Imaginery Product: Submitted By

Imaginery Product
Submitted by:-
Ankit N Savla
Executive Summary
 With the advent of multiplexes, fine dining is fast becoming a part of movie theatre.
 “Mumbai Masala” is a movie theatre with restaurant business that believes there is
a significant number of theater-goers that are craving a more satisfying and

enjoyable way to catch a movie and a bit to eat.
 This concept is a first of its kind in India.
 Lifestyle and time constraints faced by moviegoers has influenced the concept of a
movie theatre with restaurant by “Mumbai Masala”.

 “Mumbai Masala” will offer a totally unique dining and movie experience at an
affordable price that will fill the theater space with repeat customers.
Keys to success
 To provide exceptional service that leaves an impression.
 Consistent entertainment atmosphere and product quality.
 Managing our internal finances and cash flow to enable upward capital
growth.
 Strict control of all costs, at all times, without exception.
Tell me more…..
 Existence
 Mumb@i Masala will be a single-unit, magnanimous-sized restaurant.
 Location
 Prime Focus – Movies & Menu

Sales Strategy
 Our initial sales strategy is to flood our target consumers with free movie coupons for the
first three months of operation. The Rs.300 charge for the film will be waived with the
coupon. These coupons will be in the city's daily paper.
 The film charge is really incidental. Mumb@i masala’s profits will come from food
sales. Menu pricing will reflect this focus. Our prices will be higher than a traditional
restaurant’s but we believe the unique dining environment will justify those prices with
our customers.
 On the traditional slow days (Monday and Tuesday) we will offer cheaper fare (spaghetti)
and market these days to college students as spaghetti movie night. In addition, we will
have two for one date nights, where couples will only be charged for one admission.
 Tie Ups –
a) Radio
b) Film Production House
c) Television Channels – Youth & Corporate
d) Social Networking Sites
• Newspaper Inserts
• Canter Promotion
• Web sites.
• Sales projections for this plan are presented in the following topics.
Sales Projection
 Food
 Movies
 In shop Branding
 Web site advertising
 Interval Ads
 Movie Promotion / Releases / Premiere
 Corporate Movies
Competitive Edge
 Our competitive edge is

• The agreement with Premiere Film Distributors which have agreed to supply
Mumb@i Masala with second run movies.
 We have negotiated an agreement with Premiere Film Distributors that will assure that
Mumb@i Masala will have best available second run films. Premiere Film Distributors
will provide the films and will receive 75% of the admission revenue. This is a better
return for the distributor who normally receive only 50% of admission revenue for
second run films.
 In exchange, Second Run will get the films most popular with their target customers.
Financial Plan
 We will invest Rs 3crores of our own capital. This will provide the start-up financing required.
 Break-even Analysis
Our break-even analysis is based on the average of the first-year numbers for total sales by
meal served, total cost of sales, and all operating expenses. These are presented as per-
unit revenue, per-unit cost, and fixed costs. We realize that this is not the same as fixed
cost, but these conservative assumptions make for a better estimate of real risk.
Break-even Analysis
Monthly Units Break-even 10,000

Monthly Revenue Break-even Rs 16,00,000
Assumptions:
Average Per-Unit Revenue Rs 160
Average Per-Unit Variable Cost Rs 12
Estimated Monthly Fixed Cost Rs 4,00,000
Pro Forma Profit and Loss
Year 1 Year 2 Year 3
Sales Rs 692,100 Rs 860,000 Rs 1,150,000
Direct Cost of Sales Rs 177,255 Rs 213,500 Rs 287,000
Movie Screening Expenses Rs 77,861 Rs 96,750 Rs 129,375
Total Cost of Sales Rs 255,116 Rs 310,250 Rs 416,375
Gross Margin Rs 436,984 Rs 549,750 Rs 733,625

Gross Margin % 63.14% 64.92% 65.79%
Expenses
Payroll Rs 288,000 Rs 307,000 Rs 326,000
Sales and Marketing and Other Expenses Rs 22,600 Rs 8,000 Rs 8,000
Depreciation Rs 0 Rs 0 Rs 0
Leased Equipment Rs 0 Rs 0 Rs 0
Utilities Rs 14,400 Rs 14,400 Rs 14,400
Insurance Rs 21,600 Rs 21,600 Rs 21,600
Rent Rs 24,000 Rs 24,000 Rs 24,000
Payroll Taxes Rs 43,200 Rs 46,050 Rs 48,900
Other Rs 0 Rs 0 Rs 0
Total Operating Expenses Rs 413,800 Rs 421,050 Rs 442,900
Profit Before Interest and Taxes Rs 23,184 Rs 128,700 Rs 290,725

EBITDA Rs 23,184 Rs 128,700 Rs 290,725
Interest Expense Rs 0 Rs 0 Rs 0
Taxes Incurred Rs 6,955 Rs 38,610 Rs 87,218
Net Profit Rs 16,229 Rs 90,090 Rs 203,508

Net Profit/Sales 2.34% 10.48% 17.70%
THANK YOU

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Imaginery Product

a significant number of theater-goers that are craving a more satisfying and

movie theatre with restaurant by “Mumbai Masala”.

 To provide exceptional service that leaves an impression.

 Consistent entertainment atmosphere and product quality.

 Mumb@i Masala will be a single-unit, magnanimous-sized restaurant.

 Prime Focus – Movies & Menu

 Web site advertising

 Movie Promotion / Releases / Premiere

 Our competitive edge is

Monthly Units Break-even 10,000

Gross Margin Rs 436,984 Rs 549,750 Rs 733,625

Total Operating Expenses Rs 413,800 Rs 421,050 Rs 442,900

Profit Before Interest and Taxes Rs 23,184 Rs 128,700 Rs 290,725

Net Profit Rs 16,229 Rs 90,090 Rs 203,508

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