marketing strategies of wajeeh`s cafe

MARKETING STRATEGIES OF WAJEEH`S CAFE

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Submitted to: Mam Saba Sattar

Submitted by: Syed Wajeeh Husain

Roll no : 236 R1

BBA (HONS) 2011-2015

project: Wajeeh`s caf (The marketing strategy)

Department Of Management Sciences

RANGERS CAMPUS


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Contents Acknowledgement ....................................................................................................................................... 5

INTRODUCTION OF THE COMPANY ............................................................................................................. 6

MISSON: ........................................................................................................................................................ 7

VISION: .......................................................................................................................................................... 7

Key to success ............................................................................................................................................... 7

ENVIRONMNETAL ANALYSIS: ....................................................................................................................... 8

Political factors:......................................................................................................................................... 8

Economic Factors ...................................................................................................................................... 9

Social Factors ............................................................................................................................................ 9

Technological Factors.............................................................................................................................. 10

Customer analysis- STP Analysis ................................................................................................................ 10

Segmentation: ......................................................................................................................................... 10

Targeting: ................................................................................................................................................ 11

Positioning: ............................................................................................................................................. 12

Competitive analysis: ................................................................................................................................. 12

SWOT ANALYSIS: .................................................................................................................................... 13

Strengths: ............................................................................................................................................ 13

Weaknesses: ....................................................................................................................................... 14

Opportunities: ..................................................................................................................................... 14

Threats: ............................................................................................................................................... 14

Porter`s five forces analysis: ...................................................................................................................... 15

Threats of New Entrants ......................................................................................................................... 16

Threat of Substitutes: ............................................................................................................................. 16

Intensity of rivalry among established firms........................................................................................... 17

Bargaining power of Customers: ............................................................................................................ 17

Bargaining power of suppliers: ............................................................................................................... 17

Marketing mix ............................................................................................................................................ 18

Product: ................................................................................................................................................... 18

Place: ....................................................................................................................................................... 18

Price ........................................................................................................................................................ 19

Packaging: ............................................................................................................................................... 19

Channel analysis: ........................................................................................................................................ 19


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Sales strategy: ............................................................................................................................................ 20

Financial plan .............................................................................................................................................. 21

Break even analysis Profit and loss. ........................................................................................................ 21

Important assumptions .............................................................................................................................. 22

Conclusion .................................................................................................................................................. 22


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The Exordium

In the Name of Allah the Compassionate the Merciful

Praise to Allah,

Lord of the creation,

The Compassionate,

The Merciful,

The King of the judgment day! You alone.

We pray, and to you alone

We pray for help, guide us to straight path, the path

Of those whom you have favored, not neither of

Those who have incurred your wrath, nor of those

Who gone astray.

AL QURAN


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Acknowledgement

One of the most pleasant parts of writing a report or any presentation is the

opportunity to thank those who have contributed to your efforts. Unfortunately,

the list of expressions of thanks no matter how extensive is always incomplete

and inadequate. This acknowledgment is no exceptions.

First of all we are thankful to Almighty Allah who gave us the courage to complete

this task and to our resource person Miss SABA SATTAR who stood behind us

whenever we needed her guidance and support. Her unflagging patience and

outstanding capacity work made this report possible. We also admire the efforts

of our other teachers and advisors and all other people who helped us in this

report. And yes there are many others whom we are not able to mention the

names but we really appreciate the cooperation and help provided by them. We

will remember you all.

THANKS


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WAJEEH`S CAF & FAST FOOD RESTURANT

INTRODUCTION OF THE COMPANY

We are pleased to announce that we have just opened a new Caf in Bahawalpur

near Noor Mahal namely WAJEEH`S CAF.

Eating at Wajeeh`s caf is targeted to corporate executives, family, dine out and

food change lovers to satisfy their food enjoyment needs and wants with a unique

arrays of farm fresh foods at the heart of Bahawalpur for 24 hours at a value added

affordable price

We have a wide variety of chicken items mainly burgers and Pizzas. Coffee, shakes,

ice creams and desserts are also available that will surely suit your taste.


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MISSON:

Our restaurant will be an inspiring one, combining an eclectic atmosphere with

excellent and interesting food.

Our main mission are as follows:

Have a great food selection.

Efficient and superior customer service.

Because customer satisfaction is our Prime objective.

Employee welfare, participation and training are equally important to our

success.

VISION:

TO BE THE MOST LOVED AND RESPECTABLE FOOD CHAIN OF PAKISTAN

Key to success

Create a unique, innovative, entertaining menu.

We want to be on the safe side of the business.

Sell the products that are of the highest quality.

Provide 100% satisfaction to our customers.


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Encourage the two most important values

Brand & Image

Promote good values of culture and business philosophy.

ENVIRONMNETAL ANALYSIS:

PEST analysis is a valuable while analyzing external environment where a business

is conducted or where an organization is planning to start a business (Henry, 2008).

This section studies the environmental factors that have an impact on operation of

Wajeeh`s caf.

Political factors:

Political forces have a direct impact on any business. Halal issue is very important

in Pakistan. Government always concern of Halal issue of the food in the country.

The word Halal came from an Arabic word which means lawful. Actions, food &

drinks and things that are allowed by Shariah law is called Halal and can be safely

use or consume by Muslims (Halal Definition 2007). So, we have taken a HALAL

food certification from the government of Pakistan.

The other major problems are the tax rate regulations which can make us difficult

to maintain our prices and strikes or road blockage that can cause delay in supply.


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Economic Factors

Economic Growth/Drop

Economic rate is very important in doing business. It will affect the currency

exchange rate in Pakistan which impacts on businesses costs and operations. When

come to outsourcing currency is a determination of companys success. If there is

positive growth in economy, that means businesses are doing great in the market.

So the profits could be low as poor economy of Pakistan.

Buying power of people is low here in Pakistan so we have set very economical

prices for our foods.

Economic growth is adversely affected by the increasing crime rates and terrorism

in Pakistan but we have started our business from Bahawalpur which is considered

to be a safe place in Pakistan.

Interest rate

Interest rate is the rate charged or paid for the use of money and usually not a fixed

rate. It is normal that a company borrows money from the bank. So if there is any

change in the interest rate, it will somehow affect debt repayment and also the

incentive to borrow. Little changes in the interest rate will affects the operating

profit of Wajeeh`s cafe and the debt ratio.

Various macroeconomic factors such as inflation and labor price would impact

operation of Wajeeh`s caf.

Social Factors

Culture

Culture refers to the way people live their life. Every country has different culture.

The way how Pakistani perceived food is changing from the past till present. People

now a days tend to look at the quality of food. This is a change from past behavior..

All fast food items are considered as unhealthy as they increase fats. But we are

trying to provide our customers healthy and clean food that would be accepted by

everyone


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Education

The population in Pakistan started to improve their educational level. People are

getting smarter by increasing in literacy rate.

Technological Factors

Improvement of internet uses

The uses of internet have grown more and even shopping is done online. It is so

convenient that enable businesses to operate in the internet world due to

increasing of computer users. For instance, Wajeeh`s cafe website -

http://www.wajeehscafe.com.pk my provide all the information about them and

their products. We have also provided a facility to book your orders online.

Latest machines and new processes:

New machines and processes impact the manufacturing operation. Adoption of

new machinery allows company to manufacture more efficiently, with better

quality and in greater quantity.

Customer analysis- STP Analysis

This section illustrate how our company views its customers and the way it design

the consumer strategy. Customer analysis is done through segmentation, targeting,

positioning

Segmentation:

The process of dividing a potential market into distinct subsets of consumers and

selecting one or more segments as a target market to be reached with a distinct

marketing mix.

Common Bases for Segmentation:

1. Geographic

2. Demographic

3. Psychographic

4. Behavioral


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Geographic:

The division of a total potential market into smaller subgroups on the basis of

geographic variables (e.g., region, state, or city)

Our geographic segments will be:

Model town A B & C .

Cantt and hashmi gardens

Circular road and trust colony

Commercial areas and etc

Demographic:

Demographic segmentation is dividing the market according to age, gender,

occupation, education, religion, income, nationality, social class, race, family

lifecycle.

Each person has different taste. Teenagers like spicy foods while aged like normal

food. We have made a special segment for children under age 12. Family lounge is

separate for family people so that they can feel comfortable in dinning.

Psychographic:

Psychographic segmentation is dividing the market according to social class, life

style and personality.

Behavioral:

Market segmentation is done according to the occasions, benefits, user status,

loyalty status and attitude towards product.

Targeting:

WAJEEH`S CAF target different segments with different strategies. Primary market

of our caf is the younger people in the age bracket 12 to 35 with people from 35

to 65 and children from 4 to 12 comprising of secondary market.

Our major target areas are cantt, Hashmi gardens and model Town A.


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We target mostly middle, upper middle and executive class. Special discounts are

available for members. For health conscious people fresh pure juices are also

available.

Behaviorally we target on occasions like birthdays, Eids, meetings, get togethers or

any other occasions.

Positioning:

For a product to occupy a clear, distinctive and desirable place relative to

Competing products in the minds of target consumer.

In WAJEEH`S CAF feedback is taken from the customer in order to know the

customer demands and then improvements are made in products.

Wajeeh`s cafe focuses on pure and fresh food in order to create a distinct and clear

position in the minds of customers Wajeeh`s caf has a strong brand name and

they are leading the market in fried chicken as well as in shakes and pastries.

Competitive analysis:

This section includes company`s internal strengths and weakness and external

opportunities and threads


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SWOT ANALYSIS:

A technique that enables a group or individual to move from everyday problems

and traditional strategies to a fresh prospective.

SWOT analysis looks at your strengths and weaknesses, and the opportunities and

threats your business faces.

The SWOT Analysis framework is a very important and useful tool to use in

marketing Management and other business applications

As a basic tool its mastery is a fundamental requirement for the marketer,

entrepreneur or business person.

A clear understanding of SWOT is required for business majors.

Strengths: STRENGTHS are the Characteristics of the business or a team that give it an

advantage over others in the industry.

Wajeeh`s caf strengths are as follows:

Delicious and well liked recipes.

We provide our customers the best and delicious taste and our recipes are unique.

Economical prices

We offers our products at very economical prices with a great taste.

Quality products

We provide best quality foods to our customers.

Huge parking area

We have a large parking area for our customers and employees vehicles.

Safe and sound place:

We have well trained security guards and CCTV cameras for safety.

Healthy and clean environment

Providing our customers the healthy and clean environment is our first priority.


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Weaknesses: Weaknesses are the factors which do not meet the standards we feel they should

meet. However, weaknesses are controllable. They must be minimized and

eliminated.

Wajeeh`s caf weaknesses are:

Low marketing budget

We have a low budget for our marketing related programs.

Negative publicity arises as a new entrance

As we are new to this market we are facing problems in creating publicity.

Well settled competitors

Our competitors are well experienced and are settled.

Opportunities: Chances to make greater profits in the environment - External attractive factors

that represent the reason for an organization to exist & develop.

New food taste with different crust sizes and flavors.

We have an opportunity to introduce a new taste with different delicious flavors.

Fast home delivery

We have the best opportunity to provide our customers foods at their doorstep

anywhere in the city within just 25 minutes.

Threats: External elements in the environment that could cause trouble for the business -

External factors, beyond an organizations control.

Threat from other competitors

There are a lot of other competitors that provides the same products are the major

threats for Wajeeh`s cafe


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Health conscious people.

Health conscious people do not prefer to eat outside food. Moreover pizzas and

burger are considered to be as a junk food

The rising prices of special ingredients like chicken, cheese etc, used in foods

Prices of raw material and other items are increasing day by day that make us

difficult to maintain our prices.

Porter`s five forces analysis: Porters five forces help to identify the key structural factors determining an

industrys competitive position in the market and its profitability. They highlight the

strengths, weaknesses opportunities and threats along with their significance of

the industry. Analysis helps to understand the current competitive position the

industry occupies, animates positioning and clarifies areas of improvement. It will

also help determine intensity of industry competition and the forces impacting

strategy formulation. The following factors defines the competitive landscape for

the Wajeeh`s caf.


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Threats of New Entrants

The easier it is for new companies to enter the industry, the more cutthroat

competition there will be.

The threat of new entrants in the fast food industry is high because there are no

legal barriers. The economies of scale and the access of the distribution are the

major barriers that firms face in the industry. Firms must spend a large amount of

capital on advertising and marketing in order to enjoy successful existence and long

life of a fast food outlet.

Large established companies with strong brand names such as McDonalds make it

more difficult to enter the market because new entrants are faced with price

competition from existing chain restaurants. But here in Bahawalpur there is no

such big chains so there will always be a threats of entering well settled brand like

McDonalds, KFC, Starbucks or Gloria jeans caf.

Threat of Substitutes:

Threats of Substitute in the Porters theory actually means goods and services that

does similar functions

ALMAIDA, ZENZIBAR, CHICKEN COTTAGE, DATA, VICTORIA LOUNGE etc. are the

brands in Bahawalpur that make the substitutes or similar products like Wajeeh`s

caf. So it will always be a risk of losing customers, or loss of sales

Wajeeh`s caf has found another alternatives to reduce the threat of substitutes

products by providing caf a.m. where they are operating in the morning to provide

breakfast for customers.

Other than that, we also provide free high speed wifi for our consumer who eat in

our caf. This will attract and also make the customer comfortable since they can

easily surf the internet. Wajeeh`s caf is also open for 24 hours.

This will ease the customer who is starving at the late of night to find some food.

Wajeeh`s caf also provides drive thru service to those who are rushing.

Porter recommends that by doing product quality improvement, marketing, R&D

and product distribution, an industry can improve its collective position against the

substitute.


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Intensity of rivalry among established firms

Intensity of rivalry means how many close competitors exist in the industry and

what are the sizes of your close competitors?

In Bahawalpur fast food industry, Almaida is ranked as the most favorite fast food

in Bahawalpur and follows by zenzibar and chicken cottage.

And there is also one caf namely Victoria lounge, due to which we can have to face

a great rivalry but we are the only company in Bahawalpur who offer our customer

with fast food and caf items inside a single roof.

To minimize the rivalry Wajeeh`s caf has implemented loyalty program to attract

its consumers attention to their brand. We have provided our customers a

membership card. The card is useful to obtain a discount in Wajeeh`s caf.

Bargaining power of Customers:

A lot of food restaurants have opened here in Bahawalpur which have made a high

bargaining power of customers. A customer have a lot of choice they can go to any

restaurant. It also makes the loyal and potential customer to decline and this causes

a big loss to any company.

Customer can go to any fast food restaurants that offers more affordable price

especially to students which require a lot of money to survive.so to attract our

consumers, we have set very economical prices and give a discount on the products

to the consumers.

Bargaining power of suppliers:

The presence of powerful suppliers reduce the profit potential in an industry.

Suppliers increase competition within an industry by threatening to raise prices or

reduce the quality of goods and services.

There are a very few suppliers available for Wajeeh`s cafe raw materials. We cannot

easily switch our supplier to another supplier so they can charge high prices

Suppliers available for Wajeeh`s caf are:

K&NS

Menu

Sufi chicken


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Due to few suppliers we have to pay heavy rates to K&Ns

Marketing mix Marketing mix is putting the right product in the right place, at the right price, at

the right time.

The marketing mix are

Product

Place

Price

Promotion

Packaging

Product:

Product is anything that can be offered to a market to satisfy the needs and wants

of the customers

Wajeeh`s caf places considerable emphasis on developing a menu which

customers want. Market research establishes exactly what this is. However,

customers requirements change over time. In order to meet these changes,

wajeehs has introduced new products and phased out old ones, and will continue

to do so

Our main products are burger pizza chicken items like nuggets hot shots wings etc,

desserts and shakes.

Place:

Place, as an element of the marketing mix, is not just about the physical location or

distribution points for products. It encompasses the management of a range of

processes involved in bringing products to the end consumer. Drive in and drive

through options make Wajeeh`s caf products further convenient to the

consumers. Moreover noor mahal road is easily accessible to everyone within the

city. The theme behind choosing this location is the availability of large area.


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Price:

The customers perception of value is an important determinant of the price

charged. Customers draw their own mental picture of what a product is worth. A

product is more than a physical item, it also has psychological connotations for the

customer. The danger of using low price as a marketing tool is that the customer

may feel that quality is being compromised. It is important when deciding on price

to be fully aware of the brand and its integrity.

So we have set very economical prices for our products

Zinger deal is only for rs 220 where as it is of rs 260 at almaida

Packaging:

Different packing is used for different products

For chicken items Paper packaging is used that helps in keeping the chicken Crip by

wicking away excess moisture as well as a polyester box which keeps the product

hot

For shakes we use fiber glasses containing our logo.

Channel analysis: Communication (promotion)

We are using every medium available for communication to give awareness to the

public.

Our marketing media will be as follows:

Billboard advertisement.

We have placed the billboards at the prime lactation of Bahawalpur like Saraiki

chowk, fawara chowk and university chowk


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Distribution of pamphlets.

we are distributing our caf`s pamphlets door to door.

Advertisement in local newspaper.

We are giving our advertisement adds on newspapers like jung, dawn, dunia etc

Advertorial on local cable channel.

We are giving our company`s add on cable networks. Our adds will also be run on

star plus and sony tv through our local cable

Sponsorship in the University.

We have sponsored the marketing event of DMS

Banners and small posters in the sectors

We have placed our banners and posters at every 3rd pole of circular road,

university road and noor mahal road.

Online advertisement via social media like Facebook and thorough own

website.

We have made our website thorough which customers will be able to place their

orders as well as we have a Facebook page (facebook.com/Wajeehcafe ) we are

giving quizzes and games to our customers and the winner will get exciting

prizes and discounts on our products.

Sales strategy: Our sales strategy requires consistently high quality food service, speed and

atmosphere. We can accomplish this by:

Hiring employees who genuinely enjoy their jobs.

Continually assessing the quality of all aspects mentioned above.

Interacting with our customers personally, so they know that their feedback

goes directly to owners.

Evaluating food choices for popularity.

Management summary


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Owner (restaurant manager)

Operations manager.

Finance manager.

Marketing manager.

Supply manager.

Legal advisor.

Chartered accountant.

Inventory manager.

Cashier cum receptionist.

Financial plan

Financial plan Restaurants financial model is based on a business concept to

plan for the worst, but manage for the best. Restaurants financial plan will

include: Important assumptions. Risk analysis Break even analysis Profit and loss

statement Cash flow statement Balance sheet

Break even analysis Profit and loss.

Fixed and Variable Cost:

Restaurant Hiring Expenses (Advance and Rent) =10, 00,000 and 1, 00,000.

Salaries to the kitchen team = 1, 50,000.

Interior and Furniture Cost (20 tables) = 15, 00,000.

Appliances and tools = 4, 00,000.

Documentation (insurance, permits etc.) = 1, 50,000.

Raw materials needed = 40,000.

Cost Incurred For Grand Opening = 5, 00,000.

Cost incurred in marketing = 4, 00,000.


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Cash in hand = 1, 00,000.

The total fixed cost = 43.4 lacks

Maintenance Cost (monthly) = 3.0 lacks

Monthly sales = 8, 57,142.

Marketing include 15% of sales in first 3 months and then 7 % of sales.

Monthly profit for first 3 months = 2.42 lacks per month

After 3 months = 2, 85,714 lacs

With this sales we can reach B.E.P at 16 months (1.3 years)

Important assumptions

Economy

Business growth

Annual growth rate percentage

Seasonal sales variance

Industry & start-up

Pricing & cost control

Cost control

Inventory turnover and accounts payable

Conclusion One may dream of gleaming marble counters, a top notch kitchen, and a prime

downtown location, but starting small can often be the best first step into fast food

restaurant ownership. Thats the reason we follow the agenda. Not only will it give

us a view of the basic fundamentals that apply to the business, but it also requires

less capital and therefore we can deal with the less risk.

marketing strategies of wajeeh`s cafe

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