Business Plan Saturation Inc

Question: Prepare a report with core elements of a business plan for Saturation Inc new venture? Answer: 1.0 Introduction Saturation Inc, is the newly developed business venture which is focusing on introducing a new cafe. It is a starting venture in Australia and the place which has been chosen for introducing the cafe is Mountain Glen shopping centre. The location has been chosen in a way so that, the cafe can take the advantage of large amount of shoppers who come to the place to shop. The cafe is being introduced by the owner with the plan to serve not only coffee but also different types of foods. The owner of the company already has the experience of business and thus the owners have the competitive advantage of having financial resources with them. 1.1 Business idea and product description The idea of the business is to serve the shopping customers of the Mountain Glen shopping centre of Australia and the reason for developing the cafe shop in this particular area is to attract those customers of the shopping place who want to spend time with coffee and some snacks with friends and families (David, 2005). The major competitive advantage that the new business venture can obtain from introducing the coffee shop in the particular place is that the place has a scarcity of coffee shops and the new company can take the advantage. People who will come for shopping and refreshment can take the advantage of having coffee and other food from the cafe because, now-a day shopping has become a mode of entertainment. The cafe has the capability to plan to serve more than 2000 customers per day and for that the proper capital requirement is present in the cafe. The major activities which the new venture conducts are as follows: Purchasing of materials, storing of those purchased materials, preparing of those materials, selling the materials and serving the finished products to the customers. The customers will be served by two major ways; one is the dine in method and the other one is the take away mode. The cafe is open from 9.00 am to 9pm for Monday to Friday and for Saturday and Sunday the cafe will be open till early morning of 3 am. The company has the objective to offer high quality food and coffee to its customers so that the customers would always be happy. The trained chef of the cafe are able to produce healthy and fresh meals for the customers and looking at the changing taste pattern and behaviour of the consumers towards the food the simple and healthy food items are kept in the menu. 1.2 Prospect of the venture Establishing the cafe in the area named Mountain Glen Shopping centre is a rationale move because, the area is a developing area and this is not a saturated one. Once the company can get success from establishing itself in the area it will help to build-up a brand image in that shopping centre. It is a regional shopping centre and apart from that this area is considered as a large residential area and with the development of residential area the commercial development and also the development related to retail entities are happening in that particular place. The location of the business is the main competitive advantage for the company as the new venture is situated in a place where the benefits of two major supermarkets can be obtained. The glen supermarket is situated in a nearby location of other two supermarkets and the passing away customers are the major strength of the business. The area is full of retail outlets and fashion retails and in that place the Saturation Inc has got the most attractive place in which large number of passing away customers are found. The major customers of the business are the passing away customers of shopping and apart from the second major group which is being targeted by the company are the staffs of other shops. The staffs require daily and healthy food items and also coffee and the cafe are able to provide the solution related to the need of those customers. The staffs can take a short break from their work and can obtain the excellence of coffee in a soft and vibrant environment with low price offerings. The area in a nutshell can be said that is developing in nature and with the development of the area there is huge potentiality of the company to grow and thus the future growth of the cafe can be predicted as 10% with-in one year of time period. 1.3 Entry and positioning strategy The cafe enters into the market through identifying vision and mission statements and through undertaking the segmentation, targeting and positioning strategy. Vision: The vision of the cafe is to be the most preferred cafe location for the pass away customers of the shopping centre named, Glen Shopping centre:. Mission: Mission of the business enterprise is to provide satisfaction to customers through satisfying needs of the customers and the satisfaction of needs are done through offering delicious, healthy and nutritious food. STP strategy Segmentation: The segmentation strategy is based on segmenting the customers into different bases and the bases which are taken here for segmenting the customers are demographic base and the psychographic base. The demographic base has been chosen because the cafe wants to target the customers between the age group of 25-45 years and the psychographic base can be chosen so that, the customers from the lifestyle group who wants to spend valuable time with their friends and family members in a coffee shop. The reason for choosing the demographic base is to find out proper demographic base depending on income group. Targeting The face will target the customers who comes for shopping an also spend valuable time with friends and family and also the staffs of the shopping malls who can get their meals and coffee in break time. The large portion of the customers who prefers coffee are known as the social customers and the targeted customers of the company prefers the value for money proposition. The cafe has targeted the customers in a way so that, every member of the family can enjoy the meal in an appropriate and enjoyable mode. The take away customer base will also comprise of the groups engage the age group among 18-40 years. The cafe has targeted the group who has the moderate amount of income or affordability to higher level of income. Though major part of the consumers are considered as social drinkers but there are people for whom coffee has become a daily drink and those customers want a excellent environment in which they can mix up with their friends (Lepori, et al, 2007). Positioning The cafe wants to position itself in the healthy and delicious meal and coffee in affordable pricing. The company wants to position itself for the daily meal and also providing of coffee environment to the customers. 1.4 Marketing strategy of the company Marketing strategy of the company can be discussed through analysing four 4s of marketing and those are product, price, promotion and place. Product: The major differentiating strategy of the company is the healthy and light food meals for the customers. The major products of the cafe are beverages, cakes and desserts, healthy and fresh foods and the fine coffee. The products can be divided into two different segments and those are fine dining and also the take away facilities (Kotler, 2003). Price: While deciding the price level the cafe has considered the value for money proposition. In the market where the availability of other cafes are not there thus the discounted amount of coffee will not be popular in this case. The market is captive market and the consumers or the potential consumers of the cafe possess medium to high level of disposable income. For those consumers though the low or penetrating pricing policies have not been described but yes the value for money elements are always being applied to the framework of the company. Place: The location of the cafe is the major attraction and reason of availability for the consumers. The shopping centre named Mountain Glen is a place which is surrounded through 250,000 persons and the customers can access the place from 15 kilometres away which is the greatest advancement for the cafe (Goel and Karri, 2006). Promotion: With the association of Mountain Glen management a range of activities or promotions are undertaken. The promotional benefits offer the discounted foods for the cafe. Initially, the discounted offers for meals and coffee will be operated for two consecutive weeks (Thackeray, et al, 2008). In this two weeks the customers will get attracted towards the promotional aspects of the company and with-in this time frame the customers get aware regarding the products and services of the cafe. Once the customers get aware regarding the products and services of the cafe it becomes easy to be popular in the market. Once the company will get popularity it will be easy to increase popularity through word of mouth communication which is known as a major form of communication (Davis and Elizabeth, 2006). Front signage of the shop, a frame if advertisement board, a scheme of loyalty card all are helpful to attract the consumers. 1.5 Attractiveness and Risk of the business The major attractiveness is the location of the business as there are few competitors within the particular supermarket. The supermarket is a place where two other supermarkets are also present in nearby locations. As already discussed the first competitive advantage of the company is the location and thus the second attractiveness of the company is the quality products. The quality products are the major aspect through which the customers of the cafe are being satisfied. The cafe is going to introduce those foods which are required for daily consumption and healthy in nature and recent obesity problem and awareness towards the health of the people it can be said that the company has undertaken an excellent move by keeping only the healthy food items. The cafe is run and operated by the international chefs who are expertise in offering the customers new food items with-in a very quick time period (Nesheim, 2000). The last and foremost important proposition for attractiveness is the p ositioning of the company which talks about the convenience, health conscious and light food products by the company. Risk management Description of risk Likelihood Impact Priority Action for prevention Contingency plans Fire loss related risk or property life Medium High High For preventing smokes and fire smoke alarms will be fixed in the premise of cafe and fire extinguishers will be also be fixed into the premise of the cafe (Johnstone, 2000). The resource will be made ready if any kind of re-establishment of business is required. All the insurance policies and formation will be done so that, the company can claim from insurance companies further but the resources should be ready enough so that, it is not required to wait for coming the claim from insurance companies. In case the suppliers will change their terms and conditions Medium Medium Medium Two ways: maintain sound relationships with suppliers and second obtaining cash reserves. Keep a back up of alternative suppliers and another mode of doing so is enhancement of capital. Health related problems Very low Very high High Using high quality products and usage of quality staffs and majorly monitoring the supplies which are coming from the suppliers are the main concern for quality control process. Introduction of a process related to complaint handling and identify the source of food (Hull, 2014). In case the suppliers is not able to supply Low Medium Medium Arrangement of alternative suppliers is always required and evaluations of substitute products are also the key to resolve the problem. Purchase the quality materials from other sources and also purchase of alternative products from alternative sources of suppliers. In case the company or cafe losses a key person Very low Medium Medium Transfer of skills can be done from one person to another through training and development process. Contracts should be there with various agencies so that, they can supply proper amount of personals in proper timing. 1.6 Financial requirements Year 2015 2016 2017 Total Assets $998042 $128053 $175579 Total Capital $173754 $524817 $992135 Total Liabilities and Capital $998042 $128053 $175579 Net Worth $173754 $524817 $992135 From the financial figures it is observed the total assets acquired by the cafe in the year 2015 is $998042, in the year 2016 the total assets acquired by the cafe will be $128053 and in the year 2017 the total assets acquired by the company will be $175579. The total capital requirement for the cafe is $173754, in the year of 2016 the total capital requirement will be $524817 and in the year 2017 the total capital requirement will be $992135. The total amount of liability for the year 2015 will be $998042, the total amount of liabilities for the year 2016 will be $524817 and the total amount of liabilities for the year 2017 will be $175579. The net worth for the year 2015 is $173754, for the year 2016 will be $524817 and for the year 2017 it will be $992135. 2.0 Conclusion Saturation Inc is a newly developed venture of cafe which does not provide the coffee experience to the customers but, it provides the healthy meal experience to the valuable customers. Major competitive advantages which the company has availed are location benefit with-in the shopping centre and also the value for money for the healthy meal. Reference Johnstone, K. M. (2000). Client-acceptance decisions: Simultaneous effects of client business risk, audit risk, auditor business risk, and risk adaptation. Auditing: A Journal of Practice Theory, 19(1), 1-25. Hull, J. C. (2014). The evaluation of risk in business investment. UK: Elsevier. Kotler, P. (2003) Marketing management. Upper Saddle River, N.J.: Prentice Hall. Lepori, B., Van den Besselaar, P., Dinges, M., Van der Meulen, B., Pot`i, B., Reale, E., Slipersaeter, S. and Theves, J. (2007). 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