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Business Plan 1

RUNNING HEAD: BUSINESS PLAN

Creating a Business Plan

[Name of Student]

[Name of University]

[Word Count: 1044]


Business Plan 2

Creating a Business Plan

Business Idea

A specialty beverage retailer business idea is proposed named as Blue Ribbon. The

business provides its customers the best cold and hot beverages, focusing on specialty blended

teas and coffees, and several other customized drinks. Additionally, Blue Ribbon will offer fresh

juices, milkshakes, freshly baked pastries and other confections. According to the season, Blue

Ribbon will also include beverages like hot, frozen coffees, apple cider, and much more.

Unique Selling Point (USP)

Blue Ribbon is going to use a novel system that is new to the food and beverages industry

to offer cold and hot drinks in a time saving and convenient way. Blue Ribbon offers its

customers the opportunity to drive thru and order (from a trained Barista) their variety of freshly

prepared coffee, custom-blended espresso drink or other drinks.

Besides offering a fine product and a wide-ranging menu of mouth-watering items, to

guarantee loyalty and awareness of the customer and also good support from the media and

publicity coverage, Blue Ribbon will be donating up to 8% of the profits to local charitable trusts

based on the choice of the customers.

Marketing Mix

The marketing mix (4Ps) of Blue Ribbon demonstrates the significance of this tool for

marketing as an approach to making sure that the firm upholds the exact products at the standard

places and prices.


Business Plan 3

Product

Blue Ribbon will continue to be innovative in its product mix to get the most of the

market share. According to Barrett and Weinstein (2015) this part of the marketing mix

emphasizes on what is offered by the business to consumers. Currently, the following are the

major products of Blue Ribbon:

 Coffee

 Milkshakes

 Pastries

 Fresh juices

Price

According to Barrett and Weinstein (2015) the factor of price is utilized to find out the

product’s value. Blue Ribbon will always put extra efforts to provide fine quality products to the

consumers. The consumers will be offered the finest coffee beans and ensure that Blue Ribbon’s

staffs are effectively and effectively trained. This approach is directly proportional to their price,

since the beverages offered at Blue Ribbon will not be cheap, and it will apply premium pricing

since it will offer the best experience to the customer.

Place

Blue Ribbon will offer the majority of its products using the drive thru experience located

at London Bridge. This element of the marketing mix evaluates the locations at which consumers

can get hands on the products (Barrett and Weinstein 2015). In Blue Ribbon’s case, drive-thru

cafe at London Bridge will distribute the products.


Business Plan 4

Promotion

Blue Ribbon will promote its products chiefly my means of advertising. This element of the

marketing mix is related to the communication approaches utilized to propagate information

regarding the business and its products (Barrett and Weinstein 2015). The promotional mix of

Starbucks is as follows:

 Sales promotions

 Advertising

 Public relations

Target Market

Blue Ribbon is going to aim two diverse segments of the market: Captive Consumers and

commuters. To have hands on these markets equally, Blue Ribbon will consist of two different

systems of distribution. For the captive consumer, Blue Ribbon will have the Mobile Cafe. For

the commuters, Blue Ribbon will have the Drive-thru coffee house located at London Bridge.

The target market of Blue Ribbon is the mobile entity who is more concerned with time than

money as that customer has superb taste in the selection of beverage, but short of time to hang

around in a cafe. By opening up a Drive-Thru in a busy area with high traffic, this abundant and

a unique customer will look for Blue Ribbon and become a regular visitor.

Bowman’s Strategy Clock

The basic strategies accessible to businesses are illustrated by the Bowman strategy clock

(Wright, Paroutis and Blettner 2013). The model recognizes eight diverse approaches, which

fluctuate on the supposed value by consumers and the dimension of the price
Business Plan 5

(Thomas,Gudmundson, Turner and Suhr 2014). Considering the services and products offered by

Blue Ribbon, the Business will pursue the same basic strategy to encounter the market

competition amongst cafes situated at London Bridge. Since Blue Ribbon will offer its

consumers hot and cold beverages priced almost same as its competitors, the business cannot

contend on the dimension of the price with other big names in the coffee industry.

SWOT analysis

Blue Ribbon will look to be branded as a well-renowned coffee house in London. The

competitive advantage of the business will be based on its strengths, as demonstrated in the

SWOT analysis below:

Strengths

Blue Ribbon’s major strengths will be:

 Strong image of the brand

 Expanded business through subsidiaries

Weaknesses

Blue Ribbon’s key weaknesses are:

 Higher cost of the products

 Some products already offered in the market

 Imitable products
Business Plan 6

Opportunities

Blue Ribbon’s key opportunities are:

 Expansion in other areas of London and the United Kingdom

 Assortment of product mix

 Alliances or partnerships with other major businesses

Threats

The major threats to Blue Ribbon’s business are:

 Competition with other coffee sellers on London Bridge with lower rates

 Replication

 Autonomous coffeehouse activities


Business Plan 7

Competitor Analysis

Blue Ribbon considers itself to be a strong competitor in the industry of retail coffee

shops. Though, it acknowledges that competition for its products varies from milkshakes to fresh

juices to hot beverages.

Name, location Product/service Price Strengths Weaknesses

and business size

1. Starbucks Coffee, Pastries, £ 2.65 Renown brand Average


Cookies and Milk customer
Shakes service

2. Costa Coffee Tea and Iced £ 2.75 Best customer High prices
Drink service
Business Plan 8

Finance

Blue Ribbon’s financial image is quite capable. Since Blue Ribbon will be operating a

business based on cash, the primary cost will be considerably less than several start-up

businesses nowadays. For the rationale of this Pro-forma plan, the equipment and facilities will

be financed. These things are principal expenditures and will be obtainable for investing. Blue

Ribbon projects the primary arrangement of investments and long-term investment to keep it

running with no the requirement of any supplementary debt or equity investment, further than the

acquisition of facilities of equipment.

Sales

YEAR 1 YEAR 2 YEAR 3

£500,152 £2,459,413 £6,033,849

Total Cost of Sales £337,267 £1,413,634 £3,298,604

Gross Margin £220,776 £935,267 £2,724,346

Gross Margin % 39.56% 39.82% 45.23%


Business Plan 9

References

Barrett, H. and Weinstein, A., 2015. Corporate entrepreneurship, the marketing mix, and

business performance. In Proceedings of the 1997 Academy of Marketing Science (AMS)

Annual Conference (pp. 144-150). Springer International Publishing.

Wright, R.P., Paroutis, S.E. and Blettner, D.P., 2013. How useful are the strategic tools we teach

in business schools?. Journal of Management Studies, 50(1), pp.92-125.

Thomas, D.F., Gudmundson, D., Turner, K. and Suhr, D., 2014. Business Plan Competitions and

Their Impact on New Ventures' Business Models. Journal of Strategic Innovation and

Sustainability, 10(1), p.34.

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