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Concept Statement
Game is on...
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ALLY SPORTS CAFE 2011
Healthy food
Sports encouragement in youth
Healthy activity time spending
Matches will be watched with friends and have discussions on that
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ALLY SPORTS CAFE 2011
Products
The Warehouse will provide a first-class delivery service of quality food and cold beverage
related supplies, including whole bean or ground coffee, flavor syrups, jet teas, fruit smoothies,
bubble teas, concentrated milk, fresh baked goods and assorted paper supplies. Our services
will include invaluable trade resources, effective promotional programs, custom-designed
marketing material, informative monthly newsletters, training and product demonstrations, as
well as information on the latest market trends in the coffee/specialty sports drinks beverage
industry.
PRODUCT DESCRIPTION
The Warehouse will carry a variety of quality products that will enable us to provide full service
delivery to healthy food for sportsman stands and coffee houses. Our underlying philosophy in
selecting products is to choose lines that will bring consistent quality, competitive prices, and
product satisfaction to our customers.
SERVICE DESCRIPTION
An important component of our business is not just our products, but our service. In addition
our full service delivery, customer choice based on priority.
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LETTER: 14
Design: 8 letters in slogan written in black colour in which first and fifth and
seventh letter in upper case and remaining are in lower case.
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VISION STATEMENT
Our vision is to recognize as the leading business providing sports activities with good food for
all the people.
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OPPORTUNITY
Whenever any individual thinks to visit a cafe, step into the market has to bargain for
the price, quality of the product but even then when comes home he/she is not satisfied with
the product. Ally sports cafe now giving a satisfaction to customers that we have a quality food
and healthy drinks in cafe at low cost. We will also call the cricket stars, hockey stars in our cafe
to sit in the audience especially in big event matches like world cup and give their comments
and opinion on match. People will come in our cafe to watch their hero and enjoy the match
with them.
3. Food
In ALLY SPORTS CAFE where only healthy foods will be available like Fruit juices, snacks,
energy drinks and many more these type of foods in different flavours.
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Coffee is the second largest commodity market next to oil, and growth is expected to continue
at a strong pace for the foreseeable future and with coffee we are offering a sports activities,
sports health conscious drinks, food and snacks with the separate area of every sports in café.
The specialty beverage industry is growing at an equally strong pace, with sales growth in some
categories projected to grow at rates of 40% per year.
This growth offers excellent opportunities for new companies to enter this market, and we are
excited about the possibilities.
Market Segmentation
The coffee, special sports food and sports drinks beverage industry is divided into several
segments. Consumers who enjoy these products purchase drinks at restaurants, coffee houses,
sports venues, drive-thru espresso stands, and even inside other retail establishments that
might feature an independent beverage stand.
We are targeting youth first and then our target market will be old agers who visit our café
early in the morning and have a cup of coffee or healthy drink and enjoy the chess or anything
related to sports or even newspaper. Targeting kids as well with the gaming zone in the café
and also have an offer for kids who with their parents take food free for kids on Sunday. It’s an
offer which is not offering in Pakistan cafes.
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Sports serve as an excellent physical exercise. Those who play sports have a more positive body
image than those who do not and in our cafe with sports activities we are offering food and
juices for good health. Our ASC will also involve people into good side of sports it prevents drug
addicts persons from drugs so it will economically good. Playing sports often involves physical
activities like running, jumping and stretching and moreover a constructive expenditure of
energy. Playing sports since an early age strengthens the bones and muscles and tones one’s
body. Thus sports provide the body with a complete exercise.
A brief discussion of the potential of sport to stimulate local development through local sport events,
producing low-cost and affordable sporting goods and through energy or health drinks for sports man in
our cafe.
An overview of the potential of sport to equip young people and adults with skills that are useful for
employment ‘Core’ skills include those that are directly associated with coaching and sport
management. ‘Soft’ skills include the skills and values that are learned through sport, such as:
cooperation, leadership, respect for others, knowing how to win and lose, knowing how to
manage competition, etc.
MANAGEMENT TEAM
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These are the following members of management team in ALLY SPORTS CAFE
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Business Model
Delivery to customer
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Firstly, we generate awareness and creating interest in people through display centre’s.
In second step, we will forecast the demand.
In the third step, get right for live matches
In the fourth step, integrate all the segments.
In the fifth step, we will deliver the services and products to our customers.
Our customers can give feedback on our website.
Strategic assets
These are the most important assets of our organization. Our strategic assets are
Quality work
Affordable prices
Registered brand.
Convenient location in Lahore.
Professional sportsman and workers
Unique design for sports activities
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INDUSTRY ANALYSIS
The economy of Pakistan has been performing not well in recent years. Despite higher energy
prices and natural climates. The growth momentum that Pakistan has sustained for the last four
years is underpinned by dynamism in industry, agriculture and services.
The number of cafes in the organized sector in Pakistan is expected to rapidly increase
as a result of the changes in demographic and economic factors which are having a significant
impact on the restaurant industry in Pakistan. Increasing urbanization and rising disposable
incomes are other factors which show greater promise for the services sector.
The trend of eating out has significantly increased in recent years and it has evolved into
a popular culture. Cafe owners and operators are working to understand and respond to the
preferences and expectations of Generation X and the Millennial Generation. Doing so requires
that cafe re-think their menu offerings, procurement patterns, technology, training, service,
and marketing. A cafe will only be successful if it is able to cater to the huge, unique market of
young consumers which makes up about 30% of the total population. Market conditions in the
area have a significant impact on the profitability of a cafe. In this case, the future outlook
remains positive as long as the market needs are met and menus are affordable.
In terms of culinary trends, there is the popularity of health foods, use of fresh and
authentic ingredients, expansion of quick service, and acceptance of new fusion concepts,
restaurants with a focus on entertainment, and ethnic and regional cuisine cafes and
establishing of the chef entrepreneur. Many multi national chains have adapted their recipes to
the taste buds of Pakistani consumers and made their offerings spicier.
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The Pakistani economy is becoming increasingly service-oriented, and over the past several
decades, the foodservice industries that offer the highest levels of convenience have been
rewarded with strong sales growth. In the face of rising population, incomes and increasingly
hectic work schedules, a nearly insatiable demand for convenience will continue to drive
restaurant sales. The value of consumer time, as well as the demand for consistent, high-quality
food products, will continue to shape the food industry. The role of convenience in this dietary
shift cannot be over-emphasized, and the future growth of the rest of the foodservice industry
will be driven in large part by its ability to find new ways to save consumers’ time. So with this
future in industry of food ALLY SPORTS CAFE have a excellent chance to go over the head.
TARGETED MARKET
The Market
The target market for ALLY SPORTS CAFE is essentially cricket fans, football fans, belonging to
the upper middle and higher income classes. The target age group is between 17 and 35 years.
It is located in an area that attracts most of their evenings out.
Our customer base will come from the following segments:
Football fans belonging to higher income groups from all over the city
Students (16 to 24 years)
Tourists
Offices in the vicinity
The concept and product image of ALLY SPORTS CAFE will attract 3 different customer profiles:
Those cricket and football enthusiasts who want to share their passion
Those who want to do more than just eat out
The curious and the young at heart
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The fast food market is growing rapidly in Karachi and Lahore with the changing
lifestyles of not just the elite but a cross section of society. The growth in expenditure on fast
food has been tremendous and will continue as the demand for convenient meals is ever
growing, which is seen in the mushrooming of cafes catering to all income groups.
The expanding purchasing power of the growing middle class in Lahore has allowed
them to spend an increasing amount on leisure activities. The population dynamics also favour
our idea, given that the proportion of people in our target age group i.e. the youth is expected
to increase in proportion over the next decade. The rapid increase in employment rates for
both males and females in the age group 20-29 also support our assumptions about increasing
customer base each year.
The idea of a cafe entirely dedicated to sport viewing is a new concept in this city. Thus
we have no direct competitors in terms of the exact experience offered. However there are
many restaurants or cafe that do arrange viewings of major sporting events and popular
matches such as the T20 Cricket World Cup or the Football World Cup.
These and other themed restaurants or cafes are the ones we will view as our primary
competitors e.g. Fashion Café Coffee, Café Zouk, etc. Secondary competitors will be
restaurants that are alternatives for eating out for our target market e.g. Roasters, Espresso,
Gloria jeans , Jammin java etc.
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There are over 20 restaurants on MM ALAM ROAD approximately with at least 5 others
in the DHA area. Although this presents an obvious challenge in terms of market share, it also
indicates the presence of a large, strong potential. The newest competitors have made their
successful entry based on an innovative concept or novelty. Capitalizing on an increasingly
popular global trend of theme restaurants, ALLY SPORTS CAFE! Will offer an innovative product
in a familiar style at a competitive price.
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Porter`s Model:
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Threat of new entrants is high in those industries where the profit margins are high. Profit
margins in this market are high so the threat of new entrants is high.
Threat of substitute
Substitute for our products are available in the market but not easily. There is no cafe who is
offering sports activities but there are cafes who shows matches on big screens in cafe
relatively similar products with special events organizing of sports but in their cafes there is no
sports activity.
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BCG Matrix:
The BCG matrix shows that, the market share of our business is low, because people are now
properly aware of our product. But, the growth rate of our business is very high due to its
unique business model, importance in teenagers and youngsters. In near future our business
can be lie in the star, cash cow because there is no one running this industry in this way.
High
Market Growth
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1. STAR
Stars generate large amounts of cash because of their strong relative market share, but also
consume large amounts of cash because of their high growth rate; therefore the cash in each
direction approximately nets out. If a star can maintain its large market share, it will become a
cash cow when the market growth rate declines. The portfolio of a diversified company always
should have stars that will become the next cash cows and ensure future cash generation.
2. CASH COW:
As leaders in a mature market, cash cows exhibit a return on assets that is greater than the
market growth rate, and thus generate more cash than they consume. Such business units
should be “milked", extracting the profits and investing as little cash as possible
3. DOG:
Dogs have low market share and a low growth rate and thus neither generate nor consume
large amount of cash. However, dogs are cash traps because of the money tied up in a business
that has little potential. Such businesses are candidates’ for divestiture.
4. QUESTION MARK:
Question marks are growing rapidly and thus consume large amounts of cash, but because they
have low market shares they do not generate much cash. The result is large net cash
consumption. A question mark (also known as a "problem child") has the potential to gain
market share and become a star, and eventually a cash cow when the market growth slows.
Our ALLY SPORTS CAFE is in now question mark in start of the business.
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PEST Analysis:
PEST Analysis is use to understanding "Big Picture" Forces of Change. PEST Analysis is a simple,
useful and widely-used tool that helps you understand the "big picture" of your
Political environment,
Economic environment,
Socio-Cultural environment
Technological environment.
As such, it is used by business leaders worldwide to build their vision of the future.
It is important for these reasons:
First, by making effective use of PEST Analysis, you ensure that what you are
doing is aligned positively with the powerful forces of change that are affecting
our world. By taking advantage of change, you are much more likely to be
successful than if your activities oppose it
Second, good use of PEST Analysis helps you avoid taking action that is doomed to
failure from the outset, for reasons beyond your control;
Third, PEST is useful when you start operating in a new country or region. Use of
PEST helps you break free of unconscious assumptions, and helps you quickly
adapt to the realities of the new environment.
POLITICAL FORCES
Pakistan is not a politically stable country. Political changes in Pakistan are moving extremely
fast. But there is no big effect of it on this industry within the Pakistan. It includes
Government type and stability
Freedom of press, rule of law and levels of bureaucracy and corruption
Regulation and de-regulation trends
Social and employment legislation
Tax policy, and trade and tariff controls
Environmental and consumer-protection legislation
Likely changes in the political environment
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ECONOMIC FORCES
There is unemployment, high labor cost, high interest rates and inflation in Pakistan. But,
there is a ray of hope because it is projected that in 2011 Pakistan economy would grow at least
4 percent and could grow more with strong international economic recovery. It includes
Stage of business cycle
Current and project economic growth, inflation and interest rates
Unemployment and labour supply
Labour costs
Levels of disposable income and income distribution
Impact of globalization
Likely impact of technological or other change on the economy
Likely changes in the economic environment
SOCIAL FORCES
There is high population growth in Pakistan and lack of health and education facilities. To take
the example of education, only 1 % of the budget is spend for education. There is a need of
significant improvement in these areas. But these factors cannot affect our business because
we are focusing on the upper class.
Population growth rate and age profile
Population social mobility, and attitudes to these
Population employment patterns, job market freedom and attitudes to work
Press attitudes, public opinion, social attitudes and social taboos
Lifestyle choices and attitudes to these
Socio-Cultural changes
TECHNOLOGICAL FACTORS
Research and development expenses are high in Pakistan. Technological adaptation in Pakistan
is tremendously increasing. Internet users are increased in Pakistan due to communication cost
reduced. Designing of jewellery is very easy on special software on the internet.
Impact of emerging technologies
Impact of Internet, reduction in communications costs and increased remote working
Research and Development activity
Impact of technology transfer
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SWOT Analysis:
Strengths:
Weaknesses:
Lack of financial resources
Newness of the business
Lack of investment
Employees and security problems
High initial investment for building
The expenses to make their consumers comfortable.
Opportunities:
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Threats:
RISK ASSESSMENT
External risks
The political situation prevalent and the poor law and order situation in the country can
have a big impact on our business’ long-term future. A single political event of importance can
have an adverse impact on the business environment. One way to overcome the problems
posed by the political situation is to get the business insured against political risk. Moreover, a
change of government may lead to an adverse change in the tax rate or the rules and
regulations governing the restaurant business.
Economic variables also influence the outcomes of the strategies that we have drawn up. High
food prices inflation, high oil prices, energy and food shortages, and high interest rates also
pose a threat to our business. The business is heavily dependent on the correct execution of
technology .The high costs associated with maintenance and obsolescence of technology will be
a problem. We are targeting the youth population residing in Gulberg, New muslim Town,
Model town, Garden town, Johar Town, Faisal Town and DHA, which makes our market limited.
Results of our research shows that mostly males are mainly interested in sports.
Presence of sports areas, like near Gaddafi stadium like we have, DHA, Sports complex a threat
to our business. Also, Gunsmoke, Espresso, Roasters etc serve almost the same kind of food
that we do. To combat this risk, we need to constantly revise our strategies so that we remain
innovators in our field.
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Internal risks
The management team is the most important part of any new venture and hence represents a
major risk factor. Below we analyze the weaknesses and strengths of our management team
and how we can overcome these weaknesses.
Strengths Weaknesses
Understanding of each other will result in May not be able to manage rapid growth
synergistic benefits. due to inadequate experience
In order to overcome our weaknesses the first step is to gain is an in-depth knowledge of the
restaurant business via the experiences of other successful restaurateurs. This would
compensate for our lack of experience of the management team. The problem of lack of
consensus can be resolved through putting rules in place.
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Balance Sheet
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Those who have created a successful business know it does not happen without planning, hard
work, and a little luck. Yet most have no exit plan for leaving their business. The truth is that
most business relationships do not have happy endings.
If we did not get desire results then we will go for more investments through looking for
equity partner to expand our business to get results.
We can also have an opportunity to go for a gaming zone in a café with this we will
generate good revenue and this will help also to involve our customers more and
interest our customers as well.
Intro of Membership
We will go for a membership in our café and it will also help to generate our good
revenue and make our customers regular and loyal.
OUR LOCATION
Gaddafi Stadium near Fazal e Haq Dera, Gulberg, Lahore.
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FINAL PROJECT
SUBMITTED BY:
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