Launching Ice Cream Parlors in Lahore

Presented by: Rizwan Qamar

 BACKGROUND One of the strongest trends today is Pakistan’s' desire for comfort. Whether it's manifesting in the boom in home redecorating or the growing interest in home cooking, its clear consumers are looking for things that feel safe, familiar, and happy. Ice cream fits nicely with this desire for comfort. "Everybody loves ice cream," points out by a local, publisher of The National Survey, a retail ice cream trade publication. "People have good memories related to it, like walking to the local store as a kid on a hot summer day to get ice cream."

 OBJECTIVES The overall objectives of this project are to provide quality ice cream and an excellent seating space to our customers. Our objectives include the capturing of largest market share of the ice cream market in Lahore through customer loyalty.

 Deliverables Market Survey Administration Human Resource Management Supply chain Management Marketing Campaign Production

 Benefits Food industry has special Tax Rebate This is the 12 months running business Raw material is easily available through out the country and through out the year After capturing the market, the rate of return can be increased This business has greater rate of return as compared with the other business.

 RESOURCE SKILLS REQUIRED Marketing Personnel Production Personnel Sales and Services Personnel HR people Finance Department

 Chamman Ice Cream  Punjab Ice Cream  Butt sweats  Nirala Sweats  Gourmet  Other open ice cream shops

 No seating space for the customers  No specialization in the Particular ice cream field  They are not targeting the youth  Less number of Branches  Poor packing  Very poor customer services  No home delivery facilities  Poor locations  No family and children entertainment things  Unhygienic ice cream

 Vanilla  All Nut Flavours  Chocolate  All Fruit flavours  Neapolitan  Cookies and bakery  Chocolate Chip  Candy Flavours  Mint chocolate chip  Coffee  Extreme flavours

 Muslim Town, Ferozpur Road  Main Boulevard Gulbarg  Moon Market Allama Iqbal Town  Mall Road near Food Street Anarkali

 Poor understanding of market dynamics  Customer behaviours to buy foreign goods.  Inadequate infrastructure.  Shrinking market because of foreign competitors.  Future trends of the Market and customers  Financial and political health of the country

 Cost of organization  Control composition and Distribution  Hygiene and labeling requirements  Amended govern health and the production of milk and cheese  Dairy Products (Hygiene)  Awareness among the people  High initial capital requirements

 Pakistan Standards and Quality Control Authority Act  The Pure Food Ordinance, 1960  Pakistan Hotels and Restaurant Act, 1976  Specifications of Ministry of Food  Attestation from the Bauru of Food and Nutrition  Consumer Rights Commission of Pakistan  The Cantonment Pure Food Act, 1966

 Building RenovationRs. 6,000,000  Building RentRs. 4,800,000  Furniture and FixtureRs. 6,500,000  Freezing equipmentsRs. 4,000,000  Air ConditionsRs. 5,000,000  SalariesRs. 6,720,000  MachineryRs. 8,000,000  Catering Rs. 0500,000  *Electricity ChargesRs. 1,440,000  *Water BillsRs. 0100,000  *Gas Consumption Rs. 0200,000  *Telephone billsRs. 0240,000  Advertising ExpensesRs. 1,000,000  Building SuppliesRs. 0500,000   Total Fixed cost during first year = Rs. 50,000,000  Working Capital for First Year = Rs. 15,000,000  Total Capital required for 1 st year= Rs 60,000,000

 Rent ExpensesRs. 400,000  SalariesRs. 560,000  Electricity ChargesRs. 120,000  Water BillsRs. 08,333  Gas ConsumptionRs. 16,667  Telephone billsRs. 20,000  SuppliesRs. 41,667  AdvertisingRs. 83,333  Running FinanceRs. 1,250,000   Total Per month ExpensesRs. 2,500,000

 Initial InvestmentRs. 60 Million  Debt/Equity Ratio2:3  Expected Pay Back Period is 5 years  Return on Investment =25%  Return on Equity=30%  Working capital Requirements =Rs. 15 Million  Expected Growth Rate= 9-10% p.a.