Total 60000000  

Balance sheet

Liability    To Capital   10000000Loan 40000000  Loan Repaid 5877292  Loan to be Paid   34122708Profit   11795252Total   55917960Asset    Land 25000000  Building after Depreciation 18000000  Cash 10417960  Equipment 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     60000000  Tax     -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 39322708Net Cash       10417960

Year 2010 (All Figures in Rs)

Cash Account

Revenue      To Balance   10417960  To Cash Sales   72000000  Total   82417960  Expenses      By Purchase     22000000Salary     10468000Electricity     5184000Insurance     450000Consultancy Fee     108800Stationary     54000Other Expense     475200By Repayment of Loan     7158567By Interest     3518725By Tax     12661723By Advertisement     1920000By Balance     18418945Total     82417960

Profit and Loss Account

To Depreciation   2000000To other Expense   16740000To purchase   22000000To Interest   3518725To Advertisement   1920000To tax   12661723To Net Profit   249954804Total   83795252By 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     25000000Building after Depreciation     16000000Cash     18418945Equipment     2500000Total     61918945

ECONOMIC FEASIBILITY

1Start up cost of acquiring land and building food court is Rs 4.5 crore including 2.5 crore&2crore respectively. As we are introducing new concept of food court in Bangalore for the first time and our plan is to offer 20 different food sections presenting different state rich food culture. So this is the reason why we have acquired half acre land and built 10000sq ft. area to provide world class services to customers and for rest of the space we have planned to maintain beautiful landscape to provide ambience and delight to customers. This scale up project of running 20 different food court and strategic alliance partners. We will be expecting 1000 customer per day from first month of our project. In addition we will 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 our first pilot plan .After successful implementation of plan we will be coming up with large 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 40 assistant workers to cook, and 50 other helper boys for cleaning and taking order and for service. The salary expenses of staff and managers would be Rs 9 lacs per month. The staff number is on higher side because we have to offer deep assortment of product every day to our customers and provide them with world class services. That is our main value proposition. As our revenue increases we can hire more staff depending on concept of Marginal Revenue per employee contribution.

3. We have budget of Rs19.2 lacs per year on advertisement and promotion because our concept is new in the market. So success of the plan would depend on how fast effective promotion campaign will pull crowd to food court location. We also have recruited marketing head to ensure successful implementation of plan that is to pull more than 1000 customer to food court on per day basis and more than 500 home delivery or corporate order from first month of operation.

SUMMARY

We have introduce novel concept of offering deep assortment of traditional food 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 of country. As we are spending Rs 2000 per Sqft. On constructing food court complex to offer our customer ambience. We will be implementing many new market strategies to break through the clutter and emerge as leading player in fast food chain in Bangalore. We have done full proof analysis of financial status. We have plan to breakeven in three years. After successful implementation of our first pilot project in Bangalore .we will be starting our project in other metro of country. We will also scale up our project in Bangalore food court by utilizing unbuilt area for establishing Gaming center for children, Spa, ultra modern fitness center.