With the growing
incidence of medical instruments, people are becoming more health conscious. People
try to consume less oily but tasty food. Taking this scope, I intend to set up
a momo stall in Oman. The studies have shown that Oman’s fast food market is
growing rapidly. Moreover, people of Oman are shifting towards western culture.
The price of momo will be kept lower compared to other fast food products and
the stall will be established at the heart of the city. It is found that the business
plan is financially viable.
1.0 Introduction to business plan
With the rapid pace of
advancement, people prefer more of having healthy and tasty food. During the
past few years, various institutions increase the awareness of having balanced
diet for maintain healthy life. Therefore, I intend to set up a momo stall in
the Sultanate of Oman under the name “More Momo”. The present study prepares a
business plan by evaluating economic, financial and market aspects of setting
up a fast food business.
1.1 Business description
More Momo will be a new
business aiming to deliver oil free and healthy food to people of Sultanate of
Oman. The stall will be opened in a crowded place so that it can attract most
of the people. Moreover, momo is prepared with very less oil and it contains
many vegetables which are good for health. As a result, it can attract each
category of people. The target population will not be restricted to only young
population. The stall will have both the sitting arrangements and take away
options. Customers can have healthy and tasty food in a pleasant atmosphere (Ukers, 1935).
Product offered by business
One of the crucial steps of setting up a new
business is to decide range of products and services to be offered. This will
help to identify the target market. More Momo will concentrate on larger
diversified fast food industry by focusing on healthy and delicious food. In
More Momo, people will have options of choosing from varieties of momos
starting from steamed momo, fried momo pan fried momo and Burger with momo. As a desert option, chocolate momo and cold
drinks will also be available. Each type of momo will be available in
vegetable, panner, chicken, mutton as well as lamb. Various taste of sausage
will be used along with dips to add more taste to momos and make it attractive
towards young generation. With all these variations, people can get wide range
of healthy and tasty food.
Location of the business
“More Momo” stall will
be situated primarily at the Muscat city center which is always populated and
very busy shopping mall in the Muscat city. The transportation facility is very
good of this mall. As the Muscat city centre is situated at the heart of the
city, it can attract wide section of upper and middle class people (research, 2014). Moreover, the mall
is visited by young school and college students (Anon., 2001).
The proposed stall will be situated at the top floor just beside the food
court. More Momo will involve 100 square feet area for the business purposes
and 2000 square feet area to facilitate sitting arrangements for customers. 600
square feet area will be allocated for preparing food and delivering to the consumers.
2.0 Target segment of the business
2.1 Selection of the market
More Momo will formulate
its marketing strategy in such a manner that it can confine the market of
University and college students. In addition, it will also capture upper class population
who like mall culture. The survey reports reveal that mostly female population
of Oman likes to consume less oily and cholesterol free food to keep their skin
healthy (Oshima & Wacker, 2014). As a result, the primary
target market of More Momo will be students whose age ranging between 15 to 25
years. Besides, people who usually
migrates from one country to another, they are also targeted and they will
belong to the age group of 25 to 37 years (Joshi & Ghosal, 2013).
(Kharusi et al., 2012)
2. 2 Structure of the market
In order to promote new
business ventures in Oman, Sultanate of Oman has undertaken several
entrepreneurial friendly measures. Oman became fifth country as per the
economic freedom index (Oxford Business Group, 2015). The numbers of fast
food centers are increasing by 5.30 percent. In 2015, Oman was the 26th
country out of 30 countries in terms of global retail development index. Oman
was the $11.70 billion country in retail chain with compounded annual growth
rate of 7.6 percent. It is perceived that the fast food retail market share
will increase to US $13.2 billion by the end of 2018. A major shift is observed
in spending patterns as the citizens winds up noticeably wealthier; an
expanding number of high-total assets people have prompted a development of
extravagance and form brands. Improved state expenditure on framework and
higher salaries has supported buying power, while rising quantities of exile
laborers and outside travelers were likewise driving retail development (Aaron Allen & Associates, 2012).
(Euromonitor International, 2015)
3.0 Value proposition
3.1 Benefits obtained from products
More Momo will be able
to deliver healthy and tasty fast food to the customers. In addition, the
customers can have their lunch and evening snacks at comparatively cheaper
cost. To provide ultimate satisfaction to the customers, More Momo will have
pleasant store environment. Customers can spend their quality time having
preferred food. Price of momo will be kept lower compared to other fast food
like pizza and crispy chicken (Zimmerman, 2013).
Moreover, the customers are also getting chocolate momo and chocolate
brownie and chocolate crusher as desert items. These product values will help
More Momo to gain competitive advantage over KFC, McDonalds and Pizza Hut (Shahi et al., 2007). Quality of food
items will be maintained to acquire reputation in the market (Stafford, 2003).
3.2 Business values
I will set up unique
marketing proposition to enhance awareness about quality of food among
customers (Hsieh, 2010).
More Momo will be opened in the Muscat city centre. The store will have a
primary focus on attracting college and University students who are
increasingly becoming health conscious. Moreover, office goers also can have a
small business talks at store while having their food. As the store will be at
convenient location and have customer friendly approach, it can attract various
people (Sair, 2014).
4.0 Marketing strategy
4.1 Positioning strategy
More Momo will design
its positioning strategy in such a way that it can attract young population who
are influenced by the western culture. Below mentioned strategies will be
More Momo will offer fresh prepared food
with god quality ingredients.
Both the vegetarian and non vegetarian
momos will be available at the store with chicken, mutton, cheese, potato,
The store will concentrate on using
quality of raw materials. Oil used to produce momo should be high quality to
facilitate health conscious customers.
hold client base, and increment its ubiquity, the servers and assistants of the
stall must be trained to make them more client benevolent and furthermore
prepared to oversee time all the more adequately so clients are happy with
their quick conveyance.
and fame is one of the important angles to accomplish competitive advantage in
the focused business condition. Consequently it is required to receive
legitimate marking system by representing esteem, scarceness, toughness,
propriety, appropriateness and the issue of maintainability (Fuchs & Diamantopoulos, 2010).
The ‘More Momo’ name
will replicate the specialization of the shop for various kinds of momos. This
name likewise connotes that individuals can appreciate heavenly momos and they
will intend to have more momos or they have to visit the place again. The
slogan for the shop will be ‘Heavenly and sound sustenance momo station’. This
slogan will imply that the momos will be made of quality and tasty things. This
product excludes any sort of additives and chemicals. Accordingly it can be
expressed that the name and slogan of the slow down can fundamentally improve
the brand picture of the eatery.
The logo of the Momo
Mania will incorporate a picture of toon momo with the word MM behind the
picture written in stylish font. As Omani individuals are very little knowledgeable
about the momos, this logo will help them to comprehend the shape and look of
the momo. This can assemble a strong picture over the long term. The shade of
the logo will be yellow that will mirror the lively shade of the brand.
4.3 Marketing mix strategy
As a marketing mix
strategy, tag line of the company will be “quality products at its best price
at your doorstep”. This tag line explains all elements of marketing mix
strategy, namely, product, price and place. Firstly, the customers will get various
types of momos with different sausages and dips. All momos will be prepared
with good ingredients. Secondly, price of the momos will be cheaper compared to
other fast food. Lastly, the shop is established at the heart of the city from
where transportation is very easy.
4.4 Entrepreneurial strategy
will start the business preliminary as a sole entrepreneur with the help of my
relatives and associates who stay in Oman. However, I will expand my business
at more international locations by adopting effective managerial policies. Entrepreneurial
strategy will be transformed into a managerial policy by taking new ways of
developing and enhancing capabilities to cope up with changes. I will also
enhance my risk taking capability. The managerial policy will be developed by
delegating tasks properly, understanding goal clearly, identifying key
competitors and keeping the ways of communication open and clear.
5.0 Financial planning
5.1 Expenditure for promotional
Total marketing expense
for the company will be OMR 19954. The amount will be spent on advertisement,
publication of pamphlets, printing banners and other programs. OMR 1450 will
also be spent on providing training to the staffs. The detailed marketing cost
is shown below:
OMR = 1.92 British Pound
5.2 Sales forecast
pricing strategy will be done. This will cause different prices for different
items. Steamed momo will be priced at OMR 4. Fried and pan fried momo price is
kept same at OMR 5. Chocolate momo price is kept comparatively higher as the
raw material cost is very high. Beverages will be available at OMR 4. Moreover,
in the first year, it is assumed that 700 plates of steamed momo will be sold
while 900 plates of fried momo is assumed to be sold. Considering this,
forecasted yearly income will be 1,47,600 OMR.
OMR = 1.92 British Pound
The prediction for sales
has been bifurcated in monthly basis. The below chart shows the growth rates of
sales for every type of momo;
5.3 Forecast of revenue
By virtue of the
presumptions, the principal year’s gross benefit has been figured below. In
this manner, from the above measuring information, one might say that More Momo,
will produce a gross benefit of OMR 16,800 in the primary year. In addition, in
the initial five months, More Momo, won’t have the capacity to create a
positive benefit, yet as the limited time offers, and notices increment and More
Momo ends up plainly famous among the youthful group, it will begin bringing
about positive benefit in the after months. This has been delineated in the
OMR = 1.92 British Pound
5.4 Break even point
equal the initial investment investigation of any business is given by the
position which if the organization neglects to achieve, it will close down. The
breakeven point for More Momo can be figured in the wake of isolating all the
obligatory costs of lease, charge installments, interests, and so on, the day
by day costs must be incorporated into the breakeven examination. More Momo’s
breakeven investigation has been directed as takes after;
above study presents different economic, financial and market parameters that
can have a significant impact on momo business. It is found that the unit will
be financially viable in the short run. By breaking down More Momo’s business
forecaste and anticipated incomes, one might say that like all different
business wanders, it will bring about some fortune in the underlying periods of
setting up, yet will in the long run make benefits and develop, because of high
start up speculations and notice and limited time exercises. Be that as it may,
this wide promotion will be important to make More Momo’s objective clients focus
of its essence and soon it will accomplish the coveted competitive advantage
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and loss statement
Balance sheet for More Momo