Comprehensive Business Plan: Allo Food Delivery Service, London

This document presents a comprehensive business plan for Allo Food, a new food delivery service based in London. It begins with an executive summary highlighting the business idea and its potential for financial gain. The plan details the business, focusing on addressing the unmet needs of employees and individuals seeking convenient food options by delivering food according to customer preferences. It includes an economic overview, considering macro-economic factors like unemployment and price levels, and market and industry analysis, identifying the target market and competitive landscape. The plan explores marketing and pricing strategies, including social media marketing and bundle pricing, and outlines the operations plan, covering kitchen equipment, delivery logistics, and legal requirements. A SWOT analysis identifies the business's strengths, weaknesses, opportunities, and threats, such as door-to-door delivery, competition from established businesses, and potential for customer relationship building. The plan also addresses financial requirements and concludes with a summary of the business's potential for success.

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BUSINESS PLAN REPORT
By (Name)
Course
Professor’s Name
City
Date

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EXECUTIVE SUMARRY
Many businesses that have turned out successful started with a simple business idea. In the
process of setting up a business, a business idea is considered as the very first milestone. A
business idea is a notion, that one can use to gain financially, that mostly revolves around a
service or a product that can be exchanged for money. A document describing the new idea is
called a business plan. It explains further about its services or products, its leadership and
staffing, and any other information that is considered important to their targeted market.

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Table of Contents
Table of Contents.............................................................................................................................3
INTRODUCTION...........................................................................................................................4
BUSSINESS DETAIL.....................................................................................................................4
ECONOMIC OVERVIEW..............................................................................................................5
MARKET AND INDUSTRY ANALYSIS.....................................................................................5
COMPETITOR ANALYSIS...........................................................................................................6
MARKETING AND PRICING STRATEGY.................................................................................7
OPERATIONS PLAN.....................................................................................................................8
SWOT ANALYSIS.........................................................................................................................8
FINANCIAL REQUIREMENTS..................................................................................................10
CONCLUSION..............................................................................................................................11
References......................................................................................................................................12

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INTRODUCTION
In our context below, we shall discuss more about the business plan and how the business will
run and its financial requirements. We shall also get to know who the competitors in the business
are, why they are selling more and what opportunities we have as a new business. Also we shall
try foreseeing the possible changes in the future and find ways by which we can survive through
the changes and still have the business going on well.
BUSSINESS DETAIL
In some organizations, employees are not offered food, those that offer do not offer the
employees’ choices. Having this in mind, Allo food will help solve this problem. This will be
possible by ensuring that customers get the food of their which will be delivered to their location.
Since it is clear that food offered in companies does not consider peoples taste, the target market
is definitely high (McKenzie 2015, p43). This means that the value gained from the service will
be a great one if their needs are fully met. Since Allo food will be a newly established company
in London, the idea is to start off with a manageable geographical area. With time the business
will grow and take over other uncovered areas with an intention to reach out to more individuals
in London. The food application delivers ordered food to the location of the customer in London.
It keeps into consideration the customer’s preferences, what they order is what we deliver. The
service offered by the food application works positively if well used by the customers. This is
because whenever a customer orders food it is delivered to them within an hour. Since the food
prices do not include transport costs, the service is relatively cheap ensuring that every customer
enjoys the service. In addition, the application allows the customers to pay for the service after
delivery and they can use their cards. This minimizes the chances of fraud associated with online
services.

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ECONOMIC OVERVIEW
The economic condition of a place can be viewed in terms of its residents’ consumption and
production of goods and services. The economic state of a region is very important since it helps
one foresee the future demands and make decisions on how far their level of production should
go. If the forecast shows that there will be a fall in the level of consumption, then it means that
the producers need to lower their level of production. For these reasons, any opportunity in
which there is a rise in consumption, the chance should be utilized to the maximum. Also, there
are various economic factors that should be considered macro-economic factors being the main
one. Macro-economic factor are conditions that come into place as a result of the economy at
large and not from just a specific population. They include the level of unemployment, national
income, price levels and growth rates among others. All these factors have a direct impact on the
business. With raised levels of unemployment, there will be less order for food since the
customers purchasing power has gone down. On the other hand, when price levels go down,
there will be more orders for food since the customers will be in a position to purchase more
expensive food with the same amount of money.

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MARKET AND INDUSTRY ANALYSIS
Getting into a business means one is ready to face challenges associated with the business. The
main challenge of a new business is competition with existing businesses. However, one can
penetrate in the market by considering customers preferences. With Allo food, the customers will
be ordering the food of their choice. This means that the gap of customer preference is settled.
Our target market is the people working in offices, those in their home with no time to prepare
meals and any other person interested in trying out new dishes. The size of the target market is
relatively high since most young people at home or offices have no time to make dishes. Also the
elderly prefer already made food since it does not require them to get in the kitchen. Therefore,
in our business, we’re not confining ourselves in any way, we are targeting both young and
elderly people as well as every citizen in London. With continuous improvement of our services,
it is expected that our business grows significantly. As stated earlier, there is a high chance of
competitiveness in the business. There are food manufacturing companies all over London that
offer quality food to the citizens. They have been in existence for a very long time and have
managed to dominate over the industry over these years. However, we still have a chance to
penetrate through the market by taking advantage of their shortcomings. There are some
characteristics associated with our business competitors. These include wide variety of food to
choose from, low prices, higher levels of responses to customers complaints and wider coverage.
However the industry is consolidated hence they help each other and grow together though at
different levels. This clearly indicates that the industry is growing with every passing day.

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COMPETITOR ANALYSIS
Competition is a sign that a certain business is worth venturing in. Our competitors in the food
industry are the restaurants, fast food cafes and all the companies that manufacture food.
However, having been in the market for a longer period, they have gained many loyal customers.
This makes it hard for them to deliver to their customers due to the large number. However, the
same business has a number of advantages such as understanding the market trends better,
having access to cheaper and quality material among others. This puts them at a better position
when making decision on what and when to offer certain dishes. Scarborough (2015 p12) states
that location of a business is the main tool to ensure its success. This is true because, our
competitors have so many factors favoring them but their location is a challenge to them. This is
due to scarcity that is in existence, where there is no space to accommodate all their customers.
We use this to our advantage in that we don’t need our customers to physically visit our place of
work but need them to access us through our food application. This means we can serve any
number of customers without any challenge of space. Regardless of having such challenges, their
location is of a significant importance. This becomes evident when they get to serve many people
that are passers-by who have no time to visit an application and order food.

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MARKETING AND PRICING STRATEGY
Marketing strategy is basically how the business intends to market its services and products
(McKenzie 2018, p80). We are coming up with various ways to market our services such as
using the social media. This is an important way to reach out to people since many people are
into internet hence accessing social media platforms such as Facebook and twitter. Additionally,
we are having a door to door form of marketing, where we visit individuals and offer them
information concerning our food application. When it comes to pricing, Allo food will use a
number of strategies to determine the prices of a product or service. As a matter of fact, pricing
of a business product or service is the most significant aspect of a marketing strategy. Our
business will use several ways to come up with prices for our services and products. One of them
is the bundle pricing we will sell multiple foods for a lower price that it would be if bought
separately. This will make a customer perceive that he is getting an irresistible value on his
money. We shall consider other pricing strategy such as penetration pricing where we will sell
our products at a cheaper price than our competitors. This will enable our product get in the
market and create consumer awareness and encourage them to try out our products. Although
this strategy can lead to losses at first, we expect that after gaining powerful market penetration,
we will raise our prices to gain a reasonable profit (Yu & Wiklund, 2015).

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OPERATIONS PLAN
Operations plan is the description on how a department, section or team will take part in ensuring
that the business achieves its targets. As Allo food, we shall be cooking food, and deliver all the
orders to those who made them. We shall therefore need kitchen equipment such as cookers and
utensils. We shall also require some other facilities like fridges and freezers to store the
perishable goods like vegetables. To deliver food, we shall have delivery guys that will be using
delivery vans and other will be using motorbikes, depending on the location of the customer.
There are legal requirements that we need to adhere to in our business. They include getting
business permits, licenses and keep in mind that we need to pay taxes. Since our business
revolves around food, our suppliers will be farmers and other people that supply farm products in
the country. However, this will be determined by how much their products are worth, in terms of
pries and quality (Brinckmann & Kim, 2015).
SWOT ANALYSIS
SWOT analysis is a research performed by organizations to understand their internal strength
and weaknesses and also find out both their opportunities as well as the threats they face in the
external environment. In our business, SWOT analysis is not different from other businesses in
our field. Firstly, our strength is that we offer door to door services by delivering products to
customers’ premises. This is an advantage since our competitors do not offer such. Also, we do
not charge our customers for the delivery, which makes us more preferred than other businesses

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(Spigel, 2017). Regardless of us having a number of strengths, we have several weaknesses
mostly associated with us being a new business. Many people prefer buying goods from their
daily sellers hence making it difficult for us to have more customers. Again, our competitors
having been in the business for a relatively longer time and therefore have access to cheaper raw
materials thus their products are cheaper than ours (Schaper, Volery, Weber & Gibson, 2014).
This leads to many people opting to go for the cheaper products. However, there are several
opportunities associated with Allo food. For example by us delivering our products to customers
freely is great opportunity to establish a good relationship with our customers so that they can
trust us and our products (Ward, 2016).Therefore, we ensure that the few customers that are
buying our products get the best services and within the shortest period possible. Another
opportunity is through our marketing strategy where we get a chance to interact with our
customers, listen to their opinions and suggestions as well as the complaints about our
competitors. We then solve those complains before our competitors do and this keeps us at a
higher chance of growing regardless of the great competition we are facing. However, there are
some few changes in the future that seem to be great threat to our business such as higher
unemployment levels, changes in weather and low national incomes. With raise in
unemployment levels, customers will have less money to purchase our products hence lower
incomes for us. In case of weather changes, it will be difficult to get farm produce, and the few
that will be selling will raise the prices. This means that the cost of our products will be high
putting us at a risk of losing our customers (Bell, Bryman & Harley, 2018).

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FINANCIAL REQUIREMENTS
Any business idea remains just an idea as long as there are no finances. This makes finances an
important part of the journey to start a business. Financial requirements differ depending on the
type of business and the start-up cost is always the highest. For Allo food, the financial
requirements are a bit high, considering that we are starting a relatively big business. We shall
firstly require equipment such as cookers, fridges and freezers. We shall also need furniture such
as seats and tables in case we people need to eat from our restaurant or sit while waiting to get
served (Scarborough, 2016).We also need finances to set up premises from where our business
will be performing. This is in terms of offices, kitchen area and a restaurant area. Bearing in
mind that our business mainly concentrates on proving online services of delivering food, we
shall need a delivery van and some motorbikes to cover shorter distances (Smith & Viceisza,
2018). We require an opening stock of few food stuffs to start the business with. In the business
world, it is recommendable to track down your sales in order to find out whether the business is
running on a loss or profits. Cost of sales is the total costs used when producing a good or service
(McKenzie, 2017). Our total costs are the expected to be a bit low since it is just cooking and
transporting of food. Since we shall be in need of some help in the kitchen, delivering of the
products as well as in marketing department, there are salaries involved. The salaries, taxes,

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amortization and insurance are all considered as fixed costs in a business (Watson, McGowan,
Cunningham,2018). They are always constant despite the amount of goods produced. Running
cost on the other hand the amount spent regularly while running a business. They include fuel
costs, lighting costs as well as cost of purchasing materials for the business. Food is a daily need
hence it is expected that our business will grow and yield more profits. Therefore it is fair to say
that our profitability is yet to grow. Break-even point is a tool used to determine at what point a
new product is going to make profits (Autio and Rannikko 2016, p90). The initial persernal
investment would be $ 40,000 and the government funding would be $ 210, 000. The total
amount to be budgeted would be $ 250,000
Summary of financial requirements
The following table show a summary of forecast financial requirements and the funds to be
allocated.
Total Budget £
250,000
Program Name Proposed Budget Total
Equipment 36000
Furniture 44000
Business premises 30000
Van and motorbikes 30000
Opening stock 40000
Operational cost 20000 200000