Final Project Chabba

CHABBA
DEDICATION
“We dedicate this project to our Parents, Family Members, and Teachers and to each
group member”. Because; whatever we are it’s because of our parents and Family
Member. Our teacher makes us able to face different challenges and win those
challenges. Last but not least group members, who support us a lot and contribute
their full effort to make this project possible. In the Last, Special Thanks our co-
coordinator Mr, Asad UlLah who helped us a lot and without whom it could might
never possible.
ACKNOWLEDGEMENT
We are grateful to ALLAH ALMIGHTY, for enabling us to fulfill this tiring, but
interesting job for the completion of our report. The present project is submitted to Mr. Khalid
Rasheed. We express our deep sense of indebtedness for his valuable advices and
encouragement and for giving us very useful information that helped us a lot in completing this
project. We also want to pay a bundle of thanks to each and every person who has put indeed
effort to make this project possible. It is also our duty to pay thanks to our parents for the moral
and financial support.
www.chabba.net.pk Page 1
CHABBA
EXECUTIVE SUMMARY
Opportunity
RICHEST CULTURE OF WORLD, PUJABI CULTURE CONTAINS SEVERAL DESSERTS

AND APPITIZERS WHICH NEED TO BE PROMOTED AND TO PROMOTE THEM IN
THE BENEFIT OF FOOD LOVERS AND THE PROFIT OF AN ORGANIZASION IS
ALWAYS BEEN A GREAT OPPORTUNITY.
This opportunity of promoting those products like Lacha, Golla and many other traditional foods
which are dying out from the food industry, is recognized by the owners of Chabba and they
decide to launch this business in the city of foods, Lahore. The major reasons that cause these
products to get die out are unhygienic and inappropriate procedures for their manufacturing.
People have start believing that these products are unhygienic for their health, which is true to a
great extent. Thus they are stop eating these products and now we can hardly see any person
selling the traditional snacks including Lacha, Golla, Gol Cape etc. Although there are some
restaurants in Lahore who are offering some traditional snacks but they are so much dispersed
that people hardly consume them.
Solution of a Problem
Faran Ali, current CEO of Chabba, recognized this problem and a solution of promoting these
products with their best quality in a healthy and traditional environment, in a cafe. For this he
contacts his different university fellows, who got quite a good experience in their related
professions. They all get together and develop a business plan for launching a new café with a
new product line ever.
Business Model
Business model of Chabba is quite simple and traditional. First, we identify and forecast the
demand for the traditional products that are dying out in our country due to different reasons. For
CHABBA
this we need an outlet, where we sell these products. Then suppliers will provide the vegetables,
spices, milk, fruits etc. they will provide this raw material on the daily basis, in order to make the
nutritious products. This raw material will be kept at the outlet, where they will be cooked and
served to the customers in the most traditional way.
Competitive Advantage
This business model of chabba has created a competitive advantage for it i.e. first mover
advantage in the restaurent line with such a new and innovative product line. Along with this the
strategic assets of chabba which includes its business model, product differentiation,
management team which combinable with core competency creates a sustainable advantage for
Chabba.
Target Market
Next basic step for introducing the Chabba is to identify the Target Market. For this, Chabba has
and psychologically and geographically segmented its market which includes all the food lovers
of Lahore city. After that Chabba has target the middle, upper and lower middle class including
children. These segments are more attractive and we are excluding lower class people on the
basis of their income. Our target market volume is almost every food lover but still we have
estimated a number of 405405 people living in different localities of Lahore, who have potential
to visit and buy Chabba’s products. This figure has been found out after a detailed segmentation,
multi segmentation and then it has been adjusted.
CHABBA
Target Market Calculation
Population of Lahore 7,000,000

Below Poverty line (40%) 2,800,000
Male population (45%) 1,890,000
2,310,000
Under 20yrs of age (40%) 924,000
No. of Housewives 1386,000
Lower Middle class/ Lower class 762,300
(55%) 623,700
Not interested (35%) 218,295
Potential customers 405,405
Management Team
The new venture depends heavily on its management team, their ways of doing work their
abilities and their experiences. The management team of Chabba is comprises of its four active
partners, which are:
CHABBA
Chief Executive Officer: Faran Ali, Finance/HR Manager: Maryam Zohra, Marketing Manager:
Hana Qureshi, Supply Chain Manager: Raza Mohsin Other professionals are discussed in the
report.
Brief Summary of Financial Projections
Chabba is a new business because of which it does not have any past financial data. Thus Chabba
has used the analysis and results of its survey in concept and usability testing, along with the past
financial data of its direct competitor, to estimate the projected sales, income statements, balance
sheets and cash flow statements for next three years. Chabba will open its first outlet at 32-B
lakshmi chowk, Lahore. Chabba has four active partners, who are fulfilling the whole capital
requirements for Chabba to meet its startup cost. The restaurent is in loss in first year and after
that in next two years it start generating profits.
Exit Strategy
Chabba after analyzing every risk and exit ways of the business have devised an exit strategy in
the case if the business plan does not work or either goes to investors. We have also made certain
clauses to recover the cost which would have been incurred on the project. The exit strategies of
Chabba are as follow:
 Legal documents of partnership will be signed by the partners that partnership will not be
resolve until 5 years.
 After five years if any partner wants to exit then he has to inform to the organization
atleast 1 year before.
 If any partner exits from the business, he or she will get his or her share after 3 years.
 In case of losses every partner will be just liable for their share in organization.
 In case of winding up the organization amount received from sale of asset will be divided
among partners and investors according to their shares.
CHABBA
THE BUSINESS
The Opportunity
RICHEST CULTURE OF WORLD, PUJABI CULTURE CONTAINS SEVERAL DESSERTS

AND APPITIZERS WHICH NEED TO BE PROMOTED AND TO PROMOTE THEM IN
THE BENEFIT OF FOOD LOVERS AND THE PROFIT OF AN ORGANIZASION IS
ALWAYS BEEN A GREAT OPPORTUNITY.
Lahore is the biggest city of Punjab and the most famous city of Pakistan for its foods. But in
such a big market of food, there is a market of some small and traditional foods which are
declining very fast. This food market contains small food products like Lacha (candy floss),
Golla, Bhel Puri, Ladoo Pethi, Khatte Khand etc. From many years our ancestors were eating
such things but now in this modern society, we are eliminating them with the reason that they are
unhygienic for health. This is because most of the people who sold these products use a big
wooden plate which people commonly known as Chabba. They move from street to street and
roads to roads to sell these products in open air, which is full of dust and pollution because of
several reasons. As a result people stop eating these products which in turn make people to stop
selling these products. Now we can hardly see a person, selling these products. This make
window of opportunity opens for entrepreneurs to re-launch or re- introduces these products.
This problem of unhygienic has became a biggest reason for these products to get declined and it
Needs to be and can be solved by adding a special and quite a different value.
This problem was identified by the CEO of Chabba, who after gaining a long experience of
about 12 years in a food chain, at London, came back to his homeland Pakistan to start his own
business. After coming back, he observed a big change. This change was due to the different
traditional products which were dying out. He identified the reasons and found that people still
like these products. Thus his experience and his love for his country’s traditions and values bring
CHABBA
him to a stage of re-launching these products in a best way, which leads him to the birth of a
restaurant, name Chabba.
OPPORTUNITY RECOGNITION
DESCRIPTION
Opportunity recognition is a creative process, which can be broken into five stages.
Preparation
Preparation stage of the recognition of the opportunity was the background of CEO. He belongs
to the rural area where he could find several delicious desi food items in his childhood.
Incubation
After coming back from London he found a great change which was the unavailability of
traditional food deserts which are rare now adays in urban areas of Pakistan.
Insight
CHABBA
After analyzing the problem, he came to an idea to promote these products in a restaurant which
is the new experiment for this product line.
Evaluation
After that he contact his two university friends, Raza Mohsin and Hanna Qureshi, that whether
the product idea is viable or not.
Elaboration
Then they contacted Maryam Zohra for finance, conduct all paper work and develop a business
plan.
SOLUTION TO THE PROBLEM
Chabba is promoting those products that are dying from our culture because of unhygienic
factor. At Chabba these products will be made in the best way to make them hygiene and to
improve their quality and then they will be served in a very pleasant traditional environment in
order to revive the tradition.
CHABBA
HISTORY
The CEO of our company Mr. .FARAN ALI who came back his home land after 12 years from
UNITED KINGDOM where he has been working in food chain restaurants as executive which
are famous for Pakistani traditional food . When he came back and realized that our tradition is
just dying out from the region like hair in butter. He really missed his childhood when he bought
foodstuff from street hawkers, dhabbas and chabbas but now people are more conscious about
their health and they know that how unhygienic factor is effecting their health in this increasing
polluted environment that why the food stuff like laacha, golaa, shakr kandi and the other things
like that these were sold at chabbas not available now. To see the demand of these foodstuffs
among the people Mr. Faran who has prior experience in same field decided to give birth to new
traditional restaurant which named as CHABBA. Mr. FARAN has done MBA in finance,
marketing, and course in hotel management and during his business he earned a lot. He contacts
his university friends who also experts in their fields and discussed his idea with them and finally
decided to open CHABBA.
CHABBA
MISSION STATEMENT
“TO REVIVE OUR TRADITION BY PROVIDING OUR

CUSTOMERS VALUE ADDED FOOD STUFF”
VISION STATEMENT
“CHABBA ADDING TASTE IN YOUR LIFE BY PROVIDING RARE CULTURAL
FOOD IN THE BENEFIT OF ORGANIZATION”
OBJECTIVES
The main objective of Chabba is to revive the tradition.

Chabba’s objective is to promote the product lines, which are dying out from our culture.
Chabba has the first mover advantage and it will compete with its competitors to sustain
that advantage.
Chabba wants to gain the maximum market share.
Chabba wants to provide the maximum value to its customers and its stakeholders.
CHABBA
BUSINESS MODEL
CHABBA
Description Of Business Model
Business model of Chabba is quite simple and traditional. First, we identify and forecast the
demand for the traditional products that are dying out in our country due to different reasons. For
this we need an outlet, where we sell these products. Then suppliers will provide the vegetables,
spices, milk, fruits etc. they will provide this raw material on the daily basis, in order to make the
nutritious products. This raw material will be kept at the outlet, where they will be cooked and
served to the customers in the most traditional way.
Description Of Target Market
CHABBA
TARGET MARKET
Products at Chabba are not so much expensive, so everyone can afford it.
Social Economic Class A includes upper or elite class

Social Economic Class B includes upper middle income class people.
Social Economic Class C includes lower middle class people.
S
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CHABBA
SUSTAINABLE COMPETITIVE ADVANTAGE
Sustainable competitive advantage is made by the combination of two elements that includes,
Core competency
First element is core competency which is a competitive advantage of a company. Chabba is re-
introducing those products that are dying out. These products had never been sold in any
restaurant or café. So Chabba has a First Mover Advantage with lower production cost as its core
competency.
Strategic Asset
Chabba has its business model, product differentiation, management team as its strategic assets,
which combinable with core competency creates a sustainable advantage for Chabba.
CHABBA
CURRENT STATUS AND REQUIREMENTS
Chabba has a first mover advantage in a sense that no café or restaurant is having such products.
Every café and restaurant in the market is his direct competitors. Thus we can define our current
status and requirements,
Current status
Chabba is currently in an introductory stage. We have finance and budget of 5 million PKR
under which they have to cover their all expenses. The management team has gone through all its
legal documentation with all terms and conditions for the business that they have decided to
launch. The first outlet of Chabba is going to be at Lakshmi Chowk.
Future requirements
Firstly, Chabba needs a building to operate and then it will hire employees like chefs, security
guard, waiters etc. They will also have to purchase raw material. After meeting all the operating
expenses it will need some money or loan to meet further expenses.
CHABBA
MANAGEMENT TEAM
Management Ability And Experience
The management team of Chabba is quite innovative and the experience is one of their strength.
They have spent quite a long time in their related fields, which make them to understand the pros
and cons of this industry. The management team of Chabba and their experience is as follow:
Chief Executive Officer
Faran Ali is a CEO of Chabba. He did his MBA in marketing and finance along with hotel
management course, from Kingston University at London. After that he worked for a food chain
as a marketing manager for 12 years. Thus he has an ability to identify and understand the
demands of customers.
Supply Chain Manager
Raza Mohsin is a Supply manager of Chabba. He worked in Avari for 6 years as an Assistant of
supply chain manager. Thus he has developed a good network over there with suppliers in the
market.
Finance/HR Manager
Maryam Zohra is the finance and HR manager of Chabba. She had also done her MBA in
finance from Kingston University and 2 years diploma in HRM, after which she worked as a
finance manager in HBL for quite a long time. Thus she very well know the financial
requirements for starting a new business.
CHABBA
Marketing Manager
Hana Qureshi is the marketing manager of Chabba. She had also done her MBA in marketing
and advertisement from Kingston and now she’s working in an advertisement firm.
Other Professionals
Other professionals of Chabba include:
Head Chef
Front Desk Manager
KEY PROFESSIONAL SERVICE PROVIDERS
Law Firm:
KHALID LAW ASSOCIATES
Chabba has contacted to Mr. Ch. Khalid Pervaiz who is an Advocate of High Court and
member of Lahore High Court Bar Association, to handle our legal issues like employee’s law,
environmental regulations, property and estate, assets, finance and securities etc. He is providing
his services to Chabba for free of cost.
Mob: 0300-4531534
5- Mozang, Lahore
Accounting and Business Consultancy Firm
Chabba do not require any accounting and business consultation firm to operate their functions.
CHABBA
ADVISORY BOARD
Chabba’s board of advisors includes the following personals:
Mr. Khalid Pervaiz (Advocate High Court)

Mr. Zia Ullah Malik (Deputy General & Area Manager, HBL)
Mr. Saleem Malik (Owner of pizza planet, UK)
These personals are involved in providing advice and guidance to Chabba.
CHABBA
BUSINESS ANGELS
DESCRIPTION OF BUSINESS ANGELS
MR USMAN AKRAM MALIK is operational & maintenance project manager in simen

Pakistan engineering CO.LTD
MR ZAFAR NAZIR the managing director of Wahab wood industry who will provide
furniture in our outlet without any cost.
MISS WRDAH ALAM has running an advertising agency named as COCKTAIL (the
creative company) who will help in our interior designing etc.
CHABBA
ORGANIZATIONAL STRUCTURE
Organizational Chart
CHABBA
DESCRIPTION OF ORGANIZATION CHAT
Supply Chain Department
Chabba wants to provide the best quality in their food, which needs proper supply of food
material. Thus Supply Chain department will focus on the regular and proper supply of raw
material, which is needed on the daily basis. This department is going to be headed by Raza
Mohsin.
Human Resource Department
This department will focus on the identifying the demand and number of employees that are
required in the outlet. It will set the rules and policies for employees along with the planning of
recruiting and selecting best employees.
Finance Department
This department main focus is to handle all the financial aspects of the business. This will also be
responsible in establishing budget policies while seeing the financial status of Chabba.
Marketing Department
This department will mainly focus on advertisement, sales promotions, and awareness campaigns
through different mediums.
Quality Control Department
Chabba’s main focus is on the quality of the products, which it is going to offer. This department
will be responsible for making sure the best quality of its raw material and products.
CHABBA
JOB DESCRIPTION OF EMPLOYEES

Hr manager
Key responsibility
The main objective of the manager is to develop the recruitment, selection, orientation,
motivation and evaluation of the employees on their performance, performance appraisal and
retrenchment programs. Candidate should have knowledge about represent our brand
confidentially
Job requirement
Job title: HRM Manager
Job type: permanent
Job location: Lahore
Minimum education: Master’s degree
Degree title MBA in HRM,
Experience: 3-4 years in related field
Marketing manager
Key responsibility
The main objective of the manager is to promote sales by create awareness among targeted
people highly focus on the advertisement and to represent our restaurant brand confidentially as
national wise.
CHABBA
Job requirement:-
Job title: marketing Manager
Job type: permanent
Degree title MBA in Marketing,
Finance manager
Key responsibility
The managers of this post handle our financial aspect. The candidate should have knowledge
about how to establish budget policies and know how to prepare final report, audit report and tax
payroll.
Job requirement
Job title: finance manager
Job type: permanent
Degree title MBA in finance
Supply chain manager
Key responsibility
CHABBA
The candidate should have strong public network and able to handle all the proper supply food
material. The need of raw material is properly full on daily basis. The candidate should represent
our brand good in public and supplier’s eyes.
Job requirement
Job title: supply chain manager
Job type: permanent
Degree title MBA in marketing/HR/FINANCE (but having good network)
Experience: 3-4 years in related field.
Other employees JD’s
Key responsibility
The candidates of these posts should have knowledge about how to manage different task of
restaurants. They are able to supervise and control all tasks in restaurants as to the requirement.
They should create good and friendly environment in the restaurant and should promote our
restaurant among public.
Job requirement
Job title: operational manager/ food manager/ brand manager
Job type: permanent
Minimum education: Master’s/bachelor’s (hons) degree
Degree title: specialization in marketing/HR/FINANCE (but having good network)
CHABBA
LEGAL FORM OF OWNERSHIP
Chabba is generally a partnership business. Chabba is registered under the company’s ordinance
1932.
Ownership Status
Chabba, being a startup business, have two kinds of partners. These two kinds are
Active partners
Nominal Partners
Active Partners
Faran, Maryam, Hana and Raza are the active partners of Chabba.which are pooling in the
finance as well as their efforts to make chabba growing and profitable.
Nominal Partners
Mr. Saleem is nominal partner of Chabba. We are the name of their pizza chain in our marketing
campaign.
Owners Liability
Owner’s liability in Chabba is limited which means that each owner is liable to the organization,
only to the extent of his or her share in the capital.
Continuity Of The Business
In case if any of the members of the organization gets deceased or gets retired from the
organization then it will not harm the continuity of the business. The transfer of the interest of
CHABBA
that member will be done as per the terms and conditions described in the bylaws of the
company.
Profits And Losses Distribution
Profits earned and losses faced by the organization will be divided among all the members of the
organization on the basis of their capital investments in the organization.
CHABBA
INDUSTRY ANALYSIS
Industry Description
Lahore is always famous for its traditional foods. These traditional foods are one of the major
parts of Pakistan’s culture. In such a huge industry of food, our culture is losing some traditional
foods like Lacha, Golla etc. Chabba is entering into this big food industry, by first time
promoting these dying products, in order to revive the traditions of our culture by providing our
customers value added food stuff. We have analyzed the approximate numbers of competitors in
the market, size of industry, industry attractiveness, and the potential profits. We have also
examined the problem that we could face by entering into this industry along with the strategies
to cope up with them.
Industry Trends
Studying about industry trends is one of the first and most important steps in conducting industry
analysis. This industry is helpful in analyzing and identifying the threats and profits in the
industry. We can study these trends from different data’s that are available in different sources,
which includes:
National Restaurant Association

State and Local Restaurant Associations
Industry Groups (such as the International Foodservice Manufacturers Association)
Industry Publications
The trend about the food and restaurant industry shows that people are moving a lot towards fast
foods. They found their traditional foods like candy floss, Golla, chats etc to be unhygienic for
the health, as these products are cook in an unhealthy environment. This cause many traditional
CHABBA
foods to be died. Analyzing this opportunity Chabba is promoting these products by adding the
hygienic factor in them, to create value for the food lovers.
Industrial trends can be measured by following factors:
Organizational Environment
In organizational environment we have:
External environment
External environment of any company includes the following two factors:
1- INDUSTRY ENVIRONMENT
2- MACRO ENVIRONMENT
Industry Environment
In industrial environment following factors can greatly influence the Chabba:
Threat of new entrants

Bargaining power of buyer
Bargaining power of supplier
Rivalry among competitors
Substitutability
CHABBA
Threat Of New Entrant (HIGH)
Threat of new entrants for Chabba is high. This is because restaurant industry is a growing
industry, with large numbers of competitors and profits. This attracts the new entrants to get
enter into this industry.
Rivalry Among Competitors (HIGH)
Chabba has a high rivalry among its competitors because it has huge number of indirect and
direct competitors in the industry, which creates an intense competition.
Substitutability (HIGH)
Substitutability for our Chabba is very high. Every restaurants and cafes is the substitute of
Chabba.
Bargaining power of Buyer (HIGH)
Bargaining power of the buyer with Chabba is high because of the availability of so many
substitutes and competitors in the industry.
Bargaining Power Of The Supplier (LOW)
Bargaining power of the supplier is low because of the availability of large number of suppliers
in the market.
CHABBA
PORTER’S MODEL
Macro
Environment
Economic force
Political Legal (high)
Forces (High)
Industry Environment
Bargaining Power of Buyers (high)

Threat of New Entrants (high)
Rivalry among the Competitors (high) Bargaining Power of Suppliers (low)

( Low)
( High)
Threat of Substitute Products (Medium)
Technological
Social Forces Forces (medium)
(high)
CHABBA
POSITION AS PER THE PORTER GENERIC

STRATEGIC MODEL
Before assigning a position to our brand in the porter generic strategy model we should
go through following attributes of our product:
The competitive scope of our brand is very narrowly defined because we are a small
business concern at the moment.
CHABBA
The distinctive features of our product like its effectiveness for the mothers.
We will carry on our business operations in a highly in competitive and newly discovered
niche.
After discussing the above points we can now say that our strategy will be the
differentiation focus strategy as per PGSM.
COMPETITIVE GRID
COMPETITIVE FORCES THREAT TO INDUSTRY PROFITABILITY

LOW MEDIUM HIGH
THREATS OF NEW 
ENTRANTS
BARGAINING POWER OF 
BUYER
BARGAINIG POWER OF 
SUPPLIER
RIVILARY AMONG 
COMPETITORS
THREATS OF SUBSTITUES 
CHABBA
COMPETIVE ANALYSIS GRID FOR CHABBA
NAME CHABBA LAHORE DHABA VILLAGE

CHATKHARA (salt n
pepper)
Product Chabba is Lahore Some It offers
features offering chatkhara products many
Lacha, offer very few like as in products
Dhosa, products that chabba like chabba
Flafer Raj are available
kachori, and at chabba
many more
other
products
that are not
available at
any of its
competitors.
Brand name Chabba is a it has a very It has also Village has
recognition new brand good brand a good an
so it has less image brand excellent
brand name name brand
recognition recognition name
recognition
Compatibilit Good Very good Good Very good
y of products
with popular
platform
Access to Chabba has it has its own Own Own
distribution its own distribution distributio distribution
channels distribution channel but n channel channel
and product do not offer but do not but do not
delivery home offer home offer home
channel and delivery delivery delivery
also offer
home
delivery
CHABBA
Quality of Chabba is Good Good Very good

products offering high
quality
products
Ease of use These Good for Good for Good for
products are health health health
healthy for
health
Price Offering low High prices Bit high High then
prices then chabba than chabba
chabba
Marketing Not Not - -
support applicable applicable
Quality of High Good Good Good
customer
service
CHABBA
MACRO ENVIRONMENT
Macro environment of Chabba includes the following factors:
Political Forces
Legal & political forces are much important for each & every industry. So such forces can highly
influence any company. In Pakistan, there is so much political instability that it can highly
influence Chabba to operate.
Technological Forces
Technological factor is involved in this project in a way that customers e.g. upper class, schools,
universities etc can order products online for parties or ceremonies. Then Chabba will use the
best technology in the manufacturing of its products
Social Forces
Social forces of any country show how the values, needs and culture of that country’s people can
affect the organization. In case of Chabba, this factor would highly influence the organization
because Chabba is reviving the tradition of Pakistan.
Economic Forces
Economic forces of any country can affect the availability, production and distribution of
resources among competing users. Now a day in Pakistan inflation is prevailing and it can affect
Chabba to a great extent. But along with this Chabba’s products are of low cost that is affordable
for our targeted customers.
CHABBA
The analyses of trends described above reflect a good position for Chabba, in the industry.
CHABBA
Industry Size
Lahore has always been famous for its different kinds of foods, which includes a wide range of
competitors. Thus food industry of Lahore is one of the biggest industries. This also shows that
the size of this industry is very large due to the presence various competitors and large number of
competitors.
Industry Attractiveness
Chabba is entering into restaurant industry. Restaurant industry is a growing industry, which
reflects high return on investment. There are high profits in this industry, if a restaurant uses the
appropriate strategies to capture the market share. Restaurant Industry is quite a huge industry,
which contains a large number of competitors that has created an intense competition among the
rivals, for their survival. But along with this restaurant industry contains a large number of
customers that creates an opportunity for a start up to attract more customers in order to generate
high profits.
Profit Potential
Chabba has high profit potential as its production cost is quite low. And due to the attractive
industry a large number of customers are available which will cause high profitability.
Customers always want something good and new, and thus Chabba is focusing on providing
them different products from their competitors to gain customer attraction which in turn would
generate high profits.
CHABBA
Industry life cycle
In industry life cycle food industry is at the growth stage, which reflects high return on
investment. There are high profits in this industry, but there is still need to create
awareness among the public to appreciate this industry to take it maturity stage.
Growth
stage food
industry
Maturity stage
Decline stage
Beginning stage
CHABBA
SWOT ANALYSIS
Strengths
Reviving the tradition for the first time
First mover advantage, by offering a specific product line
Quality product
Lower cost and selling price from the competitors
Healthy and traditional environment
Weakness
Less exposure in market
Lack of awareness among the public
Opportunities
Growing Industry
Attractive business
Good profits
Threats
Government restrictions
Taxes
Lowering of prices by the competitors
Family cultur
CHABBA
S.W.O.T PORTFOLIO FRAMEWORK

Competitive status of the Corporation Business
Units
STRONG AVERAGE WEEK
S COMPARTMENT-A COMPARTMENT-D COMPARTMENT-G
1. Internal Growth 1. Mergers 1. Turnaround

T
2. Vertical
A Integration 2. vertical 2. Divestment
of related Business Integration
T 3. Mergers
Abundant
4. Horizontal 3. Strategic
U
Integration Alliance
Opportunities
S
COMPARTMENT-B COMPARTMENT-E COMPARTMENT-H
E 1. Vertical 1. Stability
Moderate 1. Turnaround
O Integration
N of related Business 2. Mergers
F Opportunities/ 2. Diversment
V 2. Horizontal related 3. Horizontal
Diversification Integration
E
I
R 4. Strategic
X
Alliance
T O Critical 5. Diversment
E N Threats
COMPARTMENT-C COMPARTMENT-F COMPARTMENT-I
R
M
1. Horizontal 1. Diversment
N
E relatedDiversificatio 1. Liquidation
A n 2. Horizontal
N 2.Conglomerate related
L 3. Vertical Diversification
T Integration of
Business 3. Horizontal
4. Diversment Unrelated
Diversification
4. Stability
S.W.O.T (TOWS) MATRIX

CHABBA
Internal STRENGTH WEAKNESS

Facts
 Reviving the tradition for  Less exposure in
the first time market
 First mover advantages,  Lack of awareness
by offering specific among the public
product line
 Quality product
 Lower cost and selling
price from the competitors
External Facts
 Healthy and traditional
environment
OPPORTUNITIES S.T STARTEGIES W.O STRATEGIES
 Growing Industry  Low cost structure  Solid awareness

 Attractive business  Penetration pricing  Campaign.
 Good profits  Specific product line  To get maximum market
 Healthy traditional share by qualities
operation
environment
THREATS S.T STRATEGIES W. T. STRATEGIES
 Government  Specialized in field  Solid awareness campaign

restrictions  Low cost structure  Cost based strategy
 Taxes  Healthy traditional
 Lowering of prices by environment
the competitors
 Family culture
TARGET MARKET
Target Market Customer Volume
CHABBA
Our target market volume is almost every food lover but still we have estimated a number of
405405 people living in different localities of Lahore, who have potential to visit and buy
Chabba’s products. This figure has been found out after a detailed segmentation, multi
segmentation and then it has been adjusted.
Target Market Calculation
Population of Lahore 7,000,000

Below Poverty line (40%) 2,800,000
Male population (45%) 1,890,000
2,310,000
Under 20yrs of age (40%) 924,000
No. of Housewives 1386,000

Lower Middle class/ Lower class (55%) 762,300
Not interested (35%) 623,700

Potential customers 218,295
405,405
Target Segment
CHABBA
Our target segment are all the people of Lahore, who are food lovers, which includes upper,
middle and lower middle class. Along with this Chabba has segmented its target segment into the
following category:
Geographical Segmentation
Chabba is a start up business; therefore it has geographically segmented its target market. This
geographical region is LAHORE, city of foods.
Psychological Segmentation
Psychologically targeting, Chabba is concentrating its focus on Elite class, Middle Class and
Lower Middle class.
Target Market
According to above segmentation we are able to target our market, which belongs to almost
every age group but it excludes people above 60. And this target market includes all the areas of
Lahore. Even an average income person can afford and enjoy his past consuming habits in a
present and modern scenario under the one roof. Chabba not only provides the products but also
added the value towards its traditional services.
COMPETITIVE POSITION WITHIN TARGET MARKET
CHABBA
Competitor Analysis
Competitors of Chabba fall into the

following categories:
Direct competitors
Very few direct competitors of

Chabba include some restaurants. In these restaurants, some few products like Chabba, which
includes Golla, Chats etc are available along with a wide range of different foods, which
suppress their presence e.g.
LAHORE CHATKHARA at M.M. Alam Road,

VILLAGE
DHERA
DHAB
Indirect Competitors
Chabba has 2 types of indirect competitors.
1. Competitors With Same Product Line
This includes all of the people, who are selling their products on CHABBA’S or on CARTS
which they have either one or two of the same product that are available at Chabba or some other
product.
2. Competitors With Different Product Line
This includes all the other restaurants and cafes than those described above
CHABBA
MARKETING PLAN
MARKETING DEPARTMENT:
Awareness campaign
We will create awareness about our products of CHABBA through the use of different mediums.
In this campaign we are focusing on our products, reasons that why we are launching this
business, how we are different from others and how Chabba will use standard quality in its
products. We use broachers, leaflet, billboards, print media and cable ads to make people
awareness about Chabba.
Sales Forecasting Procedures
Different sales forecasting procedures will be adopted by Chabba depending upon the type of the
available data for the forecasting.
The methods can be any of these:
Consumer survey
Sales force survey
Chain ratio method
Detailed statistical analysis
Being a start up firm Chabba does not have any past data, so it has used its consumer
survey in 1st forecasting.
CHABBA
MARKETING DEPARTMENT’S ORGANIZATIONAL

STRUCTURE
The department of marketing in Chabba will be formed after taking into account the need of
marketing efforts that are required for Chabba.
Key positions in marketing structure of Chabba are as following:
Manager (marketing)
Manager (product planning)
Manager (marketing research)
Manager (sales & promotion)
Manager (brand)
CHABBA
MARKETING OBJECTIVES
As far as the marketing objectives are concerned we have to differentiate the overall goals from
the specific marketing goals. The description of these goals is as below.
Over All Marketing Goals For First Five Years
The overall marketing goals targeted by Chabba cover a wide range of the potential
aspects that are necessary for a new business concern to flourish. This includes the
following:
Chabba will make its products valuable to its customers through marketing campaign.
To counter the campaigns run by the competitors whether direct or indirect in order to
protect and promote our brand image.
To locate and target the substantial business opportunities in the market for the
organization.
Specific Goals For The First Year
The specific goals in terms of marketing are listed as below
Estimated Sales Target
We have subdivided the sales target of the first year after keeping in view the adoption diffusion
process of demand generation.
The sales figures for the relevant demand portions are listed here as below:
CHABBA
Portion title %age Size Time required
(years)
innovators 2.5 10135 01
Early adopters 13.5 54730 02
Early majority 34 137838 04
Late majority 34 137838 04
Laggards 16 64864 03
TOTAL 100 405,405 14
Estimated Market Share
Out of the whole industry of Lahore we are willing to capture the market share in the following
pattern with the help of our quality products and strong marketing campaign.
Innovators (2.5%) in the first 12 months

Early adopters (13.5%) up to the 24th month
Early majority (34%) up to the end of the four year.
Late majority (34%) up to the end of 4 years.
Laggards (16%) up to the end of 3 years.
CHABBA
MARKETING MIX
Product Planning:
In product planning we will be focusing on product portfolio management Total Quality

Management (TQM) and also the strategic decision making of our product. Chabba’s product
line contains those food products that are dying out from our culture and this product line is
different from its direct and indirect competitors to a great extent. A company can provide the
customer satisfaction on the basis of different aspects like Quality, Benefits, Packaging and so
on. Thus according to Chabba, quality is;
“When our customers come back, having full satisfaction in their heart, for
Chabba’s quality”
The main factors included in product strategy session are:
CHABBA
Total Quality Management
Chabba will use the approach known as Total Quality Management (TQM), in order to further
increase the quality of its products. In this approach the whole human resource of Chabba will be
involved to in the quality process.
ISO Certification
Chabba is certified from ISO, for providing the good quality which make its food products more
hygiene for customers.
Product Development
It’s a key issue in the life of every organization to absorb immense competitive pressure.
Chabba is introducing those products that are dying out from our culture, by adding a value
(quality) in them in an already existing market. Therefore Chabba is following the product
development.
The Innovation Strategies
Innovation strategies being used at Chabba are either offensive strategies or opportunist or the
combination of both, depends upon the market and strategy risk. Development of Chabba is an
indication of our offensive strategy
Features and Benefits
The products that are offered by Chabba are dying out from our food industry due to unhygienic,
poor methods of production and use of old machinery. For this purpose Chabba has hired the
qualified chef, who will make these products in a clean environment by taking each possible
CHABBA
precaution to make them hygiene for health. Along with this Chabba will serve it’s products in
totally traditional environment, to make people feel comfort.
Success Rate Of Product

Following measures will be taken before and after launching Chabba:
More pre development work (the home work) will be done before the launch of Chabba
into the market.
A well conceived and properly executed launch will be made possible to make it a
success.
It will be made possible that all the resources must be in place in order to fully operate.
Product Life Cycle
In product life cycle Chabba is on the introductory stage, where it has low or almost no profits
but on the basis of its strategies it will soon recover the breakeven point.
CHABBA
St
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of
pr
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lif
CHABBA
POSITION IN THE BOSTON CONSULTING

GROUP MATRIX
The position of our product in the BCG matrix can be identified on the basis of following facts
regarding our product:
Industry growth rate is very high

low market share is there for the product
the product has strong differential advantage
Huge marketing efforts are required to make the product a star.
After considering all the above mentioned facts we can say that our product will be a
QUESTION MARK (?).
REVISED BCG MATRIX
CHABBA
CHABBA
Chabba’s Image As Brand
The image of Chabba as a brand will be shaped as a value added and different from the products
that are already available in the market. For this, the marketing efforts will be done to take a
special and different position among the targeted customers.
Branding Strategy
Chabba will be promoting as an entirely different and new brand in the market with its unique
and distinctive attributes. It is a brand of different shades (attributes) for different demand
clusters present in the market.
Product Category
Chabba can be categorized as a new brand with different food category among the food lovers in
the Lahore, which needs intensified marketing efforts.
Brand Positioning
Chabba will position its brand among customers on the basis of the following:
Desirable Benefits
Chabba is introducing a product line that is the part of culture from many years and we people,
our ancestors were like to eat these products. But now they have become unhygienic to our
health, but Chabba is promoting them for the first time by adding benefits like product
differentiation, quality and so on.
CHABBA
Beliefs and Value
As Chabba is REVIVING THE TRADITION, by providing a food line that have a strong
cultural acceptance but are dying out because of poor precautions people took in their
manufacturing. In short Chabba is promoting the beliefs and values of culture.
Brand Development Strategy
In brand development strategy Chabba will be focusing on promoting those products in the food
category, which will be on the dying stage because of any reason. Thus for brand development
strategy Chabba will be focusing on Line Extension.
Usability Testing
Chabba has conducted a usability testing in which a sample of people was offered different
products to eat. All of they found Chabba’s product as of good quality and tastes, after which we
have conducted a concept testing, which is described on the next page.
Concept Testing
In concept testing we have conducted a questionnaire survey which was filled by a sample that is
very fond of food. In that questionnaire we asked them different questions related to our project.
This questionnaire helps them to understand the concept behind launching the Chabba.
And after analyzing the idea we have found that people are ready or love to have such
restaurant.
CHABBA
THE QUESTIONNAIRE
1. Have you ever had an experience of Punjabi
traditional snacks?
22%
yes no
78%
2. Do you think Punjabi traditional snacks are dying out

now?
25%
yes no
75%
CHABBA
3. Do you think they should be revived?
20%
yes
no
80%
4. Should they be revived in improved form?
18%
yes
no
82%
CHABBA
6. & clean packing with good quality, would you go

for it?
5%
we would like to go
we would not like to go
95%
7. Does atmosphere matters customers at the food

/snacks places?
30%
yes
no
70%
CHABBA
8. Which traditional snacks would you love to have in

the improved form?
5%
16% 26%
Lacha
Gola
Dhosa
11% Bhel puri
Channa chaat
Ladoo peethi
12%
30%
9.
11%
11%
kanji
5% satoo
raw
fresh juices
sharbat-e-sandal
74%
Which traditional drinks would you love to have in

the improved form?
CHABBA
PRICING STRATEGIES
Chabba is a new business, so it cannot offer very high prices for its products.
Pricing Objectives
Chabba wants to have high growth rate hence we have to set that price for our product which
gives us maximum possible profits in the initial stage of our organization. In pricing, Chabba is
focusing in the following strategies:
Market Penetration Strategy
Chabba is using market penetration strategy in which Chabba is offering high quality products on
the lower prices, in order to capture high market share.
Cost Based Strategy
For the pricing of products Chabba is following the cost based strategy, in which Chabba has
decided to take 30% markup on cost price of each product, in order to cover up the cost and to
reach near the breakeven point.
CHABBA
PRICING STRUCTURE
Products Cost Markup Selling price

Chabby Dy Khaby 30%
Chicken kachori 35 15 50
Raj kachori 28 12 40
Paw bhaji 105 45 150
Flafer (palak) 59 26 85
Flafer (Chicken 66 29 95
addition)
dhosa 52 23 75
Chaana chat 35 15 50
Dahi bhaly 35 15 50
Fruit chat 35 15 50
pathooray 42 18 60
Samosa (veg) 10 5 15
chicken 17 8 25
Khaty khand with 102 45 150

basin ki roti
Pani puri 35 15 50
Ladoo peethi 28 12 40
Special cholay 17 8 25
Halwa puri 42 18 60
Puri kubab 66 29 95
Murgh chaane 28 12 40
tawa piece 66 29 95
nihari 42 18 60
haleem 42 18 60
Alu paratha 21 9 30
Qeema/chicken 28 12 40
paratha
Paratha omlet 24 11 35
Achar paratha 21 9 30
Nan (saadah) 14 6 20
Nan (afghani) 24 11 35
CHABBA
Meeth Methoray
lacha 14 6 20
Gulab jamun 24 11 35
Barfi(1/4kg) 28 12 40
Jalabiyan 28 12 40
khatayan 14 6 20
pateesa 14 6 20
Pura 21 9 30
Firni 21 9 30
Cream puff 28 12 40
Marunda 14 6 20
Kulfa 28 12 40
Kulfi 14 6 20
Sohan halwa 24 11 35
Gajar halwa(1/4kg) 28 12 40
Dal halwa 28 12 40
Pathay halwa 28 12 40
Chabby Dy
Mashroobat
Gola 24 11 35
Raw 14 6 20
Kanji 14 6 20
Satoo 14 6 20
Lassi 21 9 30
Kawa 14 6 20
Chae 14 6 20
Rabri dhhod 28 12 40
Leemu pani 17 8 25
Fresh juice Depend on the price
Cocktail of the fruits/veg
Milk Shakes
CHABBA
PROMOTION
Creating Awareness about the reason for launching Chabba

Creating awareness about traditional foods:
Marketing communication strategy

We will use pull strategy which involves promoting heavily to end users which will create a
demand that will pull the products through the distribution channels.
Type of campaign
CHABBA
Our campaign for Chabba will be product differentiation long with quality focusing the USP
(unique selling proposition) which aims at showing that how the products of Chabba is better
than that of other brands available in the market by focusing on the key attributes of the Chabba.
As USP is only effective when it has something for the customers so it’s the right campaign
format for the Chabba.
Integration Of Marketing Communications
With the passage of time it has become the need of the
Organizations to integrate and orchestrate all of their marketing communications efforts.

Especially when an organization is a new entrant in the market it’s important that same massage
is being relayed from all the communication mediums regarding the product and the
organization.
In this context we are discussing following levels of integration at which company is operating
and at which company will be after some time period:
In the start of our business we will be working on formal integration which assures that
same logo, corporate colors, graphic approach and traditional styles are being used for all
communications.
After becoming a well reputed brand (both as a company and products) we will apply
inter-organizational integration. This will orchestrate all of the communication efforts
done inside as well as outside the organization.
Contingent Marketing Planning
If at any stage our organization feels that our marketing plan is not in accordance with the
situation faced by the organization, at that moment Chabba will adopt a proactive approach and
appropriate measures will be taken accordingly.
CHABBA
Process For Revising The Marketing Plan
After visualizing the disagreement between our marketing strategies and the market conditions
revision will be done in following way;
Detailed inspection of the issue faced by the brand in the market.
Identification of the key strategies causing failure and which need to be revised instantly.
Estimating the tolerance level of the ongoing business operations towards changes
required for the contingency plan.
Creating a detailed revision strategy with the help of the action plans (hoshins).
Channels of advertisement
Word of mouth
Personal relations
Media
Internet (web site
Word of mouth:
CHABBA
According to research conducted by an international marketing research firm words of mouth

are the biggest source of publicity as one person aware of the product would tell many people
about it.
The major part of our promotion emphasizes on the words of mouth .Which means we are
going to different target people who would be an excellent source then we are going to
explain them about the Chabba and its products and benefit and if they get convinced they
are going to promote it by the other people who might be in their neighborhoods or family
members. This basically includes families, children etc…
CHABBA
We can also purchase word of mouth by giving a cheap some of money to the persons who will
do it for us and it is the cheapest mean of promotion, advertisement and creating awareness
among the customers about Chabba.
Personal relations
We are planning to publicize through our personal relations also, as people in our target market
can talk a lot about the restaurants that are new entered in the market. This would help us to
create a web in peoples mind about our product.
It means using your own links with people to advertise and promote your product in the market.
They are usually your Friends, Family members, Relatives, Family friends and friends of friends.
This mode of advertisement and awareness campaign is cost less and is the best way of catching
the market share.
Media
We would also make our product advertisement over media by getting on air our ads. But this
would be done on a later stage when the market is well aware of the product.
Media promotion plan will include:
TV Adds
Flex Signs
Billboards
CHABBA
Internet:
We would also hire a certain portion over the web so that we can advertise over the internet with
the help of interactive website for the users and to explain them the importance of traditional
foods and their quality.
Channels of distribution
Initially Chabba is operating only from one outlet, so it doesn’t have any distribution channel
right now. Chabba is using the following approach in this session:
Direct
Selling
Chabba will directly sell its products to target consumers. First it takes the raw material from the
suppliers. That raw material will be cooked to made different products on the outlet of Chabba
by their qualified staff. After the customer place the order, waiters will serve the customers
within 5-10 minutes.
After 3 months Chabba will start selling its products directly in schools, colleges and universities
through their chaos.
CHABBA
Medium selection
Here we will select those channels on which Chabba will promote itself and which are more
appealing to the audience and these are:
TV channels like PTV and some of the satellite based channels.

Newspapers like The Jang, the Nawa-e-waqt and The Dawn.
Outdoor advertisement in the form of billboards, bus shelters and fly posters.
Transport advertising will also be done to the some extent.
Personal selling will also be done.
Internet marketing will be also done on some popular websites.
Here it should be noted that any combination of the above mentioned promotional channels will
be used depending upon the promotion costs involved therein.
CHABBA
OPERATIONAL PLAN
Methods of Production and Delivery
First of all Chabba has decided to manufacture all of its product line in the kitchen of Chabba’s
outlet. Chabba will not outsource for its any product.
First Chabba will take the raw material, on the daily basis from its suppliers. This is because
Chabba will become the second name of quality. Therefore vegetables and fruits will be
purchased on daily basis to provide nutritional and quality products. When the raw material will
be arrived at the outlet, a team of three people will unload the raw material and placed it in the
Kitchen. In kitchen, a team of 2 people will wash the raw material and then a team of four people
will cut the vegetables. After that it is the responsibility of the Head Chef to check that all the
activities that are related to products are going smoothly and also to keep all the vegetables on a
specific temperature to keep them nutrient and cook or boil the vegetables and products.
Now when the customers come to Chabba, a waiter will serve the water and place the menu card
on customer’s table exactly after 3 minutes. After the customer will place the order, he or she
will be served his order within 10-15 minutes. I the end we’ll give them a key chain of Chabba
which reminds them of our service. They will also be provided with the recommendation and
complaint cards to share their views about our Chabba’s products and services.
CHABBA
CHABBA
AVAILABILITY OF QUALIFIED LABOR POOL
Management Team
Chabba has quite an innovative and experienced management team in their related fields. Their
names
and qualifications are described below:
Faran Ali (CEO)
Faran Ali is the CEO of Chabba.
Qualification: MBA in Marketing, Finance and Hotel Management
Experience: Marketing Manager in Marriott Hotel, London, for 10 years
Raza Mohsin (Supply Chain Manager)
Raza Mohsin is the supply chain manager of Chabba.
Qualification: Master’s in Hotel Management
Experience: Asst. Supply Chain Manager in PC, Lahore, for 6 years
Maryam Zohra (HR\Finance Manager)
Maryam Zohra is the HR and Finance manger of Chabba.
Qualification: Masters in Finance, Diploma IN HRM
Experience: Finance Manager in HBL
CHABBA
Hana Qureshi (MKTG Manager)
Hana Qureshi is the marketing manager of Chabba.
Qualification: Masters in Marketing and Advertisement
Experience: Manager in Advertisement Firm
Head Chef
Chabba needs 2 chefs
Required Qualification: He or she should have some sort of degree in Cooking from HEC
recognized University, along He or She should know to cook well the desi foods.
Required Experience: 3-4 years as Cook in any Pakistani Hotel and is capable of making
traditional food.
Waiters
Chabba needs 6-7 waiters for performing its daily operations.
Qualification: Minimum Intermediate pass, good verbal communication
Experience: 1-2 years
Guards
Chabba need only one guard for its security
Qualification: Minimum Metric, training to use weapons and retired army men are preferred.
CHABBA
Experience: 1 year
Sweeper:
Chabba need only two sweepers
Qualification: Not specific
Experience: Not specific
CHABBA
BUSINESS PARTNERSHIPS
Chabba is a partnership business, which is registered under company ordinance 1932.
Types Of Partnership
Chabba being a startup business have following kind of partners, which are
Suppliers
Chabba’s suppliers are not its partners in a true sense because Chabba will get the raw material
for its products on the daily basis but pay them their bills on the monthly basis.
Distribution channels
We have our self-selling so we don’t have distribution channel and no partnership with
distribution channel.
Purpose of Business Partnership
Chabba is the idea of one of its active partner, Faran Ali, who alone was not able to change his
idea into reality. For this purpose he decided to go with partnership in which all the partners are
contributing to Chabba, in finance or in some other ways. Active partners are also involved in
financial, HR, marketing, accounts, supply of raw material and almost in every operation of
Chabba to make it run more and more efficiently.
*Chabba do not have any sort of partnership with anyone except discussed above.
CHABBA
Quality Control
Chabba is following different approaches in controlling or providing the best quality of its
products because quality is one of the biggest competitive advantages of Chabba over its rivals.
Total Quality Management
Chabba is using TQM in which every employee of Chabba will be involved in quality control to
provide its customers the best quality products.
CLEAN ENVIRONMENT, EQUIPMENT AND

PROCEDURES
All products of Chabba will be made in a clean environment to make them nutritional and
valuable to its customers. Along with this Chabba will use the new technological and clean
equipment and better procedures in the manufacturing of its products. Whole environment of
Chabba will always be keep clean and healthier for customer benefits.
ISO Certification
Chabba is certified from ISO, for providing the good quality which make its food products and
environment more hygiene for customers.
Use of Raw Material
Chabba will get his whole raw material i.e. fruits and vegetables, on the daily basis. No raw
material of the previous day, is going to be used in the manufacturing of products, to fulfill the
requirement of nutritional and quality products.
CHABBA
Use of gloves
Employees of Chabba, who are involved in the manufacturing of its food products, will always
wear the gloves on their hands in order to fulfill the desired precautions.
RESPONSIBILITY OF QUALITY
Quality of Chabba is a responsibility of its four active members, who will confirm it through
different procedure again and again, that whether the products are of desired quality standards.
Customer Support & Obligations
Customer Support Strategies
Customers are very valuable to Chabba and thus Chabba will use the best strategies to gain
customer interest and loyalty.
Services
Chabba is using the traditional ways to satisfy its customers. When they will come to Chabba,
they will be greeting by a famous saying, “JE AYA NU” in order to make them comfort like
home. After that, within 3 Minutes they will be served the water and menu card. After the
customer will place the order, He or She will be served his order within 10-15 minutes.
Feedbacks
Customers will be given a feedback card in which they will be evaluating and can openly share
their views about the products and services of Chabba.
Record Keeping
Chabba will keep the record of their regular customers, by providing them a card on which they
can fill their address and name. On the basis of those cards Chabba will regularly send them
different cards and gifts on their wedding anniversaries, birthdays etc. These cards will also be
used to inform and invite the regular customers on different occasions and about different new
launches at Chabba.
CHABBA
Membership Cards
Chabba will offer the membership to its customers. These membership card offers to those
customers who will regularly came to Chabba or those will willing to take discounts on our
products. We will provide some facilities to our card holder customers just like to arrange
birthday and other events for card holders, to give special discounts on menus and also offer buy
one get one free types of offers to them. These all facilities will make our customers faithful with
us.
Traditional Day
Every month, Chabba will celebrate a traditional day, in which every member will be invited, in
which every person will be wearing traditional clothes, traditional songs will be played, and
traditional events will be organized to gain customer attraction. This day will also be act as a
source of creating awareness among mew generation about traditions.
CHABBA
SOCIETAL ETHICAL AND CONSUMER ISSUES
We are going to discuss the societal, ethical and consumer issues separately to clarify our
strategies towards each of them.
SOCIETAL RESPONSIBILITY APPROACHES

We are discussing our responsibility approaches towards different sections of society as below:
Towards general public

Community involvement
Hiring hard-core unemployed
Proper disposal of materials
Contribution to nonprofit making organizations
Towards employees
To ample internal communication
Employee empowerment allowed
Employee training about social issues
No reprisals against employees going against IPR of the organization.
Towards channel members

Honoring both verbal and written commitments
Accepting reasonable requests from channel members
Co-marketing efforts to be promoted
CHABBA
Towards owners
Honest reporting and financial disclosure
Publicity about company activities
Detailed explanation of social issues
Earning a reasonable profit
CORPORATE SOCIAL RESPONSIBILITY
Chabba is also involved in CSR in a way that Chabba is a smoke free place. This is because
smoking is injurious to health. Therefore, like other cafes in Lahore, where smoking is allowed,
Chabba will not promote this thing and thus customers can easily enjoy a healthy environment.
CHABBA
FINANCIAL PLAN
Chabba being a startup business needs a high capital investment to recover its expenses like
advertisements, salaries along with the cost of production, for the next three to five years. Thus
Chabba is investing 51,50,000 PKR as its initial capital investment.
Sources of funds:
Chabba has four active partners, who are fulfilling the whole capital requirements for Chabba to
meet its startup cost, which is described below:
Overview of financial projections
Chabba is a new business because of which it does not have any past financial data. Thus Chabba
has used the analysis and results of its survey in concept and usability testing, along with the past
financial data of its direct competitor, to estimate the projected sales, income statements, balance
sheets and cash flow statements for next three years.
Exit Strategy
Chabba after analyzing every risk and exit ways of the business have devised an exit strategy in
the case if the business plan does not work or either goes to investors. We have also made certain
clauses to recover the cost which would have been incurred on the project. The exit strategies of
Chabba are as follow:
 Legal documents of partnership will be signed by the partners that partnership will not be
resolve until 5 years.
 After five years if any partner wants to exit then he has to inform to the organization
atleast 1 year before.
 If any partner exits from the business, he or she will get his or her share after 3 years.
 In case of losses every partner will be just liable for their share in organization.
CHABBA
 In case of winding up the organization amount received from sale of asset will be divided
among partners and investors according to their shares.
Equity Share of CHABBA

INVESTOR’S FARAN MARYAM HANA RAZA
NAME ALI ZOHRA QURESHI MOHSIN
Equity Share 20,00,000 10,00,000 10,00,000 10,00,000
Startup Cost of CHABBA
Building 3,00,000
Fixture 9,63,700
Advertisement 5,00,000(1 month)
Legal Expense 40,000
Machinery & Equipment 5,00,000
Inventory 1,00,000
Recruitment expenses 30,000
Other cost of assets 1,00,000
Total Startup Cost 25,33,700
Remaining balance 26,16,300
OPERATING COST OF CHABBA

1 month 1 year
Furniture 150000 150000
Stationary & equipment 5,00,000 5,10,000
Salaries 1,21,000 14,52,000
Utilities expenses - 2,60,000
Advertisement - 14,00,000
Miscellaneous - 68,000
CHABBA
First year plan
INCOME STATEMENT
1ST YEAR 2009-2010
Sales 60,40,500
-Cost of goods sold 24,16,200
Gross profit 36,24,300------------------------36,24,300
Less operating expenses
Wages 36,000
Advertisement 14,00,000
Depreciation 1,20,000
Rent 6,00,000
Diesel expenses 1,20,000
Total operating expenses 22,76,000-------------------------22,76,000
Operating income 13,48,300
less administrative expenses
insurance 40,000
Salaries 14,52,000
Utilities 2,60,000
Legal expanses 40,000
Misc- expenses 60,000-----------------------------18,52,000
Net loss / profit -5,03,700
* Chabba being a business, incurred or faces so many expenses that would not incur or would not
change with the same amount like
Advertisement
Depreciation
Legal expense
Balance sheet 1st year 2009-2010

Assets:- building security 3,00,000
1- Bank balance 26,16,300
2- Inventory 1,00,000
Total assets 30,16,300
Fixed assets:-
CHABBA
1- Furniture& fixture 11,50,000

2- Accumulated depreciation @ 5% (-57500) 10,92,500
3- Restaurant equipment 5,00,000
4- Depreciation @10 % (-50,000) 4,50,000
5- Other assets 1,00,000
6- Depreciation@ 12.5% (-12,500) 87,500
Total fixed assets 16,30,000 16,30,000
46,46,300
Liabilities & owners equity
Owner’s equity
1- Invested capital 51,50,000
2-retained earnings/loss 50,37,00
46,46,300
We don’t have any account payable because we will pay cash on the daily bases. Still Chabba is
in the loss first year so there is we does not pay return on investment.
-Cash in hand 26,16,300

+ Sales 60,40,500
Total inflows 86,56,800
Cash outflows
Cost of goods sold 24,16,200
Salaries 14,52,000
Advertisements 14,00,000
Insurance -
Utilities 2,60,000
Wages 36,000
Building rent 6,00,000
Misc.expenses 60,000
Total outflows 62,24,200
CHABBA
Net cash in hand 24,32,600
ADVERTISEMENT PLAN FOR 1ST YEAR
Total budget for advertisement 14,00,000

for 1st year
Medium Channels/locations Size/ Time Cost

duration/ period
day
Cable Star plus, Sony , Duration (45 1st month 1,50,000
movie channel, sec )
music channel,
news paper Jung, dawn Sunday 1st month 1,30,000
add
Broacher In newspapers 25000 1st month 60,000
broachers
Banners 4 different places - 1st month 60,000
Billboard 4 different places– 10*20 1st month 65,000
CHABBA
change location 1 billboard

every week whole month
FM 88.88 RASTA FM 15sec 1st month 25,000
Total cost of - - - 5,00,000
advertisemen
t in 1st month
Medium Channels/location Size/ duration/ Time period Cost

s day
Cable Star plus, movie Duration (30 sec 2nd month 50,000
channel. )
news paper add Jung, dawn Sunday 2nd month 1,30,000
Billboard 1 billboards 2 10*20 2nd month 55,000
weeks change 1 billboard-2
location after week weeks
FM 88.88 RASTA FM 15sec 2nd month 25,000
Total cost of - - - 2,50,000
advertisement
in 2nd month
CHABBA
Medium Channels/location Size/ duration/ Time period Cost

s day
Cable Star plus, movie Duration (30 sec 3rd month 60,000
channel. )
news paper add Jung Sunday 3rd month 65,000
Billboard 1 billboards 1 10*20 3rd month 50,000
weeks 1 billboard-1
weeks
FM 88.88 RASTA FM 15sec 3rd month 25,000
Total cost of - - - 2,00,000
advertisement
in 3rd month
The total cost of advertisement for first three months is 9,50,000. The remaining amount of
advertisement budget is 4,50,000, from which 50,000/month will be used during the remaining 9
months of first year.
CHABBA
2nd year plan
INCOME STATEMENT
2ND YEAR 2010-2011
Sales 72,48,600
Gross profit 43,49,160---------------------------43,49,160
Wages 36,000
Depreciation 1,08,000
Rent 6,00,000
Total operating expenses 14,64,000--------------------------14,64,000
Less administrative expenses
insurance 40,000
Salaries 14,52,000
Utilities 2,60,000
Misc- expenses 60,000------------------------------18,12,000
Income before taxes 10,73,160
Less taxes 10,73,16
Net profit/loss 9,65,844
Chabba gains profit in the second year because there are many expenses that were incurred in the
first year but not incurred in the second year.
CHABBA
Balance sheet 2nd year

2010-2011
Bank balance 30,59,091
Inventory 1,00,000
Fixed assets:-
Furniture& fixture 10,92,500
Accumulated depreciation @ 5% (-546225) 10,37,875
Restaurant equipment 4,50,000
Depreciation @10 % (-45000) 4,50,000
Other assets 87,500
Depreciation@ 12.5% (-10,938) 76,562
Total fixed assets 15,19,437
49,78,528
Owner’s equity 51,50,000
Profit 10,73,160
62,23,160
Less 20% transfer on return to equity 12,44,632
49,78,528
Having profit in second year Chabba is paying 20% transfer on return to equity to its partners
CASH FLOWS STATMENT 2ND YEAR 2010-2011

+ Sales 72,48,600
Cash outflows
CHABBA

Salaries 14,52,000
Insurance 40,000
Utilities 2,60,000
Wages 36,000
Taxes paid 10,73,16
Total outflows 60,54,756
3rd year plan
INCOME STATEMENT 3RD YEAR

2011-2012
Sales 86,98,320
Gross profit 52,18,992--------------------52,18,992
Wages 36,000
Depreciation 96,000
Rent 6,00,000
CHABBA

Total operating expenses 14,52,000-------------------14,52,000
Less administrative expenses
insurance 40,000
Salaries 14,52,000
Utilities 2,60,000
Misc- expenses 60,000-----------------------18,12,000
Income before taxes 19,54,992
Taxes 195500
Net profit/loss 1759492
Balance sheet 3rd year

2011-2012
Bank balance 28,70,816
Inventory 1,00,00
Fixed assets:-
Furniture& fixture 10,37,875
Accumulated depreciation @ 5% (-51,813) 9,85,981
Restaurant equipment 40,5000
Depreciation @10 % (-40,500) 3,64,500
Other assets 76,562
Depreciation@ 12.5% (-9570) 66991
Total fixed assets 14,17,472
46,88,288
Owner’s equity 39,05,368
Profit 19,54,992
58,60,360
Less 20% transfer on return to equity 11,72,072
Total liability & owner’s equity 46,88,288
CHABBA
CASH FLOWS STATMENT 3RD YEAR 2011-2012

+ Sales 86,98,320
Cash outflows
Salaries 14,52,000
Insurance 40,000
Utilities 2,60,000
Wages 36,000
Taxes paid 19,55,00
Total outflows 67,22,82,2
CHABBA
Ratio Analysis
Sr Ratios Formula Years

No
2009 2010 2011
1 Current Ratio C.Assets/C.Liabilities 0 0 0
2 Quick Ratio Q.Assets/C.Liabilities - - -
3 Gross Profit Margin G.Profit/Sales*100 80% 60.2% 60.57%
4 Break Even F.Assests/Gross Margin 0.45 0.35 0.27
5 Net Profit Ratio Net Profit*100/Sales (18.34) 13.3 20.2
6 Return On Equity Net Income/Total Equity 0.11 0.19 0.38
7 Return On Assets Net Income/Total Assets 0.11 0.19 0.38
8 Total Assest Turnover Sales/Net F.Assets 3.70 4.8 6.14
CHABBA
CRITICAL RISK FACTORS

Risk Management:
The objective of risk management is to reduce different risks related to a reselected

domain to the level accepted by society. It may refer to numerous types of threats caused by
environment, technology, humans, organizations and politics. On the other hand it involves all
means available for humans, or in particular, for a risk management entity (person, staff, and
organization).
Critical Risks Analysis
For startup business there are many risks involved that are caused by different factors. The risks
which are analyzed by Chabba are as follow:
 Management Risks
 Marketing Risks
 Operational Risks
 Financial Risks
 Intellectual Property Infringement
Management Risk:
In this risk we realize that there may be any dispute in the management team due to any
unforeseen reasons which may result to terminate any of the members.
Remedy:
CHABBA
In this case when any of the management team members leaves the company he is not entitled to
use the name of the company. He cannot start the same business with any other name.
Marketing Risk:
In case of marketing we realize that here may be any fault in our marketing plan due to which
business can suffer.
Remedy:
For the backup of this risk we have prepared our proposal for different authorities and we also
have different marketing plans, as if in any case plan A does not work the plan B will be
executed.
Operational Risk:
There may be a risk which can disturb the operations of the business such as production. There
may be strikes by the workers.
Remedy:
For minimizing this risk we don’t encourage the trade unions in our business and we provide
bonuses to our laborers on semiannual basis, provide them with gifts on different occasions, we
provide them excellence awards.
Financial Risk:
We realize that in case of termination of any member there is a risk of finance that he or she may
take his/her equity away which cause the business to suffer.
Remedy:
CHABBA
To avoid this risk we have made certain clauses in our agreements that if any member d\decides
to leave the company he/she will not take his/her equity out of the business. The time period to
pay back the equity will be determined on the amount of equity shared by that member.
Intellectual Property Infringement:
In business there is a high risk of infringement of the company’s intellectual property. Any one
of your competitor may copy your business which causes your business to suffer.
Remedy:
As a remedial step of avoiding this risk we have patented of business for next 15 years i.e. for
next 15 years no one can start this business is he/she does so will be held liable for legal
prosecutions.

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CHABBA

RICHEST CULTURE OF WORLD, PUJABI CULTURE CONTAINS SEVERAL DESSERTS

Target Market Calculation

Population of Lahore 7,000,000

Brief Summary of Financial Projections

RICHEST CULTURE OF WORLD, PUJABI CULTURE CONTAINS SEVERAL DESSERTS

SOLUTION TO THE PROBLEM

“TO REVIVE OUR TRADITION BY PROVIDING OUR

The main objective of Chabba is to revive the tradition.

Description Of Business Model

Social Economic Class A includes upper or elite class

SUSTAINABLE COMPETITIVE ADVANTAGE

CURRENT STATUS AND REQUIREMENTS

Management Ability And Experience

Chief Executive Officer

Supply Chain Manager

Other professionals of Chabba include:

KEY PROFESSIONAL SERVICE PROVIDERS

KHALID LAW ASSOCIATES

Accounting and Business Consultancy Firm

Chabba’s board of advisors includes the following personals:

Mr. Khalid Pervaiz (Advocate High Court)

These personals are involved in providing advice and guidance to Chabba.

DESCRIPTION OF BUSINESS ANGELS

MR USMAN AKRAM MALIK is operational & maintenance project manager in simen

DESCRIPTION OF ORGANIZATION CHAT

Supply Chain Department

Human Resource Department

Quality Control Department

JOB DESCRIPTION OF EMPLOYEES

Job title: HRM Manager

Job type: permanent

Job location: Lahore

Minimum education: Master’s degree

Degree title MBA in HRM,

Experience: 3-4 years in related field

Job title: marketing Manager

Job type: permanent

Job location: Lahore

Minimum education: Master’s degree

Degree title MBA in Marketing,

Experience: 3-4 years in related field

Job title: finance manager

Job type: permanent

Job location: Lahore

Minimum education: Master’s degree

Degree title MBA in finance

Experience: 3-4 years in related field

Supply chain manager

Job title: supply chain manager

Job type: permanent

Job location: Lahore

Minimum education: Master’s degree

Degree title MBA in marketing/HR/FINANCE (but having good network)

Experience: 3-4 years in related field.

Other employees JD’s

Job title: operational manager/ food manager/ brand manager

Job type: permanent

Job location: Lahore

Minimum education: Master’s/bachelor’s (hons) degree

Degree title: specialization in marketing/HR/FINANCE (but having good network)

Experience: 2-3 years in related field

LEGAL FORM OF OWNERSHIP