Name: M Hammad Kothari

Roll No: IM-061

Batch: 2015-16

Course: Supply Chain Management

Submitted to : DR Syed Mehmood

Hasan

Section: B

1
Table of Contents
I. LEAN CANVAS................................................................................................... 3
II. Executive Summary ............................................................................................. 0
Highlights........................................................................ 0
III. Objectives ............................................................................................................. 0
Mission Statement........................................................... 0
Keys to Success .............................................................. 0
IV. Description of Business........................................................................................ 1
Company Ownership/Legal Entity ................................. 1
Location .......................................................................... 1
Hours of Operation ......................................................... 1
Products .......................................................................... 1
Service ............................................................................ 2
Management and Human Resource ................................ 2
Financial Management .................................................... 3
V. Marketing ............................................................................................................. 3
Market Analysis .............................................................. 3
Market Segmentation ...................................................... 4
Pricing ............................................................................. 5
Advertising and Promotion ............................................................................................ 5
Strategy and Implementation .......................................... 5
Determining Start-Up Capital ......................................... 6
Sales Forecast ................................................................. 7
VI. SWOT Analysis .................................................................................................... 7
Strengths ......................................................................... 7
Weakness ........................................................................ 7
Opportunities .................................................................. 7
Threats ............................................................................ 7
 LEAN CANVAS
Problem / Need Solution Unique Value Competitive Customer Segments
Proposition Advantage

Non availability of Providing; Providing Providing a quality Main focus on

breakfast items quality different taste food within customer related to:
that are required breakfast and of product with university premises
 Foodie
and have to leave area to sit and quality within buying
 Students
university relax ambience and power.
Early Adopters
premises to eat. making a brand
within NED Those who are
premises. willing to try new
Difficult to predict things coming into
product behavior the market and
and complexity develop a new taste
increases. buds.

Existing
Alternative
Key Metrics Channels
Have to eat
unhealthy food 1.Campus
1. Daily check
and compromise promotions
in balance of
on health.
sales of items
2. Social media
and distribution of
coupon and
vouchers.

Cost Structure Revenue Streams

1. Increasing number of Loyalty cards
Fixed and Variable cost are described below;
 Capital Investment (Equipment, area, facility)
 Marketing & Administrative cost (Promotions,
salaries, inventory cost)
Executive Summary
The purpose of this business plan is to set up an area where students can sit on a place
to discuss their ideas where they can express themselves openly with a cup of tea and
snacks. This is a local brand that will provide tea, coffee (in winters) , Halwa puri and
different variety of parathas to its targeted customers.

Highlights
The graph shows 3 years financial highlights with profits gradually increasing year by
year with sales and expenses at the beginning will be higher that will include capital
investment and setup cost.

Financial Overview
Sales Net Profit Expenses Overheads maintenance
1700000

1400000

1100000
900000
700000

400000
100000 100000 300000 200000 100000 300000

2019 2020 2021

Objectives
Create Noise about Doodh Patti Junction and Inform Students outside NED about the
existence of Doodh Patti Junction.

Mission Statement
We are committed to provide quality food at reasonable price within university
premises for students of University.

Keys to Success
 Main the quality of product
 Better financial management
 Build strong market among the students and outside the university.
Description of Business
Doodh Patti Junction will operate in a small location that will provide a wide selection
of Paratha’s, chai and egg omelets. The sales will generate substantial gross margins
that will allow the business to generate profitable revenue throughout the course of
calendar year.

Company Ownership/Legal Entity

This business will be a sole propertiership with a monthly rent.

It will be registered as a place for cafeteria among the university premises that will
follow the proceeding to register as a business venture.

Location
The Location of DPJ will be NED University around Student Facilitation Center. The
reason for selecting that area is footfall of students around that corner is greater as
compared to other areas of University. This would be beneficial as number of students
around that corner are huge in number and they will try to taste the products that are
offered. It would be easier to promote among the students and marketing with
promotions and discount offers coming on daily basis with points scoring
opportunities every day.

Hours of Operation
DPJ will operate for 10 hours from 9am-7pm.

Products
Doodh patti junction will set a variety of Paratha’s, chai, egg omelet, coffee and other
product that are common with Chai Junctions. Doodh patti junction will always
properly handle dairy and meat products that have higher incidences of spoilage. DPJ
will ensure at all times that working area is healthy and in compliance within the laws.
Service
In the beginning there will be dine in service provided each order to be delivered on
table within 10 minutes depending on the type of order, waiters will be able to take
orders from the customers.

DPJ further intend to support the business by sourcing the inventories of raw material
from the local stores that will provide bulk discounts.

Management and Human Resource

Senior
Management

Retail
Operations

Inventory
Management

Customer
Service

Store
maintenance
I’ve been thinking about this business from last year and very keen to work on this
business with interest and dedication. The management and human resource will
comprise of 5 persons including me.

I will be looking after the sales and marketing operations along with finance under
one domain. There will be 4 hired workers on salary basis which will include one
cook that will look after preparation of orders of parathas. One worker will be
responsible for preparation of tea. One worker will be responsible for managing the
inventory of daily basis as per customer demand. One worker will be taking orders
from the customers and reporting to cash counter for the order and serving to the
customers.
Human resource will be increased after six months as customers will increase and
market demand will require orders to be delivered on time.

Yearly promotion for the employs and monthly additional incentives will be given on
the basis of customer feedback.

Training will be provided monthly basis to worker the maintain the quality and
services with the customer.

Financial Management
Looking forward to send proposal to different companies to market their brand on
Junction with monitary sponsors coming from different groups with short term loan.
The finances will be issued for the following

 Capital to purchase the required equipments

 Financing for the four months of operation
 Finance for the marketing of the junction

TO function DPJ will be looking to take 50% loan from the bank for one year with
10% fixed interest rate along with 30% equity and 20% liability. 5 year capital space
to be leased from NED for the operation of DPJ with yearly rent for the space
acquired.

Remaining finance will be used by savings and for back up in case business face
losses then finance will be provided elder brother.

Marketing
To capitalize on the Target’s audience receptive frame of mind and present Doodh
patti junction as a corner when they can be themselves in NED.

Market Analysis
The target market for this business is from 18+ to 40 years. Majority of the audience
will be youngsters who would like to discuss things with a cup of tea or to relax their
mind.

Capitalizing on the Target’s audience receptive frame of mind and presend Doodh
Patti Junction as a corner where they can be themselves in NED.
The main idea behind this business is such items are not available within the
University premises (except tea) and sitting around with mates over a breakfast has
become a trend now days.

The market that DPJ is looking to target is growing day by day and expanding.
Platform of NED will open several door and allow to compete among the local
market.

Market Segmentation
Pie chart shows the market segmentation at different levels and the type of market
they have covered.

As mentioned in the pie chart with name Chai Shai and other brands have targeted a
upper class audience located at DHA Karachi and other locations.

DPJ comes under the majority market segment that target middle class audience that
have a habit of daily chai routines with prices in every person range.

Whereas the quetta hotel and other local hotel comes under that are located in areas
for feasibility of residents that can access chai at the time of their need.

Market Segments
Quetta Hotel Chai Shai
20% 25%

DPJ
55%
Chai Shai DPJ Quetta Hotel

Competition

The biggest competitor is Paratha Sharata opposite to NED.

The market they have captured is around 40%. The pricing of their products is
average that I will be looking forward to give them a competition because on the end
of customer most important an average person checks is price before purchasing and
ordering and comparing prices.
In Order to stay in the market for a longer period, will have to upgrade with market
changing trends and work responsive according to the changing demands of the
customer.

Pricing
The price range normal products will be 20-30 and customization will increase price
according to the product ordered on the menu card.

The pricing strategy that will be adopted to price below competitors that is Every Day
Low Pricing strategy.

Monthly maintaining the sales and expense will help to keep the balance between
overheads and cost to make sure business is earning profit. To stay abreast of
changes in the market will have to increase the product variety to diverse profit
margins in the growing market.

Advertising and Promotion

Social media will be the key option in advertising and promotions.

Sponsored content with ads will be played on different social media account to attract
the customers outside and inside the NED University. Vouchers will be provided
through different food chain apps like Savyour on different deals and discounted
promotion.

Campus promotions through distribution of T shirts daily contest winner will get a
mug with a logo of Doodh patti junction.

Advertisement budget will be 25% of total budget because strong marketing at the
beginning will help to expand the business in next 3 years to different Universities.

Advertisement will be done monthly basis with distribution of flyers and approaching
different societies of University and building a collaboration with them branding DPJ
on different events to penetrate in the market.

Volunteers will be required to distribute free tasting of tea around university and
attract them to visit the junction.

Strategy and Implementation

Direct marketing will be the most difficult portion of the marketing strategy. This is
because one of the essential elements to reaching a purchasing audience that DPJ
must build with the customer. DPJ will maintain a moderate level of traditional print
that will provide its customer coupons and vouchers with special deals that will
encourage customer to visit the junction.

Prior to the opening ceremony on drive promotions will be done to attract the students
among the campus and mails will be sent to invite everyone with free tasting and
exciting offers.

Guerilla marketing will be the key to attract the audience in way that at the time of
short breaks there will be a huge line of customers waiting for tea. This will greatly
attract the customer to get in line and taste the product.

Determining Start-Up Capital

The table shows yearly cash flows with rolling of money throughout the year. The
values are predicted in the table with sales, revenue, pay roll, rent and other expenses.

Year 1 Year 2 Year 3

Starting cash 900000 250000 300000

Cash In: 1000000 1200000 1400000

Cash Sales 300000 400000 600000

Paid
Receivables 200000 300000 500000

Total Cash In 1100000 1400000 1700000

Cash Out: 500000 700000 900000

Rent 240000 300000 330000

Payroll 600000 650000 700000

Other 100000 150000 200000

Total Cash 900000 700000 900000

Out
Ending 250000 300000 400000
Balance
Sales Forecast
DPJ expects a strong rate of growth at the start of operations. Below are the expected
financials over the next three years

Year 1 2 3

Sales 1100000 1400000 1700000

Operating Cost 500000 600000 750000

EBITDA 200000 300000 450000

Taxes, depreciation 80000 90000 100000

Net Profit 100000 300000 400000

SWOT Analysis

Strengths
 Better environment with good ambience
 Unique product in NED
 Strong management system
 No competitor inside NED
 New trend in NED

Weakness
 New interactions with the customers
 Lack of experience
 Financial issues in the beginning
 Difficulty in delivering order on time

Opportunities
 Establish a strong market
 Market myself and expand in different universities
 Develop new marketing trends
 Increase number of products

Threats
 Bad Economy
 Changing trends
 Policy changes
 Negative opinions