Business Plan for Food Manufacturing and Retail in the UK Market

This report presents a comprehensive business plan for a food manufacturing and retail enterprise targeting the UK market. It begins with an introduction outlining the business's objectives, which include providing a range of consumer and basic goods under one roof, emphasizing organic and natural products. The plan details the business's operational aspects, including a financial plan with startup costs and break-even analysis, alongside a marketing strategy focusing on demographic segmentation and mass marketing. External factors are analyzed using PESTLE and Porter's Five Forces models, while internal factors are evaluated through a SWOT analysis. The report also covers pricing strategies and targeting strategies to ensure profitability and market penetration. The business aims to leverage digital services, such as online ordering and home delivery, to cater to consumer convenience and evolving market demands. The plan concludes by summarizing key findings and the strategic importance of each analysis in driving business growth and competitiveness within the UK's food retail sector.

BUSINESS PLAN

Contents
BUSINESS PLAN.......................................................................................................................................1
INTRODUCTION.......................................................................................................................................3
Business details:......................................................................................................................................3
Economic overview:....................................................................................................................................4
Pestle analysis:........................................................................................................................................4
Porters five forces model:........................................................................................................................5
Swot analysis:..........................................................................................................................................6
Marketing strategy...................................................................................................................................6
Targeting strategies:................................................................................................................................7
Pricing strategy:.......................................................................................................................................8
Finance plan................................................................................................................................................8
CONCLUSION:..........................................................................................................................................9
REFRENCES................................................................................................................................................11
Books and journals:...............................................................................................................................11

INTRODUCTION
A business needs a plan to develop and start a new venture, for provide product or services in
order to gain profit. It includes Planning of what to produce and organizing or managing the
resources. Also control and monitoring on performance is also a vital part to grow business. This
report is going to formulate a plan for business for food manufacturing and retail industry By
analyzing its internal and external factors which can affect its operations and management. Also
various marketing strategies to analyses appropriate segments and reach to large number of
customers. These topics will cover the facts and needs of customers and how a business owner
could effectively achieve it (Ashtekar, and Madhoor, 2017).
Business details:
The business is chosen for this report, is of manufacturing and retail food industry going
to establish among UK, market which is going to provide various consumer and basic goods
with the aim to retail under one roof. The requirement of its fund is upto 2200000 of capital also,
funds from outside sources will be needed. These include groceries, day to day household
products at Uk market.
In Uk, the consumer wants daily needed product at their convenient footsteps with low
price and good quality. Also, consumers are concerned about their health and sanitization which
make them consume more of organic and natural product. This business is planning to operate
and grow in every state of UK by opening each outlet in each state. And a digital online service
facility would be regulate. This will solve the problem of inconvenience to customers by
providing home delivery services and pre online bookings for takeaway. The main criteria
behind the business are their customers. Prioritize their demands and performance as per their
requirement. These needs can be better fulfill by engaging innovative strategy and ideas into
workplace and technologies also enhance(Tutor, 2019.
Economic overview:
Pestle analysis:
Pestle is a tool which help in analyse the impacts upon a business by external factors and
every firm needs to take these elements into consideration before planning strategies. The factors
are listed below:

Political: This factor includes government interference in business expansion by way of
taxation, fiscal policies, subsidies etc. In order to grow retail outlet government taxes has
increased the custom duty and prohibition on import and export goods due to which a retail firm
could cover only local market for its expansion ( Bestari, 2018).
Economical: Under this factor, economic terms has been focused, so that countries
economy would not suffer with the performance of any firm. It includes demand and supply,
interest rates, inflation. To neglect this factor the retail firm has to produce sufficient quantity
with less pricing policy.
Social: this factor influence on the social aspects in which a firm rendering its products.
In includes age, gender, consumer demand, income. It is significant for a new venture or an
exciting one to operate produce taking view to every indifferent individual. High standard
products and average affordable goods both needs to be serve to maintain social equality.
Technological: this factor provoke an organisation to look forward for new techniques in
their production or promotion. The retail firm must use digital services for customer convenience
by using mobile free app to oder and pay easily.
Legal: this factor influence through legal laws and acts due to which an enterprise forced
to obey the provisions to survive in the market (Fairchild, 2017). UK government imposed
employee welfare act under which every employee in entitled to get minimum wage salary.
Environmental : this factor put highlight on environmental crises through manufacturing
causes pollution or global warming. The retail firm must have to adopt such mechanism which
provide eco- friendly output with the help of natural products.
Porters five forces model:
This model is one of the best framework to analysis existing competition into industry
and firms. Through which, a firm being aware about its competency and future risks which
creates barrier in organisations productivity.
 Bargain power of suppliers: it shows the possibilities of suppliers to charge high
prices from their customers because of their existing relations. This impacts on firms cost
which leads to high selling price. In retail industry, their is low bargain power of supplier

because of large number suppliers presented in the market. Through which a retail firm
could enjoy accuracy and effectiveness in their raw materials ( Fund, 2017).
 Bargaining power of buyers: this factor shows how often customers shift their demand
to other firms. As retail industry have severe cause of high bargaining power because of
high competition in the market. Consumers could easily find available substitutes. The
main competitors or retail firm are Tesco, Asda, sainsubry's these firms provide the same
products at good quality consumer can shift easily to their products.
 Rivalry competition: this shows the impact of competition into the same market. Rivals
are pre ready to face challenges and step back their similar firms in front of them. Tesco,
sanisbury, s Asda these main rivals have effective technique and unique product line
which make their customers retention )(Κοτζιάπασιης, 2018). Apart from this, they have
their weakness. These firms have to maintain their prices high because of its brand name
and goodwill which make the consumer in greed to move on cheap products. So that a
new retail firm could grab this opportunity in effective manner.
 Threats: threats defines the fear of substitutes which are available in the country at every
location. Firms have large substitutes have high power of threat. Retail industry has the
large substitutes across the market, which make it think to make products of their own
brand by using adverse raw materials (Jinnan, 2019).
Swot analysis:
It is a tool which analysis and focus on internal factor which easily go through about
business strength and weakness also, relevant opportunities and analyzing the threat.
Strength: This factor shows the plus point of business which make it unique from their rivals.
The chosen retail business has planning to sell perishable goods and produce them with high
organic product with attractive packaging. Their rival first do not use organic products with good
flavor. Which is a strength point.

Weaknesses: This shows the lack of operation of the respective firm. The retail firm could not
charge low prices because of their quality and organic natural product which require material
cost ( Louhaichi, 2018).
This can be a advantage for rival firms.
Opportunities: There are ample of opportunities into the leading market such as digital
promotion selling, focus on local market because of export abundance. Various government
subsidies and exemption over technical policies for new startup also, grant loans from
government institution are now more easier in order to increase cash flow into the economy.
Threat: Threats are the changes which has heavy impact on business. The retail industry has
threat of less sales due to covid-19. For which they have to provide contact free delivery at
customer doorsteps with proper sanitization and right delivery person.
Marketing strategy
The market is categorized into different market segments which describe the buyers behaviour,
Age, gender and other factors. This help in to know about customers need from the business
(Mariani, Morelli, and Bartoloni, 2019).
There are mainly four market segment which are discussed below:
 Demographic: this shows economic buying power of customers and their behaviour that
impact on their purchasing power. This Factor includes age, education, income level of
particular economy. these functions make them think before buying any product.
 Geographical: this factor creates influence on the country in which a business is
operating. Or the natural phenomenon such as climate and whether in order to choose
suitable production climate for a particular business. It also consider rural and urban
areas.
 Psychographic: this factor shows and highlight on people attitudes towards a product or
their own culture beliefs, personality traits and values, lifestyle they are following for
buying the product. The business would focus on more of quality product fir this context.
 Behaviour: this factor shows people habits of buying, their standard of living which only
believe in brands and names rather than local stores. This is said to be status symbol that

has to be maintain by the business firm. Large firms could target the customer who have
high standard of living and medium firms could target the one who has shown interest at
their stores of websites (Phi, 2020). The new retail firm would choose demographic
factor to target the market. So that, the firm could contribute towards every customers
needs whether they living good lifestyle of middle lifestyle. They produce in such a way
that no customer will left with empty hands.
Targeting strategies:
 Mass marketing: This strategy of marketing focusing on reaching large number of
person with the same way and target without making any segmentation. Mass marketing
strategy leads an organization to reach all the area whether it is demographic,
psychographic. Any age group or income level are included in this marketing so that
organization would no left with any customer reach.
 Differentiated marketing: This strategy involves the to target different market from
different output which require more control over the operations and accountability needs
to be enhance as it is a quite complex process (Suryatno, and Soegoto, 2018). First a
business need to be much flexible and well settled into the market so that, it could think
of their diversification and different products.
 Niche marketing: This strategy only focus on single or less market segment. Due to
which they only focus on particular customers at particular location. This strategy is
beneficial for the business who aims to operate at lower level.
The retail firm is going to choose mass marketing strategy so that, every customer would
aware about their unique product and services. The aim of the retail firm is to scattered in all the
units of UK t expand its business and brand. These strategy will ensure goodwill and image into
the market.
Pricing strategy:
This strategy is a well known as well as essential for a business firm to get cost
minimization and profit maximization. For which there are various pricing strategy from which
penetration pricing strategy is adopted by various business but could not successfully operated

because of their high cost and expenses (Truong, 2018). But it is the best one for a retail
industry. This strategy focus on low pricing for large customers to rapid growth of sales and
turnover. People only want worth satisfaction from the product they desires to buy so that they
could think about buying it again. This strategy focus on consumer comeback into an
organization due to less price and more satisfaction policy. Because of this pricing strategy
people happily shift their demand from other brand to the retail firm.
Finance plan
Startup costs
Working capital
Office supplies
Building repair equipment
Electrical repairs
Machinery
Tools
Security systems
Solar system
Project management cost
HV AC installation
Selling cost
Employee salary
Furniture
Computers
Total cost
Price
100000
10000
20000
20000
500000
100000
30000
50000
10000
20000
100000
200000
500000
500000
2120000
Selling price differs due to different goods.
Break even analysis

particular Price
Selling unit 100000
Selling price per unit 10
Variable cost per unit 10
Fixed cost 50000
Break even point calculation
Selling price 10
Variable cost 10
Contribution per unit 10
Brak even quantity 5000
CONCLUSION:
From the above business plan, these analyses are immensely useful and essential to look
forward for business growth. Through analyzing business tools like pestle, porters, SWOT it has
been clear to what factors are in need to be taken into consideration while operating business,
and which shows the competitive edge into the market. Also, financial plan shows the actual cost
a business need to require. The chosen marketing and pricing strategy would prove to be correct
and help in reach to the large market. This business plan has shown all the essential elements to
make it successful.

REFRENCES
Books and journals:
Ashtekar, A. and Madhoor, N., 2017. Industry & developing a business plan.
Bestari, N.P.F.W., 2018. BUSINESS PLAN FOR EXPANSION OF
“LILIUM_BNGFLORIST (Doctoral dissertation, President University).
Fairchild, J., 2017. DEVELOPING A BUSINESS PLAN. Handbook of Private Practice: Keys to
Success for Mental Health Practitioners.
Fund, N.I.P., 2017. Business Plan 2017-2018.
Jinnan, L., 2019. A business plan: TCM health-preservation club (Doctoral dissertation).
Louhaichi, M., 2018. Survey design, data management and analysis, and business plan
development training report.
Mariani, G., Morelli, D. and Bartoloni, L., 2019. Managing uncertainty in the start-up
environment. Is a business plan an incentive or a limitation?. Management Control.
Phi, T.V., 2020. BUSINESS PLAN FOR AN ACCOMMODATION COMPANY IN
HELSINKI.
Suryatno, W.S. and Soegoto, H.S., 2018, November. Business Plan Analysis of Housing
Company in Bandung. In International Conference on Business, Economic, Social Science and
Humanities (ICOBEST 2018). Atlantis Press.
Truong, K., 2018. Business plan for an online marketplace company.
Tutor, M.A., 2019. Sustainable business plan. Governance. 8(12). pp.100-000.
Κοτζιάπασιης, Χ., 2018. Business management/Business plan for companies.