PROJECT OF ENTREPRENEURSHIP

National University of Modern languages

(Management ScienceS Department)Business Plan : RAMZ D-Caf

Submitted to:- Sir Jawad JavedPresented By: RAMZ Management Team

Rahatullah Khan (12406) Aehtesham Bhutta (12396) Muzamil Hafeez (12410) Zeenat (12398)

[Detailed Bussiness plan of RAMZ De-Cafe]

[Marina Plaza Opposite Islamabad Stock Exchange Building, Jinnah Avenue, Blue Area, Islamabad]

RAMZ de-CafMarina Plaza Opposite Islamabad Stock Exchange Building, Jinnah Avenue, Blue Area, Islamabad.Table of Contents1COMPANY WITH ITS PRODUCT AND SERVICES

1The Industry:

2Company and the concept:

2DETAILED VIEW OF PRODUCT OFFERINGS

2Coffees:

7Teas:

11Drinks:

13Shakes:

15Sheesha:

16MARKET RESEARCH AND ANALYSIS:

18Target Market:

20BUSINESS MODEL

20Corporate plan:

20Mission

20Goals

20Objective

20Regulatory and legal issues:

23MANUFACTURING AND OPERATIONS PLAN

25Management Team:

29Employment Policies & Other Agreements and Bonus Plans:

30PEST Analysis:

31SWOT Analysis:

32Porters Model:

33Potential Entrants:

34Promotional Activities:

37Critical Risk Factors:

39FUTURE PLANS:

AcknowledgementFirst of all we would like to thank Almighty ALLAH (SWT) who gave us strength to accomplish this task.

We would also like to thank our parents for their spiritual nourishment towards our lives and careers.

Our humble thanks to our teacher Mr. Jawad Javed for his able guidance, and support towards completion this project. He has been truly motivating as a team coordinator of our group and was very supportive,Our special thanks to respected HOD MR. Nadeem Talib for his psychological support towards the project.Being the Leader of Team I Rahatullah Khan would like to present my special thanks for the untiring efforts and contribution of my team members (Aehtesham Bhutta, Muzamil Hafeez, and Zeenat) as this project cant be completed without their assistantance and cooperation and all other whose names are not mentioned yet, who were involved directly and indirectly for the completion this project.At the end we will not forget to thank all those individuals who share their views and put their efforts to extend our ideas. And help us to select this Business and share their valuable experiences in the food market.

EXECUTIVE SUMMARYIslamabad is a global city where people from all over Pakistan visit, reside and does their businesses. The changing trends of dinning out, eating out has opened new horizons for entrepreneurs such as unique restaurants as well as coffee shops. The younger generation willing to go cafes which provide high quality hot and cold beverages along with high quality technological services such as Wi-Fi so they can eat, drink and at the same time stay connected all over the world.

RAMZ de-Cafe will be the first ever coffee shop which will provide high quality coffees, teas, cold beverages such as pina colada, caprihina, Portuguese lemonade, tequila sunrise and so on.Opportunity RAMZ de-Cafe will avail is the market of blue area as no other caf specialized in providing such environment with the variety of world famous coffees, beverages and teas.

RAMZ de-Cafe has the competitive advantage of unique traditional Pakistani truck art culture with western hot and cold beverages. It will not just be a stereotype coffee shop but consists of wooden furniture and a chocolaty out look. RAMZ de-Cafe outlook will be based upon the worlds renowned Pakistani truck art culture. This unique traditional culture will give us a definite competitive edge over our competitors.RAMZ de-Cafe will be equipped with high quality products with efficient services. Yes our theme is traditional road side truck art culture but our taste will depict the west.As blue area is a corporate sector which provide a pool for RAMZ de-Cafe as a number of customers are more in this area. So the ratio of customers is high in this area and will generate healthy number of customers.RAMZ de-Cafe is a sole proprietorship business owned by a single person and team consist of an account officer, a manager who will supervise to the chef, 4 waiters, a security guard and chef will supervise the shoo chef.COMPANY WITH ITS PRODUCT AND SERVICESThe Industry:The coffee market and its various elements are what drive the coffee industry. Within the Market portion of the coffeeresearch.org site you will find information and statistics on coffee consumption, exportation, importation, and explanations of the world coffee market. This section will focus on general coffee statistics, coffee market prices, and coffee market trends. To supplement this coffee market research, there are many coffee marketing subscription websites exist to give instant quotes and to facilitate trading. Additionally, for the specialty and gourmet coffee market, the Specialty Coffee Association of America and the National Coffee Association publish extensive annual data on coffee consumption statistics in the United States. For more specific international coffee market information, the International Coffee Organization is the best resource.Hot drinks saw good growth in 2009, despite price increases coupled with a simultaneous decrease in spending power. This increase in prices was mainly due to a rise in raw material and commodity costs and, in particular, in milk and sugar prices. Consumption in rural areas has increased a lot in recent years within hot drinks, particularly consumption of tea. In addition to this, the packaged hot drinks market is still not mature or saturated; therefore it is constantly growing, mainly as it attracts consumers away from unpackaged hot drinks.The major hot drinks players have built extensive distribution networks and these, coupled with the use of effective supply chain management, have allowed them to create a presence in most suburbs. The introduction of big retail names, including Makro and Metro, have helped to shape the key players distribution strategies and encouraged them to cater to bulk demand. Rapidly expanding fast food chains and restaurants, in addition to the increase in the number of coffee machines across the country, have driven demand in on-trade channels. Tea is a household commodity in Pakistan and it uses both direct and indirect distribution channels.

Consumer price sensitivity in Pakistan is expected to hamper coffees performance during the forecast period. However, given that tea consumption in Pakistan is among the highest in the world, any slowdown in coffee volume sales is unlikely to have long-term consequences for hot drinks, with consumption expected to pick up as consumer spending power increases. In addition, coffee has good growth potential, with consumers developing a taste for the product, with the influx of international brands, new varieties, product innovation and an increase in the number of coffee shops all helping to promote a coffee culture in Pakistan.Company and the concept:RAMZ de-Cafe is a first ever hot and cold beverages shop with a unique touch of traditional Pakistani truck art culture. It is solely profit oriented organization with a theme of providing excellent taste, magnificent services in accordance with traditional truck art culture. The company based upon a sole proprietor ship situated at the heart of Islamabads commercial area that is blue area. We are here with worlds most popular coffee flavors and continental cold beverages in affordable price.

Concept behind this is that we have a unique place where we provide a variety of coffees which are not available anywhere in Pakistan. Main emphasis is on the quality of variety of items. A great range of international coffees and teas are available thereWhy truck art theme?

Pakistani truck art is worlds most unique and colorful. Painting a truck, rickshaw or bus can have many purposes. Some do it to attract customers, while others do it to keep up with the khans. Truck art has become an important branch of Pakistani folk arts. The Lorries are decorated, painted and repaired in various workshops around the country. It is surprising to see fleet owners (the trucks arent owner-operated) spend $3,000-$5,000 per truck for structural modifications that convert these gas-guzzling, smoke-spewing, road-dominating monstrosities into beautiful moving canvases covered in poetry, folk tales, and religious, sentimental and emotional worldviews of the individuals employed in the truck industry, making it one of the biggest forms of representational art in the country.

It is getting popular in western world in every passing day and many foreigners get their vehicles painted by truck art craftsmen and have taken these vehicles to UK, Germany, USA and many other western countries.DETAILED VIEW OF PRODUCT OFFERINGSCoffees:1. RAMZ Irish Cream

Irish Cream Coffee takes three of the best things (Coffee, Cream, just a touch of coffee) and puts them all together. How can we get better than that?2. RAMZ French Vanilla

French Vanilla is basically a generic term referring to just about anything that has a strong vanilla aroma and contains grains of vanilla. The term originated from the way the French made their custard base for ice cream by including vanilla pods, cream and egg yolks. French vanilla may also refer to anything with a vanilla custard flavor.3. RAMZ Caramel

The wonderful taste of caramel in your pot of coffee.4. RAMZ Hazelnut

Hazelnut coffee is the most popular flavored coffee in the world.! There isn't a flavor combination left that we haven't thought of, so whether you like the buttery nut flavor of Hazelnut all on it's own, or you like it with a dash of cinnamon spice or with chocolate Irish cream, we've got you covered!5. RAMZ Chocolate

Chocolate Coffee is your source for chocolates and flavored coffee drinks. It can help you find a variety of Chocolate Coffees, ranging from dark chocolate to white chocolate. Coffee and chocolate both have many health benefits. Coffee reduces the risk of Alzheimer's disease, Parkinson's disease, heart disease, type 2 diabetes, gout, and cirrhosis of the liver. Chocolate reduces the risk of high blood pressure, cancer and heart attack. Chocolate is also a brain stimulator and cough preventer.6. RAMZ Coconut Cream

Immerse yourself in the sweetness and smoothness of coconut cream flavored coffee. Relax as this flavored coffee drifts your spirits to a far off island paradise. Hugely popular in markets the world over, the flavor of coconut is loved by many. Usually found in breads, pastries, pies, and cakes Coconut Cream can now be a part of your everyday life without the added calories and guilt! The flavor of Coconut Cream coffee is usually described as sweet, rich, and creamy.7. RAMZ Dark Roast

Darker roasts have a fuller flavor. Beans that have been over-roasted will take on a burned, smoky or charcoal flavor. Also, there is less caffeine in the darker roasted coffees than in the lighter ones. The roast alone doesn't determine the resulting coffee taste or quality.8. RAMZ Chocolate Truffle

This is a quick-fix coffee drink for any chocolate lover and, in my humble opinion, a bit better than your average mocha. The drink has a rich sounding name Chocolate Truffle Coffee. All it involves is melting some chocolate truffles into hot coffee. Truffles have such a strong chocolate flavor that they are a great way to add some sweetness and a burst of chocolate to a drink without any fuss.9. RAMZ Black Coffee

Black coffee is coffee served without cream or milk. We provided great taste of coffee. 10. RAMZ Cappuccino

A cappuccino coffee is a coffee drink made with espresso and steamed milk. The cappuccino is actually one of the most difficult coffee drinks to make right. Cappuccinos are made by pouring a shot of espresso into a ceramic cup, and swirling steamed milk over the espresso.Teas:1. RAMZ Black Teas

Black teas get their characteristic flavor and color from a natural oxidation process, which follows initial drying and rolling of the leaves after they have been picked. RAMZ de-Cafe offers a wide range of single estate RAMZ black teas including world famous RAMZ Assams, RAMZ Darjeelings and RAMZ Ceylons and a range of RAMZ bespoke Black Blends.

2. RAMZ Green Teas

Green tea is made from unoxidized leaves which are simply heated after picking to destroy the enzymes that cause oxidation. They are then rolled to release their flavor. RAMZ Green teas are sweet and contain many of the vitamins and antioxidant properties of the fresh green tea leaf, making them highly regarded as a healthy, fragrant and delicious drink.3. RAMZ Oolong Teas

Oolong, meaning Black Dragon, is usually from China and Taiwan (often called Formosa, its Old Portuguese name). It is a semi-fermented tea, a cross between green and black teas, which is widely prized for its digestive benefits. RAMZ de-Cafe offers a range of the finest oolong teas from both China and Taiwan, including Iron Goddess of Mercy (Ti Kuan Yin) and the highest grades of RAMZ Formosa Oolong teas.4. RAMZ White Teas

White tea is the world's rarest tea as it can only be picked for a few weeks in any one year. Authentic white tea is only grown in the Fujian province in China where the exact method of processing is kept secret. What we do know is that white tea is made from a specific tea plant variety, as well as a particular processing method which raises small silvery hairs on the leaves and buds. White tea has seen a recent increase in popularity and has well-documented antioxidant and detoxifying benefits.

5. RAMZ Kashmiri Tea

Powdered almonds make this chai a little bit nutty, and you can really taste the cinnamon and cardamom as well.6. RAMZ Ginger Tea

On a cold, wintry day there is nothing like a steaming, aroma-filled cup of ginger tea to warm you up and awaken your senses. A few pieces of fresh Ginger combined with Lemon and honey can do wonders to your tongue and to the body.7. RAMZ Masala Tea

An Indian tea called masala tea of great taste is also available. People who like spices really like this tea.

Drinks:1. The White Russian

Don't let the name scare you... this drink is surprisingly tasty and will leave you craving more.2. Blue Hawaiian

There is something to be said for a tropical beverage.. It's refreshing, it's pleasing to the eye, it's absolutely delicious, pineapple juice, cream of coconut, a cherry and slice of pineapple If you, for some reason, find this recipe too stout try adding some Grenadine to sweeten the deal.3. Tequila Sunrise

Now picture yourself on vacation on a Mexican beach. You should have a drink in hand. The Tequila Sunrise is the drink for you. It is a perfect blend of tangy orange and sweet cherry flavor for any occasion... you don't have to be on a Mexican beach to drink one, however nice that sounds.4. Long Island Ice Tea

It's time to try a little stronger beverage.. It's time for a highball known as the Long Island Ice Tea. This drink, despite its high alcohol content, is surprisingly soothing and smooth.

5. Bloody Mary

The Bloody Mary is the perfect drink for you. The perfect spicy tomato flavor will cure any hangover and get you ready for round two.Shakes:1. Mango shake

Mango shake is one of the most popular shake around the world made of mango pulp blending it with milk and sugar.2. Banana shake

Banana shake is also available. It is the blending of banana with milk and sugar make it very tasty.3. Strawberry shake

A great taste of strawberry is also available. Strawberry shakes with different tastes and items are popular among childrens especially.4. Pina colada

Sheesha:

Flavors:1. Strawberry2. Apple3. Double Apple4. Orange5. Winter Fresh

6. Blue mist7. Chocolate mint

8. Star Buzz.MARKET RESEARCH AND ANALYSIS: Market size And Trends:

Market size:

The overall market size of RAMZ is around 90000 of sector G6,G7, F8 and F6 and about 50000 working people in BLUE AREA which makes it a sizeable market for RAMZ.

The worldwide consumption of tea and coffee is increasing due to fast population growth rate and the coffee shop industry is growing at fast rate due to the trendy behavior of people.

1) Coffee shops make up the FASTEST GROWING part of the restaurant business, checking in with a 7% annual growth rate!2) World coffee production is estimated at 110 - 120 million bags per year3) 14 billion espresso coffees are consumed each year in Italy, reaching over 200,000 coffee bars, and still growing!Market Trend:

1. Price Increases Fail to Affect SalesHot drinks saw good growth in 2009, despite price increases coupled with a simultaneous decrease in spending power. This increase in prices was mainly due to a rise in raw material and commodity costs and, in particular, in milk and sugar prices. Consumption in rural areas has increased a lot in recent years within hot drinks, particularly consumption of tea. In addition to this, the packaged hot drinks market is still not mature or saturated; therefore it is constantly growing, mainly as it attracts consumers away from unpackaged hot drinks.2. Health Trend Comes to the Fore

2009 saw a wave of new international products and cafs appearing in Pakistan, with consumers increasingly concerned about health. Consumer awareness of green tea and fruit/herbal tea has also been created, driven by major brands marketing strategies, but it will take more time to educate people about their healthy effects and benefits, especially as black tea consumed with milk is almost regarded as a national drink in Pakistan.3. Hot Drinks Features Domestic and Global Players

Nestl SA dominated value and volume sales of coffee in 2009, while Tapal Tea (Pvt) Ltd led tea, with Unilever Pakistan Ltd in second place. While international brands accounted for a large portion of sales, domestic player Tapal Tea (Pvt) Ltd is a domestic phenomenon, a strategically adept operator that supplies high-quality products. Smuggled tea, however, continues to drag on sales and accounts for a major proportion of hot drinks consumption.

4. Distribution Reaches Suburbs

The major hot drinks players have built extensive distribution networks and these, coupled with the use of effective supply chain management, have allowed them to create a presence in most suburbs. The introduction of big retail names, including Makro and Metro, have helped to shape the key players distribution strategies and encouraged them to cater to bulk demand. Rapidly expanding fast food chains and restaurants, in addition to the increase in the number of coffee machines across the country, has driven demand in on-trade channels. Tea is a household commodity in Pakistan and it uses both direct and indirect distribution channels. 5. Hot Drinks Forecast Largely Positive Coffee Consumption

Consumer price sensitivity in Pakistan is expected to hamper coffees performance during the forecast period. However, given that tea consumption in Pakistan is among the highest in the world, any slowdown in coffee volume sales is unlikely to have long-term consequences for hot drinks, with consumption expected to pick up as consumer spending power increases. In addition, coffee has good growth potential, with consumers developing a taste for the product, with the influx of international brands, new varieties, product innovation and an increase in the number of coffee shops all helping to promote a coffee culture in Pakistan.Target Market:RAMZ de-Cafe has used Geographic and Demographic basis for segmentation, discussed as under. 1. Geographic Segmentation

Geographically, cafe RAMZ will be confined with selected sectors of Islamabad city that includes Sector G 6, G 7, F 8 and F 6 and Blue Area. Reasons for targeting these sectors include their large distance from other coffee shops and nearness to the corporate people. 2. Demographic Segmentation

Demographically cafe RAMZ will be targeting corporate and business people, families and to some extent the students and most of all the foreigners as RAMZ will be of great attraction for the tourist depicting Pakistan truck art which is popular all over the world.

Competition and competitive edge:

1. Competition:

RAMZ is in direct competition with Gloria jeans, moccoa coffee and espresso lounge and indirect competitors are Nescafe and local and international brands of tea and coffee.

2. Competitive edge:

RAMZ de-Cafe will be providing high quality luxurious items with cultural environment. Geographically cafe RAMZ will be the only caf providing such services in Blue Area.Estimated Market Share and Sales:

1. Estimated Market Share:

Coffee ShopsMarket share

Gloria jeans20%

Moccoa coffee5%

Khokhas and other local brands40%

Cave, red onion and other restaurants25%

As RAMZ is a new entrant to the coffee market so it is estimated that due to its unique interior and service quality RAMZ will be able to capture a market share of 15% over a period of one year through efficient working and time management.

2. Estimated Sales

The estimated sales of RAMZ de-Cafe over a period of one year are 97,200,000 catering a number of people giving them a number of quality services.BUSINESS MODELCorporate plan:Vision

To be the trend setters in market in accordance with high quality products with the essence of true Pakistani truck art culture.

Mission

RAMZ has the mission to provide famous hot and cold beverages in economical rates with the reflection of Pakistani traditional culture.

Goals

To promote the Pakistani culture especially Pakistani truck art culture

To provide worlds famous coffees and beverages in economical rates To Provide best services and high quality of productsObjective

To produce high quality product and services to satisfy the customer wants and needs

To maximize the market share

Earn maximum profit

To capture the market of corporate sector of blue area especially.Regulatory and legal issues:A rental agreement between the owner of the building and proprietor of RAMZ de-Cafe. There is a proper signed agreement between the two of 15 years initially which is extendable to 30 years.1. Trade mark The trade mark of RAMZ de-Cafe is properly registered.2. Sole proprietorshipRAMZ de-Cafe is a sole proprietorship business owned by the owner named jawad Hassan. He is having a rich experience of family business. He has a degree of Masters in Business Administration with specialization in marketing. His strengths includes business strategy making, developing control systems, good at networking. Geographical location

RAMZ de-Cafe will be situated in marina hotel basement, blue area, Islamabad

Supply chain

1. purchasing material from marketWe purchase all the raw material in bulk quantity from the metro and super market on quarterly basis.2. Processing at RAMZ de-CafeSecond step is the processing or making of orders by our expert chef maintaining the quality and taste. Our chef is expert in developing a great taste and a variety of coffees and beverages.3. Serving to the customers

Third step is the serving in which our waiters serve to the customers.RAMZ de-Cafe business will operate on cash basis.MANUFACTURING AND OPERATIONS PLAN Production process

Our production process is actually the processing steps involved in the preparation of coffees, drinks and teas by our expert chef upon the orders placed by our customers. Fresh juices will be available as per the seasonal changes. All famous coffees are available and prepared hygienically and efficiently.Machinery layout

1. Coffee Maker

We have 2 coffee makers which are automatic because Investing in a coffee maker is an important decision and wants to save you the time of our worthy customers.2. Baking ovenA baking oven includes a housing having a baking chamber formed with a lateral opening, the housing having a top formed with a plurality of ventilation holes, a smoke filter mounted within the housing and located under the ventilation holes, a cover engaged with an end of the housing and provided with a transparent window, a tray inserted into the housing, a dropping mechanism mounted within the housing and provided with a baffle configured to close the opening of the baking chamber and a guiding plate forming a slope for transfer of baked foods

3. Food factory

These juicers are engineered to cope with a large output and a bigger demand than the average household juicer and as such will cope with high output without having its life span being cut short. All parts are manufactured to be extremely hardwearing so that you can rely on your juicer to keep going, no matter what demands you make of it

4. Tea maker

In order to guarantee professional results, the filter, filter holder and boiler distribution unit have been designed for professional use and can only be used with pods. The machine is capable of dispensing a cup of hot water at approximately 85C for cafe Americano and dry steam for exceptional frothing milk techniques.Management Team: Hierarchical Chart

Key Management Personnel

1. Proprietor

The proprietor is the Chief Executive Officer (CEO) and owner of RAMZ de-Cafe. Experience:

The Proprietor must have a rich experience of family business. He/She should have a degree of Masters in Business Administration with specialization in marketing. His/Her strengths includes business strategy making, developing control systems, good at networking, well linked and hands on all general areas of business. He/She would also able to perform the marketing functions. He/She has a strong understanding of customer and market dynamics and requirements. Target oriented, can manage daily marketing planning and supervising the staff. 2. Management Ability & technical expertise:

The Proprietor is responsible to align the company, internally and externally, with his/her strategic vision.

His/her core duty leadership abilities are to facilitate business outside of the company while guiding employees and other officers towards company core objectives.

oversee all marketing, advertising and promotional activities

Conducts periodic Market researches when required, a keen eye on market conditions and changing trends and watchful for competition

Developing and implementing Marketing Communication programs and Sales Campaigns.3. The Hotel Manager:

Hotel managers manage the personnel and the marketing activities of hotels. Duties vary depending on the title and place of employment.

Experience:

He shall have a minimum experience of 4-6 years in hotel management. He has a degree of Masters in hotel management. He shall be fully qualified for development, arranging and conducting all hotel jobs, together with front office communication and all over maintenance.

4. Management Ability & technical expertise:

He is responsible for planning and organizing accommodation, catering and other hotel services. The hotel manager provides overall leadership, guidance, and direction to the hotel management team. They have to ensure that guests enjoy good customer service. They supervise maintenance, supplies, renovations and furnishings of the Hotel. They have plan out work schedules for individuals and teams.5. The Accounts Officer:

The Accounts Officer is responsible for overseeing organization's accounting function. He requires a sufficient experience of maintain accounts and bank matters.

Experience:

B.Com degree is required for an accounts officer with 2 to 3 years experience. Well versed in dealing with Banks and Financial Institutions. Experience of costing and record keeping and can generate customized reports for Management using Peach Tree, QuickBooks or Microsoft Excel.

6. Management Ability & technical expertise:

He will performs all tasks related to the accounts, including reporting, cash handling, bank matters, payrolls, and generating financial reports.

He shall explain financial data and keep tracks of changes in expenses and sale as well can conduct trend analysis Technically strong in softwares like QuickBooks or Peachtree or some customized software. Be self-motivated and self driven and able to thrive within high-pressure7. Purchase Officer

The Purchaser is a key resource of RAMZ de-Cafe, primarily responsible for purchasing of material with a prime focus on quality products.

Experience:

He shall have 5 to 6 years experience of purchasing in market. Moderate level of education is sufficient. The company relies heavily on his experience and negotiation skills. He can speak or understand multi languages preferably Urdu, Punjabi, and Pashto.

8. Management Ability & technical expertise:

The purchaser should be good in negotiating prices. Accurately monitoring and forecasting stock levels.

He shall watch the differences in prices of wholesale and retail market.

Researching and identifying adequate suppliers and maintain their database.

Monitoring the quality of material.9. Management Compensation

We are compensating our employees by giving them a handsome amount of salary. The following is the salary sheet of the employees working at cafe RAMZ:

DESIGNATIONNO. OF EMPLOYEESSALARY (PKR)

Hotel manager0135000

Account officer0115000

Purchaser0110000

Chef0260000

Shoo chef0230000

Waiters0432000

Security guard017000

Employment Policies & Other Agreements and Bonus Plans: Increments: The Staff members will be given a decent increment after every one year, considering inflation. The employees who will show excellent performance will be rewarded with midyear increments.

Bonus Pool: At the end of each fiscal year, the CEO of RAMZ will review its financial performance for the year and set aside a pool of funds to be used for distributing staff bonuses. The amount of the bonus pool will vary from year to year depending upon the profitability of the firm and, at the discretion of the firm, there may be no bonus pool if circumstances do not warrant.

Eligibility: All full-time employed staff members of the firm who have at least one full year of continuous employment with the firm are eligible for consideration for a bonus. A staff member who is not employed by the firm at the time the bonus pool is established will not be eligible for a bonus.

Award Categories: Three performance bonuses, in amounts established by the firm, will be awarded to the three eligible staff members demonstrating, in the firm's view, the best overall performance for the year. The balance of the bonus pool will be distributed equally to all remaining eligible staff members.

Qualifications: For the purposes of determining the three staff members demonstrating the best overall performance for the year, the following factors will be considered, with an emphasis on those qualities which contribute to the firm as a whole:

Attitude

Teamwork

Leadership

Loyalty

Productivity

Self-Motivation

Skills (speed, accuracy, organization)

Professionalism

Interpersonal Skills

Self-Improvement over previous year

Other Facilities: The employees will be given by 50% discount on the food items in the cafe.

PEST Analysis:1. Political

In recent years Pakistan has witnessed very tough political crisis, Lawyers movement and unrest in Judicial system, war against terror added fuel to the fire and Pakistan portrayed it self as a non investor friendly country with an instable political system.However in recent past, our political leaders have shown a great gesture of national reconciliation which has helped them to resolve issues like NFC award, Water distribution among provinces and most of all historic 18th amendment. Investors are now regaining their confidence in Pakistans political and economic system. The evidence of this fact is stability of Stock Exchange market and substantial increase in foreign reserves. EconomicalAfter passing through the bumpy portion of road our economy is again on track and we expecting to grow it on a pace of about 4.5% p.a. Our inflation rates has come down to about 12%, the terror factor has been tackled though not 100% but to a satisfactory level that we can continue our business and social activities. Cafe RAMZ aims at contributing in the economic development of the country by creating more jobs and through entrepreneurial endeavor.SocialNow a days people are becoming hygienic and security conscious, hence they need a good environment with cost effective food. The company will build long term relationship with its customers based on mutual trust providing them luxurious with cultural environment as depicted in Mission statement. Technology

Technology will not have much effect on our business. Adequate operational technology in form of computers, mobiles, web site etc is available. SWOT Analysis:1. Strengths

A unique idea of cultural touch with luxurious items.

Profit potential is lucrative, due to large market size which will keep on increasing.

Professional, dedicated and self directed staff

Interior of "Truck art" which will be very attractive for foreigners.

No such spot in Blue Area for corporate people2. Weakness

Lack of awareness among the people about hot beverages

Lack of promotional budget

Problems of staff retention3. Opportunities

Business can be expanded to other cities like Karachi, Lahore etc.

Industry is observing a substantial increase in demand.

Managerial trainings and skills development of employees4. Threats

Law and order situation in the country is worsening day by day

Rising energy costs

Potential entrants in market

Brand loyal customers

Westernizing behavior of people

competitorsPorters Model:

Rivalry among existing firm

In Islamabad there are so many direct competitor. Threats from existing firms is found to be very high. Bargaining Power of Buyers

Customers have options available for purchasing which are easily available in the market. Therefore bargaining power of buyer is relatively high. Bargaining power of suppliers

Suppliers of Cafe RAMZ have many different options and doors to sell; the bargaining power of suppliers is high Potential Entrants:1. Substitutes

Substitutes are easily available. The direct competitors are Gloria jeans, moccoa coffee and Espresso lounge, Rivalry among substitutes is normal as none of them are offering home delivery service. 2. Pricing Strategy

Cafe RAMZ will be operating on premium pricing. As the people of Islamabad are status conscious and they are ready to pay high for a quality product, Cafe RAMZ will earn the profit out of its pricing strategy.3. Sales Tactics: Here are mainly three tactics which Cafe RAMZ will follow:

Product tactics

Price tactics

Service oriented tactics

Taste oriented tactics4. Services: RAMZ de-Cafe will provide quality service.

RAMZ de-Cafe will provide car parking for its customers.

Comfortable atmosphere.

WI-FI service. Promotions and Advertising

Promotional Activities:The survey had shown that people of the Blue area in particular are interested in such coffee bar as RAMZ de-Cafe for entertainment and relaxing purposes with a good and friendly environment with a touch of their cultural heritage after their hectic routine.

Phase 1: Awareness Campaign

The company telemarketing staff will update its database by calling customer residences, offices and confirming their contacts. The initial list will be obtained from telephone exchange. The staff will give some general idea. The telemarketing campaign will be followed by an introductory letter of the company that will be a bilingual document and sent to target market sectors. Phase 2: Company Launch Campaign

The activities outlined in this Phase is detailed as under

Promotion

Cafe RAMZ has planned to adopt an Integrated Marketing Communication strategy. The company is not possessing sufficient resources to go full scale on mass media. We will opt for economical yet effective tools of Above the Line and below the line advertising media discussed as under

Advertising:

Public relation

Personal selling

Direct marketing

Sales Promotion Advertising:

RAMZ de-Cafe has selected electronic media for its ATL activities as Cable TV and FM Radio.

1- Above The Line Advertising Media

RAMZ de-Cafe will be having one month campaign, with a clear focused messageMediaSpots/dayDurationTotal Budget

Cable TV10I minuteRs. 50,000

Radio

FM 1007 daily (Three days in week)30 secondsRs. 20,000

Total Rs 70,000/-

2- Below the Line Advertising Media

RAMZ de-Caf will use following below the line media vehicles:

Banners

Steamers

Brochures

SMS Advertising

Besides all below the line advertisement strategies may be adopted for its effective promotion like printing of company calendars, production of company wall clocks and other office accessories and then by giving these things as giveaways to the concerned customers.

Interactive online Media

An interactive, professionally designed web site is also planned with suggested domain http://www.ramzcafe.com.pk It will be featuring complete product information, cafe location and contact points and an email response system.

In addition to that company will be displaying its awareness messages on related blogs and social networks and Usenet groups. An efficient email marketing campaign is also planned. Direct marketing

Cafe RAMZ will also use direct marketing tools in order to make customer aware of the company and its products. These includes writing letters to customers after compiling and updating the data base and afterwards distributing fliers to the residents and offices of sectors defined.

Data Base Management

Database management and marketing will be the core of The RAMZ business. We will keep complete data of offices and will keep on updating it. For this, it is suggested to use Microsoft CRM for maintaining data of customers and prospects and keeping customer profile. Public Relations

Media relationships will be given a prime focus in order to compensate lack of advertisement capabilities on mass media which will be carried through news, referrals word of mouth and announcements Sales Promotion

Cafe RAMZ will use number of sales promotion activities in order to attract the customers to buy the products. They include offering key chains, Mugs, Wall clocks and on special events like Ramzan, the Aftar nicely designed Calendars, high tea, reservations etc.

Channels of DistributionThe business model of Cafe RAMZ requires a direct distribution strategy to its customers and no middleman will be involved. We will be working seven days a week and on weekends there will be special services offered .Specially designed interior and management system will ensure quality and hygiene of the product and environment. It will be stacked in such a way that reduces the delivery and customer handling time.

Critical Risk Factors:1. Management Risks

The risks identified in this area are:-

Retaining of managerial staff for long term

Management involved too much in day to day activities and Strategic Decision and long term planning may suffer

Poor coordination between chefs and waiters In house rivalry between the staff.

Strategies

Staff will be compensated on the basis of performance and contribution towards organizational objectives. Duties will be specifically and explicitly identified. 2. Marketing RisksMarketing risks includes:- Customer may not respond as expected

Lack of promotional budget

Emergence of potential competitors

Strategies

Promotion will be confined with BTL media and personal/PR activities, considerably reducing cost of promotion. Rest will be accounted for through maintaining a loyal customer base. 3. Operating RisksThese risks may include

Maintaining quality of products. Serving the beverages in time to the customers.

Strategies

We will be careful in maintaining the quality of the products by using good quality of material. And we will train our waiters about the time management for serving.4. Financial Risks

Financial risks may include

Entrepreneur lacks investment

Recession in economy

Unanticipated expenses

Increasing prices of material used in our products

Strategies

Expenses will be matched as actual from projected ones and find out reasons if deviation occurs. We will have strict control on our costs. Proper record keeping in form of day books and sale books will be carried.FUTURE PLANS:1. Expansion strategy

In future we will expand our product line, such as burgers, steaks, and Italian cuisine. In future plan we will open our caf in various big cities of Pakistan including Lahore, Karachi & Peshawer.2. Contingency plan

If the theme of RAMZ de-Cafe will not be successful then we will move towards the traditional desi food items.-THE END-Proprietor

Hotel manager

Account Officer

Security guard

Waiter 04

Chef 01

Purchase Officer

Shoo Chef 01

Cafe

Customers