Ice Cystals Shave IceEssay Preview: Ice Cystals Shave IceReport this essay[pic 1][pic 2][pic 3][pic 4]Executive SummaryIce Crystals will sell shave ice as its primary product in addition to soft drinks, slushes and juices. Shave ice is the hottest new dessert since Ice Creams! Shave ice is heating up rapidly and shows no sign of cooling.Shave ice has been around for many years, beginning in Asia, then becoming popular in Hawaii. People would shave ice by hand, creating a cold, flaky snow. Then theyd top it with fruit juices to create a refreshing treat. Something this good couldnt remain a secret. In recent years, the taste for shave ice has spread all over the world.Shave ice is much different than a snow-cone in that it is made by a small counter-top machine that shaves ice rather than grinding it like a snow-cone machine, which results in ice so fine that it rivals real snow! The snow is then placed in bowl or cup and filled with high quality tropical fruit flavors. Because the snow is so soft the syrup is held within its tender texture versus settling to the bottom like traditional snow-cones. Since the syrup is absorbed into the snow, it must be eaten with a spoon instead of a straw.Because shave ice is so tender and made with the thickest, best-tasting tropical fruit flavors, it is preferred by adults and children of all ages and ethnic backgrounds.A kiosk business will be built commercial property on Shahrah-e-Faisal in Karachi, Pakistan. Other products will be incorporated into the business including beverages (soft drinks and juices).1.1 ObjectivesTo purchase a kiosk (12 x 20).To produce a net profit of at least Rs. 500,000 by the third year of operation.To sell 20 different tropical and Mexican flavored syrups.To sell other products such as soft drinks, slushes and juices.1.2 MissionIce Crystals will produce and sell shave ice with 20 different flavored syrups, soft drinks, and juices to consumers in Karachi, Pakistan. Retail customers will be in the mid- to- high income bracket, and will range in age from children to adults.1.3 Keys to SuccessThe keys to success are:Will be a new entrant in the food industry of the city of Karachi, Pakistan.Business will be located on a major supermarket, next to several housing/commerce developments, and near schools and parks.Product quality will include a large variety of tropical and Mexican flavored syrups.Business has the potential for expansion into other cities.City of Karachi experiences warm to hot weather approximately seven months of the year.Company SummaryIce Crystals will be known for selling shave ice with 20 different tropical and Mexican flavored syrups to children and adults in Karachi, Pakistan. Other products will include soft drinks, slushes and juices.2.1 Company OwnershipIce Crystals will be owned by Maliha Shahzad as a sole proprietorship.2.2 Start-up SummaryStart-up costs will be approximately £52,010 which will include facility construction including sidewalks, parking, inventory, mandatory city permits, and other expenses associated with opening this business. The start-up costs will be financed through a loan. Appendix A provides more detailed information regarding permit requirements, equipment, construction costs, and land improvements required to open this new business.
2.3 Company Locations and FacilitiesIce Crystals will be located on Shahrah-e-Faisal in Karachi, Pakistan which experiences a high volume of traffic on a daily basis. Approximately 28,000 vehicles pass through this location on a daily basis making it an ideal location for business. A 12 x 20 Kiosk facility will be built on a commercial property. Other major businesses located on Shahrah-e-Faisal include Lal Qilla Restaurant, Capsicum Restaurant, Kaybees Restaurant, KFC Restaurant, Dunkin Donut Shop, Steak House, and several restaurants.ProductsMain products to be sold through the Ice Crystals business will be shave ice topped with tropical and Mexican flavored syrups in three main sizes: small, medium, and large. Other products will include three soft drinks (Sprite, Coke, and Diet-Coke), slushes and juices in 10 different flavors.3.1 Product DescriptionOne major product will be sold through Ice Crystals which will include shave ice topped with tropical and Mexican flavored syrups. Twenty different tropical and Mexican flavored syrups will be sold and include the following:Wild Watermelon, Pina Colada, Pink Lemonade, Guava Grape, Cherry Jubilee, Kiwi, Strawberry, Blue Bubble Gum, Orange Mango, Raspberry Red, Luscious Lime, Bubbly Banana, Tamarindo, Jamaica, Hortacha, Melon, Papaya, Manzana, and Limon.Other products will include soft-drinks in three flavors: Coke, Diet-Coke, and Sprite, and juices in different flavors (strawberry, banana and mango).3.2 Competitive ComparisonNo other business in Karachi specifically caters to the shaved ice market on a large scale. It is anticipated that prices will be competitive with other businesses who sell shave ice on a smaller basis.3.3 Sales LiteratureSales literature to be distributed to the general community will include fliers, advertisement in the local newspaper, social networking sites and other print media.3.4 SourcingIce Crystals will purchase products from Hawaiian Shave Ice manufactures and distributes high-quality syrups and ice shavers. All equipment and supplies are available through a regional distributor. Mexican flavored syrups will be purchased from online stores in Pakistan.3.5 Future ProductsIt is anticipated that 10-15 additional syrups will be added such as Spearmint, Black Cherry, Cinnamon, Blueberry, Peach, Red Apple, Tutti Frutti, Coconut, Cola, Green Apple, Tangerine, and Vanilla. Also, future products to be sold will include ice cream in vanilla and chocolate flavors.Market Analysis SummaryKarachi is also referred to as the “center of opportunity” with benefits created by the government becoming one of Pakistans most promising new commercial/industrial areas.Shave ice is an ideal business for Karachi given the potential market segment, location, and climate. Utilizing averaged priced units (Rs. 125) for shave ice and other products to be sold, the shave ice business has the potential market of Rs. 1200,000 gross sales by the third year of operation.4.1 Market Segmentation
3.2 Overview
The sales market for shave ice in Karachi is strong and the local business is actively looking for new marketshare. The demand for shaving ice in Karachi is a significant concern for the Karachi Business Council (KBC). Based on their recent research and business case studies, they have identified three areas: High demand (low market share) for shaving ice in Karachi and local business confidence in increasing shaving area penetration by the KBC. High demand in and around Rawalpindi and Karachi may also be the driving factor in attracting the latest and largest customers in all markets for shaving ice. There may also be a strong and growing demand in areas which are not part of high demand areas (e.g., Rawalpindi, Karachi). As the city grows in size, the demand for shave ice on a larger scale will help attract many more customers in future.
3.3 Marketing
Product names are given in the order of price. Shaving products are marketed by the company. Although the price is a factor in the marketing, as some of these sales of shaving products start out with only $15 each, the cost of other products such as shaving cream, and so on is expected to drop. Shaving ice should ideally be in a range between 50 cents and $25 or between $30 and $60. However, depending on the strength of demand, shaving is possible to purchase an item which offers a higher retail price than some other shaving products, thus making it desirable. It will be considered best priced for high quality shaving products and should only be purchased via online store/cart.Shave