school enterprise challenge business idea web viewwe anticipate that these initial positive...
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GLOBAL INDIAN INTERNATIONAL SCHOOL, UPPALSCHOOLNAME ,COUNTRY
BUSINESS PLAN
Written byHars h, Ritu ,Mridula , Akh ila , Likit ha ,GauravMS.SANDHYA,MS.MADHAVI,MR.SRINIVAS
¿ LEADTEACHER
CREATED AS PART OF THE SCHOOL ENTERPRISE CHALLENGE AWARDS PROGRAMME – BRONZE LEVEL
Section A: Our Business Details
Business NameGlobal Indian Food and Handicrafts
Business ActivityReady to Eat Food sales
Main product / serviceReady to eat food products
No. of students involved in business planning activities (including writing this Business Plan)
Boys 4/5 Girls 5/4 Total 9
Financial SummaryOur Local Currency is:INR Indian Rupee
Period of time budgeted for 3 Months 1000 to 10,000
Total Income(Estimated) 6700 per day 6700 per day
Total Costs (Estimated) 4100 per day 4100 per day
Profit (Estimated) 2600 per day 2600 per day
Start-Up Costs (Estimated) 3500 per day 3500 per day
Section B:Market Research and Target Market
1. Here is a description of the Market Research done by us, including how many people we spoke to.
The Hyderabad snack and refreshment market is not fully tapped. As a matter of fact, there is no other business of this kind in the Hyderabad which is profitable in nature. Though there are similar replicas of our business model and there are some types of ventures that we would have to consider to be indirect/direct competitors. These include such ventures and service professionals as caterers and those that will come to your home and prepare snacks for you to freeze/eat. Ready to eat Food, at this time, has some direct competitors, with exception to area restaurants and your basic home cooking. At the inception of Ready to eat Food, there will be no type of company like ours in our area, thus giving us the overwhelming competitive advantage of first entry.
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The Global Indian Food and Handicrafts is primarily in the school premises located in Uppal/Peerzadiguda area in Hyderabad. We will be focusing on school children and households in these areas that have more than one person. Primarily, those households/school children whose income is over Rs10, 000 per month with someone under the age of 18 living there. As a secondary target market, we will market to the elderly population in the aforementioned areas. Initially, the greater portion of our customers will be busy, working class people, children and the growing group of parent families, but it will be of great benefit now and in the future to market our services to the highest growing population demographic – senior citizens.
2. These are the results of our Market Research, including who is going to buy our product/service and why they will buy it.
Market Segmentation
Global Indian Food and Handicrafts has three distinct target populations: Family households with children studying under 18 years old. This group of people is generally busier than other families with their time split between work, home and their children’s activities. This group may be parent households, which only adds to the stress resulting from lack of time, coupled with the need for proper snacks for their children. This provides them with a desire to provide their families with good snacks and free time to enjoy being together.
Family households with no children living at their home. This group has a need for our services, as hectic schedules, professional careers, and daily demands on time come up against the need for tasty, healthy snacks. Depending on their work and home situations this demographic could use our service to enhance their selection of snacks all the while minimizing their time in the kitchen. This group does recognize the benefits of our service and want to enjoy making snacks for themselves and socializing through our business.
Senior and Elderly Citizens. This group (60 and above) is the fastest growing portion of the population, and needs our services for several reasons:
A good portion of this group is simply unable to cook nutritious snacks and does not have the knowledge or skills to continue to effectively maneuver themselves in the kitchen.Many seniors do not have the time, energy, or means to make it to the grocery store.
We will market several menus designed for the diet needs of the senior populace (diabetic, low cholesterol, low sodium), with pick-up and drop-off coordinated with a local senior-transportation center. All prep and measuring will be done beforehand, so they will need only to stir and combine ingredients. In addition to meeting their practical needs, we will create the social experience that this group consistently hunts for, and help them to enhance their lifestyle through a higher quality of health.
Target Market Segment Strategy
These target market segments were chosen based on their greater need for our services. Families with children
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are very busy, and they can end up spending a great deal on fast food and junk food because they don’t have time to cook healthy snacks/refreshments at home. Busy working couples and individuals without children are also busy, and may not have the skills or desire to plan and cook entire snacks at home just for themselves; they can spend a lot on going out to eat. Seniors have special challenges in obtaining and preparing quality ingredients to feed themselves, including the loneliness of cooking for oneself. Options like “snacks on Wheels” are generally last-resorts, and many would prefer alternate food preparation arrangements, if any were available at a reasonable price – fixed incomes can be hard on the palate.
Our marketing strategies for all groups will emphasize our relatively inexpensive, fun, and easy approach to preparing healthy snacks. We will vary our serving sizes, menu options, and level of preparation for each group; the family-size entree just right for a family of four makes no sense for a single individual. Different sized families have different needs, and it will be our goal to look to accommodate most family sizes through our variations in serving size.
The main objection most potential customers will raise is cost – Rs.5/10 seems like a lot of money, up front, for a new, untested service. This is why we are starting our marketing and sales campaigns with established groups (schools, summer camps, malls, family get-togethers, temple groups,church groups, cooking clubs, local senior center restaurant clubs), at a price reduction. These consumers already have experience socializing with each other, and our service will be an exciting change of pace in their calendars. We anticipate that these initial positive experiences will generate significant word of mouth and produce referrals so we can say to potential customers, “don’t just take our word for it – go ask people who’ve tried us!”
Section C: Competitors and Competitive Advantage
3. These are our main competitors and their strengths and weaknesses.
Competitor Name Strengths Weaknesses
Personal Chefs Good Knowledge of Cooking Marketing is weak and reach within local area is feeble
Small Snack Shops Good knowledge of Cooking, sufficient funding capacity
Marketing is weak. Does not have enough manpower
to deliver the products to customers.
Area RestaurantsLarge Funding capacity. Sufficient
manpower availability is there. Marketing is very strong
Knowledge of Local area and population eating habits is weak.
Cooking knowledge is not sufficient.
4. Our competitive advantage – This is why we are going to be better than our competitors:
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Service Business Analysis
Our service is unique among school and Uppal/Peerzadigua(Hyderabad snack preparation options. There are direct competitors for Global Indian Food and Handicrafts. The closest competitors are personal chefs, small snack shops in respective localities, who will come to your home and prepare your chosen snacks for you and freeze them, at a very high price. Our target market segments cannot afford personal chefs. Our indirect competitors are area restaurants. These include family-oriented, inexpensive diners and casual restaurants, as well as fast food and takeout. We will generally not be competing with upscale, adult-oriented restaurants, since those are “special occasion” locations, and do not fulfill local residents’ daily snack needs.
Our competitor restaurants/snack shops compete on price, perceived convenience, and atmosphere. They succeed when they convince customers that going out to eat is an affordable “treat” that is easier and more pleasant than preparing snacks at home. In truth, the restaurants with the lowest prices also offer poor quality food and atmosphere, and the struggle to get children ready, out the door, and have them behave in a restaurant setting can make these choices less appealing in families’ realities than in their imagination. For all customers, the time it takes to get ready, travel to a restaurant, order snacks, eat, pay, and get home make going out to a eat a full-evening’s commitment – hardly the convenience it claims.
With the introduction of Global Indian Food and Handicrafts to the Uppal/Peerzadiguda in Hyderabad market, we will revolutionize the way that the community looks at cooking convenience. Our prices really are much lower than restaurant snacks, with much higher quality snacks. In addition, our “convenience” comes in two ways – preparing snacks/refreshments at a set time, outside the daily routine, so they are ready in advance, and eating and minimal clean-up right in the customer’s own home, which saves time and energy at the end of a long day.
Competition and Buying Patterns
Even though Global Indian Food and Handicrafts has direct competitors, we will set up our business as if we are entering an already aggressive and hostile market. This is aimed at helping us to become successful through a constant drive for increased service model efficiencies and marketing effectiveness. We will strive to excel in customer service excellence, continuing our menu varieties and achieving the highest standards for our food products. As owners, we feel that word of mouth and customer retention are significant factors in our success. Our convenient locations, sanitary facilities, competitive pricing structure and honorable reputation
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will all play a part in satisfying our customers and increasing our clientele at an accelerating rate. Global Indian Food and Handicrafts shoppe will focus on these factors and always strive to improve our business model and service offerings. We will strive to be the very best in our industry and will not rest until we not only have the largest market share in our industry, but also have the most satisfied customers.
The buying patterns of our customer base will be affected by our initial snack preparation party prices. We have concluded through our exhaustive focus market groups that we could set our prices high, since there are competitors, but we feel that to attract and retain customers and be able to steadily grow our customer base, so we should price ourselves at a lower level first. By setting ourselves at the lower end of our pricing range, we will not only gain the attention of the vast majority of our target markets, but we will also be able to start our revenue streams off with an upward growth pattern. The price that we will choose will be reasonable for our customers and be adequate for the business to maintain a gross marginaround 5% to 10%.
Section D: SWOT Analysis
5. This is our SWOT Analysis.
Strengths – What are our business’ strengths?
Creating a high level of customer satisfaction in our service and products, which will lead to customer retention each month.
Variety of menus offered based on seasons, trends and customer preferences.
Ready to eat food’s website will be an efficient and convenient place for customers to register and pay for parties.
Weaknesses – What are our business’ weaknesses?
Marketing: getting our name out to the public, primarily through an intensive marketing campaign driven by our customers (word of mouth) with a supplemental vehicle of standardized and conventional marketing tactics
Great product quality and variety that will be used to aid in customer retention and growth.
To exceed customers’ expectations for food service and food service products.
To achieve a net income of more than 10% of sales year on year.
Opportunities – What opportunities do we have for Threats – Do we face any threats to our business?
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our business?
To increase the number of clients served by 3% per month through superior service.To increase the number of clients served by 3% per month through superior service.To develop a sustainable start-up business that is profitable.To achieve an after tax net profit of Rs1,00,000 within six months.
Spend More/less time in the kitchenMore/Less money on groceries & eating out – it keeps you from being tempted to eat outMaking Home style snacks & better eatingFamily setup: Able to sit down at the table together as a family – including conversation and socializationClean up is messy, because preparation is done outside the home, and all snacks come in disposable containersMore/Less time spent on grocery shoppingIn less than 15 minutes you will have warmly cooked ready to eat snacks for you and your familyGetting more menus items. We create the menus – order the ingredients – slice, dice, chop and prepareMore Social hour preparing refreshments.
Section E: Operational Plan
6. These are the one-off tasks we will need to do to actually start up our business:
The start-up expenses include:
Rent expenses include a deposit and rent for one month at the required amount per square foot for 1,854 square feet, in the total amount.
Utilities expenses for one month. Insurance deposit and first month. Sales & Marketing expenses including stationery, brochures, outdoor
signage. Website development. Office, kitchen, chairs, dining tables and janitorial supply expenses. Leasehold improvements, including contractors fees and permits.
The required start-up assets of Rs.3500 include:
Kitchen Equipment (long-term assets)
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Chairs, dining tables, Prep Tables (short/long-term assets) Cooking utensils Various Kitchen Utensils Computer and small business software
Please note that the long-term assets above will be depreciated using standard accounting practices and approved straight-line depreciation method.
7. These are the daily, weekly and monthly tasks we need to do to actually run our business:
8. Our business team structure – Here are the names and positions of the business team members with a reference if they are teachers/students and a diagram of our business team structure (when possible).
3 Teahcers and 9 students
1.School Incharge Teacher – Overall – CEO Level – 1 Student2.Student Incharge Teacher(HR Related) and 1 student3.Finance Related (Teacher) – 2 Students4.Operations Related Teacher – around 5 students
Section F: Marketing and Sales Plan
9. These are our 4 P’s (Product, Price, Place, Promotion).
a) P roduct – Our product/service is…Ready to eat Food Snacks
a. Samosas,Bajjisb. French fries/Chips
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Task How long does it take?
How often?Daily/Weekly/Monthly
Who?Who will be responsible
Space Lease1 week monthly Incharge
Kitchen equipment /chair/tables/Utilities expenses for one month
1 week daily Kitchen Incharge
Insurance/Fire license1 month 1 year Incharge
Website/Computer/software/computer stationary
2 weeks daily Operations Incharge
Sales & Marketing expenses including stationery, brochures, outdoor signage
1 week/month weekly Incharge
c. Murukulu(South Indian Snacksd. Cool Drinks(Sprite, Coke, Pepsi)
b) P rice – We will sell it at this price: Starting from Rs. 5 and actual MRP
c) P lace – We will sell our product/service at this place: Our School Premises and near premises
d) P romotion – We will promote our product/service by:
Sales & Marketing expenses including stationery, brochures, outdoor signage.Website development.
Appendix Section: Students in ActionPlease find in this space 3 pictures (when possible) that clearly shows our involvement as students in our
business planning activities.
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FINANCIAL PLAN
1. Income (estimated)
NAME OF PRODUCT OR SERVICE
QUANTITY SALES PRICE(RS) SALES INCOME (rs-Quantity x Sales Price)
Samosa/bajji 50 pieces 10 per piece 500
French fries/chips 50kgs 10 per 100 gms 5000
Cool drinks 100 bottles 10 per bottle 1000
Handicrafts/quilling items
10 pieces 20 per piece 200
TOTAL SALES INCOME 6700 (per day)
2. Costs (estimated)
NAME OF ITEM QUANTITY COST PER ITEM(rs)
TOTAL COSTS (rs-Quantity x Cost per
Item)Samosa/bajji 50 pieces 5 per piece 20
French fries/chips 50kgs 6.00 per 100 gms 3000
Cool drinks 100 bottles 10.00 1000
Handicrafts/quilling items
10 pieces 8.00 80
TOTAL COSTS 4100(per day)
3. Profit (estimated)
OurLocal Currency(RS per day)
TOTAL SALES INCOME 6700
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TOTAL COSTS 4100
PROFIT (Total Sales Income – Total Costs)
2600
4. Start-Up Budget (estimated)Our Start-Up Budget is the costs of the Equipment and Supplies that we will need to start our business.
a) Equipment& Supplies Start-up
EQUIPMENT& SUPPLIES
NAME OF ITEM QUANTITY COST PER ITEM TOTAL COST (Quantity x Cost per Item)
Rent expenses include a deposit and rent for one month at the required amount per square foot for 1,854 square feet, in the total amount.
1 1500 per month Rs 1500 per month
Utilities expenses for one month
50 items 10 500
Insurance deposit for first month.
1 500 500
Sales & Marketing expenses including stationery, brochures, outdoor signage.
1 1500 600
Website development, Computer and small business software
1 free free
Office, kitchen, chairs, dining tables and janitorial supply expenses
10 nos. 40 400
Leasehold improvements, including contractor’s fees and permits
free free free
TOTAL EQUIPMENT& SUPPLIES START-UP 3500
b) Equipment we don’t need to buy as we own/have access to:
1. Website, computers, software etc2.Leasehold improvements including contracts fees and permits
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c) We will get the Start-Up capital needed for our business by:
Contributions from Students
Additional comments: Please note that long term assets above will be depreciated using standard accounting practices and approved straight line depreciated method.
Our Local Currency used : Indian Rupee
Exchange rate to US Dollars: Rs 64.46
Your opinion matter to us and we want to make sure the Awards Programme works for you. Please ask your teacher to fill in the following section. ONLY SCHOOLS THAT COMPLETE THIS SECTION WILL BE ELEGIBLE FOR AN AWARD.Please chooseONEoption in each row.
A. STUDENTS’ IMPROVEMENT ON SKILLS
After going through the activities to develop the Business Idea and Plan do you feel your students...
Did not improve
Stayed the
sameImproved
1. Are more confident speaking in front of other people (e.g. during market research) No No Yes2. Work better with people with different opinions to theirs No No Yes3. Have improved their team working ability, e.g. if other team members were struggling
they offered support to themNo No Yes
4. Are more confident analysing information No No Yes5. Are more able to use their ideas to organise and plan work in order to reach their goals No No Yes6. Are more able to look at different ways to solve a problem and are more confident in
selecting a solutionNo No Yes
B. YOUR OPINION ON THE SCHOOL BUSINESS PLANNING PROCESS
1. Through the school business planning process, which skills do you think students improved/gained the most (max 3):
Leadership Improved Communication Improved Aspiration - Gained
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Confidence Decision making Other – Please specify:Problem solving Improved Team work
2. Do you feel the activities helped students improve their performance in other subjects at school? You can choose more than one option.
No Yes, in ScienceYes, in Maths Yes Yes, Other – Please specify:Yes, in Writing & Reading Yes
3. Have the students used the skills learned through the school business planning outside school?
NoNo Idea
I don’t know
Yes – Please specify:
CONGRATULATIONS on writing your Business Plan! You can now GET STARTED and put all your learning into action! Now is the time for you to actually run your business!
Remember to submit your completed business plan to the School Enterprise Challenge Awards Programme by logging in to your account at: www.schoolenterprisechallenge.org/login
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