Launching Of BEST TASTE COFFEE in Lahore

Submitted To

SIR KASHIF ALI

SUBMITTED BY

SYNDICATERS

Haider Arshad
M. Faisal Tahir
Mustafa Ali
Umer Kramat
Ali Ahmed

E in Lahore

SHIF ALI

CATERS

Coffee market in Lahore

Pakistan is a tea culture.However with time we have seen Pakistan op

culture. Coffee culture hasbeen so fast in spreading its wings with new
right and centrein Pakistan. These coffee shops have played an impor
the masses in Pakistan.Now that coffee awareness has grown to such
competition.Younger generation in Pakistan definitely prefers coffee ov
becausecoffeeis more hip than tea but also because coffee is more he
going thantea ever has been.Professionals in Pakistanwho need tobe
fastquitting the frequent tea breaks with fewer coffee breaks.In the ma
aremany varieties of instant coffee mixes available.Ironically now in P
considered more difficult now that is how intenselycoffee culture has t
coffee in everyday products especially bakeryproducts has become ve
brewit in hot water, sprinkle with nutmeg, you can add sugar later acc
on a pan over low heat for almost three minutes then pour it over the
whipped cream and enjoy your coffee in the most unusual way

We are going to launch a new coffee brand in Lahore named as BEST

For this purpose we have divided our target area into different segmen
We have following few assumptions regarding our new launching of co
ASSUMPTIONS
Starting Pri
20
Variable Co
70%
FIXED COST 5000000
POPULATIO 7800000

PRICE DEMAND
20 2080289738
21 1849146433
22 1664231790
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38

1512937991
1386859825
1280178300
1188736993
1109487860
1040144869
978959876
924573217
875911468
832115895
792491329
756468995
723579039
693429912.5
665692716
640089150

CONCLUSION
We have decided to go in the market
Its demand and revenue are highest

and in Lahore named as BEST TASTE COFFEE

rget area into different segmentation according to targeted customers
arding our new launching of coffee sachet
TOTAL REVENUE FIXED COST VARIABLE COST TOTAL COST
41605794750

5000000

29124056325

29129056325

38832075100

5000000

27182452570

27187452570

36613099380

5000000

25629169566

25634169566

34797573790.9091
33284635800
32004457500
30907161814.2857
29956172220
29124056325
28389836417.6471
27737196500
27153255521.0526
26627708640
26152213842.8571
25719945845.4545
25325266369.5652
24963476850
24630630492
24323387700

5000000
5000000
5000000
5000000
5000000
5000000
5000000
5000000
5000000
5000000
5000000
5000000
5000000
5000000
5000000
5000000

24358301653.6364 24363301653.64
23299245060
23304245060
22403120250
22408120250
21635013270
21640013270
20969320554
20974320554
20386839427.5 20391839427.5
19872885492.3529 19877885492.35
19416037550
19421037550
19007278864.7368 19012278864.74
18639396048
18644396048
18306549690
18311549690
18003962091.8182 18008962091.82
17727686458.6957 17732686458.7
17474433795
17479433795
17241441344.4 17246441344.4
17026371390
17031371390

decided to go in the market with market price Rs.20 per sachet as it

nd and revenue are highest at when its price is Rs.20 per sachet.

customers

MARGINAL REVENUE MARGINAL COST PROFIT / LOSS

12476738425
36751785340

25107162816.7473

11644622530

34763952923.3333

23785023116.3303

10978929814

33133341976.7091
31771697784
30617597649
29626983487.3626
28767435199.2857
28014568436.2
27349691519.1471
26758236592.8235
26228682272.7193
25751797138.9474
25320097914.2571
24927454482.3117
24568797338.5652
24239897774.3478
23937200542
23657694945.52

22699069846.6931 10434272137.2727
21791307051.5237
9980390740
21021260406.7961
9596337250
20359834951.1496 9267148544.28571
19785583541.6384
8981851666
19282351547.3352
8732216897.5
18837740602.7728 8511950925.29412
18442077652.0299
8316158950
18087705625.8978 8140976656.31579
17768484556.7308
7983312592
17479433771.4737 7840664152.85714
17216470739.0401 7710983753.63636
16976217438.3524 7592579910.86956
16755854730.2971
7484043055
16553011405.6425
7384189147.6
16365678647.0562
7292016310

per sachet as it has maximum profit at this stage.

per sachet.

Class Distributions
Upper Class
Middle Upper Class
Middle Lower Class
Lower Upper Class
Lower Middle Class

DHA (Upper Class)

Sr.#

Price
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20

House
16
18
20
22
24
26
28
30
32
34
36
38
40
42
44
46
48
50
52
54
Total Demad

Hold Need
Demand
9169875000 573117187.5
9169875000 509437500
9169875000 458493750
9169875000 416812500
9169875000 382078125
9169875000 352687500
9169875000 327495536
9169875000 305662500
9169875000 286558594
9169875000 269702206
9169875000 254718750
9169875000 241312500
9169875000 229246875
9169875000 218330357
9169875000 208406250
9169875000 199345109
9169875000 191039062.5
9169875000 183397500
9169875000 176343750
9169875000 169812500
98051

Average Income= 1,000,000

Percentage of Spendings on Coffe
Agregate Spending on Coffee= 8.
DHA population is 5.7% of Lahor
Family Type= Nuclear Family
Family Members= 4 (approx)
Number of Residence= 444,600/4
Demand Estimation= 82,500*111

Wapda Town (Middle Upper Class)

Sr.#

Price
1
2
3
4
5
6
7
8
9

House Hold Need

Demand
16
7568870400 473054400
18
7568870400 420492800
20
7568870400 378443520
22
7568870400 344039564
24
7568870400 315369600
26
7568870400 291110400
28
7568870400 270316800
30
7568870400 252295680
32
7568870400 236527200

Average Income= 800,000

Percentage of Spendings on Coff
Agregate Spending on Coffee= 7
Wapda Town population is 7.6%
Family Type= Partial Nuclear Fam
Family Members= 5 (approx)
Number of Residence= 592,800/5
Demand Estimation= 63,840*118

10
11
12
13
14
15
16
17
18
19
20

34
36
38
40
42
44
46
48
50
52
54
Total Demand

7568870400
7568870400
7568870400
7568870400
7568870400
7568870400
7568870400
7568870400
7568870400
7568870400
7568870400

222613835
210246400
199180800
189221760
180211200
172019782
164540661
157684800
151377408
145555200
140164267
466076

Wapda Town population is 7.6%

Family Type= Partial Nuclear Fam
Family Members= 5 (approx)
Number of Residence= 592,800/5
Demand Estimation= 63,840*118

Iqbal Town (Middle Lower Class)

Sr.#

Price
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20

House Hold Need

Demand
16
6793800000 424612500
18
6793800000 377433333
20
6793800000 339690000
22
6793800000 308809091
24
6793800000 283075000
26
6793800000 261300000
28
6793800000 242635714
30
6793800000 226460000
32
6793800000 212306250
34
6793800000 199817647
36
6793800000 188716667
38
6793800000 178784211
40
6793800000 169845000
42
6793800000 161757143
44
6793800000 154404545
46
6793800000 147691304
48
6793800000 141537500
50
6793800000 135876000
52
6793800000 130650000
54
6793800000 125811111
total Demand
4411213017

Average Income= 650,000

Percentage of Spendings on C
Agregate Spending on Coffee=
Iqbal Town population is 13.4%
Family Type= Partial Nuclear
Family Members= 5 (approx)
Number of Residence= 1,045,
Demand Estimation= 32,500*

Muzang (Lower Upper Class)

Sr.#

Price
1
2
3
4
5
6

16
18
20
22
24
26

House Hold Need

Demand
1921920000 120120000
1921920000 106773333
1921920000
96096000
1921920000
87360000
1921920000
80080000
1921920000
73920000

Average Income= 350,000

Percentage of Spendings on C
Agregate Spending onCoffee=
Muzang population is 8.8% of
Family Type= Joint Family
Family Members= 6 (approx)
Number of Residence= 686,40
Demand Estimation= 16,800*

7
8
9
10
11
12
13
14
15
16
17
18
19
20

28
30
32
34
36
38
40
42
44
46
48
50
52
54
Total Demand

1921920000
1921920000
1921920000
1921920000
1921920000
1921920000
1921920000
1921920000
1921920000
1921920000
1921920000
1921920000
1921920000
1921920000

68640000
64064000
60060000
56527058.82
53386666.67
50576842.11
48048000
45760000
43680000
41780869.57
40040000
38438400
36960000
35591111.11
917603901

Percentage of Spendings on C
Agregate Spending onCoffee=
Muzang population is 8.8% of
Family Type= Joint Family
Family Members= 6 (approx)
Number of Residence= 686,40
Demand Estimation= 16,800*

Mhugal Pora (Lower Middle Class)

Sr.#

Price
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20

House Hold Need

Demand
16
261300000
16331250
18
261300000 14516666.67
20
261300000
13065000
22
261300000 11877272.73
24
261300000
10887500
26
261300000
10050000
28
261300000 9332142.857
30
261300000
8710000
32
261300000
8165625
34
261300000 7685294.118
36
261300000 7258333.333
38
261300000 6876315.789
40
261300000
6532500
42
261300000 6221428.571
44
261300000 5938636.364
46
261300000 5680434.783
48
261300000
5443750
50
261300000
5226000
52
261300000
5025000
54
261300000 4838888.889
Total Demand
124755400

Total Company Demand

Sr #

Area
1 DHA

Demand
7947050747

Average Income= 150,000

Percentage of Spendings on C
Agregate Spending onCoffee=
Muzang population is 10.9% o
Family Type= Joint Family
Family Members= 6 (approx)
Number of Residence= 522,60
Demand Estimation= 3,000*8

2 Wapda Town
3 Iqbal Town
4 Muzang
5 Mhugal Pora
Company Demand

6559543850
5887830899
1158643674
157526636
21710595806

Area Under Study

DHA Lahore
Wapda Town
Iqbal Town
Muzang
Mughal Pora

Assumptions For DHA

(Upper Class)

ge Income= 1,000,000
tage of Spendings on Coffee= 8.25%
ate Spending on Coffee= 8.25% of 1,000,000=82,500
population is 5.7% of Lahore's Population= 5.7% of 7800000= 444,600
y Type= Nuclear Family
y Members= 4 (approx)
er of Residence= 444,600/4= 111,150
nd Estimation= 82,500*111,150= / Price Per Unit

Assumptions For Wapda Town

(Middle Upper Class)

ge Income= 800,000
ntage of Spendings on Coffee= 7.98%
ate Spending on Coffee= 7.98% of 800,000=63,840
a Town population is 7.6% of Lahore's Population= 7.6% of 7800000= 592,800
y Type= Partial Nuclear Family
y Members= 5 (approx)
er of Residence= 592,800/5= 118,560
nd Estimation= 63,840*118,560= / Price Per Unit

a Town population is 7.6% of Lahore's Population= 7.6% of 7800000= 592,800

y Type= Partial Nuclear Family
y Members= 5 (approx)
er of Residence= 592,800/5= 118,560
nd Estimation= 63,840*118,560= / Price Per Unit

Assumptions For Iqbal town

(Middle Lower Class)

erage Income= 650,000

centage of Spendings on Coffee= 5,5%
regate Spending on Coffee= 5.5% of 650,000=32,500
al Town population is 13.4% of Lahore's Population= 13.4% of 7800000= 1,045,200
mily Type= Partial Nuclear Family
mily Members= 5 (approx)
mber of Residence= 1,045,200/5= 209,040
mand Estimation= 32,500*209,040= / Price Per Unit

Assumptions For Muzang

(Lower Upper Class)

erage Income= 350,000

centage of Spendings on Coffee= 4.8%
regate Spending onCoffee= 4.8% of 350,000=16,800
zang population is 8.8% of Lahore's Population= 8.8% of 7800000= 686,400
mily Type= Joint Family
mily Members= 6 (approx)
mber of Residence= 686,400/6=114,400
mand Estimation= 16,800*114,400= / Price Per Unit

centage of Spendings on Coffee= 4.8%

regate Spending onCoffee= 4.8% of 350,000=16,800
zang population is 8.8% of Lahore's Population= 8.8% of 7800000= 686,400
mily Type= Joint Family
mily Members= 6 (approx)
mber of Residence= 686,400/6=114,400
mand Estimation= 16,800*114,400= / Price Per Unit

Assumptions For Mhughal Pora

(Lower Middle Class)

erage Income= 150,000

centage of Spendings on Coffee= 2%
regate Spending onCoffee= 2% of 150,000= 30000
zang population is 10.9% of Lahore's Population= 6.7% of 7800000=522,600
mily Type= Joint Family
mily Members= 6 (approx)
mber of Residence= 522,600/6=87,100
mand Estimation= 3,000*87,100= / Price Per Unit

Coffee Drin
Sr #`

Ages
Percentage of Coffee drinkers
1 18-25
16%
2 36-35
22%
3 36-45
30%
4 46-55
39%
5 56-above
40%

TOTAL DEM

Coffee Drinkers
Sr #`

Ages
Percentage of Coffee drinkers
1 18-25
18%
2 36-35
15%
3 36-45
13%
4 46-55
9%
5 56-above
9%

TOTAL DEM

Coffee Drinker
Sr #`

Ages
Percentage of Coffee drinkers
1 18-25
20%
2 36-35
16%
3 36-45
12%
4 46-55
4%
5 56-above
7%

TOTAL DEM

Coffee Drink
Sr #`

Ages
Percentage of Coffee drinkers
1 18-25
2 36-35
3 36-45
4 46-55
5 56-above

4%
5%
6%
4%
4%

TOTAL DEM

Coffee Drinkers

Sr #`

Ages
Percentage of Coffee drinkers
1 18-25
2 36-35
3 36-45
4 46-55
5 56-above

2%
1%
4%
6%
2%

TOTAL DEM

Coffee Drinkers Age Distribution (DHA)

Population of DHA

No of Coffee Drinkeres
444,600
71136
444,600
97812
444,600
133380
444,600
173394
444,600
177840
TOTAL DEMAND

Coffee Drinkers Age Distribution (Wapda Town)

Population of Wapda Town

No of Coffee Drinkeres
592,800
94848
592,800
130416
592,800
177840
592,800
231192
592,800
237120
TOTAL DEMAND

Coffee Drinkers Age Distribution (Iqbal Town)

Population of Wapda Town

No of Coffee Drinkeres
1,045,200
167232
1,045,200
229944
1,045,200
313560
1,045,200
407628
1,045,200
418080
TOTAL DEMAND

Coffee Drinkers Age Distribution (Muzang)

Population of Wapda Town

No of Coffee Drinkeres
686,400
109824
686,400
151008
686,400
205920
686,400
267696
686,400
274560
TOTAL DEMAND

Coffee Drinkers Age Distribution (Mughal Pura)

Population of Mhughal Pura

No of Coffee Drinkeres
83616
114972
156780
203814
209040
TOTAL DEMAND

522,600
522,600
522,600
522,600
522,600

DHA)
Willing to Try new Coffee of existing drinkers

Estimated Demand
10%
7113.6
8%
9781.2
20%
13338
9%
17339.4
23%
17784
65356.2

Willing to Try new Coffee of existing drinkers

Estimated Demand
20%
9484.8
18%
13041.6
19%
17784
30%
23119.2
10%
23712
87141.6

Willing to Try new Coffee of existing drinkers

Estimated Demand
7%
16723.2
9%
22994.4
8%
31356
5%
40762.8
4%
41808
153644.4

Willing to Try new Coffee of existing drinkers

Estimated Demand
7%
10982.4
8%
12080.64
10%
41184
12%
24092.64
5%
63148.8
151488.48

da Town)

al Town)

uzang)

hal Pura)

Willing to Try new Coffee of existing drinkers

5%
4%
1%
2%
3%

Estimated Demand
8361.6
11497.2
15678
20381.4
20904
76822.2

DHA (UPPER CLASS)

700000000
600000000
500000000
400000000
300000000
200000000
100000000
0
16 18 20 22 24 26 28 30 32 34 36 38 40 42 44 46 48 50 52 54

Muzang (Lower Upper Class)

140000000
120000000
100000000
Muzang (Lower Upper Class)

80000000
60000000
40000000
20000000
0

MARGINAL COST CURVE

30000000000
25000000000
20000000000
15000000000
10000000000
5000000000
0

25000000000
20000000000
15000000000
10000000000
5000000000
0
20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37

Wapda Town (Middle Upper Class)

500000000
400000000
300000000
200000000
100000000
0

16 18 20 22 24 26 28 30 32 34 36 38 40 42 44 46 48 50 52

48 50 52 54

Mhugal Pora (Lower Middle Class)

ss)

wer Upper Class)

18000000
16000000
14000000
12000000
10000000
8000000
6000000
4000000
2000000
0
16 18 20 22 24 26 28 30 32 34 36 38 40 42 44 46 48 50 52

er Class)

Iqbal Town (Middle Lower Class)

450000000
400000000
350000000
300000000
250000000
200000000
150000000
100000000
50000000
0
16 18 20 22 24 26 28 30 32 34 36 38 40 42 44 46 48 50

42 44 46 48 50 52 54

e Class)

42 44 46 48 50 52 54

MARKET DEMAND
2500000000
2000000000
1500000000
1000000000
500000000
0
20

21

22

23

24

25

26

27

28

29

30

31

32

33

34

wer Class)

40 42 44 46 48 50 52 54

30

31

32

33

34

35

36

37

38