Business Proposal for Ice Cream Parlor

IBMS Agriculture University Peshawar

Project Proposal

“Scoops Ice Cream Parlor”

 Business Proposal for Ice Cream Parlor

Introduction to Business
Scoops ice cream parlor is one stop ice cream shop. Where you find flavour of your
choice in any season. We provide ice cream by maintaining high standards of quality in a
joyful environment.

Ownership: Sole-proprietorship
Name: Scoops ice cream parlor
Slogan: “Good for you”
Type of Business: Ice cream manufacturing and retail shop

Goals & Objectives:

• Gain 50% of market share in first year of business in that particular area(s)
• At least 50% initial investment must recover in first six months of business
• Make long-tern relationships and profitable with customers
• Provide healthy ice cream
• Provide splendid environment
• Make courteous, loyal, sincere and environmental friendly environment image in
customer’s mind

Vision statement:
“To provide a place with lifetime experience and rich taste and be market leader”

Mission Statement:
“We provide ice cream to customer of all ages in variety of seasonal, non-seasonal and
other flavors”

Scope of Business:

We are providing healthy ice cream to all age groups especially to teenagers and college
students in lots of flavours. Specifically we are targeting middle class and upper class.
We are advertising mostly through print ad campaign and sometimes through radio to
capture large audience in lowest possible cost. We will not involve any intermediary and
deal with our customers directly. We will try to give them as much joyful and healthy
environment as we can. We try to position ourselves as courteous, loyal, sincere and
environmental friendly people. Our team also use web as mean of communication with
our stakeholders. With the expansion of our business we may plan and implement some
changes in our ice cream parlor.
 Business Proposal for Ice Cream Parlor

Management Plan
Organizational Chart
Manager

Floor Manager

Sales Sales Sales Sales

Representative Representative Representative Representative

Duties & Responsibilities

Manager
• He needs to make a check & balance between all the employees.

• His duty is to check the current company performance and remove the upcoming
problems to new business

• Manager needs to motivate his team and create a balance between all employees.

• He also verifies the company accounts and make a detail plan about company
current performance with desired performance

Floor Manager
• Floor manager check the performance of sales representatives

• His job is to check the condition of stock & inventory and its timely delivery

• The floor manager manages the problem face by sale representatives

• Validation of Sales & Purchases

• He needs to take Customer feedback about product & services and create changes
according to them

Sales Representatives
 Business Proposal for Ice Cream Parlor

• They welcome the walk in customers take orders, receive cash and serve product
to them.

• They need to deal with customers calmly and politely.

Estimated Salaries

Personnel Plan monthly Year 1 Year 2 Year 3

Manager 50000 600000 660,000 726,000

Floor Manager 22000 264,000 180,000 310,800

Sale
Representative (4
person/Shift) 17000 204,000 234,000 260,000

Total 140,000 1,680,000 1,776,000 2,076,800

Start-up Summary
ICE Cream will incur the following start-up costs:
• Renovation of shop ( flooring, ceilings, paints etc)
• Air conditioners
• Others
• Computer system with CD-RW, printer, Microsoft Office, QuickBooks Pro, and
POS software
• POS terminal/cash register.
• Back office desk and chair.
• Front of store counter.
• Shelving racks.
• Display racks.
• Chairs, mirrors.
• Assorted halogen track lighting
 Business Proposal for Ice Cream Parlor

MARKETING PLAN

Product market expansion grid:

Low cost operator:
We will be following the strategy for our expansion of ice-cream and they would be,
Low cost operator in terms of using minimum initial investment - to not to overload the
business with expensive assets.
Assets utilization- ensuring full use of existing assets at a regional level before acquiring
additional ones.

Ingredients optimism – selection of appropriate ingredients, which gives desired

consumer perception at lower cost.
Innovation / Renovation
Using strong innovation system, which will be able to provide you new flavors.

Product availability (“with in arms reach”)

Maximum availability

Strategy for Launching the Parlor

Creating awareness about our parlor to at least 50% of the target market within first five
months of launch would be our first and foremost objective, because if we are succeeded
in capturing our target market then we could easily gain other goals by delivering them
value and satisfaction that we promise. We can measure awareness by taking feedback
from people.

• Creating awareness & Capturing 50 % of target market within

first year:
Our promotional activities will develop interest for people thus compelling them to
approach us. We will make good relations with our customers so they create good word
of mouth for us and approach us again and refer others for the sake of building long-tern
relationships.

Marketing strategy:
Our product will include features that contains the combination of both health and
hygeine keeping in mind the individuals requirments in terms of taste. However the
marketing will be done considering the concept of mass personage.
Our product will be tailored to individual needs (desired taste) but promotion will
attract all of them collectively. Further more we will be following pull strategy and
approach our end users ourselves with the help of various promotional activities. In
our case no intermediary (whole sellers) is involved.
 Business Proposal for Ice Cream Parlor

ACTION PROGRAMS
We will act for our operations by the following schedule. For the implementation of the
plan we have divided the tasks to the respective staff that will ensure the implementation.

Responsibilities of the Team:

Marketing Head
He/She will be responsible to coordinate all the marketing activities and directly involved
in the designing and implementation of the public relation and advertisement activities.
He also monitors the budget details given to him by the financial officer and ensures its
proper allocation.
The financial officer’s keeps record of the marketing budget and the distribution of
budget allocated for various areas by the head.
The process control officers make sure that all the process involved in the service is
performed efficiently. He coordinates the activities of the all the staff.
Competitors
Our main competitor in Lahore are yummy 36, chaman, feasta, malees café, yousaf ice
corner, and all the parlors which are targeting upper class and middle class people. They
all are well established and positioned. So, we have to be very careful about these
competitors in Lahore.

Public Relations
Building good relation with our clients is essential to capture large share in the market.
These public relations will be built by arranging festivals occasionally especially like
BASANT. We will be giving free kites and those kites will be marked by our (product)
brand name. This will not only help in creating good public relations but also crate
awareness among the public.

Sales promotion
Our major sales promotion is by giving special discounts or coupons to our customers
and retailers. For example with every purchase of 3-cups of ice cream one cup would be
absolutely free. We will arrange these kinds of discount activities’ on timely basis to keep
an edge over our competitors’.

Direct Marketing
Direct marketing is an important entity in our promotional mix. Presently there are many
groups of youngsters who are really interested in trying these kinds of new products. The
important fact is that they are not only themselves seek products from the best possible
providers but also refer their fellows. Technique which we will use is sending occasional
mails to the registered users on the web, thus communicating ourselves directly with the
most potential group of our market. These mails will give details of our new products
along with a redirection to our web site.
 Business Proposal for Ice Cream Parlor

Financial Plan
Financial Objectives:
The following objectives are for the first two years of Fast ‘n Fresh Premium Ice Cream
Parlor:
1. Total capital investment of Rs. 3 million
2. Owner has to earn Rs. 1,500,000 by the end of Year 1
3. Break-even cash flow by the end of first 18 months
4. Owner has to earn Rs3,000,000 by the end of Year 2

Allocation of Funds:

• Management plan 15%

• Marketing plan 25%
• Production plan 50%
• Legal plan 5%
• Other plans 5%

Sources of Finance:

Personal Funds: The owner will invest Rs. 1.5 million into the business

Loan Proceeds: The mode for this kind of financing is running finance and initial
amount fix for running finance is Rs. 3 million.(The additional one million is for
unforeseen situations/Expenses)

Cash Receipts From Business:

• First year cash estimate: Rs. 1,500,000
• For second year estimate: Rs. 2,500,000
(Breakeven also occur during 2nd year as total cash earned up to end of 2 nd year is
Rs. 4,000,000 while for break-even Rs. 3,000,000 is needed)
• For 3rd year cash estimate : Rs. 3,000,000

Tax and other expenses will also be considered in detailed financial plan

While currency appreciation with passage of time is expected to be +1.05% of Dollar

value.(as present value of PAK rupee against dollar)

Note: Adjustment in Financial can be made with passage of time according to

conditions
 Business Proposal for Ice Cream Parlor

LEGAL PLAN
Our legal plan includes:

• Trade mark
• Registration of ice cream parlor
• Slogan
• Logo

Others things include apart from these as fellows:

• Partnership deed
• Registration of website
• Insurance of shop
• Contract with suppliers
• Contract with employees

Market Entry Time

Company aims at commencing its operations in July 2010. Its financial year will end at
June 2011. During the first year the business will be targeting the Eid and spring season
mainly from Sept to March.

Trademark registration
We will register our trademark from the IPO- Pakistan (intellectual property
organization)

Procedure for Registration** (www.ipo-pakistan.com)

1. It is advisable that a search may be made of the Trademarks Register to ensure

whether there are any similar or identical marks on the Register. Search request can be
filed on Form TM-55 with a Pay Order / Bank Draft of Rs. 500 for search of one mark in
one class only.
2. After the search of the Register, application is made on Form TM-1/TM-2 for one
mark in one class with pay order / Bank Draft of Rs.1000/-
3. Acknowledgement Receipt by the Trade Mark Registry is issued to the applicant
within 10-15 days.
4. Examination Report is generated after 3 months. If there are any objections on the
applied trademark, they are communicated to the applicant immediately in the form of
Show Cause Notice. The applicant is required to submit a reply within two months of the
issue of Show Cause Notice.
5. If there are no objections application is published in the Trade Mark Journal. If no
oppositions are filed to the published application within two months of the publication
date of the relevant Trademark Journal, the application stands accepted, and s Demand
Notice is then issued to the applicant requesting him/her to submit registration fee so that
 Business Proposal for Ice Cream Parlor

the registration Certificate may be issued.

6. On the receipt of the Registration fee, the Registration Certificate is issued

Registration of Website
We also need a website for the convenience of our customers to reach us, to contact us
and to get information about us. So we have developed our website www.sicecream.pk

Insurance of the shop

We also need to get insurance of our shop as a precautionary measure to avoid loses from
any mishap.

Contract with the suppliers

We will have one year contract with our suppliers at the start of every year and that
would include agreements regarding:

· Pricing strategy
· Sampling strategy
· Payment dates
· Return of claims
· Delivery of ice cream

Contracts with the employees

For the long term relationships with our employees we will have contract with the
employees so that we will strengthen our business environment without any conflicts
with our employees.

Our contract with our employees includes:

Salaries
• Time period of increment in their salaries
• Working hours
• One year contract of working in our shop
• Punishments in case of frauds
 Business Proposal for Ice Cream Parlor

MARKETING PLAN
Product market expansion grid:
Low cost operator
We will be following the strategy for our expansion of ice-cream and they would be,
Low cost operator in terms of using minimum initial investment - to not to overload
the business with expensive assets.
Assets utilization- ensuring full use of existing assets at a regional level before
acquiring additional ones.
Ingredients optimism – selection of appropriate ingredients, which gives desired
consumer perception at lower cost.
Innovation / Renovation
Using strong innovation system, which will be able to provide you new flavors

Product availability (“with in arms reach”)

Maximum availability

Strategy for launching the parlor

Creating awareness about our parlour to at least 50% of the target market within
five months of launch would be our first and foremost objective, because if we
are succeeded in capturing our target market then we could easily gain other
goals by delivering them value and satisfaction that we promise.
• Creating awareness.
Our promotional activities will develop interest for people thus compelling them to
approach us. We will make good relations with our customers so they create good
word of mouth for us and approach us again and refer others.
• Capturing 60 % of target market within 1 year.
• and refer others.Our promotional activities will develop interest for people thus compelling
them to approach us. We will make good relations with our customers so they create good
word of mouth for us and approach us again

• Marketing strategy:

Our product will include features that contains the combination of both health
and hygeine keeping in mind the individuals requirments in terms of taste.
However the marketing will be done considering the concept of mass personage.
Our product will be tailored to individual needs (desired taste) but promotion will
attract all of them collectively. Further more we will be following pull strategy and
 Business Proposal for Ice Cream Parlor

approach our end users ourselves with the help of various promotional activities.
In our case no intermediary (whole sellers) is involved.

ACTION PROGRAMS:
We will be acting for our operations by the following schedule. For the
implementation of the plan we have divided the tasks to the respective staff
that will ensure the implementation

Responsibilities of the Team:

Marketing Head
will be responsible to coordinate all the marketing activities happening. he is directly
involved in the designing and implementation of the public relation and
advertisement activities. He also monitors the budget details given to him by the
financial officer and ensures its proper allocation.
The financial officer’s keeps record of the marketing budget and the distribution of
budget allocated for various areas by the head.
The process control officers make sure that all the process involved in the service
is performed efficiently. He coordinates the activities of the all the staff.
Competitors
Our main competitor in Lahore are yummy 36, chaman, feasta, malees café, yousaf
ice corner, and all the parlors which are targeting high class and middle class
people.. So we must be very careful about these competitors in Lahore.
Public Relations:
Building good relation with our clients is essential to capture large share in the
market. These public relations will be built by arranging festivals occasionally
 Business Proposal for Ice Cream Parlor

especially like BASANT.We will be giving free kites on that the kites will be marked
by our (product) brand name. This will not only help in creating good public relations
but also crate awareness among the public.

Sales promotion
Our major sales promotion is by giving special discounts or coupons to our
customers and retailers. For example with every purchase of 3-cups of ice cream
one cup would be absolutely free. We will arrange these kinds of discount activities’
on timely basis to keep an edge over our competitors’.
Direct Marketing:
Direct marketing is an important entity in our promotional mix. Presently there are
many groups of youngsters who are really interested in trying these kinds of new
products. The important fact is that they are not only themselves seek products from
the best possible providers but also refer their fellows. Technique which we will use
is sending occasional mails to the registered users on the web, thus communicating
ourselves directly with the most potential group of our market. These mails will give
details of our new products along with a redirection to our web site

THANK YOU 