kehwa hot spot final

8/4/2019 Kehwa Hot Spot Final

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Kehwa Innfeel young craze

2010

Group Members :Muhammad Awais Safdar (MBA020930

M.Waqas ShabbirSunil Ahmar

Rizwan Saddique

Mehboob Elahi

Adeel Ashraf

The University of Lahore

12/20/2010

Submitted to: Sir Irfan Saddique


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Lahore Business School Copy rights

Kehwa Inn

Table of Contents:1. Executive Summary

2. The Business

3. Management team

4. Company Structure

5. Industry Analysis

6. Marketing Plan

7. Operational Plan

8. Financial Plan

9. Appendix


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Kehwa Inn

1.Executive Summary:We look forward some real opportunities to start this fabulous project of Kehwainn

these opportunities includes, Human Recourse , A team with reasonable capital and health

conscious youth so we come to the idea of Kehwa with different flavors and convince store in

KehwaInn.

We will be the first one in the market who is going to introduced Kehwa especially in theproper sitting place, so we have first mover advantage. Our Target Market is University

students and youth. In the beginning we have decided to start our business with six partners

and these six partners are directly part of management.

Convince store is the unique addition in caf business in this store we are offering basic

needs of students like preserve foods, drinks and some stationery. We have a mission to capture

the student market with customer satisfaction and loyalty.

Kehwa Inn is a partnership firm and is legacy registered by (SECP) Security and ExchangeCommission of Pakistan. Kehwa Inn has been started with the capital of Rs /-500000, this

capital is generated by all six partners all the partners invest equally and share will be

distributed at the end of every month. as a partner have good understanding, all of us are

highly motivated and we have the ability to face any kind of hard challenges of business,

special thing in our partnership is we all have done our master degree from same institute so

good understanding is expected.


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2.The BusinessThe opportunity:

We look forward some real opportunities to start this fabulous project of Kehwainn

these opportunities includes:

A.Human Recourse that we have in a form of six partners that are highly qualified

and very innovative, as team these persons are perfect to run a newly openedKehwaInn.

B. Capital is the basic requirement of any business for this purpose we have a team

with reasonable capital.

C. Perceptions of youth is changing rapidly and they are more health conscious so

its easy to market this Kehwa as a healthy product.

Description of Business:Our product is Peshaeari Kehwa with different flavors initially well offer ADRAK,

MINT, LEMON & ILLACHI flavors, and season products like Ice cream in summer and

convince store in KehwaInn.

Competitive Advantage:We will be the first one in the market who is going to introduced Kehwa

especially in the proper sitting place.

Our marketing policy is to maintain loyal relations with the students.

Flavored Kehwa at one Spot with touching environment.

Our target market:Our Target Market is University students so we have decided to open our cafs

initially at university area and then in future all over the global market.


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Kehwa Inn

3. Management Team:In the beginning we have decided to start our business with six partners and these six

partners are directly part of management.

Names of Management:Muhammad Awais Safdar (CEO)

Muhammad Waqas Shabbir (HRM)

Sunnil Ahmar (Marketing Manager)

Rizwan Saddique (Finance Manager)

Mehboob Elahi (Assistant Marketing))

Adeed Ashraf (Labor Supervisor)

Additional Staff:Kehwa Makers

Convince Store Keepers

Sweepers

Management experience:Fresh Management.

Management Ability:We as a partner have good understanding, all of us are highly motivated and we have

the ability to face any kind of hard challenges of business, special thing in our partnership is

we all have done our master degree from same institute so good understanding is expected.


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4.Company Structure:Organizational Chart

Legal Structure:Kehwa Inn is a partnership firm and is legacy registered by (SECP) Security and

Exchange Commission of Pakistan. Partnership agreement is attached at the Appendix.

Note: (All designations appointed to partners are according to their capabilities and

willingness)


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Kehwa Inn

Partnership Agreement ofKehwa Inn

THIS PARTNERSHIP AGREEMENT is made this year 2010 December 13 day of Monday,between partners of Kehwa inn, members are;

Muhammad Awais Safdar, Muhammad Waqas Shabbir, Sunil Ahmar, Rizwan Ahmad,

Mehboob Elahi, Adeel Ashraf.

Explanatory StatementThe parties hereto desire to enter into the business of purchasing, acquiring, operating, leasing,owning and selling Kehwa through registered business KehwaInn, including but not limitedto that certain parcel of land, and all improvements constructed thereon, described as 1 KMRiawand road Lahore and engaging in any other lawful phase .In order to accomplish theiraforesaid desires, the parties hereto desire to join together in a general partnership under and

pursuant to the Uniform Partnership Act.

NOW THEREFORE, in consideration of their mutual promises, covenants, and agreements,and the Explanatory Statement, which Explanatory Statement is incorporated by reference

herein and made a substantive part of this Partnership Agreement, the parties hereto do herebypromise, covenant and agree as follows:Section 1. NameThe name of the Partnership shall be KehwaInn.

Section 2. Principal Place of BusinessThe principal office and place of business of the Partnership shall be located at 1 Km Riawandroad Lahore. The Partnership shall have such other or additional offices as the Partners may,

from time to time, determine in this Agreement.

Section 3. Business and Purpose3.1. The business and purposes of the Partnership are to acquire, hold, manage, operate,develop, sell and lease real property (the "Property"), or interest therein, including but notlimited to that certain parcel of land, and all improvements constructed thereon

3.2The Partnership may also do and engage in any and all other things and activities and haveall powers incident to the said acquisition, holding, management, operation, development, sale


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Kehwa Innand leasing of the Property, or any part or parts thereof, including, by way of illustration andnot by way of limitation, arranging for and delivering contracts of sale, deeds, leases, deeds oftrust, ground leases, mortgages, notes and other evidence of indebtedness, security agreements,and other security instruments; entering into agreements for the construction, design andmanagement of improvements; and doing all things reasonably incident to the development,management, leasing and sale of the Property.

Section 4. TermThe Partnership shall commence upon the date of this Agreement, as set forth above. Unlesssooner terminated pursuant to the further provisions of this Agreement, the Partnership shallcontinue until the close of business or until renewed.

Section 5. Capital Contribution5.1. The original capital contributions to the Partnership of each of the Partners shall be madeconcurrently with their respective execution, acknowledgement, sealing and delivery of this

Agreement in the following amounts set forth after their respective names:

Name Rs

Muhammad Awais Safdar 83334

Muhammad Waqas

Shabbir

83334

Sunnil Ahmar 83334Mehboob Elahi 83334Rizwan Ahmad 83334

Adeel Ashraf 83334

5.2. An individual capital account shall be maintained for each Partner. The capital account ofeach Partner shall consist of his or her original capital contribution, increased by (a) additionalcapital contributions made by him or her, (b) his or her share of Partnership profits, and

decreased by (i) distributions of such profits and capital to him or her, and (ii) his or her shareof Partnership losses.

Section 6. Profit and LossThe percentages of Partnership Rights and Partnership Interest of each of the Partners shall beequally distributed.

Section 7. Management of the Partnership Business


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Kehwa InnAll decisions respecting the management, operation and control of the Partnership business anddetermination made in accordance with the provisions of this Agreement shall be made only bytheCEO of the KehwaInn.

IN WITNESS WHEREOF, the parties hereunto set their hands and seals and acknowledgedthis Agreement as of the date first above written.

(1)WITNESS: ________________________________

NAME OF PARTNER: _________________________

DATE: ____________________________

(2)WITNESS: _________________________________

NAME OF PARTNER: _________________________

(3)WITNESS: ________________________________

NAME OF PARTNER: _________________________

(4)WITNESS: ________________________________

NAME OF PARTNER: _________________________

(5)WITNESS: ________________________________


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NAME OF PARTNER: _________________________

(6)WITNESS: ________________________________

NAME OF PARTNER: _________________________

DATE: ____________________________

5. Industry Analysis:Over view of Industry Environment

Industry environment is also called five forces model.

Rivalry

Threats ofnew

entrance

Bargaining power

of

Custimer

Threats ofsubsitutes

Bargainingpower of

supplier


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Kehwa Inn

Threats of new entrance:The first challenge which we face is existing competitors of our product KEHWA .

Existing Competitors of KEHWAINN are Tea Shops &Coffee Shops.

The second Barrier is Economic of Scale, there is hugemarket of restaurants that is

serving tea and coffee, to overcome this threat we need much capital to expand our

branches.

The third major challenge that we expect is the mind set of customers about Kehwa,

people usually think that Kehwa is only used by off age peoples so we accept this

challenge and working on a very different campaign, the motto of our campaignis feel

young craze because our target market is university students.

Bargaining Power of Supplier:If bargaining power of supplier is high it means there are some supplier which controls

the whole market according to their ownwish in this case its a barrier for new entrance but in

our case we have limited competitors but their bargaining power of supplier is high.

Bargaining power of Customer:According to our target market where we have very few competitors and our plus edge

product differentiation increase our bargaining power and decrease the customers bargaining

power.

Threats of substitutes Products:Our main substitutes are Tea & Coffee , almost 80 percent people like tea and

remaining use to take coffee and very few people use to take Kehwa in this case second problem


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Kehwa Innis time and cost as compared to tea and coffee Kehwa take much time and cost in this condition

we have to think strategically because if we increase prices people will switch to tea again.

Rivalry among Competitors:Firms are mutually dependent, if some business make strategy then related firms usually

adopt the same way with little bit difference. Competitive rivalry intensifies when a firm

competes against one another by improvingits market position. In KEHWAINN we are

working on the same principal.

Why Only Kehwa Inn???7 reasons to take our special Kehwa.

Quality Product

Different flavors

Completive Price

Specially for Students

Energy product with traditional touch

Available at your own university

It keeps you going on

6.Marketing Plan:Marketing Campaign:

Feasibility analysis:There are four areas of feasibility analysis:-


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Kehwa InnProduct feasibility analysis is been done by our marketing department and it is

concluded that our product is feasible for further proceeding, for this purpose we

have arranged a panel of experts from quality control department which have

already test our product and passed it.

The second area is market feasibility for this purpose we have followed the

market trends and collect all the initial information related to market and its

perfect for KehwaInnstalls in different universities have been arranged

which results a very good positive result.

Organization has been totally feasible for operations, all the necessary

formalities have been full filled by Kehwa Inn team.

Financial requirements have been managed and legal documentation have been

don.

Note: (ALL LEGAL DOCOMENTS ARE ATTACHED IN THE APPENDIX PORTION)

The Challenge:We have to change the perceptions of people that Kehwa is only used by pathans and

pakhtunsHot drink caf and local restaurants

Company AnalysisGoals Positive change in peoples perception about Kehwa, Financial

achievements, Brand Image, capture the market of Lahore within five years.Focus Customer Satisfaction, Quality, Taste and ServiceCulture Traditional desi with modern trendsStrengths Management, Ability, Strong Direct relations, Student Support

Weaknesses Capital & Experience

Customer Analysis


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Number 5 to 6 thousand Type Students and YouthDecision process Depends

Competitor AnalysisMarket position Normal Strengths Capital &Experience

Weaknesses New Ideas

Market Segmentation (Riawand Road Lahore Student area)

Description University AreaWhat they want Tea & CoffeeHow they use product dailySupport requirements Quality and Budgeted

Price sensitivity Average because some are quality conscious and some arerate.

The product decisions should consider the product's advantages and how they will be leveraged.Product decisions should include:

Brand name KehwaQuality Best

Scope of product line good


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Kehwa Inn

Pricing Strategy:Market Research of Kehwa Substitute prices:Product Price /Rs

Coffee 40-120 apx

Tea 15-50 apx

Kehwa cup 10-15 apx

Our simple Kehwa cup is available in Rs 15. This is the limited offer price of Kehwa cup we

are also introducing different flavors and dry fruits Kehwa that is available at 30 to 40 Rs.

So we are going with Product Differentiation strategy of priceDistribution Channels:

Initially we have caf at Riawand Road Lahore near University of Lahore. This is the

only channel at which our product will be available.

Promotions and Advertising:Promotions and advertising will be done through:

University Stalls on which we will have small music concerts and some game

activities.

Cable Advertising

Bill Boards


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Kehwa Inn3-D Add for Bill boards and News Paper:

7.Operational PlanThe operational plan is an essential component to your business plan and it tells the reviewerhow your going to get your product/service out to market. That is, how are you going to get

your product out of the production stage to the doorstep of you target customer.

I know, the operational plan may seem mundane but it will outline some very importantanswers to such fundamental questions such as:

Who is doing what?What are the day to day activities?How will the suppliers and vendors be used?


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Kehwa InnWho are the suppliers?What are the labor requirements?What are the sources of raw materials?

8.Financial PlansKehwa Inn has been started with the capital of Rs /-500000, this capital is generated by all

six partners all the partners invest equally and share will be distributed at the end of every

month.

Total capital 500000

Fixed assets 300000

Net working operating capital (NOWAC) 2000000

1styearRs

2ndyearRs

3rdyearRs

4th yearRs

5th yearRs

Revenue 600000 690000 793500 912522

1049403

Salaries 200000 230000 264500 304175

349801

Utility bills 60000 66000 72600 79860 87846

Fuel expanse 60000 66000 72600 79860 87846

Rent 100000 100000 100000 100000 100000

Furnish 80000 92000 105800 121670 139920

Depreciation 30000 60000 60000 60000 60000

No pat edit(1-t)63000

63000 68400 111240

150273 201591

C A 90000 103500 119025 136878

157410

C L 60000 69000 79350 91252 104940

NOWAC 30000 34500 39675 45627 52470


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Kehwa InnCHANGE IN

NOWAC170000 4500 5175 5952 6843

GFA 300000 300000 300000 300000 300000

FCF 1035900 123900 166065 204321 254748

Important Information (Assume)Revenue 600000 first year and grow 15% per year

Salaries expenses 200000 at first year and grow 15% following years

Utility bills 10% of revenue

Fuel expense also 10% of revenue

Rent is fix for all the five years that is 100000 per year

Furnish expenses 15% of revenue

C Current assets are 15% of revenue

Current liabilities are 10% of sales

Gross fixed assets are same for whole the 5 years

Total Depreciation= 270000

Total assets= 300000

Book value= 30000

At the end of 5 years we sell our assets at the cost of 900000 because now it is a going

concern.

Total capital gain =9, 00,000 - 300, 00

=8, 70,000

Now we will earn almost 8 lack and seventy Rs (8, 70,000) thousand rupees through

this five year project.


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9.AppendixLogo

Sloganfeel young craze

CV of CEO & HRMP.T.O

Kehwa Inn


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Kehwa Inn

kehwa hot spot final

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