Business Plan for Sugar-Free Chocolate Manufacturing Unit

The report discusses a business plan for setting up a manufacturing unit of sugar-free chocolate. It includes market analysis, SWOT analysis, and financial requirements.

Business Plan

EXECUTIVE SUMMARY
The report discusses about a business plan. The idea is to set up a manufacturing unit of
chocolate. The chocolates which will be produce by the company will be totally sugar free and it
also will contains the ingredients which will provide protein and fibre to the eater. The concept is
quite new as the company would be targeting the people who does not consume any sugar and
prefer to take the fibre and protein fully eating materials. The report has provided the market
analyses, SWOT, PESTEL and the so on. From these analyses it has been observed that the plan
is very good to execute and has the ability to gain success if everything goes as planned.

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................4
TASK...............................................................................................................................................4
The Business Details...................................................................................................................4
Macro Environment Overview....................................................................................................5
Market and industry analysis .....................................................................................................6
Competitor analysis.....................................................................................................................7
Marketing & Pricing Strategies...................................................................................................7
Operations Plan...........................................................................................................................8
SWOT Analysis..........................................................................................................................8
Financial requirements................................................................................................................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10
.........................................................................................................................................................1

INTRODUCTION
Business plan is the layout in which the entrepreneur set the business activities which it
going to undertake. In the business plan the resources which will be needing are stated along
with the total finances required. Apart from this it contains the major idea upon which the
individual is planning to start his business. The report discusses about a business plan upon an
idea of opening up the manufacturing unit of chocolate. The company would be producing the
chocolates which will be sugar free and also will full of protein. To carry out this idea further
and to convert this into reality, various analyses about the industry and the external market has
been performed. The models like pestel, SWOT, competition analyses and etc. has been
performed for the formation of business plan. Apart from this the report also includes the
marketing strategies and the financial requirements and plan which the business would going to
carry out for the business.
TASK
The Business Details
The business is to establish a manufacturing unit of chocolate. The product which the
company would be offering will be different form the available products. The product, chocolate,
will be sugar free and contain the ingredients which will provide the eater with high level of fibre
and protein. The business will directly target the people who does not consume much of the
sugar and also they are very much conscious about their eating habits. The plan is to establish the
manufacturing unit in the industrial area of London (Che Rusli, 2020). Setting the unit around
the city will help the business in taking care of many factors like transportation, availability of
raw materials and labours, proper supply of products in the market and much more.
Before carrying forward to this idea, a research had performed by the owner about the
eating habits and preferences of consumers. From that research it was concluded that the eating
habits and preferences of the consumers are changing. Earlier the consumers does not pay much
consciousness about the food they are taking in. The people are now have become more
conscious about the eating habits, they prefer to eat the food which is healthy and does not give
them fat. Therefore, to gain this opportunity, the idea of establishing the chocolate unit has been
generated. The product will satisfies the need of those customers who eat less or no sugar and
prefer to take in the healthy ingredients (Filloy Anè, 2020). The consciousness among the

consumers to take the healthy and safe food is getting to an increase therefore the idea of sugar
free healthy chocolates is good by reviewing upon the current and future market scenario.
Macro Environment Overview
The Macro Environment can be analysed through the PESTEL analyses. The pestel
analyses of this business can be as:
Political: As the manufacturing unit is establish in UK where the governmental policies and
regulations are very stable, this will benefit the company stability in state rules and regulations
brings the stability in the operations of business or manufacturing unit. Otherwise the
organisation major focus would be on moulding their operational or management activities in
accordance with the changing government rules. Apart from this the state to encourage the new
industries provide some rebates and subsidiaries with regard to trade, taxation and also in
providing the raw materials. This factor will benefit the organisation in pursuing for the idea.
Economical: The economic situation and condition of UK state of very good. The people living
their have the high disposable income also. Therefore they have the ability to purchase this sugar
free chocolate. Although the prices set for the product will be affordable.
Social: The people of the UK is becoming very much conscious about their eating habits. They
are consuming the food which are less in sugar and are also healthy to their body. To grab this
opportunity the organisation has come up with this sugar free chocolate product. This product
has the capacity satisfy the needs and preferences of the customers (Guzairy, Mohamad and
Yunus, 2018).
Technology: The business would be using the advanced machines which have the ability to
produce high units of products in a lower cost. By adopting this technology the company would
be able to achieve effectiveness and efficiency in their work. Apart from this all the information
and the data about the company's operational and management activities will be saved at a single
platform. This will help the business in taking the decision in an effective manner.
Environmental factor: The manufacturing unit would be following all the environment related
rules and regulations. The technology that they will going to adopt would help in producing no
or minimum percentage of carbon emission in the environment. Apart from this the company
will not be using any plastic material in their manufacturing unit or process. All the material used
will be sustainable in their nature (MANSIMOV, 2018).

Legal: The organisation would following the legal rules and regulation. This will help the
company to gain the confidence of customers and also of the government.
Market and industry analysis
The industry analyses can be performed through the use of a model called porter's five force
model. The application of this model on this business idea can be as:
Threat of entry: The barrier of entrance and exit in this industry is very minimum, an
organisation before starting up the business operation in this field just have to complete some of
the basic legal formalities. As the industry has less degree of barrier, the number of organisation
operating in this market will be high. As in the case with Chocolate manufacturing unit the
number of organisation which is operating at this field will be high therefore creating a threat for
this business plan.
Number of competitors: The number of competitors operating in this industry is very
high because of the minimum degree of barrier available in this industry. Through this factor, the
burden could get created upon the company as they have to bring new and innovative product
within a frequent time period so to gain the competitive advantage in the market.
Threat of substitute: The threat of substitute in this industry is very high as there are
number of companies are running which manufactures the sugar free chocolates and the protein
bars. Therefore to overcome with this problem the company has to bring new types of chocolates
in the market with the same concept only (Stankov, Stojaković and Vapa-Tankosić, 2016). For
example they can come up with chocolate which is fat or carbo free. They have also
manufactures the chocolate which is full of protein and has the ability to provide the instant
energy.
Bargaining power of suppliers: The bargaining power of suppliers is very low in this
industry. As this business plan has a lot of suppliers which can provide the raw materials to the
organisation they have the opportunity to choose that supplier from the lot which can provide the
materials at a lower cost possible.
Bargaining power of customers: The bargaining power of customers is very high in this
industry. As the customers have more option from where they can purchase the same product
which is having the same features in a lower cost, they will surly shift their purchase to another
brand. Therefore to maintain the current customers the organisation has to come up with the new
products frequently.

Competitor analysis
The competitors analyses of this business plan can be as follows:
Brand Speciality
HU Chocolate bars The brand manufactures the organic chocolate
to the customers. The sweet which is added to
the chocolates is through the organic coconut
sugar.
Lakanto Chocolate Bar The company provides the chocolate which
adds the sweet from monk fruits.
Andy Anand Sugar Free Dark Chocolate
Almond Bark
The company provides the organic sugar free
chocolate to the customers. This chocolates is
most preferred by the customers among the
lot.
To gain the confidence of the customers in the market place, the company has to bring
the competitive advantage and they can do so through putting the prices of the products at an
affordable price and also to maintain the high quality of the products i.e. chocolates bars.
Marketing & Pricing Strategies
For marketing purpose the whole market will be divided into segments on the following
basis:
Demographic bases: In this the market get grouped on the basis of income, gender, age lifestyle
and so on.
Geographic bases: In this type of segmentation, the market is grouped on the bases of
geographical boundaries.
Behavioural bases: In this type of market segmentation, the market is divided on the bases of
behaviours of the customers. Like their perspective towards the spending the money, shopping
and etc.
Psychological bases: In this type of market segmentation, the market is divided on the bases of
personality traits, life goals, habits and so on (Tran, 2020).

This business idea will be segmenting the market on the basis of psychological and
behavioural factor. The people have the psychology of eating healthy and safe food with adds to
their health. Therefore the segmentation of market will be performed in the bases of these two
factors.
The business will target the audience through the use of competitive pricing strategy in which the
price set by the company for the product will be affordable, the differentiation strategy by
offering different and innovative features to the product and the market expansion in which the
organisation will with the time try to expand their business in the region where it has not step in
yet.
Pricing strategy used by the company
The company would be using the Penetration pricing strategy in which the cost or the
price of the product will be low as compared to the other competitor products.
Operations Plan
The business has planned to adopt the latest technologies in their manufacturing unit
which can help them in producing the maximum units in the minimum cost possible. The whole
operations will be done digitally. The data will be stored at a particular server so that the decision
could be formed by reviewing all these data.
SWOT Analysis
Strength
The product is different in its quality and
features.
The price being set is affordable that will attract
the consumers.
Weakness
 The Brand is new it is threatened by
various competitors.
 The return on investment is feared as the
new business return includes returns
slowly.
Opportunity
 The new brand with its feature will lure
the customers to try the brand.
 The opportunity to integrate with other
firms is great.
Threat
 The economic environment is fluctuating
based on that it will affect the demand of
product.
 The consumers may be resistant to try
new brand.

 With Pandemic the consumption patterns
of people changed largely and this may
impact negatively the brand.
Financial requirements
The business is planning to allocate the finances by taking the loan from bank and also by
using some of the percentage of saving. So the finances will be arranged from the personal
savings and also from taking the loan form bank (Wali, 2018). Although the amount which can
been taken from the bank has to get repay back to the bank with interest and the instalment will
be starting from a year.

CONCLUSION
From the report presented above, the business plan has been prepared. In this the SWOT
analyses about the idea which helped in ascertaining the internal strength and weaknesses of
businesses, the pestel analyses gives the idea about the external environment through the policies
can be formed, it also provides the operational and marketing plan to the business which helps in
defining the correct direction to this business idea.

REFERENCES
Books and Journals
Che Rusli, N. H., 2020. Fundamentals of Entrepreneurship (ENT300) Business Plan: Artisticake.
Filloy Anè, F., 2020. Business plan aran projects and renovation works “Construction
Workshop” (Bachelor's thesis, Universitat Politècnica de Catalunya).
Guzairy, M., Mohamad, N. and Yunus, A. R., 2018. Enhancing Student’s Understanding in
Entrepreneurship Through Business Plan Simulation. In MATEC Web of
Conferences(Vol. 150, p. 05091). EDP Sciences.
MANSIMOV, E., 2018. Business Plan (case study) (Doctoral dissertation, Masarykova
univerzita, Ekonomicko-správní fakulta).
Stankov, B., Stojaković, A. and Vapa-Tankosić, J., 2016. Business plan as an indicator of the
current situation and future perspectives of companies business activities. Škola biznisa.
(1). pp.102-120.
Tran, K., 2020. Establishing A Business Plan for Dog Coffee&Tea Helsinki.
Wali, A., 2018. BUSINESS PLAN OF DIGITAL SERVICES FOR RESTAURANT IN
FINLAND.

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