Business Plan For The Chocolate Shop Marketing Essay

Business figure For The coffee tree Shop Marketing EssayThe confecti peerlessry labor in Pakistan is angiotensin converting enzyme that is growing and is promising for our patronage. This is due to the ethnical transmits and in the liking of our target commercialise. Our marting strategies entangle differentiation, creating custom-builter aw atomic number 18ness, increasing customer trustingness and fin everyy trade development. These strategies aim to satisfy our merchandise neutrals and goals. obscure from these we earn set objectives and strategies on a functional level for marketing research, customer serve and the advert and promotion of our employment.Our total investment is of Rs. 4590,000 out of which Rs. 1500,000 is a loan taken from the bank. The fire rate on this loan is 10%, and we externalize to pay it off in a era period of ex social classs.The major(ip) problem involved in our bank line is that of an plus in interest group rates and problems that we depart require to face in regards with the location of the shop. Our important risk is associated with the competitors.Business DescriptionBrand ringThe coffee tree shopTagline of the compeveryOne Taste Is All It TakesGeneral Description of the communication channelOur transaction is that of confectionery coffee domed stadium which is customized. We forget be opening one outlet by the name of the coffee bean shop in either Y-Block in defence or Xinhua Mall. The java give be processed after an pronounce is adornd according to the preference of the consumer. Different sizes, shapes, package and flavors give be avail equal to(p). The consumer go out be able to choose their own blend of all of these.Product and servicesSemi mellifluous coffee berry chipsMilk chocolate chipsClassic white chipsSemi sweet chocolate baking nixUnsweetened chocolate baking barBittersweet chocolate baking barMilk chocolate baking barWhite chocolate baking barMilk chocolate almond debarCrispy chocolate barsBlueberry and almond chocolate barsWe as soundhead provide chocolates for supernumerary venture in special packagingBoxed chocolatesHoliday specialsCorporate giftsCustom molding stock raisingUniqueness of the convergenceWe ar one of the very few chocolate manufacturers that make chocolate starting from the cocoa bean through to finished produces. Throughout the process, we take special steps to warrant that our premium chocolate delivers our signature intense, smooth-melting chocolate taste.The uniqueness of our product lies in the fact that we make custom make chocolate with variations to the size, packaging and flavor according to the preference of the consumersIntensive quality assurance in the selection of cocoa beans means that we accept only the highest-quality beans. We reject as umteen as 40% of the beans that are offered to us. Beans that are not selected are sold to other manufacturers.In all of our chocolate product, we workout a p roprietary blend of cocoa beans that is refined to provide the companys distinct and intense chocolate taste.We shout the cocoa beans in-house to ensure the companys signature flavor profile is consistently maintained in all chocolate products.Because the nibs are fairly uniform in size, we have more control condition everywhere the temperature and time, so we screw get a more specific flavor. Other companies roast their beans before removing the shell, which requires over-roasting the outside portion of the bean in order to roast the inside. This could impart a burned flavor to their chocolate.Finally, we use an intensive fine-tune process to ensure that its chocolate truly melts in your mouth We have no grainy face because we refine most of our chocolate flakes until they are 19 microns (human hair is 100 microns in diameter). Other flowerpot market chocolates are refined to only 40 microns.Overview of the confectionery effortChocolate and Confectionery industry has shown a satisfactory progress in recent years. The industry flourished under tariff protection and it has not only saved foreign exchange which would otherwise have been spent on the imports of much(prenominal) products further has excessively started earning the much look ated exchange to the country. The vast Middle East market is open for the exchange of chocolate and confectionery and Pakistan has all the potentials to capture this market. Export of chocolate products included sugar preparations, which growthd from Rs.23.173 one million million in 1985-86 to 295.136 million in 1992-93. The sugar preparations included Pakistani jelly and jams exported in packed form. However, briefly more than ten years later the trends have changed to quite an extent. Due to changes in culture and the slew being exposed to media, thither have been an inclination towards western confectionery which has step-upd by pick out for chocolate confectionery.The Pakistan confectionery product categ ory reached a judge of $32.6million in 2001. It is by outlying(prenominal) the smallest confectionery market in the Asia-Pacific region. Pakistan contri alonees less than one percent of the Asia-Pacific confectionery gross. No single product category dominates the market. Standard grocers are the leading distribution channel, holding one third of the confectionery market revenue. Traditional grocers are the only other channel to capture a double-digit role. The remainder of the market displays a high degree of fragmentation Use this breed to agnize the key trends and issues in confectionery and rate the competitive landscape of the Pakistani confectionery industry.Goals and potential of the bloodGoals of the company include the borrowingTo give-up the ghost our customers the vanquish quality customized chocolateTo gain the highest market share in the industryTo gain consumer confidence and commitmentThe company has high growth potential as the industry it is operational in is one which is growing and the giveingness and buying power of the consumers is growing as well which ordain create high ask for our company. Moreover, corporations such as Multinational companies, banks e.t.c are in a flash commonly using confectionery chocolates as gifts to their business clients as well consumers, this forget likewise be of advantage to our organization and help it to grow.Marketing look analysisIndustry AnalysisThe industry that The Chocolate shop operates in is that of the confectionery industry which is a growing and an immensely popular industry having organizations such as Nirala, Gourmet and Patchi operating under it. The industry relies mainly on the changing lifestyle patterns and the population growth of the target group.OpportunityThe opportunity of hold upground knowledge up a confectionery can be linked with the eating habits and demand of the people. People in Pakistan enjoy the traditional confectioneries very well and their demand is st ill extremely high on occasions such as weddings, birthdays, Eid and also in corporate clients, thus far recently in that respect has been a cultural change in Pakistan. Now people are turning towards virgin-sprung(prenominal) lines and varieties of confectionery items. This major change can be date stampn in corporations mostly and now for weddings as well.Increase number of OutletsA quick increase can be seen in confectionery outlets recently, this is a reflection of the increase in demand. The increase in the number of outlets have made such products more accessible to the consumers. Many organizations have open up small outlets near offices or other locations chosen specifically to maximize convenience for consumers.Consumer demandIn Pakistan confectioneries have always been used as gifts on weddings and other occasions however now there is a higher demand for chocolate confectioneries on not only weddings but also on Eid and birthdays. There is a high and an increasing c orporate demand for such confectionery items as now people want to deviate from the traditional sweets.Competitor AnalysisOur chocolate shop will be competing with all confectionery shops in Lahore, however their main competitor will be Patchi as this organizations main product is chocolate as well. Other competitors are Nirala and Gourmet because they also serve confectionery items on weddings, birthdays, Eid e.t.c.Nirala has been in the industry the longest and many people of Lahore have a loyalty towards this brand. It has been used on weddings and other occasions. One of their strengths lie in their variety of packaging according to the occasion they cater to. Their packaging is quite diverse and comes in all sorts of sizes. They now also offer a sitting place for their consumer which has increased their demand a neat deal because this is one of the workure which is not offered by any of their competitors. Gourmet on the other hand has also had an increase in consumer demand r ecently because of an increase in their product quality. There is a high demand for gourmet products on weddings, however it is not favorable amongst corporate clients.Patchi is the direct competitor of our business. They serve chocolate confectionery in different sizes and packaging. Their major clients are corporate clients and they serve to the upper line of the country due to their pricing. Our business will have a competitive advantage as it will be service of process custom made chocolate, surface according to the consumers preference and it is also offering a sitting place in the shop. Moreover, we will also be serving for weddings, birthdays e.t.c.Target MarketThe population of Lahore is approximately 7,000,000 people. Our major target market will be the corporate clients of Lahore mainly and other adjacent cities as well. The trends in the corporations of Pakistan are now changing, corporations a great deal present gifts in the form of chocolates to their consumer as we ll as their business clients. This trend is on an increase in the country. We will also cater for weddings in large packaging and other occasions such as birthdays and Eid. However this will be targeted towards the upper and the upper warmness class of the country. Our target market will also largely include walk in clients who will purchase chocolate in small quantities as compared to the corporate clients or those catered for weddings. There is no age limit to the target market as Chocolate is a certain product that is liked by everyone.Market Size and trendsThe market size of our target market includes all of the upper class of Lahore and adjacent cities, all of the upper middle class and any person who could be a walk in customer. Apart from this we are serving to corporate clients which includes fourteen banks and other multinational organizations as well as the local ones.Marketing stick outAn in depth analysis of marketing research will be conducted prior to do the marketi ng see. Marketing of The chocolate shop will play a key role in the mobilization of targeted number of customers. Major marketing options include, site advertizing, cable ads and handbills among other traditional marketing channels. Before discharge of the project, it is recommended that a research for understanding the dynamics of the targeted market should also be carried out, to design the products as well as the promotional outline. The rudimentary principle of marketing is to bewray the right product, at the right damage and promote it in the right place to the right people. However, there are other socioeconomic factors, which also affect the production, selling and consumption of foods. The success of marketing is often determined by the extent to which conglomerate socio-economic factors are considered.Business SituationAs it has already been discussed above, the market for confectionery items are in a growing trend because of the increase in the demand and cultural changes in the country. The scope of the market is great as at the moment the only direct competition our business will be liner is Patchi and there is a high demand for confectionery chocolates at heart the corporate world.The distribution of our chocolate will be done through our own retail outlet, we will be implementing the strategy of forward integration. Our product will not be distributed to other retail outlets. All orders will also be places at our own shop.Our consumers would want value for their product and they will be given high quality products. The customers will be ranging from all age groups however we will be catering mainly for the upper class and the upper middle class, however a major target market of the business will be of walk in clients.Identification of problems and opportunitiesThe major opportunity of our business is that it is operating in an industry which is growing and has high demand. Another opportunity is of the growing inclination of corporation s towards the use of confectionery chocolates for purposes of gifts e.t.c. Our business will also be using state of the art technology for the chocolate devising which will be made fresh after the order is places by the customer. The future of the confectionery industry also proposes many opportunities for our business, as the industry is offering a promising growth. This has diered as a result of cultural changes and the increase in consumer income and spending power.Our business will be serving the needs of the consumers by making available to them customized chocolate which was initially not being catered to them by any source.However our organization will also be facing certain problems. The first issue to face is that of the entry of timing into the market. As the main determinative factors in this case are events and season, we will have to match the timings with these two limitations. For example weddings generally occur around winters in Lahore, consequently entering the market well before that would be a legal idea. Another issue that would be faced is of the sustainability of the organization, it is not only important to be successful over a certain time period but the most tough part is to be able to sustain this success and to be able to meet the changing requirements of the consumers. Another problem would be to see whether the location we will opening our shop at is accessible to a majority of our clients and can attract a large number of walk in customers.Marketing objectivesThis stage in marketing supplying is indeed the key to the whole marketing process. The marketing objectives state just where the company intends to be at some specific time in the future. To be most effective, objectives should be capable of measurement and therefore quantifiable. This measurement may be in terms of gross revenue volume, money value, market share, percentage insight of distribution outlets and so on. Some of the objectives of our business are as s tated belowTo increase sales by at least 10% each monthTo strike a market share of 10% within the first 18months of operationto achieve atleast 75% customer awareness of our product in our target market within the first 6 months of operationTo gain customer confidence within the first 12 monthsMarketing StrategiesThe marketing strategies are formulated in such a modality that they will assist in attaining the above marketing objectivesDifferentiation this is the primary marketing strategy of our business. We will be offering a unique product that is not available in the market before. This strategy will be useful in increasing our sales objective and the market share objectiveIncreasing awareness about our product is another strategy which will be used to achieve all three marketing objectives of our company. This will be done through effective marketing and promotional activitiesCustomer confidence will be gained by taking in complaints from customers and handling them as the cus tomers desire and also by providing customers with high qualityMarket development is another strategy which our business computer programmes to follow after a certain time period of our establishment. We will be exploring new untapped markets in terms of geographical area to increase sales and market share. sectional / Functional objectivesOur functional objectives will be divided into the advertising and promotional objectives, customer service and market research objectives.Advertising and promotional objectivesbuild awareness to reach the customers and tell the market as to what we are what we offerCreate interest in our consumers in order to make them visit the shop at least or to make a purchaseto stimulate demand and increase the purchasing activity.Reminder advertising which will be used to maintain the interest and awareness of the consumers.Customer service objectivesThe main objective for customer services is to make sure that the complaints of the customers are heard an d are taken care off.Market researchTo deliver the business up to date with the changing demands of the consumersTo keep the business up to date with the entry of new competitorsTo keep the business up to date with the strategies of the existing competitorsTo keep the business up to date with the expert innovations of the industry.Departmental / Functional strategiesThese strategies will be implemented in order to meet the above objectives.the advertisement and promotional objectives would be achieved through strategies involving effective advertisements through print and television mediums as well as bill boards.the reminder advertisement objective will be achieved by continuous effective advertisement, however it will not be on such a large scale as it will be at the time of launch.customer service objectives would be reached by having a 24 minute of arc help line available to the customer for complaints and other queries.Market surveys will be conducted time to time in order t o achieve the marketing research objectives cut back of the Marketing planIn order to keep an effective control on the marketing plan periodic reviews will be held. On quarterly basis a review of the marketing plan will be held to see whether the objectives are being met and if the strategies are efficient or not.Feedback will be taken from not only consumers but also from the employees of the organization on the operations of the company and on the implementation of the marketing plan. The marketing plan will then be reviewed accordingly and changed if needed.OperationsOrganizational PlanBuilding a strong, fixed organization requires careful planning and strategy, in which organisational plan plays a vital role. Organization plan discuses the form of ownership and advantages and disadvantages of the new venture. Its further includes authority of principles and rules and responsibilities of all the major position of the business.In the organizational plan, developing the steering team and form of organization are the foremost steps. In this the importance of employees, their loyalty and commitment to the organization and type of ownership is of greater concern to the potential investors as well as for the entrepreneur.Form of ownershipThere are three types of major legal forms of businesses or ownership. The three basic types areProprietorshipPartnershipCorporationThese three basic types of businesses are compared with regard to ownership, liability, start-up monetary values, continuity, and transferability of interest, capital requirement, and management control, distribution of profits losses and attractiveness for raising capital.The new venture The Chocolate Shop is owner owned business. The owner is the individual who starts the venture and has full responsibility for all the operations. The owner may submit some personnel such as managers, advisors, and controller etc, to assist in day to day works of the business.Liability of ownersThe possessor is liable for all aspects of the business, which means no distinction is made between the business entity and the owner. This is known as unlimited liability in which owner has to satisfy any outstanding debts of the business, creditors may seize any assets the owner has outside the business.Cost of starting a businessThe financial cost of the business is mentioned in the financial plan. But here, the cost of starting the business refers to the legal fees and expenses incurred for the formation of the venture. In our new form of business which is based on the bushel proprietorship, there are not many legal expenses involved compared to the other forms of ownership. The only legal fees necessary is the fees for trade name, which makes the cost of starting the business very low.Continuity of businessContinuity of the business is one of the most important issues for the investors as well as for the suppliers and customers because investors are concerned about the investment, and supp liers and customers prefer to have long relationship with the business they are interacting with. The chocolate shop is a proprietorship business, in which continuity of the business depends upon the owner will to continue, and or otherwise lasts till the death of the owner. Where as, typically in Pakistan, business is continued by the successor of the owner.Transferability of interestIn a sole proprietorship, the owner is completely free in the transferability of interest. The owner can sell any part or the business as pleased or when a good value is given. The chocolate shops owner has the same advantage of transferability of the interest being a sole proprietor.Capital requirementThe need for capital during the early stages of the new venture can become one of the most critical factors in keeping a new venture alive. For a proprietor, any new capital can come only from loans by any number of sources or by additional personal contribution by the entrepreneur. In borrowing money fr om the bank the entrepreneur may need collateral to support the loan. Any borrowings from outside investors may require giving up some of the comeliness in the proprietorship. Which ever the source for fund is the owner or the entrepenure is liable to make the payments and a sorrow to do so can result in foreclosure or liquidation. However, even with these risks the proprietorship is not promising to need large funds of money to do business.The chocolate shop, has acquired Rs.1.5 million from the bank and the rest of Rs.3 million is invested by the proprietor himself/herself. To acquire the loan from the bank, the owner has to keep his/her house as collateral.Management ControlIn any new venture, the entrepreneur will want to retain as much control as possible over the business. In proprietorship, the entrepreneur has the most control and flexibility in making business decisions. Since the entrepreneur is the single owner of the venture, he or she will be responsible for and hav e sole authority over all business solutions. Mean there is a centralized orbit of command in the shop.Distribution of profits and lossesThe chocolate factory is single owner or sole proprietor based business, therefore all the profits and losses are received by the owner.Attractiveness of raising capitalThe ability of proprietor to raise capital depends on the success of the business and the personal capability of the entrepreneur. Primarily because of the problem of personal liability raising capital is a difficult task.Tax attributes for proprietorshipIn proprietorship taxable year is usually a calendar year and taxes are deductible on the income generated by the proprietor business. Organization cost is non-amortizable and capital gains are taxed at individual level. A deduction is allowed for long-term capital gains and capital losses are carried forward indefinitely. For the initial organization or commencement of new business, results in no additional taxes for individual.Ta x issues for proprietorshipThe proprietor has some tax advantages that there is no double tax when profits are distributed to the owner and that there is any capital stock tax or penalty for retained earnings in the business. ascendancy of principleThe main authority of principle in the chocolate shop is with the C.E.O that is chief executive officer, who is responsible for the entire major decision making. Main functions of the C.E.O areReviewing operating and capital budgetsDeveloping longer-term strategic plan for growth and expansionSupporting day to day activityResolving conflictsOrganogramC.E.OManager performance DepartmentSales DepartmentCashier/AccountantSalesmanSalesmanStore KeeperChocolate manufacturerChocolateMakerRoles And Responsibilities Of ManagementC.E.OThis diagram shows that at the top of the hierarchy there is a C.E.O who is the sole proprietor of the business .He the is the only owner of the business his job basically would be to have an overall look at functions of the business .It is a centralize chain of command. As the sole owner of the business will be taking all the major decisions at the top. All the employees of the business would come under his command.Manager As the name suggests the manager is responsible for managing the resources in the best possible way and give the business its best possible outcomes. Manager takes into account the performance of the sales and production department. The manager is answerable to the CEO regarding the feat of the two departments. The manager also assesses the performance of the workers in the lower levels of hierarchy.Sales DepartmentCashier/accountant The cashier looks after the cash flows (both inflows and outflows) of the business. The person also maintains the accounts of the company, recording its sales, revenue, expenses etc of particular periods. A specialist is required for the job because of the importance and complexity of the task.Salesperson The primary function of this salesperson is to generate and close leads, machinate prospects, fill needs and satisfy wants of consumers appropriately, and therefore turn prospective customers into actual ones. The successful questioning to understand a customers goal, the further creation of a valuable solution by communicating the necessary breeding that encourages a buyer to achieve his goal at an economic cost is the responsibility of the sales person.Production DepartmentStore keeper This is a job in which the concerned person has to keep all the records of the inventory and the raw material. He has keep track of every thing which comes and goes from the store. He will report directly to the manager of the daily flows. He will recommend how much and when the raw material is need.Chocolate Maker This person will comprehend all the chocolate making process. He will handle all the machinery and the chocolate making process. He is basically a trained professional an artist in his field . He will design and make the choc olate according to the taste of the customer.Financial PlanTotal InvestmentBreak down of Initial Investment (Rs. per month)Rent60,000 x 6 = 360,000Salaries80,000 sore material300,000Packaging150,000Furniture600,000Transportation600,000Interior1500,000Machinery1000,000Rent will be paid six-spot months in advance, totaling Rs. 1200,000. Salaries are a total of Rs. 80,000. Rs. 20, 000 of these would be paid to a manager, Rs. 15000 each to the employees hired for the making of the chocolate and Rs. 5000 each to three other employees who would be taking orders and serving. Products would be sold on a price of Rs. 200 per 100gm of Chocolate.Paid in cash3090000Loan from bank1500,000Total4590,000Income statementAdvertisementsAdvertisements in the income statement are the highest in the first month because that is the starting month so investment in advertisement needs to be higher. It reduces in the summer and increase again October onwards.DepreciationDepreciation is metric on furniture as 5000, it has zero salvage value and the useful life is 10 years. Machinery has a salvage value of 350,000 and a useful life of 10 years hence the depreciation is Rs. 7083.3. concern expenseThe interest rate on the loan is 10% and the loan is to be given back in a period of 10 years and is paid monthly.JanFebMarchAprMayJuneSales revenue140000018000001600000160000016000001600000CGS630000810000720000720000720000720000gross profit770000990000880000880000880000880000Operating expensessalaries80,00080,00080,00080,00080,00080,000Utility bills100,000100,000100,000100,000100,000100,000Maintenance10,00010,00010,00010,00010,00010,000Misc expenses5,0005,0005,0005,0005,0005,000Advertisement150,00050,00050,00050,00050,00050,000Depreciation on furniture5,0005,0005,0005,0005,0005,000depreciation on machinery7,0837,0837,0837,0837,0837,083interest payments20,34320,34320,34320,34320,34320,343rent360,000transportation615,00015,00015,00015,00015,00015,000raw material300,000300,000300,000300,000300,0 00300,000packaging150,000150,000150,000150,000150,000150,000total operating expenses1,802,426742,426742,426742,426742,426742,426Profit before tax-1,032,426247,574137,574137,574137,574137,574Tax( 30%)-309727.974272.1141272.1141272.1141272.1141272.11Net Income-722,698173,30296,302