ARAP Shahi Iftari

Presented to

SamyAhmed (SyA)
Lecturer School of Business North South University Owned by

M Khairul Alam M Ashikur Rahman M Arefin Hossain Rubaiat Rashid

062 072 072 081

070 465 504 375

030 030 030 030

Introduction
Iftar is one of the religious observances of Ramadan and is often done as a community, with people gathering to break their fast together. North South University is no different to that. NSU Old Cafeteria along with Golpea, Magdonald and BH&R has been serving with its iftar items so far. But traditional iftar items bring many personalities together. So we have decided to start up a stall at NSU cafeteria with traditional iftars from Old Dhaka.

Stall Background
North South University cafeteria beside the recreation hall will be best suitable place for our stall. ARAP Shahi Iftari an iftar item stall based on making and selling traditional iftar items during the month of holy Ramadan. We will provide traditional shahi iftar items which are seen especially in Chowk Bazaar of Old Dhaka. So we n our stall, ARAP Shahi Iftari

Designing Sales force Strategy & Structure Territorial structure

Our sales territorial structure has been determined based on the demand of traditional Old Dhaka foods during Ramadan Although there will some similarities in a few products which has always been introduced as regular iftar items but we our main focused product will be traditional food items of Old Dhaka Iftari in the holy month of Ramadan has come in our culture through our Religion. So it is obligatory for a Muslim to break his fasting by Iftar. Through our stall we are going to sell traditional food items from Old Dhaka which are only seen at Chowkbazaar

Product structure

Market structure

Market Segmentation
Limited

iftar items at NSU canteen

iftar items from Old Dhaka taste of spicy foods

Traditional Traditional Demand

for itemized foods on the occasion of Holy Ramadan

Target Market

Our target consumers are from North South University

NSU

administration officers
Members officers from EMBA

Faculty

Students Corporate As

NSU canteen is already occupied by NSU Old Cafeteria, Golpea, Magdonald and BH&R so well be offering our Iftar items.

Porters Five Forces (contd.)

Rivalry among existing firms HIGH: The segment of foods in North South University cafeteria is highly competitive because customers demand, no opportunity cost of choosing other iftari stalls, substantial amount of food items Threat of new entrants LOW: The threat of the new entrants is extremely low because of high entry barriers North South University cafeteria is already occupied with several existing food stalls for any other food stall in the cafeteria.

Porters Five Forces (contd.)

Bargaining power of suppliers LOW: Suppliers bargaining power in this segment is very weak, since each company in the segment accounts for the big fraction of the suppliers sales and cost of switching to a different supplier is relatively low as well Bargaining power of buyers HIGH: Buyers bargaining power is very high and strong due to absence of switching costs while choosing other iftari stalls Substitute LOW: During Ramadan people always go for wide variety of iftari items rather than Biriyani and other stuffs which are available whole year

Porters Five Generic Strategies (contd.)

Types of competitive advantages being perused
Lower Cost Overall low cost leadership strategy

Differentiation
Broad differentiation strategy

Market Target

A broad crosssection of buyers

Best cost provider strategy Focused low cost strategy Focused differentiation strategy

A narrow buyer segment (Market Niche)

Porters Five Generic Strategies (contd.)

A low-cost provider strategy Striving to achieve lower overall costs than competitors and appealing to a broad range of customers, usually by underpricing competitors A broad differentiation strategy We are seeking to differentiate the companys product offering from competitors in ways that will appeal to a broad range of buyers. A best-cost provider strategy - The target is to have the lowest (best) costs and prices compared to competitors offering products with comparable attributes but as our foods highly priced so we are not going to follow best cost provider strategy

Porters Five Generic Strategies (contd.)

A focused strategy based on low costs Concentrating on a broad buyer segment but due to higher cost than competitors we wont follow this strategy .
A focused strategy based on differentiation Concentrating on large buyer segment we will be competing competitors by offering niche members customized attributes that meet their tastes and requirements better than competitors products.

ARAP Shahi Iftari chart

Item Name Buy/Mnfc Selling Price Per Price Per Day TK. Day TK. Profit Per item TK.

Arabian Shawarma
Khashir shahi halim (Soup bowl) Shahi Jilepi (Jumbo sized) Khashir Paya + paratha (per piece) Dahee Bora (Per piece) Special yoghurt-fruit salad Special pine-apple pepper chilli sharbat Total

90
80 13 130 11 14 16 354

110
100 20 150 20 35 30 465

20
20 7 20 9 21 14 111

Financial Information

Our Total Investment will be TK.531,000 and operating cost will be Tk.50,000 for we are going to do business for this one month Ramadan. Every one of us will have equal shares in this investment. As far as this financial activities will continue for this Ramadan month only so we havent prepared any balance sheet. We have tried to show a loss-profit or Income Statement for this month.

ARAP Shahi Iftari Income Statement The 30th September 2013 (Forecasted)
Revenue Sales Cost of Goods Sold 697,000 531,000

Gross Profit

166,000

Operating Expenses Salaries & Wages Stall and maintenance Expenses 20,000 7,000

Travel Expenses Total Operating expenses Income Before Tax Income Tax Expense Net Income

23,000 50,000 116,000 17,400 98,600

Return on Investment (Per day)

Forecasting 50 customer

Total

investment: Total revenue: Overhead cost:

ROI=

TK.17,700 TK.23,250 TK.1,666

23,250 17,700 1,666 X 100 17,700

= 21.8 %

Return on Investment (30 days)

Total

investment: Total revenue: Operating cost:

ROI=

TK.531,000 TK.697,500 TK.50,000

697,500 531,000 50,000 X 100 531,000

= 21.8%

Thank you for your patience & You are welcome for recommendation