Consulting Proposal Draft 1v311k
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Letter of Transmittal 14 February, 2007 Mr. Darius Cheung (CEO) tenCube Pte. Ltd Blk S15 #01-08B, 3 Science Drive 2 Singapore 117543 Dear Mr. Darius Cheung, The following proposal outlines the purpose and objectives of the Xcent Consulting Team for the strategy analysis and development for tenCube Pte. Ltd. We have included a proposed schedule and budget. The proposal is subject to your approval, and may be amended if necessary.
Upon your approval, please sign the attached letter of acceptance (Appendix B) and return it by February 27, 2007 to:
Dr Kim H.W., SOC1, #05-10 [Xcent Consulting] Information Systems Department School of Computing National University of Singapore 3 Science Drive 2 Singapore 117543 If you have any questions concerning the proposal, please the team through (+65) 97500523 (Soe Hla Win), or (+65) 97914034 (Deepa Ramanathan). We look forward to working with you and the other of your company on this project.
Sincerely, ………………………………………………………….
…………………………………………………………..
Deepa Ramanathan
Duong Hinh Bao
………………………………………………………….
…………………………………………………………..
………………………………………………………….
…………………………………………………………..
Seah Mui Yen,
Elaine Soe Hla Win
Lok Fang Fang,
………………………………………………………….
Stella Ng Min Jia
Zhu Yuan, June cc: Dr. KIM Hee-Woong
Proposal for New Business Model Development A Consultancy Project for Indian Cuisine @ The Deck.
Innova Consulting Pte Ltd Creating a better world.
Executive Summary
1
Innova Consulting Pte Ltd Creating a better world.
Table of Contents EXECUTIVE SUMMARY............................................................................................................................1 TABLE OF CONTENTS...............................................................................................................................2 1. BACKGROUND.........................................................................................................................................3 2. PURPOSE....................................................................................................................................................4 3. PLAN OF ACTION....................................................................................................................................6
PHASE 1: PRIMARY AND SECONDARY MARKET RESEARCH.....................................................................6 PHASE 2: MARKETING STRATEGY DEVELOPMENT..................................................................................7 PHASE 3: ANALYSIS AND DEVELOPMENT OF PROPOSED IDEAS.................................................................7 STRATEGIC PLANNING PROCESS..........................................................................................................7 MARKETING MIX MODEL (4PS).........................................................................................................8 PHASE 4: FINAL REPORT AND PRESENTATION.......................................................................................8 4. BENEFITS...................................................................................................................................................9 5. KEY DELIVERABLES...........................................................................................................................10 6. SCHEDULE..............................................................................................................................................11 7. BUDGET...................................................................................................................................................13 8. RESPONSIBILITIES...............................................................................................................................14
8.1 THE PROSPECT’S RESPONSIBILITIES.............................................................................................14 8.2 THE CONSULTANTS’ RESPONSIBILITIES.........................................................................................14 9. QUALIFICATIONS.................................................................................................................................15
2
Innova Consulting Pte Ltd Creating a better world.
1. Background Indian Cuisine @ The Deck is an Indian Cuisine stall in NUS arts canteen, aka The Deck. The business was started in Year 2003 in The Deck to provide authentic Indian food for NUS students and staff. The owner and chef of the stall is Mr Bala, who has a total of 14 years of experience in hotel/food industry and 4 years of specialization in Indian Cuisine. Mr Bala takes charge and ownership of 2 canteen stalls in 2 different institutions. Indian Cuisine @ The Deck aims to provide for its customers the most popular range of Indian food in Singapore, which includes prata, murtabak, and other familiar Indian dishes to the locals. The products are priced affordably to the students, and their quality is satisfying to the customers. The stall itself is also well situated in the busiest canteen of NUS. Being the only Indian food stall in the Deck, Indian Cuisine @ The Deck receives no competition from the same genre within the vicinity.
The operating style of Indian Cuisine @ The Deck is plain traditional. It is staffed by Mr Bala himself and 2 other family as helpers. Generally, the daily operations include only cooking, cashiering, serving and food preparation. Mr Bala assumes responsibility of the more technically involved cooking such as prata and murtabak making, and his helpers would serve the rest such as the orders for noodle and rice. Food preparation would be handled by every staff as it is not concurrent with the rest of the tasks. Besides the daily routines, Mr Bala takes full responsibility of the management of supply chain, logistic and ing.
3
Innova Consulting Pte Ltd Creating a better world.
2. Purpose Indian Cuisine @ The Deck is aspired to expand its operation and generate more revenue. It has seen the emergence of a supper crowd, and the growth of a health-conscious segment amongst the student and staff population. It has also observed that amongst the range of offered product, prata and murtabak have far greater demand and potential for revenue making than the rest. To capitalize in these new opportunities, Indian Cuisine @ The Deck need to device new strategies to fulfill its unrealized potential and to attract these new customer groups to suffice the goal of expansion. However, Indian Cuisine @ The Deck currently lacks knowledge, the resources and the organizational structure to any plan that exploits the above opportunities. As such, the business requested for a consultation service to help Indian Cuisine @ The Deck creates a platform to take advantage of its underutilized strength, expand his business and attract new customers. This would include the creation of a new business model, the invention of new values for the customers and a marked improvement in organizational efficiency. The scope of the requested consultation service can be summarized by the following:
1. Identify the targeted customers, analyze their needs and design the strategies which generate values that match their expectations.
2. Develop a new system of operation in order to achieve greater economical values and gain higher level of customer satisfaction. At the end of the consultation project, Indian Cuisine @ The Deck would be able to embark on its expansion campaign.
4
Innova Consulting Pte Ltd Creating a better world.
5
Innova Consulting Pte Ltd Creating a better world.
3. Plan of Action
Phase 1
Phase 2
Primary and Secondary Market Research
Marketing Strategy Development
Phase 3
Analysis and Development of Proposed Ideas
Phase 4
Final Report and Presentation
Phase 1: Primary and Secondary Market Research
6
Innova Consulting Pte Ltd Creating a better world. Market Survey
Provides accurate information on the requirements of target group
Allow the creation of a well thought out marketing mix
Achieves maximum satisfaction for customers Phase 2: Marketing Strategy Development
Phase 3: Analysis and Development of Proposed Ideas
Strategic Planning Process
Budgeting Consolidation And approval
7
Innova Consulting Pte Ltd Creating a better world. Marketing Mix Model (4Ps)
Place
Product
Market Mix
Price
Promotion
Phase 4: Final Report and Presentation
8
Innova Consulting Pte Ltd Creating a better world.
4. Benefits At the end of the consultation project, Indian Cuisine @ The Deck could materialize the following benefits:
1. Ability to take full advantage of its current strength – This includes the building of strategy and operation mode around profitable products, i.e. prata and murtabak. The benefit is in 2-folds: first, the maximization of profit from profitable products; second, the minimization of cost from less gainful products. 2. Marked expansion of customer base – With the attraction of new customers and the more frequent spending from the existing customers, Indian Cuisine @ The Deck develops a larger market share in its current market environment. 3. Rationalized business system – Business processes would be streamlined and run in a systematic manner to optimize efficiency and cost-effectiveness. In this mode, Indian Cuisine @ The Deck could cultivate a unique competitive advantage in the current and future competing environment. 4. Clear outlook, position and strategy – Indian Cuisine @ The Deck could gain a comprehensible view of the environment, its own position and the business strategy it employs. 5. Platform for future expansion – Given the new abilities and a sound business system, further expansion strategy could be readily adopted in the near future.
9
Innova Consulting Pte Ltd Creating a better world.
5. Key Deliverables At the end of the consultation project, Indian Cuisine @ The Deck will receive the key deliverables as the following: 1. Final Report – This report consists of the following list of key components: a. Market Analysis Report – this report will illustrate the findings in the market research and analysis phase. b. Business Design Report – this report will summarize the objectives, the research findings of business model and the final design of the business system for India Cuisine @ The Deck. c. Product Design Report – this report will elaborate the final design of the new product based on the research and the focus of Indian Cuisine @ The Deck. 2. Formal Presentation – the final presentation will focus on the recommendation of Innova Consulting, the research outcome that leads to it and the evidence that s it.
10
Innova Consulting Pte Ltd Creating a better world.
6. Schedule The following Gantt Chart illustrate the proposed project schedule:
11
Innova Consulting Pte Ltd Creating a better world.
12
Innova Consulting Pte Ltd Creating a better world.
7. Budget Expenses General Expenses Mileage: (15 cents) per Kilometer
Unit(s)
Estimated Amount (SGD$)
7 trips, 13 km per direction, 6 persons
163.80
Reproduction: (5 cents) per page
100 pages
5.00
Computer CDs: (50 cents) per disk
10 disks
5.00
Contingency: 10% of total Survey Expenses Reproduction: (5 cents) per page
17.38 200 pages
10.00
Business Reply Envelopes: (10 cents) per envelope
50 Envelopes
5.00
Postage Business Reply: (30 cents) per return
50 return
15.00
No.9 or No. 10 Envelopes: (30 cents) per envelope
50 envelopes
15.00
Postage Metered or Stamped: (30 cents) per envelope
50 envelopes
15.00
Telephone: (20 cents) per call Final Report Expenses Linen quality paper: (10 cents) per page
50 calls
10.00
4 units * 60 pages
24.00
Report Covers: (40 cents) per report
4 units
1.60
Binding of Report: (5 dollars) per report
4 units
20.00
Reproduction: (5 cents) per page TOTAL ESTIMATED AMOUNT
4 units * 60 pages
12.00 318.78
13
Innova Consulting Pte Ltd Creating a better world.
8. Responsibilities 8.1 The Prospect’s Responsibilities 1. Information Provision and collaboration a. Prospect would be required to respond to requests for information, approval of decisions and authorization of actions required for the purpose of consulting services within 5 working days. b. The Prospect’s representative would have to be available to meet with the consultants at least once a week unless there are extraordinary circumstances. 2. Providing Expertise – It would be required for the prospect to aid in the preparation of food for the purpose of market testing and in the creation of new recipes as required. 3. Reimbursement of expenses – this refers to the prompt reimbursement of used by the consultants for expenses incurred in the course of performing consultation service.
8.2 The Consultants’ Responsibilities 1. Communication – Innova Consulting should communicate regularly the project progress to the Indian Cuisine @ The Deck through weekly status reports. 2. Objective obligation – Innova Consulting is to fully commit itself to fulfill all obligations described in this document within the stated deadlines. 3. Deliverables – All deliverables are to be sent to the Indian Cuisine @ The Deck for review at least 2 working days before each stated deadline.
14
Innova Consulting Pte Ltd Creating a better world.
9. Qualifications
15
Upon your approval, please sign the attached letter of acceptance (Appendix B) and return it by February 27, 2007 to:
Dr Kim H.W., SOC1, #05-10 [Xcent Consulting] Information Systems Department School of Computing National University of Singapore 3 Science Drive 2 Singapore 117543 If you have any questions concerning the proposal, please the team through (+65) 97500523 (Soe Hla Win), or (+65) 97914034 (Deepa Ramanathan). We look forward to working with you and the other of your company on this project.
Sincerely, ………………………………………………………….
…………………………………………………………..
Deepa Ramanathan
Duong Hinh Bao
………………………………………………………….
…………………………………………………………..
………………………………………………………….
…………………………………………………………..
Seah Mui Yen,
Elaine Soe Hla Win
Lok Fang Fang,
………………………………………………………….
Stella Ng Min Jia
Zhu Yuan, June cc: Dr. KIM Hee-Woong
Proposal for New Business Model Development A Consultancy Project for Indian Cuisine @ The Deck.
Innova Consulting Pte Ltd Creating a better world.
Executive Summary
1
Innova Consulting Pte Ltd Creating a better world.
Table of Contents EXECUTIVE SUMMARY............................................................................................................................1 TABLE OF CONTENTS...............................................................................................................................2 1. BACKGROUND.........................................................................................................................................3 2. PURPOSE....................................................................................................................................................4 3. PLAN OF ACTION....................................................................................................................................6
PHASE 1: PRIMARY AND SECONDARY MARKET RESEARCH.....................................................................6 PHASE 2: MARKETING STRATEGY DEVELOPMENT..................................................................................7 PHASE 3: ANALYSIS AND DEVELOPMENT OF PROPOSED IDEAS.................................................................7 STRATEGIC PLANNING PROCESS..........................................................................................................7 MARKETING MIX MODEL (4PS).........................................................................................................8 PHASE 4: FINAL REPORT AND PRESENTATION.......................................................................................8 4. BENEFITS...................................................................................................................................................9 5. KEY DELIVERABLES...........................................................................................................................10 6. SCHEDULE..............................................................................................................................................11 7. BUDGET...................................................................................................................................................13 8. RESPONSIBILITIES...............................................................................................................................14
8.1 THE PROSPECT’S RESPONSIBILITIES.............................................................................................14 8.2 THE CONSULTANTS’ RESPONSIBILITIES.........................................................................................14 9. QUALIFICATIONS.................................................................................................................................15
2
Innova Consulting Pte Ltd Creating a better world.
1. Background Indian Cuisine @ The Deck is an Indian Cuisine stall in NUS arts canteen, aka The Deck. The business was started in Year 2003 in The Deck to provide authentic Indian food for NUS students and staff. The owner and chef of the stall is Mr Bala, who has a total of 14 years of experience in hotel/food industry and 4 years of specialization in Indian Cuisine. Mr Bala takes charge and ownership of 2 canteen stalls in 2 different institutions. Indian Cuisine @ The Deck aims to provide for its customers the most popular range of Indian food in Singapore, which includes prata, murtabak, and other familiar Indian dishes to the locals. The products are priced affordably to the students, and their quality is satisfying to the customers. The stall itself is also well situated in the busiest canteen of NUS. Being the only Indian food stall in the Deck, Indian Cuisine @ The Deck receives no competition from the same genre within the vicinity.
The operating style of Indian Cuisine @ The Deck is plain traditional. It is staffed by Mr Bala himself and 2 other family as helpers. Generally, the daily operations include only cooking, cashiering, serving and food preparation. Mr Bala assumes responsibility of the more technically involved cooking such as prata and murtabak making, and his helpers would serve the rest such as the orders for noodle and rice. Food preparation would be handled by every staff as it is not concurrent with the rest of the tasks. Besides the daily routines, Mr Bala takes full responsibility of the management of supply chain, logistic and ing.
3
Innova Consulting Pte Ltd Creating a better world.
2. Purpose Indian Cuisine @ The Deck is aspired to expand its operation and generate more revenue. It has seen the emergence of a supper crowd, and the growth of a health-conscious segment amongst the student and staff population. It has also observed that amongst the range of offered product, prata and murtabak have far greater demand and potential for revenue making than the rest. To capitalize in these new opportunities, Indian Cuisine @ The Deck need to device new strategies to fulfill its unrealized potential and to attract these new customer groups to suffice the goal of expansion. However, Indian Cuisine @ The Deck currently lacks knowledge, the resources and the organizational structure to any plan that exploits the above opportunities. As such, the business requested for a consultation service to help Indian Cuisine @ The Deck creates a platform to take advantage of its underutilized strength, expand his business and attract new customers. This would include the creation of a new business model, the invention of new values for the customers and a marked improvement in organizational efficiency. The scope of the requested consultation service can be summarized by the following:
1. Identify the targeted customers, analyze their needs and design the strategies which generate values that match their expectations.
2. Develop a new system of operation in order to achieve greater economical values and gain higher level of customer satisfaction. At the end of the consultation project, Indian Cuisine @ The Deck would be able to embark on its expansion campaign.
4
Innova Consulting Pte Ltd Creating a better world.
5
Innova Consulting Pte Ltd Creating a better world.
3. Plan of Action
Phase 1
Phase 2
Primary and Secondary Market Research
Marketing Strategy Development
Phase 3
Analysis and Development of Proposed Ideas
Phase 4
Final Report and Presentation
Phase 1: Primary and Secondary Market Research
6
Innova Consulting Pte Ltd Creating a better world. Market Survey
Provides accurate information on the requirements of target group
Allow the creation of a well thought out marketing mix
Achieves maximum satisfaction for customers Phase 2: Marketing Strategy Development
Phase 3: Analysis and Development of Proposed Ideas
Strategic Planning Process
Budgeting Consolidation And approval
7
Innova Consulting Pte Ltd Creating a better world. Marketing Mix Model (4Ps)
Place
Product
Market Mix
Price
Promotion
Phase 4: Final Report and Presentation
8
Innova Consulting Pte Ltd Creating a better world.
4. Benefits At the end of the consultation project, Indian Cuisine @ The Deck could materialize the following benefits:
1. Ability to take full advantage of its current strength – This includes the building of strategy and operation mode around profitable products, i.e. prata and murtabak. The benefit is in 2-folds: first, the maximization of profit from profitable products; second, the minimization of cost from less gainful products. 2. Marked expansion of customer base – With the attraction of new customers and the more frequent spending from the existing customers, Indian Cuisine @ The Deck develops a larger market share in its current market environment. 3. Rationalized business system – Business processes would be streamlined and run in a systematic manner to optimize efficiency and cost-effectiveness. In this mode, Indian Cuisine @ The Deck could cultivate a unique competitive advantage in the current and future competing environment. 4. Clear outlook, position and strategy – Indian Cuisine @ The Deck could gain a comprehensible view of the environment, its own position and the business strategy it employs. 5. Platform for future expansion – Given the new abilities and a sound business system, further expansion strategy could be readily adopted in the near future.
9
Innova Consulting Pte Ltd Creating a better world.
5. Key Deliverables At the end of the consultation project, Indian Cuisine @ The Deck will receive the key deliverables as the following: 1. Final Report – This report consists of the following list of key components: a. Market Analysis Report – this report will illustrate the findings in the market research and analysis phase. b. Business Design Report – this report will summarize the objectives, the research findings of business model and the final design of the business system for India Cuisine @ The Deck. c. Product Design Report – this report will elaborate the final design of the new product based on the research and the focus of Indian Cuisine @ The Deck. 2. Formal Presentation – the final presentation will focus on the recommendation of Innova Consulting, the research outcome that leads to it and the evidence that s it.
10
Innova Consulting Pte Ltd Creating a better world.
6. Schedule The following Gantt Chart illustrate the proposed project schedule:
11
Innova Consulting Pte Ltd Creating a better world.
12
Innova Consulting Pte Ltd Creating a better world.
7. Budget Expenses General Expenses Mileage: (15 cents) per Kilometer
Unit(s)
Estimated Amount (SGD$)
7 trips, 13 km per direction, 6 persons
163.80
Reproduction: (5 cents) per page
100 pages
5.00
Computer CDs: (50 cents) per disk
10 disks
5.00
Contingency: 10% of total Survey Expenses Reproduction: (5 cents) per page
17.38 200 pages
10.00
Business Reply Envelopes: (10 cents) per envelope
50 Envelopes
5.00
Postage Business Reply: (30 cents) per return
50 return
15.00
No.9 or No. 10 Envelopes: (30 cents) per envelope
50 envelopes
15.00
Postage Metered or Stamped: (30 cents) per envelope
50 envelopes
15.00
Telephone: (20 cents) per call Final Report Expenses Linen quality paper: (10 cents) per page
50 calls
10.00
4 units * 60 pages
24.00
Report Covers: (40 cents) per report
4 units
1.60
Binding of Report: (5 dollars) per report
4 units
20.00
Reproduction: (5 cents) per page TOTAL ESTIMATED AMOUNT
4 units * 60 pages
12.00 318.78
13
Innova Consulting Pte Ltd Creating a better world.
8. Responsibilities 8.1 The Prospect’s Responsibilities 1. Information Provision and collaboration a. Prospect would be required to respond to requests for information, approval of decisions and authorization of actions required for the purpose of consulting services within 5 working days. b. The Prospect’s representative would have to be available to meet with the consultants at least once a week unless there are extraordinary circumstances. 2. Providing Expertise – It would be required for the prospect to aid in the preparation of food for the purpose of market testing and in the creation of new recipes as required. 3. Reimbursement of expenses – this refers to the prompt reimbursement of used by the consultants for expenses incurred in the course of performing consultation service.
8.2 The Consultants’ Responsibilities 1. Communication – Innova Consulting should communicate regularly the project progress to the Indian Cuisine @ The Deck through weekly status reports. 2. Objective obligation – Innova Consulting is to fully commit itself to fulfill all obligations described in this document within the stated deadlines. 3. Deliverables – All deliverables are to be sent to the Indian Cuisine @ The Deck for review at least 2 working days before each stated deadline.
14
Innova Consulting Pte Ltd Creating a better world.
9. Qualifications
15
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