Professional Documents
Culture Documents
Mission: To be a centre of consciousness for organic food and promote healthy lifestyle
while maintaining quality and facilitate our customers to the fullest.
1.
Executive summary..4
2.
Industry Analysis.
3.
Background..
2.1.1. Overview
2.2.
Brand Positioning.
2.3.
2.3.5.
Environment Protection
2.3.6.
Health consciousness.
2.4.
2.4.1.
2.4.2.
2.4.3.
2.4.4.
2.4.5.
Threat of Substitutes..
2.5.
PESTLE Analysis.
2.5.1.
Political..
2.5.2.
Economic..
2.5.3.
Social/Cultural...
2.5.4.
Technological.
2.5.5.
Legal..
2.5.6.
Environmental
2.6.
SWOT Analysis.
The Product..
11
3.1.
11
3.2.
11
3.3.
Core Business
11
11
12
1
12
12
3.4.
Differentiating factors..
12
12
12
12
12
13
13
3.5.
13
13
3.6.
4.
5.
Potential Suppliers
13
3.6.1 Suppliers
13
Market Research.
14
4.1.
Market Share
14
4.1.1
14
4.1.2
14
4.2.
15
4.2.1
Questionnaire findings...
15
4.3.
15
4.3.1
Target Markets...
15
4.4.
Change Anticipation
15
15
15
16
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Marketing Strategy.
16
5.1.
Brand Image.
16
5.1.1
Brand Name...
16
5.1.2
Restaurant Logo.
16
5.1.3
16
5.2.
Pricing...
17
5.2.1
17
5.3.
Placement..
17
2
6.
7.
5.3.1
Gulberg Road.
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5.3.2
Rent
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5.4.
18
5.5.
Promotional techniques....
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5.5.1
18
5.5.2
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5.5.3
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5.5.4
Advertising Budget
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5.6.
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5.6.1.
Market Penetration.
19
5.7.
Business Ethics.
19
5.7.1
Rules of conduct
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Processes.
20
6.1
Quality Policy
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6.1.1
Quality in Product..
20
6.1.2
Quality in People..
20
6.1.3
20
6.2.
Information flow..
20
6.2.1
Flat Structure.
20
6.3.
Essential Equipment.
21
Personnel.
22
7.1.
Curricula Vitae.
22
7.2.
Organizational structure..
22
7.3.
Business Strategy.
22
22
7.4.
23
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7.5.
Training
24
24
8.
Financials.....
25
9.
Action Plan..
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1.Executive summary
Organic Pot with tag line filled with nutrition is a first restaurant of its kind in Lahore that
will only use organic ingredients and provide unique variety at affordable prices to cater all
segments. Food offered will be gluten and nitrate free, not processed and make people aware
that how only one aspect that is Organic can make a huge difference towards healthy
lifestyle. It will help the customers to maintain balanced diet and protect them from diseases
like cancer, heart attacks and obesity issues associated with pesticides usage and fast growing
injections.
It is a sole proprietorship business that will be located in Gulberg Lahore, a place known for
food. As the restaurant will work on differentiating strategy unique indoor garden theme
ambiance will be provided to add more freshness to customers experience. Organic farm
(Zacky farms) will be the main supplier. Customers comfort will come first and to facilitate
them online reservations option will be provided on website that is still only limited to big
restaurants in Lahore.
Organic pot believes in penetrating the market in future and making their products most
voted by customers and later on more branches will be open up within Lahore as well as
other cities like Multan and Islamabad thus moving towards market development. In terms of
pricing, Organic Pot will use cost plus and psychological pricing strategies to attract
customers and maintain their market share. Promotions at this stage will be done through
social media and flyers. Quality policies and business ethics will be closely considered and
the business will be able to breakeven within 1 st year of its business and payback period of 13
months.
2.Industry Analysis
2.1.
Background
way which assures a healthy living. Thus it all sums up to promoting and
offering a healthier lifestyle at reasonable price rather than just food.
2.2.4. Functional and Symbolic attributes. Organic pots functional attributes will
be the good quality food and ambiance provided to the customers. Experienced
staff will be hired to provide personalised service to the customers. Symbolic
attributes will include the happiness and satisfaction that customers will feel
when the will leave the place. These points will be considered closely by
Organic pot in terms of its brand positioning.
2.3.
2.3.1. Lahoris love for food. In Pakistan an increasing trend is evident in food and
beverage industry. It is reflected that manufacturing sector of Pakistan major
share had moved from textile to food industry lately (Iqbal, 2014). This growing
trend is more evident in Lahore (City of Pakistan) due to their love for food as
well as presence of arable land. Lahoris are getting more and more inclined
towards eating out trend (Dawn Newspaper, 2016). However the previous
trend of fast food chain is changing towards more awareness for good quality,
variety and healthy food. Lahoris now want value for money and do not want to
compromise their health for taste only.
2.3.2. Contrasting Global trend. Globally consumers are moving towards more diet
conscious, nutritious and eco-friendly products (Mintel, 2016). This trend is
pertinent in Pakistan as well. A study highlighted it that people are moving
towards Food gardening trend where fresh ingredients are encouraged and are
paid for more rather than normal processed food (Vittles & Co., 2016).
2.3.3. No more compromising on Quality of Food. In a recent article 2 main
highlighted trends in food out of 5 were vegetables are the new meat and Go
organic. One of the local reason behind it is deteriorating quality of food
offered in restaurants and preference of fresh food after the Punjab Food
Authority raid episodes in many restaurants of Pakistan (Mazhar, 2016).
2.3.4. Organic Awareness. Eating right have become a lifestyle that encouraged
more of organic food consumption. According to Raza (2015) there are many
markets recently opened in Pakistan where fresh food ingredients are sold like
Farmers Markets, Khalis food Market, Zacky Farms ( Dairy products), Reefs
Organic Box etc. Awareness is moving towards chemical and gluten- free
products. These will be the potential suppliers for Organic Pot restaurant.
2.3.5. Environment Protection. Organic ingredients are known to be grown safer
with no pesticide usage making it more eco-friendly. Secondly organic
production reduces pollutants and emphasises conservation towards environment
(Khan, 2013).
2.3.6. Health consciousness. Consumers are getting more and more health
conscious and prefer natural ingredients in their food. Maor reason behind it is
growing allergies and obesity problems associated with processed food (The
Express Tribune, 2011). Many food companies are focusing on the tag line you
are what you eat and this not only helps in growing their businesses but also
promoting healthy living. It is also linked to presence of pesticides in processed
6
2.4.
restaurant is targeting people who want organic and chemical-free food thus
limiting their options as a result switching cost will be high.
2.4.5. Threat of Substitutes. Currently people are going back to avoiding use of
pesticides and are preferring organic ingredients that are fresh and ensure healthy
living. Under such scenario organic food is the best choice. Exceptionally in
future, if possible any new substitute to local or organic farming may arise that
can add value to restaurant offerings. Nevertheless currently organic food is the
best choice.
2.5.
PESTLE Analysis
(Pakistan Hotel and Restaurant Act, 1976, p. 23). Moreover it will require ISO
certification (9001) under the Pakistan standards and Quality control Authority
to assure quality control. To summarize, before opening of the restaurant a
license form will be submitted to Punjab food Authority and licensing related to
food and safety laws as well as restaurant licensing will take place (Punjab Food
Authority, 2011).
2.5.6. Environmental. Environmental protection Act, 1977 and Labour laws can be
considered as it will provide an edge to the business due to prioritising these
aspects as fundamentals of the business (Environmental Protection Act, 1977).
Issues like Global warming and in case of Lahore, inadequacy related to
infrastructure provided in agriculture sector may lead to environmental concerns.
Due to lack of infrastructure organic farming takes more time and effort as a
result risk of supplies shortage can arises (Ali, 2015). However Organic Pot can
take advantage of its image which promotes environment safety and healthy
lifestyle to gain consumer base.
2.6.
SWOT Analysis
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Factors
Internal Factors
Strengths
Product
Promotion
Price
Placement
People
Weaknesses
Skills
recipes every 3
months
Nutritional value
Maximising the use
of cost effective
strategies
Generating positive
word of mouth
through active
participation on
social media.
Highlighting
advantages of organic
food in promotions.
Price are set at
affordable level.
Psychological pricing
to attract more
customers.
Targeted to all
segments
Fresh, healthy and
unified image
Green garden theme
Possessing required
knowledge and skills.
Possess team work
expertise
No experience regarding
restaurant management.
Only initial training is
provided to waiters
Values
Empathy,
appreciation and
respect
Behaviours
Flexible and
Adaptable in
accordance with
external conditions.
To continuously monitor
staffs behaviour.
Attributes
Ingenuity.
Inventiveness
Able to get maximum
out of resources
available
Self-containment
Hard work
Factors
External factors
Opportunities
Political
Health regulations
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Threats
Loss of confidence in
3.The Product
3.1.
3.2.
3.3.
Core Business
3.3.1 Organic Food. Organic is a word that comes from organism meaning a
living entity. Initially it was like to vegetables and fruits that were grown in
fresh environment with using of pesticides. However later on non-vegetarian
form of organic food also came in. For instance chicken that are grown in fresh
environment with the use of hormonal injections come under organic category
(David, 2015).
3.3.2 Key Values and benefits. Organic pot with tag line filled with nutrition is
an organic restaurant concept that will sell food and beverages made up of fresh
and chemical-free ingredients. It will be a sole proprietorship business where one
person will be liable for everything. It will be open from 8 am till midnight. The
main concept behind this restaurant is to not only provide variety in food with
organic ingredients but also to assure health of its customers at affordable prices
(Appendix 1: Fig.1). Food offered will be gluten and nitrate free, made up of
organic ingredients that will not only please taste buds but will also give body
cells something healthy to chew on. It will help the customers to maintain
balanced diet and protect them from diseases like cancer, heart attacks and
obesity issues associated with pesticides usage and fast growing injections (Liu,
et al., 2013).
3.3.3 Customer experience and ambiance. It would not be an ordinary experience
instead such ambiance will be created that seems very close to nature. Customers
will feel they are sitting in an indoor garden with lots of greenery around and
having their food, thus adding a sense of freshness to the whole concept
(Appendix1: Fig.2). Soothing music will be played in the background to give
more calm and refreshing feeling. The general concept that healthy food means
less variety is changed and extensive variations from continental to desi, pizzas,
burgers, Salads and unique beverages will be provided to cater all segments.
Prices will also be kept affordable as the main differentiating point of the
restaurant is to promote healthy lifestyle (Appendix 1: Fig.1).
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3.3.4 Weekend Deals and up to date Menu. Weekend deals will be set up where
offerings like Order 2 main courses and get a free Salad of your choice will be
put forward to customers (Appendix 1: fig.3). This will not only add up to
promotion but also provide more options to customers. Further, menu will be
kept continuously up to date where after every 3 month some new dish will be
added up to maintain customers interest and thus providing them more variety.
3.4.
Differentiating factors
3.4.1 Initiating new trend in Lahore. One of the main edge for organic pot is that
3.5.
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3.5.1 Introduction stage. As far as the industry of organic food (food and
beverages) is concerned it is at the growing stage. More demand is increasing for
new variety of foods. In a report by BMI The food and beverage segment will
experience more positive investment, benefiting from growing household
spending and a large consumer base on the back of increased spending on
essential foods (BMI Research Group, 2016). On contrary as Organic Pot is
currently entering the market it is at introduction stage. It is coming with a main
differentiating point and that is of 100% Organic food variety. It is depicted that
with help of effective strategies and good marketing efforts Organic pot will be
able to excel in the market.
4.Market Research
4.1.
Market Share
4.1.1 Market Share of Organic Pot. There are currently no direct competitors for
Organic Pot in Lahore due to which market share will be quiet high. However if
compared with other fast food restaurants that can be linked indirectly due to
14
same industry in that case currently market share will be minimal. However the
trend for organic farming and consumption is boosting from last few years in
Lahore. In relation to PARC3, organic agriculture in 2005 was spread over 35000
acres which grew up to 180,000 acres in 2012. Another study conducted by
PARC highlighted that more than 50% farmers in Pakistan are moving towards
organic production and this number is projected to grow further in coming years
(Saeed, 2014). This data can well demonstrate that the demand for organic food
is increasing due to which it will be in peoples interest to get cooked organic
food conveniently.
4.1.2 Need for an Organic restaurant. Secondly obesity or weight management is
one of the main issue people face in Lahore. According to Dr Rustam Khan,
associate professor at the Aga Khan University Lahore, every fourth Pakistani is
obese. Fortunately, he added that due to media awareness for fitness is
increasing yet healthy food and routine plan for daily nutrition is necessary to
end health problems (Khan, 2013; Euromonitor International, 2015). In another
article relevant to Pakistan and that can be narrowed down to Lahore it is
mentioned, that due to billboards and junk food deals people used to get attracted
to fast food chains however awareness towards healthy food is increasing and yet
more needs to be done (Euromonitor International, 2015). Moreover, according
to a restaurant survey conducted by LUMS4 more than 65% people in 2015 are in
demand for healthy food regardless of prices (LUMS, 2015). This explains that
organic restaurant will be well in demand. In future if competitors initiate related
to organic food, even in that case innovative strategies are already implemented
in menu that will change every 3 months to maintain uniqueness and its position
in the market.
4.2.
4.3.
4.3.1 Target Markets. Organic pot will target all income groups as the restaurant is
offering food at affordable prices for everyone. The segmentation will be on the
basis of:
(a) Geographic, where people of Lahore city will be targeted as it is the main city
of Punjab and due to good climate and excessive water supply arable land is in
3 Pakistan Agriculture Research Council
4 Lahore university of Management sciences
15
excess. The agriculture sector relevant to Punjab accounts for about 20% of the
national GDP (Saeed, 2014). Thus adding organic ways to agriculture can give a
new meaning to healthy life. Secondly people of Lahore are known as food
lovers. They spend around 35- 40% of their income on food and the number is
even higher for middle lower class spending more than 50% of their income on
food (Pakistan Bureau of Statistcis, 2015). In future it is possible that other cities
like Karachi and Multan can be targeted by opening more branches however
current strategy is to focus on limited market to cater their needs on fullest.
(b) Demographic, where both genders and will be targeted as the nature of the
product is not gender specific and food comes under necessity bracket for all.
(c) Psychographic, People who value healthy lifestyle will be in limelight. Organic
pot will target, ones who want value for their money, focus on fitness and want
to live longer. According to Feerasta (2014) people of Pakistan especially living
in cities like Lahore and Karachi are getting more health and fitness conscious
and are continuously looking for ways to look young and fit.
4.4.
Change Anticipation
be limit by its size as currently it is estimated that the restaurant will be able to
cater around 60 people yet if the customers increase maybe in future it would
need expansion. For this, Organic pot can open new branches within Lahore as
well in other cities like Karachi and Islamabad. restaurant
5.Marketing Strategy
5.1.
Brand Image
5.1.1 Brand Name. The name Organic Pot is most suitable as it is very close to
the nature of the business. The word Organic literally means a living entity
and in terms of organic food it relates to the food that is fresh, chemical free and
grown in natural conditions (Paul & Rana, 2012; Counihan & Esterik, 2012).
When combined with Pot that is a storing or serving utencil, it provides an
image, that a bowl filled with nutrition is being served.
5.1.2 Restaurant Logo. A pot filled with green colour resembles nutrition and two
leaves on the side enhance the touch of freshness to the whole logo. A spoon and
steam is shown to add a sense of delicious freshly cooked food and is ready to be
served to its customers. Thus everything shown in the logo add significant
meaning towards the image of the restaurant.
5.1.3 Colour selection for logo. Green and brown are colours for earthiness and
nature as a result give more meaning to the theme of organic. Green colour
further adds freshness and environmental awareness aspect to the logo as well
that promotes no chemical usage in farming leading to better environment and
eliminates pollution. Moreover, use of red and orange colour for the name
promotes hunger and studies show that these colours are directly linked to food
cravings as well as are very eye catchy and attract customers (Ha, 2012). Thus
light background is provided to highlight all these meanings and each and every
bit of it is closely linked to the philosophy of the business.
5.2.
Pricing
5.2.1 Cost plus and psychological pricing. Organic Pot will use Cost plus pricing
strategy in combination with psychological pricing to attract customers and
maintain their market position. Cost plus pricing strategy is most suitable
17
5.3.
5.3.1
5.3.2
5.4.
Placement
Gulberg. It is assumed that the most suitable place for this restaurant will be
in Gulberg, Hotel one, Ground Floor. The reason to choose this place
includes:
Better customer base
Centre of Lahore
Place for Food Lovers
Not far from Suppliers
Rent. Rent will be paid one month in advance and followed by payment at
the end of every month. Rent is estimated to be around 1,200,000 Pakistan
Rupee. It is fully explain under financial section.
18
These will be mentioned on board outside the restaurant, menu card and on
the flyers that will be used for initial promotion.
5.5.
Promotional techniques
5.5.1
19
20
21
22
23
8. Financials
24
25
1.
26
1.
27
2.
3.
4.
5.
28
6.
29
7.
9.Action Plan
8.
9.
10.
11.
12.
13.
30
14.
References
15.
16.
17.
18.
19.
BMI Research. (2015). Pakistan Food and Drink Report. BMI Research
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20.
BMI Research Group. (2016). BMI Research :Pakistan Food and Drinks.
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22.
Counihan, C., & Esterik, P. V. (2012). Food and Culture: A Reader (3 ed.).
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Dawn Newspaper. (2016). Eating out trend at Boom. The Dawn Newspaper.
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Feerasta, S. (2014). Better sore than sorry: How to get a toned body. The
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Iqbal, S. (2014). Food and beverages in race with textile industry. Dawn
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Liu, R., Pieniak, Z., & Verbeke, W. (2013). Consumers' attitudes and
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41.
Pakistan Hotel and Restaurant Act. (1976). Pakistan Hotel and Restaurant
Act,1976. Pakistan Government.
42.
Paul, J., & Rana, J. (2012). Consumer behavior and purchase intention for
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44.
Raza, F. (2015). Go Natural: Organic food in Lahore and where to buy it.
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Surjushe, A., Vasani, R., & Saple, D. G. (2008). Aloe vera: A short review.
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The Express Tribune. (2011). Organic food: Back to the Basics. The Express
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Vittles & Co. (2016). 5 new food trends taking up Pakistan. Vittles & Co.
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