Description
One of the three zones into which the earth is divided to show the variations of the F2 layer in respect to longitude when one is making frequency predictions; it roughly covers Asia, Australia, the Philippines, and Japan.
INTRODUCTION
With globalization spreading its wing like never before and the economy soaring to new levels, the common man has more to cheer about. As a result of this uptrend in nearly all the sectors of the Indian economy, the disposable income has increased over the years and people’s spending pattern have also gone on the rise. The Indian middle class has been the architect of this glorious change. Ranchi, with its maximum population stratified into the middle class segment, has huge potential. The spending patterns have gone up considerably in the last few years. But the lack of proper spending avenues is something that the people are facing here. The unavailability of a place where people of all age group can spend some quality time is something that people of Ranchi are facing. It is at this juncture where we propose to provide a solution to this problem. We propose to set up a place where, from food to entertainment everything is provided under one roof. Our proposed business would be called the THE “?” ZONE. The concept would consist of two things; first, it would have two food outlets, namely BARISTA and MAMA MIA, which are big brand names in India and it would also consist of a gaming arena. Barista and Mama Mia would cater to the food requirements of the customers and the gaming arena would be meant for the game-buffs. Since we are streaming two sectors together and the concept is new in Ranchi, therefore it would generate good demand and the addition of brands would add to the demand of this concept. THE ? ZONE would be the answer to the problems of the residents of Ranchi. The gaming mood is fast catching on the residents of Ranchi and to tap this growing demand and to provide a suitable place for playing these high-definition games, we will be setting up an advanced gaming arena. It would consist of an additional feature that is the bowling alley, which would be the first of its kind in Ranchi.
The idea stands fresh because for the first time people will be experiencing the concept food with entertainment and this stands our competitive advantage. Demand is good for this sector and people are ready to try out this idea.
OBJECTIVE OF THE BUSINESS PLAN
Every entrepreneur has an underlying objective or motive when he or she proposes a business idea. In the same manner we too have an objective behind choosing the THE “?” ZONE, as our proposed idea. The basic objective of proposing this idea is that, this is a new concept in the developing cities like Ranchi, Jamshedpur, and Bokaro etc. We do have these concepts in the urban metro cities but this idea has not yet been tested in the cities following the footsteps of the metros. So it rather gives the idea a fresh look and a sense of anticipation is attached to it. Another reason as to why we took up this project lies in the fact that since it’s a new concept in Ranchi it doesn’t have great competition in this line. You do have individual outlets, some providing food, some gaming but they do not provide all the things under one roof. So it lends a good amount of competitive advantage to us. The spending patterns have also increased over the years in Ranchi, as the income levels have gone up in the city in the recent years. Therefore people are finding new avenues for spending; This lends the necessary demand in the market.
PURPOSE OF THE PROJECT
The purpose of the project can be illustrated from the point of view of the customers, ours i.e. the entrepreneurs, and the society. FROM THE CUSTOMERS POINT OF VIEW: 1)To provide customers with a good ambience and quality food. 2)To provide entertainment and food under one roof. 3)To provide a place where people of all age group can sit and enjoy together. FROM THE ENTREPRENEURS POINT OF VIEW: 1)To earn profit. 2)To start a business this is one of its kind in the city. 3)Through this project we intend to increase the existing goodwill of Ranchi in the national arena. FROM THE SOCITIES POINT OF VIEW: 1)Larger and better employment opportunities. 2)Better hygiene provided. 3)A calm and serene environment where people can spend some quality time with their family and friends.
KEY CHARACTERISTICS OF THE BUSINESS
Since our business rests on the concept of “from food to entertainment, all under one roof”, therefore it has some basic underlying characteristics. The key characteristics that underline our business are as follows -: 1) Customers get all the facilities of food and entertainment under one roof. 2) 3) It’s meant for people of all age group. Good quality of food at fair price.
4) Customers get a wide variety of options to choose from. 5) Reputed brand names like Barista and Mama Mai cater to the requirements of the customers. 6) Quick and prompt service.
7) Prices charged for the games are not exhorbitant. 8) Free gifts and discounts provided on certain days. 9) Well maintained and clean space provided to the customers to enjoy the time spent there.
LOCATION
The location of a business site is detrimental to the success or failure of any business. The business site or location has to be selected after careful planning and thinking. For a business to run or operate successfully, it has to have several features:1) Firstly it should be located in such a place that is convenient for all the customers to reach. 2) Secondly the location should be in the heart of the city or around it. 3) Thirdly proper modes of transportation should be available to reach that place. 4) Fourthly the place in and around the business site should be well developed, neat and clean. 5) Fifthly the facilities of proper electricity, water connection and security concerns should be taken care of. These are some of the basic features that a business location should have. Taking all these basic features into considerations, the place that we have decided to set up our business is
Near the Adivasi Boys Hostel Morabadi Ground Ranchi
We came up with some other places too such as Bariatu, Deepatoli, and Main road; but as per our survey and as per the basic features, the sight chosen by us came to be of prime interest. It complies with all the grass-root level requirements and thus is the best possible place for setting up the proposed business.
CONSUMER TRENDS
The consumer trends vary as per the two sectors. Consumer trends represent the behavior of the consumers towards both the sectors in the past and the present. Since we are setting up the business in Ranchi, therefore the consumer trend tends to be different from that of the other places. In Ranchi the gaming fever is just catching on and more and more people are getting involved in this. But the unavailability of a proper gaming parlour is the major problem faced by the people here. There is a good demand for such a proper gaming arena and opening up a fully furnished gaming parlour would give the people of Ranchi what they want. Ranchi is blessed with good restaurants but to get food and entertainment under one roof is something that the people of Ranchi have not witnessed yet. People here want a joint where they can come with their family and spend some quality and peaceful time. A proper, calm and relaxed atmosphere is something that the people want and our fun center provides them with the right kind of atmosphere. People in Ranchi have been spending relentlessly on dining and things of entertainment purpose, so the THE ? ZONE with its unique features gives the people here exactly what they want; A place meant for kids to people of any age group.
ECONOMIC TRENDS
Since we have combined two sectors together under one roof therefore the economic trends tend to vary for both these sectors. But the one similarity between these two sectors is the fact that both show a positive change. As the standards of living of the people have changed drastically over the past 1015 years, the impact is also seen in the standard of living of the people of Ranchi. People are now more prone to spend because the income levels have also increased and more importantly, people are willing to spend. The Indian hospitality industry and the gaming industry are just few of the many examples. The Indian hospitality industry has grown at a staggering rate and the growth rate is expected to be 8% between 2007 and 2016. Major investments are being made in this sector. In Ranchi itself, big projects are being undertaken and people are responding favorably to this change. But still the people of Ranchi yearn for more quality space to spend some time, and it is here, where we provide them with the solution to this problem. In a similar manner the Indian gaming industry is poised at high growth levels. This sector has picked up pace in the last few years and is set to be one of fastest growing sectors in the Indian market. Research organizations predict that this sector will hit $300 million by 2009. In Ranchi itself the craze of high entertainment video games is increasing with more and more youngsters getting into it. But the lack of a proper place and proper equipments are not allowing the youngsters to get what they want and thus it gives us an opportunity to provide them with what they want. Thus there is scope for improvement in this sector in Ranchi.
SOCIAL CONSIDERATIONS
In today’s fast-paced environment, where there is cut-throat competition and people are too busy to give themselves that extra edge, seldom does a man get a chance to get together with his family. Even when he does, the choice of spending some quality time with his family is very limited. In Ranchi, where we propose to set up our business, people are always finding that one particular space where each and every member of his family is satisfied. With the proposed idea of the fun center, we try to take just one small step in this direction of providing people with solution to this baffling question. The fun center not only provides solution to the needs of the families but to people of all age group. With the fun center coming up, people can find solace and can keep away from their tensions for some time. Through the creation of the fun center we try to help the people of Ranchi to spend some good and memorable time. The concept is appealing to all the age groups and with so many big brand names under one roof; we surely try to give everyone what they desire. way. Thus in a way, the society is helped in a better
INDUSTRY ANALYSIS
An overview of the industry:
Our fun center boasts of a restaurant, a bowling alley, pool games and high entertainment video games. Since we provide food and gaming under one roof, therefore it is important to have an overview of what these two sectors are all about and how are they shaping up for the future challenges. The gaming industry is one of the fastest growing industries in the world today and employs thousands of people worldwide. Also known as interactive entertainment, this sector was once known as a niche market. But over the years it has grown remarkably not only outside India but also in India. India is fast emerging as a key one-stop destination for game development with research firm AC Nielsen estimating the Indian gaming market to hit $300 million by end of 2009. The future of the Indian gaming industry looks bright. The growth of this sector has attracted publishers, developers, animators and content providers and is also stimulating the development of innovative business models. In the similar manner the hotel industry seems to be growing at a fairly good pace and gives bright indications for the future.
Hospitality is about serving the guests to provide them with "feelgood-effect". "Athithi Devo Bhavha" (Guest is God) has been one of central tenets of Indian culture since times immemorial. In India, the guest is treated with utmost warmth and respect and is provided the best services. Today hospitality sector is one of the fastest growing sectors in India. It is expected to grow at the rate of 8% between 2007 and 2016. Many international hotels including Sheraton, Hyatt, Radisson, Meridien, Four Seasons Regent, and Marriott International are already established in the Indian markets and are still expanding.
ORGANISATIONAL STRUCTURE
Since the concept and execution of our business requires large amount of funds and the arrangement of finance is of prime importance as it forms the life blood of any business and helps in sustaining the operational process; therefore, we decided to set up the business in PARTNERSHIP. The estimated breakdown of the cost is as follows:-
• ESTIMATED EXPENDITURE – Rs 9700000 • NUMBER OF PARTNERS – 3 • EACH PARTNERS CONTRIBUTION –
• Mr. Shreedhar Mohta: -Rs 35 lacs • Mr. Anurag Singh: -Rs 11 lacs plus providing a loan of Rs 10 lacs • Mr. Ankush Bhattacharya: Rs 11 lacs
PARTNERSHIP DEED
Since partnership is the outcome of an agreement, it is essential that there must be some terms and conditions agreed upon by all the partners. Such terms and conditions may be oral or written. Such a written document which contains the terms and conditions of agreement is called ‘PARTNERSHIP DEED’. It is also called ‘Articles Of Partnership’. The following are the contents of the partnership deed of our proposed business.
1) NAME AND ADDRESS OF THE BUSINESS: Our business would be called THE “?” ZONE and would be set up near of the Adivasi’s Boy’s hostel, near Morabadi ground. 2) NAME AND ADDRESS OF THE PARTNERS : The names of the partners are as following :• Mr. Shreedhar Mohta: - Flat no-5G, Sri Gopal Complex, Kutchery Road, Ranchi-834001. • Mr. Anurag Singh:- 1C-91, N.T.S Barkakana, Ramgarh-829103 • Mr. Ankush Bhattacharya: - 107, Baeadwari, Sakchi, Jamshedpur-831001. 3) Amount to be contributed by each partner : The amount to be contributed by each partner is as :Shreedhar Mohta – Rs 35 lacs {as asset building} Anurag Singh - Rs 10 lacs as partners loan and 11 lacs cash Ankush Bhattacharya – Rs 11 lacs cash 4) PROFIT SHARING RATIO: The profit sharing ratio of each partner will be 3:1:1.
5) Accounting period of the firm: The accounting period of the firm starts from 1st April of a year and ends on the 31st March of a year. 6) METHOD OF ACCOUNTING FIRMS RECORDS: The record of the firms account would be stored through journal entries, ledger a/c, cash flow, trading and profit loss a/c, balance sheet and other books of account. 7) AUDITING: The Partnership account would be audited on a half- yearly basis. And the auditor would be chosen by the promoters of the company. 8) DATE OF COMMENCEMENT OF THE PARTNERSHIP: The partnership would commence on 1st April. 9) DURATION OF THE PARTNERSHIP: The partnership would be dissolved either on the death of a partner or on the retirement of a partner. 10) BANK ACCOUNT: A bank account will be opened in the name of the firm and all the three partners will have the right to sign the cheques. 11) SETTLEMENT OF DISPUTES: In case of disputes, the disputes will be solved by hiring an ARBITRATOR. 12) Interest on loan: Interest on loan would be provided @ 7.5% Per Annum.
HUMAN RESOURCE
PRINCIPAL MANAGEMENT: The principal management of the entire organization vests in the hands of the PARTNERS. They are responsible for the entire working and functioning of the organization. They are accountable for everything that goes on inside the business and are thus the pillars of strength of the business. Apart from the promoters, some powers are also vested in the hands of the managers and staff coordinators. The managers look after the working of the day to day operations of the business and are accountable to their senior managers. The food court manager, restaurant manager and gaming floor manager look after the functioning of their assistant managers and staff coordinators. STAFF: Since our business is diverse in some ways, therefore it requires a lot of staff or human resource to make it function effectively and efficiently. In short the staff forms the backbone of the business, as the goodwill of the business depends, to an extent, on the way the services are provided to customers, apart from other things. Since our business is divided into three tiers, therefore the requirement of staff is at all the three levels, but more so in the gaming arena and the restaurant floor. Even for the proper cleanliness and sanitation, we need to hire staff. The gaming arena requires people who are well averse to use of video games, pool, bowling etc. Proper technical staff is also
required in case of breakdown of any machine. The restaurant floor also requires efficient staff for wide range of purposes. Thus the need of staff is imminent at all the levels and their importance cannot be neglected. DUTIES AND RESPONSIBILITIES: Since the project involves different faces to it, therefore the duties and responsibilities attached to it are also many. The duties and responsibilities vary as per the persons. From the top level itself, the promoters have the responsibility of looking after the entire working of the business. It is their duty to see whether the business is proceeding on the lines that they proposed. In a similar manner, the managers i.e. the restaurant manager, the food court manager and the restaurant manager have their set of duties and responsibilities. They have the task of looking after the day to day management of the business. They have to see whether the services are being provided in a proper way, whether the customer’s order are being taken properly etc. Even the accountants have the responsibilities of looking after the day to day finances. They have to keep a track of the everyday earnings of the business individually for each section of the business and be accountable to their respective managers. The staff coordinators and the individual food court coordinators have the duty of looking after the
functioning of the staffs employed. They have fix the parameters of working of the lower level staffs.
HUMAN RESOURCE Marketing Finance Bowling Staff Pool Staff Guard Cleaning staff Head Cooks 2 1 5 5 2 3 3
Marketing will be looked jointly after by Mr. Anurag Singh and Mr. Ankush Bhattacharya the advertising and promotional strategies – how to market the product, where to put the hoardings. She will be basically concerned with all the marketing functions. Finance will be looked after by Mr. Shreedhar Mohta and will also store and maintain the records pertaining to different transactions.
Guard will be performing the functions of doorkeeper, so as to welcome the customers and will also look after the security of the showroom. Cleaning personnel will be there purpose of cleaning the showroom. for the
850 sq ft
50 ft
1050 sq ft
40 ft
15 ft
5 ft
30 ft
40 ft
MARKETING PART
Market Strategy
1. Pre-launch 2. Launch 3. Post-launch
Pre-Launch
• The main idea behind pre-launch strategy is to bring awareness among the people regarding the opening of a zone which provide them with both gaming and fooding. • We are using both print media and electronic media. • Print media includes- pamphlets and advertorials. • Since pamphlets are most cheap mode of advertisements as it cost 20p/piece, We will distribute pamphlets in Times of India and Prabhat Khabar(local newspaper), at selective colleges like B.I.T Lalpur, Ranchi Women’s college, St.Xaviers, Gossner and B.I.T Mesra and also at the gates of some complex like G.E.L Church Complex, Amravati Complex, Sri Gopal Complex and R-Mart. • Advertisement in local newspapers like Prabhat Khabar and I-Next. • Our electronic media includes radio and in local channels.
Launch
• Launch strategy is one of the most important strategies of marketing. The way you launch your product/business declares your customer attraction capability. As coming of customers gives you a chance to prove your potential, your launch will define how much customer you can bring in. • We are adding banners at this phase to our advertising mode. Banners at major cross over points to the entrants of Ranchi: Main road, Overbridge, Ratu Road, Purlia road, station road, etc. and some banners at both bus stands and auto stands. This will be done before 10 days of launch. • We will also give advertisement on radio and local channels regarding Inauguration, at least before 3 days of inauguration. • Inauguration by some celebrity like M.S. Dhoni. As he is from Ranchi and he is the most popular youth icon among people of Ranchi. • We are going to give 60%discount on gaming for first 3 days. It will cost maximum of 5400*3=16,200.
Post-Launch
• This is a usual mentality of people (especially Ranchi) to visit a new market or place for first few days or first 1-2 weeks of their inauguration, since these are mostly offer/discount period. In order to bring back customer to our shop on a regular/continuous basis we are using this strategy. • As weekends are the times to attract maximum customers. We can place various offers to our customers. • We can organize some kind of competition at our gaming zone, with a declaration of some cash prizes (like Rs.500 to 1st and Rs.300 to 2nd) or a food zone coupon of certain amount. • After consulting with all restaurants of our food zone .We can announce some discount time period for our food zone (like from 2p.m-5p.m) on one of the weekend days. • As per people wish they can get some gaming coupon or a food zone coupon on a bill of Rs.1500 or more on any day, which they can use on any of the week day (except Saturday and Sunday). • Any bill exceeding Rs.500 in game zone will get half an hour free play on any of the games.
Interpretation From the graph we see that our expected customers are laying maximum stress on the factors like quality, variety and name & good will factors. So we need to pay acute attention toward these factors. The quality is strictly maintained and the variety of food provided will definitely give a way to name & good will.
90% 80% 70% 60% 50% 55%
85% 75%
90% 80%
55%
t s o C
40% 30% 20% 10% 0% price quality ambience n ame & g.will ads variety
Factors which emphasis the customer visiting
Market Factors
These include the factor which decides the growth of a business. It is of utmost necessity to evaluate or calculate these factors individually and carefully. Major factors are? ? ? ? ?
Demand of the product Supply of the product Customer disposable income Customer trend Legal factors
Demand:
Demand is the first major factor which decides the necessity of a business in a market area. Degree of demand is directly proportional to the speed of growth. For analyzing demand of a product we had done survey through questionnaire. Since we had to reach to customers of all kind, we had done survey at four locations; these are atChurch complex, Eylex, St.Xaviers Ranchi and B.I.T Lalpur. students, 150 families and We had done include
survey of total 400 people among which 150 are rest100 businessmen and others. After interpretation of the
survey we find that most of the people are in favour of getting the facility of entertainment and fooding under the same roof.
Supply of product
After determining the demand for our product, we have to determine the sources which can provide us with cheap and quality material. We are bringing our all gaming setup from Kolkata (Allipur) and for our food zone we will prefer local whole seller as it is feasible in terms of both dealing and transportation. It is also helpful in quickly getting our restaurant’s raw material in case of emergency i.e. unexpected hike in demand of particular food product. We are buying furnitures from Durian and generator from Honda showroom in upper bazaar.
Customer Disposable income
It is defined as a share amount from income, which a customer spends. This is a factor which needs serious consideration before starting any business because this decides the income of a business in the market. Estimated average monthly expenditure on entertainment and outside fooding is minimum of 15 %( approx.).
Consumer trend
As the income and the leaving style of people has grown so to relax they look for some place which can provide them with food to fun under a single roof . It is hectic schedule of people which also motivate them to invest on their entertainment and eating without of much thinking.
Legal factors
Market legal factor includes contract with companies like Barista and Mama Mia to whom we are renting outlets. This factor also includes food quality license for our restaurant.
Target Market The target market (also called the served market) is the part of the qualified available market the business decides to rule. The various market sectors and their share are explained through the graph? Family ? Businessmen ? Students ? Others
5%
Ta rg e tMa rk e t
25% 5% Family Businessmen Students Others
65%
Market Potential
From the survey we found that the average monthly salary of people of Ranchi is between Rs.10,000-20,000 and those of students is between 2500 -3500 while the average monthly expenditure of people of Ranchi on eating and playing is between Rs.4000-7,000 of working class and Rs.1000-2000 of students.
Customer Profile
Our target customer constitute of the middle and upper class. Among working class, our maximum customers are from the income slab of higher than Rs.10, 000. Apart from this students in Ranchi would form an important part of our customer base, as students from in an around Jharkhand mostly come to study here.
Income pattern of our working class (sample size100)
Income pattern of student (sample size 400)
Expenditure pattern of student on THE “?”ZONE
Expenditure pattern of working class on THE “?”ZONE
SWOT ANALYSIS
STRENGHT o o o o o Unique concept Hygiene product Value for money New concept Strategically located
7
WEAKNESS o Limited recognition at starting
OPPERTUNITIES o o First Movers Concept Increase in disposable income o
THREATS Entry possibility
o Imitation easily possible
The overall evaluation of a business strengths, weaknesses, opportunities and threats is called SWOT analysis. The Product
Product is defined as any service, physical goods, events, places, information, properties and ideas that a business or company is providing to the market for the satisfaction of its want and needs.
Description of the product? Our ground floor is a food zone with two different varieties/specialist restaurants. These include Barista and Mama-Mia. We are providing space to these restaurants only for selling their products and a common sitting space for their customers. ? Our 1st floor is a gaming zone which contains game like Bowling, Pool, Snooker and other small video and computer games.
ProductSUNDAE FRAPPE Chocoholic
Muddy Cookies Caffee Freddo Chocossimo Kat
Chunky Cookies Sundae Melting Mud pie & Gelato Sizzling Brownies & Gelato Black Forest Sundae
Caffee Mocha Foresta Nera Kit
Caffee Italiano Dark Twilight Who Cares! (A 100% fat free sundae) Tropical Trio Ferrero Rocher Sundae
Kit Kat Sundae
GELETO CAKE & SEMI FREDDO Cookie Crumble Cake Mixed Berries Cheese cake Mixed Berries Cake Chocolate Gelato Mousse Nutty Nirvana Cake Gelato Truffles Dark Twilight Cake Baileys Cake Kit Kat Cake Treasure Hunt Cake
OTHERS Sicily Lemon Green Apple Wine Grape Passion fruit Tangerine Tropical Ruby Orange Blueberry Honeydew Melon Alphanso Mango Mango Passion Strawberry Tang Limetta Kiwi
Barista is a comfortable place friends, family, strangers, the neighbor’s aunt, well, just about you drop by alone, we have beverages to keep you company.
to spend time with girl next door, her anyone. And even if some of the finest
To begin with, there's the Barista House Blend - our signature blend of coffee and select international coffees from some of the most noted coffee growing regions of the world. Followed by an extensive list of steaming hot espressos, cappuccinos and lattes made from the finest Arabica beans. Barista traces its roots back to the old coffee houses in Italy - the hotbeds of poetry, love, music, writing, revolution and of course, fine coffee. Drawing inspiration from them, we have single-handedly taken on the challenge to open people's eyes to the simple pleasures of coffee and revolutionize the coffee drinking experience in every city that we invade. To live up to this promise, we have employed skilled Italian roastmasters at our roastery in Venice. Sourced only the finest quality Arabicas. And have had our espresso bars designed to reflect a warm, friendly and inviting atmosphere. Add to this, a menu you can ponder over for hours and you have everything you need to escape the pressures of daily life.
BowlingBowling is a Game/Sport in which players attempt to score points by rolling a Bowling Ball along a flat surface either into objects called Pins or to get close to a target ball. There are many forms of bowling, with the earliest dating back to ancient Egypt, while other instances where bowling was first seen can be traced to ancient Finland and Yemen, and much later in 300 A.D. in Germany. Various forms of bowling are-
1. Ten pin bowling 2. Candle pin bowling 3. Duck pin Bowling 4. Five pin bowling 5. Bumper bowling 6. Power wheel chair bowling
SnookerSnooker is a cue sport that is played on a large baize-covered table with pockets in each of the four corners and in the middle of each of the long side cushions. A regulation (full-size) table is 12 ft × 6 ft (3.6 m x 1.8 m). It is played using a cue and snooker balls: one white cue ball, 15 red balls worth one point each, and six balls of different colors (1) Yellow ,(2) Green ,(3) Brown ,(4) Blue (5), Pink (6) and Black (7). A player (or team) wins a frame (individual game) of snooker by scoring more points than the opponent(s), using the cue ball to pot the red and colored balls. A player wins a match when a certain number of frames have been won. The game is generally regarded to
have originated in the latter half of the 19th century.
Other gamesThis sector includes all video, computer and other games. These are like? Air hockey ? Basket ball ? Shooting ? Biking and etc.
AIR HOKEY
Product Pricing
Pricing of a product require consideration on various factors depending upon the characteristics of the product. In our case we are providing various different games as our product for customer’s entertainment and we are applying competitive pricing technique. Although our project also has a food zone but the prices of those product are fixed by their respective company to whom we are renting space for selling their product. The various pricing factors on which we will concentrate are• Competitor’s price- As we are entering new in the market, we have to think of competitor’s prices. It is of utmost necessity that our product’s price must be lower to their prices in order to attract customer towards us and to gain competitive advantage.
• Demand of the product- our survey shows that 66% of people are in search of a place where they can get both food and entertainment at the one place. This factor basically determines the profit percentage we can add to our product. In case we get good response we can increase our profit margin.
• Own cost- Before setting any price we must evaluate our own cost. Evaluation of cost not only includes cost of machinery/material but we have to consider the depreciation rate, rent, cost of other materials like furniture and fixtures, air-conditioner, plasma and etc.
•
Profit margin- after the evaluation of the cost, we should decide the profit margin we want to earn from each sale.
Prices of various product provided by us areBowling
Rs.35*2ppl*1hr ppl*1hr
Snooker and Pool Other games (Computer and video games).
Rs. 90/60* 1 hr Rs. 10/coin
Competition
Competitors are the major challenge that a company faces regularly. We have different competitors in different sectors. Competitors of our food zone are• Mint • Café Coffee Day • Ecstasy • Little Itale Competitors in gaming zone are• Champions • Zapak Gameplex
Sales
According to the survey done it is shown that 66% of the population wants both food and game at a single place. Our survey also shows that 36% of the population likes to go for brand and quality while 38% of the population is in favour of quality material and for the rest 24% it doesn’t matter. From the quality and brand point our customer part constitutes 74% of the population (36%+38%). Since we are providing both food and game at one place with brand and quality, we are expecting a good sale of our product in the market.
Finance Part
PROJECT COST
AMOUNT AMOUNT (Rs.) (Rs.)
PARTICULARS
A. PROJECT COST
1. LAND &BUILDING (With renovation) 2. PLANT & MACHINERY
BOWLING ALLEY [10*200000] POOL & SNOOKER SETS OTHER GAMES MUSIC SYSTEM LCD TV TOKEN MACHINES WATER COOLER ART COOLERS VACCUM CLEANER A.C. (Centralized) COFFEE MACHINES COLD DRINK MACHINES SECURITY SYSTEM CCTV CAMERA'S
4,500,000
4,500,000
2,000,000 300,000 190,000 40,000 208,000 160,000 72,000 240,000 40,000 455,000 120,000 160,000 150,000 175,000 4,310,000
3. FURNITURE
CASH & DISPLAY COUNTER 4 TABLES [4 * 3,000] 88,000
12,000 20 CHAIRS [ 20 * 1,000] 20,000 120,000
4. MISC. ASSETS
FIRE FIGHTING EQUIPMENT 275,000 275,000
5. PRELIMINARY & PRE-OPERATIVE EXPENSES
PRE-LAUNCD ADVETISEMENT CONSULANTY & LEGAL EXPENSES INAUGRATION 6. CURRENT ASSETS STOCK CASH AT BANK CASH IN HAND 15,000 300,000 75,000 390,000 50,000 20,000 35,000 105,000
7. WORKING CAPITAL
[INCLUDING 25% FOR MARGIN MONEY]
-
Rs.9,700,0 00
Means of Finance
1. SHARED CAPITAL SHREEDHAR MOHTA ANKUSH BHATTACHARYA ANURAG SINGH 3,500,000 1,100,000 1,100,000
2. PARTNER'S LOAN 3. TERM LOAN
1,000,000 3,000,000 9,700,000
PARTICULARS
A. SALES REVENUE B. EXPENDITURE / COST
1.RAW MATERIALS 2. ULTILITIES
MACHINERY USAGES CHARGES COMPANY’S SHARE@10% [BARISTA]
I ST YEAR 53,62,1 40
II ND YEAR 50,24,0 40
III RD YEAR 53,93,7 50
6,31,00 0
7,10,60 0
7,72,31 0
1,00,00 0 1,26,50 0 6,96,00 0 75,000 2,15,50 0
1,00,00 0 1,38,00 0 7,65,60 0 75,000 2,15,50 0
1,00,00 0 1,51,80 0 8,42,16 0 45,000 2,15,50 0
3. SALARY & WAGES 4. INTREST ON PARTNER’S LOAN
5. INSURANCE PREMIUM 6. REPAIRS & MAINTAINENCE
BUILDING MAINTAINENCE MACHINERY REPAIRS
1,20,00 0 1,20,00 0 1,45,50 0 22,29,5 00
96,000 1,20,00 0
1,80,00 0 1,80,00 0
7. ADMINISTRATIVE EXPENSES
8. ADVERTISEMENT EXPENSES TOTAL
70,000 22,15,7 00
52,780 25,39,5 50
C. OPERATING PROFIT BEFORE INTEREST, TAX & DEPRECIATION [A-B]
31,32,6 40
28,08,3 40
28,54,2 00
D. FINANCIAL EXPENSES
11.75% INTEREST ON TERM LOAN
3,52,50 0 27,80,1 40 11,36,0 00
3,17,25 0 24,91,0 90 9,90,07 5
2,82,00 0 25,72,2 00 8,63,59 1
GROSS PROFIT AFTER INTEREST & BEFORE TAX & DEPRECIATION E. DEPRECIATION F. PRELIMINARY EXPENSES WRITTEN OFF G. NET PROFIT BEFORE TAX H. TAXABLE INCOME I. TAX PAYABLE J. NET PROFIT K. ADD DEPRECIATION & PRELIMINARY EXPENSES WRITTEN OFF L. CASH SURPLUS
21,000 16,23,1 40
21,000 14,80,0 15
21,000 16,87,6 09
NIL 5,01,55 0 11,21,5 90
NIL 4,57,32 5 10,22,6 90
NIL 5,21,47 1 11,66,1 38
11,57,0 00 22,78,5 90
11,11,0 75 20,33,7 65 3,00,00 0
8,84,59 1 20,50,7 29 3,00,00 0
M. REPAYMENT OF LOAN
300,000
19,78,5 90
17,33,7 65
17,50,7 29
DSCR
III RD YEAR
11,66,1 38
PARTICULARS 1. PROFIT AFTER TAX 2. DEPRECIATION & PRELIMINARY EXPENSES WRITTEN OFF 3. INTEREST ON FCL A. CASH ACCRUAL 4. REPAYMENT OF FCL 5. INTEREST ON FCL B. TOTAL PAYMENT DSCR (A/B) AVERAGE DSCR
I ST YEAR
1,121,59 0
II ND YEAR
1,022,69 0
11,57,00 0
10,11,07 5
8,84,59 1 282,00 0 23,32,7 29 300,00 0 282,00 0 582,00 0
4.008
3,52,500 26,31,09 0
317,250 23,51,01 5
300,000
300,000
352,500
317,250
652,500
4.032
617,250
3.808
73,14,83 4
18,51,75 0
3.950
B.E.P % as per the Installed Capacity
PARTICULARS A. VARIBLE COST RAW MATERIAL & CONSUMABLES UTILITIES SELLING EXPENSES INTEREST ON WORKING CAPITAL WAGES TOTAL B. SEMIVARIABLE / FIXED COST SALARIES [ THE E-ZONE STAFF] REPAIR & MAINTAINENCE 3,72,000 1,20,000 2,16,000 10,73,500 6,31,000 2,26,500 AMOUNT (RS.)
DEPRECIATION INTEREST ON LOAN EXCLUDING WORKING CAPITAL OTHER WORKING EXPENSES RENT + PREMIUM + ADMINISTRATIVE EXPENSES TOTAL C. CONTRIBUTION SALES REVENUE LESS: VARIABLE COST TOTAL B.E.P. AS % PER INSTALLED CAPACITY
11,36,000
352,500
1,20,000 21,00,500
46,89,800 10,73,500 36,16,300
1.7216
Pay Back Period
PROFI
T YEAR AFTER S TAX
DEPRICIATION&PRELI CASH MINARY EXPENSES ACCRU CUMULA WRITTEN OFF ALS TIVE 2,278,59 0 2,278,590 2,012,76 5 4,291,355 4.3010088 721,410 2,012,765
I ST 1,121,5 YEAR 90 II ND 1,022,6 YEAR 90
1,157,000
990,075
The PAY BACK PERIOD will be 1year and 5 months.
Conclusion
The gurus of market say that the prospect and success of a business rests to a large extent on the burgeoning middle class, with rising aspirations and spending power, which will boost consumption oriented growth. Our concept of THE “?”ZONE takes into consideration this factor and the comprehensive survey just proves that the people of Ranchi are ready to experience the delights of this unique business. People in Ranchi want a proper place where everybody has something for them. Since the concept stands new and un-tested, therefore the it lends us the much needed competitive advantage in this sector. There is considerable demand for such a business because the confluence of food and entertainment make this business a unique proposition. We intend to expand our business in the near future to other towns as well and hope to get favourable response from those towns as well. Our expansion plans are targeted for towns such as Jamshedpur, Bokaro and Dhanbad.
Questionnaire for a Customer
[Sample size-500, students-400 and other 100] Name: Age: Gender: a) Male b)Female Mother tongue:____________ Occupation: a) Student b)Working c) Not working College/company name (except not working)___________________________ Marital status: a) Married b)Single Do you have kids in your family? a) Yes b)no
Home Town: a) Ranchi b)Ramgarh c) Jamshedpur d)Other Monthly income of working class: a) More than 30,000 b)Between 20,000-30,000 c) Between 10,000-20,000 d)Less than 10,000 Monthly income of students: a) More than 5000 b)Between 3500-5000 c) Between 2500-3500 d)Less than 2500 Factor that affect your consumption: a) Quality b)Price c) Advertisement d)other What would you prefer?
a) Quality with brand b)Quality c) quality doesn’t matter
Mode of your entertainment: a) playing b)movie c) going to restaurant d)visiting places Would you like to play indoor games? a) Yes b)No Would you like to visit a restaurant? a) Yes b)No If yes, how frequent: a) More than 5 times a month b)3-5 times c) Less than 3 times Monthly expenditure on playing and outside eating of working class:
a) More than 10,000 b)5,000-10,000 c) Less than 5,000 Monthly expenditure on playing and outside eating of students: a) More than 2000 b)Between 1000-2000 c) Less than 1000
Would you playing and dinning at a single place: a) Yes b)Not matter Do you feel the need of e-ZONE? a) Yes b)No Where would you like e-zone to come up? a) Morabadi b)Gandhinagar c) Ashok nagar d)Ratu road How often would you visit e-zone?
a) Daily b)Weekly c) Monthly d)Any other……..
doc_700366025.doc
One of the three zones into which the earth is divided to show the variations of the F2 layer in respect to longitude when one is making frequency predictions; it roughly covers Asia, Australia, the Philippines, and Japan.
INTRODUCTION
With globalization spreading its wing like never before and the economy soaring to new levels, the common man has more to cheer about. As a result of this uptrend in nearly all the sectors of the Indian economy, the disposable income has increased over the years and people’s spending pattern have also gone on the rise. The Indian middle class has been the architect of this glorious change. Ranchi, with its maximum population stratified into the middle class segment, has huge potential. The spending patterns have gone up considerably in the last few years. But the lack of proper spending avenues is something that the people are facing here. The unavailability of a place where people of all age group can spend some quality time is something that people of Ranchi are facing. It is at this juncture where we propose to provide a solution to this problem. We propose to set up a place where, from food to entertainment everything is provided under one roof. Our proposed business would be called the THE “?” ZONE. The concept would consist of two things; first, it would have two food outlets, namely BARISTA and MAMA MIA, which are big brand names in India and it would also consist of a gaming arena. Barista and Mama Mia would cater to the food requirements of the customers and the gaming arena would be meant for the game-buffs. Since we are streaming two sectors together and the concept is new in Ranchi, therefore it would generate good demand and the addition of brands would add to the demand of this concept. THE ? ZONE would be the answer to the problems of the residents of Ranchi. The gaming mood is fast catching on the residents of Ranchi and to tap this growing demand and to provide a suitable place for playing these high-definition games, we will be setting up an advanced gaming arena. It would consist of an additional feature that is the bowling alley, which would be the first of its kind in Ranchi.
The idea stands fresh because for the first time people will be experiencing the concept food with entertainment and this stands our competitive advantage. Demand is good for this sector and people are ready to try out this idea.
OBJECTIVE OF THE BUSINESS PLAN
Every entrepreneur has an underlying objective or motive when he or she proposes a business idea. In the same manner we too have an objective behind choosing the THE “?” ZONE, as our proposed idea. The basic objective of proposing this idea is that, this is a new concept in the developing cities like Ranchi, Jamshedpur, and Bokaro etc. We do have these concepts in the urban metro cities but this idea has not yet been tested in the cities following the footsteps of the metros. So it rather gives the idea a fresh look and a sense of anticipation is attached to it. Another reason as to why we took up this project lies in the fact that since it’s a new concept in Ranchi it doesn’t have great competition in this line. You do have individual outlets, some providing food, some gaming but they do not provide all the things under one roof. So it lends a good amount of competitive advantage to us. The spending patterns have also increased over the years in Ranchi, as the income levels have gone up in the city in the recent years. Therefore people are finding new avenues for spending; This lends the necessary demand in the market.
PURPOSE OF THE PROJECT
The purpose of the project can be illustrated from the point of view of the customers, ours i.e. the entrepreneurs, and the society. FROM THE CUSTOMERS POINT OF VIEW: 1)To provide customers with a good ambience and quality food. 2)To provide entertainment and food under one roof. 3)To provide a place where people of all age group can sit and enjoy together. FROM THE ENTREPRENEURS POINT OF VIEW: 1)To earn profit. 2)To start a business this is one of its kind in the city. 3)Through this project we intend to increase the existing goodwill of Ranchi in the national arena. FROM THE SOCITIES POINT OF VIEW: 1)Larger and better employment opportunities. 2)Better hygiene provided. 3)A calm and serene environment where people can spend some quality time with their family and friends.
KEY CHARACTERISTICS OF THE BUSINESS
Since our business rests on the concept of “from food to entertainment, all under one roof”, therefore it has some basic underlying characteristics. The key characteristics that underline our business are as follows -: 1) Customers get all the facilities of food and entertainment under one roof. 2) 3) It’s meant for people of all age group. Good quality of food at fair price.
4) Customers get a wide variety of options to choose from. 5) Reputed brand names like Barista and Mama Mai cater to the requirements of the customers. 6) Quick and prompt service.
7) Prices charged for the games are not exhorbitant. 8) Free gifts and discounts provided on certain days. 9) Well maintained and clean space provided to the customers to enjoy the time spent there.
LOCATION
The location of a business site is detrimental to the success or failure of any business. The business site or location has to be selected after careful planning and thinking. For a business to run or operate successfully, it has to have several features:1) Firstly it should be located in such a place that is convenient for all the customers to reach. 2) Secondly the location should be in the heart of the city or around it. 3) Thirdly proper modes of transportation should be available to reach that place. 4) Fourthly the place in and around the business site should be well developed, neat and clean. 5) Fifthly the facilities of proper electricity, water connection and security concerns should be taken care of. These are some of the basic features that a business location should have. Taking all these basic features into considerations, the place that we have decided to set up our business is
Near the Adivasi Boys Hostel Morabadi Ground Ranchi
We came up with some other places too such as Bariatu, Deepatoli, and Main road; but as per our survey and as per the basic features, the sight chosen by us came to be of prime interest. It complies with all the grass-root level requirements and thus is the best possible place for setting up the proposed business.
CONSUMER TRENDS
The consumer trends vary as per the two sectors. Consumer trends represent the behavior of the consumers towards both the sectors in the past and the present. Since we are setting up the business in Ranchi, therefore the consumer trend tends to be different from that of the other places. In Ranchi the gaming fever is just catching on and more and more people are getting involved in this. But the unavailability of a proper gaming parlour is the major problem faced by the people here. There is a good demand for such a proper gaming arena and opening up a fully furnished gaming parlour would give the people of Ranchi what they want. Ranchi is blessed with good restaurants but to get food and entertainment under one roof is something that the people of Ranchi have not witnessed yet. People here want a joint where they can come with their family and spend some quality and peaceful time. A proper, calm and relaxed atmosphere is something that the people want and our fun center provides them with the right kind of atmosphere. People in Ranchi have been spending relentlessly on dining and things of entertainment purpose, so the THE ? ZONE with its unique features gives the people here exactly what they want; A place meant for kids to people of any age group.
ECONOMIC TRENDS
Since we have combined two sectors together under one roof therefore the economic trends tend to vary for both these sectors. But the one similarity between these two sectors is the fact that both show a positive change. As the standards of living of the people have changed drastically over the past 1015 years, the impact is also seen in the standard of living of the people of Ranchi. People are now more prone to spend because the income levels have also increased and more importantly, people are willing to spend. The Indian hospitality industry and the gaming industry are just few of the many examples. The Indian hospitality industry has grown at a staggering rate and the growth rate is expected to be 8% between 2007 and 2016. Major investments are being made in this sector. In Ranchi itself, big projects are being undertaken and people are responding favorably to this change. But still the people of Ranchi yearn for more quality space to spend some time, and it is here, where we provide them with the solution to this problem. In a similar manner the Indian gaming industry is poised at high growth levels. This sector has picked up pace in the last few years and is set to be one of fastest growing sectors in the Indian market. Research organizations predict that this sector will hit $300 million by 2009. In Ranchi itself the craze of high entertainment video games is increasing with more and more youngsters getting into it. But the lack of a proper place and proper equipments are not allowing the youngsters to get what they want and thus it gives us an opportunity to provide them with what they want. Thus there is scope for improvement in this sector in Ranchi.
SOCIAL CONSIDERATIONS
In today’s fast-paced environment, where there is cut-throat competition and people are too busy to give themselves that extra edge, seldom does a man get a chance to get together with his family. Even when he does, the choice of spending some quality time with his family is very limited. In Ranchi, where we propose to set up our business, people are always finding that one particular space where each and every member of his family is satisfied. With the proposed idea of the fun center, we try to take just one small step in this direction of providing people with solution to this baffling question. The fun center not only provides solution to the needs of the families but to people of all age group. With the fun center coming up, people can find solace and can keep away from their tensions for some time. Through the creation of the fun center we try to help the people of Ranchi to spend some good and memorable time. The concept is appealing to all the age groups and with so many big brand names under one roof; we surely try to give everyone what they desire. way. Thus in a way, the society is helped in a better
INDUSTRY ANALYSIS
An overview of the industry:
Our fun center boasts of a restaurant, a bowling alley, pool games and high entertainment video games. Since we provide food and gaming under one roof, therefore it is important to have an overview of what these two sectors are all about and how are they shaping up for the future challenges. The gaming industry is one of the fastest growing industries in the world today and employs thousands of people worldwide. Also known as interactive entertainment, this sector was once known as a niche market. But over the years it has grown remarkably not only outside India but also in India. India is fast emerging as a key one-stop destination for game development with research firm AC Nielsen estimating the Indian gaming market to hit $300 million by end of 2009. The future of the Indian gaming industry looks bright. The growth of this sector has attracted publishers, developers, animators and content providers and is also stimulating the development of innovative business models. In the similar manner the hotel industry seems to be growing at a fairly good pace and gives bright indications for the future.
Hospitality is about serving the guests to provide them with "feelgood-effect". "Athithi Devo Bhavha" (Guest is God) has been one of central tenets of Indian culture since times immemorial. In India, the guest is treated with utmost warmth and respect and is provided the best services. Today hospitality sector is one of the fastest growing sectors in India. It is expected to grow at the rate of 8% between 2007 and 2016. Many international hotels including Sheraton, Hyatt, Radisson, Meridien, Four Seasons Regent, and Marriott International are already established in the Indian markets and are still expanding.
ORGANISATIONAL STRUCTURE
Since the concept and execution of our business requires large amount of funds and the arrangement of finance is of prime importance as it forms the life blood of any business and helps in sustaining the operational process; therefore, we decided to set up the business in PARTNERSHIP. The estimated breakdown of the cost is as follows:-
• ESTIMATED EXPENDITURE – Rs 9700000 • NUMBER OF PARTNERS – 3 • EACH PARTNERS CONTRIBUTION –
• Mr. Shreedhar Mohta: -Rs 35 lacs • Mr. Anurag Singh: -Rs 11 lacs plus providing a loan of Rs 10 lacs • Mr. Ankush Bhattacharya: Rs 11 lacs
PARTNERSHIP DEED
Since partnership is the outcome of an agreement, it is essential that there must be some terms and conditions agreed upon by all the partners. Such terms and conditions may be oral or written. Such a written document which contains the terms and conditions of agreement is called ‘PARTNERSHIP DEED’. It is also called ‘Articles Of Partnership’. The following are the contents of the partnership deed of our proposed business.
1) NAME AND ADDRESS OF THE BUSINESS: Our business would be called THE “?” ZONE and would be set up near of the Adivasi’s Boy’s hostel, near Morabadi ground. 2) NAME AND ADDRESS OF THE PARTNERS : The names of the partners are as following :• Mr. Shreedhar Mohta: - Flat no-5G, Sri Gopal Complex, Kutchery Road, Ranchi-834001. • Mr. Anurag Singh:- 1C-91, N.T.S Barkakana, Ramgarh-829103 • Mr. Ankush Bhattacharya: - 107, Baeadwari, Sakchi, Jamshedpur-831001. 3) Amount to be contributed by each partner : The amount to be contributed by each partner is as :Shreedhar Mohta – Rs 35 lacs {as asset building} Anurag Singh - Rs 10 lacs as partners loan and 11 lacs cash Ankush Bhattacharya – Rs 11 lacs cash 4) PROFIT SHARING RATIO: The profit sharing ratio of each partner will be 3:1:1.
5) Accounting period of the firm: The accounting period of the firm starts from 1st April of a year and ends on the 31st March of a year. 6) METHOD OF ACCOUNTING FIRMS RECORDS: The record of the firms account would be stored through journal entries, ledger a/c, cash flow, trading and profit loss a/c, balance sheet and other books of account. 7) AUDITING: The Partnership account would be audited on a half- yearly basis. And the auditor would be chosen by the promoters of the company. 8) DATE OF COMMENCEMENT OF THE PARTNERSHIP: The partnership would commence on 1st April. 9) DURATION OF THE PARTNERSHIP: The partnership would be dissolved either on the death of a partner or on the retirement of a partner. 10) BANK ACCOUNT: A bank account will be opened in the name of the firm and all the three partners will have the right to sign the cheques. 11) SETTLEMENT OF DISPUTES: In case of disputes, the disputes will be solved by hiring an ARBITRATOR. 12) Interest on loan: Interest on loan would be provided @ 7.5% Per Annum.
HUMAN RESOURCE
PRINCIPAL MANAGEMENT: The principal management of the entire organization vests in the hands of the PARTNERS. They are responsible for the entire working and functioning of the organization. They are accountable for everything that goes on inside the business and are thus the pillars of strength of the business. Apart from the promoters, some powers are also vested in the hands of the managers and staff coordinators. The managers look after the working of the day to day operations of the business and are accountable to their senior managers. The food court manager, restaurant manager and gaming floor manager look after the functioning of their assistant managers and staff coordinators. STAFF: Since our business is diverse in some ways, therefore it requires a lot of staff or human resource to make it function effectively and efficiently. In short the staff forms the backbone of the business, as the goodwill of the business depends, to an extent, on the way the services are provided to customers, apart from other things. Since our business is divided into three tiers, therefore the requirement of staff is at all the three levels, but more so in the gaming arena and the restaurant floor. Even for the proper cleanliness and sanitation, we need to hire staff. The gaming arena requires people who are well averse to use of video games, pool, bowling etc. Proper technical staff is also
required in case of breakdown of any machine. The restaurant floor also requires efficient staff for wide range of purposes. Thus the need of staff is imminent at all the levels and their importance cannot be neglected. DUTIES AND RESPONSIBILITIES: Since the project involves different faces to it, therefore the duties and responsibilities attached to it are also many. The duties and responsibilities vary as per the persons. From the top level itself, the promoters have the responsibility of looking after the entire working of the business. It is their duty to see whether the business is proceeding on the lines that they proposed. In a similar manner, the managers i.e. the restaurant manager, the food court manager and the restaurant manager have their set of duties and responsibilities. They have the task of looking after the day to day management of the business. They have to see whether the services are being provided in a proper way, whether the customer’s order are being taken properly etc. Even the accountants have the responsibilities of looking after the day to day finances. They have to keep a track of the everyday earnings of the business individually for each section of the business and be accountable to their respective managers. The staff coordinators and the individual food court coordinators have the duty of looking after the
functioning of the staffs employed. They have fix the parameters of working of the lower level staffs.
HUMAN RESOURCE Marketing Finance Bowling Staff Pool Staff Guard Cleaning staff Head Cooks 2 1 5 5 2 3 3
Marketing will be looked jointly after by Mr. Anurag Singh and Mr. Ankush Bhattacharya the advertising and promotional strategies – how to market the product, where to put the hoardings. She will be basically concerned with all the marketing functions. Finance will be looked after by Mr. Shreedhar Mohta and will also store and maintain the records pertaining to different transactions.
Guard will be performing the functions of doorkeeper, so as to welcome the customers and will also look after the security of the showroom. Cleaning personnel will be there purpose of cleaning the showroom. for the
850 sq ft
50 ft
1050 sq ft
40 ft
15 ft
5 ft
30 ft
40 ft
MARKETING PART
Market Strategy
1. Pre-launch 2. Launch 3. Post-launch
Pre-Launch
• The main idea behind pre-launch strategy is to bring awareness among the people regarding the opening of a zone which provide them with both gaming and fooding. • We are using both print media and electronic media. • Print media includes- pamphlets and advertorials. • Since pamphlets are most cheap mode of advertisements as it cost 20p/piece, We will distribute pamphlets in Times of India and Prabhat Khabar(local newspaper), at selective colleges like B.I.T Lalpur, Ranchi Women’s college, St.Xaviers, Gossner and B.I.T Mesra and also at the gates of some complex like G.E.L Church Complex, Amravati Complex, Sri Gopal Complex and R-Mart. • Advertisement in local newspapers like Prabhat Khabar and I-Next. • Our electronic media includes radio and in local channels.
Launch
• Launch strategy is one of the most important strategies of marketing. The way you launch your product/business declares your customer attraction capability. As coming of customers gives you a chance to prove your potential, your launch will define how much customer you can bring in. • We are adding banners at this phase to our advertising mode. Banners at major cross over points to the entrants of Ranchi: Main road, Overbridge, Ratu Road, Purlia road, station road, etc. and some banners at both bus stands and auto stands. This will be done before 10 days of launch. • We will also give advertisement on radio and local channels regarding Inauguration, at least before 3 days of inauguration. • Inauguration by some celebrity like M.S. Dhoni. As he is from Ranchi and he is the most popular youth icon among people of Ranchi. • We are going to give 60%discount on gaming for first 3 days. It will cost maximum of 5400*3=16,200.
Post-Launch
• This is a usual mentality of people (especially Ranchi) to visit a new market or place for first few days or first 1-2 weeks of their inauguration, since these are mostly offer/discount period. In order to bring back customer to our shop on a regular/continuous basis we are using this strategy. • As weekends are the times to attract maximum customers. We can place various offers to our customers. • We can organize some kind of competition at our gaming zone, with a declaration of some cash prizes (like Rs.500 to 1st and Rs.300 to 2nd) or a food zone coupon of certain amount. • After consulting with all restaurants of our food zone .We can announce some discount time period for our food zone (like from 2p.m-5p.m) on one of the weekend days. • As per people wish they can get some gaming coupon or a food zone coupon on a bill of Rs.1500 or more on any day, which they can use on any of the week day (except Saturday and Sunday). • Any bill exceeding Rs.500 in game zone will get half an hour free play on any of the games.
Interpretation From the graph we see that our expected customers are laying maximum stress on the factors like quality, variety and name & good will factors. So we need to pay acute attention toward these factors. The quality is strictly maintained and the variety of food provided will definitely give a way to name & good will.
90% 80% 70% 60% 50% 55%
85% 75%
90% 80%
55%
t s o C
40% 30% 20% 10% 0% price quality ambience n ame & g.will ads variety
Factors which emphasis the customer visiting
Market Factors
These include the factor which decides the growth of a business. It is of utmost necessity to evaluate or calculate these factors individually and carefully. Major factors are? ? ? ? ?
Demand of the product Supply of the product Customer disposable income Customer trend Legal factors
Demand:
Demand is the first major factor which decides the necessity of a business in a market area. Degree of demand is directly proportional to the speed of growth. For analyzing demand of a product we had done survey through questionnaire. Since we had to reach to customers of all kind, we had done survey at four locations; these are atChurch complex, Eylex, St.Xaviers Ranchi and B.I.T Lalpur. students, 150 families and We had done include
survey of total 400 people among which 150 are rest100 businessmen and others. After interpretation of the
survey we find that most of the people are in favour of getting the facility of entertainment and fooding under the same roof.
Supply of product
After determining the demand for our product, we have to determine the sources which can provide us with cheap and quality material. We are bringing our all gaming setup from Kolkata (Allipur) and for our food zone we will prefer local whole seller as it is feasible in terms of both dealing and transportation. It is also helpful in quickly getting our restaurant’s raw material in case of emergency i.e. unexpected hike in demand of particular food product. We are buying furnitures from Durian and generator from Honda showroom in upper bazaar.
Customer Disposable income
It is defined as a share amount from income, which a customer spends. This is a factor which needs serious consideration before starting any business because this decides the income of a business in the market. Estimated average monthly expenditure on entertainment and outside fooding is minimum of 15 %( approx.).
Consumer trend
As the income and the leaving style of people has grown so to relax they look for some place which can provide them with food to fun under a single roof . It is hectic schedule of people which also motivate them to invest on their entertainment and eating without of much thinking.
Legal factors
Market legal factor includes contract with companies like Barista and Mama Mia to whom we are renting outlets. This factor also includes food quality license for our restaurant.
Target Market The target market (also called the served market) is the part of the qualified available market the business decides to rule. The various market sectors and their share are explained through the graph? Family ? Businessmen ? Students ? Others
5%
Ta rg e tMa rk e t
25% 5% Family Businessmen Students Others
65%
Market Potential
From the survey we found that the average monthly salary of people of Ranchi is between Rs.10,000-20,000 and those of students is between 2500 -3500 while the average monthly expenditure of people of Ranchi on eating and playing is between Rs.4000-7,000 of working class and Rs.1000-2000 of students.
Customer Profile
Our target customer constitute of the middle and upper class. Among working class, our maximum customers are from the income slab of higher than Rs.10, 000. Apart from this students in Ranchi would form an important part of our customer base, as students from in an around Jharkhand mostly come to study here.
Income pattern of our working class (sample size100)
Income pattern of student (sample size 400)
Expenditure pattern of student on THE “?”ZONE
Expenditure pattern of working class on THE “?”ZONE
SWOT ANALYSIS
STRENGHT o o o o o Unique concept Hygiene product Value for money New concept Strategically located
7
WEAKNESS o Limited recognition at starting
OPPERTUNITIES o o First Movers Concept Increase in disposable income o
THREATS Entry possibility
o Imitation easily possible
The overall evaluation of a business strengths, weaknesses, opportunities and threats is called SWOT analysis. The Product
Product is defined as any service, physical goods, events, places, information, properties and ideas that a business or company is providing to the market for the satisfaction of its want and needs.
Description of the product? Our ground floor is a food zone with two different varieties/specialist restaurants. These include Barista and Mama-Mia. We are providing space to these restaurants only for selling their products and a common sitting space for their customers. ? Our 1st floor is a gaming zone which contains game like Bowling, Pool, Snooker and other small video and computer games.
ProductSUNDAE FRAPPE Chocoholic
Muddy Cookies Caffee Freddo Chocossimo Kat
Chunky Cookies Sundae Melting Mud pie & Gelato Sizzling Brownies & Gelato Black Forest Sundae
Caffee Mocha Foresta Nera Kit
Caffee Italiano Dark Twilight Who Cares! (A 100% fat free sundae) Tropical Trio Ferrero Rocher Sundae
Kit Kat Sundae
GELETO CAKE & SEMI FREDDO Cookie Crumble Cake Mixed Berries Cheese cake Mixed Berries Cake Chocolate Gelato Mousse Nutty Nirvana Cake Gelato Truffles Dark Twilight Cake Baileys Cake Kit Kat Cake Treasure Hunt Cake
OTHERS Sicily Lemon Green Apple Wine Grape Passion fruit Tangerine Tropical Ruby Orange Blueberry Honeydew Melon Alphanso Mango Mango Passion Strawberry Tang Limetta Kiwi
Barista is a comfortable place friends, family, strangers, the neighbor’s aunt, well, just about you drop by alone, we have beverages to keep you company.
to spend time with girl next door, her anyone. And even if some of the finest
To begin with, there's the Barista House Blend - our signature blend of coffee and select international coffees from some of the most noted coffee growing regions of the world. Followed by an extensive list of steaming hot espressos, cappuccinos and lattes made from the finest Arabica beans. Barista traces its roots back to the old coffee houses in Italy - the hotbeds of poetry, love, music, writing, revolution and of course, fine coffee. Drawing inspiration from them, we have single-handedly taken on the challenge to open people's eyes to the simple pleasures of coffee and revolutionize the coffee drinking experience in every city that we invade. To live up to this promise, we have employed skilled Italian roastmasters at our roastery in Venice. Sourced only the finest quality Arabicas. And have had our espresso bars designed to reflect a warm, friendly and inviting atmosphere. Add to this, a menu you can ponder over for hours and you have everything you need to escape the pressures of daily life.
BowlingBowling is a Game/Sport in which players attempt to score points by rolling a Bowling Ball along a flat surface either into objects called Pins or to get close to a target ball. There are many forms of bowling, with the earliest dating back to ancient Egypt, while other instances where bowling was first seen can be traced to ancient Finland and Yemen, and much later in 300 A.D. in Germany. Various forms of bowling are-
1. Ten pin bowling 2. Candle pin bowling 3. Duck pin Bowling 4. Five pin bowling 5. Bumper bowling 6. Power wheel chair bowling
SnookerSnooker is a cue sport that is played on a large baize-covered table with pockets in each of the four corners and in the middle of each of the long side cushions. A regulation (full-size) table is 12 ft × 6 ft (3.6 m x 1.8 m). It is played using a cue and snooker balls: one white cue ball, 15 red balls worth one point each, and six balls of different colors (1) Yellow ,(2) Green ,(3) Brown ,(4) Blue (5), Pink (6) and Black (7). A player (or team) wins a frame (individual game) of snooker by scoring more points than the opponent(s), using the cue ball to pot the red and colored balls. A player wins a match when a certain number of frames have been won. The game is generally regarded to
have originated in the latter half of the 19th century.
Other gamesThis sector includes all video, computer and other games. These are like? Air hockey ? Basket ball ? Shooting ? Biking and etc.
AIR HOKEY
Product Pricing
Pricing of a product require consideration on various factors depending upon the characteristics of the product. In our case we are providing various different games as our product for customer’s entertainment and we are applying competitive pricing technique. Although our project also has a food zone but the prices of those product are fixed by their respective company to whom we are renting space for selling their product. The various pricing factors on which we will concentrate are• Competitor’s price- As we are entering new in the market, we have to think of competitor’s prices. It is of utmost necessity that our product’s price must be lower to their prices in order to attract customer towards us and to gain competitive advantage.
• Demand of the product- our survey shows that 66% of people are in search of a place where they can get both food and entertainment at the one place. This factor basically determines the profit percentage we can add to our product. In case we get good response we can increase our profit margin.
• Own cost- Before setting any price we must evaluate our own cost. Evaluation of cost not only includes cost of machinery/material but we have to consider the depreciation rate, rent, cost of other materials like furniture and fixtures, air-conditioner, plasma and etc.
•
Profit margin- after the evaluation of the cost, we should decide the profit margin we want to earn from each sale.
Prices of various product provided by us areBowling
Rs.35*2ppl*1hr ppl*1hr
Snooker and Pool Other games (Computer and video games).
Rs. 90/60* 1 hr Rs. 10/coin
Competition
Competitors are the major challenge that a company faces regularly. We have different competitors in different sectors. Competitors of our food zone are• Mint • Café Coffee Day • Ecstasy • Little Itale Competitors in gaming zone are• Champions • Zapak Gameplex
Sales
According to the survey done it is shown that 66% of the population wants both food and game at a single place. Our survey also shows that 36% of the population likes to go for brand and quality while 38% of the population is in favour of quality material and for the rest 24% it doesn’t matter. From the quality and brand point our customer part constitutes 74% of the population (36%+38%). Since we are providing both food and game at one place with brand and quality, we are expecting a good sale of our product in the market.
Finance Part
PROJECT COST
AMOUNT AMOUNT (Rs.) (Rs.)
PARTICULARS
A. PROJECT COST
1. LAND &BUILDING (With renovation) 2. PLANT & MACHINERY
BOWLING ALLEY [10*200000] POOL & SNOOKER SETS OTHER GAMES MUSIC SYSTEM LCD TV TOKEN MACHINES WATER COOLER ART COOLERS VACCUM CLEANER A.C. (Centralized) COFFEE MACHINES COLD DRINK MACHINES SECURITY SYSTEM CCTV CAMERA'S
4,500,000
4,500,000
2,000,000 300,000 190,000 40,000 208,000 160,000 72,000 240,000 40,000 455,000 120,000 160,000 150,000 175,000 4,310,000
3. FURNITURE
CASH & DISPLAY COUNTER 4 TABLES [4 * 3,000] 88,000
12,000 20 CHAIRS [ 20 * 1,000] 20,000 120,000
4. MISC. ASSETS
FIRE FIGHTING EQUIPMENT 275,000 275,000
5. PRELIMINARY & PRE-OPERATIVE EXPENSES
PRE-LAUNCD ADVETISEMENT CONSULANTY & LEGAL EXPENSES INAUGRATION 6. CURRENT ASSETS STOCK CASH AT BANK CASH IN HAND 15,000 300,000 75,000 390,000 50,000 20,000 35,000 105,000
7. WORKING CAPITAL
[INCLUDING 25% FOR MARGIN MONEY]
-
Rs.9,700,0 00
Means of Finance
1. SHARED CAPITAL SHREEDHAR MOHTA ANKUSH BHATTACHARYA ANURAG SINGH 3,500,000 1,100,000 1,100,000
2. PARTNER'S LOAN 3. TERM LOAN
1,000,000 3,000,000 9,700,000
PARTICULARS
A. SALES REVENUE B. EXPENDITURE / COST
1.RAW MATERIALS 2. ULTILITIES
MACHINERY USAGES CHARGES COMPANY’S SHARE@10% [BARISTA]
I ST YEAR 53,62,1 40
II ND YEAR 50,24,0 40
III RD YEAR 53,93,7 50
6,31,00 0
7,10,60 0
7,72,31 0
1,00,00 0 1,26,50 0 6,96,00 0 75,000 2,15,50 0
1,00,00 0 1,38,00 0 7,65,60 0 75,000 2,15,50 0
1,00,00 0 1,51,80 0 8,42,16 0 45,000 2,15,50 0
3. SALARY & WAGES 4. INTREST ON PARTNER’S LOAN
5. INSURANCE PREMIUM 6. REPAIRS & MAINTAINENCE
BUILDING MAINTAINENCE MACHINERY REPAIRS
1,20,00 0 1,20,00 0 1,45,50 0 22,29,5 00
96,000 1,20,00 0
1,80,00 0 1,80,00 0
7. ADMINISTRATIVE EXPENSES
8. ADVERTISEMENT EXPENSES TOTAL
70,000 22,15,7 00
52,780 25,39,5 50
C. OPERATING PROFIT BEFORE INTEREST, TAX & DEPRECIATION [A-B]
31,32,6 40
28,08,3 40
28,54,2 00
D. FINANCIAL EXPENSES
11.75% INTEREST ON TERM LOAN
3,52,50 0 27,80,1 40 11,36,0 00
3,17,25 0 24,91,0 90 9,90,07 5
2,82,00 0 25,72,2 00 8,63,59 1
GROSS PROFIT AFTER INTEREST & BEFORE TAX & DEPRECIATION E. DEPRECIATION F. PRELIMINARY EXPENSES WRITTEN OFF G. NET PROFIT BEFORE TAX H. TAXABLE INCOME I. TAX PAYABLE J. NET PROFIT K. ADD DEPRECIATION & PRELIMINARY EXPENSES WRITTEN OFF L. CASH SURPLUS
21,000 16,23,1 40
21,000 14,80,0 15
21,000 16,87,6 09
NIL 5,01,55 0 11,21,5 90
NIL 4,57,32 5 10,22,6 90
NIL 5,21,47 1 11,66,1 38
11,57,0 00 22,78,5 90
11,11,0 75 20,33,7 65 3,00,00 0
8,84,59 1 20,50,7 29 3,00,00 0
M. REPAYMENT OF LOAN
300,000
19,78,5 90
17,33,7 65
17,50,7 29
DSCR
III RD YEAR
11,66,1 38
PARTICULARS 1. PROFIT AFTER TAX 2. DEPRECIATION & PRELIMINARY EXPENSES WRITTEN OFF 3. INTEREST ON FCL A. CASH ACCRUAL 4. REPAYMENT OF FCL 5. INTEREST ON FCL B. TOTAL PAYMENT DSCR (A/B) AVERAGE DSCR
I ST YEAR
1,121,59 0
II ND YEAR
1,022,69 0
11,57,00 0
10,11,07 5
8,84,59 1 282,00 0 23,32,7 29 300,00 0 282,00 0 582,00 0
4.008
3,52,500 26,31,09 0
317,250 23,51,01 5
300,000
300,000
352,500
317,250
652,500
4.032
617,250
3.808
73,14,83 4
18,51,75 0
3.950
B.E.P % as per the Installed Capacity
PARTICULARS A. VARIBLE COST RAW MATERIAL & CONSUMABLES UTILITIES SELLING EXPENSES INTEREST ON WORKING CAPITAL WAGES TOTAL B. SEMIVARIABLE / FIXED COST SALARIES [ THE E-ZONE STAFF] REPAIR & MAINTAINENCE 3,72,000 1,20,000 2,16,000 10,73,500 6,31,000 2,26,500 AMOUNT (RS.)
DEPRECIATION INTEREST ON LOAN EXCLUDING WORKING CAPITAL OTHER WORKING EXPENSES RENT + PREMIUM + ADMINISTRATIVE EXPENSES TOTAL C. CONTRIBUTION SALES REVENUE LESS: VARIABLE COST TOTAL B.E.P. AS % PER INSTALLED CAPACITY
11,36,000
352,500
1,20,000 21,00,500
46,89,800 10,73,500 36,16,300
1.7216
Pay Back Period
PROFI
T YEAR AFTER S TAX
DEPRICIATION&PRELI CASH MINARY EXPENSES ACCRU CUMULA WRITTEN OFF ALS TIVE 2,278,59 0 2,278,590 2,012,76 5 4,291,355 4.3010088 721,410 2,012,765
I ST 1,121,5 YEAR 90 II ND 1,022,6 YEAR 90
1,157,000
990,075
The PAY BACK PERIOD will be 1year and 5 months.
Conclusion
The gurus of market say that the prospect and success of a business rests to a large extent on the burgeoning middle class, with rising aspirations and spending power, which will boost consumption oriented growth. Our concept of THE “?”ZONE takes into consideration this factor and the comprehensive survey just proves that the people of Ranchi are ready to experience the delights of this unique business. People in Ranchi want a proper place where everybody has something for them. Since the concept stands new and un-tested, therefore the it lends us the much needed competitive advantage in this sector. There is considerable demand for such a business because the confluence of food and entertainment make this business a unique proposition. We intend to expand our business in the near future to other towns as well and hope to get favourable response from those towns as well. Our expansion plans are targeted for towns such as Jamshedpur, Bokaro and Dhanbad.
Questionnaire for a Customer
[Sample size-500, students-400 and other 100] Name: Age: Gender: a) Male b)Female Mother tongue:____________ Occupation: a) Student b)Working c) Not working College/company name (except not working)___________________________ Marital status: a) Married b)Single Do you have kids in your family? a) Yes b)no
Home Town: a) Ranchi b)Ramgarh c) Jamshedpur d)Other Monthly income of working class: a) More than 30,000 b)Between 20,000-30,000 c) Between 10,000-20,000 d)Less than 10,000 Monthly income of students: a) More than 5000 b)Between 3500-5000 c) Between 2500-3500 d)Less than 2500 Factor that affect your consumption: a) Quality b)Price c) Advertisement d)other What would you prefer?
a) Quality with brand b)Quality c) quality doesn’t matter
Mode of your entertainment: a) playing b)movie c) going to restaurant d)visiting places Would you like to play indoor games? a) Yes b)No Would you like to visit a restaurant? a) Yes b)No If yes, how frequent: a) More than 5 times a month b)3-5 times c) Less than 3 times Monthly expenditure on playing and outside eating of working class:
a) More than 10,000 b)5,000-10,000 c) Less than 5,000 Monthly expenditure on playing and outside eating of students: a) More than 2000 b)Between 1000-2000 c) Less than 1000
Would you playing and dinning at a single place: a) Yes b)Not matter Do you feel the need of e-ZONE? a) Yes b)No Where would you like e-zone to come up? a) Morabadi b)Gandhinagar c) Ashok nagar d)Ratu road How often would you visit e-zone?
a) Daily b)Weekly c) Monthly d)Any other……..
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