Sombrero Proposed Fruit Juice Outlet Case Study - Marketing Assignment Help

Assignment Task -

SOMBRERO: PROPOSED FRUIT JUICE OUTLET

Moawia had five days to decide. Should he open a fruit juice business in the Al Ain Mall or continue as the operating manager at the Al Qatara bowling alley in the Al Ain Club? He had been very successful running big bowling tournaments attended by people from all over the Gulf region and had saved enough money to start his own business. Was this the right one?

PROPOSED BUSINESS PLAN  

Moawia had first presented to mall management his plan to open a food service business. The mall  management would only consider plans for food services from people or organizations that had restaurant  experience. Moawia had none. He thought of opening a fresh fruit juice operation because he had enjoyed  making a variety of fruit drinks at home for both family and friends and he felt that perhaps mall management would not require the owner to have restaurant experience for a juice stand. He proposed to  offer customers freshly squeezed fruit juices mixed with homemade soft ice cream. The mall management  accepted his business proposal. Moawai gathered the financial data required to open the store and now had  five days to accept the mall’s offer to lease the space. 

LEASE AGREEMENT  

The Al Ain Mall, like all retail malls, charged rent to businesses depending on the number of square meters  the business occupied. Mall tenants paid anywhere from DH2,000 to DH4,000 per square meter per year.  The rate depended upon how well-known and how big the company was. Megamart and the Home Center  paid at the lower end of the scale, 2,000, whereas small independent stores paid closer to 4,000. Sombrero  would have to pay DH60,000 per year to lease the space (3 dirham=Cdn$1 and 100 fils=1 dirham

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