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GET TO THE STARS PROJECT
released by: Ryzhikova Victoria
(accountant&auditor)
Rakova Svetlana
(marketing director)
Artuhova Ksenya
(logistics director)
Anosenko Alina
(financial director)
The main idea
We wanted to create something really innovative and even unreal to believe in. So our project is a little Space on the roof of some mall at the center of the city of Saint-P. that will include a cafe, old film screenings and parties on weekends.
There will be 2 areas: in the first you can sit at the table (smoking& non-smoking) and in the second — lay on rugs and cushions. The total square is 200 m2.:
- Kitchen - 30m2
- toilets and cloakroom — 20m2
- 2 equal areas — 75m2 * 2
The innovation is that it is the first cafe on the roof in our city with a possibility to watch star systems through a so called skylight. Also there will be translations of the star systems on the roof if the weather do not let us to enjoy the real sky and of course the view of the city.
PEST — analysis
| Political aspects | Economical aspects |
| Regulation of sanitary standards; Tighter health standards; The problem of waste disposal; Impact on the environment of the city; Antimonopoly legislation; Federal law «Prohibition of competence»; Governmental program of supporting of start-up business; Changes in governmental policy towards business activity; Tightening state control over the activities of business entities and penalties. | Introduced tax incentives for small businesses; 2013 Cancellation of the single tax on imputed income — considerably reduces and simplifies contacts with fiscal services, such contacts are more expensive for very small businesses; Influence of the weather: our main idea is stars. If there aren't any on the sky we should switch on the specialized equipment. Hence, costs on the power will be higher; Competitors: The market is full of different cafes and restaurants and our target is to draw customers' attention to our café and to make them choose our services instead of other; Payable demand: Our target audience is really wide (from studends or even puples to old people); The average bill >1000 rub. Unemployed such as students can't afford to visit our café often; Distribution: We need supply of the food every day. So, there is the risk of incompetent suppliers and delays of supplies; Needs of customer: We should accurately develop our services and give them qualitatively. In other way we have the risk to disappoint our customers, giving them another service than they expected. Hence, we lose extra profit; External economic costs: raw materials, salaries, cost of equipment: We should supply equipment such as stove, fridge, projector, conditioner, screen, sound system, furniture. We should pay salaries to our employers, supply food, films, payments of central heating, water, electricity. So we should spend the huge amount of money at the beginning and risk to don't get profit. |
| Socail aspects | Tehnological aspects |
| Incomes and costs: The world finance crisis lead to decrease of incomes and people spend less money on food and refuse from expensive dishes. So there is an opportunity of new wave of crisis and decrease of costs on our cafe for people; Migration; Mass Media: As any café we risk to be slandered in Mass Media; Changes in legislation about smoking in public places. If we prohibit to smoke we risk to lose part of customers; The behavior of customers: We risk to lose the interest of consumers; Competitors: We risk to get competitors, who will create something similar to our café; Advertising: We risk to spend much money on it: Ethic and religion: Films and food should cover big audience and we should consider them religious and ethical preferences. In other way we risk to lose a part of the customers. | The interior of café is planned to create special. It requires big investments; Transport. |
SWOT — analysis
| Strengths | Weaknesses |
| Cafe without analogues; A unique location; A unique interior; A special Space menu; Various events in the cafe (film screenings, parties) Space show; Nice view of the city; Impeccable service; Compliance of the price = quality; The projection of the real space of the roof at night and at cloudiness of the sky; Our factory kitchen; Only fresh and natural products; Narrow focus; Wide target audience: | Large numbers of staff (staff turnover); Problems in obtaining copyrights to films; Lack of space. |
| Opportunities | Threates |
| New markets (other big cities of Russia); International markets; Selling of franchise. | High rent payments; Already established supply chain from competitors; Competition from other alternative places of catering and entertainment; More lucrative offers from competitors, due to lower costs (price wars); High taxation; Corruption. |
5 forces analysis of M. Porter
1. Threats from new entrantsare rather high, as the restaurant industry is rather profitable and attracts a lot of new competitors. Entry barriers are low, capital requirements are not very high (comparing with other industries). At the first time, we won’t have any competitors in our sphere because our café combines several types of relax, as we mentioned before. We will have only specialized places as competitors.
2. Threats from substitute products are low,as Space cuisine is a unique product in Russia and it cannot be replaced by some other cuisines. In case of arising of this threat: To avoid it you should constantly improve your service and use all modern things. If you do it you will have a competitive edge.
3. Bargaining power of suppliers is high,as there are only a few suppliers that could deliver products that we need to serve our diches (high quality, high speed, low prices). We are depended on our suppliers overall due to the using only fresh and wholesome ingredients. To cope with it, we should deal the contracts with our future suppliers on continuing basis
4. Bargaining power of buyers is high, as customers are ready to pay for tasty, high-quality and unusual food and experience, for pleasant atmosphere, polite staff and interesting idea. It is very important in our area because we would like to meet customer’s needs and try to satisfy all of them. They influence on all our activities because the success of the café depends only on them.
5. Intensity of rivalry among existing competitors is high.On the one hand, there are a lot of different restaurants in the city. On the other hand, our restaurant offers a unusul cuisine and is unique because of the idea of the space atmosphere. Our café is the place where you can not only eating with pleasure environment, you also can know something new about innovations and relax with your friends with hookah and another entertainments of the cafe.
The legal form of our business
The size and nature of our business: we create for a start one commercial Space-cafe which will be like a museum or attractive place for entertainment. But if it will become popular we hope to open such cafes all over the world.
The level of control and the level of "structure" we are willing to deal with is a matrix hierarchical one. Because we have many aims in that place, so we'd like to have many managers of different area of our entertaining center.
The business's vulnerability to lawsuits: it will be an unincorporated organization. We don't expect problems of this kind in big scale. The only thing that could arise is the problem with property rights on the films that we would like to show.
Our choice for the legal form of business — Ltd.
Tax implications of the different ownership structures of Ltd: according to the Russian National Classification of services our cafe is included in the list of those business activities to which is used a system of taxation in the form of a single tax on imputed income (that is, the provision of catering services).
We operate under the federal law ¹ 101 from 2005 due to the fact that the floor area for visitors is less than 150 square meters.
Expected profit (or loss) of the business:
Whether or not you need to re-invest earnings into the business: we won't need any re-investing, we'll get profit of many entertaining things in the space-cafe — it will help us to get in plus sooner.
Operational presentation of the enterprise
Technical analysis: what kind of technology you have chosen?
We have in our café sky of stars’ projection on the semi-dome glass roof, a glass floor under which the layout of the city, space food in tubes.
Partnerships or agreements with your subsidiaries or franchises if there are any.
Partnerships with our suppliers, with the mall Galereya and may be with the planetarium.
Franchises with other countries.
What kind of work model do you choose (model of Ford, Taylor or flexible one)?
We chose Taylors’ model of management because of his idea that we need to train everyone of the staff and he believed in non-hierarchical structure.
Competitive environment
Marketing mix
Product
Our product is a restaurant where you can not only eat with pleasure environment. The uniqueness is the space interior, location on the roof of the building in the center of the city. The customers can enjoy the view of the city due to the transparent wall and ceiling and the high of the building. Also they will surprise from the sky of stars’ projection and special space food. Our café is called «Space place». The café’s logo is…The main advantage is that we are the only one of its kind.
Place
The café is situated in the popular shopping center with a lot of people of our target audience.
Price
The price concludes all types of expenses and satisfies our customers. Different bonuses and discount can be developed in future. As for prices of our competitors, it will higher because our average bill will from 1000 rub.
Promotion
We are developing a huge marketing strategy which includes all types of advertising. The first place is occupied by mass media. Then are ad on the Internet, direct mail, different leaflets, may be round the planetarium and billboards. The competitors’ edges are brand awareness and brand loyalty.
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Strategy choice
Focus strategy. It is based on product uniqueness and narrow market segment.
Date: 2015-12-18; view: 1252
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