Bplan for an Indian F&B Venture

Abstract

As part of this academic research project, we propose a strategic Business-Plan for CupO’Joe, a café located in a commercial hub within the Indian city of Bangalore. The F&B Venture’s funding objective is USD 100,000 with 20% stake on offer, valuing the venture at USD 500,000 which is in-line with a Price/Earnings multiple of 5.0. The financial plan for allocation of funds includes outlet's roof area expansion (31%), a European style mini-café kiosk within an external urban corporate hub (38%), mobile app development & launch (5%), operational scale-up (11%) & a digital marketing campaign (15%). With India's food-services sector growing at 16-20 % 1 annually & BCG estimating India's food market size to reach INR 42 lakh crore 2 by 2020, establishing brand loyalty has become a highly sought after goal within India's F&B industry. According to Census 2011, India’s urban population increase during the 10-year period from 2001 to 2011 overtook its rural counterpart for the first time since India’s independence. With India’s rural population growth declining since 1991, we estimate India’s urban population to have a growing & unmet need of a platform which simultaneously caters to two key tenets of the Maslow’s pyramid – food & leisure. To gain a sustainable competitive advantage while leveraging the aformentioned business opportunity, we propose venturing into a less-crowded & largely unexplored space within India’s F&B industry – an eatertainment-based purely Continental food-experience for India’s niche & growing urban segment. As part of our Business-Plan, we conceptualize an effective Focused-Differentiation marketing strategy for our targeted niche segment of urban consumers. In line with our corporate strategy, we formulate our long-term business objective of establishing brand loyalty through enhancing customer engagement. Our unique Value Proposition entails offering our customers, a truly European food-experience – an eatertainment themed mélange of continental cuisine, music, books & renaissance-style art adorned with a nature-based serene ambience to create a tranquil paradise for a life experience which touches the soul. The reason for the food menu design is the unique Value Proposition of a truly Continental foodexperience with the prices being in-line with the industry standards for our targeted segment of India’s niche & growing set of urban customers. In order to further leverage social media & mobile technologies for driving the F&B venture’s future growth, our Business-Plan includes an aesthetic & intuitive App design planned for launch on global digital distribution platforms such as App Store & Google Play. With regards to Key Performance Indicators, we focus on 6 robust parameters for the venture’s longterm sustainable business success within India’s F&B industry – Section-wise Quality of Actual Business Sales, Online User Ratings’ Comparison, Social Media Analytics, Online Search Rankings, Monthly Customer Growth, Monthly Revenue Stability. With our proposed Business-Plan, CupO’Joe has the potential to establish long-term strategic leadership within India’s F&B industry in the future.