Ranchi after becoming the capital has crowned the state of Jharkhand. It is fast
becoming an important industrial and business area of Jharkhand. Urbanisation and
modernisation is growing at a mushroom pace in this region. In spite of all these it
still lacks an exclusive Pizza Hut where Ranchities could go and relish their appetite
with mouth watering Pizzas and other such snacks. Hence it becomes an exciting and
glamorous venture to open up a Pizza Hut in the Ranchi market.
Our USP will be to provide Ranchities a wide range of Pizzas in different price range.
They will have different kinds of toppings, gratings and sausages over them, each
with a unique style and method of preparation. In addition to Pizzas we would also
give our customers snacks like burgers, patties and hotdogs in order to give them
greater satisfaction.
There are many snack bars and restaurant in Ranchi that serve Pizzas. But Pizza is not
the main attraction of their shop. And the price is also quite high. So it is not
affordable by people belonging to middle class. The demand for Pizzas is increasing
day by day. People are not satisfied with the quality and price of Pizzas provided in
Ranchi market. So we’ll provide them with Pizzas of different varieties at affordable
price so that it satisfies people belonging to both middle class as well as upper class.
PRODUCT & SERVICES
Our main product will be Pizzas of different varieties with different toppings. In
addition to Pizzas we’ll also serve our customers light refreshments like burgers,
patties, hotdogs and beverages.
Our product mix comprises of snacks, delicacies and light refreshments catering to an
Italian and continental taste with special consideration given to the taste and
preference of North Indians.
Our product mix consists of 5 product lines namely Pizzas burgers patties, hotdogs
and beverages.
For us the customer is the king. So we’ll provide our customers an excellent quality
service.
We’ll provide them
⇒ A good comfortable seating arrangements with proper lighting and
ventilation in the eating-place.
⇒ Experienced and well trained cooks will cater to our customers
⇒ Playing some good music in three-dimensional stereo sonic sound system
will create a soothing environment.
⇒ Home delivery within Ranchi at minimal charges.
⇒ Food items will be packed in hygienic packets which will maintain the
quality and taste of the product.
MARKET CHARACTERISTICS
Demographic details :
FINANCIAL SUMMARY
To start up the business we estimate an initial investment of Rs.13 lakh. However the
total cost of the project may go upto Rs.20 lakh Being entrepreneurs the four of us
together will invest atleast 40% of the total investment The ideal debt and equity ratio
will be 3 : 2 Our working capital needs will be fulfilled through SFC ( State Financing
Cooperation) and loans under self – employment schemes from State Bank of India.
PRODUCT
Product Mix
• Margar
ita Thumbs-up
• Mushr Pepsi
oom
Coca-cola
• Chees
e Miranda
• Tomat
o
• Chicke
n
• Masala
• The
Yummies
Special
EXECUTIVE SUMMARY
This opening section of our project work presents the synopsis of our proposed
enterprise, i.e. the opening up of a Pizza hut in Ranchi market. The aim here is to
catch the attention of our potential customers.
Product : Pizzas will be our main product. In addition to Pizzas, we also identify
those snacks as our product that we hope to market and sell successfully at a
reasonable profit in the market. All our food items in the product mix will be light
refreshments and snacks only. These will be available in different varieties and at
different price range. Sumptuous Pizzas will be our major product with different kinds
of toppings and gratings over them, each having a distinct style of preparation.
SERVICE
For us, THE CUSTOMER IS THE KING. So we’ll provide our customers quality
service by delighting them in following ways :
2. Market share for Pizzas and other snacks in the Ranchi food market.
3. Visiting pattern of the customers to restaurants and snack bars offering Pizzas.
4. Different varieties of Pizzas and other snacks that the consumers will prefer.
8. Level of service provided by the leading restaurants and snack bars of Ranchi.
FACILITIES
Our Yummies Pizza hut will be located in Main Road. Since it is the heart of the city
people will have no transportation problem in reaching the place. Adequate parking
facilities will also be provided. Sophisticated and good quality equipment will be
used. Discounts will be given on large purchases.
Home delivery will be made at minimal charges. These charges will depend upon the
value of total purchases as well as the distance that has to be covered. Orders will also
be taken over the telephone. 5% discount will be given to the students of B.I.T. Staffs
will be given free food. The expenses incurred on petrol while making home delivery
will be given to the delivery boy. The unique feature of our Pizza hut is that we will
make our own base. We’ll make use of Mozzarella in the preparation of Pizzas.
Mozzarella is an expensive substance that is known to increase the taste of Pizza.
INVENTORY
Purchase system : We’ll procure raw materials on order basis. We’ll have
centralised inventory control. The authority to order, receive and store raw material
will be left in the hands of one individual i.e. the purchase officer. It will lead to better
supervision and economy in the floor space and easy record maintenance. We’ll hire
trucks from NECC and auto rickshaws for local purchases (Upper Bazaar ).
Our manager having a good knowledge of the Food and Adulteration Department will
himself check the standards and hygiene of the food items.
HUMAN RESOURCE REQUIREMNT
SKILL REQUIREMENT
Head cooks and Sous cooks : The head cooks must have attended cooking classes.
They have to be continental cuisine specialists with a minimum of 4 years of working
experience . Sous cooks must have a relevant experience of 2 years .
Delivery boy : The minimum requirement for them is that they should have a two
wheeler and they should be physically fit.
Since we are adopting a policy of self service. There won’t be any waiters and
attendants. There will be one guard but we won’t pay him directly. We will sign a
contract with Panther Security agency, Patna for a period of one year.
OPERATIONS
OTHER ISSUES :
Insurance : Insurance will cover land and building (included in rent), cooking
equipments, furniture, electronic equipments.
PIZZA SMALL MEDIUM LARGE
(In Rupees) (In Rupees) (In Rupees)
VEGETABLE PIZZA - 30 -
CHEESE PIZZA - 35 -
CHICKEN PIZZA - 50 -
PANEER PIZZA - 40 -
VEG BURGER - 15 -
CHICKEN BURGER - 30 -
PANEER BURGER - 25 -
VEG PATTIES - 10 -
CHICKEN PATTIES - 15 -
PANEER PATTIES - 12 -
SAMOSA - 3 -
VEG CUTLET - 3 -
EGG ROLL - 15 -
PANEER ROLL - 15 -
VEG CHOWMEIN 8 - 15
EGG CHOWMEIN 10 - 20
CHICKEN CHOWMEIN 15 - 30
COLD COFFEE 8 - 15
HOT COFFEE 6 - 10
TEA - 5 -
MASALA TEA - 7 -
MAUSAMI JUICE - 10 15
PINEAPPLE JUICE - 10 15
POMEGRANATE JUICE - 20 30
MIX JUICE - 10 15
Here we identify our potential customers, evaluate the market, analyze the
competitors and define our pricing approach.
CUSTOMERS
We identify our potential customers as children and youngster mainly. Our survey
reveals that most of them will be in the middle income group.
COMPETITORS
As there is no Pizza Hut in Ranchi, all the competition will be posed by the
restaurants and snacks bar offering Pizzas.
Some of the major competitors will be Kaveri , Masala Planet and Temptations.
Product line specialist: Main product line is for pizza .Other product lines are
reserved for burgers,patties,hot dogs, coffee and soft drinks.
Geographic specialist : We would sell and market in Ranchi only.
Following are the major areas where we can tap opportunities and stand against the
competitors:
1) No restaurant or snacks bar in Ranchi has a quality control manager. We
would employ one. By this, we will maintain our standards of quality and
hygiene.
2) Attractive quantity discounts will enable us to get the market share from the
competitors .
3) The packaging of food items will be done in environmentally bio -degradable
packets. Hence, an eco-friendly business with a societal marketing concept
will be adopted by us.
4) We would have a cabin facility, an open air facility and a closed room seating
arrangement with a.c all under one roof.
5) Customers would get proper parking facility.
MARKETING PLAN
PRODUCT : Pizzas are our main product. In addition to pizzas, we will also identify
those snacks as our product that we hope to market and sell successfully at a
reasonable profit in the market. These snacks include items like Hot Dogs, patties,
burgers and beverages like cold drinks and coffee.
PRICING: Here we have tried to define the price of our items, i.e.
the snacks and beverages that we will be selling. For that, we took into consideration
the fixed costs, variable costs and total cost. The cost of our production and
transportation have also been taken into consideration. After that, we adopted the
following pricing methods to give a final price to our items.
PRICING METHOD:
1) Going rate pricing method: Here we have based our prices more or less on the
competitor’s prices.
2) Discriminatory Pricing method of Product-form pricing : this is the second
pricing method whereby different versions of the product are priced differently
but not proportionately to their respective costs . Here, different varieties of
pizzas and items will be priced differently .
PRICE DISCOUNT:
Quantity discount – We will give a price reduction to those buyers who buy large
volumes. It will be offered on a non - cumulative basis on each order placed. A 5%
discount will be given on each purchase of Rs 1000 and above. Also students of B.I.T
would a 5% discount on every purchase.
DISTRIBUTION CHANNNEL:
For acquiring raw materials, we will get supplies of mozzerella cheese from Delhi.
Other suppliers and wholesalers of raw materials will be local from areas like
Upper Bazaar. Our suppliers of chandeliers, aquariums and furniture will be from
Kolkata while that of crockery will be from Delhi. We will hire NECC, a private
truck agency for the transportation purpose. After acquiring raw materials from
suppliers, we will use zero level distribution channel as we would be directly
selling to customers.
SCHEDULING:
Following is the sequence of activities to be carried out by us.
1) Estimate the demand for pizza.
2) Acquire the land
3) Get the required license
4) Get reliable suppliers
5) Estimate the costs and hence prices of the product.
6) Buy the furniture, ovens, interior décor items and cooking range.
7) Start the advertising and promotion activities.
8) Determine the opening inventory.
9) Arrange for the human and financial resources to start the operations.
TECHNICAL COST BENEFIT ANALYSIS
We will use latest cooking range that will have latest technology so that it does not
become obsolete in near future.
We will purchase them from local market so its maintenance won’t be a big problem.
Since we don’t import them so it will be cost effective.
We’ll use Eco - friendly biodegradable packaging for home delivery. This way we
won’t pollute the environment. Ranchi is not having an exclusive Pizza hut. So we’ll
provide the people of Ranchi with an exclusive Pizza hut.
We are also providing employment. We are appointing staffs on the basis of their
experience so we are providing gainful employment. We won’t encourage child
labour.
MANAGERIAL FEASIBILITY
Four entrepreneurs will look after the smooth running of this venture. First member
will look after the quality control aspect. Second , third and fourth member will take
care of finance, maintenance and purchase.
LEGAL FEASIBILITY
We have taken necessary license required to run the business such as shop and
establishment license and labour license
We’ll strictly follow the government policies and we’ll also pay all the necessary
taxes to the government regularly and timely. According to our venture we will pay
33.5% of our income as income tax. Policies regarding maintenance of hygiene,
nutrient quality and prevention of adulteration will be pursued. The measures and
policies of governmental agencies like food and adulteration department will be
strictly followed by us. The quality control manager will see to it that standards
prescribed by food and adulteration department is maintained.
ECONOMIC FEASIBILITY
Since we are not operating on a very large scale so our contribution to the economy as
a whole will be negligible. The profit earned from the business may contribute to the
local economy and in long run may also contribute to national economy. We will
serve in Ranchi only. Ranchities will be benefited as they are getting an exclusive
Pizza hut with various facilities and services under one roof at reasonable price.
We have tried to make better use of available raw material. We will buy good quality
of raw material. The raw materials used in our business are costly and perishable so
we’ll take care that there is minimal wastage.
We have also tried to reduce the use of scarce and valuable resource by using plastic
furniture instead of wooden ones. We’ll also take care that cooking gas are not wasted
unnecessarily.
COMMERCIAL FEASIBILITY
We achieve commercial feasibility or marketing feasibility for our venture by
having a competitive edge in terms of quality, pricing , advertising and
consumer acceptability.
C) DISTRIBITION CHANNELS:
We would be directly selling our product to the customers. This use of
zero-level distribution channel would eliminate nonessential services that
add to the final price of the product. Hence, customers would get good
quality at less. In the long term, this will again have an advantage over the
competitors.
FINANCIAL FEASIBILITY
From the study of financial feasibility , we found that our project is meeting
the following aspects.
LIMITATIONS of STUDY
.
Fixed Assets:
Particulars Amt.(Rs) Amt(Rs)
Chair 5,000
Generator 30,000
Computers 25,000
TOTAL 4,88,500
Total Depreciation
Depreciation on:
Furniture @ 10% 4,000
No. of bands - 11
No. of holidays - 54
No. of months - 12
Estimated Sales
Pizza 1100
Burger 1100
Patties 1350
Juice 1150
Roll 1600
PROFIT & LOSS ACCOUNT
“ Salaries 3,60,000
“ Insurance 30,000
“ Depreciation 10,760
“ Advertisement 60,000
“ Miscellaneous 10,000
Sales (21.93)
1.5 years
Sales
= 4.88*21.93
21.93-9.60
= 8.68
TOTAL FINANCIAL REPORT
Equity 8,00,000
Loan 12,00,000
Sales 21,93,600
By Closing Stock
TENTATIVE PLAN FOR REPAYMENT OF LAON IN
INSTALLMENT
Total = 22,00,000
BALANCE SHEET
62,58,925
MARKET RESEARCH & ANALYSIS
Above 35
26 - 35 5% Below 13
20% 30%
13 - 25
45%
25,000 - 40,000
30%
– 25,000.
affordable by them.
1. Arrangement preferred in the shop
80% 75%
70%
60%
50%
40%
30%
20% 15%
10% 5% 5%
0%
Open air A/C Cabin All the
Facility above
Demand for cabin facility, closed room with A/C and open-
50%
50%
45%
40%
35%
30%
30%
25%
25%
20%
15%
10% 7%
5%
0%
Taste Status To Try new For Health
Sym bol things Nutrition
From the data we infer that people eat pizza because of its
try new things and only a few eat for health and nutrition.
3. AWARENESS OF THE VARIETIES OF PIZZAS
100% 100%
95% 95%
90%
80%
70%
60%
50% 48%
40% 40%
30% 30%
20% 20%
10% 5%
0%
Stuffed
Masala
Any other
Chicken
Capsicum
Capsicum
Vegetable
Mushroom
Cheese
Onion
Pizza
60% 60%
50%
40%
30%
21% 19%
20%
10% 10%
0%
Rs. 20 - 40 Rs. 40 - 60 Rs. 60 - 100 Above 100
Excellent Good
Average Unsatisfactory
shop which they visit for pizza and they are moderately
delivery.
Snacks Be verages
Rs. 40
Rs. 60
Above
- 100
- 60
100
Drink other
Most preferred snacks are patties and burgers and
the same.
60% 58%
50%
40% 40%
30% 30%
20%
10%
2%
0%
Kaveri
Masala
Any other
Planet
Temptation
50%
40%
30%
20% 20%
13%
10%
5%
0%
Once a
month
Twice a
month
More than it
Once a week
Customer visit more than twice in a month.
9. PROMOTIONAL MEANS
promotion.
Dissatisfied
Moderately
40%
Satisfied
56%
Most of the customers are either dissatisfied or moderately
100% Yes
90%
80%
70%
60%
50%
40%
30%
20%
10% No
0%
Yes No
• Crispness of pizzas
• Service of waiters.
COMPETITOR:
No Yes
2. DEMAND OF PIZZA
Moderate
30%
Low High
5% 65%
and increasing.
3. WHICH VARIETY OF PIZZA IS SOLD MAXIMUM?
Anyother
10% Cheese
Vegetable Capsicum
20% 35%
Mushroom Chicken
20% 15%
4. FACILITIES
60%
60%
50%
40%
30%
20% 20%
20%
10%
0%
Any other
Delivery
Quantity
Discount
telephone
Home
through
Order
Snacks Beverages
No
20%
Yes
80%
Rs. 40 - 60
60%
8. PROMOTIONAL MEANS
10%
Any other
Television
Display &
Newspaper &
Billboards
Magazines
Most of them prefer displays and hoarding for advertisement
of their restaurants.
9. AGE GROUP
45%
45%
40% 30%
35%
30% 20%
25%
20%
15% 5%
10%
5%
0%
Below 13 13 - 25 25 - 35 35 Above
Temptation
20%
Masala Planet
20%
Kaveri
60%
60%
50%
40%
30%
20%
20%
10%
10%
10%
0%
Below 100
100 - 300
300 - 500
500 - 600
Above 600
Average demand for pizza is 500 – 600 pizzas per day and
SAMPLE SIZE
SAMPLING UNIT
EXTENT