Fresco...Juice Bar 1 - Strategic plan PDF

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Strategic plan...

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Contents

Executive Summary

4

Fresco – de Fruit Juice Bar..........................................................................................................4

Background

10

Introduction................................................................................................................................10 Dominant Economic Traits for the Healthy food industry........................................................10 Key success factors of the Healthy food industry.....................................................................12

Objectives of Fresco

14

Logo...........................................................................................................................................14 Vision.........................................................................................................................................14 Mission......................................................................................................................................14 Our Values..................................................................................................................................14 Our Business..............................................................................................................................15 Customer profile........................................................................................................................15 Key Success factors...................................................................................................................16 Driving Forces...........................................................................................................................16 Action Plan for the First year.....................................................................................................16 Long Term..................................................................................................................................17

Market Analysis

18

Need Analysis............................................................................................................................18 Sample and Research design.................................................................................................18 Tools and Methods of Data Collection..................................................................................18 Data analysis..........................................................................................................................18 Overall Market...........................................................................................................................19 Specific Market..........................................................................................................................19 Internal Environment Analysis..............................................................................................19

External Environment Analysis.............................................................................................20 Strategic Group map..................................................................................................................24

Production

25

Fresh fruit juice..........................................................................................................................26 Juice extraction process.........................................................................................................26 Smoothies..................................................................................................................................28 Smoothie Ingredients.................................................................................................................29 Smoothie Maker.........................................................................................................................29 Take-away drinks...................................................................................................................29 Promote Green.......................................................................................................................30 Manufacture of containers.....................................................................................................30

Quality Assurance 31 Raw Materials............................................................................................................................31 Suppliers................................................................................................................................31 Storage...................................................................................................................................31 Process...................................................................................................................................31 Healthy product.........................................................................................................................31 Labeling.................................................................................................................................32 Leakage and Breakage...........................................................................................................32 Machine Quality....................................................................................................................33 Finished goods...........................................................................................................................34 Fill Value................................................................................................................................34 Storage...................................................................................................................................34

Market Orientation 34 Marketing Mix ( 4Ps).................................................................................................................34 Product Strategy.....................................................................................................................34 Place ( Location)....................................................................................................................36

Pricing Strategy.....................................................................................................................37 Promotion Strategy................................................................................................................38 ANSOF Matrix..........................................................................................................................39 Value Chain Analysis.................................................................................................................39

Financial Strategy 47 Sources of funds........................................................................................................................47 Uses of Funds............................................................................................................................48 Monitoring and controlling........................................................................................................48 Projected Income statement.......................................................................................................48 Balance sheet.............................................................................................................................49 Cash Flow Statement.................................................................................................................49 Sales forecasts............................................................................................................................50

Organization and Management

52

Human Resource Strategy.........................................................................................................52 Key functions of the company...................................................................................................52 Ownership..................................................................................................................................53 Registration of partnership....................................................................................................53 The Partnership Agreement...................................................................................................53 Initial Equity position................................................................................................................53

Critical Risks and Contingencies 54 Risk Analysis.............................................................................................................................54

Appendix 1 – A sample questionnaire Appendix 2 – Analysis of the survey Appendix 3 – Analysis of Expenditure

Executive Summary Fresco – de Fruit Juice Bar Fresco is a fruit juice bar which provides a place to spend the time leisurely with family and friends with the essence of nature and plus it provides a fruit juice bar for the single fast moving customer

where

take

away

also

available.

Fresco provides seasonal packages and healthy packages matching the life styles of the busy urban living. Fresco’s main products are Fruit juice and smoothies with other fruit products bundled with experience of the essence of nature. Other fruit products includes salads, fresh fruit plates and sundaes, etc Prior to deciding on entering this industry, a macro-environmental analysis was conducted in terms of Key Success Factors Analysis, PESTLE Analysis, Five Forces Competitive Analysis, and Strategic Group Maps, to establish the attractiveness of the industry. Through these analyses we were able to establish that the industry is sufficiently attractive to enter and grow the business. Subsequently, a market analysis was conducted to determine the needs of the potential customers and micro environmental study by visiting few Fruit Juice bars around.

Market Analysis We conducted our market analysis through a market survey and field visits (primary data) and a research using secondary data. When conducting the survey we gathered information from different age groups, genders, job categories and etc. we distributed our questioner among school students, employees and general public. We conducted telephone interviews in order to gather descriptive information and different perspectives and visited few fresh juice shops to and collected data by observation. We gathered secondary data basically from internet and existing market researches done previously by others. We analyzed gathered data properly drew up our conclusion. According to the analyzed information, we realized our main focus must be with office crowd because of their income level. But they mainly focuses on ready- made fruit juices and smoothies. Also there is going to be a certain set of customers who is willing pay for extra money for the experience given and just in time prepared fruit juices during week days and holidays and take away the drink to adjust with

their busy life styles. Therefore we are going to have two segments (take away and Just in time). Also we expect more customers during 12.00 hrs – 13.00hrs, after 16 hrs in week days. As previously mentioned weekends will be filled with customers who love leisure and experience. We expect more consumers from the age group 20 – 30 because it represents the youth and they always want to go for new experiences and they are ready to pay little bit of extra for that additional experience. Our conclusion of market analysis is matched with our overall business strategy which will enable us to be success in fruit juice and smoothies industry.

On establishing the market need for our target market segment, a corporate strategy was crafted to meet the needs of the potential customers. This strategy included the vision, mission, objectives and goals of the fruit juice bar, and the Production and supply chain plan, human resource strategy, the marketing approach, and the financial strategy.

Financial Strategy Often the hardest part of starting a business is raising the money to get going. Though we have a great idea and clear idea of how to turn it into a successful business finding the finance should be considered as a critical factor. However, if sufficient finance can’t be raised, it is unlikely that our business will get off the ground. The objective of this strategy is to address the following problems with regards to finance. 

How much finance is required?

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When and how long the finance is needed for?

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What security (if any) can be provided?

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Whether the entrepreneur is prepared to give up some control (ownership) of the start-up in return for investment?

Following cost elements have been considered in developing the finance strategy. 

Starting investment in capacity (the fixed assets that the business needs before it can begin to trade- Ex : Refrigerators, Blenders, Furniture)

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Working capital (the stocks needed by the business-Ex: Fruits, Essence, Bottles )

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Growth and development (Ex: extra investment in capacity, New product development, Increase the availability, Advertising)

Sources of funds We have considered several financing options. Hence this is the start of our business it is difficult to rely on long term bank loans or any other long term financing method. Here are the options of funding that we have considered. 

Personal savings

In this method individual team member is going to contribute based on their potential until the business reaches the defined satisfactory level the major part of the profit (2/3) will be retained within the business. Profit will be shared based on the capital contribution and considering some other factors. There are definite advantages here: 100% control and ownership of funds. Hence we are dealing with our own money riskier decisions can be made to obtain a higher return. 

Micro finance

In Sri Lankan context micro finance has become a key financial source. There are number of finance companies operate with micro finance. Since there is no requirement of having collateral, this can be considered as a very important source for our business. Another thing would be that it helps us to develop a long term relationship with a finance company and it will be crucial in developing a long term financing strategies.

Production and Delivery Strategy As our main objective is promoting a healthier lifestyle fresco’s production strategy is focused on providing natural fruit drinks and other fruit based foods ensuring their quality and freshness with maximum nutrition. 

All the products will be manufactured in-house. -To gain control over the quality of products - To gain skills, expertise and ownership of the products with supreme quality -Adds flexibility to production as volumes can be adjusted as appropriate

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Juices, smoothies and other fruit meals are prepared upon the customer demand to ensure their freshness.

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To please our customers by minimizing the waiting time and to gain maximum speed of delivery -Each order will be fulfilled within 3 minutes of placement

-Machinery is carefully selected to achieve higher speed of production -Production process is developed in way to achieve maximum utilization of human resources & machinery 

Take-away facilities will be provided -fruit drinks and other products will be provided in appropriate handy containers suitable to take away.

Supply Chain Fruits will be purchased by making a contract with a fruit seller daily basis to ensure the quality and the freshness of the fruits. Delivery of the fruits will be performed by a own vehicle in delivery boxes. In product delivery Smoothies, fresh fruit juices and other fruit products will be delivered in glass/porcelain containers at the bar, and take away products will be delivered in eco friendly packages with above mention production.

Marketing Strategy Fresco’s marketing strategy will be based on the healthy & nutritious value, resemblance with the essence of nature and experience bundled with the product. Fresco will be located in an urban area with busy life style so the healthy life style choice will be promoted. Pricing strategy is formulated according to the prices of the raw materials and other factors. Fresco will use law cost promotion methods at first, but will use attractive and interactive methods to promote such as participating in women’s occasions, free taste runaways, animated promotions, loyalty program etc.

Administrative Strategy Human resources will be limited at the first stages where duties will be overlapped. Sourcing of the equipment will be done to ensure maximum productivity gaining efficiency and effectiveness in order to meet customer expectation ( i.e fast delivery), quality (i.e lean storage) freshness and cleanliness which will be the key success factors of the business. Accounting and bookkeeping will be also done by the same staff continuously and monthly reports will be generated to study the progress of the business in order to keep track of the business performances and evaluate the strategies in action.

Customer feedbacks will be obtained to gain an idea and improve the customer care and sales.

Conclusion Based on the Macro and micro Analysis done Fresco has formulated its strategies to start and grow the business. In Analysis SWOT, PESTEL, Porter’s five forces model, Value Chain Analysis, Surveys and field visits were used and derived conclusions based on the studies. Information collected and derived from the studies used to formulate the production, marketing, finance and Administrative strategies.

Background Introduction Healthy food is a term given to food that can be prepared using nutritious ingredients and in our industry our main objective is to prepare nutritious food and serve quickly and conveniently to customers for affordable price using “drive-through” service which allows customers to order and pick up food from their cars. According to present situation people concern not only about the taste of the food but also about its quality and health concerns, and they are adopting for take-away or take-out providers because of their busy life styles. By concerning them and indicators explained in this document we can mention healthy food market as growing industry. Fresh fruits is a main part of healthy foods, where row foods doesn’t contain any harmful ingredients but contains nutritious ones which makes people more healthy specially when its taken with less processing. With the busy life styles, people are getting away from nature, so is

from fresh fruits even though they have the need of adding fruits in to their eating habits. So there is a need of convenient way of having fresh fruit in to their busy life styles. Dominant Economic Traits for the Healthy food industry

Market Demand Even though Private sector is aggressively operating the food industry by differentiating their products by taste quality and service still only few dominant players are there in the healthy food market. Yet the market has not been adapted to a demand driven one. Therefore demand for healthy food is assumed to be really high. There is a huge gap between the healthy food providing capacity and demand. In the fresh fruit smoothie/Juice business it is the same as the healthy food industry at large. Industry profitability Increasing demand patterns indicate the healthy food industry as an profitable indu...