Table of Contents
TOC o “1-3” h z u HYPERLINK l “_Toc402064967” Introduction PAGEREF _Toc402064967 h 1
HYPERLINK l “_Toc402064968” SMART objectives PAGEREF _Toc402064968 h 1
HYPERLINK l “_Toc402064969” Product PAGEREF _Toc402064969 h 1
HYPERLINK l “_Toc402064970” Market Research PAGEREF _Toc402064970 h 2
HYPERLINK l “_Toc402064971” Pricing and Promotion PAGEREF _Toc402064971 h 2
HYPERLINK l “_Toc402064972” Operations Plan/Organisation Chart PAGEREF _Toc402064972 h 2
HYPERLINK l “_Toc402064973” Financial Projections/Income Statement PAGEREF _Toc402064973 h 3
HYPERLINK l “_Toc402064974” Justification PAGEREF _Toc402064974 h 3
HYPERLINK l “_Toc402064975” Works Cited PAGEREF _Toc402064975 h 4
HYPERLINK l “_Toc402064976” Appendix PAGEREF _Toc402064976 h 5
Introduction
This report is going to discuss a business plan for the sale of ice cream in Dubai Area. It will in detail highlight the marketing research, the product itself, the promotional strategies to be used as well as the price of the product. In addition, the operational plan and the financial project of the business will be noted in the report.
SMART objectives
To meet the need and the demand of the large client base of Ice Cream in Dubai area inclusive of college students-more than 30,000 clients demand population.
To ensure the quality of ice-cream is better than those of the seven competing franchise business in the city.
To maximise the profits of the business from AED 2 million as of 2013 to at least AED 4 million in 2014. This is expected to be obtained from the sale of the ice creams to high school as previously the business dowelled on college students only. The expansion of the business to other areas in Town will also increase the expected profits.
Product
Shasta Ice Cream, located in Dubai will construct, develop, and operate a licensed hand dipped ice cream shop through The Shasta Ice Cream Company, Inc. This single retail Ice Cream shop will focus on three main products, Ice Cream, Frozen Yogurt, and Smoothies, all manufactured in house. Revenue will be primarily from the sale of our unique ice cream flavours and related products consumed by customers in the surrounding area (Ford, Brian, Jay and Patrick 12). Shasta will begin operations in June, 2014, and will be a single member Limited Liability Company in which I will be the manager of the company. The company will offer unique packing of the products for it clients and also offer delivery services to clients purchasing in plenty.
Market Research
The market for ice is enjoyed by almost all age groups and demographics; from young toddlers to retired senior citizens everyone loves ice cream. Dubai was founded in March 2012 during the formation of the UAE period in Dubai by August of that year the population had grown to 5,000 people (Andrea, et al 10). Since the early 2012 the business has been mainly know to college students and by passers on a road trip. I will try and take advantage of travellers by posting Shasta Ice Cream on the traveller information signs found just before each exit every driver sees when driving north or south on Interstate 5. The business is now intending to open its door to High School students as well.
Pricing and PromotionThe prices of ice cream will vary from one to the other depending on the size and quality of the product. The list will cost AED 12 and the most expensive one will cost AED 20. However, those taking in bulk will have a reduced price of the products. The business is planning to introduce new marketing or promotional strategies in order to meet the new set of clients such as high school students as well as passengers amid others in Dubai Business district. The use of the media is the most expected type of promotional strategy to be used since it covers a wider area with less human involvement hence cost effective.
Operations Plan/Organisation ChartThe business will be operated in a sole proprietorship mode but various agents will be included in the business. The business will take place in Dubai Business area as before but the expansion of the business will take place to other areas within the city. The products will mainly be given on one on one delivery while other type of deliveries will be given by our business van. The raw materials are locally obtained. The business will only take place in a two roomed apartment one room being the production room while the other the sale room and store (Michael, et al 15).
Organizational Chart
Department Head of the Department
Sale Sale manager
Production My self
Promotional Marketing director
Finance Business Accountant
Financial Projections/Income Statement
The income is one of the financial success factors of the business. With higher growth in income, the business will be able to achieve higher goal and increased the means to wealth. Financial performance of a business is evaluated by presenting a review of how the business acquires its revenues and expenses through both operating and non-operating dealing. Check appendix section for the financial projection.
Justification
There are various reasons for choosing this venture among them being that the business is unique and very flexible to start. In addition, the business is not competitive in the Dubai market as most of the people prefer ready products from supermarkets hence this offers as a competitive advantage as the products will be bought as fresh products from our stores within the town. It is expected that the business will open up ten more time in the market this financial year.
Works CitedFord, Brian R., Jay M. Bornstein, and Patrick T. Pruitt. The Ernst & Young business plan guide. John Wiley & Sons, 2010.
Legary, Andrea, et al. “BUSINESS PLAN 2010.”
Schaper, Michael, et al. “Entrepreneurship and small business.” (2010).
Stutely, Richard. The definitive business plan: the fast-track to intelligent business planning for executives and entrepreneurs. Vol. 85. Pearson Education, 2007.
AppendixStartup Expenses Amount
Facility Costs
First Month’s Rent 2500.00
Lease Deposit 3300.00
Equipment
Tenant Improvements/Construction 60000.00
Furnishings (Tables, chairs, counters) 5000.00
Scale 700.00
Refrigerator 1500.00
Water Filter 200.00
Ice Cream Machines 45000.00
Initial Inventory
Ice Cream Mix 7500.00
Milk 120.00
Flavoring 30.00
Cups 40.00
Spoons 20.00
Lids 30.00
Pumps 15.00
Cleaning Materials 60.00
Other Costs
Licenses 700.00
Insurance 600.00
Advertising 2000.00
Legal/Accounting 3000.00
Working Capital 10000.00
Total Startup Expenses 166315.00
Less: Equity of Owners 50000.00
Estimated Loan Amount 116315.00