Business Growth Strategies for Firms

This assignment delves into different avenues for expanding a firm's operations and increasing profitability. It examines the merits of joint ventures as a collaborative approach to growth and highlights the potential benefits and drawbacks of franchising. The document emphasizes the importance of strategic planning in selecting the most suitable growth strategy based on a business's specific needs and resources.

Business Plan -Ice Cream Bar in
Kensington

Table of Contents
INTRODUCTION...........................................................................................................................1
1. Outline of Business Venture...............................................................................................1
1.1 Business Type...................................................................................................................2
1.2 Business Research............................................................................................................2
2.1 Application of 4P's...........................................................................................................3
2.2 Staff of Lovin' Masqati Ice-cream Parlour.......................................................................4
2.3) Customers........................................................................................................................4
3.1 Expansion routes for Lovin' Masqati in future.................................................................5

INTRODUCTION
Business plan can be defined as documentation procedure, which is made to implement a
project. Under this plan, a company clarify its strategies, identify potential roadblocks, measure
viability of specific idea and make decisions to optimise resources for completing a project. In
order to start a business, it is essential for an entrepreneur to develop an effective plan (Chang,
2017). This report mainly discuss on necessary tools and aspects, which is required to open a
business and check its future benefits. In includes an insight of business venture, relevant
marketing model and targeted audience. For this purpose, a new business in ice-cream sector,
named by “Lovin' Masqati Ice-cream” is going to launch in Kensington, England. In order to
successfully run its business in future, further some strategies are also highlighted in this
assignment.
1. Outline of Business Venture
“Lovin' Masqati Ice-cream” offers superior quality with rich flavoured of ice-creams, on
premium price to its customers. No sugar added and sweetened ice-creams with maltitol syrups,
having low glycemic index are specialised category of this parlour. Along with this, product with
sugar alcohols and high-potency sweeteners are labelled as frozen desserts. Ice-cream business is
very unique, because of youth and child favourite dessert, when they actually look for taste
change and of-course scenario of childhood connected to ice-cream. It is highly successful,
because of increasing taste and preferences of now adult people also. No other product can beat
customer attraction to the ice-cream. The major uniqueness of ice-creams is its creamy flavour
and sweet taste.
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Unique Selling Proposition (USP): 'Enjoy a burst full of natural flavours! and 'Ice-
cream melt in your mouth not in hand!', are two fusion styles of Lovin' Masqati Ice-creams
Parlour (Chang, 2016). These two slogans are considered as perfect example of USP- to
influence and grab minds of people towards its products. It actually delivers the richness and
quality of ice-creams which helps in enhancing its sales performance. In context with “Lovin'
Masqati” unique selling point here is taste and preferences of their ice-cream whether sweet,
species or sour. USP means unique derived upon by the products.
Services:
 Free home delivery to nearby places
 Birthday parties plan
 Sugar and gluten-free ice-creams
 Ice-creams rich in sweeteners are labelled with frozen desserts
Facilities:
 Kids Zone
 Wi-Fi Connectivity
 Ambient and friendly environment
 Gaming zone
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Promotion: “Lovin' Masqati” will do promotion through giving big offers to customer including
free taste sample, so as to manage incoming for longer period of time. One one one ice challenge
is best way to increase sales or business leading.
1.1 Business Type
Lovin' Masqati Ice-cream is a sole proprietorship type of business i.e. run by single
owner. Therefore, hiring and giving employment to labours either permanent and contractual
basis, all responsibilities are taken by owner of this parlour. The major competitor of this new
coming ice-cream brand is Baskin-Robbins, who is majorly leader in the UK market with highest
customer retention. Due to no sharing of profits, overall profitability which is remained after all
operational expenses, are enjoyed by single employer only (Chambers and Humble, 2017).
1.2 Business Research
Ice-cream market at global level is constantly increasing from last decades in UK.
Through marketing research, it has evaluated that profitability earned by companies dealing in
this sector, helps in developing economy also. As ice-creams are rich with vitamins like A, B-6,
B-12, C, D, E, K and also a source of carbohydrates. Therefore, consumption of such products
also prove beneficial for people. Along with this, for launching business within Food &
Beverage, also requires less investment. This would inspires entrepreneurs to turn their ideas into
new business concept and launch business in such sector. Through survey on UK Government
Agency, it has identified that in year 2018, business in ice-cream sector has been increased to
26% as compared with 2013, i.e. near about 1.4 billion Euro (Burns and Dewhurst, 2016).
Therefore, it has predicted that due to high inflation period, it will prove beneficial for owners to
launch business in food and beverage sector. The background research shows that marketing
needs to be major preference, because of its strong nature to influence people at higher zone and
power to increase sale of product at the higher zone or condition. In marketing, sales promotion
should be done on regular basis, so as to do generate profitability to earn business effectiveness.
As people are concerned more on consuming healthy products, therefore, business in ice-
creams will gain opportunity to entrepreneurs to gain high profitability. By focusing on this
concept, owner of Lovin' Masqati Ice-cream offer a range of ice-creams products. Uniqueness of
these products are examined by its USP and nutrition oriented formulations.
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2.1 Application
In order to launch business successfully in competitive marketplace of Kensington,
entrepreneur of Lovin' Masqati Ice-cream has adopted the concept of McCarthy’s 4Ps. This
model concerns on four main areas as- Place, Products/Services, Price and Promotion. The
concept of these marketing mix elements are described as below:-
Place: For launching main branch of Lovin' Masqati Ice-cream Parlour, owner has
chosen 'Kensington High Street. The reason behind this is to reach targeted customers because
this area is considered as most busy commercial centre, having many shops and typical
marketplace. It is also known as the second best shopping street in London, where large number
of shoppers come on regular basis.
Product/Service: Owner of respective company has adopted a unique style of offering its
products. It includes categorising the products into take-home ice-creams; artisanal ice-creams
and impulse ice-creams (Rodrigues, 2015). Along with this, in each category, items are further
categorised in terms of flavour, sugar-free and size. Lovin' Masqati will offers various types of
ice-cream such as vanilla cone with little fragrance of European berries, family pack along with
couple based ice scoops. They will also provide outlet service with premium culture into the ice-
cream outlets. Products will be prepared through use of an advance technology or huge mixtures
and container to produce ice-cream on the larger basis.
Menu of Ice-cream:
Items Price (In £) Item Price
Vanilla Mustard 27 Pineapple glory 28
Chocolate Casata 34 Papaya 29
Butter scotch 27 Pine shakes 30
Mango peanuts 31 Berry cream 32
Cones
Items Price (In £) Item Price (In £)
Chocolate cones 23 Pine cones 22
Mango cones 21 Cheery cones 24
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Price: All products of Lovin' Masqati Ice-cream Parlour are offered on premium price
strategies in order to grab high attention of middle class people. Along with this, products which
are specially categorised for class-concious people, are offered on penetrating pricing strategy.
Both style of pricing help in earning high return of investment. Lovin' Masqati will use
penetration pricing through which they can acquire existing ice-cream into the market as well as
for their business at a larger context. Lovin' Masqati will follow this strategy in initial business
operation along with looking for extensive after looking at the business scenario.
Promotion: This is the most effective tool of marketing mix strategies, that aids the
recall of brand in customer-centric marketplace. Therefore, for promoting the sales and brand
equity, managers of Lovin' Masqati Ice-cream Parlour, use both advertising and direct marketing
techniques. These techniques help in creating brand awareness among people by entailing them
about richness, quality, flavour and range of ice-cream products. To attractive more customer's,
this Lovin' Masqati must prefers taste round to let customer's be free to taste ice-cream, so as to
know their suitable taste and attract to sell them on the higher basis. Lovin' Masqati will use
social media strategy such as use of Facebook, Twitter, Instagram etc., to promote product at a
greater and optimised stage to led bring customer's. Local hoardings and advertising through
radio station will also be undertaken to enhance higher and increased sales over the period of
time.
2.2 Staff of Lovin' Masqati Ice-cream Parlour
Lovin' Masqati Ice-cream Parlour give employment to 5 employees only in initial stage,
where one is a manager, 2 are fixed workers and remaining 2 on zero hour contract basis.
Role of Manager
Manager of Lovin' Masqati Ice-cream Parlour takes entire responsibility to launch and
run business smoothly. It includes taking decisions related to anticipate demand of customers,
exceed their level of satisfaction and retain them for longer period. Manager must ensure that
staff members work appropriately to deliver services to customers on time.
Role of Staff members
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It is duty of staff to anticipate demand of customers on time and provide best services to
them. In addition to this, they must welcome customers in stores with smile and pleasant
personalities as well as interact in polite manner.
Zero Hour Contract
It is an agreement where, employers and employees sign a bond to work for a limited
period of time and follow undersigned terms and conditions. Whenever company calls workers
on any time, they have to work without any resistance.
Advantages of Zero hour contract workers:
 Through hiring of such workers, Lovin' Masqati avoid the unforeseen situations such as
flux in demand, seasonal work or other kind of casualties.
 Along with this, wages will relatively lesser than permanent workers (Baliga, 2016).
 In future, Lovin' Masqati do not need to pay zero contract worker, when owner doesn't
needs them.
Disadvantages of the zero hour contract worker:
 This can be major limitation for Lovin' Masqati that they cannot hire zero hour contract
based workers on the regular employment, because of contract states this procedure or
laws.
 In case of business hour, they cannot hire these employee's because of its regulations.
2.3) Customers
Target audience of Lovin' Masqati is young, kids and people till age group of 35 years
This is ultimately because of the craze which was getting observed in this defined customer
segment towards ice creams. Therefore, customer segmentation will be done on the scope of
demographics, in particular, the age level, would be strategically preferred to raise the sales and
profitability of this growing ice-cream business within an entire UK. Hence, the customer
response for Lovin' Masqati has been chosen to be encouraged people who belongs to an age
group 4 to 35 years (Ambat and et. al., 2017). It would led assistance to Lovin' Masqati to gain
high stake-holding in the city of Kensington, United Kingdom and also would facilitation on the
growth of business in coming future. Lovin' Masqati needs to have an appropriate support of
social economy, through which they can create more base for the customer's as well as led
business regulation. They can offers the ice-cream product, after understanding of social scenario
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connected to particular taste & preferences of the ice-cream products. Major customer will be
both level of customer including upper and middle class to enhance sales.
Further expansion will be done on basis of time, in which minimum of 6 months will be
taken and cost budget of 55000 pounds. Here, the major focus is on ascertaining customer such
as kids and customer till age group of 26. Lovin' Masqati will majorly focus on social economic
groups of people with income level of buying Lovin' Masqati ice-creams and its cones. There
ice-cream will be easily affordable for every age customer's.
3.1 Expansion routes for Lovin' Masqati in future
Real targets of this upcoming ice-cream business is to enhanced its business regulations
in the coming future. Global and universal expansion has played the necessary roles for major to
growth of any business enterprises into the current business and competitive environment. In
context with Lovin' Masqati, this upcoming ice-cream business would expand their business
operation, once they would became more successful, in such a way to raise an actual base of
prospective customers and also to reach-out huge number of person for becoming the growing
leader into the ice cream industry. Expansion of this business in future would assists them to
raise size as well as scale of a ice-cream on geographic level. Lovin' Masqati has recently
planned to enhance its business operation, in such a way that their sales and profits would get
risen.
Expansion routes of the Lovin' Masqati is an opening of two or more outlets in the city of
London, this is because of initial period in opening of the venture and also because of less
capital, it will be suitable to operate the business on domestic basis, but after one year Lovin'
Masqati can think for going to high platform to operate or start their business. To open more
outlets, Lovin' Masqati can prefers the joint venture process to do strategic alliance with other
local ice-cream vendors to get easy facilitation of the outlets infrastructure in order to save cost
and high time for business effectiveness.
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CONCLUSION
From the above report, it has been concluded that business plan is required to be in
accordance with desired business situation, where opening new business outlets or making
changes in the existing ones. Targeting the suitable customer is necessary for business entities to
raise market share and enhance the increased profitability for the business units. Joint venture
has been termed as important to rise business at the greater level. Franchising could also be
suitable option to raise business operation, but it is very costly, source because of higher cost of
the infrastructure and led effective supply chain as well as logistics for any business firms.
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Online
Focus on Ice Cream. 2019. [Online]. Available Through:
<https://www.thegrocer.co.uk/reports/features-list/focus-on-ice-cream-3-march/
562762.article>.
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