business plan on pizza corner

7/26/2019 Business Plan on Pizza Corner

1/24

Business Plan: Fetch Pizza Corner

Page | 1

FetchPizza Corner

(Redefining Satisfaction)

Prepared ForRumana ParveenSenior LecturerDept. of Business AdministrationEast West University

Dhaka

Prepared byMd.Anisur RahmanID: 2006-1-10-112

Date of Submission: Monday, 15thDecember 2008


2/24


Page | 2

EAST WEST UNIVERSITY

LETTER OF SUBMISSION

15thDecember, 2008

Rumana ParveenSenior LecturerDept. of Business AdministrationEast West University

Dear Madam,

I am writing this letter to inform you that I have prepared aBusiness Plan. The plan consists of the overview of a new business.I tried to gather information to make it specific and coherent.Through the process of preparing the plan, I managed to get some

practical experiences.

I have tried my best to make the plan as reflective as possible.Assertively, Business Plan will meet the expectations. I amdetermined to provide any further information or clarification, ifnecessary.

Thank you.

Sincerely Yours

_______________________(Md. Anisur Rahman)ID: 2006-1-10-112


3/24


Page | 3

Table of Contents

Acknowledgment............................................................................................................................................. 4

Executive Summary........................................................................................................................................ 5

Mission & Vision............................................................................................................................................... 6

Vision......................................................... .............................................................. ............................................. 6

Vision of Fetch Pizza Corner........................................................................................................................ 7

Keys to Success................................................................................................................................................ 7

Management.............................................................. ................................................................. ....................... 8

Investors & Their Proportions.............................................................. ....................................................... 8

Organization Structure.................................................................................................................................. 9

Market Analysis: The Overall Market Services.................................................................................... 10

Market Analysis Summary................................................................................................................ .......... 10

Market Analysis.............................................................................................................................................. 11

Market Analysis (PIE)........................................................ ................................................................. .......... 12

Market Segments..................................................... ................................................................. ..................... 12

SWOT Analysis................................................................................................................................................ 13

Four Areas of Analysis....................................................... ................................................................. .......... 14

Key Competitive Strengths......................................................... ................................................................ 14

Key Competitive Weaknesses.................................................................................................................... 15

Opportunities............................................................. ................................................................. ..................... 15

Threats & Risks......................................................... ................................................................. ..................... 15

Product Strategies.............................................................. ................................................................. .......... 16

Pricing Strategies........................................................................................................................................... 16

Promotion Strategies......................................................... ................................................................. .......... 16

Place................................................................................................................................................................... 17

Marketing Strategy....................................................................................................................................... 17

Web Plan Strategy.............................................................. ................................................................. .......... 18

Website Marketing Strategy.................................................................................................................... .. 18

Development Requirements...................................................................................................................... 18

Target Market Segment Strategy........................................................ ..................................................... 19

Competition and Buying Patterns................................................................. ........................................... 19

Process of Servicing........................................................... ................................................................. .......... 20

Employee.......................................................... ................................................................. ................................ 20

Physical Evidence..................................................... ................................................................. ..................... 20

Human Resource Planning......................................................................................................................... 20

Job Analysis..................................................................................................................................................... 21

Job Description......................................................... ................................................................. ..................... 21

Job Requirements............................................................... ................................................................. .......... 21


4/24


Page | 4

Acknowledgment

Preparing term paper is really a complex task. It requiresenormous time & attention in every step of it. But it gave me atrue feeling of creation & helped me to understand my ability towork.

I am grateful to our course instructor Rumana Parveen for

giving us the opportunity to become a proud student of hercourse.

I am highly indebt to our course instructor for her properguidance & providing me with the information regarding thebusiness plan.

Finally, I want to thank the almighty Allah for keeping me

fully free from any disaster.


5/24


Page | 5

Executive Summary

Fetch Pizza Corner is a new player in the restaurantindustry. The restaurant is in a comfortable, familiar, large citythat has a strong need for additional dining options. Bolsteredby the need for more choices in family-oriented diningexperiences, combined with the option for home-delivery, the

restaurant is positioned to take advantage of the market needand serve the families in the Baily Road area.

The population is rapidly growing with new subdivisionsand young families moving to the Baily Road area. It is FetchPizza Corners strategy to exploit the first-mover opportunityand establish itself as the preferred pizza provider to the area. I

believe a locally-owned restaurant is the best option to servethe rapidly growing population with a fresh, unique menu asopposed to a national chain franchise.

This business plan calls for an exciting, profitable start-upyear ahead with future forecasted growth as I meet thedemands of the community. In all, this plan describes a healthy

company with good growth prospects, looking to manage itsorderly growth in the near future.


6/24


Page | 6

Mission & Vision

Mission

Fetch Pizza Corner creates a friendly and pleasant atmospherefor customers in a well-designed and productive environment inwhich people can work happily. We are sensitive to the look andtaste of good pizza as well as to the high-quality ingredients. Welook to provide the best possible value to our customers who desire

great tasting pizza and to provide customers with the satisfaction ofreceiving a great value, both tangibly and intangibly. Additionally,we are the first home-deliverer of pizzas in our area.

Our customers are our neighbors as we are residents of ourmarket area. We will also create and nurture a healthy, creative,respectful, and fun working environment, in which our employeesare fairly compensated and encouraged to respect the customerand the quality of the product we produce. We seek fair profit, just

enough to keep the company financially healthy for the long runand to fairly compensate owners and investors for their investmentand risk.

Vision

Vision Statement

Our vision is to run a profitable business by providing bestquality pizzas and aesthetician services in a caring, upscale,professional environment.


7/24


Page | 7

Vision of Fetch Pizza Corner

Customers firstProfessionalRespect each otherWork as one team

Committed to continuous improvement

Keys to Success

The keys to success in this business are:

Delivering the customer value proposition.Marketing: promoting a new company, product, and

delivery channels to a rural community.Product quality and consistency.Pricing effectively with respect to the project quality and

customer value proposition.Family-oriented atmosphere with occasional nights of

family entertainment.Management: products delivered on time, costs controlled,

marketing budgets managed. There is a temptation tofixate on growth at the expense of profits.

Reporting and controls in place for inventory andfinancials.


8/24


Page | 8

Management

Management Team & Responsibilities

The management team will comprise of four personnel.They are:

Managing Director: Managing director will look after thehuman resource and marketing sector. Apart from thisarea, he will also always monitor overall day-to-dayactivity in a summarized form, from the regional head.

Regional Head: Regional head will see how accountants,service Managers & other employees are doing in theirperspective areas.

Service Manager: Service managers will be accountablefor the service quality provided by the therapist andtrainee.

Accounts Manager: Accounts manager will beaccountable for account related matter of the business.

Investors & Their Proportions

Md. Anisur Rahman is the sole investor.


9/24


Page | 9

Organization Structure

Managing Director: Md. Anisur Rahman Regional Head (Dhaka):Rashedur Rahman Regional Head (Chittagong):Tasmim Mushtaq Morshed Accounts Manager (Dhaka): Sharif-ul Hasan Accounts Manager (Chittagong):Mohammad Azim Service Manager (Dhaka):Siam Sajid Service Manager (Chittagong): Monjurul Ahsan


10/24


Page | 10

Market Analysis: The Overall MarketServices

Fetch Pizza Corner offers high quality pizza to a growingcommunity that currently has limited availability of restaurantsand no availability to delivery. At start up we will be open fordinner 4 p.m. to 10 p.m. Sunday - Thursday and 3 p.m. to 11p.m. Friday and Saturday. We will consider opening earlier andserving lunch if there is a demand, and if forecast and financialanalysis can justify the increased costs.

Our menu will include 4 sizes of pizzas with variouscombinations of toppings. Predefined, high-margin pizzas willbe highlighted on the menu. Additionally, breadsticks, softdrinks will be included in the initial menu offerings.

Market Analysis Summary

Our primary target market is people who desire acomfortable, family-oriented environment for dine-in pizza. Oursecondary target market also desires a delivery service forpizza, or a take-out approach. There is overlap of thesesegments.

Baily Road and its surrounding communities are a growingmiddle-class area with nearly 2 million residents. A majority ofthese residents are families of four or more. The boom in thearea is primarily in response to an exodus of families movingout of the over-populated areas and into a more rural setting.

According to a Growth Plan conducted in 2005, populationwithin Baily Road is expected to increase. However, the

number of persons per household is expected to decline,


11/24


Page | 11

meaning the need for additional housing in Baily Road willcontinue to grow. From the same plan, population is listed asbeing evenly distributed by age groupings, with approximately

33% of the population being minors. Another 40% are lessthan 54 years of age, indicating a major concentration of theBaily Road population being families. The report forecasts therebeing nearly 4,500 households in the Baily Road by 2005. Thisis driving the need for more quality, family-orientedrestaurants.

Additionally, Baily Road residents frequently visit thebuilding in which fetch Pizza Corner is located. Tanning and

video rental businesses are next to the restaurant, so we areproviding a new convenience for families to select a movie andpick up a pizza.

With the expected continued growth in the area,estimated at 7% annually, opportunities to serve Baily Roadand its surrounding communities will increase. The companywill sell predominantly to individuals, but it will also accept

some catering jobs to individual parties, schools, and companyfunctions in the Baily Road area.

Market Analysis

PotentialCustomers Growth 2008 2009 2010 2011 2012 CAGR

Dine-In orTake-Out

7% 13,860 14,830 15,868 16,979 18,168 7%

Delivery 7% 5,000 5,350 5,725 6,126 6,555 7 %

Total 7% 18,860 20,180 21,593 23,105 24,723 7%


12/24


Page | 12

Market Analysis (PIE)

Market Segments

To promote our product we analysis the market anddivided the market into some segments based on geographic,demographic, psychographic, and behavioral variables. Wedivided Bangladesh into three regions: Dhaka, Chittagong andSylhet. People lived in these regions includes child, teenagerand old people. Their age is between 1 to 100 years. All thepeople do not required that service. So based on age we getother segments. Based on age we make three segments-bellow 25 years, between 25 to 59 years and more than 60years.


13/24


Page | 13

This table shows some information.

Zone Dhaka Chittagong Sylhet

Population 38987140 24119660 7896720

Year/Age 2005 2001 1991

Below 25 58.02% 57.82% 60.07%

25-59 35.96% 36.05% 34.51%

60+ 6.26% 6.13% 5.42%

(Source: Census of population & sample variance, 2005)

SWOT Analysis

SWOT Analysis is an effective method of identifying ourinternal and external environment summarized as ourstrengths, opportunities, weaknesses and threats and is the keyto business planning success.

Carrying out this in-depth analysis using the SWOTframework will show where we stand today with our businessand will highlight our internal strengths and weaknesses, theopportunities available to our business and the threats thatmay be coming our way.


14/24


Page | 14

Four Areas of Analysis

Our SWOT analysis will help us focus and build on ourstrengths, minimize weaknesses, maximize our opportunitiesand mitigate any weaknesses and is the foundation of anybusiness plan or marketing plan.

Strengths- internal analysis Weaknesses- internal analysis Opportunities- external analysis Threats- external analysis

Once this analysis is complete we will have to put variousactions plans together to focus on what will make our businessa success in the future.

Key Competitive Strengths

As our prime target is to provide best quality of pizza, wethink it is our main strength.

We will provide pizza to our customer at a low price. Ourprimary target is to provide best quality pizza in a lowprice.

Our location may be a good strength for us. As Baily roadis the place as most of the upper- middle and middle classpeople live nearby, we may find good response.


15/24


Page | 15

Key Competitive Weaknesses

As all the ingredients price are increasing day by day, wemay not be able to keep the same price; we may have toraise the price.

At the very beginning we will not be able to providevariety of pizzas.

As we will keep waiter, we are needed to pay handsomesalary.

We will be needed to spend a lot of money to buildawareness of the target customer.

As there are franchising fast food shops like Pizza Hutand KFC, it would be very tough to sustain in market.

Opportunities

We are providing best quality pizzas in a lower pricecompared to other well known pizza houses, so we willhave the advantage.

Our location is one of our opportunities as we will get thatmuch of customer as we target.

Now- a-days people dont have that much time to takelunch or dinner at home or in weekend. They love to dine

out, so its our opportunity.

Threats & Risks

First of all, franchisees like Pizza Hut and KFC are themain threats for our business.

As a new Fast Food shop, there will some obstacles to

connect with the customer. Pricing may be the factor to connect with the customer.


16/24


Page | 16

As we are providing pizzas at a lower price compared tothe others, people might think our quality will not be thesame with others.

As our primary location for the business is Baily road.Beside the place people who live there are from middleclass. They will not come at daily basis.

Product Strategies

Pizza is our main product. We will provide varieties of

pizzas to the customers. We will also provide breadstick anddrinks along with it.

Pricing Strategies

We are needed to charge affordable prices so that middle-class people can take our services. We will charge price of our

services in such a manner that it will be comfortable enough foran average target consumer.

Promotion Strategies

In the early stages of our journey, we will choose the printmedia, namely The Daily Star, Star Weekend magazine, star

forum, Brand forum, sports magazines etc, because print mediacovers a large portion of our target consumers and this kind ofmagazines will make a great impact in our business. To ourcorporate consumers we will use mobile messaging as apromotion tool.


17/24


Page | 17

Place

To fulfill demands of our target consumers, we will set up

four service centers, three within Dhaka metropolitan area:Baily Road, Gulshan-1 and Dhanmondi, and the other one inChittagong. The branch will be in Khulshi.

Marketing Strategy

To drive customers to Fetch Pizza Corner we will employseveral techniques outlined below.

Advertising in The Daily Star, Brand Forum Magazine,Prothom Alo, and Anondo Alo Magazine will be used to promotethe Grand Opening of Fetch Pizza corner. As part of theadvertising, a coupon will be available to customers.Intermittent newspaper advertisements will continue

throughout the year to promote upcoming events. Mostinitiatives will focus on the local Dhaka Based papers as thetarget of these papers is specifically the Baily Road residents.Additional marketing efforts will come in the form of on-boxcoupons for future purchases.

Additionally, family-oriented events will be hosted byFetch Pizza Corner to attract customers such as trivia nights,birthday parties, and prize giveaways. Frequent buyer cards willbe employed to entice repeat customers. Fetch Pizza Cornerwill also sponsor a local Little League cricket team, and aSoccer team to publicize the restaurant within the communityevents.

Future plans of working in coordination with the nearbyvideo store to offer "bundle savings" if both pizza and videorentals are purchased will be pursued within the second year of

operation.


18/24


Page | 18

Web Plan Strategy

Fetch Pizza Corner website will be the virtual businesscard and portfolio for the company, as well as its online"home." It will showcase the history, product information, andoffers for Fetch Pizza Corner. Special online-only offers will bemade available on the website, along with customer'sopportunity to sign-up for email news and offers.

Fetch Pizza Corner website needs to be a simple yet classyand well designed website that, at the same time, is in keeping

with the latest trends in user interface design. Customers willbe coming to the site for product information, history, andoffers.

Future elements of the site can contain online ordering, ifcustomers express an interest in this functionality.

Website Marketing Strategy

Our Internet marketing activities will be focused onproduct information and offers. Future opportunities exist inoffering online ordering.

Development Requirements

Fetch Pizza Corner website will be initially developed withfew technical resources. A simple hosting provider, Our LocalWeb services, will host the site and provide the technical backend. The owner's expertise in professional Web developmentwill lead this effort.

The user interface designer will work with a graphic artistto come up with the website logo, and the website graphics.


19/24


Page | 19

The maintenance of the site will be done by the owners. Ifthe website rolls out future development such as newslettersand online ordering, the internal staff at Fetch Pizza Corner will

design, implement, and execute the technology.

Target Market Segment Strategy

Including Baily Road and its surrounding areas, no pizzaestablishments exist. One or two unpopular fast food outletsserve pizzas at Baily Road, but not as a primary menu item.These pizza outlets are in taverns which are not conducive to

family-type atmosphere. No eating establishments in the BailyRoad area provide home-delivery service.

Competition and Buying Patterns

There is minimal competition for pizza in the Baily Roadarea, besides the bar establishments previously mentioned. The

closest locales for pizza to the Baily Road area Is Pizza Hut,but its not competing pizza locations deliver to the Baily Roadarea. Additionally, Fetch Pizza Corner would be the only family-oriented, non-smoking restaurant in Baily Road.

Sales Strategy

Baily Road area has expressed its need for additionalrestaurants, specifically a desire for pizza. Because of this,there is pent-up demand for pizza in this area. We will expect ahigh rate of sales growth within the first 3 months as thiscustomer desire is met.

For the next year, we continue to focus on a growingpresence in the community and advertising heavily throughout

the community.


20/24


Page | 20

Process of Servicing

Most importantly, this sort of service desires the perfect and

peaceful environment to be effective. Four of the mostessential feature of our environment is:

Nice, cold and calm room. Slow, divine music. Dim lights, candles and lamps. Great smell and fresh, clean and natural aroma fragrance.

Employee

We will provide the best employees who are also welltrained.

Physical Evidence

Our main target is our customer satisfaction. What kind ofmassage the customer needs, if we are to provide them withtheir needsat first, we will have to sort this out.

Human Resource Planning

First we will give advertisement into newspapers. Peoplewill apply for their position formally. Then we will call them forinterview. There they will be justified by their work &experience.


21/24


Page | 21

Job Analysis

Although it is a business firm, but we are not going to give

away the controls of our company to outside people, meansemployee. That is why we will take a number of employees,who will be only involved in service but not in core decisionmaking. As we will fill the managing director & other regionalposts, initially we will only appoint accountants and servicemanager.

Job Description

The Regional Head will be under direct supervision ofManaging Director. Other employees will be accountable to theService manager. Although service manager will control thetotal service quality of the centre but the accountants will beliable to regional head rather than service manager.

Job Requirements

In order to get job to our organization, employees musthave some requirements. These requirements are:

Employees must be smart to look at. Having work experience of minimum 2 years in any well-

known fast food shop

Fluent in both Bengali & English languages.Ability to control any moment at any time. For administrative level for the respective job all of them

should be graduated from own respective field of study


22/24


Page | 22

Projected Income Statement

Start-up

Requirements

Start-up Expenses

Professional Fees (Legal, Accounting, Consulting) $1,800

Placemats, Stationery, Business Cards $1,100

Renovation $8,300

Marketing $2,500

Rent $2,000

Expensed Equipment $5,000

Insurance $350

Website Development $1,000

Misc Expense $3,800

Total Start-up Expenses $25,850

Start-up AssetsCash Required $23,100

Start-up Inventory $6,000

Other Current Assets $5,250

Long-term Assets $20,300

Total Assets $54,650

Total Requirements $80,500


23/24


Page | 23

Start-up Funding

Start-up Expenses to Fund $25,850

Start-up Assets to Fund $54,650

Total Funding Required $80,500

Assets

Non-cash Assets from Start-up $31,550

Cash Requirements from Start-up $23,100

Additional Cash Raised $0

Cash Balance on Starting Date $23,100

Total Assets $54,650

Liabilities and Capital

Liabilities

Current Borrowing $0

Long-term Liabilities $25,000

Accounts Payable (Outstanding Bills) $9,500

Other Current Liabilities (interest-free) $0

Total Liabilities $34,500

Capital

Planned Investment

Investor 1 $15,000

Owners $30,000

Additional Investment Requirement $1,000

Total Planned Investment $46,000

Loss at Start-up (Start-up Expenses) ($25,850)

Total Capital $20,150

Total Capital and Liabilities $54,650

Total Funding $80,500


24/24


Projected Balance Sheet

Pro forma Balance SheetASSETS FY 2005 FY 2006 FY 2007

Current Assets

Cash $46,670 $68,884 $98,698

Inventory $1,720 $1,806 $1,896

Other Current Assets $5,250 $5,250 $5,250

Total Current Assets $53,640 $75,940 $105,844

Long-term AssetsLong-term Assets $20,300 $20,300 $20,300

Accumulated Depreciation $2,040 $3,876 $5,528

Total Long-term Assets $18,260 $16,424 $14,772

Total Assets $71,900 $92,364 $120,616

LIABILITIES AND CAPITAL FY 2005 FY 2006 FY 2007

Current Liabilities

Accounts Payable $9,267 $9,454 $9,967

Current Borrowing $0 $0 $0

Other Current Liabilities $0 $0 $0

Subtotal Current Liabilities $9,267 $9,454 $9,967

Long-term Liabilities $19,000 $9,000 $0

Total Liabilities $28,267 $18,454 $9,967

Paid-in Capital $46,000 $46,000 $46,000

Retained Earnings ($25,850) ($2,367) $27,911Earnings $23,483 $30,278 $36,739

Total Capital $43,633 $73,911 $110,649

Total Liabilities and Capital $71,900 $92,364 $120,616

Net Worth $43,633 $73,911 $110,649

business plan on pizza corner

Documents