Semester Long Report
Course Title
Entrepreneurial Leadership
Instructor
Mr Adeel Durvesh
Prepared By
Abdul Basit
Sohaib Sohail Siraj
Mirjan Humayun
Hani Ahmed
ToobaWasif
Page 1 of 18
Letter of Transmittal
Sir Adeel Durvesh,
Instructor Entrepreneurial Leadership,
Institute of Business Management,
Karachi
Dear Sir,
We are submitting you the project which was assigned to us during the spring
semester 2018. The primary aim of the project was to launch a new
entrepreneurial venture.
In order to achieve this objective, we implemented a pilot study and designed a
formal business plan for our idea of launching an ice-cream parlour.
Even though we are still in the process of learning, the project has allowed us to
better understand how ideas for a new business are generated and how we can
practically implement an idea to turn into a business opportunity.
We would appreciate that you go through the entire report and provide us with
your feedback to help us further improve our business plan.
Regards,
Abdul Basit
Sohaib Sohail Siraj
Mirjan Humayun
Hani Ahmed
Tooba Wasif
Page 2 of 18
Table of Contents
Executive summary ...............................................................................4
Company Overview ...............................................................................5
Mission................................................................................................5
Vision ..................................................................................................5
Product Portfolio.................................................................................5
The Market ............................................................................................6
Competition ...........................................................................................7
SWOT Analysis .....................................................................................8
Business Canvas model .........................................................................9
Lean Canvas Model .............................................................................12
Capital requirements............................................................................13
Financial Plan ......................................................................................14
Unique selling point/Competitive advantage ......................................16
Implementation plan ............................................................................17
Branding strategy ..............................................................................17
Sustainability plan ...............................................................................17
Team structure and Roles performed ..................................................18
Page 3 of 18
Executive summary
Ice Cream is a dish which is loved by people all over the world. In Pakistan,
people love to have ice-cream with friends and family. Without Ice Cream or a
desert, many people consider their meal in complete.
Considering how Ice-Cream is universally loved, we aim to capitalize on this
market opportunity by opening up a new Ice-Cream parlour and launching a
new dessert to present Ice-cream in a form which hasn’t been seen in the market
before. Our primary objective is to mesmerize the taste buds of the customers
and bring them together over a sweet treat.
Our primary unique selling point is the Ice-Cream nachos. The new product will
be a first of its kind in the market and will be the primary aspect that will
separate us from the current parlours in the market. Along with the nachos our
product portfolio will also include; Boba shakes, and live ice-cream and the
Nachos will be marketed as an exclusive product.
Our primary competition will include; Happy Rollies, Roll-Up’s and Iyshcleem
and Freshly Freeze. While all the competitors offer live Ice-cream and Waffles,
none of the competitors currently offer a dessert like Ice-Cream Nachos.
Due to the fact that our product is unique and new, we aim to pursue a price
skimming strategy. The total investment that we require for the project is PKR
540,000 to initiate the project. We aim to raise funds through our personal
savings and investors. Our business will follow a partnership model. All of the
profits and losses will be equally shared among the partners. In the long run, we
aim to make creamy delights a go to place for the masses, where friends and
family come together to enjoy a sweet treat.
According to our financial projections, we aim to make a profit of PKR
4,486,540 during the first year of operations. The following report contains a
detailed financial plan of our business along with our promotional strategy and
overall mission.
Page 4 of 18
Company Overview
Creamy delight’s is a partnership organisation with four partners. The primary
channel through which we aim to generate revenue is by starting our Ice-cream
parlour. At the start the organisation will have four main departments which
include; Marketing, Operations, Human resource and finance. Each of the
partners will be responsible for handling one of the departments. It is important
to note that in future we aim to expand by opening up branches in different parts
of Karachi. In long run, we aim to undertake expansion by opening up branches
in different parts of the country.
The business model we aim to adopt is a kiosk model. As part of our model we
will collaborate with ice-cream parlours initially to ensure that we manage to
cover our fixed costs. Later we aim to expand commercially and spread
throughout the country.
Mission
Our mission is to start an Ice-Cream parlour with the name of creamy delights.
Through our parlour, we aim to introduce the concept of Ice-cream parlour and
take advantage of the market opportunity. It is our objective to turn our parlour
in to a third place to bring together people over a sweet treat. At the same time,
we aim to create value for our investors and employees through our operations.
Vision
Our vision is to establish our parlour as a go to place for the masses. Through
our products, we aim to ensure that we consistently push the bar of innovation
and introduce new concepts which bring people together. In the long run, we
aim to create a culture of innovation and expand across different markets to take
advantage of more profitable business opportunities.
Product Portfolio
Our product portfolio includes; Ice cream Nachos, Rollup ice cream and
Shakes. In the long run, we aim to add other food products like Gelato, Scoop
Ice-cream, Waffle and Mocktails.
It is important to note that our primary focus will be Ice-cream Nachos, which
will act as our flagship product.
Page 5 of 18
The Market
Customers
Customers are the most important stakeholders of any business. They are the
primary reason why a business undertakes operations. Without a strong and
loyal customer base, it is impossible for any business to operate.
In the case of creamy delights, the primary market segment we aim to attract is
the millennial’s and desert loving audience. Initially, we will operate in the
Bahadrabad area and will target the residents of the area. Eventually we will
undertake expansion to increase our customer base. The primary reason we aim
to target the Millennial’s is because they like to try something new.
At the same time, Millennial’s especially the college and university going
crowds frequently go out with friends and families to different eateries. Thus,
targeting the millennial’s will allow us to generate sufficient revenues and
establish a strong customer base.
Suppliers
Before going on the suppliers, it is important to note that some of the raw
materials we require for our products include; milk, chocolates, fresh cream and
wafers.
It is important to note that we will buy our suppliers from Imtiaz and Makro as
both of the supermarkets offer items at wholesale prices. Additionally, we will
contact Nestle and Hershey’s to arrange supply of chocolates. Last but not the
least we will use the milk of Nurpur to ensure that we are able to maintain the
quality of our products while also maintaining our profit margins.
Competitors
The Ice-Cream industry is growing rapidly as people in Pakistan love to enjoy
deserts with their friendsand families. For this reason, there are a lot of players
which are already present in the market. Some of our direct competitors include;
Happy Rollies, Roll-Up’s and Iyshcleem and Freshly Freeze. It is important to
note that all of these organizations offer customers live ice-cream but none of
these organizations currently offer Ice-Cream Nachos to the customers.
Page 6 of 18
Distribution
When it comes to the distribution, it should be noted that initially, we aim to
follow a kiosk model. It is important to note that the primary reason, we don’t
want to directly rent out a shop is because we want to control our overhead
costs and at the same time, minimise the risk in case our business fails to
generate the desired amount of revenue. By starting our business operations
through a cart, we will be able to establish our customer base and will ensure
that by the time we move to a proper shop, we have enough customers to
maintain our profits.
Collaborations
It is important to note that we would have to collaborate with various partners in
order to ensure that we are able to increase our customer base and maximise our
revenues. First and foremost, we would have to connect with brands like Bogo,
Vouch 365 and Savyour. Additionally, we would have to collaborate with food
bloggers to increase the buzz for our products. Initially, we will collaborate with
Bro’s meet the world and Hungarist.
In this way, we aim to undertake the process of publicity for our organization to
increase awareness about our products and get the desired response from
prospective customers.
Competition
It is necessary to establish the fact that when it comes to Ice-cream Nachos,
currently we don’t face any competition in the market. However, there are a lot
of parlours in the city which offer roll up Ice-Creams. The following is a
detailed analysis of some of our direct competitors in the market;
Iyshcleem
It is important to note that Iyshcleem is the pioneer of live Ice-Cream. The
parlour was the first to offer roll-up ice-cream in the city of Karachi. The brand
was initially started in the area of Bahadrabad and since then has managed to
expand its scale of operations by opening up branches in other areas of the city.
The primary advantage of Iyshcleem revolves around the fact that the company
is a pioneer of live Ice-cream. However, it needs to be pointed out that
Page 7 of 18
Iyshcleem follows a franchising based model because of which they are unable
to maintain their quality across all branches.
Freshly Freeze
Freshly Freeze is another parlour which offers the customers live Ice-Cream.
The parlour is located in Dolmen Mall, Tariq Road, Karachi. According to our
analysis, the placement of the parlour has restricted its target audience because
of which the brand is unable to attract the attention of the masses. Recently,
they have shifted to Islamabad in an attempt to increase their customer base.
Roll Ups
Roll Up’s has also adopted the kiosk model and is located near Agha’s
supermarket. It needs to be pointed out that the primary strength of the brand is
that it offers multiple flavours however, despite operating for a year; the
organisation has been unable to expand its scale of operations.
Happy Rollies
The parlour initiated operations in Boat Basin Karachi in the year 2016. It is
important to note that Happy Rollies also aims to offer customers live Ice-cream
and owing to its placement, the company has been able to develop a favourable
position in the market.
Creamy Ice
The parlour is located in Federal B Area. It needs to be pointed out that Creamy
Ice has adopted a penetrative pricing strategy in order to attract the customers.
At the same time, the company heavily focuses on Facebook advertising in
order to attract customers.
SWOT Analysis
SWOT is a strategic analysis tool which helps a venture to evaluate its internal
strengths and weaknesses, along with its external opportunities and threats. The
following is a look at the SWOT analysis of our business idea;
Page 8 of 18
Strengths Weaknesses
•Variety in product portfolio •Teething problems initially
•Ice cream nachos hasn’t been launched by any •There is a chance that people might not be
other parlour before receptive to the new concept
•Innovative concept •High promotional costs
•Sustainable business plan •High fixed costs
•Room for expansion in future
SWOT
Opportunities Threats
•Ice-Cream Nachos is a new concept •High competition
•Expansion in other areas of Karachi •High investment costs
•Expansion in other cities of the country •There are a lot well established live Ice-cream
parlours
•Changing consumer trends
•Influence of external forces like political and
socio economic conditions
•Lower demand in winter seasons
Business Canvas model
KEY STAKEHOLDERS
• Suppliers: Milk, Sugars, Nachos & Machinery
• Owners
• Ice-cream makers (Technical workers)
• Distributors
• Sellers
• Investors
• Customers
• Ice-cream vendors
• Marketers
• Market researchers
Page 9 of 18
KEY RESOURCES
• Ingredient’s
• Machinery
• Ice cream maker
• Storage facilities
• Additional toppings
• Ice cream cart (stalls)
• Suppliers
• Utility bills
• Biscuits
• Marketing
KEY ACTIVITY
• Product development
• Product variation
• Marketing
• PR management
• Sales
• Training
• Financials
• Identifying raw materials
• Identifying sales strategy
• Identifying financials
VALUE PROPOSITION
• Workers/owners
• Revenue
• New market penetration
• New experience
• New product
• Experience
• Recognition
• Favorable customer equity
• Brand loyalty
• Word of mouth
Page 10 of 18
• Customers
• Enhanced variety/flavors
• Standard price
• Hygiene
• Quality
• Quantity
• Taste
• Additional toppings
CUSTOMER SEGMENTATION
• Taste-artificial/real fruits
• Budget-with/without add-ons
• Preferences-flavors/add-ons/without add-ons-with rollup/scoop ice-cream
• Age
• Geographically –location
• Availability-less competition-new market
• Serving size-small/medium/large
• Hygiene-sugar free
CUSTOMER RELATIONSHIP
• Vouchers
• Free delivery
• Discounts
• Quality
• Quantity
• Marketing-social media
• BTL activities
CHANNELS
• Pamphlets
• Brochures
• Social media
Page 11 of 18
Lean Canvas Model
PROBLEM UNFAIR ADVANTAGE UNIQUE VALUE
PROPSITION
• No new • limited competition • Customer service
concept/uniqueness • Unique/innovative idea • Customer equity • New market
• Hygiene • Own recipe penetration
• Ambience • • Favourable
• Sugar free for diabetic customer equity
patients KEY METRICS • Quality
• Lack of customization COST STRUCTURE • Quantity
• Expenses: sales • Taste
• Standee/ cart ratio • Brand loyalty
• Staff • Food cost to • Word of mouth
SOLUTION
• Marketing (paid promotions) total cost
• New idea • Vendors
• Standardized hygienic • Suppliers
procedure • Market researchers REVENUE STREAMS
• Providing ambience to • PKR: 270/serving
promote social gathering CHANNELS
• Special flavor’s for
diabetic patients. • Social media
• Unique blend of toppings • Brochures
and fruits for • pamphlets
customization CUSTOMER
SEGMENTATION
• All ages
• Maximum
affordability
Page 12 of 18
Capital requirements
Assets: Description PKR
Kiosk: FIRST OUTLET 90000
Pan Machine Which Will Make Live Rollup Icecream 150000
Branding PRINTING SOCAIL MARKETING 25000
Small Equipment: Small Fixtures For Usage 45000
Marketing Expense: Facebook, Alliance With Vouch, Bogo 50000
Rent Deposit: 3*30000 3 Months 90000
Rent First Month: 30000
Misc. Expenses: Petty Cash, Labour. Etc 25000
Stock: Inventory Etc 35000
Total: 540000
Page 13 of 18
Financial Plan
Forecasted income statement
(Next Page)
Page 14 of 18
INCOME PROJECTIONS STATEMENT YEAR: 2008
Replace the numbers in blue with your own. Do not mess with the formulas behind the black numbers.
Revenue Projected Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Annual Total
Total net sales (revenues) - 890,500 922,000 1,031,000 1,119,000 1,152,000 1,225,000 1,152,000 1,095,500 1,009,000 871,500 769,000 12,076,500
Costs of sales 376,050 399,295 412,900 458,750 493,890 506,100 547,450 514,890 493,355 456,820 390,180 345,610 5,395,290
Gross profit (376,050) 491,205 509,100 572,250 625,110 645,900 677,550 637,110 602,145 552,180 481,320 423,390 6,681,210
Formulas on lines above will fill from Sales Forecast sheet
Controllable (variable) expenses
Owner Draw * 300 300 400 300 250 1,550
Payroll expenses 85,000 85,000 85,000 85,000 85,000 85,000 85,000 85,000 85,000 85,000 85,000 85,000 1,020,000
Waiter Commission 40 40 40 120
Marketing ** 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 300,000
Electricity 25,000 25,000 27,000 29,000 31,000 33,000 34,000 36,000 33,000 32,500 32,000 31,500 369,000
Other expenses 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 144,000
Dues/Subscriptions -
Repairs & Maintenance -
Outside Services -
Purchases -
Telephone
Taxes -
Total controllable
expenses 147,000 147,000 149,000 151,040 153,300 155,300 156,440 158,300 155,250 154,540 154,000 153,500 1,834,670
Fixed expenses
Rent 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 360,000
Insurance
Total fixed expenses 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 360,000
Total expenses 177,000 177,000 179,000 181,040 183,300 185,300 186,440 188,300 185,250 184,540 184,000 183,500 2,194,670
Net profit (loss) (553,050) 314,205 330,100 391,210 441,810 460,600 491,110 448,810 416,895 367,640 297,320 239,890 4,486,540
Page 15 of 18
Unique selling point/Competitive advantage
In the current day and age, the business environment is extremely competitive.
For this reason, it wouldn’t be wrong to say that developing a unique selling
point is the pre requisite of success for any entrepreneurial venture.
A unique selling point acts as a competitive advantage for a venture and
separates the products of the organization from others in the market. Likewise,
the unique selling point of a venture is what attracts the prospective customers.
In our case, the primary aspect which separates our business from the
competition in the market is our product portfolio. It is important to note that
our product portfolio will include; live roll ice-creams, Boba Shakes and
waffles. However, our biggest differentiation point is the Ice-Cream Nachos.
The product is a new concept which we aim to introduce in the market. It is
worth mentioning that the product will be presented in a unique form and will
be promoted as a creamy delight exclusive. Ice-Cream Nachos will help
differentiate our parlour from other live ice-cream parlours like Isycleem,
Gelato and Creamello. In this way, we aim to implement the principles of
product differentiation in order to stay ahead of the competitors. At the same
time, launching an all new Ice-Cream Nachos will give us the first mover
advantage and the necessary buzz that we require at launch.
Market potential
Essentially, market potential refers to the total number of customer who will be
interested in our product. It reflects the total size of the market and the total
number of customers we can cater too. In our case, we have chosen the location
of Bahadrabad in order to first start our project.
The location that we have selected hosts 3000 people each day. Thus, our total
market potential is 3000 customers each day and 90000 customers each month.
Page 16 of 18
Implementation plan
As it has been pointed out repeatedly, we initially aim to start our parlour with
Kiosk model. We aim to continue on with the model for six months to a year
and once we manage to attract a respectable number of customers throughout
products, we will then shift to our own shop. The rationale for doing this is to
gather the initial response of the customers. At the same time, through our
strategy we aim to reduce our overheads in the initial months. Additionally,
starting operations through Kiosk model will allow us to ensure that we manage
reduce the risk of failure.
Branding strategy
We believe that the process of brand building is a marathon not a sprint. For this
reason, our long term objective is to create a brand identity which portrays
Creamy delights as a go to place for friends and families along with office
workers to have a good time. Thus, our brand identity will be to bring people
together an aspect which will be communicated through all our communications
on social media, brand activations and print advertisements. Our philosophy is
that we aim to generate revenue overnight and build a brand over time.
Sustainability plan
Step1-What needs to be sustained?
Creamy Delights intends to sustain its customer base and market share. Since
our main product is Ice cream Nachos and there is little to no competition for it
thus our plan is to retain that market share in the future as it is currently a niche
one.
Our basic strategy to sustain our customer base is through progressive
innovation. Instead of growing comfortable and letting our product become
stagnant we will keep on introducing new flavors and new presentation to stay
relevant in the minds of our consumers.
Step2-What resources are required?
The main resource needed to sustain the project obviously is the skills of the
human resource in creating the ice cream nachos and making sure new flavors
and style of presentation are implemented. Ice cream machines and other
Page 17 of 18
technology play an important part in the sustainability of the project. Capital in
monetary terms is extremely necessary in ensuring the project’s sustainability as
none of the other resources would be available if there’s a lack of it.
Step3-Build foundation for sustainability
Fundraising is the most important factor in ensuring sustainability. Half of the
capital is to be contributed through the owners and the other half shall be
contributed by the investors. The mission is to offer Ice Cream nachos initially
and then move onto Roll up ice creams and shakes and later aim to include
other products like Gelato, Scoop ice cream, waffle and mock tails etc. Our aim
is to provide taste and satisfaction for their money worth through our product
and strongly believe in our tag line “Mesmerize your taste buds.”
Step 4-Build a customer base
Last but not the least, it has been mentioned previously that customers are
perhaps the most important part of any organization. Hence, in order to achieve
sustainability, it is necessary for us to build and establish a strong customer
base.
Team structure and Roles performed
Sohaib Sohail
CEO
Finance Manager
Hani Ahmed:
Abdul Basit: Tooba Wasif: Mirjan Humayun:
Manager public
Marketing manager HR manager Operations manager
relations
Page 18 of 18
