Ice cream businuss plan

Business Proposal for Ice Cream Parlor

IBMS Agriculture University Peshawar

Project Proposal

“Scoops Ice Cream Parlor”


Introduction to Business

Scoops ice cream parlor is one stop ice cream shop. Where you find flavour of your choice in any season. We provide ice cream by maintaining high standards of quality in a joyful environment.

Ownership: Sole-proprietorshipName: Scoops ice cream parlorSlogan: “Good for you”Type of Business: Ice cream manufacturing and retail shop

Goals & Objectives:

Gain 50% of market share in first year of business in that particular area(s) At least 50% initial investment must recover in first six months of business Make long-tern relationships and profitable with customers Provide healthy ice cream Provide splendid environment Make courteous, loyal, sincere and environmental friendly environment image in

customer’s mind

Vision statement:“To provide a place with lifetime experience and rich taste and be market leader”

Mission Statement:“We provide ice cream to customer of all ages in variety of seasonal, non-seasonal and

other flavors”

Scope of Business:

We are providing healthy ice cream to all age groups especially to teenagers and college students in lots of flavours. Specifically we are targeting middle class and upper class. We are advertising mostly through print ad campaign and sometimes through radio to capture large audience in lowest possible cost. We will not involve any intermediary and deal with our customers directly. We will try to give them as much joyful and healthy environment as we can. We try to position ourselves as courteous, loyal, sincere and environmental friendly people. Our team also use web as mean of communication with our stakeholders. With the expansion of our business we may plan and implement some changes in our ice cream parlor.


Management Plan

Organizational Chart

Duties & ResponsibilitiesManager

He needs to make a check & balance between all the employees. His duty is to check the current company performance and remove the upcoming

problems to new business Manager needs to motivate his team and create a balance between all employees. He also verifies the company accounts and make a detail plan about company

current performance with desired performance

Floor Manager Floor manager check the performance of sales representatives

His job is to check the condition of stock & inventory and its timely delivery

The floor manager manages the problem face by sale representatives

Validation of Sales & Purchases

He needs to take Customer feedback about product & services and create changes according to them

Sales Representatives They welcome the walk in customers take orders, receive cash and serve product

to them. They need to deal with customers calmly and politely.

Floor Manager

Manager

Sales Representative





Estimated Salaries

Personnel Plan monthly Year 1 Year 2 Year 3

Manager 50000 600000 660,000 726,000

Floor Manager 22000 264,000 180,000 310,800Sale Representative (4 person/Shift) 17000 204,000 234,000 260,000

Total 140,000 1,680,000 1,776,000 2,076,800

Start-up Summary

ICE Cream will incur the following start-up costs:

Renovation of shop ( flooring, ceilings, paints etc) Air conditioners Others Computer system with CD-RW, printer, Microsoft Office, QuickBooks Pro, and

POS software POS terminal/cash register. Back office desk and chair. Front of store counter. Shelving racks. Display racks. Chairs, mirrors. Assorted halogen track lighting


MARKETING PLAN

Product market expansion grid:Low cost operator:We will be following the strategy for our expansion of ice-cream and they would be,Low cost operator in terms of using minimum initial investment - to not to overload the business with expensive assets. Assets utilization- ensuring full use of existing assets at a regional level before acquiring additional ones.

Ingredients optimism – selection of appropriate ingredients, which gives desired consumer perception at lower cost.

Innovation / RenovationUsing strong innovation system, which will be able to provide you new flavors.

Product availability (“with in arms reach”)Maximum availability

Strategy for Launching the Parlor

Creating awareness about our parlor to at least 50% of the target market within first five months of launch would be our first and foremost objective, because if we are succeeded in capturing our target market then we could easily gain other goals by delivering them value and satisfaction that we promise. We can measure awareness by taking feedback from people.

Creating awareness & Capturing 50 % of target market within first year:

Our promotional activities will develop interest for people thus compelling them to approach us. We will make good relations with our customers so they create good word of mouth for us and approach us again and refer others for the sake of building long-tern relationships.

Marketing strategy:

Our product will include features that contains the combination of both health and hygeine keeping in mind the individuals requirments in terms of taste. However the marketing will be done considering the concept of mass personage.Our product will be tailored to individual needs (desired taste) but promotion will attract all of them collectively. Further more we will be following pull strategy and approach our end users ourselves with the help of various promotional activities. In our case no intermediary (whole sellers) is involved.


ACTION PROGRAMSWe will act for our operations by the following schedule. For the implementation of the plan we have divided the tasks to the respective staff that will ensure the implementation.

Responsibilities of the Team:

Marketing HeadHe/She will be responsible to coordinate all the marketing activities and directly involved in the designing and implementation of the public relation and advertisement activities. He also monitors the budget details given to him by the financial officer and ensures its proper allocation.The financial officer’s keeps record of the marketing budget and the distribution of budget allocated for various areas by the head.The process control officers make sure that all the process involved in the service is performed efficiently. He coordinates the activities of the all the staff.Competitors

Our main competitor in Lahore are yummy 36, chaman, feasta, malees café, yousaf ice corner, and all the parlors which are targeting upper class and middle class people. They all are well established and positioned. So, we have to be very careful about these competitors in Lahore.

Public RelationsBuilding good relation with our clients is essential to capture large share in the market. These public relations will be built by arranging festivals occasionally especially like BASANT. We will be giving free kites and those kites will be marked by our (product) brand name. This will not only help in creating good public relations but also crate awareness among the public.

Sales promotionOur major sales promotion is by giving special discounts or coupons to our customers and retailers. For example with every purchase of 3-cups of ice cream one cup would be absolutely free. We will arrange these kinds of discount activities’ on timely basis to keep an edge over our competitors’.

Direct MarketingDirect marketing is an important entity in our promotional mix. Presently there are many groups of youngsters who are really interested in trying these kinds of new products. The important fact is that they are not only themselves seek products from the best possible providers but also refer their fellows. Technique which we will use is sending occasional mails to the registered users on the web, thus communicating ourselves directly with the most potential group of our market. These mails will give details of our new products along with a redirection to our web site.


Financial Plan

Financial Objectives:The following objectives are for the first two years of Fast ‘n Fresh Premium Ice Cream Parlor:

1. Total capital investment of Rs. 3 million2. Owner has to earn Rs. 1,500,000 by the end of Year 13. Break-even cash flow by the end of first 18 months4. Owner has to earn Rs3,000,000 by the end of Year 2

Allocation of Funds:

Management plan 15% Marketing plan 25% Production plan 50% Legal plan 5% Other plans 5%

Sources of Finance:

Personal Funds: The owner will invest Rs. 1.5 million into the business

Loan Proceeds: The mode for this kind of financing is running finance and initial amount fix for running finance is Rs. 3 million.(The additional one million is for unforeseen situations/Expenses)

Cash Receipts From Business: First year cash estimate: Rs. 1,500,000 For second year estimate: Rs. 2,500,000

(Breakeven also occur during 2nd year as total cash earned up to end of 2nd year is Rs. 4,000,000 while for break-even Rs. 3,000,000 is needed)

For 3rd year cash estimate : Rs. 3,000,000

Tax and other expenses will also be considered in detailed financial plan

While currency appreciation with passage of time is expected to be +1.05% of Dollar value.(as present value of PAK rupee against dollar)

Note: Adjustment in Financial can be made with passage of time according to conditions


LEGAL PLAN Our legal plan includes:

Trade mark Registration of ice cream parlor Slogan Logo

Others things include apart from these as fellows:

Partnership deed Registration of website Insurance of shop Contract with suppliers Contract with employees

Market Entry TimeCompany aims at commencing its operations in July 2010. Its financial year will end at June 2011. During the first year the business will be targeting the Eid and spring season mainly from Sept to March. Trademark registration We will register our trademark from the IPO- Pakistan (intellectual propertyorganization) Procedure for Registration** (www.ipo-pakistan.com) 1. It is advisable that a search may be made of the Trademarks Register to ensure whether there are any similar or identical marks on the Register. Search request can be filed on Form TM-55 with a Pay Order / Bank Draft of Rs. 500 for search of one mark in one class only.2. After the search of the Register, application is made on Form TM-1/TM-2 for one mark in one class with pay order / Bank Draft of Rs.1000/-3. Acknowledgement Receipt by the Trade Mark Registry is issued to the applicant within 10-15 days.4. Examination Report is generated after 3 months. If there are any objections on the applied trademark, they are communicated to the applicant immediately in the form of Show Cause Notice. The applicant is required to submit a reply within two months of the issue of Show Cause Notice.5. If there are no objections application is published in the Trade Mark Journal. If no oppositions are filed to the published application within two months of the publication date of the relevant Trademark Journal, the application stands accepted, and s Demand Notice is then issued to the applicant requesting him/her to submit registration fee so that the registration Certificate may be issued.

http://www.ipo-pakistan.com/


6. On the receipt of the Registration fee, the Registration Certificate is issued Registration of Website We also need a website for the convenience of our customers to reach us, to contact us and to get information about us. So we have developed our website www.sicecream.pk Insurance of the shopWe also need to get insurance of our shop as a precautionary measure to avoid loses from any mishap. Contract with the suppliersWe will have one year contract with our suppliers at the start of every year and that would include agreements regarding: · Pricing strategy· Sampling strategy· Payment dates· Return of claims· Delivery of ice cream Contracts with the employeesFor the long term relationships with our employees we will have contract with the employees so that we will strengthen our business environment without any conflicts with our employees.

Our contract with our employees includes: Salaries

Time period of increment in their salaries Working hours One year contract of working in our shop Punishments in case of frauds

http://www.sicecream.pk/


MARKETING PLANProduct market expansion grid:Low cost operatorWe will be following the strategy for our expansion of ice-cream and they would be,Low cost operator in terms of using minimum initial investment - to not to overload the business with expensive assets. Assets utilization- ensuring full use of existing assets at a regional level before acquiring additional ones.Ingredients optimism – selection of appropriate ingredients, which gives desired consumer perception at lower cost.Innovation / RenovationUsing strong innovation system, which will be able to provide you new flavors

Product availability (“with in arms reach”)Maximum availability

Strategy for launching the parlorCreating awareness about our parlour to at least 50% of the target market within five months of launch would be our first and foremost objective, because if we are succeeded in capturing our target market then we could easily gain other goals by delivering them value and satisfaction that we promise.

Creating awareness.

Our promotional activities will develop interest for people thus compelling them to approach us. We will make good relations with our customers so they create good word of mouth for us and approach us again and refer others.

Capturing 60 % of target market within 1 year.and refer others.Our promotional activities will develop interest for people thus compelling them to approach us. We will make good relations with our customers so they create good word of mouth for us and approach us again

Marketing strategy:

Our product will include features that contains the combination of both health and hygeine keeping in mind the individuals requirments in terms of taste. However the marketing will be done considering the concept of mass personage.Our product will be tailored to individual needs (desired taste) but promotion will attract all of them collectively. Further more we will be following pull strategy and approach our end users ourselves with the help of various promotional activities. In our case no intermediary (whole sellers) is involved.


ACTION PROGRAMS: We will be acting for our operations by the following schedule. For the implementation of the plan we have divided the tasks to the respective staff that will ensure the implementation

Responsibilities of the Team:

Marketing Head will be responsible to coordinate all the marketing activities happening. he is directly involved in the designing and implementation of the public relation and advertisement activities. He also monitors the budget details given to him by the financial officer and ensures its proper allocation.The financial officer’s keeps record of the marketing budget and the distribution of budget allocated for various areas by the head.The process control officers make sure that all the process involved in the service is performed efficiently. He coordinates the activities of the all the staff.Competitors

Our main competitor in Lahore are yummy 36, chaman, feasta, malees café, yousaf ice corner, and all the parlors which are targeting high class and middle class people.. So we must be very careful about these competitors in Lahore.Public Relations:Building good relation with our clients is essential to capture large share in the market. These public relations will be built by arranging festivals occasionally especially like BASANT.We will be giving free kites on that the kites will be marked by our (product) brand name. This will not only help in creating good public relations but also crate awareness among the public.


Sales promotionOur major sales promotion is by giving special discounts or coupons to our customers and retailers. For example with every purchase of 3-cups of ice cream one cup would be absolutely free. We will arrange these kinds of discount activities’ on timely basis to keep an edge over our competitors’. Direct Marketing:Direct marketing is an important entity in our promotional mix. Presently there are many groups of youngsters who are really interested in trying these kinds of new products. The important fact is that they are not only themselves seek products from the best possible providers but also refer their fellows. Technique which we will use is sending occasional mails to the registered users on the web, thus communicating ourselves directly with the most potential group of our market. These mails will give details of our new products along with a redirection to our web site

THANK YOU

Ice cream businuss plan

Business

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