BACKGROUND FOR CHOOSING THE INDUSTRY:

Why we choose this Industry?

Managerial Policy Project course gave an opportunity to start a business by analyzing all main factors
and make a analysis before starting any business to reduce the chances of risk. Here in Karachi people
are food lovers and they have different taste and varieties. A lot of food businesses are running in
Karachi and good fact about this industry is that people think this will work and it does. Nothing is
complete without food. Due to COVID19 most of the industries had in loss but food industry took an
advantage of supplying home made food to their customers through online pages. People always
wants to try something new so choosing food industry would be beneficial and profitable even if
starting from small shop. And for this purpose, we conduct a survey in which we analyse the need and
demand of the market and choose the food industry. Here introducing Food for youth business plan.

What is the potential?

Moving towards the Food Industry of Pakistan, it plays a vital role as it contributes towards the
economy of Pakistan. Pakistan Food Industry is very huge in size and the interesting thing is that
comprises of International Food and Local Food. Going back towards the point that how did
International Food influence Pakistan Food Industry. The answer to this refers to the invaders, who
came to Pakistan after independence and later on. People of Pakistan as they prefer eating food and
consider it as their basic tradition, they prefer international food or so-called as fast food, but if we go
through statistics the results are different.

BUSINESS INTRODUCTION:

Name of Business: Urban Eatery

Nature of Business: Food for youth
Technology: Dine in & take away and home delivery is also available and for dine in customers, free
Wi-Fi service is available.
Target Market: Society people and their guest who visits society. Children and adults as they like to use
an internet while eating and enjoying with friends.
 MACRO ANALYSIS
PESTLE ANALYSIS:

Political Factor:
The political factors affecting the food industry can vary from country to country. There are regulations
related to wages, hygiene and food quality that need to be compiled with good techniques. The
minimum wage standards can differ from country to country. In countries where wages rates are high,
the labor costs are high. Packaging regulation has also charged. The government can also press the
food chain to include healthier food. Prime Minister Imran Khan recently unveiled a historic financial
package worth Rs1.1 trillion for Karachi’s transformation that he said will address the chronic municipal
and infrastructure issues of the country’s financial Hub. (Soomro, 2019)
IMPLICATION:
The political analysis suggests that there is a good potential in business due to improving law and order
situation, increasing interest of Government in development of Karachi city.

Economic Factor:
Economic factors are a very important influence on the food industry. Brands included low priced
items. They added various products on the menu. The size of individual spending on food has always
depended on the economic conditions in specific market. Due to Covid19, a sharp contraction in
economic growth is expected in countries like United States, France, Germany, Japan, United Kingdom,
Italy, Spain including Pakistan. Reason behind this in Pakistan, low tax to GDP ratio, poor savings ratio
and minimal export growth with negligible value addition etc. (Finance Division, Government of
Pakistan, 2019)
IMPLICATION:
Even then, there will be lots of potential customers because stating business with nominal price
according to our target market which will be middle lower class.

SOCIAL:
No matter what is the law and order situation, no matter what is the weather condition and
whatsoever, Pakistani people always want to have fun with families and with friends circle and go
outside for dine out and for celebrations. (Zakir, 2019)
IMPLICATION:
Nowadays population is increasing and they are addicted with internet, so this place will be attractive
for families where they will come out to have food with free Wi-Fi facility.
Technological factor:
Technology factors have been an important influence on the food industry. This sector does not
depend only on the attractiveness of its menu and the food quality. Customer services and convince
are also major factors affecting sales. Technological factor has already brought huge changes to the
way brands have served and engaged their customers. Social media and online ordering have changed
the style of customer services. (Anon., 2019)
IMPLICATION:
Due to covid19 effect where so many businesses had loss so here food industry took an advantage of
delivering home made food items to their customers and it was hygienic and fresh too.

Legal Factor:
The legal factor of the food business has been important changes happening during recent decades.
The pressure due to changing legal requirements has risen. Food quality and nutritive value are the
major areas affected by the law. Packaging and waste management are also critically impacted. The
entire sector changed its approach to marketing and sales.
IMPLICATION:
Recently Government announced a serious lockdown in a country so nobody could went outside from
home otherwise penalty would charge then smart lockdown gave some relaxation to the industries to
atleast work at day time through online networking and social media was effective.

Environmental Factors:
Environmental was another important factor impact the industry globally. Changing government rules
and regulation impact on industry. The quality standard have become stiffer everywhere.
IMPLICATION:
Even then, there will be lots of potential customers because stating business with nominal price
according to our target market which will be middle lower class.
 CPM METRIX: COMPETITIVE PROFILE METRIX:

GREENO GINSOY JUICES ISLAND

Competitors DHA PHASE 2 SMCHS BRANCH, TARIQ ROAD DOLMEN
target market DHA PAHSE 6 GULSHAN, GULISTAN-E- JOHAR MALL
TARIQ ROAD
DOLMEN MALL HYDERI, LUCKYONE MALL BAHADURABAD
ASKARI IV BAHRIA TOWN KARACHI
DHA PHASE 6, NORTH
NAZIMABAD
Product Information SEASONAL FRESH JUICES, MOCKTAILS, SOFT FRESH JUICES
JUICES DRINKS SHAKES
MOCKTAIL, SHAKES FRIED ITEMS, BEEF SMOOTHIES
SMOOTHIES COOKIE STARTER, SOUP
MOCKTAILS
SEA FOOD, POULTRY
SOFT DRINKS, TEA/COFFEE
CHINESE, DESSERT

Pricing Juices Rs: 400 Juices Rs: 395 Juices Rs: 195
Shakes Rs: 300 Fried items Rs: 490 Shakes Rs: 250
Mocktails Rs: 300 Mocktails Rs: 395 Mocktails Rs: 225
Smoothies Rs: 385 Beef Rs: 745 Smoothies Rs: 225
Cookie Rs: 135 Starter Rs: 400-1230 Twisters Rs: 225
Tea Rs: 190 Soup Rs: 890 Slush Rs: 225
Coffee Rs: 300 Sea Food Rs: 930 Tea Rs: 50
Soft Drinks Rs: 190 Poultry Rs: 665 Coffee Rs: 90 Soft Drinks Rs: 70
Soft Drinks Rs: 95
Chinese Rs: 580
Desserts Rs: 390
Financial Information Operating Hours: 10 Operating Hours: 08 Operating Hours: 12

Market Information Average customers 150- Average customers 100-120/ per Average customers 250/per day.
200/ per day. day.

On holidays 1000 /day.

Resources Human resources: Human resources: Human resources:

9 Persons (1 branch 9 Persons (1 branch manager, 1 8 Persons (1 branch manager, 1
manager, 1 cashier/accountant, 1 technical cashier/accountant, 2 technical
cashier/accountant, 2 support, 2 chefs, 4 waiters) support, 2 chefs, 2 waiters)
technical support, 2
chefs, 3 waiters) Physical Resources: Machineries, Physical Resources: Machineries,
equipments, labelled packaging equipments, labelled packaging
Physical Resources: items, items,
Machineries, equipments,
labelled packaging items,
Service offer level Strengths: Strength: Strength:
High quality products Brand Image Extremely Fair pricing Quality
Brand image Chinese Food quality products Fast services
Fast service Weaknesses: Home deliveries
Weaknesses: High prices Slow services available.
Less outlets.
Weaknesses:
Specific areas targeted.
Staff appearance.
Not well-designed
outlets.

CRITICAL FACTORS Weight Rating Score Rating Score Rating Score

Greeno juice Ginsoy Juice Island

Bar

1. Promotions. 0.05 1 0.05 2 0.1 2 0.1

2. Price Competition. 0.10 3 0.3 3 0.3 3 0.3

3. Financial Position. 0.20 3 0.6 4 0.8 3 0.6

4.CustomerPreferenc e 0.05 2 0.1 3 0.15 3 0.15

5. Market Share. 0.15 3 0.45 3 0.45 2 0.3

6. Level of product 0.10 2 0.2 3 0.3 3 0.3

integration.

7. Product Quality. 0.20 3 0.6 3 0.6 3 0.6

8. Strong market 0.15 3 0.45 2 0.3 1 0.15

pressure.

TOTAL: 1.0 2.75 3.0 2.5

 PORTER FIVE FORCES MODEL:

Threat of Substitute Product:

Low because there is no competitor inside (Not for same product nor for substitute product) our
society. People will have to go outside for substitute product.

Bargaining Power of Supplier:

Low because we have many suppliers and wholesalers in the market.

Bargaining Power of Customer:

Low because there is no competitor inside our society. People have only one option to go outside
for substitute product. If we treat them well and will try to make them satisfied then there is less
chance to lose them.

Threat of New Entry:

Medium because there is no one who thinks to open this type of food business so far and we are
the first. So, there is a chance in future for someone who can take initiate after our business.

Rivalry among Competitors:

Low we don’t have any direct competitor so far.