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Posted: May 19th, 2024
Quality is a locally owned restaurant and fast food business. It is a medium size restaurant business which will be located in Dhaka which is capital of Bangladesh. Quality is discovered huge popularity in restaurant business according to Bangladesh current market. Quality is promised to offer best quality food to the customer. As a result Quality will put up their business by offering all kinds Chinese, Thai, Indian, traditional and fast food. It is constituted upon 4 partners with equal ownership. The target market will range from upper class to lower class customer. The market is demanding best product with affordable price so for that circumstance Quality will ensure that each every customer will receive best price and best product. Quality will follow up all the legal issue to register with national board of revenue (NBR). They are planning to keep some fund for corporate social responsibilities on their sales revenue. This business will initially recruit 25 part time and full time employees to run the business. Quality is raised available finance to use worth TK.5000000. And assuming to make gross profit margin 35% and it will lead to peak in coming days.
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Quality will be a medium size restaurant business which will be located in Dhaka which is capital of Bangladesh. The history of restaurant industry in Bangladesh not very long. The restaurant business industry is very competitive in terms of price, value, promotion, location. Quality will be a unique concept in Bangladesh. There are substantial number of restaurant is operating in Bangladesh that will compete with quality. There are few numbers of competitors exist in the current market what is called KFC (Franchise), Pizza Hut (Franchise) Nandos (Franchise) is leading the Bangladesh restaurant industry. That business has already coped the large number of market shares. In 2003 Pizza Hut and Kfc in 2006 was launched their business in the Bangladesh market. This is only DHAKA based supermarket chain. There is few more restaurant exist in current market such as BFC, FFC, Boomers, A&W restaurant, Captain World. But they are not performing well in the current market to satisfy the customer with their desire they keep failing to hold sufficient market share due to their strategic drift. But KFC and Pizza Hut will be a big challenge for Quality to compete.
Quality is promised to offer high quality food, good services with affordable price.
To provide new job for the local community.
To make fair profit for consumer.
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To make – even in few months in setting up.
To start making profit after few month times.
To raise revenue year by year.
To reserve some percentage of revenue for the corporate social responsibility.
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Quality will provide quality product with excellent services to the customer. Quality will focus not only on single product based retail business but also verities of products. These are as follows:
Chinese food
Thai food
Indian food
Traditional food and
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Fast food
Supplier has defined as key factor for a business to improve their buying organization. All the suppliers should base on quality; reliability, on time delivery and the performance of produced which directly influenced to satisfy the customer with affordable price, Product availability with customer desire. Quality will make relationship with several supplier to hold their product quality and price control and supply chain includes most of them are from Bangladesh and few of them from Africa. In restaurant sector major suppliers of fresh produce in Bangladesh is SMEs. Therefore Quality is planning to collaborate with SME (Approximately SME have 70 suppliers in bakery, fast food, vegetables, beef, and chicken. There are few more such as Shiblee hatchery & farms will provide all types of traditional food.
There are different types of business which is discussed by( lonhnecker, 2010) which is brand new business, take over running business, franchise and family business. Therefore quality will be a new business which is not exists in the market for retail services. The suitable ownership in start- up business may depend on owner determination regarding business profitability, risk and competitive advantages and value of business according to (foss and lien, 2010). There are three types of business those are sole traders, partnership and corporation. Quality will follow partnership business strategy. Partnership business will help in sharing capital between partners, more flexibility to run the business, shared responsibility, easy to make decision. This business will consist with four partner .Every partner will share 25% capital.
3.1. Target market segmentation:
The target market segmentation usually can be segmented on the basis of customer characteristics. These are follows:
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Geographic ( includes country, region, counties, customer density, climate)
Demographic (includes age, gender, life-cycle, income, social class)
Psychographic ( degree of loyalty, occasions, interest and hobbies)
The perfect place of quality to do business in Dhaka city because people are gathered there from every corner of the country as well as outside of the country where the people passing at Least 20 hours in a day. Quality has a opportunity from the large number of workforce, good communication for delivering raw materials to other branch. The best place quality looks near the school, shopping centre and the corporate offices. Most of the student who are just finished class feels hungry and starved looks for nearest fast food or restaurant around them. And people love shopping and go out with their family, quality will look for getting that customer. People who work in the office they may look for lunch or dinner.
Quality is targeting people all round of the city such as all aged people (10-64) years, low income , middle Income, high income people . Quality concern to launch their product with thinking those kinds of consideration. Because different age people have different food criteria to eat. Example most school student aged 15 years has attraction to fast like burgers , fries , ice-cream etc because of their taste preference even though. They will not be able to pay that sum of money; they usually get allowance from their parents. Middle age people in Bangladesh are becoming hectic day by day they probably go out with their family to have lunch or dinner therefore they prefer rice and curry so quality need to develop their menu according to those consideration .
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Some potential business thinks to get on with their own plans. Some business think to analyse their to help management their competitive advantages and disadvantages. Also to understand competitors present, past, forecasting business strategies. Quality focus on their key competitors KFC and nandos both are located in Dhaka city and they their main competitors in that industry .Competitors analysis are as follows:
Table: 1
Content
Competitors 1 ( KFC)
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Competitors 2 ( pizza hut)
Location
Dhaka , Bangladesh
Dhaka ,Bangladesh
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Established date
September, 2006 in Bangladesh
May, 2003 in Bangladesh
Strength
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High brand equity
High business growth
Large amount of cash flow from franchise.
Available capital reserve to expand the business
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World wide recognition
High brand equity
Specialized in Pizza
Restaurant services and delivery services
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Good reputation
Weakness
Sales margin decline
Labour turnover due to lack of opportunity
High obligation from parents company
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Only based on chicken product
Unplanned pricing
Based on pizza services
High overhead cost
Unplanned pricing
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Focused on same ingredients in everywhere
Opportunity
Market leadership due to high brand equity
Targeting all aged people
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Interacting with good suppliers
New market leadership
Introducing with new ingredients
Opportunity to reduce the price to make it more affordable
Threat
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Threat from other competitors in that industry
Significant change in customer demands
New rules and regulation impose by government
Threat from other competitors in their revenue
Changing in customer demands
New government policies
Market share
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Covering 40% in Bangladesh
Covering 36% in Bangladesh
Political factors defines as ‘government stability, taxation policy, introducing new law and regulation by the government,(Henry , 2008) .The political is regulated by elected government .The political issues in Bangladesh is much viable than the last decades to establish a new business. Elected government usually impose the new policy according to their election agenda. Bangladesh government is planning to launch some very effective scheme for the new investor with decreasing value added tax, business tax, income tax. There is also a legal issue which would affect quality such as new employment law, increasing minimum wages.
Economics factor which affects on the running of the business activities. It is undertaken In order to forecast the success of the business or evaluating the business risk involves economics activities. It includes unemployed of the country, buying power of consumer, demand and supply, inflation, economic resource, income level of personnel. Bangladesh Nowadays comparatively economically viable to invest than all other developing country. Because of low labour cost , Bangladeshi labour gets average us $ .22 dollars per an hour , rapid change in buying power for consumer, in order to more investment in Bangladesh it decrease unemployment level .
The social environment factors defines the combination of customs , poverty, literacy, life expectation, value , tradition , religion . In Bangladesh is improving in poverty level, people are being more literate, and most people are Muslim they prefer halal food. Quality has a wide concentration on those factors
In major way , businesses are frequently developing their technology to platform to developing their business plan. Nowadays people have more attraction on using Social networking through Internet , all the businesses may get opportunity to advertise through Internet, business can use EPCS( electoral point of controlling sales) to evaluate their right stock , card payment against sales to help out the consumer on holding cash. So quality is concentrating on those issues.
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4.0. MARKETING STRATEGY:
Primary research is short – term decision process. It includes observation on customer behaviour, taking face to face interview, focus group, online survey about relevant business. Observation process was done by Quality on strategic location where intended to open up their business. Data of market activities was collected through interviewing on customer with their expectation and who involves in those industries. Online surveys, it is very popular and relatively low cost, Quality has done their online surveys through over viewing on existing customer and potential customers comments. Quality has turned up to focus group to get more information about customer tastes and preference.
Secondary research is a collection of data what is already exists. Secondary research follows outside information clustered by government records, labour unions, media, newspaper commercial sources, These are usually free and provide a lot of good information. Quality has collected data from government statistics to understand about where more people are gathered for several purpose, their ages and their occupations and current growth in Bangladesh (6.5%). Quality also has done their research on commercial market report prepared by research experts that helps to evaluate the business risk, the size of the market, and market shares within these sectors. Example in Bangladesh food industries kfc covering 40% of market and pizza hut is covering 36% of market shares.
Combination of several market elements is called marketing mix. This element refers to 4p’s which are product, price, promotion, Place.http://www.marketingplan.net/wp-content/uploads/2010/11/four_principles_of_the_mark-300×300.gif
Figure : Price, Product, Promotion, Place the process of implementing marketing strategy
The product strategy is usually reinforced through marketing research. In terms of customer needs and desire, every company must amend their product strategy. The product concept describes the products details; it includes colours, flavours, objectives, and even the price. Before launching a product in the market, the product must be tested with customer. So, in that Circumstance Company may choose focus group that discuss about customers like and dislike. So, Quality will implement that making strategy on their making food with introducing right colours, right flavour, and relevant ingredients.i.e. Some of customer sometimes they turn up to the restaurant without knowing about the food description. So product information will help to evaluate what will be best for them.
There are three aspect of a business to set up pricing .
4.2.2.1. Cost based pricing
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4.2.2.2customer based pricing
4.2.2.3competitors based pricing
This pricing strategy is determined by adjusting profit on top of the product making cost . It is known as cost plus pricing. It uses widely in all major business operation. An opportunity to use that strategy to understand the business costs are covered. Quality will follow that strategy to forecast their profit mark up. Quality will use 20% mark up on cost:
Sales
100
20
Selling Price
120
This strategy is determined by what a business assume customers will be prepared to pay . This strategy refers penetration pricing which usually help to increase market share, it offers the opportunity to increase the price when the objective has been achieved.
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Basically markets are full of strong competition . The customer always buys from the cheapest provider and who is providing great customer services. But the customer may make their who offers reasonable price with better quality. Quality will research their nearest competitors to fix up their pricing of product.
Therefore quality intend to set up their pricing strategy base on 3C’S where calculate all the cost with adding profit.
Figure 2: Pricing strategy base on cost, customer and competitors
Promotion strategy is part of the marketing mix elements, It uses frequently in marketing plan. The business usually uses promotion strategy to deliver information to consumer, to increase product demand, to increase, to differentiate a product. It includes personal selling, sales promotion, direct marketing, and publicity (Rajagopal, 2007). Basically Quality will follow different ways to promote their food menu, Quality is intending to use media to advertise their food to bring more customer such as Facebook through internet (nowadays more people are addicted on it) there is an opportunity to cope up large number of customer, Local newspaper ( Prothom- alo most popular newspaper in Bangladesh ). In initial market plan, Quality will give out a discount card on purchasing food as well as discount on age range. Quality will introduce with ‘special offer’ to promote their food menu as like buy one main course then second one half price. Quality will research their competitor’s promotions strategy to understand what they are actually doing in promoting their product. Quality will keep their promotion campaign as long as their strategic objectives will be achieved. Promotion strategy as below:
Place or distribution define how the product and services gets to the customer for consumption ( kotler, killer & burton, 2009). This is the method a business to get their product through diffrent channel those are as follows:
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Figure 3: There is 3 distribution channel, channel 1 and 2 indirect marketing and channel 3 direct marketing.
Channel 1 has two intermediary levels – whole seller, and retailer. Normally wholesaler buys and stock large number of quantities of goods.
Channel 2 has one intermediary level which is retailer. In typically they act as retailer in a consumer market. Some big production company produce their product and sell it to large retailer and e-retailer. This is basically happens more in supermarket business and electronic business.
Channel 3 is called direct- marketing. There are no intermediary levels. In that case manufacturer sells directly to consumer. Quality is looking for direct marketing to reach to consumer. Quality will make the product and sell to customer directly. Quality is also planning to start to delivery service to customer directly to their home address to increase their revenue.
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Normally all the business may obtain their license from city corporation. To obtain trade license Quality will provide the following to Dhaka City Corporation are as follows, copy of the company’s articles, statement of bank solvency, corporation tax code number, photographs and name of the business persons.
To make a business every business must register with tax authority under national board of revenue. Usually all the business acquires tax identification number (TIN code) for the new company. For the VAT purpose, all the business needs to be registered separately with VAT commission (under NBR). Quality will go through all those process to launch their business proper pathway.
Organisational chart are used in association with job description. Organisational chart draw a map for management process. Organisational chart provides the guidelines to employees by giving lay out the official reporting engagement (Ingram, 2009). Without the organisational chart employees may find difficulties to understand what responsibilities are there? So Quality will follow up the organisational chart to allocate each employee responsibilities. Qualities organisational chart as follows:
http://www.myexceltemplates.com/wp-content/uploads/2011/03/Small-Business-Organizational-Chart.jpg
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Figure 4: Organisational chart of Quality restaurant
We believe that the personnel plan depends on the size of the business and expected revenues. Quality will recruit approximately 13 full time and 7 part time employees, who will work a total of 700 hours per week.
All the staff will be well trained before starting work. Because there are many opportunity can obtain by investing on staff training. First of all, staff will be very efficient doing their work, then well trained staff will help to reduce the business risk, they will be able to perform in any given task.
Corporate social responsibility is the process to embrace responsibility for the business actions and influence for a positive impact through its actions on the environment, consumer, employees, communities. Quality will speculate that issue. Therefore Quality will introduce with CSR scheme to help environment, employees, and communities. Quality is assuming 2% of profit to invest in CSR.
The financial plan consists of a year profit and loss assumption, a cash flow assumption, balance sheet assumption, breakeven point, net present value of project. Quality is planning to finance TK.10000000 which will be provided by 70% of partners of the business and 30% as a bank loan.
Every business have varieties of start up expenses it includes cost of capital, professional fees, administration cost, sales and marketing cost, wages and benefits. Quality will spend initially Tk.5500000 and rest will keep for further business operation, expenses as follows:
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Table:2
Expected : Cost of sales( Raw materials, equipment, furniture, packaging, insurance)
TK. 4000000
Rent ( FOR YEAR 1 in advance)
TK.1000000
PROFESSIONAL FEES
TK. 100000
Sales and marketing cost
Tk. 200000
Technology fees
Tk. 100000
the sales projection indicates, sales operating expenses, collection days, and inventory turnover. The sales growth will be 150% each year. QUALITY is planning to keep gross margin 35% each year.
http://www.bplans.com/benefits_administration_business_plan/images/8df5decd340f4ab28c2048fa268c889b.png
All the businesses concern to determine how much income business must need to pay off their expenses. At that stage business tries to make a breakeven point analysis. Businesses at least need to make the cost of staying in the market place. Businesses make their assumption about breakeven point when fixed cost is covered by sale. So QUALITY is assuming that their fixed cost will be TK. 200000 (Equivalent to $20000), so QUALITY need to make their sale at least TK. 2000000 to make a breakeven point.
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