Business plan on cigars

Abstract

Small things can bring about huge changes in this world. This is very true and is our inspiration behind this venture. We believe that a small product such as a cigar can bring about a world of differences not only in the lives of our stakeholders but also in the lives of each and every one of our consumers! Company Our company will be founded in the year 2008 with the purpose of importing, marketing and selling authentic hand-rolled Cuban cigars. It will be a partnership firm under the name [El Casa de Cigar] and our principal office will be located at Bangalore, India. Business Our business is of selling Cuban cigars and these are synonymous with high quality hand-rolled cigars. We will be importing cigars from Habanos S.A., the only company certified by the Cuban Government to manufacture and sell cigars to the rest of the world. This company is located in Cuba. We also intend to develop strategic alliances with star hotel chains such as The Park, Le Meridien, ITC Sheraton Group, Grand Hyatt, The Oberoi, The Taj Group, etc. which will enable us to supply our products to their entire chain of hotels through central purchasing as this would ensure continuous and regular purchase order of Cuban cigars from us. Product Our product, Cigars, can be called as the king of all tobacco products due to the premium-ness attached with the product, the price and also due to the very size of the product! Cuban cigars are organic products in the sense that these are breathing products and storage of such cigars in the optimum climatic conditions is very important. A cigar is a world unto itself and a Cuban cigar is considered the best because of the unique blend of sun and soil in the region, as well as the skill of the people rolling a cigar. Cigars from Cuba good taste and fine living, a cigar demands great attention to be fully appreciated. The Market & Our Competition The market for our product is presently approximated at Rs. 60 Crores with a huge untapped potential. This market is very profitable due to high margins which the product provides and also due to relatively low amount of capital expenditure it demands. Our target consumer group falls into the age bracket of 20 to 40 years as these are the trendsetters of the generation and also due to the higher amount of disposable income in the hands of these consumers because of which they can afford our premium product. Our only competitor is Raas Intratech Pvt. Ltd. (RIPL) who is based out of Delhi and their main market to which they devote almost all their attention is Delhi and Mumbai and they do not have any representative in Bangalore. The very absence of any competitor’s presence in our primary target market of Bangalore makes it easy for us to penetrate the market through extensive promotions. Through this we educate our consumers about our product and thereby motivate them to purchase our product. Although individuals will be the end consumers of our product, our main source of revenue will be from the HoReCa (which is a business term which stands for Hotels, Restaurants and Cafes) outlets with whom we would have already developed strategic alliances.