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Business Plan For A New Product Or Service Marketing Essay

In this unit I am given a task to produce a business plan for a new product or service of their choice. Therefore I am going to choose my project to establish a New Branch of Taste of Lahore, restaurant. The Taste of Lahore, restaurant which has already four branches in Pakistan and three branches in U.K one of them is in Harrow, others are in Wembley and Ealing Broadway. The Taste of Lahore, restaurant now wants to start a new Taste of Lahore restaurant would be in the name of Taste of Lahore, restaurant, which will be open to provide a service to the local community in the Hounslow area of Middlesex.

In the business plan for the Restaurant the I will first of all put my focus to prepare a market analysis plan, a quality assurance plan production & financial plan and an evaluation of all the components of my field of Markets nearby with the area of my proposed business plan.

Project’s Business Case:-

In this Current era in the United Kingdom the local community is taking interest in Asian Recipes i.e. Pakistani, Indian recipes and white community in the Small Hounslow vicinity for good Asian food is well established. However, there are a small number of outlets in the Hounslow area that offer Pakistani recipes. So, Every time when you go in Hounslow there is an invasion of Kebab houses whose primary objective is to sell fast food. That a way my proposal is to establish a new business setup over this area to offer an alternative, to offer a true taste of Pakistani recipe and compete with these junk food which have some outlets that are destroying the heritage of true Asian recipes.

The Taste of Lahore, restaurant policy is to specialise in unique Pakistani meals and recipes should be produces with the original Pakistani texture and aroma which makes it special.

The Taste of Lahore, restaurant will be introduce the slightly new ranges of products / dishes that not locally available elsewhere in the Hounslow.

My perspective’s projects financial forecasts which I have prepared for this business plan is to cover the next twelve trading months further findings and capital would be required to me for this project assistance will be required externally and internally to purchase necessary equipment to open the new branch of the Taste of Lahore restaurant.

Task 1.2

Current theoretical debate that’s supports this business case.

STRENGTHS:

The Taste of Lahore, restaurant my new project which will be located on the high street in Hounslow at London Road. The local Population around the area is about seven thousand approximately and is principally close to the World’s busiest Airport “the Heathrow Airport”. According to my analysis there is less competition which would be expected to face to me, we have only three major competitors which are close by. Which are:

Competitors:-

Nandos At London Road

Tabla Restaurant At Hanworth Road

Thai Special restaurant at London Road

The third competitor which is Thai special restaurant that is located on the same road where my proposed restaurant will be located on it seems that the Thai restaurant is coping very well even with all the competition which is a Kebab house and fast food outlets in the same road just few steps away from the Thai restaurant. So, I believes that setting up a new project like the Taste of Lahore, restaurant will not affect the Thai restaurant and vice versa.

The Tabla and Nandos are around 1 Kilometer far way for the proposed restaurant and both are the Indian Restaurant and purely offering mostly Indian recipes. My proposed the Taste of Lahore is going to introduce to the community purely true taste of Lahori Foods.

WEAKNESSES:

In the United Kingdom the most of the local people comes out when there is nice weather. So I can assume that in spring and summer times there used to be nice weather so people come out, therefore, Taste of Lahore restaurant would be busy at that time but in winter the businesses’ sales level decrease due to bad weather but if the restaurant have managed good delivery service I can be beneficial for the project. The others weaknesses for the project is new legislation and ordinance passed by the Government and local government.

OPPORTUNITIES:

One of the best opportunity which the Taste of Lahore restaurant would have is its very unique that is an open kitchen. According to my research the majority of Pakistani Restaurants do not have the facilities and set up to show customers how their food and dishes are being prepared. The enjoyment and pure excitement of observing and watching how the food is being cooked and prepare.

THREATS:

For any new business the competitors are used to be major threat because they have the

capabilities and business detects to overcome the new business arrivals the market and had

establish sound existence in the market and having good knowhow of getting customers.

This is all due to the fact that they have been doing business in the market longer than the

New arrivals and must have few tricks to maintain and giving tough competition to the new

comers.

POLITICAL:

Governments plays important role in business establishment and running if any new laws and legislation is being introduced which effects the public spending and if there is no spending by the public due to taxation high it would also be a political factor for restaurants. The other animals and poultry disease would affect the livestock industry which plays a key part most of the Lahori Dishes.

Economical:

In recession time and when the industry is suffering and having no employment the taste of Lahore, restaurant will be in problems as a result the people would not have enough money and resources and finance to spend on Restaurants. On the other hand the if number of the employment goes up and there are more and more jobs and wages were hopeful then there will be more helpful for the people to go away and spend on the restaurants.

In the time of recession like now a days food industry is also suffering because when there is no good economical environment the other linked industries will suffer in same way for example the foundries industry which normally make equipments and tools used in the food industry would be in suffering and if it make components and tools and machinery they will make money and the economy would boost in this way.

SOCIAL FACTOR:

When we have a look at The Taste of Lahore, restaurant the social factor which would be considered as leisure facilities it is a better place for the local people to spend their income on. Typical Lahori lifestyles and diverse tastes and dishes of world renowned to the consumers also play a major role.

TECHNOLOGICAL:

For Restaurants, The Taste of Lahore, a new things that is a new taste for local community it should attract a lots of customers such as new product, I am therefore must have new products such as new flavorings and tastes and also have the latest equipment which would be used and would need to be durable. The better cooking equipment should be used for this purpose.

Task 1.3

Market competitively and activities:

Competitor / Rivalry Analysis:-

Competitor’s analysis:-

In this phase of the project to find out what people think about Pakistani restaurants I have done a primary research on the other branch of Taste of Lahore Restaurants which is in Wembley, Eailing and Harrow.

The reason why I have chosen this is because I am going to establish a true Lahori Taste I mean Taste of Lahore, restaurant in Hounslow and wants to find out the overall statistics and demand of Taste of Lahore, restaurant such as statistics on customers, opinions on food price, quality etc, so this information will enable the researcher to plan the opening of the new branch.

My findings is that most ‘Taste of Lahore, restaurant’ customers are aged between 16-45 years old. Customers have said that prices are reasonable, meaning, and not too expensive and the quality and service is very good at ‘Taste of Lahore restaurant ’. Most people spend about £10-20 and come two to three days in a week. People have said that the location of ‘Taste of Lahore restaurant’ is very good, and also they have a variety of food flavors to choose from as you can see in their menu.

Customers have said that if Taste of Lahore restaurant opens a new Taste of Lahore restaurant in Hounslow then they should provide good customer service, good quality and price range of products. By analyzing this Taste of Lahore, restaurant the researcher can run the Taste of Lahore restaurant in hounslow better than this by looking at and meeting the customer’s needs and wants.

Restaurants in Surroundings:-

My findings are altogether the Restaurants’ (‘Taste of Lahore, restaurant’) takings come up to £3500 a week. ‘Taste of Lahore, restaurant in other places is opens 7 days a week, and is open from 12pm until midnight. As mentioned above the Thai Restaurant has its own loyal customers and so the Chinese Restaurant and it provides its customer only Thai dishes which don’t attracts Asian community that’s way its won’t affect the new Taste of Lahore restaurant and vice versa.

The Tabla Restaurant is at Hanworth at the distance of 1.5 KM from my proposed restaurant i.e Taste of Lahore’s it is a tough competitor for me but its normally focuses on Vegetarian Dishes while I am introducing typical Lahori dishes.

The Nando’s is another competitor of Taste of Lahore which is quite famous in the area it will definitely give tough task to taste of Lahore but taste of Lahore can compete it in Prices because the Nando’s Rates are very high for Example its providing Chicken Karachi Small Portion in £ 6.5 while the taste of Lahore will provide same dish with better taste Large portion in £ 7.00.

Market analysis:-

In the local market analysis the fast foods and restaurant market in the United Kingdom for foods grew rapidly in the late 90s, with sales rising by 29% to £848m between 2001 and 2005. The largest sectors of the market are Pakistani’s Indian and Chinese, with TexMex, Thai, Caribbean, Indonesian/Malaysian and other cuisines taking up smaller market shares. In UK ready meals are a simple entry point into the various ethnic food dishes for many consumers. The chilled ready meal market in particular saw booming sales in the late 90s, with frozen options seeing greater investment on the part of suppliers more recently. They are also a convenient way to offer variety in the diet. Furthermore, accompaniments have seen a rise in sales, as consumers have demanded more authentic eating experiences.

That is the reason the suppliers to the food market vary greatly in size. A number of the UK’s major food processors have a presence in various sectors of the market, but there is also room for many Small brands, including those, which are sourced directly and imported for distribution.

The food market remains in a growth phase and sales will continue to rise year by year in the medium term. There are still many dishes and recipes, as well as cuisines, to be brought to the market, for the time being consumers are receptive to new options.

Pakistani and Chinese takeaways form the largest sub sectors in the ‘other fast food and takeaway outlets’ sector. These outlets suffer from the same problems as the fish and chips sector.

Task 2.1

Introduction:-

In the second task I am going to research and produce a report highlighting some important issues regarding.

Objective:-

The objective of this task is to identify all resources i.e. materials, equipment, labor, time, Finance and other resources required me for the development of my proposed project.

Identification of resources for the proposed Project and product development:-

The resources are essential for a successful project as it can be defined as ‘meeting customer’s needs’ or ‘what it takes to satisfy the customer’ or ‘fitness for purpose’. Consumers’ perception of the quality of a product is the most important factor in determining its success.

Quality is more important than price in determining demand for most goods and services. Customers will be prepared to pay for the best value. Value is added by creating those quality standards required by customers. Whereas as my project concern my focus is to provide Nice, Clean and Tidy Environment for the Taste of Lahore restaurant and quality will be based on Quality control and Quality assurance. Inspectors carry out quality control. Inspection and testing are the most common methods of carrying out quality control.

“Food is tested before made e.g. raw products mixed with spices”

Quality Assurance is concerned with trying to stop faults from happening in the first place; it is also to make sure products are produced to predetermined standards.

In a restaurant all the food should be produced and will be of the highest standard, because the researcher will purchase the best supplies and raw products for the dishes.

Identification of the Resources:-

For the taste of Lahore my proposed project the resources that are required for me are,

Physical components i.e. Counters, Tandoor, Oven, Utensils etc.

Trained Staff, i.e Managers, Chef, waiters, helping Staff and door supervisor.

Capital.

Raw Material i.e. Spices, Rice and etc

Physical components:-

For taste of Lahore I need material such as Counters, Tandoor, Oven, Utensils and tables.

Trained Staff:-

Trained Staff is very important for any kind business and for me the trained staff plays important role in desk restaurant and to produce typical Lahore taste.

Capital:-

For taste of Lahore restaurant I must have some cash in hand for staff wages and daily expenses of the restaurant.

Raw Material:-

By the raw material means cooking inputs i.e. spices, wheat flour, rice and other materials.

Budget for the project:-

As I am going to start this business at a small level. Taste of Lahore already has three branches in London having a busiest sales point and good business, so I don’t need to have big capital for this project.

Premises / Security Deposit: £ 7000.00

Rate & Rent next 6 months: (After 6 months the rent will start Per Month £450.00 and contract will be processed)

Cooking Oven, Fryers dishes etc £ 8150.00

Renovations and fixture Installation: £ 4000.00

Staff & Training (Induction): £ 205.00

Publicity: £ 1000.00

Misc: £ 1000.00

Monthly Expenses:-

Utility Bills: Approximately : £ 400/ Weak

Staff Wages £ 1700/ Weak

Maintenance : Approximately : £ 150/ Weak

Raw Material: To pay (Supplier will provide stock on 2 months credit)

Break Up of Equipment Required:-

Item Cost Location

Refrigerator £800 Catering warehouse

Freezer £350 Bargain pages

Hot plates £600 Catering warehouse/auction

Cooker £1000 Warehouses

Pots and Pans £500 Warehouses

Grinder £700 Wholesalers

Sink and Shelves £600 Warehouse

Tandoori Oven £700 Catering warehouse

Canopy £1000 Factory (made to fit)

Cash tills £50 bargain pages

Total £8150

Expected Income of the Taste of Lahore Initially: £4000.00

Sources of funds:-

They are some other resources which are required for my Project:

Sources of funds are personal finance and Banks loan.

Cost Benefit Analysis of project:-

The current issue of the Foot and mouth disease in the poultry products would affect transport

of livestock, which would in turn would affect the supply of meat and dairy products (which

are a key part most Indian dishes) due to new laws being introduced. Public spending –

taxation would also be a political factor for restaurants.

For the taste of Lahore restaurant if my proposed business could face problems, because as a

result people would not have enough money to spend on restaurants, however, the

opposite may occur if employment goes up. If more jobs and wages were promising then

there will be more disposable income and then more people would purchase restaurants.

Prices – would increase because lack of supply due to foot and mouth.

If there were a boom in the economy there would generally be more demand, however this could take place via a recession.

Foot and mouth will not only affect the food industry but other industries in the long-term.

For example foundries make components which are used in the manufacturing of food,

however if the industry was unable to produce that particular food they wouldn’t need to

make the components causing the foundries to lose profits due to loss of business.

Social Trends: restaurants would be considered leisure facilities for people to spend

Their disposable income on Lifestyles and diverse tastes of consumers also play a major role.

Demographic issues: The population is getting older which could affect the business of restaurant. Customers like to stay at home rather than to come in restaurants.

Task 2.2

All costs for the training of staff :-

In this task I am going to produce a report for the management.

The objective of this task is to identify and cost the training and development required by staff.

Report:-

The Manager,

Taste of Lahore. London

Staff Development and Training Costs :-

For the taste of Lahore the Training is very important, without the correct training an employee cannot perform his or her job properly. A new employee would normally be trained before joining a company, but they can be trained at any point in his or her career. A Company should be keeping its staff up to date with the latest training, ranging from practical skills to technology, if the employee is using it they should be trained to use it properly. 

A Desi Resturant should offer training for all kind of different parts of the job, if the employee is working at the till then he or she should be trained to use it, and to serve the public. If they are working in management then they should be trained in all the work associated with that job, e.g. computing, management etc. There is a variety of training that should be used throughout an employee’s career.

A training program for employees would include an initial training with other staff, team building exercise. Then they will be taught how to use the various equipment for their specific job e.g. cook, the cooking equipment or trainee manager, computing. This would be the main part of the training process, other than this they should be trained on anything else that they will have to work with. The trainee manager would also be trained to use tills, and work with public just in case of shortage of staff or other emergency problems. The whole staff will also be trained in health and safety, for instance where to go when there is a fire, where to go if worried, and where to go to get medical attention 

This training program will insure that each and every employee will have the correct information on how to work in the workspace. It will help them get on well with other employees avoiding unwanted confrontations of any kind and help them work better. It will also ensure their safety and enjoyment in their job. 

The researcher on the other hand won’t be spending a huge amount on staff training as I am going to get experienced chef from the other branch in Wembley to work here. Also, the researcher will be hiring 2 experienced waiters. When the restaurants starts there will be a 4 hour Induction and Training program which will give them the basic idea of the running of the takeaway. The researcher had given up the break-up as follows.

Staff Training cost:-

Induction Trainer - £ 150

Mr. J.k Mill (Head Chef in Taste of Lahore, Wembley)

Stationery Used - £ 25

Snacks provided - £ 30

Premises - There will be no costs for premises as the training will be carried out in the restaurant itself.

Total costs of staff developing will be £ 205.00

Task 3.1

1 Implementation of the project

In this part of the assignment I am going to plan the implementation of the project.

The objective of this task is to implement the project and involve stakeholders in the project’s progress.

Time Scale:-

For any kind of business time scale and time management is very important because time management tells us that how can run our business in a good way and how we can we make decision on time that are related to our business.

For each task /work time scale must be clearly mention so it enables an employee to keep in mind that time limit has been given to him. The outcome clearly show all the activities needed with their deadlines.

Gantt chart for Taste of Lahore:

Activity

May 2010 TO July 2010

WEEKS

1

1

2

3

3

4

4

5

5

6

7

8

8

9

9

Project Selection Proposal

X

Business Location finalization

X

X

X

Proposal for fundings

X

X

Market survey/ Analyzation

x

X

X

Resources for Capital

X

X

Customer survey

X

X

X

X

Customer survey

X

X

X

X

Manue & Report Drafting

X

X

X

Documentation Revise draft

X

Finalization

Task 3.2

Time Scale:-

For any kind of business time scale and time management is very important because time management tells us that how can run our business in a good way and how we can we make decision on time that are related to our business.

For each task /work time scale must be clearly mention so it enables an employee to keep in mind that time limit has been given to him. The outcome clearly show all the activities needed with their deadlines.

Future Marketing Strategies For Taste of Lahore:-

In my marketing strategy i would primary focus and produce offer in Taste of Lahore:

Lahori starters, Tandoori dishes + Roti Chicken dishes

Grilled dishes Curries Vegetable dishes

Desserts

Promoting the Restaurants:-

For the promotion I need to distribute leaflets and flyers door to door, which would be delivered by two boys and we would also be advertising in the branch at Hounslow. The leaflets are a form of advertising for the Restaurant, which is cheap. This the researcher feels is the simplest way to get the message across to would be a customer. Newspaper adverts are another way the researcher could promote the takeaway. In my marketing strategy I will keep together my prospective customers and competitors.

Target customers for Taste of Lahore:-

The local community living in Hounslow, and the people living in central Hounslow the taste of Lahore would be just five minutes’ walk from the hounslow high street and town centre so the customer coming for shopping on high street will be the targeted customers for my business.

There is a Thai Restaurant, which I have closely looked at in the early part of this assignment. There is also a Nando's restaurant, which is also on London road. Major players such as McDonalds, Burger King will not affect my restaurant as they already have loyal customers who are hard to steal from these major organizations. Therefore, my restaurant will be in fierce competition with Grilled offer by Nando’s.

Marketing Mix of the Taste of Lahore:-

Product – Quality, Presentation, unique flavored food.

Price – Prices that are cheaper than my competitors.

Promotion – Distribution of menu, advertising on the menu, viral marketing, 2 for one. Offers or buy discounted dishes before a certain time limit daily.

Place – On a main road; London Road 2 Minutes from the town centre of Hounslow.

Distribution strategy:-

Customers can come to collect their meals or meals can be delivered to them provided that the meal costs over £10. However, delivering the meals is not good because it can cause all sorts of problems like delivery vehicle costs and not enough staff for deliveries.

Pricing strategy:-

The data on prices in the primary research needs to be used as a benchmark for prices.

As a short-term pricing strategy just to enter the market, as I will use is ‘Promotional pricing’ this means that the taste of Lahore will charge special low prices for a short period of time this price the researcher feels it would attract more customers and it certainly get the business off the ground in the growth phase.

Taste of Lahore’s Stakeholders:-

Stakeholders and shareholders are individuals or groups of people that have an interest in what a business does. They are either affected by the business or affect the business by what they do. There are eight types of stakeholders and they are as follows:

The owners/shareholders - They will receive more or less profit depending on how successful the business is.

Customers: they can for fill their personal needs.

Employees: The takeaway being there ensures their employment.

The competitors - Thai Resturant, Nando’s, Tabla Restaurant, They compete with other businesses and try to persuade customers to buy from them by lowering prices, doing deals etc.

The government- the government charge the business VAT and business charges.

The community - it might raise the profile of the area; they can offer work experience to school children and the community can also profit from the donation of the business for charitable events.

Finance providers: Banks and building societies can offer loans to the business.

 Influence of Stakeholders:-

The two main stakeholders in Taste of Lahore are as follows:

Consumers.

Shareholders.

The consumers are important because they are the people who purchase the products and give the company money. If consumers did not purchase products from the business will not earn any money and eventually go bankrupt.

Task 3.3

Measures to monitor and evaluate progress:-

For a successful implementation of a project has a close relation with proper monitoring and control because a successful implementation is only possible when there is a strong monitoring and control system that watch them weather people are working according to their responsibilities and they are working according to given instructions or not.

Team member’s participation:-

It is also very important to manage a project in a good way and to provide the needs of the project properly. Its and essential measures to discuss the plan with the team members of the organization that what is the project and its plans and what is going on and tell them what are their duties, responsibilities, so they can understand their limitation and when top leadership and team members are connected with each other than they can get better results because they all work together.

Performance Review:-.

At the end of the project we take a final review of that project to find what we have done in project and what we have got from that project. Proper measurement of the project is also very important weather people/team members are working properly or not. It is duty of top management to check progress and activities of team members that are related to project. Review of the project gives us information in which areas we are weak and we need to get more performance.

Consumer Protection:-

This is an important area to start a business, which will sell goods directly to consumers; it also regulates trade between businesses.

Acts under restaurants.

Trade description Acts – Makes it an offence to apply a false or misleading description to your goods or services and a false or misleading indication of the price.

Sales of goods act – Require that your goods are described that is, they comply with the description given to them. They must be fit for the purpose for the use described to the customers when making the purchase. They must be of satisfactory quality; this allows consumers to return goods for relatively minor defects, which may not necessarily have comprised their fitness for purpose.

All food outlets will have a problem at one time or another to do with food, e.g. lack of flavor, different product packed into the bag, which was not ordered by the customer. Our policy would be that if there were any minor problems with the food we would either return the dishes stated or give them a refund. The only major problem we can see with the food would be food poisoning and this will involve a complaint, to avoid this, we will be very hygienic to not prevent this happening anyway. If this happens we will offer the customer a full refund or a free meal next time they come. Also we will have a full investigation into why this happened.

Sales of Goods and Services Act 1982 – Requires that companies and trades people must use reasonable care and skill in providing services.

Consumer Safety Act 1978 – Allows the government to introduce or update regulations concerning the safety of goods to reduce the risk of personal labeling, container, materials, parts etc and the way it operates meet the relevant safety regulations. Consumers for any damages connected with your product being defective can sue you.

Environment:-

Environmental protection act 1990 – has applicant for the way in which you produce goods and services. It seems to prevent pollution of air, water and land from emissions resulting from the product process. It controls waste disposal methods, litter, odors, vibration, noise and other side effects of business that may damage the environment, create a public nuisance.

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