Pitha Hut Business Plan

Financing

Ours total investment is BDT 600,000 which includes BDT 400,000 of capital and 200,000 of loan. This 400,000 is contributed by our six partners equally and the remaining 200,000 of loan is to be paid of over 3 years. This financing will cover all the long-term & running costs like van, office building and materials, suppliers, advertising & production cost.

Confidentiality of report

This report is confidential and is the property of the co-owners listed above. It is intended only for use by the persons to whom it is transmitted and any reproduction or divulgence of any of its contents without the prior written consent of the venture is prohibited.

Executive Summary:

Nowadays fast foods are very much popular all over the world because of less time consuming and more taste. It is also popular among the people of our country. But because of these junk foods we are forgetting our own traditional foods like pithas. So with this initiative we have come forward to make a business plan to replace the ongoing fast foods trends by our traditional Bangladeshi pithas.

We have named our business as ’Pitha-Hut’. We have given this name because we feel ‘pithas’ are the heart of Bangladeshi culture.

Our idea is to serve various types of pithas that will attract the people towards our own cultural specialty like misti-pithas & jhal-pithas. We think it has great potential in this type of food market industry. We have determined some factors that will help us to generate some revenues from the beginning of this business launch. And we also have defined our competitor’s strategies so that we can compete with them. We have analyzed our SWOT and defined our business strategy. We have created a great opportunity for investors who seek new innovative business ideas and plans.

We have determined our break-even point on daily basis. We have calculated the targeted year when we will collect the investment and the revenue amount. And we projected our revenue will be double up within five years if we go at a significant speed. We have forecasted that we can attain the break-even point if we make a sale of 2052 Tk. daily, approximately of 250 pithas. Our objective is to provide a better quality food habit and to shift the trend from the fast food items to traditional pithas.

Industry Analysis

We need to do an industry analysis in order to know which industry, we will be competing in. Discussion of the industry outlook, including future trends and historical achievements are included here. We are providing insights on new product development in this pitha industry.

Future outlook and trends:

Here we are doing business for occupying the place of fast food restaurants. So primarily, we are planning to do business in university of Dhaka (TSC area). As almost all students take snacks in the campus, the anticipated growth in this industry will be notable. Current trend is that no notable new industry has been entered in this area. In near future we are planning to launch our chain ‘Pitha-Hut’ in all over Dhaka. Within 20 years we will extend our brand in the whole country.

Analysis of Competitors:

Within this market we have some strong competitors like DUCSU, TSC, Shadow, Various hall canteens, various faculty canteen and several hawkers and so on. But as we are going to start with the conventional local food, we don’t have such type of strong competitors. It is stable business because it is related with appetite. So it is appropriate business to enter. Exit barrier is low, so certainly it is an attractive segment of market to choose. Actually those above mentioned shops are our nearest competitors. However, these existing competitors are focusing on the only fast foods or lunch. On the other hand, these competitor’s products are not according to the standard quality.

Why we will win over competitors?

We will be able to capture the larger portion of the market because we are doing something different by providing traditional pithas to the market. On the other hand our quality will be high enough to attract customer and customer can get quality food at a comparatively low price. As it is a mobile restaurant, we can also provide place convenience.

Market Situation Analysis

Every  business  has  its  own  features  on  which  the  chances  to  be  successful  depends.  For measuring the potentiality and the risk of a new business we need to make the proper use of SWOT analysis. By this analysis we can evaluate the strength, weakness, opportunity and threat. We are starting with the strength of our plan.

Our Strengths:

We are going to deal with the seasonal Bangladeshi foods, which are known to us as ‘Pitha’. Traditionally we have many seasonal pithas. We have pithas in winter season; we have pithas in summer and also in spring. The main advantages of our plan can be categorized in two ways. One is cost effective and another one is health consciousness. Our conventional seasonal foods are always very much popular among the people. But now-a-days, people lose their attraction toward pithas because of its unavailability. For that reason, we concern that problem. And also specialized skill is needed for making these foods. We have such special cooks for preparing delicious pithas and this is ours main strength. We will reach all the pithas to the customers as like as fast foods.

Our Weaknesses:

In this business, we found very few weaknesses. But they are significant. Some pithas can be prepared in winter only, cannot be made in summer. Because of the unavailability of some core ingredients, some pithas cannot be prepared all the time. So, this is our problem. We cannot provide our best effort through the whole year. Another weakness is that our ingredients come from natural resources those are not available in urban areas. We have to get those things from rural or sub-rural areas. For this we need to have strong chain of suppliers. But for maintaining those suppliers and also because of the distance we have to spend a lot that will certainly minimize the profit. Diversity of taste can be weakness in a sense. We have to be diversified for the changing demand.  So in this case, we need to be a little bit innovative.

Our Opportunities:

We have huge opportunities in this business. Because people are very fond of those conventional pithas. One problem is there and that is unavailability. Sometimes people get those pithas, but the sources are very unhealthy. There is no brand pitha industry in this field. So, these all things are opportunities from our surrounding market and for those opportunities we thought for that business. So ‘Pitha-Hut’ is going to be the brand name of our seasonal pitha. Nowadays, people are much more health conscious, so many of them are trying to leave those
fast foods with high cholesterol, but they have no substitute products to take. ‘Pitha-Hut’ is going to be for that replacement. And pithas aren’t junk food. So people will get more attraction to these pithas.

Our Threats:

We are going to enter into a highly competitive segment of food market. We will have to face a lot of threats. Our major competitors will be the fast food shops. They already have diversified product lines and also they are capturing the major portion of the market. Our other threat can come from bakeries, pastry shops and a bit from restaurants. Bakeries and pastry shops are producing and serving some food items that made the need of the loyal customer whom we have targeted. Restaurants are dealing with the customers with limited earning. So, all these things are proved to be the threat for that new business.

Market Segmentation:

Here our target market will be student and visitors coming to the campus area of the University of Dhaka. And we targeted those who have attraction for pithas. We did a survey for finding out our targeted market. Maximum choose pithas as their leisure foods.

Industry forecast:

From a long time, students are complaining about the quality of the food and they are also complaining about the high price of the product. We will be successful as we will try to overcome all the limitations that competitors facing.

Description of Venture

Product:

We are offering variety of pithas in our venture. Products are characterized below-

1) Chitui/chitoi piṭha,        2) Teler piṭha,    3) Bhapa piṭha/dhupi,    4) Pakan piṭha: fried,

5) Puli piṭha: dumplings,     6) Beni piṭha,     7) Dudher piṭha /bhija piṭha,    8) Chôndro puli,

9) Muger puli,   10) Dudh puli,   11) Paṭi shapta,   12) Mug pakon,      13) Gokul,   14) Chui Pitha,

15) Ras pitha, 16) Bibi Khana Pitha, 17) Malpoa Pitha, 18) Dhup Pitha, 19)Bora Pitha, 20)Ful Pitha

Location and size of the Business:

As ours is a mobile restaurant, there will be no specific location. But primarily, we select TSC area and Mall Square. We will use caravan to carry our products to these locations. As we have some financial limitations, we will lease caravan at least for three years. Mall square and TSC area will be the right place for our business. As most students get together here for various purposes, there is more possibility of sales. On the other hand, TSC area is very popular for the visitors to pass their leisure time.

Office equipment and personnel:

For operating this business, we will need at least two experienced skilled cooks for preparing various delicious traditional pithas. On the other hand, we will hire at least four moderately educated, smart, young employees for selling and distributing purpose. Two of them will be male and rest two will be female and their dress code will be traditional. As equipment for preparing traditional pithas are not so much high. We will purchase the equipment in case of necessity.

Background of entrepreneurs:

We don’t have that much business experience as we are doing study in business school. The thing we have that is business knowledge. We just can apply our theoretical knowledge in our success. We don’t have any practical management experiences. But we will take help from different sources for our success.

Why will we be successful in this venture?

Actually most of the students of this University feel the necessity of quality food at a comparatively reasonable price. On behalf of the students of this campus, we want to overcome this problem and establish ourselves as successful entrepreneurs.

We will be successful in this business because we are trying to focus on the needs and desires of the customers. Because of quality and cost effectiveness, we will be different in our market.

Production Plan

Manufacturing Process:

Our experienced personnel will maintain all the manufacturing processes and we, all the co-owners, will supervise them personally. Our operational process will be in two phases. Some products will be prepared in our factory building and the rest will be in our mobile restaurant.

Physical Plant:

At the beginning of our venture, we have very small management for our physical plants. But we have the plan to increase ours physical plants in near future. Initially, we will lease a factory having space of 15ft width and 20ft length. We have all the facilities in our factory building which are used in preparing pithas. We will also purchase a van (caravan) for distributing and selling our products to the customers.

Machinery and Equipment:

As our product is food based, we need machineries and equipment that are used for preparing foods. We will need microwaves, ovens, warming and holding equipment, filters, blenders and some other necessary utensils for preparing our products.

Names of Suppliers of Raw materials:

We should build a strong chain of suppliers who can supply us the ingredients we need to make those seasonal pithas. As our ingredients are very much natural we have to depend a lot on the rural areas. So for the availability of those ingredients, we must have a strong and skilled line of suppliers. Those products are highly perishable. So transportation facilities and timely distribution of those items should be ensured. That’s why skilled suppliers are needed.

Our potential suppliers will be the following people because we will get better service from those suppliers.

1. Rahman Mia from Kawranbazar will supply us flour from his flour mill.

2. Kalu from Shantinagar will supply us milk from his own dairy firm

3.  We will get paddy supply from ‘Jahid’s Store’ from Khulna.

4. Morshed Gazi from Narashindhi will supply us date juice in winter season.

5.  IbrahimMolla from Jessore will supply our necessary coconuts.

6.  KashemHawladar from Kustia will supply sugar/gur.

7. We have contracted with ‘Vai Vai Store’ from Dhaka New Market for our other commodities.

Marketing &Promotional Plan

Marketing and promotion is one of the essential part of any new business venture. Here we will describe several controllable tools to promote our new brand ‘Pitha-Hut’.

Pricing:

We will follow the cost leadership pricing strategy because we are the new entrance in the market. If we want to compete with the existing competitors and to attract our targeted customers, we should follow the cost leadership strategy. On the other hand, as our targeted customers are students and visitors of University of Dhaka, they will also consider price as a criterion for purchase. Though we are using cost leadership strategy, our primary focus will also be on the quality of the product. In this case, we can call this the method as differentiation strategy. Here, we will use markup pricing method.

Distribution:

After producing the product, we will deliver the prepared product to our mobile restaurant; from there we will directly sell to the customers. Actually, we will reach our customers for giving them our quality services.

Promotion:

We will use the following promotional techniques for our targeted sales-

1. Pestering,                   2. Banners,                3. Festival discount,                4. Discount Lift lets,

5. Sound marketing,        6. Buzz marketing,                 7.Ballon marketing

Controls:

For controlling our marketing operations effectively, we will try to get feedback from customers. Customers will be given the chance for complaints about our products and according to the complaints and suggestions we will take corrective actions. Thus we will control our marketing operations.

Organizational Plan

 

Form of Ownership:

Business can’t run without proper management system. So, we have built a structured form of ownership. As we six friends thought for that venture, so we preferred for ‘partnership venture’. We all will work as a partner.  

Identification of partners or principal shareholders:

Partners and shareholders of ‘Pitha-Hut’ are in the following-

1. Md. Afsanul,                                                               2. Md. IrfanulHaq,

3. Shaikh Md rasel,                                                        4. Asaduzzaman,

5. Md. MurshedulAlam,                                                 6. Md. Saddam Hossain

Authority of principals:

We are very much concerned of our management body of our venture. We have a flat management structure. That is given in the following-

1)      Chief Executive Officer (CEO)  – Md. Afsanul Hossain,

2)      Financial Manager – Md. Irfanul Haq,

3)      Production Manager – Asaduzzaman,

4)  Marketing Manager – Shaikh Md. Rasel,

5) HR Manager – Md. Saddam Hossoin,

6)      Supply Chain Manager – Md. Murshedul Alam

Management-team Background:

We are students still. So we don’t have that much skill of management. As we are the students of business school, we have broad concept about business and marketing activities. Hopefully, it will help us in our business to run it properly. One of our partners has managerial skills. In shortly, this is the first time we are doing business. But we think our venture will be fruitful for our unique business plan.

Roles and Responsibilities of Partners:

As it is a partnership venture, we must have to co-operative to each other. We will follow all the rules of partnership venture. And responsibilities of all the partners are mentioned in the above.

Assessment of Risk

Every new venture will be faced with some potential hazards. We also face some risks in this industry and competitive environment.

Evaluating weakness of business:

It is important to assess the weakness and prepare an effective strategy to deal with them. Some issues are related to this

1. Raw material limitations in various seasons

2. Lack of available urban suppliers

3. Lack of chilly food taste

4. Financial limitation for brand promotion

New technology:

In this industry, there are not so much modern technologies for use. From this perspective of new technology we will not have to face so much risk. But we have used necessary tools for preparing pithas.

Contingency plan:

To overcome our weaknesses we have found out several measures. They are as follows-

1.  Nutrition  Test:  We  will  setup  a  nutrition  test  facility  to  maintain  and  observe  the
nutritious power of our foods. As we are concerned with our customers’ well-being, we
are very much conscious about the nutrition of our foods.

2. Test of Healthiness: We will make comparison the healthiness of all foods will be under
our service. Because the more healthy food we will serve people will get more interested
with our items. And this will be a plus point for our business.

3. New Recipes: We will search for new recipes, new ways of serving foods, or new type of
food which can make a run in parallel to our products. Because innovation creates some
extra images and people are fond of something new. So we will arrange some recipe
contest or new food idea hunt type program to make this in a chain.

 

 

 

 

 

Financial Plan

Pro-forma Balance Sheet of

‘Pitha-Huts’

              Assets         Tk                Liabilities         Tk
Van

Cash

Factory building

Manufacturing equipment

Total300,000

50,000

150,000

100,000

Capital

Loan

Total400,000

200,000

600,000600,000

 

         

Depreciation Costs for Every Year within a Five Years Period

Years

1st Year2nd Year3rd Year4th Year5th YearDepreciation180,000126,00088,20061,740205,800

                               

Expenditures for the Yearly Basis

Expenditure 1st Year 2nd Year 3rd Year 4th Year 5th Year
Rent

Administrative

Salaries

Depreciation

Materials

Others30,000

40,000

384,000

180,000

100,000

15,00030,000

42,000

387,000

126,000

110,000

18,00030,000

45,700

390,000

88,200

115,000

20,00030,000

51,200

392,000

61,740

120,000

22,00030,000

53,600

395,000

205,800

130,000

25,000Totals

749,000713,000692,900676,940839,400

 

Revenue Calculation for the Years

Years 1st 2nd 3rd 4th 5th
Costs 749,000 713000 692900 676940 839400
Revenues 780000 1100000 1350000 1660000 2225000

 

 

Break-Even Point Calculation for on Daily Basis

Break-even cost = Total Variable Costs / Number of days

= 749000/365= 2052

Break Even Revenue= 2052Tk

Break Even Sales Volume= 250units (summation of the followings)

  • Vapa phita (50 unit*10Tk) = 500Tk
  • Pathisapta phita (50unit*10Tk) = 500Tk
  • Puli phita (17unit*5Tk) = 85Tk
  • Sweet Phita (50unit*10Tk) = 500Tk
  • Chitoi Phita (30unit*8Tk) = 240Tk
  • Others Phita (45units*10Tk) = 450Tk

Target Revenue for 1st year on Daily Basis=780000Tk/365days=2200Tk

Target Sales Volume for 1st year on Daily Basis=260units

In the above all calculations, we show ours total expenditures, revenues and the expected return over the years. And it is certain that we can pick up our one year’s expense if we can make sale of BDT 2052. Our business plan will be effective if we can apply all our strengths properly. At the same time, we have to find better solutions for our recognized weakness.

The End

Appendix

Consumers Attitude toward Bangladeshi Traditional Pithas

Market Research Survey

Name: …………………………………      Address: ………………………………..  

Age: ……………………………………       Contact No: ……………………………

1. If our new product were available today, how likely would you be to use it instead of competing products currently available from other companies?

a) extremely like,   b) moderately like,   c) like,   d) dislike,   e) extremely dislike

2. If you are not likely to taste our pithas. Why not?

a) do not need a service like this, b) do not want a service this, c) satisfied with competing services currently available, d) Cannot pay for a service like this,   e)Not willing to pay for a service like this.

3. How important is convenience when choosing this type of pitha?

a) extremely important,   b) very important,   c)moderately important,   d)slightly important

4. Overall, are you satisfied with your experience using our new product, neither satisfied or dissatisfied with it, or dissatisfied with it?

a) extremely satisfied,   b) very satisfied,   c)slightly satisfied,   d)neither satisfied nor dissatisfied,   e)extremely dissatisfied,   f)slightly dissatisfied

5. If our new service were available today, how likely would you be to use it instead of competing services currently available from other companies?

a) extremely likely,   b) very likely,   c) moderately likely,   d) slightly likely,   e) not at all likely

6. If you are not likely to use our new service, why not?

a) do not need a service like this,   b)do not want a service this,   c) Satisfied with competing services currently available,   d) cannot pay for a service like this,   e)Not willing to pay for a service like this.

7. How important is convenience when choosing this type of service?

a) extremely important,   b) very important,   c) moderately important,   d) slightly important,     e) not at all important.

8. Overall, are you satisfied with your experience using our new service, neither satisfied or dissatisfied with it, or dissatisfied with it?

a) extremely satisfied,   b) very satisfied,   c) slightly satisfied,   d) neither satisfied nor dissatisfied,   e) extremely dissatisfied,   f) slightly dissatisfied

9. If our new service were available today, how likely would you be to recommend it to others?

a) extremely likely,   b) very likely,   c) moderately likely,   d) slightly likely,   e) not at all likely

Sample Price Menu

Items                                                                                               Price (Tk.)

Sweet Pitha:

Vapa Pitha                                                                                                 10/=

Patishapta Pitha                                                                                        10/=

Semai pitha cooked by gur (per plate)                                                     10/=

Takti Pitha                                                                                                   5/=

Pooli Pitha                                                                                                    8/=

Nakshi Fula                                                                                                15/=

Ras Chitai                                                                                                  12/=

Dudh Chitai                                                                                               10/=

Chilly Pithas:

Jhal Pooli                                                                                                   8/=

Dim Makhan                                                                                             10/=

Jali Pitha                                                                                                      8/=

Jhal Takti                                                                                                     5/=

Spicy Pithas:

Vaja Pooli                                                                                                  8/=

Vaja Patishapta                                                                                         10/=

Shukna Chitai                                                                                              8/=

Shukna Chitai with chicken                                                                       20/=

Pan Pitha                                                                                                     5/=

Fluid Items:

Coconut Water                                                                                             5/=

Bel Sharbat                                                                                                   8/=

Lebu Sharbat                                                                                                5/=

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