BUSINESS PLAN

HASU
FOODS
BY,
S. HARI HARA SUBRAMANIAN

INDEX
S.No

Topic

Introduction

Executive Summary

Organizational Hierarchy

Marketing Objective

Market Analysis

Market Strategy And marketing Mix

Sales strategy

Innovative Marketing Strategy

13

Break Even

14

10

Financial Analysis

11.

Economic Feasibility

20

12

Summary

21

1.0 Introduction:

Page
2
2-3
4
5-6
7
8-9
10-12

15-19

1.1 About HASU FOODS

We are planning to set up a food court in chennai city which offers deep assortment of
traditional variety of cuisines available in various parts of country under one roof.
2.0 Executive summary:

We will be starting novel concept of food court in Chennai.

As per CII estimate 2009 because of increase of rising per capital income Food

industry will grow to US$310 billion by 2015.

Food Industry is growing at the rate of 13% estimate CSO (Central Statistical

Organization)
Thus there is a huge market potential and no player has tried to offer this concept of
serving variety of regional tastes under one roof. This place will provide a traditional
taste and traditional environment means ambience of particular food court will resemble
to that of the place from which it belongs, e.g. (Punjab with vibrant surrounding
representing euphoria feeling, Kerala with majestic and natural beauty of beaches and
high tech global standard facilities). Its a unique combination in its own concept. After
enough market research, we have found that people miss food from their native places.
They want a place where they can enjoy their native place food. The food court is all
about catering to need of these types of customers. We will acquire half acre of land
strategically located to be easily accessible for the customers residing in Chennai.
Total estimated cost of land is around Rs. 2.5 Crores (at Rs. 1150/- per Sq.
Ft.).Construction Cost Rs. 2 Crores which utilizes 10000Sq. Ft. of area (at Rs 2000per sq
Ft.) .Remaining space would be used properly to present landscape beauty and to engage
children for entertainment. Initial project cost would be Rs 5 Crore. Contribution by
Promoters will be Rs. 1 crore and Bank loan of Rs. 4 crore. We will be repaying loan
with an EMI of approximately Rs nine lakhs per month .The loan would be repaid over
five years period. We will be able to breakeven in 3 years of time.
3.0 Organizational hierarchy:

There will be 3 Functional heads for this firm who will be handling various

managerial positions.

They will be responsible for managerial decision making.

For day to day working several staff will be hired on monthly salary for various

positions which include from sweeper, to clean boy, to cook, to accountant, to assistant
manager, to a head for the food court supervision.

We plan to hire roughly 10 Assistant manager, 20 cooks, 40 assistant workers to

cook, 50 other helper boys for cleaning and taking order and for service.
3.1 Vision:
To constantly innovate & provide the best that we can for our customers
To be recognized as pioneers in the multi-brand food court management, utilizing the
highest levels of corporate & with dedicated employees and partners
3.2 Mission:
To provide integrated food management support and solutions for our partners
So that every customer gets highest level of food quality & outstanding service in a
hygienic & fun dining environment
4.0 Marketing objective

To achieve annual growth sale of 25% on yearly basis.

To form strategic Alliance with, Haldiram, because we are sensitive to diverse

need of customer.

To become Market leader in Chennai.

4.1 SWOT analysis:

4.1.1 Strength

Location: - Our food court will be placed in such an area which can be easily

accessible from all part of city.

Experienced staff: - Our hired expertise staff helps us in providing quality food

service to our customer.

Ambience of place: - The feeling of being in their native place while dinning is

itself a pleasure experience which gives us an advantage over others.

4.1.2 Weakness

Lack of experience: Food court is a start up and the odds are laced against it.

Will face stiff competition from local players.

Financing: - Preliminary estimates of sales and expenditures suggest that it will

remain financially stable. However unforeseen expenditure or poor sales will threaten
cash position, which will be particularly vulnerable in one year.

Limited personnel: - Since we need expertise staff and to find and retain it is

very difficult because of the competition in the market.

4.1.3 Oppurtunities

Growing market: - restaurants market is growing at a fast speed and demand for

quality food is never ending.

Potential to become a premier food provider: - because of the experienced and

expertise staff we can deliver quality food products. Also the use of technology like
Surface technology on table makes it quite innovative and a new experience.
4.1.4 Threats

Local Competition (existing and potential): There are firms which specialize in

this concept of food court. Also local players are a threat to our business since they are
also competing for the same market share.

Economic downturn: The strong domestic economy has been good for the Food

and hospitality industry. Continued growth is anticipated. However, unforeseen or

unanticipated economic recession would reduce disposable income and threaten our food
court sales.

5.0 Market analysis

5.1 Market Segmentation:

Target Customers:
Age: Our target customers are family members within age group of 25-40 years.
Income: Our target customer will be seeker (2lac-5lac per annum), striver (5lac -10lac
per annum
Occupation: Professionals, Business man, Corporate
Behavioral: To build loyalty program with target customer.
Positioning: - Traditional Food with deep assortment and global standard services under
one roof.
5.2 Competitive Analysis :( On a scale of 1-5)
(Questionnaire asked from sample of fifty people within age group 25-40 years). This
analysis is done on various food joints on the parameters like food quality, ambiance,
taste, location, and price.

Food Quality
Price
Ambience
Service
Location
Customer

Murugan Idly

Saravana

Aanandha

Sangeetha

shop
4
2.5
3.5
3
3
0

Bhavan
3
3
3
2.5
3
0

Bhavan
2
3
1
2.5
2.5
0

3.5
3.5
3
3
2.5
0

Relation
Program
From various branches located across the city

6.0 Marketing strategy and marketing mix

6.1 Product mix
Product: We offer deep assortment of traditional food from different regions of country
under one roof .We will offer global standard services and rich ambience.

6.2 Pricing strategies:

Price: We will be using VALUE PRICING STRATEGY offering just right combination
of quality and good services at fair prices.
Product bundle pricing:
We will combine several products and offer bundle price at reduced price e.g., we will
offer special Flavor Thali meal at reduce price.
HASU FOODS itself is a food court and has more than 15 food brands under its
umbrella that offers a perfect cuisine-mix with an array of food variety to its customers!
The brands may be as follows:

Price: One or two products in each section will be kept at low price to attract the
customer .The product whose price is reduced should be price elastic to pull the customer
toward the food court.

Place: Our main focus is to pull crowd to food court by running promotional campaigns.
Other strategy is to focus on home delivery and corporate customers with the effective
use of information system to reduce the timing for logistics.
6.3 Promotion: We will be using Integrated Marketing Communication which will help
food court to develop a consistent, clear and compelling message which will be in sync
with food court positioning strategy.
6.3.1 Promotional opportunity:
As with robust growth of economy per capita income is increasing and more shift is
toward discretion spending. Thus offering great opportunity to promote our concept to
target audience. We will be giving important consideration for spending on promotional
budget.
6.3.2 Objective of Promotion:

To ensure awareness, knowledge about the food court concept to target customer.

Next stage is to use promotional strategies to develop liking, preference and

conviction for the concept.

Last stage is to develop conviction and purchase for the selected target

customer.
6.3.3 Promotional Strategies:
1st Stage

To ensure awareness and knowledge among target customer. We will be Using

Buzz Marketing (attracting opinion leaders) and word of mouth publicity.

Advertisement through local media network (cable, newspaper, and magazine).

Participating in food fest and organizing food fest competition.

Using subliminal advertisement strategy in cinema hall to develop awareness of product.

2nd stage of strategy:

Using direct marketing concept to reach selected customers via E-mail.

Organizing cultural event every weekend to pull crowd to food court and develop

liking and preference for the place.

With the application of data base management system tracking customer

purchase, frequency and preference to build customer loyalty program.

6.4 Positioning Message:
Our positioning message

from every channel of media vehicle is going to promote

traditional Food with deep assortment and global standard service.

Evaluation: Implement consumer feed back survey to selected target consumer to check
success of IMC campaign on parameter like Branding, Image, and Positioning after three
month of promotional activities.
Budget: Budget would be Rs 19.2lac per year.
7.0 Sales strategies

To generate majority of revenue for food court by pulling customer to food court

location.

To target corporate office in the town and offering them special corporate prices.

To target carefully selected customer through DIRECT MARKETING using E-

mail for better generation of revenue from Home delivery business.

8.0 Innovative marketing strategies

8.1 Application of information system(Microsoft surface Technology Computers)

In maintaining customer database on parameters like Amount of purchase,

frequency, preference etc.All this activity help us to build loyalty program with profitable
customer.

We will be using Microsoft latest surface technology computers with which

customer will just have to put menu on surface of computer and will get all information
regarding cuisine of his liking .This will substitute waiter role and help in cost reduction.
Not only this they can pay bill by using their credit/debit card just moving card over
surface of item order that display on computer surface screen.

To greet Loyal customers on special occasions (marriage anniversary, birthday

anniversery).
Strategic alliance:
1 Form strategic Alliance with Sweet Chariot, Haldiram.This would
help us to cater diverse need of our target customer .In addition we will be taking rent
from them which will contribute to our miscellaneous revenue.
2. Promotinal strategy:
Installing kiosk in busy place like railway station ,majestic bus stand, advertising about
food court and help any consumer to download song free of cost, access tourist places in
Chennai, famous goods produce in Chennai .one option on the site provide wealth of
information about assortment of product available with food court.
3. Setting up website
Website which offers advantage better than web, Customer can interact with site, provide
their feed back and write blog about their experience in food court. We can use this site to
offer wealth of information about nutrient content of our products.

4. We will organize cultural programme every week to pull crowd towards food court.
We will be spending Rs 40,000 per month on this activity.
9.0 Break even analysis

We plan to break even within a period of three years, though we plan to repay our loan in
a period of 5 yrs. Fixed cost of investment is Rs 4.5 cr that we have spent on building and
land. We will break even at a Revenue of Rs 21.8 Cr
10.0 Financial analysis
Year - 2010
Cash Account
Revenue
To Capital
To Loan from
Bank
To Cash Sales
Total
Expenses
By land and
Building
By Purchase
By Equipment
Salary
Electricity
Insurance

(All Figures in Rs)

10000000
40000000
60000000
110000000

45000000
18000000
3800000
9000000
4000000
500000

Consultancy Fee
Stationary
Legal
Other Expense
By Interest
By Tax
By Repayment of

100000
50000
10000
440000
4800000
5984748

Loan
By Advertisement
By Balance
Total

5877292
1920000
10417960
110000000

Profit and Loss Account

To
Depreciation
To other

2000000

Expense
To purchase
To Interest
To

15500000
18000000
4800000

Advertisement
1920000
To tax
5984748
To Net Profit
11795252
Total
60000000
By Sales
60000000
Total
60000000
Balance sheet
Liability
To Capital
Loan
Loan Repaid
Loan to be Paid
Profit
Total
Asset
Land
Building after
Depreciation
Cash
Equipment

10000000
40000000
5877292
34122708
11795252
55917960
25000000
18000000
10417960
2500000

Total

55917960

Cash Flow Statement

Cash Flow from operating
activities
Paid to Suppliers(Purchase)

18000000
-

Paid to office Expenses

Paid for Advertising
Sales
Tax

15500000
1920000
60000000
-5984748 18595252

Cash flow from Investing

Activities
Land and Building

45000000
-

Equipment

25000000 47500000

Cash flow from financing

activities
Share Capital
Loan
Interest
Repayment of Loan
Net Cash

10000000
40000000
-4800000
-5877292 39322708
10417960

Year 2011
Cash Account
Revenue
To Balance
To Cash Sales
Total
Expenses
By Purchase
Salary
Electricity
Insurance
Consultancy Fee

(All Figures in Rs)

10417960
72000000
82417960
22000000
10468000
5184000
450000
108800

Stationary
Other Expense
By Repayment of

54000
475200

Loan
By Interest
By Tax
By Advertisement
By Balance
Total

7158567
3518725
12661723
1920000
18418945
82417960

Profit and Loss Account

To
Depreciation
To other

2000000

Expense
To purchase
To Interest
To

16740000
22000000
3518725

Advertisement
1920000
To tax
12661723
To Net Profit
249954804
Total
83795252
By Sales
72000000
By Profit B/D 11795252
Total
83795252
Balance Sheet
Liability
To Capital
Loan
Loan Repaid
Loan to be Paid
Profit
Total
Asset
Land
Building after
Depreciation
Cash
Equipment
Total

10000000
34122708
7158567
26964141
24954804
61918945
25000000
16000000
18418945
2500000
61918945

11.0 Economic feasibility

11.1 Start up cost of acquiring land and building food court is Rs 4.5 crore including 2.5
crore&2crore respectively. As we are introducing new concept of food court in Chennai
for the first time and our plan is to offer 20 different food sections presenting different
state rich food culture. So this is the reason why we have acquired half acre land and built
10000sq ft. area to provide world class services to customers and for rest of the space we
have planned to maintain beautiful landscape to provide ambience and delight to
customers. This scale up project of running 20 different food court and strategic alliance
partners. We will be expecting 1000 customer per day from first month of our project. In
addition we will be catering home delivery and corporate customers. We have estimated
to breakeven in 3 years. We have not acquire more than half acre because this is our first
pilot plan .After successful implementation of plan we will be coming up with large scale
up project.
11.2 We have planned to hire three functional head for managing services, marketing, and
operation. We plan to hire roughly 10 Assistant managers, 20 chefs, and 40 assistant
workers to cook, and 50 other helper boys for cleaning and taking order and for service.
The salary expenses of staff and managers would be Rs 9 lacs per month. The staff
number is on higher side because we have to offer deep assortment of product every day
to our customers and provide them with world class services. That is our main value
proposition. As our revenue increases we can hire more staff depending on concept of
Marginal Revenue per employee contribution.
11.3 We have budget of Rs19.2 lacs per year on advertisement and promotion because our
concept is new in the market. So success of the plan would depend on how fast effective
promotion campaign will pull crowd to food court location. We also have recruited
marketing head to ensure successful implementation of plan that is to pull more than
1000 customer to food court on per day basis and more than 500 home delivery or
corporate order from first month of operation.

12.0 Summary
We have introduce novel concept of offering deep assortment of traditional food with
cultural ambience of surrounding and to match with world class Services. To offer best
taste in our recipe we have carefully recruited chefs from all parts of country. As we are
spending Rs 2000 per Sqft. On constructing food court complex to offer our customer
ambience. We will be implementing many new market strategies to break through the
clutter and emerge as leading player in fast food chain in Chennai. We have done full
proof analysis of financial status. We have plan to breakeven in three years.
After successful implementation of our first pilot project in Chennai .we will be
starting our project in other metro of country. We will also scale up our project in
Chennai food court by utilizing unbuilt area for establishing Gaming center for children,
Spa, ultra modern fitness center.