B Plan for Café Sahara

Guided by MR Jain Sir

Made by Arya Khatri
 EXECUTIVE SUMMARY
Café Sahara is a start-up coffee house establishment located in Gittikhadan. Along wi
coffee different varieties of Expresso, tea, juices, Kava, Starters would also be served. Café Sahara
expects to catch the interest of a regular loyal customer base with its broad variety of coffee,
Expresso, tea, Kava, juices varieties. The company plans to build a strong market position in the
town, due to the partners' industry experience and mild competitive climate in the area.
The Café Sahara staff members who prepare the coffee, Expresso, tea, juices, Kava, Starters
varieties
are highly trained and experienced. They know how to prepare an excellent Arabian and different
coffee, Expresso, tea, juices varieties. We use the highest quality equipment and ingredients to
deliver a noticeably superior product.
Our design style is different from all other coffeehouses and sheesha parlors, an upscale "Arabian
" look. It features stained glass decorations, art glasswork, Arabian style furnishings and outdoor
dining.
Café Sahara aims to offer its products at a competitive price to meet the demand of the middle-to
upper middle-income local market area residents.
 About us….
Products and Services
Café Sahara offers a broad range of coffee, Expresso, tea, Kava, juices, Coffee beverages are all
from high quality Columbian and Arabian grown imported coffee beans. Café Sahara caters to all of
its customers by providing each customer coffee and food products made to suit the customer, down
to the smallest detail.
The Market
Café Sahara wants to establish a large regular customer base, and will therefore concentrate its
business and marketing on local residents, which will be the dominant target market. This will
establish a healthy, consistent revenue base to ensure stability of the business. High visibility and
competitive products and service are critical to capture this segment of the market.
 Mission
Café Sahara aims to offer high quality coffee, Expresso, tea, Kava and juices varieties at a
competitive price to meet the demand of the middle- to higher-income local market area residents
Keys to Success
Keys to success for Café Sahara will include:
1. Providing the highest quality product with personal customer service.
2. A relaxing, upscale interior Arabian design.
3. Competitive pricing.
4. Highly trained and friendly staff.
 Our Menu...
Coffee Drinks

Name Regular Large

The Banana Nut Java 20 30
The Cafe Milano 22 30
Coffee of the day 15 25
De cafe 17  27
 

TEA DRINKS
Iced Tea Rs.15 small Rs 20 medium Rs 25 large
 
Hot Tea Rs 17 regular
 Peppermint
 Herb Apricot
 Earl Grey Lavender
 Darjeeling (Rs 35 regular)
 Golden Flowers Herbal
 Herbal Lemon
 Tropical Green
 Name Regular in Rs Large in Rs

Fresh squeezed orange juice 25 35

Old-fashioned Lemonade 15 20

Genesis Juice 30 40

Crystal Geyser Juice Squeeze 25 32

AND OUR SPECIALITY Name Price

FOR KAVA….
Kava 20

Kava ( cardmon) 25
 OBJECTIVES OF BUSINESS PLAN
 
 

Café Sahara objectives for the first three years of operation include:
Create a comfortable environment through apt ambience.
 Keeping drinks cost at less than 35% of revenue.
 Keeping employee labor cost between 37-39% of total sales.
 Remaining a small, unique cafe with eclectic drinks and service.
 Averaging sales between Rs4500000 – 7000000 per year.
 Promoting and expanding the Café Sahara concept as a unique midtown cafe.
 Expanding our marketing and advertising in Nagpur and in the neighboring suburbs to increase
our customer base.
 Achieving a profitable investment return for investors for Years 2 - 6.
 
 SWOT ANALYSIS
Strengths
 Good relationships with many perspective customers in the target market.
 Strong family name recognition and equity in the community.
 Well trained employees.
 Free home delivery.
 Huge profits.
Weaknesses
 The need for reliance on outside borrowers.
 The learning curve associated with entering an industry without direct prior experience.
 The need to have a fairly constant volume of business to support the necessary service staff.
 SWOT ANALYSIS
Opportunities
 Participation within a steadily growing industry.
 Potential investment.
 Locational advantage.

Threats
 Future/ potential competition from a franchised firm.
 A slump in the economy, reducing discretionary spending.
 Social issues.
COMPETITIVE ANALYSIS AND EDGE

 
 A significantly higher quality better tasting coffee, Expresso, tea,
Kava, juices, varieties.
 Our current location can arguably be considered the best in the
market.
 An ambiance superior to all other coffeehouses in the area with
upscale "Arabian" look.
 It features stained glass decorations, art glasswork, Arabian style
furnishings and outdoor dining.
 The only coffee plus to provide regular weekend evening
entertainment.
 A wider variety of popular drinks than our competitors, including
flavored coffee and Expresso drink, tea, and juice. We have
several drink options for people who don't drink coffee.

 
 BASIC STRATERGIES
1. Analysing the market conditions by surveying method like personal interview.

2.Setting-up a written plan as a road map and follow it, check it daily and see if you are sing from it
and if so make course corrections.

3. Hiring people by self and train them self - no one knows what is wanted better than us. Teaching
them to shut up and listen.

4. Keeping employees happy. A happy employee is less likely to steal, more likely to exude joy and
as a result will result in happier customers.

5. Talking to the customers as they leave the store, the ones that bought will tell what they likes, the
ones that didn't buy will tell why they didn't buy, listen and take notes.

6. Offering huge discounts.

 MARKETING STRATERGY
A. Distribution strategy

The distribution involves a number of activities centered on a physical flow of goods and
information. At one time the term distribution applied only to the outbound side of supply chain
management, but it now includes both inbound and outbound

B. Pricing Stratergy

Pricing strategy has been consistent with the differentiation objective, to provide added value for a
reasonable rate as opposed to discounting and de valuing our products and services.

C. Promotion strategy
Promotion is one of the four elements of marketing mix (product, price, promotion, distribution). It
is the communication link between sellers and buyers for the purpose of influencing, informing or
persuading a potential buyer's purchasing decision
 D. Product strategy
The product is the catalyst for the start of a business and the development of product strategy one of the most important decisions a
marketer will make since product plays a crucial role in demand, competitiveness and success. The managers analyze the
ramifications of the product strategy on other areas of marketing like price, distribution and promotion.

E.STP (Segmentation, Targeting and Positioning)

  Segmentation

Any industry has segmented its customer in the following ways:-

 Understanding needs and preferences of consumers

 Grouping customers based on their needs and preferences -- Customers with similar needs and preferences are included in this
segment.

 Targeting the segment that the company can best meet the needs and preferences of - The Company targets the customers, of
which it can meet the needs and preferences. I.e. customer needs higher- strength or low price.

 Branding the commodity -- Though being a commodity product, branding is important for a company.
Provide required product to meet targeted customers' needs and preferences -- Delivering up to the expectations of the targeted
Targeting

For my Café , I target the market and the customers by the following ways:-

1. Designing an attractive Café banner.

2. Offering minimum price on items in Café to the customers.

3. Offering the coming customers in the Cafe a welcome drink.

4. Introducing special seating arrangement for aged people, disabled people.

5. Providing discount offers on Café items to youngsters.

Positioning

A good brand positioning help guide marketing strategy by clarifying the brands essence but goals it help the
consumer achieve and how it does so in a unique way. The result of the positioning is the successful creation of a
customer focused value proposition, a cogent reason why the target market should buy the product.

 
 FINANCIAL DECISIONS
Here are our expectations
Performa Financial statements and projected cash flows
Café Sahara expects to raise 15,00000 of its own capital, and to
borrow
15,00000 guaranteed by the bank loan loan. This provides the bulk of
the current financing required.
Projected Cash Flow
 
The cash flow projection shows that
provisions for ongoing expenses are
adequate to meet Café Sahara needs
as the business generates cash flow
sufficient to support operations.
 RISK IN BUSINESS
Lack of management experience (address this risk by getting advice or mentoring from your
business adviser, accountant or solicitor).
. Little trading history (this will make it difficult to borrow money or receive credit, so you might
need to make other plans to finance the business initially).
. Economic uncertainties (if you are borrowing money and paying interest, for instance, make
contingencies for interest rate increases).
 Over-reliance on key staff.
 Over-reliance on a few suppliers.
 Over-reliance on a small customer base.
 Customer bad debts leading to cash flow problems.
 Partnership difficulties.
 A sudden increase in competition.
 Security issues.
 Failure to meet your sales targets.
 Lack of resources at key stages of development.
 
THANK YOU!!!!