Business Name :
“Pitha-Hut”
Business location
: TSC Centered, University of Dhaka
Contact :
+8801720082238, +8801670460352
Owners :
Afshanul, Asad, Irfan, Rasel, Murshed, Saddam
Contact Person :
Shaikh Md. Rasel, Irfanul Haq (Dept. of Marketing)
Business Structure
: Partnership Venture
Business Concept :
Deshi Pithas.
USP of Business :
Diversified taste, reasonable price with standard quality.
Mission Statement
: Stay close to traditional touch.
Vision :
Spreading traditional touch throughout the country.
Objective :
To capture the market share in the fast food industry.
Goal :
To attain the break-even point.
Financing
Ours total investment is BDT 600,000 which includes BDT 400,000 of
capital and 200,000 of loan. This 400,000 is contributed by our six partners
equally and the remaining 200,000 of loan is to be paid of over 3 years. This financing
will cover all the long-term & running costs like van, office building and
materials, suppliers, advertising & production cost.
Confidentiality of report
This report is confidential and is the property of the co-owners listed above.
It is intended only for use by the persons to whom it is transmitted and any
reproduction or divulgence of any of its contents without the prior written
consent of the venture is prohibited.
Executive
Summary:
Nowadays fast foods are
very much popular all over the world because of less time consuming and more
taste. It is also popular among the people of our country. But because of these
junk foods we are forgetting our own traditional foods like pithas. So with
this initiative we have come forward to make a business plan to replace the
ongoing fast foods trends by our traditional Bangladeshi pithas.
We have named our business
as ’Pitha-Hut’. We have given this name because we feel ‘pithas’ are the heart
of Bangladeshi culture.
Our idea is to serve
various types of pithas that will attract the people towards our own cultural
specialty like misti-pithas & jhal-pithas. We think it has great potential
in this type of food market industry. We have determined some factors that will
help us to generate some revenues from the beginning of this business launch. And
we also have defined our competitor’s strategies so that we can compete with
them. We have analyzed our SWOT and defined our business strategy. We have
created a great opportunity for investors who seek new innovative business
ideas and plans.
We have determined our
break-even point on daily basis. We have calculated the targeted year when we
will collect the investment and the revenue amount. And we projected our
revenue will be double up within five years if we go at a significant speed. We
have forecasted that we can attain the break-even point if we make a sale of
2052 Tk. daily, approximately of 250 pithas. Our objective is to provide a
better quality food habit and to shift the trend from the fast food items to
traditional pithas.
Industry Analysis
We need to do an industry analysis in order to know which industry, we
will be competing in. Discussion of the industry outlook, including future
trends and historical achievements are included here. We are providing insights
on new product development in this pitha industry.
Future outlook and trends:
Here we are doing business for occupying the place of fast food
restaurants. So primarily, we are planning to do business in university of
Dhaka (TSC area). As almost all students take snacks in the campus, the
anticipated growth in this industry will be notable. Current trend is that no
notable new industry has been entered in this area. In near future we are planning
to launch our chain ‘Pitha-Hut’ in all over Dhaka. Within 20 years we will
extend our brand in the whole country.
Analysis of Competitors:
Within this market we have some strong competitors like DUCSU, TSC, Shadow,
Various hall canteens, various faculty canteen and several hawkers and so on. But
as we are going to start with the conventional local food, we don’t have such
type of strong competitors. It is stable business because it is related with
appetite. So it is appropriate business to enter. Exit barrier is low, so
certainly it is an attractive segment of market to choose. Actually those above
mentioned shops are our nearest competitors. However, these existing
competitors are focusing on the only fast foods or lunch. On the other hand,
these competitor's products are not according to the standard quality.
Why we will win over competitors?
We will be able to capture the larger portion of the market because we
are doing something different by providing traditional pithas to the market. On
the other hand our quality will be high enough to attract customer and customer
can get quality food at a comparatively low price. As it is a mobile
restaurant, we can also provide place convenience.
Market Situation Analysis
Every business
has its own
features on which
the chances to
be successful depends.
For measuring the potentiality and the risk of a new business we need to
make the proper use of SWOT analysis. By this analysis we can evaluate the
strength, weakness, opportunity and threat. We are starting with
the strength of our plan.
Our
Strengths:
We are going
to deal with the seasonal Bangladeshi foods, which are known to us as 'Pitha'.
Traditionally we have many seasonal pithas. We have pithas in winter season; we
have pithas in
summer and also in spring. The main advantages of our plan can be categorized
in two ways. One is cost effective and another
one is health consciousness. Our
conventional seasonal foods are always very much popular among the people. But
now-a-days, people lose their
attraction toward pithas because of its unavailability. For that reason, we
concern that problem. And also
specialized skill is needed for making these foods. We have such special cooks for preparing delicious
pithas and this is ours main strength. We will reach all the pithas to the
customers as like as fast foods.
Our
Weaknesses:
In this business, we found very
few weaknesses. But they are significant. Some pithas can be prepared in winter only, cannot be made in summer. Because of
the unavailability of some core ingredients, some pithas cannot be prepared all
the time. So, this is our problem. We cannot
provide our best effort through the whole year. Another weakness is that our
ingredients come from natural resources those are not available in urban
areas. We have to get those things from rural or sub-rural areas. For this we
need to have strong chain of suppliers. But
for maintaining those suppliers and also because of the distance we have to spend a lot that will certainly minimize
the profit. Diversity of taste can be
weakness in a sense. We have to be
diversified for the changing demand. So
in this case, we need to be a little bit innovative.
Our
Opportunities:
We have huge
opportunities in this business. Because people are very fond of those conventional
pithas. One problem is there and that is unavailability. Sometimes people get
those pithas,
but the sources are very unhealthy. There is no brand pitha industry in this
field. So, these all things are opportunities from our surrounding market and
for those opportunities we thought for that business. So 'Pitha-Hut' is going
to be the brand name of our seasonal pitha. Nowadays,
people are much more health conscious, so many of them are trying to leave
those
fast foods with high cholesterol, but they have no substitute products to take. ‘Pitha-Hut’ is going to be for that replacement. And pithas aren't junk food. So people will get more attraction to these pithas.
fast foods with high cholesterol, but they have no substitute products to take. ‘Pitha-Hut’ is going to be for that replacement. And pithas aren't junk food. So people will get more attraction to these pithas.
Our Threats:
We are going to enter into a
highly competitive segment of food market. We will have to face a lot of
threats. Our major competitors will be the fast food shops. They already have
diversified product lines and also they are capturing the major portion of the
market. Our other threat can come from bakeries, pastry shops and a bit from
restaurants. Bakeries and pastry shops are
producing and serving some food items that made the need of the loyal customer whom we have targeted. Restaurants are dealing
with the customers with limited earning. So, all these things are proved to be the threat for that new business.
Market Segmentation:
Here our target market will be student and visitors coming to the campus
area of the University of Dhaka. And we targeted those who have attraction for
pithas. We did a survey for finding out our targeted market. Maximum choose
pithas as their leisure foods.
Industry
forecast:
From a long time, students are
complaining about the quality of the food and they are also complaining about
the high price of the product. We will be successful as we will try to overcome
all the limitations that competitors facing.
Description of Venture
Product:
We are offering
variety of pithas in our venture. Products are characterized below-
1) Chitui/chitoi piṭha, 2) Teler
piṭha, 3) Bhapa piṭha/dhupi, 4) Pakan
piṭha: fried,
5) Puli piṭha: dumplings, 6)
Beni piṭha, 7) Dudher piṭha /bhija piṭha, 8) Chôndro puli,
9) Muger puli, 10) Dudh puli, 11) Paṭi shapta, 12) Mug pakon, 13) Gokul, 14) Chui Pitha,
15) Ras pitha, 16) Bibi Khana Pitha, 17) Malpoa
Pitha, 18) Dhup Pitha, 19)Bora Pitha, 20)Ful Pitha
Location and size of the Business:
As ours is a mobile
restaurant, there will be no specific location. But primarily, we select TSC
area and Mall Square. We will use caravan to carry our products to these
locations. As we have some financial limitations, we will lease caravan at
least for three years. Mall square and TSC area will be the right place for our
business. As most students get together here for various purposes, there is
more possibility of sales. On the other hand, TSC area is very popular for the
visitors to pass their leisure time.
Office equipment and personnel:
For operating this business,
we will need at least two experienced skilled cooks for preparing various
delicious traditional pithas. On the other hand, we will hire at least four
moderately educated, smart, young employees for selling and distributing
purpose. Two of them will be male and rest two will be female and their dress
code will be traditional. As equipment for preparing traditional pithas are not
so much high. We will purchase the equipment in case of necessity.
Background of entrepreneurs:
We don’t have that
much business experience as we are doing study in business school. The thing we
have that is business knowledge. We just can apply our theoretical knowledge in
our success. We don’t have any practical management experiences. But we will
take help from different sources for our success.
Why will we be successful in this venture?
Actually most of
the students of this University feel the necessity of quality food at a
comparatively reasonable price. On behalf of the students of this campus, we
want to overcome this problem and establish ourselves as successful
entrepreneurs.
We will be
successful in this business because we are trying to focus on the needs and
desires of the customers. Because of quality and cost effectiveness, we will be
different in our market.
Production Plan
Manufacturing Process:
Our experienced
personnel will maintain all the manufacturing processes and we, all the
co-owners, will supervise them personally. Our operational process will be in
two phases. Some products will be prepared in our factory building and the rest
will be in our mobile restaurant.
Physical Plant:
At the beginning
of our venture, we have very small management for our physical plants. But we
have the plan to increase ours physical plants in near future. Initially, we
will lease a factory having space of 15ft width and 20ft length. We have all
the facilities in our factory building which are used in preparing pithas. We
will also purchase a van (caravan) for distributing and selling our products to
the customers.
Machinery and Equipment:
As our product is food based, we need
machineries and equipment that are used for preparing foods. We will need
microwaves, ovens, warming and holding equipment, filters, blenders and some
other necessary utensils for preparing our products.
Names of Suppliers of Raw materials:
We should build a strong chain of suppliers who can
supply us the ingredients we need to make those
seasonal pithas. As our ingredients are very much natural we have to depend a
lot on the rural areas. So for the availability of those
ingredients, we must have a strong and skilled line of suppliers. Those
products are highly perishable. So transportation facilities and timely
distribution of those items should be ensured. That's why
skilled suppliers are needed.
Our potential suppliers will be the following
people because we will get better service from those suppliers.
1. Rahman Mia from Kawranbazar will supply us flour from his flour mill.
2. Kalu from
Shantinagar will supply us milk from his own dairy firm
3. We will get paddy supply from ‘Jahid’s Store' from Khulna.
4. Morshed Gazi
from Narashindhi will supply us date juice in winter season.
5. IbrahimMolla from Jessore will supply our
necessary coconuts.
6. KashemHawladar from Kustia will supply
sugar/gur.
7. We have contracted with ‘Vai Vai Store’ from Dhaka New Market for our other commodities.
Marketing &Promotional Plan
Marketing and promotion is one of the essential
part of any new business venture. Here we will describe several controllable
tools to promote our new brand ‘Pitha-Hut’.
Pricing:
We will follow the
cost leadership pricing strategy because we are the new entrance in the market.
If we want to compete with the existing competitors and to attract our targeted
customers, we should follow the cost leadership strategy. On the other hand, as
our targeted customers are students and visitors of University of Dhaka, they
will also consider price as a criterion for purchase. Though we are using cost
leadership strategy, our primary focus will also be on the quality of the
product. In this case, we can call this the method as differentiation strategy.
Here, we will use markup pricing method.
Distribution:
After producing the
product, we will deliver the prepared product to our mobile restaurant; from
there we will directly sell to the customers. Actually, we will reach our
customers for giving them our quality services.
Promotion:
We will use the
following promotional techniques for our targeted sales-
1. Pestering, 2. Banners, 3. Festival discount, 4. Discount Lift lets,
5. Sound marketing, 6. Buzz marketing, 7.Ballon marketing
Controls:
For controlling our
marketing operations effectively, we will try to get feedback from customers. Customers
will be given the chance for complaints about our products and according to the
complaints and suggestions we will take corrective actions. Thus we will
control our marketing operations.
Organizational Plan
Form
of Ownership:
Business
can’t run without proper management system. So, we have built a structured form
of ownership. As we six friends thought for that venture, so we preferred for ‘partnership venture’. We all will work
as a partner.
Identification of partners or principal
shareholders:
Partners
and shareholders of ‘Pitha-Hut’ are in the following-
1. Md. Afsanul, 2.
Md. IrfanulHaq,
3. Shaikh Md rasel,
4. Asaduzzaman,
5.
Md. MurshedulAlam, 6.
Md. Saddam Hossain
Authority
of principals:
We
are very much concerned of our management body of our venture. We have a flat
management structure. That is given in the following-
1) Chief
Executive Officer (CEO) - Md. Afsanul Hossain,
2) Financial
Manager - Md. Irfanul Haq,
3) Production
Manager – Asaduzzaman,
4) Marketing Manager - Shaikh Md. Rasel,
5) HR Manager - Md. Saddam
Hossoin,
6) Supply Chain
Manager - Md. Murshedul Alam
Management-team
Background:
We are
students still. So we don’t have that much skill of management. As we are the
students of business school, we have broad concept about business and marketing
activities. Hopefully, it will help us in our business to run it properly. One
of our partners has managerial skills. In shortly, this is the first time we
are doing business. But we think our venture will be fruitful for our unique
business plan.
Roles and Responsibilities of Partners:
As it is a
partnership venture, we must have to co-operative to each other. We will follow
all the rules of partnership venture. And responsibilities of all the partners
are mentioned in the above.
Assessment of Risk
Every new venture
will be faced with some potential hazards. We also face some risks in this
industry and competitive environment.
Evaluating weakness of business:
It is important to
assess the weakness and prepare an effective strategy to deal with them. Some
issues are related to this
1. Raw material limitations in various
seasons
2. Lack of available urban suppliers
3. Lack of chilly food taste
4. Financial limitation for brand
promotion
New technology:
In this industry,
there are not so much modern technologies for use. From this perspective of new
technology we will not have to face so much risk. But we have used necessary
tools for preparing pithas.
Contingency plan:
To overcome our weaknesses we have found out
several measures. They are as follows-
1.
Nutrition Test: We
will setup a
nutrition test facility
to maintain and
observe the
nutritious power of our foods. As we are concerned with our customers' well-being, we
are very much conscious about the nutrition of our foods.
nutritious power of our foods. As we are concerned with our customers' well-being, we
are very much conscious about the nutrition of our foods.
2. Test of Healthiness: We will
make comparison the healthiness of all foods will be under
our service. Because the more healthy food we will serve people will get more interested
with our items. And this will be a plus point for our business.
our service. Because the more healthy food we will serve people will get more interested
with our items. And this will be a plus point for our business.
3.
New Recipes: We will search for new recipes, new ways of serving foods,
or new type of
food which can make a run in parallel to our products. Because innovation creates some
extra images and people are fond of something new. So we will arrange some recipe
contest or new food idea hunt type program to make this in a chain.
food which can make a run in parallel to our products. Because innovation creates some
extra images and people are fond of something new. So we will arrange some recipe
contest or new food idea hunt type program to make this in a chain.
Financial Plan
Pro-forma
Balance Sheet of
‘Pitha-Huts’
|
Assets
|
Tk
|
Liabilities
|
Tk
|
|
Van
Cash
Factory
building
Manufacturing
equipment
Total
|
300,000
50,000
150,000
100,000
|
Capital
Loan
Total
|
400,000
200,000
|
|
600,000
|
600,000
|
||
|
|
|
Depreciation
Costs for Every Year within a Five Years Period
|
Years
|
1st
Year
|
2nd
Year
|
3rd
Year
|
4th
Year
|
5th
Year
|
|
Depreciation
|
180,000
|
126,000
|
88,200
|
61,740
|
205,800
|
Expenditures
for the Yearly Basis
|
Expenditure
|
1st
Year
|
2nd
Year
|
3rd
Year
|
4th
Year
|
5th
Year
|
|
Rent
Administrative
Salaries
Depreciation
Materials
Others
|
30,000
40,000
384,000
180,000
100,000
15,000
|
30,000
42,000
387,000
126,000
110,000
18,000
|
30,000
45,700
390,000
88,200
115,000
20,000
|
30,000
51,200
392,000
61,740
120,000
22,000
|
30,000
53,600
395,000
205,800
130,000
25,000
|
|
Totals
|
749,000
|
713,000
|
692,900
|
676,940
|
839,400
|
Revenue Calculation for the Years
|
Years
|
1st
|
2nd
|
3rd
|
4th
|
5th
|
|
Costs
|
749,000
|
713000
|
692900
|
676940
|
839400
|
|
Revenues
|
780000
|
1100000
|
1350000
|
1660000
|
2225000
|
Break-Even Point Calculation for on Daily Basis
Break-even cost = Total Variable Costs / Number of days
= 749000/365= 2052
Break Even Revenue=
2052Tk
Break Even Sales
Volume= 250units (summation of the followings)
o
Vapa phita
(50 unit*10Tk) = 500Tk
o
Pathisapta
phita (50unit*10Tk) = 500Tk
o
Puli phita (17unit*5Tk)
= 85Tk
o
Sweet Phita
(50unit*10Tk) = 500Tk
o
Chitoi
Phita (30unit*8Tk) = 240Tk
o
Others
Phita (45units*10Tk) = 450Tk
Target Revenue for 1st
year on Daily Basis=780000Tk/365days=2200Tk
Target Sales Volume for 1st
year on Daily Basis=260units
In the above all calculations, we
show ours total expenditures, revenues and the expected return over the years.
And it is certain that we can pick up our one year’s expense if we can make
sale of BDT 2052. Our business plan will be effective if we can apply all our
strengths properly. At the same time, we have to find better solutions for our
recognized weakness.
The End
Appendix
Consumers Attitude toward
Bangladeshi Traditional Pithas
Market Research Survey
Name: …………………………………
Address: ………………………………..
Age: …………………………………...
Contact No: ……………………………
1. If our
new product were available today, how likely would you be to use it instead of
competing products currently available from other companies?
a)
extremely like, b) moderately like, c) like,
d) dislike, e) extremely dislike
2. If you
are not likely to taste our pithas. Why not?
a)
do not need a service like this, b) do not want a service this, c) satisfied with
competing services currently available, d) Cannot pay for
a service like this, e)Not willing to pay for a service
like this.
3. How
important is convenience when choosing this type of pitha?
a) extremely
important, b) very important, c)moderately important, d)slightly important
4.
Overall, are you satisfied with your experience using our new product, neither
satisfied or dissatisfied with it, or dissatisfied with it?
a)
extremely satisfied, b) very satisfied, c)slightly satisfied, d)neither satisfied nor dissatisfied, e)extremely dissatisfied, f)slightly dissatisfied
5.
If our new service were available today, how likely would you be to use it
instead of competing services currently available from other companies?
a)
extremely likely, b) very likely, c) moderately likely, d) slightly likely, e) not at all likely
6.
If you are not likely to use our new service, why not?
a)
do not need a service like this, b)do
not want a service this, c) Satisfied
with competing services currently available,
d) cannot pay for a service like this,
e)Not willing to pay for a service like this.
7.
How important is convenience when choosing this type of service?
a)
extremely important, b) very important, c) moderately important, d) slightly important, e) not at all important.
8.
Overall, are you satisfied with your experience using our new service, neither
satisfied or dissatisfied with it, or dissatisfied with it?
a)
extremely
satisfied, b) very satisfied, c) slightly satisfied, d) neither satisfied nor dissatisfied, e) extremely dissatisfied, f) slightly dissatisfied
9.
If our new service were available today, how likely would you be to recommend
it to others?
a) extremely likely, b) very likely, c) moderately likely, d) slightly likely, e) not at all likely
Sample Price Menu
Items Price (Tk.)
Sweet Pitha:
Vapa Pitha 10/=
Patishapta Pitha 10/=
Semai pitha cooked by gur (per plate) 10/=
Takti Pitha 5/=
Pooli Pitha 8/=
Nakshi Fula 15/=
Ras Chitai 12/=
Dudh Chitai 10/=
Chilly
Pithas:
Jhal Pooli 8/=
Dim Makhan 10/=
Jali Pitha 8/=
Jhal Takti 5/=
Spicy Pithas:
Vaja Pooli
8/=
Vaja Patishapta 10/=
Shukna Chitai 8/=
Shukna Chitai with chicken 20/=
Pan Pitha 5/=
Fluid Items:
Coconut Water 5/=
Bel Sharbat 8/=
Lebu Sharbat 5/=
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