Business Plan Assignment - Veggie Ready Corporation PDF

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A business plan about a business idea in Iran ...

Description

Business plan

Samar Akrami – s4821132

Business plan - supported by the critique

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Executive summary Veggie Ready is a small new business that distributes vegetable packages to supermarkets and restaurants. Our mission is to supply ready to eat vegetables with high quality that bring convenience and health to our customers. Our main customers are housewives who like to prepare food for their family and have no time to go to local markets and spend a long time to get the vegetables ready to use. Our products will save their time and provide them with healthy and nutrient ingredients for their food. We want to reach the target customers by supplying our products to supermarkets and grocery stores in the town centre where is easy for them to access. We also aim to add more vegetables to our products in the future to give more options to the customers. We are also considering to offer ready to eat fruit packs in small size for students and supply them to schools. Currently, there are not any direct competitors for our business. There are only indirect sellers who sell their vegetables in different forms and in different places such as local markets or fruit shops. Therefore, our products are unique in several aspects, for example, they do not need to be washed, cut and rinsed and they look more attractive with their packages than usual vegetables in such markets. These products will be marketed by our website and social applications. We also aim to participate in some cooking shows and food exhibitions. Moreover, we want to increase our marketing expenses during low seasons. Also, because people tend to make the decision about buying such products at the store, we aim to catch their eyes at the place by creating appealing packages. Our company is located in Kermanshah which is one of the populous cities in Iran. Currently, the site of our office operates as a cooling machine shop and is equipped with necessary appliances. This establishment provides us with an easy access to town centre and our target markets. Our management team has a great background in management and marketing with good experience in working with vegetables. More importantly, we have the support of Iran Chamber of Commerce where we can get different advice about our likely business problems. In addition, our family will give us financial support in emergency cases. To start and run this business we need £2000 loan from a bank. In order to cover our initial expenses. For this business, we can invest £1000 from our personal investment. We believe Veggie Ready will become a leading company in the area and will bring highquality fresh vegetables to our customers.

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Table of content

Executive Summary............................................................................................................1 1.0 Company Summary ......................................................................................................4 1.1 Objectives.....................................................................................................................4 1.2 Mission.........................................................................................................................4 1.3 Keys to Success.............................................................................................................4 2.0 Products.......................................................................................................................5 2.1 Future prroducts...........................................................................................................5 3.0 Market analysis summary.............................................................................................6 3.1 Industry analysis...........................................................................................................7 3.2 Competitors..................................................................................................................8 3.3 Maket size....................................................................................................................8 3.4 Market segmentation...................................................................................................8 3.5 Target Market Segment Strategy.................................................................................10 4.0 Management Summary..............................................................................................10 4.1 Management team.....................................................................................................10 4.2 Staf ............................................................................................................................10 5.0 Operation ...................................................................................................................11 5.1 Payment methods.......................................................................................................11 5.2 Legal requirement .......................................................................................................11 6.0 Location and facilities .................................................................................................11 6.1 Facilities......................................................................................................................12 6.2 Packaging...................................................................................................................12 7.0 Strategy and Implementation Summary 7.1 Marketing strategy 7.2 Sales strategy 7.3 Sales Forecast 7.4 Milestone 8. Customers

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8.1 Customer purchasing behaviour..................................................................................14 8.2 Why people pay more for our products.......................................................................14 SWOT/TOWS matrix.........................................................................................................15 9.0 Financial Considerations.............................................................................................16 9.1 Important Assumptions..............................................................................................16 9.2 Expenses.....................................................................................................................16 9.3 Cost of sales................................................................................................................17 10.0 Finances....................................................................................................................18 Reference.........................................................................................................................21

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1.0 Company Summary Veggie Ready is a small and middleman business which buy vegetables from the wholesale market, get them ready to eat and then distribute them to supermarkets and restaurants. Our company is based in Kermanshah which is quite a big city in Iran. In this area, there is a lack of prepared vegetables for households and they have to spend a long process to get them ready. Our company is here to provide them with fresh and easy to use vegetables with the highest quality. Veggie Ready will be located at: Kermanshah Province, Kermanshah, Bolvar-e-Shahid Shirudi Website : www.veggie-ready.com Email:[email protected] Contact number: 083 3421 4890

1.1 Objectives: The aim of Veggie Ready is to market an innovative product: a fresh and ready-to-eat carrot, peas, celery and sweet corn packages. The objective of our company is the following: • Having strong sales in the city's major supermarkets • Supply the product to different restaurants in the city • Maintain stable prices and operation during expansion. • Provide our customers with the freshest, organically grown vegetables • Repay family investment 1.2 Mission Veggie Ready's' mission is to provide the highest-quality vegetable and become a market leader in prepared fruits and vegetables market in Kermanshah within 5 years. 1.3 Kyes to success: Quality and locality: Our veggies come from local farms in the city and we only pack vegetables with the highest quality Packaging: Our vegetables will pack with vacuum packages which make them stay fresh for about 5 times longer than usual. Convenience: We offer washed, cut, rinsed and ready to use vegetables which bring comfort and convenience to our customers.

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2. Products Kermanshah has a fertile soil which is suitable to grow different vegetables and fruits. There are many farms near the city that bring their fresh crops to a wholesale local market every morning. The vegetables of our products will be provided from this wholesale market which offers fresh vegetable with low prices. Our company is located near the market, therefore, we have access to them at any time. Our products will be packed in vacuum sealed bags, therefore they will last fresh for maximum of 25 days Carrot: This product is made from washed, unpeeled, bite-sized in different shapes include shredded, diced and sliced carrots. Carrot has many different usages in Iran, it can be used in seasonal salad, some special cuisines, carrot jam and simply be consumed as a snack. Celery: ready celery eliminates trimming, washing, drying and cutting before using. Iranian use celery in a popular stew and many different salads and foods. Sweet corn: in Kermanshah sweet corn can be bought only from a local market. This market is quite far from the town centre and it supplies unpeeled corns. Although, sweet corn has many uses in different foods and salads. It's a long process to buy them and get them ready to cook. This product includes a pack with 4 small pieces of corn. Peas: this product is quite popular in Iran although, it is time-consuming to trim and clean them properly. Similar products in this place are in form of canned peas which are completely different with fresh peas. This product will be packed in 200 gr size packages.

2.1 Future Products In the future, we are going to add more vegetables to our products such as chopped onion, green beans, lettuce, etc. In the meantime, the company would like to explore the possibilities of new products for a new market. The future product will be fruits and vegetable packages for students at schools. In Iran, students spend about 5 hours at schools each day which is a noticeable amount of time. Most of the parents do not have enough time to prepare some snacks for their children therefore, students have to buy something from their schools. Most of the refreshment stalls in Iranian schools provide students with a number of unhealthy junk foods including potato chips, popcorns, sweets, biscuits, ice cream, etc. Thus, it can be a great opportunity to supply a new healthy snack for students during their breaks at school. Our future product is fruit salad pack in small size to supply in schools for students. This package Healthy for The NightofShif Power the include Time is Tradition Food Everyone Plants combin all important Evening is a new Waste Not Consumers like ages. for for Healthy food and hightime demand comfort from age-old formulations, flavours and formats.

functional food natural, simple andflexible drink and formulations. diets will increase vegetarian, vegan and other plant-focused

The focus drink areof sustainability becoming more andpopular. eliminating food waste.

The time required for products and meals will become more vital.

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3. Market analysi Currently, 74.8 % of the Ira recent years, the rapid incr and vegetables.

ometers 2017). In effect on processed fruit

Furthermore, there is a hig attention to what they eat rising dramatically. In additi n like to buy foods with the minimum time of preparation.

y tend to pay more d like vegetables is a hectic lifestyle they

Based on a research on the amount of vegetable consumption in different countries in 2017 (HelgiLibrary 2017), Iran is among top 15 countries with 233 kg per capita which is a noticeable amount in compare to other countries (See Figure 1).

Figure 1: Vegetable consumption in the world

As a matter of fact, most of the Iranian families tend to prepare homemade food instead of eating out or buy prepared food. Therefore, this is a great opportunity to offer prepared vegetable packages to them so they are able to make homemade food with ready to use vegetables and spending less time.

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3.1 Industry Analysis Based on a research by Mintel (2017), there are 6 important trends in food and drink industry in the world (See Figure 2).

Figure 2: Global trends in food and drink Some of these trends can affect Veggie Ready in the future: ● People are seeking for healthier food which can be provided by our products ● Our company try to use recyclable packages in the future to fulfil the need of more sustainable products

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● The power of the plants and increasing number of vegetarians and vegans. ● Time is an issue that our company has considered as an important fact in producing goods

3.2 Competitors In Iran, most of fruits and vegetables can be found only in fruit shops or local markets. Most of the farmers who sell their products in these markets do not have a brand for their goods and cannot present their products in a proper way. Also, the vegetables in such places are dirty and need a long process to get prepared for consumption. There aren't any direct competitors for our company. However, there are 2 indirect competitors that might have some influences on our company. Local markets: there are many of these markets in Kermanshah such as Friday Market, Maskan Market and Vaziri. Most of the farmers bring their products to these markets and all the vegetables are in the same condition which needs a long process to get ready to use. Prices in such places are quite cheap and reasonable. Fruit shops: vegetables in these shops have a better condition than local markets. They are likely to be cleaner and more organised. Although, they are still in their natural form and require a long time of preparation. Prices in these shops depend on their location is quite higher than local markets. 3.3 Market Size The population of Kermanshah is about 1,070,000. 40% or 428,000 of this population are between the ages of 30 and 64 and 50% or 214,000 of these, are women which consist our target group. We estimate that roughly 2/3 of these people have pre-existing products loyalties or economic constraints that would discourage them from buying our products. Therefore, our main target market is roughly 72,000 people. 3.4 Market segmentation The product will have a wide variety of customers, from restaurants and hotels to households and students. Veggie Ready has a focus on three distinct customers: Housewives: Women in Iran have the key responsibility to cook traditional cuisine at home and they need to buy all the necessary ingredients for cooking. These days, the number of women working outside has increased significantly. (Euromonitor International, 2017). Furthermore, based on a research by Esteghamati et al. (2011), Women tend to eat vegetables more ofen compared with men. Therefore, the main customers of our product can be housewives who have no time to wash and cut vegetables to make food and also do

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not want to move around for purchasing fruits and vegetables. Restaurants: there are many restaurants near our company that use carrots in their salads. We will sell our products to them with wholesale price and in bulk packages. Although restaurants as a customer might get a better price and make less profit, Veggie Ready has a long term contract with them which helps out in terms of stability. Supermarkets: There are many local supermarkets in the city where we can supply our product. One of the most popular shops that sell a different kind of processed and convenient food in Kermanshah is Kadbanoye Nemone. We have already negotiated with the manager of this shop and she agreed to sell our product in her shop. It is likely that some restaurants buy from these supermarkets when they need a few amount of vegetables.

Market segmentation

supermarkets

restaurants

individual customers

Figure 3: Market Segmentation

As it can be seen from the pie chart our main market to distribute our products are supermarkets especially those that are located in the city centre. Individual customers consist the shortest portion of the chart because it may take time for them to get familiar with our products and start purchasing directly from our website. The consumer market is quite seasonal especially for sweet corn and peas which are mostly summer vegetables. So, in off seasons we will focus on wholesale restaurant distribution. During the spring and the summer, Veggie Ready will be easily serving both the consumer markets through supermarkets and the restaurants through direct distribution

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3.5 Target Market Segment Strategy Housewives: These customers will be buying Veggie Ready products from the different supermarkets located in Kermanshah, the main one is Kadbanoye Nemone. This shop is located in the city centre with an easy access for most of the families in the city. Moreover, Veggie Ready will be able to deliver goods at the customer’s home by online ordering through our website. Delivery will be free of charge for repetitive customers. Restaurants. Veggie Ready will target these customers by introducing our products to the restaurants through meetings and negotiations with the managers at each restaurant. There are about 30 different restaurants near our company that use carrots in their salad and we are likely to have a long-term contract with them.

4. Management Summary As a Limited Liability Company in Kermanshah, ownership of Veggie Ready is identified as belonging to its managers. These partners, Hengameh Azad and Samar Akrami, each own 50% of the business. 4.1 Management team Samar is a chef and she is familiar with different ingredients of Iranian cuisines. She spent 5 years studying in Hospitality Management and she also has a work experience in a small vegetable farm for 2 years. She will be responsible for staffing, product ordering and daily operations. Hengameh has 5 yeas management experience in Maral Company and she has a great IT skill. She is familiar with a variety of computer sofware including Photoshop, Excel, Word, etc. She has a bachelor degree in graphic design and has a great experience in designing websites, logo, packaging and business cards. She also has 2 years' experience in accounting and bookkeeping in Negin Company. Hengameh will be responsible for accounting, stocking and bookkeeping. Both of them are members of Iran Chamber of Commerce and have participated in a number of branding, marketing, accounting and management workshops. They can also get different supports from this institution for different business issues. 4.2 Staf Zhale Amiri as one member of our team is responsible for marketing and research and

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development sections. Currently, she is a chief executive of Niusha Tea and she has a PhD in marketing. In order to run the business except from management team and R&D section, we need 3 other staffs. 1 person for purchasing and delivery of goods. And other 2 for washing, cutting and packaging of vegetables. We might hire more people as the company gets bigger and profitable in the future.

5. Operation The operation process consists of 6 different stages as follows:

Purchasing fresh vegetables from the local wholesale market

Wash, rinse and cut the vegetables in different shapes

Making standard sized packages of vegetables

Taking orders for the next day

Loading of the packages in Vehicles and delivery of the goods

Packaging as per customers’ orders

5.1 Payment m...