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EXECUTIVE SUMMARY
Beans & Bakes (B&B) is a start-up coffee and bakery retail establishment located in Marine Drive, Mumbai. B&B expects to catch the interest of a regular loyal customer base with its broad
Business description
B&B is a bakery and coffee shop managed by two partners. These partners represent sales/management and finance/administration areas, respectively. The partners will provide funding from their own savings, which will cover start-up expenses and provide a financial cushion for the first months of operation. A
START-UP SUMMARY
B&B is a start-up company. Financing will come from the partners' capital and a ten-year SBA loan. The aside chart and following table illustrate the company's projected initial start-up costs.
START-UP REQUIREMENTS
START-UP EXPENSES
Legal Premise Renovation Expensed Requirement Other
AMOUNT(Rs.)
30,000 2,00,000 4,00,000 10,000
6,40,000 AMOUNT(Rs.)
7,00,000 1,20,000 6,50,000
14,70,000 21,10,000
START-UP FUNDING
Start-up Expenses to fund
Start-up Assets to fund
AMOUNT(Rs.)
6,40,000
14,70,000
21,10,000 AMOUNT(Rs.)
7,70,000 7,00,000
10,10,000 AMOUNT(Rs.)
5,50,000 5,50,000 0
11,00,000
6,40,000
COMPANY OWNERSHIP
Beans & Bakes is incorporated in the state of Mumbai. It is equally owned and managed by its two partners. Mr. Suresh Agarwal has extensive experience in sales, marketing, and management, and was vice president of marketing with Kathleen Confectionaries. Mr. Shubham Gupta brings experience in the area of finance and administration, including a stint as chief financial officer with both Monginis and the national coffee store chain, Caf Coffee Day.
SALES PLAN
As the chart and table show, B&B anticipates sales of about Rs. 49,10,000 in the first year, Rs. 56,70,000 in the second year, and Rs.65,50,000 in the third year of the plan.
SALES FORECAST
Year 1
SALES Espresso Drinks Pastry items Other
AMOUNT(Rs.) AMOUNT(Rs.)
Year 2 Year 3
AMOUNT(Rs.)
40,50,000 8,60,000 0
49,10,000
46,77,750 9,93,300 0
56,71,050
54,02,800 11,47,260 0
65,50,060
TOTAL SALES
DIRECT COST OF SALES
AMOUNT(Rs.)
AMOUNT(Rs.)
AMOUNT(Rs.)
Espresso Drinks
Pastry items Other
TOTAL DIRECT COST OF SALES
3,75,000
4,30,000 0
7,67,500
3,89,810 4,50,230
4,96,850 5,73,630 0
8,86,460
0
10,23,860
SALES BY YEAR
Rs. 7,000,000
Rs. 6,000,000
Rs. 5,000,000
Rs. 4,000,000
Rs. 3,000,000
Rs. 2,000,000
Rs. 1,000,000
MARKETING STRATEGY
The process of marketing involves creating a market offering, to satisfy the needs and wants of the present and potential customers. To develop and market our products we use the strategy of marketing mix. The marketing mix is a business tool used in marketing and by marketing professionals. The marketing
marketing mix.
PRODUCT RANGE
BEVERAGES Hot Coffee Cold Coffee Chocoholicas Fruiteazers
Hoteas
Frosteas International Coffee FOOD Pastries Sundaes Dessert Shots Sweet Treats Cake Away OTHERS Combo Deals The Lounge
PROMOTIONAL STRATEGY
We at B&B will use personal selling and sales promotion techniques in order to promote the franchise and boost its sales. Professional salesmen
TARGET MARKET
B&B's focus is on meeting the demand of a regular local resident customer base, as well as a significant level of tourist traffic from nearby highways. The dominant target market for B&B is a regular stream of
MARKET NEEDS
Because Mumbai has a hot climate for eight months out of the year, iced coffee products are very much in demand. During the remaining cooler four months of the year, hot coffee products are in significantly high demand, along with a slower but consistent demand for iced coffee products. Much of the day's activity occurs in the morning hours before eleven a.m., with a
MARKET SEGMENTATION
B&B focuses on the middle- and upper-income markets. These market segments consume the majority of coffee, espresso and bakery products. Local Residents B&B wants to establish a large regular customer base. This will establish a healthy, consistent revenue base to ensure stability of the business. Tourists Tourist traffic comprises approximately 35% of the revenues. High visibility and competitive products and service are critical to capture this segment of the market.
MARKET SEGMENTS
Local Residents Tourists
65%
35%
Year 2 Year 3
AMOUNT(Rs.) AMOUNT(Rs.)
26,08,000
27,38,400
28,75,320
2,70,000
3,52,000
7.14.600
Year 2 Year 3
AMOUNT(Rs.) AMOUNT(Rs.)
1,20,000
16,85,930
1,20,000
24,48,940
1,20,000
33,96,370
LONG-TERM ASSETS Long-term Assets Gross Margin Accumulated Depreciation Gross Margin %
TOTAL LONG-TERM ASSETS
TOTAL ASSETS
6,50,000 41,42,500 6,00,000 84.37 % 50,000 17,35,930 8,50,000 47,84,590 12,90,000 84.37 % (4,40,000) 20,08,940 10,50,000 55,26,200 20,83,500 84.37 % (10,33,500) 23,62,870
TOTAL LIABILITIES
NET WORTH
BREAK-EVEN ANALYSIS
Rs. 3,00,000
Rs. 2,00,000
Rs. 1,00,000
Rs. 0
(Rs. 1,00,000)
(Rs. 2,00,000)
(Rs. 3,00,000)
0 30,000
60,000 90,000
BREAK-EVEN ANALYSIS
AMOUNT (Rs.)
1,72,550
3,83,360 AMOUNT (Rs.) 22.2 3.5 3,23,430
MANAGEMENT SUMMARY
Mr. Suresh Agarwal has extensive experience in sales,
PERSONNEL PLAN
As the personnel plan shows, B&B expects to make significant investments in sales, sales support, and
PERSONNEL PLAN
Year 1
AMOUNT (Rs.)
Year 2 Year 3
AMOUNT (Rs.) 10,50,000 AMOUN T(Rs.) 11,02,500
10,00,000
4,08,000
4,28,400
4,49,820
12,00,000
12,60,000
13,23,000
0 10
0 10
0 10
26,08,000
27,38,400
28,75,320
SWOT ANALYSIS
STRENGTH
Selling Products in affordable prices. Products of extremely good quality and taste. Its a youth oriented brand. USP of the brand is that it is high affordable brand.
WEAKNESS
Limited target audience. Older generation may generally not like it. Self service for customers which make uncomfortable guest. Management team has not worked together for long period. Less advertisements in the market.
OPPORTUNITY
Coffee industry is one of the fastest growing industries in Asia. Scope for innovation in existing market. More people may like to visit for informal meetings.
THREAT
Large unorganized market. High number of competitors like Caf Coffee Day, Barista Lavazza, Starbucks, Georgia.
QUESTIONNAIRE
Dear Consumers,
I am a partner of a start-up coffee and bakery retail establishment located in Mumbai named Beans & Bakes. The Caf has been recently launched at Marine Drive, Mumbai. This survey is being conducted to estimate the potential demand for the coffee espresso and bakery products, etc so that we can serve you customers better. It is an earnest request to you to fill the attached questionnaire for our reference. It will
not take more than a minute. A lucky draw will also take place in which one lucky
winner will be gifted a Smartphone worth Rs. 10,000. All your valuable views will be respected. Thanking You. Instructions: Please fill in the form in BLOCK LETTERS. Tick mark ( ) in the squares as given against each question wherever it is applicable.
Avoid Cancellation or use of white ink. Please specify the units wherever applicable. PART A: Name: .. Address: Date of Birth: Sex: Male Female Business Student Service Others....
Occupation:
Monthly Income (in Rs.): . Contact Information: Phone Number: . Email-ID: ...
Part B: Q1. How often do you visit a caf? Everyday Once a week Once a Month Rarely Q2. What are the features that you expect at a caf? Good Ambience Air Conditioned Caf High Seating Capacity Good Service Others (specify) Q3. Do you find a caf easily accessible? Yes No Q4. Are you oriented towards cheaper espresso and bakery products? Yes No Q5. What are the primary purposes for which you visit a caf? Informal Meetings Formal Meetings Others (specify) Q6. What features of products do you expect at caf? Good Taste Low Price Others (specify) Q7. What is the monthly average expenditure made on the products of a caf? Less than Rs. 500 Between Rs, 500-Rs. 1000 Between Rs. 1000-Rs. 2500 More than Rs. 2500 Q8. Do you prefer bakery products over espresso items? Yes No Q9. Do you prefer eggless products more? Yes No Q10. Which of the following cafes do you visit more? Caf Coffee Day Barista Lavazza Starbucks OTHERS (specify) .. Q11. What is your view on the existing cafs and what will you suggest for improving this condition? ....
BIBLIOGRAPHY
I have taken information from the
following sources : www.google.com
www.wikipedia.org
www.scribd.com www.about.com Business Studies Textbook for Class XII Part II Entrepreneurship Textbook for Class XII