STERLING INSTITUTE OF MANAGEMENT STUDIES

FYMMS Division B Sub: MANAGEMENT PROCESS SKILLS

Presented to: Presented by:

Prof. SHEETAL GEDAM

MAYUR ANTRE (63) ADITYA PATIL (67) SHIVKUMAR SHARMA (98)

GREENDAY CAF

Project: ANALYSIS OF

GREENDAY CAF
ABOUT US:
y Greenday caf, a perfect place to spend your leisure time

by having sips of hot coffee, plans to locate at Kharghar. for local coffee addicts.

y Greenday caf is determined to become a daily necessity

y A place to dream of as you try to escape the daily

stresses of life and just a comfortable place to meet your friends or to read a book, all in one. coffee in the area that will be complimented with pastries, as well as free books that its patrons can read to enjoy their visit.

y Greenday caf will offer its customers the best prepared

BUSINESS PLAN:
Generation of ideas:
y People want a better-tasting coffee drink y Coffee drinkers want a more inviting coffeehouse

environment y Coffee drinks are considered an affordable luxury y The coffeehouse industry is largely unaffected by the economy and world events y Greenday caf offers several unique advantages over all other coffeehouses

PLANNING:
It includes:
y The company will operate a 7,500 square feet coffee

house within a walking distance from the Hiranandani complex and Kharghar railway station.
y We have secured this location through a three-year lease

with an option for extending.

y We have also gathered Rs.12,00,000 of the required Rs.

31,65,500 as a start-up fund. The remaining capital will be obtained through Bank of Baroda commercial loans.

ENVIRONMENTAL ANALYSIS:
Internal Environment Strength:
Excellent location y Unique gourmet coffee products y Customer delight
y

Weaknesses:
y

Limited experience

External Environment Opportunities:

Decentralization plans y Pastries and gift items y Nearly each person: A prospective customer
y

Threats:
Expensive initial cost y Taste and service matter y Competitors
y

FLOOR SPACE LAYOUT:

Kitchen + Store 1000 sq. feet Counter 200 sq. feet Staff locker room 250 sq. feet Indoor cafeteria 4500 sq. feet Wash-room 50 sq. feet Outdoor cafeteria 1500 sq. feet -----------------------------------------------------Total 7500 sq. feet

FINANCIAL PLAN:
Assumed Earnings: y Total fixed expenditure 15,77,100 y Total recurring expenditure 10,88,400 (99,700/month) y Total promotional expenditure 5,00,000 ---------------------------------------------------------------------y Total 31,65,500 ---------------------------------------------------------------------y Expected annual revenue 20,00,000 (1,66,666/month i.e. 5,555/day) ------------------------------------------------------------------------y Net profit 20.58%.
*The company will invest residual profits into financial markets or real estate. *Future cash investments will use NPV projections to achieve maximum return with limited risk.

BUDGET ANALYSIS:
Projected Expenses:
Deposit 1,50,000 Rent 20,000 Interior 10,00,000 Juke-box & LCD 18,500 Coffee Machines (2) 70,000 Tables (12) & Chairs (50) 1,00,000 Sofa chairs (4) 28,000 Kitchen wares 1,25,000 Crockery 50,000 Staff uniforms (10) 14,800 Stationery 800 Coffee Raw materials 22,500 Salaries 48,200 Miscellaneous 20,000 --------------------------------------------------------------------------

Total

16,67,800

PRODUCTS:
y The Greenday Caf menu sets us apart from other coffeehouses, giving

us a competitive edge.

y We offer six groups of drinks

coffee, tea, Italian sodas, smoothies, juice and cocoawith several choices within each group. This enables us to provide more variety than our competitors while keeping the preparation of the drinks easy to execute.
y We are taking advantage of the immense popularity of flavored drinks

and Chai tea by offering a product mix that includes items the other coffeehouses don't carry as well as more familiar drinks.

y We are the only coffeehouse to have a wide range of gourmet hot

cocoa.

y Greenday Caf offers several smoothie drinks and Italian sodas. y We carry the highest quality fresh juices.

The Greenday Caf menu

HOT COLD

EXPRESO ITALIANO ICED AMERICANO. CAFFE AMERICANO AFFOGATO CAPPUCINO ICED LATTE CAFFE MOCHA LAVAZZA FRAPPE CAFFE LATTE-MUG. MELTED SWISS CHOCOLATE. SWISSS HOT CHOCOLATE SWISS MINT CHOCOLATE

MANAGEMENT SUMMARY:
y Our personal plan shows

a full-time manager's annual salary, two chefs salaries and six full-time stewards salaries.
y The personnel plan is

included in the following table:

Year 1 Manager Cashier Chef #1 Chef #2 Steward #1 Steward #2 Steward #3 Steward #4 Steward #5 Steward #6 Website Supervisor Total People Total Payroll Rs.15,000 Rs.0 Rs.9,600 Rs.9,600 Rs.2,600 Rs.2,600 Rs.2,600 Rs.2,600 Rs.1,800 Rs.1,800 Rs.0 10 Rs.48,200 Rs.22,000 Rs.0 Rs.9,600 Rs.9,600 Rs.2,600 Rs.2,600 Rs.2,600 Rs.2,600 Rs.1,800 Rs.1,800 Rs.10,000 11 Rs.65,200

Year 2 Rs.30,000 Rs.0 Rs.9,600 Rs.9,600 Rs.2,600 Rs.2,600 Rs.2,600 Rs.2,600 Rs.1,800 Rs.1,800 Rs.10,000 12 Rs.73,200

Year 3

TIME MANAGEMENT:
y Working hours :- 10am to 10 pm. y Chef #1: 10am to 7pm. y Chef #2: 1pm to 10pm. y Steward #1 & 2: 10am to 7pm. y Steward #3: 11am to 8pm. y Steward #4: 12pm to 9pm. y Steward #5 & 6: 1pm to 10pm.

MARKET ANALYSIS SUMMARY:

WHY KHARGHAR..??..
y The highly affluent local population y Year-round tourist activity y Ever-changing upscale student population y Excellent auto and pedestrian traffic by our location y Low media costs y High number of local special events y Prime site location

MARKET SEGMENTATION:
Greenday caf's customer base in Kharghar is comprised of five target groups. y Affluent local residents y Tourists y Local business people y Students y Travelers passing by.

local residents

Students

Local business people Tourists

2% 8%

Travelers passing by 16% 42%

32%

STRATEGY SUMMARY:
y A significantly higher quality, better tasting coffee product. y Our current location can arguably be considered the best in the

marketin the heart of the downtown shopping, dining, entertainment and cultural district in Kharghar.
y And also adjacent to the national park and international golf course. y The coffeehouse downtown to provide regular weekend evening

entertainment.
y A wider variety of popular drinks than our competitors, including

flavored coffee drinks, tea, chai, cocoa, juice and Italian sodas. We have several drink options for people who don't drink coffee: tea, cocoa, juice and smoothies.

MARKETING AND PROMOTIONAL STRATEGIES:

y Word-of-mouth y Offering a high quality product and superb service in a superior

environment. y Public relations/publicity y Local print and broadcast media (e.g. NMtv and NM news papers) y Community involvement: Some of these community involvement goals include:  Supply complementary product to local charities for fund-raising activities  Sponsor local sports teams  Create sponsors.  Purchase fair trade coffee whenever possible  Support Fair Trade, organic, sustainable farming

y y

y Sampling:  We will engage in several sampling activities to introduce potential customers (and current customers) to Greenday caf's range of drink options.  Samples will be distributed at the coffeehouse  Samples will be given to passers-by on the street  Discount coupons will be distributed on the street, via direct mail and at special events  Complementary coffee will be served at charitable and civic events  Free coffee service will be provided to the Chamber of Commerce, a radio station, the newspaper and at select government offices