Hookah Bar Competitive Environment - Term Paper Example

 Topic: Business Plan For Hookah Bar PHASE 1: DEVELOPMENT OF BUSINESS PROPOSAL: The business proposal for Hookah bar we are presenting will be unique in its own way. The proposal focuses on all the features which are necessary to start up a new & unique Hookah Bar. My Business proposal consists of the décor and environment of Hookah bar, the ambience, the marketing strategies, its financial projections and its requirements. My business proposal has covered everything like POS to competitive environment. BRIEF MARKETING PLAN: The marketing plan of my business proposal contains all the strategies which are necessary for success of the Hookah Bar. The Hookah bar has a huge markets and it can target younger customers. Our marketing plan and strategies mainly focus on providing hookah and other products and services in our unique and different ways. Further more it focus on providing extra products and services to the customers which are not available to them in any other Hookah Bar. COMPETITIVE ANAYLSIS: The Hookah bar which the company goanna start has to face a competition. But it can be highly successful by offering different services and products which will not be available anywhere else. There are many top Hookah bars like twilight, Sahara East, Mamlouk, Kapadokya, Kush & Egyptian Coffee Shop. But the Hookah bar which the company will goanna start will be on edge because of its distinctive features. PHASE 2. EXECUTIVE SUMMARY: The detailed business plan will inform you how to start up a new Hookah bar successfully. Hookah bar which we goanna start up will be different in its unique way. Younger generations are very much attracted to Hookah Bars as it is a source of complete relaxation for them. The increasing number of Hookah Bars shows that there is high demand of Hookah bars in the country. Our business plan covers all its aspects to have a wonderful and enchanting Hookah Bar. In this business plan we cover all the features which are necessary to analyze before starting up a Hookah Bar. BUSINESS DESCRIPTION: First of all we need to focus how our hookah bar is different. The name I suggest for the Hookah Bar is “PLEASANT ADDICITION”. More over we focus on the following points: IDEA OF HOOKAH BAR: The Hookah Bar is a different concept with lots of business potentials. But having only a Hookah bar is not a good idea. Our hookah bar is not only serves hookah but its will be a Café too. The Hookah lounge should offers variety of hookah flavors, drinks and desserts to appeal the younger generation. Another thrilling thing that can be introduced at a Hookah Bars is high varieties of cakes and desserts. The cheesecakes, tiramisu and baklava can be served in the Hookah lounge with a hot coffee. DÉCOR & AMBIENCE OF HOOKAH BAR: The Café & Hookah lounge should smoothing ambience, a relaxing music and Seesha seems to be a perfect place to relax the nerves. The color of the whole ambience should be something which is deep red, ivory and gold. It gives a romantic and soothing touch to whole environment. The lounge should contain the capacity of more than 100 people. The basic theme should be Lebanese with floor arrangements with loads of cushions and pillows. However some comfortable sofas should be there as some customers are not comfortable sitting on floor. The Ambience of the Lounge should be very attractive in order to attract more and more customers. The Hookah lounge must give a traditional Turkish looks which attract the customers because of its unique décor. Old type of Hookahs and Seesha can be used for the decoration. The whole environment gives the warm and cozy feelings to the customers. This can make the clientele a refreshing mood. And it can be different in its own style. The music should be soft and romantic. Mainly the CDS of music only adds good impression on the clients instead of loud music. The staff should preferable females. The uniform of the staff should be traditionally Lebanese its gives a unique touch to the whole environment. Another interesting idea is to have a local band concert in the lounge on week ends. It appeals more and more customers. PRODUCTS & SERVICES AT HOOKAH LOUNGE: The hookah lounge not only offer Seesha and hookah with different flavors. But it also offers a huge variety of drinks according to season. And it offers a huge variety of desserts, appetizers including, Indian, and Lebanese’s cuisine. Moreover it should provide internet services and basic services which are usually required for the café lounge. 1. INDUSTRY AND MARKET ANALYSIS: As we mentioned earlier the industry of the Hookah is growing rapidly. The Hookah shops and Hookah bars are increasing day by day. The distributors and manufacturers of the Hookah are established their bases in last five years. As the Arabs Populations grows tremendously in United States, therefore Hookah is commonly used in many areas. Hookah Bars are developed in many large cities, small towns and near large colleges and schools. Smoking of Hookah is commonly viewed as a social activity. Hookah smoking is cheap activity to be gathered at one place and have fun. The Hookah bars and Cafes are growing tremendously in the inner cities and in colleges. The major customers of Hookah café are younger generation. This is a status symbol and in fashion as per younger generation thoughts. Presently the availability of tobacco and Hookah flavors are limited to the online stores and specialized shops. But still the consumer of Hookah is increasing day by day. For the new entrepreneurs there is a huge potential to have a successful business in the form of Hookah bars. As the Hookah bars and cafes takes the shape of Industry and sky is the limit. COMPETITIVE ANALYSIS: As far as the competition is concerned, the Hookah industry is not well established and it’s in the stage of growth so there are few competitors in the industry. Most of the competitors are basically, Arabs and specially Lebanese’s. But still there is huge potential to grow the Hookah Bar as it could be highly successful in the form of Café and Hookah Bar. The good environment, competitive rates and a quality of services and products can give edge to the company. Further more The Hookah are becoming more popular in European and American lifestyle. The cigar bars are considered old fashion and out dated for younger generation. A unique and different Hookah bar can bring up millions for the consumers which actually the consumer paid for being different in any sense. Hookah gives the chances for the consumers for social gatherings with friends and families which is growing to be a popular trend in Europe. MARKETING STRATEGY: The marketing strategy to make our Hookah Bar highly successful is as follows. The management should keep the following points are kept in mind: The Ambience and the environment of the café and hookah bar should be different in its own way. The relaxing music with good sitting arrangement can boost up its sales. As the clients are very much attracted to the places which are soothing rather than noisy bars. Secondly the quality of services and products should be maintained a good standards. The sheesha or Hookah given for smoking should have all the varieties of flavors available as the possible. Other things which includes the coffee and the desserts and cakes should be fresh and good taste. Thirdly the management has to focus on the rates they offer to their clientele. It is true that good quality of things is always expensive but in order to compete successfully the rates should not be more than market. Once the firm run its business successfully and maintain a good repute then it can enjoy the benefits of high rates as well. The prices offer to the Hookah would be initially $9.50 which lasts for four and half hours. Usually one Hookah is shared by 4 persons. So the average costs of Hookah would be $2.50. Same as the cup of coffee should be of $ 1.50 dollars and cakes and desserts starting from $30 to $60. Further more the quality of services should be improved and the staff should be dressed in traditionally Lebanese and should be vigilant and efficient in order to give their service at its best. Last not the least the timings of the Hookah bars and cafes should be flexible and should remain open for late nights so that more and more customers can get in and enjoy the services. OPERATIONAL ISSUES: Initially we have to fact the operational issues for starting up the new Hookah bar. Our operations can be planned well before the launch. It includes: the availability of staff on time, Running of café with good standard. Availability of products at appropriate time. Maintaining the standards of goods and services etc. Issuance of license and legal proceedings to start up the café and Hookah bars. These are the operational issues that we have to look initially and after the launch. In order to launch up the Hookah bar we have to get license from the local government. The local government further more varies the business plan the rates the firm will going to offer. And the sales tax rate must be considered in order to give the final prices to the consumers. HUMAN RESOURCE REQUIREMENTS: Basically Human resource is the main factor to run the business operations. The human resources we need for Hookah bar are: 1. Manager of the Hookah Bar. 2. Waiters or Waitress. 3. Bar Man. 4. Cooks. 5. Accountant. 6. Middle man Service providers. The number of personnel requirement highly depends upon the size of our hookah Bar. The larger the bar is it needs more waiter or waitress, cooks and middle man service providers who work in shifts. FINANCIAL PROJECTION: The financial projection for the Hookah bar can be as follows: The over all cost would be $150,000 The major costs are: Cash reserve and operating capital $40,000 Exterior and interior design $4,000 Bar equipments $12,000 Kitchen upgrade $1500 Fees $20,000 Legal Fees $2,500 Initial marketing 10,000 Other costs are: Most amazingly the initial investment needed to open up a Hookah bar is very low. The location needed to open up a Hookah bar can be as little as 1000 square feet. The rent of such a place can be estimated in accordance with the area they choose. The purchase price of the Hookah can be $20 to $80 dollars. This can be low if the bar or hookah café agrees to purchase tobacco from them as well. The rental fees the hookah should be $15 for Hookah. Other costs the company have to bear is the redesigning the rental place. Its ambience, furniture, accessories, cutlery and decorative items. The additional cost the company has to bear is its cost to hiring the employees. APPENDICES: http://articles.latimes.com/keyword/hookah-bars http://findarticles.com/p/articles/mi_hb5037/is_200509/ai_n18255057/ http://www.tobacco.org/articles/category/shisha/ http://hookahbarandlounge.com/ PHASE 3: ORAL PRESENTATION: Following are the points which kept in mind for oral presentation. These are: The benefits of starting up a new hookah bar. Different features of new Hookah bar. Market analysis of hookah bars Competitive advantage a firm can gain from hookah bar Market strategy for newly established hookah bar. Finances needs for the hookah bar. Operational issues needs to be followed Human resources requirements etc Feasibility of the Hookah bar plan. Read More