Merry Ice cream: Business Plan

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Merry Ice cream: Business Plan

John Street Market

Bradford UK

Table of Contents

Introduction……………………………………………………………………………

Company vision……………………………………………………………….

Company mission……………………………………………………………..

Industry Analysis……………………………………………………………………...

Competitor Analysis…………………………………………………………..

Primary research………………………………………………………………

Description of Venture………………………………………………………………..

Products……………………………………………………………………….

Size of business……………………………………………………………….

Background……………….…………………………………………………..

Production Plan……………………………………………………………………….

Suppliers………………………………………………………………………

Raw Materials………………………………………………………………....

Future Equipment and machinery……………………………………………..

Product flow to the customer………………………………………………….

Cost of manufacturing the product…………………………………………….

Machinery and Equipment…………………………………………………….

Marketing Plan. ……………………………………………………………………….

Marketing Objectives and Strategies……………………………………….....

SWOT…………………………………………………………………………

Marketing Mix………………………………………………………………...

Marketing Budget……………………………………………………………..

Organizational Plan……………………………………………………………………

Form of Ownership……………………………………………………………

Employee Profile…………………………………………………………....…

Roles and Responsibilities…………………………………………………….

Assessment of Risk……………………………………………………………………

Evaluate weaknesses of Business……………………………………………..

Contingency Planning…………………………………………………………

Financial Plan………………………………………………………………………….

Pro Forma Income Statement………………………………………………….

Pro Forma Balance Sheet………………………………………………………

Break-even Analysis……………………………………………………………

Initial Investment……………………………………………………………….

Introduction

We are offering ten different kinds of fresh ice cream to our customers which are not currently available in Bradford market and that might even be the case in United Kingdom.

“Merry Ice cream” bring you a quality fresh ice cream that will explode a refreshing taste in your mouth. We will be opening our first shop in John Food Street, Bradford because we have found through research that it is unserved.

The fast life that has been observed in west is where people don’t have time in between work and their daily routines and they are in a rush, we have seek an opportunity to provide them with fresh fruit ice cream on the walk, in the busiest of markets in Bradford. The John Street Market is surrounded by corporate offices, shopping centers, malls and other markets.

Companys vision

To provide best quality fresh ice cream all over world Companys mission

To be the leading brand in fresh ice cream over United Kingdom in 5 years

Brand slogan

“Happiness in your Fist”

Industry Analysis

Bradford is a place where fast life is observed on the role and tourist are attracted from all over the world, because it is relatively cheaper to buy in rather than London. We want to build repute in such a city and make this ice cream a strong part of their culture that it offers to locals and both foreigners.

It is considered the best market according to the revenue and the profits. Famous food markets in Bradford are John street market, Oalster, Giant food store Bradford plaza, Oasis food market, Pearl Centre, Liberty market, Bradford Food street, commercial market etc. And the famous food brands in Bradford such as Emilly food chain.

For that we are deciding to launch Merry Ice cream in John Food street market Bradford, because according to our research there is no Ice cream producer in John food street market. And the daily visitors or potential customers are over 5000 per day. This outcome has encouraged our intent to a great deal. This market is famous for shopping as well for food. John street market is usually visited by every socio economic class living in the area. Our goal is to achieve profits by neutralizing happiness through fresh quality ice cream, which changes moods and makes people happy to savor it.

We ought to deliver a state of the art, fresh, quality and quick made ice cream amidst the busy John Street Market. The idea is to focus on delivering love and happiness and taking people out of tough, miserable and hectic routines in work life. They get a chance to get their taste buds a refreshing flavor, which is at the same time natural as the essence is taken directly from fresh fruits. We are not only conducting business to make profitable earnings but ensuring that we contribute to society in terms of quality eatable ice cream and the emotions attached to it. Long ago people used to create unique selling proposition for their brands, while we work on the latest version of it, we sell it through emotional selling. Making colorful packaging to attract kids and younger people as well as facilitating the oldies to travel back into youth and rejoice their memories.

There is high barrier to entry in such market where it is hard to get noticed for a new product line in market which is not frozen ice cream that is available on any retail outlet on the go. But we are making our point with strong emotional branding to turn potential customers into loyal attachment that are long lasting and in turn fruitful for the business itself. Positive response is bound to good communication, getting right messages together and exposing them on the crucial times. We can compete with other brands by staying pure and caring by our product line and gain a feeling of trust within customers. We cannot offer an ice cream parlor due to lack of resources in start but we look forward in generating revenues to achieve such endeavors in near future. We have clinically worked on the hygiene of workplace and keeping the environment friendly for workers and the customers to avoid any unforeseeable complaints. We use pamphlets for promoting in vicinity and letting people know we have a treat waiting for them. On different occasions we have planned to offer variable discounts in packages bought form us. We further work to develop family size packages too.

Competitors Analysis

We have no direct competitors in Ice creams in that particular area which we are targeting, some of the indirect competitors are given below:

ï‚·Gelato

ï‚·Kerley makers

ï‚·Walls

ï‚·Royal Ice creams

ï‚·Mini melts

ï‚·Qumore Ice cream

Primary research

We collected research data by filling online questionnaires and settling Focused Group Discussions to buy in random people’s opinion about our products on their, quality, taste, aroma, packaging, pricing and etc. These are potential and actual customers or visitors in John Street. After that effort we are decided to launch brand in this un-served market. And we found that the people who visit John food street market are not price conscious but rather they are quality and taste conscious.

Description of venture

Products

1. Strawberry

3. Black berry

4. Mango

5. Berry Blast

6. Orange

7. Apricot

8. Peach

9. Vanilla

11. Almond

Size of business

ï‚·Small business

Sources of Finance

As we are not having funds at the time so we divide our financing into two major sections

  • Equity 20 %
  • Debt 80%

We cover up the initial investment by equity and use debt financing in order to expand our operations forecasting healthy revenues in near future. The property used for outlet will be leased for 5 years as a start.

Production plan

Suppliers

ï‚· Fruit market

We need fresh fruits in abundance to meet the quality we expect in our products.

Raw material

Fruits

ï‚·Mango

ï‚·Banana

ï‚·Orange

ï‚·Apple

ï‚·Strawberry

ï‚·Blackberry

ï‚·Raspberry

ï‚·Pineapple

ï‚·Peach

ï‚·Apricot

ï‚·Almond

ï‚·Dates

ï‚·Grape fruits

Others:

ï‚·Ice

ï‚·Printed Tissue papers

ï‚·Spoons

ï‚·Disposable cups

ï‚·Sugar

ï‚·Vanilla powder

Cost of manufacturing the product

1st year:

Small cup large cup

6$8$

2nd year:

Smalllarge cup

6$9$

3rd year:

Smalllarge

7$10$

Machinery and equipment

ï‚·Ice cream maker

O Ice cream maker M550S the Big Apple 4-Inch Wide-Mouth Automatic Extractor

(2) 225 $ each

O Bernville 800JEXL Ice cream Fountain Elite 1000-Watt Ice cream Extractor (2) 315 $ each

O Omega J8006 Nutrition Center Commercial Masticating Ice cream maker, Black and Chrome (2) 31,500 $each

ï‚·Refrigerator HRF-663D (2) 105 $ each

ï‚·Tables (4) – 500 $ï‚·Generator 6.5KV – 700

ï‚·Fans (3) – 600

ï‚·Water filter – 300

ï‚·Dawlance Vertical Freezer 345

ï‚·A/C – 560

ï‚·Bug killer (1) – 250

ï‚·Knives

ï‚·Cutting board

Marketing Plan

Marketing objectives and strategies

Marketing Objectives:

ï‚·To increase market share

ï‚·To increase the profit

ï‚·To satisfied customers and make them loyal

ï‚·To face indirect competitors in John street market such as royal makers, walls, gelato, qumore, mini melts etc.

Marketing Strategies:

ï‚·Provide high quality ice cream to the customers

ï‚·Attractive packaging

ï‚·Unique and fresh juices

ï‚·Good pricing with high quality

1. Positioning strategy:

We are positioning our products on the bases of product differentiation and the quality. Because we are the first mover of fresh and unique ice creams in John Food Street market Bradford.

2. Segmentation:

We made market segmentation on the bases of:

ï‚·Social Class

ï‚·Education

ï‚·Income level (middle, upper middle, and upper class)

ï‚·Gender (All)

3. Targeting:

We are targeting all age level customers.

ï‚·Kids

ï‚·Teen agers

ï‚·Old age persons

SWOT Analysis Strengths:

ï‚·Unique and specialized ice creams

ï‚·Quality fruits (raw material)

ï‚·Targeted unserved market

ï‚·Imported juice machines

ï‚·Skilled workforce

ï‚·Hygienic workplace

Weaknesses:

ï‚·Brand awareness

ï‚·Inexperience

Opportunities:

ï‚·Unserved market

ï‚·Target the maximum areas of Bradford

ï‚·Chance to create brand image

Threats:

ï‚·High competition

ï‚·Shortage of electricity and gas

ï‚·High Inflation rate

ï‚·Government and political interruption

Marketing MIX

Product

  1. Strawberry
  2. Black berry
  3. Mango
  4. Berry Blast
  5. Orange Mango
  6. Apricot
  7. Peach
  8. Vanilla Almond
  9. Almond

Price

1st year:

Small cuplarge cupRoyal Ice cream (large cup)

9$.14$.16$.

2nd year:

16oz (small)large cupRoyal Ice cream (large cup)

95Rs145Rs.165Rs.

3rd year:

16oz (small)20oz (large cup)Royal Ice cream (large cup)

10$15$17$.

Place

We are targeting Bradford, in specific the John food street market which is located inBradford. This market is un-served in this area of business.

Promotion

Our brand promotion will take place through different mediums like electronic and paper medium.

  • Banners
  • SMM (social media marketing)
  • Opening Day Sale
  • Pamphlets
  • Promotional Days weekly.

Marketing budget

1st month:

Banners---------------------------------------------------------------350

SMM-------------------------------------------------------------------0

SMS Marketing------------------------------------------------------150

Opening ceremony--------------------------------------------------2500

Total-------------------------------------------------------------------------------------------3000

1st year:

1st month--------------------------------------------------------------3000

Rest of 11 months--------------------------------------------------2500

Total----------------------------------------------------------------------------------------------5500

2nd year-------------------------------------------------------------------------------------------1300

3rd year-------------------------------------------------------------------------------------------1300

Organizational plan

Form of ownership

Our business form is Sole proprietorship.

Employee profile

Cashier

Basic knowledge of Accounts

Minimum 1 year experience on point of sale.

Worker 1:

High School/Full timer

2 year experience in handling ice cream making

Worker 2:

High School/Full timer

2 year experience in handling ice cream making

Worker 3:

High School

3+ year experience in handling ice cream making

Supervisor

Roles and Responsibilities

Cashier:

Handle daily transactions. Report daily sales to manager.

Workers:

  • Keep the environment of shop hygienic
  • Communicate well with customers and provide ice cream quickly to customers
  • Make quality ice cream with the right amount of fruits
  • Clean shop at the end of working day

Assessment of risk

Evaluate weaknesses of business

ï‚·Brand awareness

ï‚·Inexperience

Here are the weaknesses of our business and we will eliminate brand awareness by more advertisement and promotion of our brand. And inexperience will eliminate with the passage of time.

Contingency planning

  • The ice creams that will face bad experience with the passage of time then we will remove them from product line and come up with new flavor ice cream.
  • Will converge in milkshake ice cream products with different flavors.
  • Revisit the business and open a relative business dealing in plain ice cream to used as deserts in other foods, restaurants and create new product line.
  • Selling out running business to let another business take it over and run with on a better scale investing more money,

Financial Plan

Pro Forma Income Statement

Merry Ice cream

Pro forma Income Statement

<1st year><2nd year><3rd year>

Revenue

Sales

Net Sales

Cost of Goods Sold

Gross Profit

69390.008,0589.0010,5963.00

69390.008,0589.0010,5963.00

5,176,2.006,1292.007,7457.00

1,762,7.001,9297.002,8506.00

Operating Expenses

Salaries & Wages Depreciation Expense Electricity Expense Gas Expense

Transportation Expenses Maintenance Expenses Advertising Expenses Registration Expense Employee Food Expense Other Expense

Total Operating Expenses Income From Operations Interest Income (Expense)

Income Before Income

Taxes

Income Tax Expense

Net Income

480,0.005580.006360.00

98,4.00984.00984.00

2400.002520.002640.00

600.00660.00720.00

7200.008000.00880.00

120.00160.00250.00

3150.001200.001200.00

210.000.000.00

1440.001440.001800.00

396.00430.00480.00

1,4820.001,3774.001,5314.00

2806.005522.001,3194.00

0.000.000.00

2806.00552,2.001,3193.00

210.0024,8.00145.00

259,6.005274.0011738.00

Notes

Taxes

1st year – 0.75%

2ND year – 4.50%

3rd year – 11.00%

Sales

2nd year – 12% Increase

3rd year – 20% Increase

Salaries

2nd year – 15% Increase

3rd year – 15% Increase

We have increased expenses according to the inflation rate of UK which is around 14%.

Pro Forma Balance Sheet

Merry Ice cream

Pro forma Balance Sheet

1st Year

Assets

Current assets

Cash

Inventory

Total current assets

Fixed assets

Equipment657,500

Less depreciation89,066

Building450,000

Less depreciation9,400

Land

Total fixed assets

Total assets

Liabilities and Owne' Equity

Total liabilities

Owne' equity S. Khan, capital Retained earnings

Total owne' equity

20,000

2,000

22,000

568,434

440,600

500,000

1,509,034

1,531,034

00

1,518,052

12,982

1,531,034

Total liabilities and owne'

equity1,531,034

Merry Ice cream

Pro forma Balance Sheet

2nd Year

Assets

Current assets

Cash

Inventory

Total current assets

Fixed assets

Equipment6575

Less depreciation1780

Building4500

Less depreciation188

Land

Total fixed assets

Total assets

Liabilities and Owne' Equity

Total liabilities

Owne' equity S. Khan, capital Retained earnings

Total owne' equity

333

330

663

4790

4312

5000

14105

14472

00

14195

276

$14472

Total liabilities and owne'

equity$14472

Merry Ice cream

Pro forma Balance Sheet

3rd Year

Assets

Current assets

Cash

Inventory

Total current assets

Fixed assets

Equipment6575

Less depreciation2670

Building4500

Less depreciation282

Land

Total fixed assets

Total assets

Liabilities and Owne' Equity

Total liabilities

Owne' equity S. Khan, capital Retained earnings

Total owne' equity

6360

400

6760

3900

4218

5000

13120

13797

00

13210

586

$ 13797

Total liabilities and owne'

equity$13797

Break-Even Analysis

Q = Fixed Cost/ (Price - Variable Cost) Q = 26501/ (1.31 – 1.05)

Q = 26501/ 0.25

Q = 105,603 cups

We will achieve break-even in the 10th month of our 2nd year in business.

Initial Investment

Sign Pole1000

Vertical freezer345

Refrigerator2100

Generator700

Fans60

A/C560

Machines1710

Tables500

CCTV system235

Bug Killer25

Water Filter30

Fire extinguisher60

PC with MIS250

Uniforms80

Other expense316

Registration fees210

Gloves210

Cups, spoons, napkins4200

Advertising expense3150

Fruits for 1st month3065

Sugar for 1st month67

Ice for 1st month60

Transportation 1st month60

$ 18990

The initial investment for the business is $18990 which will be invested by owner itself as a startup capital and rest will be gained on long term debt financing. If the current business plan fails to meet the expected performance then we look to revisit the brand and come up with different communicational plan for rendering product to mass distribution. We do not preserve ice cream as it is a fresh ice cream, but if the demand is high then we will move to sell frozen ice cream also.

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