BUSINESS PLAN DEVELOPMENT
Submitted in partial fulfilment of requirement of the degree of
Master of Business Administration (MBA)
BUSINESS CATEGORY:
Food & Beverage (Product type)
BUSINESS PLAN:
Opening a Cake cum Ice-cream Shop
Name: A little piece
DEVELOPED BY:
(Name of the Student)
REGISTRATION NO: 01044 OF 2020-2021
VU ROLL NO: PG/VUOPA02/MBA-IVS/474
EXECUTIVE SUMMARY
“A little Piece” is a Cake, Cookies & Ice-cream type shop. Where we provide the delicious
flavour of cake, cookies & Ice-creams etc. Our focus is to grab the attention of the customers
on this kind of food & beverage type business.
A little piece is one of the testy flavours providing cake and ice-cram shop where we
naturally provide customized Cake & cookies on the basis of customers need. At our business
we generally provide some extra quantity of food.
“The Little piece” our she will be located at South Kolkata at Garia, near Garia Metro,
Kolkata and the sole owner is Mr. Shibasish Mitra. The purpose of this business plan is to
secure start-up financing. We project that our business will reach the break-even point in its
six months of operations. The projection outlined within this business plan indicates
sufficient funds for repayment of the requested loan.
OBJECTIVE
The Little piece has the following objectives:
To be the primary one-stop-shop for the all type of customer who loves to cake,
cookies and Ice-cream like delicious foods.
To have vigorous sales in the first 12 months of operations.
In year 2, to have sales more than double first level and net income at least of 12% of
Sales.
MISSION
Our “The little Piece” cake & cookie shop provides that a fully new home-made
customised flavour of fully new testy cakes & ice-creams parlour.
We believe in providing superior customer service and creating an eating experience
that is relaxed and pleasurable.
We also believe that at our shop the working environment for employees will be more
eco-friendly by which they can give them afford to satisfy the customers at the time of
their shopping.
KEY TO SUCCESS
To be successful in this business Brand Awareness is must and also promotion:
Generate and preserve a reputation of being the one-stop-shop for the Cake Lover also
Ice-cream lovers to purchase for their occasion purpose.
Establish a strong referral network among others in the Cake Shop or outlets to
mention us.
Our Promotion strategies will be We will be targeted the school, colleges as well as
shopping mall where we serve free sampling of our foods.
Provide stellar customer service.
Maintain a fresh mix of ingredients.
Cake & Cookies & Ice-Cream products needed to prepare
Our Catchy name of our Business will be attracting the customers this kind of Testy Foods :
So let I would like to mention that to prepare of our customize cakes and cookies
firstly needed the ingredients which will be purchased from the wholesaler market of
Kolkata. We will aim to provide products in a wide variety of flavours among the
customers.
As we know that Cake, Ice-cream are very testy and lovely for every age of people so
in our including ingredients we will be used healthy ingredients which will be good
for health for everyone.
When a customize cake will be order then at that time, we will take the full details or
concept from customers end what will be the degine he or she wants in their cakes. At
that time 50%, non-refundable deposit will be required. Full payment will be due
before the customer can take Cake or Cookies or cake they ordered from the store.
Most of the case we can see customers forget to collect their order at the time so its
will be our duty to remember them at timely as well as we can delivery at the time
which is free of cost.
Mostly we can see that in this kind of business the range of customise cakes, cookies
and Ice-cream are soo much highly expensive but at our food we will be provide in
very rangable which can afford by every people.
At our food products we using all trained SHAFS whos’ are skilled in their way to
prepare all type of Cakes Cookies and Ice-creams. And its will be discounted on the
basis of weekly, monthly and sessional based offers means (time based). The success
rate will be measure after delivered of each product of each customer.
MARKET SEGMENT ANALYSIS
It can be defined as the process of dividing a market of potential customers into groups, or
segments, based on different characteristics. The segments created are composed of
consumers who will respond similarly to marketing strategies and who share traits such as
similar interests, needs, or locations. The four kinds of market segmentation are:
Geographic Segmentation: It is when a business divides its market on the
basis of geography. Geographically market can be segmented by area, such as cities,
counties, regions, countries, and international regions. It can also be done by breaking
a market down into rural, suburban and urban areas. We are considering people who
love authentic Bengali food. We will work specifically over north and central
Kolkata. We will also provide unique welcome to tourists from all over the country.
Demographic Segmentation: It divides the market into smaller categories
based on demographic factors, such as age, gender, and income. Instead of reaching
an entire market, a brand uses this method to focus resources into a defined group
within that market. We will have a wide customer base as we are welcoming everyone
irrespective of age, gender and class biasedness.
Psychographic Segmentation: It is a marketing strategy that leverages
customer data and, with a foundation in psychology, uses data to create customer
segments based on psychological characteristics. We will focus on people interested
in authentic taste and nostalgic environment.
Behavioural Segmentation: It divides consumers according
to behaviour patterns as they interact with a company. The objective
of behavioural marketing is to understand how to address the particular needs and
desires of customer groups and tailoring product or service to meet those needs and
desires. We will target those people who will love to have Ice-cream lovers delicacies
very often if not daily at least once in a week.
SEGMENTATION ANALYSIS
There are segmenting the market as per the basis of tase flavour and choice of cake lovers.
As we know that Cake , cookies and Ice-cream all time favourite for all peoples so we
prepare our food item as the basis of sessional occassion like , Birthday , Anniversary ,
Marriage ,Party and many more.
Birthday Cakes: As we mainly all time provide birthday cakes to every age people to make
their day wonderful.
Marriage cakes: The new couple starts their new beautiful life with good start So from Our
Outlet we will arrange some special offers at the marriage session to place order near us.
Anniversary Cakes: To never forget your love one’s Anniversary so we all time provide some
special gifts towards the customers who will placed orders for Anniversary Cakes.
Lets comes to segmenting Ice-cream lovers who are love to all time eta Ice-creams for them
we arrange some attracting contest at our outlet and lucky winner will get free tour pass for 2
day 1 Night at Simla tour.
TARGET AUDIENCE
Target audience is the specific group of people a company wants to reach with their channels.
They are the people who are most likely to be interested in the content, products, or services
provided by the company. Our target audience will be all kinds of people in Kolkata. We will
also focus on Home deliveries.
Target Market Segment Strategies
The focus of our business is to increase the eating habit of cakes, cookies as their basis of
needs.
As per the survey there are more than 100 outlets in our state of West Bengal for cake,
cookies and as well as ice-cream parlour. The all-branded Cake shops are mainly focused to
selling their foods in large scale but here our strategies are quite different.
We will be offering some special tour trips and offers which makes our business more
attractive near customers.
Secondly at our outlets we arrange some sitting facilities to test our delicious cakes, cookies
and Ice-cream with your special person and also can spend some quality time.
Also, our last but not the least Strategies to segment the market i.e., is College, School,
shopping mall visit with free sampling.
Competition and Buying Partners
Cakes, Cookies and Ice-cream are the most lovable for all age of peoples. And at our country
in India there more than 1000 of outlets are present of many reputed brand like -: “MIO
Amore”, “Mon-ginis”, “Sugar & Spices”.
So our all competitors are all-ready market leaders and they are all-ready well established in
the market. So, we can use and strategies like free sampling at many shopping malls, market
places, School, college by that to promote first our foods directly near the consumers.
We also will be marge other restaurants to deliver our cake, and ice-crems to make them our
as a channel partner.
For any new star-up have there are lots of struggles so as like that at our business end we
firstly target schools , colleges because as per the market survey its know that the little
children , or youths are mostly love to eat Cakes, Cookies and ICE-CREM like food all the
time So by campaigning to school , colleges where we can grab the opportunity to take the
lead for future purpose
Strategies and Implementation Strategies
At our business there is distinct advantages of being the only store of its kind in its market.
Our marketing and sales strategies will emphasize our unique advantages for our Sale
Increase as well as Brand Promotion:
Our wide-range of Designing cake, Cookies and Ice-cream will be so attractive at
near our customers.
Our First three months we will be provide some Special Offers to our Customers who
come regular or weekly basis.
Our wonderful location in a destination foodie area.
Menu list of our “The Little Piece” shop
We will provide a testy menu list to our customers:
Cakes are
Choco-Hazelnut Cake
Vanilla Cake
Pineapple Cake
Red Velvet Cake
Dutch Cake
Buter-scootch Cake
Tiramisu Cake
Jell-Cavin Cake
Photo Farm Cake
Fresh Fruit Cake
Marvel Effect Cake
Taffel Cake
Doll Cake
Jungle Effect Cake
Them Cake
Scenario Cake
We will provide this all-Unique type of cakes as the basis of Order.
Ice-Cream Are available in below flavour:
Biscuit-Sandwich Ice-Cream
Strawberry Ice-Cream
Fruit & Nut Ice-Cream
Chocolate Ice-Cream
Twin-One Ice-Cream
Vanilla Ice-Cream
We will provide many more flavour of Ice-creams.
SALES STRATEGY
Customers need to be acknowledged and attended to right away:
Everyone who walks through the door is preparing for a big event to celebrate their
occasion by our Special Cake & Cookies & Ice-Cream they are probably not in our
shop to browse or make a casual purchase via Swiggy, Zomato.
We will be campaigning or For Sales promotion free food sampling at every month at
city’s Shopping malls market place Railway stations etc by where we can increase our
customer base.
We will provide special attractive discounts at every sales purchases.
SALES FORECAST
As per the Sales forecast
Months 1st 2nd 3rd 4th 5th 6th 7th
Cakes 2000 2500 3500 2500 3500 4500 2000
Ice-cream 1000 1500 1200 18000 2000 2500 3000
Other Brekary 700 500 800 1000 600 1000 2000
Food Items
As per above Sales forcast we also ready to deliver our foods home delivery basis. As per the
above forecast we very soon reach our BEP sale point with-in 2 to 3 years.
FINANCIAL PLAINING
Our Cake cookies and Ice-cream business expects to be profitable by the end of its second
year of operations. To get the business up and running, we will need to obtain financing. The
initial market share will be modest; however, significant growth in market share is expected
due to the unique niche that the shop is targeting. The market share is expected to grow at a
more modest rate after year three.
PROJECTED CASH FLOW
The cash flow of “The Little Piece” cake, cookies and Ice-cream business is somewhat
unique. For items that are sold off the floor, the cash flow and revenue recognition is
traditional, in that full payment is received at the time of the sale, and the customer takes
possession of the item at that time. This is how most of the shoe sales will take place, as well
as some of the other accessory bakery foods also be purchased by the customers at the time of
buying Cake or ice-creams. However, most of the other items in the store have a different
flow. Let’s use a cookie, pastry, Barger as an example. The customer will try on a sample in
the store, and when she decides to purchase that food item, she or he will most likely can
placed order that particular food bakery items. The remaining balance of the order will be
taken after the delivery of the food. This timing issue has also been taken into consideration
for the costs of goods sold. The store will be billed for items when the items are delivered,
thus cash outflow for the cost of the item will closely match the cash inflow of the customer
paying the balance on the item
IMPORTANT ASSUMPTION
The following assumption are key to understanding the profit and loss projection
We do not sell anything on Credit- Our all-food items must be paid in full before they are
taken from store.
At our every outlet will be online payment facilities by scanning QR code throw G-pay,
Paytm, Phone-Pay etc
The advance payment of every order will be accepted via online or hard cash. Because most
of the ordered Cakes are ready to prepare at the day of placing order so at the basis of
assumption, we will be ready at every time.
Expected Assumption first 3 Months
Plan Month 1 2 3
Placing order 10 12 15
Daily Sales 1000 1500 2500
Daily footfall 25 35 50
SOURCE OF FUND:
Mr Shibasish Mitra have invested 800,000/-
Loan taken from bank 900,000/-
Total amount of investment 17,00,000-
STARTUP EXPENSES
Purchase new Shop outlet 500000
Interiors Decoration of The Shop 150,000
EQUIPMENTS AND SUPPLY purpose 2 150000
DELIVERY BIKE [{(EACH BIKE Rs. 50000/-
*2)} +50000]
MISCELLENEOUS ITEMS FOR BUSINESS 20,000
PURPOSE
INGREDIENTS 200000
TOTAL EXPENSES 10,20,000
*Rest 2,00,000 is for future assets.
SALARY AND WAGES
Salary of 2 PROFESSIONAL 60,000
SHAFES (3*20000/- each)
Store-keeper(2) (6000*2) 12,000
Store-Manager(1) 30000
ACCOUNTANT (1) 25000
DELIVERY BOY (4) (7000*4) 28000
TOTAL PEOPLE 11
TOTAL PAYROLL 155000
OPERATING EXPENSES FOR 1st YEAR
ADVERTISING AND PROMOTION 2250,00
CAMPAIGNING EXPENSES 75000
EMPLOYEE EXPENSES 1,550,000
ELECTRICITY CHARGES 50000
PROFIT AND LOSS FOR 1st YEAR
SELL 12,00,000
DIRECT COST 4,000,00
OPERATING INCOME FOR 1st YEAR
PROFIT FOR 1st YEAR (12,00,000 – 4,00,000) = 8,00,000
TOTAL OPERATING EXPENSES (100,00+100,000+25,000+90,000) = 2,25,000
GST FILLING 1,0,000 p.a
LOAN INTEREST 1,48,000 p.a
NET PROFIT 12,00,000 - (2,25,000+1,00,000+1,48,500)
=7,26,500
*2 nd year’s net profit is expected to be 5% higher than 1st year.
*3rd year’s net profit is expected to be 12% higher than 1st year.
CONCLUSION
Overall, I would like to make a concluding statement that Cake, Cookies and Ice-cream
business is one of the favourite food items for all age of peoples so our business will be
successful in very soon. In our outlets we will provide many more attractive offers. So overall
we can say this kind business will be give more millage in brekary industry and we will reach
BEP point very soon.
