Le’ Cake
Business Name
: Le’ Cake
Registration No
:
Business Address
:No. 7, Le’ Cake, Kottawa Road, Maharagama.
Ownership
: Sole Proprietorship
Shalika Dilrukshi Fernando Le’ Cake 5/1/2014
Introduction Le’ Cake expects to catch the interest of a regular loyal customer base with its broad variety of coffee and pastry products. The company plans to build a strong market position in the town, due to the partners' industry experience and mild competitive climate in the area. Le’ Cake aims to offer its products at a competitive price to meet the demand of the middle-to higher-income local market area residents and tourists.
Products and Services Le’ Cake will be a small bakery located in Maharagama, Colombo, offering all cake and cupcake. The business will be entrepreneurial with enough employees to help the business run smoothly. A couple of employees will be designated bakers, preparing the delights in the kitchen, while the remaining employees take orders and fulfil the needs of customers .The product of focus for this business will be cake & cupcakes. A variety of flavours, frostings, sizes, styles, toppings, and decorations will all be available at Le’ Cake. To rise above competitors, Le’ Cake will offer numerous options to satisfy common health and diet needs of consumers. Whether it is required by allergies or simply a choice, a desire for gluten free, organic, naturally sweetened, reduced fat, and vegan foods has recently grown .By offering cake and cupcakes which meet these requests, more consumers will feel welcome to this bakery because their needs will be recognized and satisfied. The bakery will contain a comfortable lounge area open to customers, allowing them to Stop in and sit down. The location of Le’ Cake will be another advantage of the company .This bakery will be the first, and therefore the only ,cup cake shop in the town of Maharagama ;without similar businesses nearby, the competition for this bakery will be minimal. The business will work out of a store front on the town’s main street, making it extremely visible for all consumers. Being centrally located in Maharagama town, Le’ Cake will be easily accessible by all members of the area. Given the varieties of cake and cupcakes, convenience, and accessibility, Le’ Cake will be capable of standing above its competitors.
Details of the Owner Full Name
: Salika DIlrukshi Fernando
Age
: 23 years
NIC No Educational Qualifications
: 917170266V : Passed GCE O/L & GCE A/L
Professional Qualifications & Experiences: Have been followed Pastry & Bakery Rajagiriya. Worked at Perera & Sons (pvt) ltd for 1 Year.
Diploma in Prima,
Mission Le’ Cake aims to offer high quality cake and cup cake products at a competitive price to meet the demand of the middle- to higher-income local market area residents.
Keys to Success Keys to success for will include: 1. Providing the highest quality product with personal customer service. 2. Competitive pricing.
Legal Background Arrangement for the legal requirement for registration of the entrepreneurs name under the act number 04, 1990 registration of entrepreneur’s name district secretary has been taken. And also the allocation for the requirement of the EPF & ETF of the employees as a legal requirement of the EPF & ETF act number 46, 1980 has been done.
Target Market As a bakery, Le’ Cake will have a broad target market .People of all ages, children through adults, enjoy delicious treats, and therefore will be incorporated in the target market. This product is not a high priced item and, as a result, will be available to nearly all people Regardless of varying incomes. Located in an area with a high tourism rate, the target market of This Company will include tourists; however, many locals will also indulge in the delights. The Catering service will be especially utilized by locals for large events and celebrations. Le’ Cake will be able to rely on locals. The products of Le’ Cake will be Appreciated by all consumers who simply enjoy a decadent treat. Whether consumers are Looking for plain, simple cupcakes, or intricately designed treats, this bakery will be able to meet their needs. For consumers who are looking to come in and sit down, Cup of Cake Café will be preferred by customers who enjoy a calm, modern, comfortable atmosphere. Locals and visiting Tourists passed the Maharagam, with varying ages and differing income levels, will all be included in the Target market of Le’ Cake.
Market Segmentation Le’ Cake focuses on the middle- and upper-income markets. These market segments consume the majority of cake and cup cake products. Our market is divided into four different psychographics: Comfort Creatures, Celebrators, School Moms,kids, lovers and Gourmet Wanna-bes. They represent groups of people sharing similar behavior patterns and reasons for patronizing Le’ Cake.
Comfort Creatures are mainly white collar workers who are driven by success and prestige yet miss homemade comfort foods of their childhood. They may stop in on their own or bring clients in for a gourmet Cake experience. Celebrators are just that - people celebrating special occasions. Birthday, anniversary, graduation, valentine's day, etc., families and loved ones will gather at Le’ Cake over sumptuous Cake and a festive atmosphere. School Moms actually encompass all family members. Le’ Cake is a gathering place where families are welcome and feel comfortable. "Moms" can come in for after school milk and cup cake with their children and relax while we pamper the little ones. Or they can meet up with friends for Tea Time - a little civilized time stolen in the midst of a busy day. Kids are always looking for something new colourful sweets. Large verity of Le’ cake’s delightful cup cakes are almost ready to pamper kids enthusiastic demand. Lovers will definitely be a part of Le’ Cake since it provides comfortable and private dining areas. Gourmet Wanna-bes are the people who search for delightful cake flavours and recopies .They'll be the adventuresome diners at Le’ Cake
Target Market Segment Strategy The dominant target market for Le’ Cake is a regular stream of local residents. Personal and expedient customer service at a competitive price is key to maintaining the local market share of this target market.
Marketing Mix Product: Our product is a high-quality, organic dessert that is extremely adaptable to both special events, and to the special dietary needs of our customers. Each cupcake purchased is accompanied with a package of seeds (large Variety available) to consumers to help us reach our goal of nourishing the earth. Price: The price of our cupcakes is Rs.150.00 each which includes the product, the seeds and delivery of product to consumers within Connecticut. Place: Le’ Cake will market its products’ adaptability and its utility adaptability in a venue of different online and offline approaches which include: *Online+….electronic press releases, website, e-mail marketing campaign, web video ad, message boards, online catalogs, etc. *Offline+…press release, brochures, menus, direct mail, television spot, radio ads, business cards.
Promotion: Our current promotional plans include but are not limited to: • Guerilla posting to blogs incorporating company message with Signature file • Create online and offline press releases to introduce new business • Radio commercials • TV featured story on Good Morning Connecticut • Facebook, Twitter, Blogger, GoogleBuzz, Linked In, • Ads on Google, and sites like WedAlert.com • Coupon offers, both online and offline • Premiums, giveaways, incentives, contests • Samples (offline)
Sustainable Competitive Advantages Based on our main competition mentioned above, Le’ Cake actually has quite a few competitive advantages which include ADAPTABILITY: 1. Our price structure remains competitive 2. Our selection of cupcake designs is much more diverse 3. We are adaptable to our customers’ dietary needs offering a) Vegan cupcakes b) Gluten-free cupcakes c) Sugar-free cupcakes d) Nut free cupcakes 4. We can adapt any cupcake design to any specific occasion
Demand Analysis Product
Monthly Demand
Unit Cost RS.
Total Cost RS.
Chocolate gateaux
10
1500
15000
Black Forrest gateaux
10
1800
18000
Red Velvet Cake
10
2500
25000
Pineapple gateaux
10
2000
20000
Coffee gateaux
10
2000
20000
Lemon Swiss roulade
10
1000
10000
Cheese cake
10
1500
10000
Ribbon Cake
10
1500
15000
Cup cake- choco
100
150
15000
Cup cake- blueberry
100
150
15000
Cup cake- lemon custard
100
150
15000
Cup cake- strawberry
100
150
15000
Cup cake- coffee
100
150
15000
Cup cake-tiramisu
100
150
15000
Cup cake- raspberry
100
150
15000
Cup cake- apple
100
150
15000
Cup cake-crumble
100
150
15000
Total
980
268000
Supply Analysis Product
Monthly Supply
Unit Cost RS.
Total Cost RS.
Chocolate gateaux
3
1500
4500
Black Forrest gateaux
3
1800
5400
Red Velvet Cake
3
2500
7500
Pineapple gateaux
3
2000
6000
Coffee gateaux
3
2000
6000
Lemon Swiss roulade
3
1000
3000
Cheese cake
3
1500
4500
Ribbon Cake
3
1500
4500
Cup cake- choco
0
150
Cup cake- blueberry
0
150
Cup cake- lemon custard
0
150
Cup cake- strawberry
0
150
Cup cake- coffee
0
150
Cup cake-tiramisu
0
150
Cup cake- raspberry
0
150
Cup cake- apple
0
150
Cup cake-crumble
0
150
Total
24
41400
Wasana baker is the only cake shop in maharagama who pamper the cake requirement in the area, but they are not producing cup cakes and also they do not have a variety of cakes and also no sitting spaces as well.
Difference between Supply and demand in the area Unit
Value RS.
Demand
980
268000
Supply
24
41400
956
226600
Estimated revenue analysis Product
Unit Price RS.
No Of Units 1st year
2nd year
3rd year
1st year RS.
2nd year RS.
3rd year RS.
Chocolate gateaux
1500
300
350
350
450000
525000
525000
Black Forrest gateaux
1800
200
250
250
360000
450000
450000
Red Velvet Cake
2500
200
250
250
500000
625000
625000
Pineapple gateaux
2000
200
250
250
400000
500000
500000
Coffee gateaux
2000
300
350
350
600000
700000
700000
Lemon Swiss roulade
1000
250
300
300
250000
300000
300000
Cheese cake
1500
300
350
350
450000
525000
525000
Ribbon Cake
1500
400
450
450
600000
675000
675000
Cup cake- choco
150
1000
1500
2000
150000
225000
300000
Cup cake- blueberry
150
1000
1500
2000
150000
225000
300000
Cup cake- lemon custard
150
1000
1500
2000
150000
225000
300000
Cup cake- strawberry
150
1000
1500
2000
150000
225000
300000
Cup cake- coffee
150
1000
1500
2000
150000
225000
300000
Cup cake-tiramisu
150
1000
1500
2000
150000
225000
300000
Cup cake- raspberry
150
1000
1500
2000
150000
225000
300000
Cup cake- apple
150
1000
1500
2000
150000
225000
300000
Cup cake-crumble
150
1000
1500
2000
150000
225000
300000
TOTAL
Expected sales Value
4960000 6325000 7000000
Cost Analysis Fixed Assets 02 oven 02 Display fridges furniture Electric items
RS. 10,000,000 10,000,000 500,000 500,000
Pre operational expenses Rent(1 year) Registration Raw materials(1 Year) maintenance
360,000 40000 600,000 200,000
1,200,000
Working Capital Salary(1 Year) Electricity (1 Year) Water(1 Year) Gas(1 Year)
1,920,000 240,000 120,000 300,000
2,580,000
Total Project Cost
RS.
30,000,000
43,780,000
Estimated Profit Analysis Sales
1st Year RS. 4,960,000
2nd Year RS. 6325000
3rd Year RS. 7000000
(-)Cost of sales
(3,780,000)
(3,830,000)
(3,880,000)
Gross Profit
1,180,000
2,495,000
3,120,000
(-) Administration expenses Sales & Distribution expenses Finance expenses
(100,000) (250,000) (150,000)
(100,000) (250,000) (150,000)
(100,000) (250,000) (150,000)
Net Profit
680,000
1,995,000
2,620,000
