Table of content 1. Executive summary3 1.1 Vision...4 1.2 Mission..4 1.3 Keys to Success.4 1.4 Objectives..4 2.

Marketing plan 2.1 description of the product..5 2.2 Target Market segment..7 2.3 Demand Analysis...8 2.4 Gap Analysis..8 2.5 Projects Marketing Plan(7 Ps)..9 2.6 Forecast of Sales..12 2.7 Fixed Assets for Marketing.13 2.8 Competitor Analysis14 2.9 Strength and Weakness14 3. Organization & Management Plan. 3.1 Form of Business.15 3.2 Capability & Profile of proponents.16 3.3 Organization Structure17 3.4 Descriptions of Key Positions & Responcibilities..18 3.5 Recruitment Strategies18 3.6 Selection Strategies.19 3.7 Training & Development19 3.8 Cost of Perssonel for Administration.20 3.9 Fixed Assets Requrements.20 4. Production & Technical Plan 4.1 Production Facility, Location & Description21 4.2 The Planed Location..21 4.3 Method Involve in Production...22 4.4 Production Shedule22 4.5 Fixed Assets Requrement..23 5. Financial Plan 5.1 Total Investment Cost24 5.2 Loan Repayment & Interest Calculation25 5.3 Projected Profit & Loss statement..26 5.4 Projected Cash Flow Statement..27 5.5 Projected Balance Sheat.28 5.6 Break Even Analysis..29 5.7 Financial Analysis (Ratio).30 6. Milestone..31 1

1.Executive summary
D&S FOOD WORLD is a new way of serving fruits for any one.D&S FOOD WORLD will provide a combination of excellent fruits at value & favorable pricing with.D&S FOOD WORLD is the answer to an increasing demand for getting fresh fruits. Our main priority is to choose crowded place and a school to serve. In accordance with that purpose, we have decided to establish this business in front of Kumbukgate Central College. D&S FOOD WORLD offers products such as fruit salads, fruit juice items, soft drinks,fresh fruits and also short eats etc. We will arrange to serve consumers in business premises itself and also can take away from us. D&S FOOD WORLD expects to invest a little money to introduce a new product is named ice-milo. We will hope to build a good demand for this product among our target consumers. D&S FOOD WORLD offer several advantages to its target market; Relatively inexpensive meals to consumers. Easy,Fun,Social networking place to meet & chat each others. Convenient to eat fresh fruits items prepared just in the time Saves time of employee Best of all not having to decide to from where to buy

The purposes of this plan is two-fold. The first is to acquire funding of Rs 500000/=. The second is to lay the foundations of the companys vision, philosophy and strategy to ensure that we know where we are going and how to get there.

1.1 Vision To be the best fresh fruit service in Sri Lanka with maximum customer satisfaction 1.2 Mission
Provide a unique and distinctive fruit service to avoid time wasting & protect target consumers health while giving consumers more of what they are looking for time Our goal is to be self sustaining corporate enterprise within 1 year from the companies inspection to begin expanding our menu offerings within 3 months. D&S FOOD WORLD will hit net profit goals of Rs 600000/= by the end of its second year of existence. In short, we will be in the business of helping our customers to relieve their daily stress of what to eat for dessert any other occasions by providing them with a great menu choice of food items that they will expect.

1.3 Keys to success

The keys to success in this business are Creating a high level of customer satisfaction to our services and products, which will lead to customers relation each month Marketing- Getting our name to the target customers, primarily through an intensive marketing campaign driven by our customers (word of month) and conventionail marketing tactics Grate product quality and variety that will be used to aid in customers relation & growth Finance- As our customers base increases we will be better able to lower our supply costs by buying more in the buln through material suppliers Exceeding our customers expectations by offering them a higher quality of food for a competitive price.

1.4 Objectives
1. 2. 3. 4. 5. To exceed customers' expectations for food service and food service products. To increase the number of clients served by 25% per year through superior service. To develop a sustainable start-up business that is profitable. To achieve an after tax net profit highly by year three. To achieve a net income of more than 10% of sales by the third year

2.Marketing plan
2.1 Description of product
D&S FOOD WORLD is offering basically 6 verities of products. Those are Fresh fruits Fruit salads Soft drinks Fruit juice items Short eats Ice-cream

Under each variety there are number of products lines can be seen

Fresh fruits Banana Rs40 Papaya Rs40 Avocado Rs40 Grapes Rs35 Wood apple 50 Water melar 60 Pine apple Rs20

Fruit juice items

Soft drinks Elephant drinks only

Fruit salads

Pera ambula In here we expect to offer sweet food. So we decided to prepare the curry in our spot. When we can offer curry in delicious and quality colour. Pera ambula recipe Guawa fruits Some curry leaves Salt 4

Some onion Coconut oil Some pepe Mol dive fish Chilies Other nessecery things to do

Yet any other person not use guawa to make curry. So it is new thing to other person. But in here try to inform people about new short eats of pera ambula. Actually guawa is a wasting fruit in most reagion in our country. So we can allocate our main raw material very easily. As we can get lawulu fruit in cheap money. Further we can easily prepare that mixture. The method of preparing lawulu wadei First of all lawulu fruits should cutting to the pieces. Then grind it & get the cream of lawulu Secondly mix some salt curry leaves pepper pieces of onion &chilies to the lawulu mixture Then conglomerate the mixture into small pieces Then fry the pieces deep coconut oil until the appear gold colour. Now you can enjoy the taste our newest innovation lawulu wadei

Fresh fruit product We always try to get fresh fruit on cheap price. Because we decided to get all fruits to want per week buy at dambulla economic center weekly. It is very beneficially.our enterprise offer fresh fruit product both in cool drinks & hot drinks. As we deliver glass to drink on time. So we can limit our package cost.

Short eats All short eats prepare in our kichen. Role, Patis, Preasty, Buns, hot dogs, we offer breakfast. In addition to evening parata & those we offer to customers.

2.2 Target market segment Our main customers are the children of Kumbukgate Central College and any people of Kumbukgate area.
We segmented the market based on geographical factors. Further detailed city wise. There seems to be high density in the areas like Kumbukgate,Kumbukgate.Rambe. We choose Rambe as our target area to deliver the Fruits & soft drinks. Our Spot situated at in front of Kumbukgate Central College . As we decided sellers in market and person in other work places will be become our customers. Certainly those busy person very like to Fruit products.

We decided to offer drinks & juice& ice-cream to target market customers in Kumbukgate because of it is very suitable to that area. Hot climate, hard workers school students very likes to that. As well as we can easily collect raw material for that because of grown fruits.

2.4 Gap analysis Product line Total demand (quantity) 14400 72000 20250 11000 Total supply (quantity) 7300 51000 13000 9000 Gap (quantity) 7100 21000 7250 2000

Vanila sponge cake Fruit choco juice Pastry deval chiken five Mayonesh chiken egg pizza

2.5 Projects marketing strategies

1. Product strategies
Our food outlet will offers 4 types of category of foods. o Fresh fruits o Fruit salads o Fruit juices o Soft drinks o Ice-cream o Short eats 1. Product mix strategies. New fresh fruits relative item will be introduced under fruit relative item category. Anoda juice Karapincha juice Introducing a new product called ice-milo under new category. Product depth will be changed under fruit relative item such as Anoda juice; full cup, Half cup, small cup. 2. Branding and logo. Brand name will be introduced under logo 3. Agreement will sign with elephant house by negotiating sell their soft drinks only. 4. Social responsibility supply system will be followed by using eco-friendly products in packaging.

5. No of fruit juic items related varieties will introduced. Papaya juice Lemon juice Orange juice Mix fruit drinks Avocado drinks Honey melon juice Karapincha juice

Pricing Strategies

As a new comer to the restaurant industry we will follow marketing penetration pricing strategy, set lower prices to become value fresh spot leader. 1. Mentioned every price in a menu card. 2. Customers who come with their family members will deliver attractive discounts.

3. Promotion Strategies
Introducing new products and new experience will be required more promotional tools to make aware of the people and willing to buy. 1. Handouts will prepare and distribute among people of Kumbukgate; near the bus stand, schools, fairs, Tusion classes. 2. Funny games will be introduced to the customers. Target shooting game; winners are offered free food card that can be take food items in free of charge. 3. Banners will introduce near our location. 4. Sample Ice-milo will share among people who near our location to the free of charge.

4. Distribution strategy
Directly interact with customers by delivering product by ourselves. No channel distributers are used. Can lower the distribution cost. Good customer relationship can be build.

5. People 1. Two waiters will dress as a formal waiter. 2. Hire, train and motive the people who like to serve customers in high manner.

6. Physical evidence. 1. Visible kitchen will be offered 2. Allocate 2 parts inside the spot to serve, food making, and food available. These 2 parts will decorate. 3. Location surrounding will decorate attractively.

6. Process strategies
1. 2. 3. 4. Customer suggestion box. Attach customer satisfaction forum. Less waiting time. Service will conduct as a conventional to the both individuals and groups.

2.6 Forecast of sale

Forecast sales value in Rs: Year2 Year3 1630200 2037700 2322800 301100 684375 775600 346525 4158800 5007100 6240300

Product line Fresh fruits Fruit juice Soft drink Fruit salad Total sales value

Year1 1222600 1720600 456250 277250 3676800

2.7 Fixed Asset for Marketing

Asset Banners Food showcase Serve tables Chairs Plates/Glass/cups Game equipments Purchase price 10000 12000 20000 16000 10000 10000 estimated life 2 10 10 10 3 5 Depreciation 5000 1200 2000 1600 3333.30 2000

2.8 Competitor analysis

Major competitors There are one runner-up bakery in the area of Kumbukgate. 1. Jeewana bekary. No any fruit items are delivered but higher status will cause dropped in general peoples needs and wants. Qquality products deliver to the higher prices. High loyalty customers have been acquired.We saw it as a limited satiafying of customers needs.No new product can be seen.

2.9 Strength and weaknesses

Some of strength identified competitors are 1. Having considerable number of loyal customers 2. Using very attractive advertising campaigns 3. Display arrangement are very strength 4. They are fulfilling more than one customers needs and wants. 5. Well established with goodwill in the market Weaknesses 1. Decide high prices for products. 2. Lack of well trained & skilled employees 3. Inefficient billing system 4. Not supplying a menu for customers 5. Lack of customer treatments care and law discipline of the employee

3.Organization and management plan

3.1 Form of business
In this competitive business world, though there are many business organization types we decided to formulate our business organization as a limited liability company .In specially we have plan to incorporate our business as a Privet limited company. According to our analysis it is the most effective nature for our institute. Under 2007no 07 company act every person are encouraged to form their SME as a Privet limited company. Among many types of organization like partnership, joint venture, sole proprietor, Organization like Privet limited company have many strategic advantages. Limited liability Compulsory accounting and Auditing Keeping compulsory reports and minutes Easy to register Privet limited company under the new company act All company activities are well governed and can exercise the benefits of corporate governess.

We incorporate our company under the name of DDS COOL SPOT COMPANY LIMITED. Since this organization offer instantly made fresh nutritious fruit items at the minimum waiting time, this name is selected

Company logo

10

3.2 Capabilities and profile of the proponents.

There are three main persons in this organization. As the promoter of the company Mis.D.D.Samarasena contribute 40% of the Share capital and 30% by each other person. Mis Samarasena is a graduate in the university of sri jayawardanapura.He have a 1st class degree in the Economics science. As wel as she following a business cause in IBM. Mr Jeewan is a Doctor and he has a diploma in food and nutritious . He is Samarasenas brother.

Mr Jinasena is a businessmen.He has lotary agent in NLB & DLB.He is Samarasenas father.

All these three key persons are close friends since last ten years. All of them are efficient, talented, hard workers.

Name of the proponent

Address

Tel No

Mis D.D.Samarasena Mr. Jeewan Mr. Jinasena

WeliharagedareKumbukgate ,, ,,

11

3.3 Organizational structure Charman

Marketing manager

Production manager

Chef 1

Waiter 4

Clerk 1

12

3.4 Description of key positions and responsibilities Chairman

Mis. D.D.Samarasena acts as a chairman of our company since he hold majority of the share capital. She will responsible all the activity of the organization. And head of the Director Board. He will monitor all administrative activities. As well as he will act as the company Secretary.

Marketing manager
Mr. Jinasna will responsible all marketing activity of the company and he act as the marketing manager of the company. So he has to conduct marketing researches, identify competition, setting 7Ps, analyzing the target market market.

Production manager
Mr.Jeewan as the production manager he responsible all production activities of company. Purchase, stoke, equipment purchasing, train employees, planning products & services.

3.5 Recruitment strategy

Though our company private limited company, it have only 6 employees - 4 waiters - 1cheff - 1clerk To attract the chef we use special personnel connection to attract him. Use head hunting method since he is a very key employee of the company. this method we apply in addition to formal recruitment policy. To attract 4 waiters & clerk we use paper advertisement. In the paper advertisement we mention following information -salary -educational qualification -closing date of application -contact detail -structure of the application

13

3.6 Selection strategy

First we call application and make interview. Then we conduct a particle test to measure their job performance. Chef -we check ability of the chef as following -ability to prepare food according to customer recipe -cleanness -Experience taste of the food Waiter -politeness -English -physical appearance -experience -education (special hotel management sector degree) Clerk -accounting ability-AAT, CAB2, - Computer literacy -English

3.7 Training and development

We conduct training program under our marketing manager & production manager Training duration will be 4 days At the training level we hope to bring our employees in to expected level We can identify their training requirements which we conduct to the practical test

3.8 Cost of personnel for administration category Year 1 salaries & benefits 810900 710100 119000 1640000 Year 2 salaries & benefits 852900 748000 126100 1727000 Year 3 salaries & benefits 897900 788000 132100 1818000

waiter Clack Chef total

Assumption
1. Incentive we basically their monthly performance measurements 2.no more labor requirement within next 3 years

14

3.9 Fixed assets required for office administration

assets

Capacity / specification 1300000 620000 330000 100000 2350000

Estimated life (years) 10 6 7 10 -

Depreciations per year (LC) 130000 103000 45000 10000 288000

Old buildin & repair equipment Furniture & Fixture Other Assets Total

Maintenance & repairs

Old buildin to run it we need diesel- Rs20000 per month - Rs 10000 per month for repairs Kitchen equipment -Rs 20000 per month Restaurant equipments -Rs 50000 per month

15

4.PRODUCTION AND TECHNICAL PLAN

4.1 Production facility location and description
As planned by us we need at least 10000 squared feets of Land to serve our customer well. Although it named as mobile snack bar in the first months of the business we planned to serve our customer staying in same place, to reasonably introduce or give a thorough understanding about the way of our business conducting. Because of that our targeted customers are living in Urban area we choose a land to located it in Maharagama town (In front of the President CollegeMaharagama) to they can easily reach to us in short time. And also we also enjoy some extra ordinary benefits by choosing this location as above. The necessary raw materials like fresh fruits we can easily accumulate From the Meegoda Economic Centre and The market of the Maharagama etc. As the business is located in Maharagama town, it is much centered town in Colombo area. So the transport cost can reduced Since have much of transport facility And other basic Infrastructure facilities are available in area. Electricity, water etc And the basic Human recourses required can find making a little effort. As it is a open area, will help in the promoting strategies.

And will help to expand our business as a serving a mobile service in weekends and in other holydays. In near future in such places Galle face, Wiharamaha Devi park, and in Carnivals etc.

4.2 The planned Location

Ibbagamuwa M ma dag alla RD Kumbukgate R d d d cool spot Kumbukwewa

Dambulla road

Hiripitiya road Kumbukgate c.college

Rambe

16

4.3 Methods Involved in Production In the producing process we planned to use labor oriented Production method. Its means the main resource of our business will be Human Resource not the Capital. And in there we made our attention to provide not the readymade foods; It will precede a fresh food supply system: The almost all fruit juice categories and the all hot drink categories and specially Lawulu Wadei, our main innovative product. The fresh foods will be made using our own production recopies and strategies and will make on customer requirement base on time. And the other bakery products will buy from other supplier who suited for our terms and conditions. And we expect to by soft drinks from Elephant House Company, to ensure to the customer the almost all products are locally produced.

4.4 Production Schedule Year1 32850 73000 18250 21900 146000 Year2 43800 98550 27375 29120 198925

(Units) Year3 54750 127750 31025 32850 246375

Fresh food products Short eats Soft drinks Hot drinks Total production

Assumptions When forecasting the production schedule: we mentioned on daily sales/production as follows. Year 1 90 200 50 60 Year2 120 270 75 80 Year3 150 350 85 90

Fresh fruit products Short eats Soft drinks Hot drinks

As the company offering the product not in a readymade base so it is assumed that production units equal to sales amounts in our own product categories. We expecting to increase our production /sales units by 30% in the year 2 and in year 3 , it by 65.8% as we expecting to make new outlets in near future.

17

4.5 Fixed assets requirement and cost to production. Purchase price 205000 45000 65000 135000 450000 Estimated life 10 5 7 8 Depreciation per year 20500 9000 9285 16875 55660

Refrigerator Gas cooker & related Oven Other category equipments Total

The all the cost for the production machinery and equipments are planned to source from locally available dealer Singer (pvt.) Ltd: Assumptions The no of main labors will not change and the rules and regulations of the government for salaries & wages all over the period But the additional labors will need for fill the occasional labor requirements. Such as in New Year season, Christmas season etc The entire labor requirement numbers are will remain unchanged all over the period of year1, year2 and year 3

18

5. FINANCIL PLAN
The business is organized under the will financial structured that is depended on loan capitalization and share capital of the founders.

5.1 Total investment cost

Now, the company is owned by the 3 founders under the private limited company will contribute Rs.2583000/= for same amount of ordinary shares. Another source of capitalization is bank loan that is 27.9% of the total capital. item A, fixed assets Vehicle Equipment Furniture and fixture Other assets Total fixed assets B, Working capital(30 days) Marketing expenses Production & technical expences Organization and management expences Total working working capital C, pre operation expences Total (in amount) A+B+C Total (in percentage) Source-Ordinary share Loan Total Rs

1,300,000 620,000 330,000 100,000 2,350,000

40,000 450,000 193,000 683,000 550,000 3,583,000 100% 2,583,000 1,000,000

19

5.2 Loan repayment and interest calculation

Amount of loan Rs 1000000 Interest rate 12.5% Payment period 5 years Grace period 3 months Payment method Amortization method on monthly base Loan payment schedule year 1 2 3 4 5 total Beginning Balance 1,000,000 816,667 616,667 416,668 216,667 Interest payments 133,542 88,542 63,541 38,541 13,542 317,709 Payments on principles 200,000 200,000 200,000 200,000 200,000 1,000,000 Total annual payments 313,541 288,541 263,542 238,542 213,542 1,317,708 Ending balance 816,667 616,667 416,668 216,667 0 -

Columns of the interest rate payments and the payments on capital are indicated the amount of total interest payment on principles paid by the monthly basis.

20

5.3 Projected profit & lost statement

As the profit & loss shows, the business will run at a profit. After two and three years, sales will be increased by building customer loyalty and serve at different places. particulars Sales (-) less: direct cost of sales Gross profit Year 1 3,676,800 (736,000) 2,940,800 Year 2 5,007,100 (1,002,300) 4,004,800 Year 3 6,240,300 (1249,100) 4,991,200

(-) less: operating expences Marketing expences Organization &management expences Total operating expences Profit before interest & taxes (-) less : interest expencess Profit before income tax (-) less : provision for income tax Net profit after tax

101,000 2,580,200 (2,681,200) 259,600 (133,542) 126,058 0 126,058

115,000 2,755,100 (2,766,600) 1,238,200 (88,542) 1,149,658 0 1,449,658

125,000 2,811,800 (2,936,800) 2,054,400 (63,541) 1,990,859 0 1,990,859

21

5.4 Projected cash flow statement

The following table shows the projected cash flow for the business Particulars Cash inflow -cash sales -equity -loan proceeds Total cash inflow (-) less Cash outflow -fixed assets -pre paid expences -pre operating expences -direct materials -Direct labor -marketing expences -administrative expences -interest expences -loan repayment Total cash outflow Net cash flow (+) add : cash balance, beginning Cash balance, ending Pre operation period 0 3500000 1000000 4500000 Year1 Year2 Year 3

3676800 0 0 3676800

5007100 0 0 5007100

6240300 0 0 6240300

2350000 0 550000 0 0 0 0 0 0 785000 3715000 0 3715000

0 0 0 383000 255000 90000 2380000 133542 200000 3441542 235258 3715000 3950258

0 0 0 502000 336000 105000 2455000 88542 200000 3686542 1320558 3950258 1345800

0 0 0 612000 396000 144000 2696000 63541 200000 5673000 456000 1345800 908000

22

5.5 Projected balance sheet

Projected balance sheet follows particulars assets Current assest Cash Inventory Pre paid expences Total current assets Fixed assts Vehicles (-) less: accumulated depreciations Furniture & fixtures (-) less: accumulated depreciations Equipment (-) less: accumulated depreciations Other fixed assets (-) less: accumulated depreciations Total fixed assets Other assets Pre operation expences (-) less: accumulated amortization Total other assets Total assets Liabilities Current liabilities Account payable Total current liabilities Long term liabilities Long term loan Total long term liabilities Total liabilities Equity Ordinary shares (+) add : profit loss account Total equity Total liabilities & equity Pre operation period Year 1 Year 2 Year3

661,000 14,000 8,000 683,000 1,300,000 330,000 620,000 100,000 2,350,000 550,000 550,000 3,583,000

1445325 14,000 10,000 1469325 1,300,000 (130,000) 330,000 (45,000) 620000 (103000) 100000 (10000) 2062000 550000 (55000) 495000 3531325

2882075 19000 12000 2913075 1300000 (260000) 330000 (90000) 620000 (206000) 100000 (20000) 1774000 550000 (110000) 440000 2214000

3126977 23600 13800 3163477 1300000 (390000) 330000 (135000) 620000 (309000) 100000 (30000) 1486000 550000 (165000) 385000 1871000

1,000,000 1,000,000 1,000,000 2,583,000 2,583,000 3,583,000

5600 5600 816667 816667 822267 2583000 126058 2709058 3531325

6750 6750 616667 616667 623417 2583000 1449658 4032658 4656075

7450 7450 416668 416668 424118 2583000 1990859 4573859 4997977

23

5.6 Break-even analysis

Our break even analysis shows that, we need sales amount over Rs. 3 350 000 per year to breakeven Profits Rs. (000)

100 90

3350 Sales: Rs.(000)

-90

24

5.7 Financial / investment analysis

ratios Liquidity ratios -quick ratio -current ratio Leverage ratio -debt/equity ratio Activity ratio -assets turnover Profitability ratios -profit margin -return on investment -return on owners investment Year1 257.95 252.37 23.13% 104.10% 72.5% 3.52% 4.88% Year 2 426.97 431.56 13.38% 226.56% 76.33% 40.44% 56.08% Year3 419.72 424.62 8.48% 333.51% 77.67% 55.54% 77.04%

Assumption
Financial plan is prepared on under the following assumptions Fixed cost constant Interest rate-12.5% Tax-not impact

25

6. Milestones
During the initial set up of the company, the 3 founders (Lal,Kamal,Saman) will conduct the planning and implementation in building the brand and the construction of our first outlet. The planning and construction will take approximately 8 months, in addition to the revision and refinement process that will take the rest of the 12 month period before our opening in early 2010.

26