2010

PROJECT
REPORT
SUBMITTED TO:

SUBMITTED BY:
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ACKNOWLEDGEM
ENT
Our special thanks to Madam Sadia who arranged an
entrepreneur project work for us. The work is done under the
supervision of our worthy teacher Madam Sadia who provided
us with her kind guidance at each and every step whenever we
felt difficulty and she made us capable of making this project
report.
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INTRODUCTION TO PROJECT

Executive Summary
We completed this business feasibility report as our
entrepreneurship project supervised by our worthy MADAM
SADIA. As there are various famous and regional food items in
Pakistan which have high demand in food markets all over
Pakistan but they are not readily available in every region hence
we decided to sell these food products to customers in Multan,
Lahore & Islamabad firstly than we expand our business to all
over the Pakistan. We completed this project with great effort
and group coordination. We prepared business feasibility
regarding different areas of business which include operations,
human resource, marketing and finance. The explanation
feasibility of each area is explained in this report. After
completion of this project we concluded that the business is
highly feasible and profitable.
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Selection of Project
We selected this business as our project with the consent
of our worthy madam and after several group
discussions. One of the key success factor of this
business in that it is very much innovative and is not
there in the market in Pakistan.

Business Model
The model of our business is the business to consumer
model. This means that we will sell the products of
famous food suppliers directly to customers.

Brand Name
We decided the brand name for this business that is
“SAUGHAAT”. We selected this brand name because this
name represents and explain this business in a better
way and it reflects our business as Saughaat is a word
used for traditional, high quality and famous food items.
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Mission Statement

“OUR MISSION IS TO ENHANCE ACCESSIBILITY

OF FAMOUS FOOD ITEMS FOR PAKITANI”

Business Objectives
The main objective of our business is to generate
maximum profits by providing the people of Multan with
the access to several traditional and famous food items
from different regions of Pakistan. Other objectives could
be providing employment opportunities, contributing to
economic growth by enhancing sales of food item
suppliers and courier services etc.
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PRODUCT LINE
Our product line includes the following products at the
start but new additions would be made after the business
becomes operational. This would be done after examining
the consumer needs and demands regarding food items.
a. SOHAN HALWA MULTAN
b. NIMKO KARACHI
c. PAIRAY MARDAN
d. SPICES HAIDERABAD
e. PICKLE SHIKARPUR
f. REVRI CHAKWAL
g. DRY FRUIT PISHAWAR
h. BURFI MIAN CHANNU
i. DATES BAHAWALPUR
j. MANGOES SHUJJABAD/MULTAN
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OPERATIONAL PLANS

1. CUSTOMER PLACES
ORDERS ON WEB SITE
2.CUSTOMER PAYS
THROUGH CREDIT CARD
CUSTOM 3.PAYMENT
CUSTOMER
TRANSFERRED TO BANK
RECEIVES ER
ACC.
FOOD ITEM
AT HOME

CUSTOMER
COURIE SUPPORT
R REPRESENT
SERVICE ATIVE
C.S.R TAKES .INSTRUCTIONS
FOOD ITEMS AND BY C.S.R TO
SEND THEM TO SPECIFIED
CUSTOMER
SALES
ADDRESSES
REPRESENTATIV
THROUGH
COURIER SERVICE E
SALES
REPRESENT
ATIVE
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EXPLANATION
Ordering procedure:
Customer can order our food items by browsing our web
site which could be www.saughaat.com.pk . The food
items we are offering will be available on our web site
with their prices and their specifications. Customers
would be able to order for any item after few clicks on our
website.

Payment procedure for customers:

Customers can

• Pay the bills by credit card

• Pay with the help of Telenor Easy Paisa facility from

any telenor franchise near to their location.
• In case of credit cards the payment would directly be
transferred to the company’s bank account and top
management would be able to access that account.

Customer’s order will be treated by

the company:
After the order has been placed by customer, he/she has
provided required information on our web site and has
paid the price for the ordered food item then the
customer support representative will receive that order at
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our head office and will check that the information

provided by the customer is sufficient or correct. After
that the representative will send instructions to the sales
representative about the number of items to be sent and
the addresses of the customers. The sales representative
will then contact the supplier.

Company delivers the products to

the customers:
After receiving instructions by the customer support
representative from head office, the customer sales
representative will take the food item in required quantity
and will send that item to the customer’s address through
courier service and the food item will be delivered to the
customer within 1 or maximum of 2 days.

Location Feasibility
As at the start our major focus would be on increasing
brand image and sales promotions hence we would incur
more costs on these activities. Hence at the start we will
open our office in some cheap places in Multan,
Islamabad & Lahore. For example in Mumtazabad Multan.

Other Organizational Involvements

The organizations which will be involved in our operations
are
1.Habib Bank Ltd (for credit card transactions and bank
accounts)
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2.Telenor Easy Paisa (for payment by customer)

3.O.C.S (courier servive for delivery of food items)

ORGANIZATIONAL STRUCTURE:

OPERATIO C.E.O MARKETI

NS NG &

OPERATIO FINANCE MARKETING AND

NS DEPARTMEN SALES
DEPARTME T
DEPARTMENT
NT
FINANCE
OPERATIO MANAGER, MARKETING
NS ASST. MANAGER, ASST.
MANAGER, MANAGER, MANAGER,
ASST. ACCOUNTAN E.BUSINESS
MARKETERS AND

BANK REGIONAL REGIONAL

(H.B.L. FOOD CUSTOMER
UBL,ALFALA SUPPLIERS SALES
H), AGENTS AND
(e.g HAFIZ
COURIER REPRESENTA
SOHUN
SERVICES TIVES,
HALWA,
(OCS), CUSTOMER
MULTAN)
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MARKETING PLAN

WEBSITE PLAN:
The following sub-topics outline our plans to create and maintain our
website. At first, we will have a simple text and image-based website
which outlines our products and redirects customers. After the first three
months, we will begin online ordering via our own website as well.

Website Marketing Strategy

Our website will provide information about us and our products as well
as order processing to purchase our products online. We will include our
web address in all of our advertising to reinforce to our customers how
to find us online. Our company logo and motto will also need to be eye
catching and easy to remember so that once our customers find us, they
will remember us and suggest us to their friends and family.

Development Requirements
Initial Development
We will be working with an outside contractor to design the layout of
the site. Initially, our site will provide an overview of the company,
describe our products and services, and redirect visitors to our store to
purchase a SAUGHAAT. The estimated costs for initial website
development are listed in our start-up costs.
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Full website (including online

ordering)
In the third month of the plan, when we have a better sense of customer
preferences, we will finish the development of the site to include online
order processing.

Once the website design is complete, we will contract for ongoing

maintenance and support of the site.

TELEPHONIC PLAN:
In this section we mentioned that how the customer can contact us
through telephone channels.

Telephonic numbers:
We need some contact numbers for a relationship with our customers.
So there are many possible networks and numbers through which users
can sms and make a call for business dealings. Here are some suggested
numbers.
03333764428
03322764428
03003764428
03455764428 etc
All above numbers have SOGHAT alphabets on the phone and mobile
keypads by dialing 764428 which will make ease to remind our contact
numbers. Ultimately make a business worthwhile.
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SMS Networking:
We will affiliate our promotion with an SMS Networking with different
telecom companies for the best achievement of our business goals.

OVERALL MARKETING STRATEGY:

We are using both scope and differentiation strategy as there is no as
such business already existing in the market and our service creates
differentiation, moreover a scope strategy helps us focus different
cities and we plan to expand our product line and target more
segments in near future. Our goals are,

• Providing an introduction to food items (options) for buyers in

different cities.
• Helping businesses with established recognition to enhance their
sales.
• Creating a time-efficient way to meet the requirements of many
potential clients at once.
• Maintain tight control on cost during expansion.

MARKET POTENTIAL:
There is a strong market potential for our products as the target
market is middle age to old age people. Sweet (sohun halwa, barfi,
etc) are sold like hot cakes whenever the wedding season is at peak.
So we see the great market potential for our products.
We can grab a major market share from the customers all over
Pakistan throughout different cities.
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PRODUCT PRICING:
The product pricing is done as follows. The selling price of each
product is approximately 100 or 120 percent more than its cost price
including all the delivery charges etc.

PRODUCT LINE:
SOHAN
1 HALWA MULTAN 400/kg

2 NIMKO KARACHI 300/kg

3 PAIRAY MARDAN 350/kg

4 SPICES HAIDERABAD 500/dzn.spices

5 PICKLE SHIKARPURA 500/800gm pack

6 REVRI CHAKWAL 375/kg

MIX DRY
7 FRUIT PISHAWAR 1250/kg

8 BURFI MIAN CHANNU 500/kg

9 DATES BAHAWALPUR 550/5kg pack

10 MANGO SHUJABAD-MULTAN 1050/5kg

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DISTRIBUTION AND SALES

Distribution channels:
Our main distribution channels will be courier’s services which will
cause both cost and time efficient for the delivery to the many cities and
town of Pakistan.

Motivating the channel:

We will encourage courier Service Company to pay an important
attention to our orders. And we will also heir some part time employees
such as students for some areas where we have some large number of
orders on salary and commission bases.

Criteria for evaluating distributors:

There will be criteria to evaluate the performance of our distributors to
keep on rotating orders fast and efficient. If there are not fulfilling the
criteria warnings will be there and for good work, a reward will be for
the distributors.

Locations:
We are going to target almost every possible place in Pakistan where
Saughaat can approach directly through our courier service partners.

Logistics and order fulfillment:

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As we are online and telephonic system based dealers so there is no need

for logistics, but order fulfillment is a key aim of business. Order
fulfillment method is explained as above in marketing strategy under the
head of website and telephonic plan.

PRODUCT DESCRIPTION:
Products we are offering are the specialties from different cities of
Pakistan. Each of the products is not available at every city.

EXAMPLE:
Multani sohan halwa: sweet, semi hard form, bar shape.
Nimko : nut snacks, fried ,salty.
Similarly all of our products have different features and different
packaging.

COMPETITIVE COMPARISON:
As in the Pakistani food items sell online segment, there are a few
dealers such as

• Ali Baba,
• 21Food
• Tohfay

They are the saughaats dealers. But all these dealers are not specified
in food items and saughaats. So they could be a rival but the chances
of competition are very low. But we should be cost and time efficient
to avoid the competition .That will enable us to get the maximum
competitive advantages in our segment.
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Financial plan

Initial investment:

Web site development cost 30000

Office on rent in 3 cities (12000/month) 36000
Employees cost 200000
Marketing cost 72000
Utilities 75000
Equipment 30000
Furniture and fixtures
350000

Total
793000
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PRODUCT LINE AND PACKAGING:

1 SOHAN HALWA MULTAN 400/kg

2 NIMKO KARACHI 300/kg

3 PAIRAY MARDAN 350/kg

4 SPICES HAIDERABAD 500/dzn.spices

5 PICKLE SHIKARPURA 500/800gm pack

6 REVRI CHAKWAL 375/kg

7 MIX DRY FRUIT PISHAWAR 1250/kg

8 BURFI MIAN CHANNU 500/kg

9 DATES BAHAWALPUR 550/5kg pack

SHUJABAD-
10 MANGO MULTAN 1050/5kg
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Projected Quarterly Sales

ITEMS PROJECTED
QUANTITY*PRICE PROJECTED SALES
SOHAN HALWA 3500kg*400
140000/quarterly
Nimko 5000kg*300 150000
PAIRAY 3500kg*350 140000
SPICES 7000 sets*500
350000
PICKLE 1200packets*500 60000
REVRI 2000kg*375 75000
MIX DRY FRUIT 1200kg*1250
150000
BURFI 3000kg*500 150000
DATES 600packs*550 33000
MANGO 2500packs*1050 262500
Total REVENUES
1595000
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Projected Profit and Loss

Pro Forma
Profit and
Loss Year 1 Year 2 Year 3
Sales 6380000 6738000 6978000
Direct Cost of
Sales 4877200 4887200 4977200
Other 0 0 0
Total Cost of
Sales 4877200 4887200 4977200
Gross Margin 1502800 1850800 2000800
Payroll 396000 396000 396000
Sales and
Marketing and
Other
Expenses 72000 73000 75000
Repairs &
Maintenance 6000 6180 6365

Office Supplies 2400 2472 2546

Rent 432000 432000 432000
Other 0 0 0
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Total
Operating
Expenses 908400 909652 911911
Profit Before
Interest and
Taxes 594400 941148 1088889

Taxes Incurred 10955 15596 18599

Net Profit 583445 925552 1070290
Net
Profit/Sales 9.14% 13.74% 15.34%
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HUMAN RESOURCE PLAN

Human resource planning refers to the development of strategies for

matching the size and skills of the workforce to organizational needs. It
assists organizations to recruit, retain, and optimize the deployment of
the personnel needed to meet business objectives and to respond to
changes in the external environment. The process involves carrying out a
skills analysis of the existing workforce, carrying out manpower
forecasting, and taking action to ensure that supply meets demand. As
the competition for skilled employees is becoming even tighter, we need
to be proactive in HR planning if we want to continue to build a high
performance, high involvement, and inclusive workplace.

The HR planning process is illustrated in the following diagram.

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FOLLOWING STAFF WILL BE

NEEDED:

1. MANAGERS
Marketing Manager
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HR Manager
Finance Manager
Operations Manager

2. ASSISTANT MANAGERS
2 Sales Promotion officers
Assistant HR Manager
Assistant Finance Manager
Assistant Operations Manager

3. OTHER STAFF
Order handling officer
Accountant
Cashier
Storekeeper
Front Desk Coordinator

PAY SCALE FOR DIFFERENT

LEVELS OF EMPLOYEES:
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• MANAGERS- Rs. 25000

• ASSISTANT MANAGERS- Rs. 17000/-

• CUSTOMER SUPPORT REPRESENTATIVES- Rs. 10000/-

• ACCOUNTANT- Rs. 11000/-

• CUSTOMER SALES REPRESENTATIVES - Rs. 7000/-

• STOREKEEPER- Rs. 7000/-

• FRONT DESK CO-ORDINATOR- Rs. 8000/-

Harvesting
Our business is related to the food items,
that’s why its demand always increases. But
in any case if there will be a threat of
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business loss due to some serious

conditions we will go for liquidation. We will
stop taking more orders.

Selling of business:
There is also an option of selling our
business. For this purpose we will go for
market research. If there will some potential
customers for our business we sell it.