Business Plan Template for AJ Supermarket

This business plan template introduces AJ Supermarket, a grocery-based business in the UK. It includes market opportunity, industry analysis, operations and management team, marketing strategy, financials, and references.

BUSINESS PLAN TEMPLATE: THIS TEMPLATE MUST BE USED FOR THE ASSESSMENT. YOU MAY INCLUDE PICTURES TO
IMPROVE THE PROFESSIONALISM OF YOUR WORK
BUSINESS DESCRIPTION / MARKET OPPORTUNITY
The new venture that is introduced in this report is AJ Supermarket which is a grocery based business that will deal in
several parts of United Kingdom. This business venture will provide products along with the services in order to ensure
that they acquire more and more customers in the market. Further the major focus of the business is on the services
that they provide to the customer who are looking for the grocery products (Aithal, 2017). As most of the products are
acquired and placed in the stores are from other brands and hence the major focus of the business is to provide the
best services to the customers and that too at the best price possible. FMCG has been one of those sector that is
essential even in the times like Covid-19 and providing the best services in these times is essential. Due to covid-19, the
shift of the offline world to the online world has been a major thing and therefore taking orders of groceries online and
further delivering them at home is one of the major field in which the business wants to establish its operations.
INDUSTRY ANALYSIS
Threat of new entry
The field of supermarket is one of the common field due to which the restrictions to enter in this market is less and
hence the threat of new entrants in the market is high. Offering services and products related to the grocery is easy and
hence more and more people are looking to enter in this market (Jena, 2020). The high threat of new entrants in this
industry is one of the major challenge and hence the business is required to come up with more enhanced techniques
so that they can effectively sustain in the environment even if there are high entrants in the market.
Threat of substitutes
The substitutes of the services and products offered by AJ supermarket is high as there are several industries in the market that
offer the same set of services and products. Grocery is one of those areas in which the products has high number of substitutes
which gives the customers several options from which they can select. The high number of substitute is one of the major
challenge as the customer will shift to another set of products if the business is unable to offer the customers what they need.

Bargaining power of customers
The customers in the grocery industry has high bargaining power as there are several industries in the market who
offers same type of services and hence if the AJ Supermarket is unable to offer the right price and quality to the
customers then they will shift to other company in the market (Ferreira Gregorio, Pié and Terceño, 2018). Hence the business
must follow the standard quality, prices and the demands of the customers as they hold high power and if the business
is unable to fulfil the demands then the organisation won’t be able to sustain in the market. The organisation won’t be
able to acquire more customers as they are not flexible with the demands that the customer has. Therefore, AJ
Supermarket has high bargaining power of customers and they need to maintain the demands of the customers in the
business.
Bargaining power of suppliers
Suppliers of the industry refers to the firms that give the organisation the required raw materials and products that they
will use in offering the customers with the end products. The bargaining power of the suppliers is moderate as the
brands which has fixed set of rates will not be adjusting according to the organisation (Sestino and et. al., 2020). The
regular suppliers of the raw materials will have low bargaining power as there are several people in the environment
which generates a competition between them and gives the organisation several options to choose from.
Competitive Rivalry: who are your main competitors and how can you differentiate yourself from them
Name of
competitor
Differentiation
Tesco Due to growing network of Tesco, the debt on the company has increased and this is one of their
biggest weakness. On the other hand, AJ Supermarkets has less amount of debt on them.
Sainsbury Sainsbury faces a lot of threat due to the switch of customers from their brand to another retailer. AJ
Supermarket is looking for making such presence that their services and products are best in the
market.
Asda Limited global presence is one of the major area in which Asda lacks, AJ Supermarket’s plan is to
expand their operations across the global market in the next coming years.

OPERATIONS AND MANAGEMENT TEAM
OPERATIONS
The operations that are carried out in AJ Supermarkets is mostly on the services as most of the products are taken from
other suppliers and brands at a wholesale price and then sold in the Offline and online stores of AJ Supermarkets. They
acquire most of the products from the well reputed brands which customers like to use in their day-to-day life. Further
they provide the services of selling the products to the customers through the offline and online channels (Norris and
Ciesielska, 2019). Through online channel the company offers the products through their website where the customers
can place their grocery orders which they want to purchase. Further they provide the home delivery services to the
customers in which they charge a very minimal amount of delivery. The purchased grocery is delivered at the house of
the customers. Further AJ Supermarkets is setting up more than 10 stores across UK in which they will cover all the
major cities in which growth prospects for the company are more. The stores are established in such a way in which
they attract the customers through different sets of techniques such as discounts and other marketing techniques. The
company will provide all the major grocery items in their stores that currently the other competitors are offering in the
market, they have further contacted with all the major suppliers in the market so that they can offer the best prices to
the customers along with the good quality. The management team of AJ Supermarkets need to ensure that they are able
to well manage their offline stores so that the customers can have a smooth experience while purchasing grocery.
Further they have employed people in the stores to assist the customers so that they can easily purchase their grocery

without any problem. The stores of AJ Supermarkets are well established in such a manner that the department of every
grocery is categorized according to the type of the products.
How would you generate revenue for your business?
The major source of revenue in the company is through the grocery products and services that are offered by the
company in their online and offline stores. The aim of the organisation is to maximize the revenue by setting up more
and more stores across the country. Further this will help them in acquiring more customers and getting a competitive
edge in the market. The online delivery of grocery is another service that will help the organisation in acquiring new
customers as in the post-covid era most of the people are shifting from offline purchasing to the online purchasing
(Yablonsky, 2018). The company can avoid losses in the organisation by applying strategies that are useful in
implementing the plan that is made for maximizing the revenue in the business.
MANAGEMENT TEAM
Name Skills What do they bring to the firm
xyz Interpersonal skills The increase the interaction between the
different levels of management
abc Problem solving skills They help in dealing with different types
of situation that arise during managing
the workforce and operations in the
company.
qwe Decision making skills They help in choosing the best method
among different situations and
alternatives so that the organisation can
deliver the best results.
rty Strategic planning skills They help in planning the operations so
that the desired objective of the firm can
be achieved.

MARKETING: The Four P’s must be used to describe your marketing strategy
Product:
The main products offered by AJ Supermarkets is purchased from the wholesaler and sold at a retail price in their offline stores and online
stores. They have acquired all the major suppliers in UK that provide the day-to –day grocery needs of an average UK family. They provide
the delivery services along with the products so that they can increase the customer experience and retain the customers in the
organisation. They offer the best quality of services and products so that they can meet the grocery demand of every customer that is
currently purchasing their grocery items from the competitors.
Price:
The price of the products that will be offered in the business are based on the prices at which the company will get the whole sale price
from the suppliers. Further the price of the products and services that are offered by the company in the market is set low so that they
can compete with the current market players and attract customers in the business with their price strategies. Price is one of the major
factor on which the customers decide the company from which they will buy their products. The majority of the business units across the
country follows the price strategy in which they lower the price and attract the customers (Tseng, Yi and Yeh, 2019).
Promotional Mix:
The promotion of the new brand in the business is developing an image of the product from the very initial moment at which the product is
being launched in the market. The company must promote their products and services in the market in such a way that they can attract
more customers in the organisation. AJ Supermarkets will promote their products through different means such as social media,
advertisement and brand endorsement so that they can reach majority of the population living in the cities in which the company has
established their stores.
Place (Distribution strategy):
AJ Supermarkets has adopted to a distribution strategy in which they will provide the products and services to the customers in both
offline and online manner. The company has set up 10 stores across the country at major locations so that they can distribute the
products and services to every customer easily without any problem. Further they have expanded their operations in the home delivery
sector as well so that the customers can buy the grocery from the ease of their home (Abusweilem and Abualoush, 2019).
FINANCIALS
Sources of funds: where would you be getting funds from?

The organisation is aiming to raise most of its funds from the investors in which all the board members of the business will be contributing in
the funds. Further the second source of fund generation is debentures that the company will be issuing in the market, other than this AJ
Supermarkets will also raise funds from the other debt instruments.
Use of funds
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6
Revenue (from
your operations
and marketing
section)
€5,000,000 €4,500,000 €3,330,000 €4,440,000 €8,000,000 €9,520,000
Fixed Costs €3,000,000 €3,000,000 €3,000,000 €3,000,000 €3,000,000 €3,000,000
Variable Costs €1,000,000 €800,000 €900,000 €800,000 €700,000 €650,000
Profit €1,000,000 €700,000 (€570,000) €644,000 €4,300,000 €5,870,000

REFERENCES (AT LEAST TEN REFERENCES)
Abusweilem, M. and Abualoush, S., 2019. The impact of knowledge management process and business intelligence on organizational
performance. Management Science Letters, 9(12), pp.2143-2156.
Aithal, P.S., 2017. Industry Analysis–The First Step in Business Management Scholarly Research. International Journal of Case Studies in
Business, IT and Education (IJCSBE), 1(1), pp.1-13.
Ferreira Gregorio, V., Pié, L. and Terceño, A., 2018. A systematic literature review of bio, green and circular economy trends in publications in
the field of economics and business management. Sustainability, 10(11), p.4232.
Ghouri, A.M. and et. al., 2020. Enhancing business performance through green human resource management practices: an empirical evidence
from Malaysian manufacturing industry. International Journal of productivity and Performance management.
Haldorai, A., Ramu, A. and Murugan, S., 2018. Social Aware Cognitive Radio Networks: Effectiveness of Social Networks as a Strategic Tool for
Organizational Business Management. In Social network analytics for contemporary business organizations (pp. 188-202). IGI Global.
Jena, R.K., 2020. Measuring the impact of business management Student's attitude towards entrepreneurship education on entrepreneurial
intention: A case study. Computers in Human Behavior, 107, p.106275.
Norris, D. and Ciesielska, M., 2019. Towards a framework for innovation orientation within business and management studies: A systematic
review and paths for future research. Journal of Organizational Change Management.
Sestino, A. and et. al., 2020. Internet of Things and Big Data as enablers for business digitalization strategies. Technovation, p.102173.
Tseng, H., Yi, X. and Yeh, H.T., 2019. Learning-related soft skills among online business students in higher education: Grade level and
managerial role differences in self-regulation, motivation, and social skill. Computers in Human Behavior, 95, pp.179-186.

Yablonsky, S., 2018. A multidimensional framework for digital platform innovation and management: from business to technological
platforms. Systems Research and Behavioral Science, 35(4), pp.485-501.
Yablonsky, S., 2018. A multidimensional framework for digital platform innovation and management: from business to technological platforms.
Systems Research and Behavioral Science, 35(4), pp.485-501.
(Yablonsky, 2018)