Business Idea of New Vitamin Desserts

The report discusses the business idea of new vitamin desserts that aim to improve the immune system. It covers market analysis, competitor analysis, marketing strategies, and financial plan.

BUSINESS

EXECUTIVE SUMMARY
The report will reveal about the business idea of new vitamin desserts that would improve
the immune system of people. It will provide the health conscious people with healthy and
nutritious desserts with best tastes. The competition could be high in the future and it has
continuously up grade the products. The market analysis shows it could gain considerable market
share in short run to non availability of substitutes. Further it discussed internal and external
factors influencing the business and provided financial plan for business.

TABLE OF CONTENTS
EXECUTIVE SUMMARY ............................................................................................................2
INTRODUCTION ..........................................................................................................................1
REPORT .........................................................................................................................................1
Business overview ......................................................................................................................1
Macro Environment overview.....................................................................................................1
Industry and Market Analysis .....................................................................................................2
Competitor Analysis ...................................................................................................................3
Marketing Strategies ...................................................................................................................3
Operations Plan ...........................................................................................................................4
SWOT Analysis ..........................................................................................................................5
Financial Plan ..............................................................................................................................6
CONCLUSION ...............................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
It refers to concept for starting the small business for offering products and services with
intention of making disruptions in the industry and maximising own profits. It is also known as
organisation that places opportunism and innovations at heart for producing the social or
economic values. The business concept is useful in increasing the brand awareness and brand
value and also in increasing the customer experience. The present report will discuss about the
new business concept. It would provide about different internal and external factors that
influence the business. Further it will provide industry analysis, market trends and the competitor
analysis along with short financial plan.
REPORT
Business overview
The entrepreneurs have came up with business idea of producing nutritious desserts of
different varieties highly rich in vitamins. The business is named as Vita Desserts. It could be
seen that people are becoming more and more conscious about their health due to which they are
compromising their food. It could not be denied that health conscious food are important for the
people as various they are facing various health issues because of their eating habits(Lubawa,
2020). The companies are striving to retain the interest of people in food by bringing nutritious
and healthy food that will help not affect their health and will also add value to value to them.
Keeping this motive the business has planned to bring the nutritious desserts for people that will
help them in staying fit. The rich vitamin desserts will also boost their immune systems which is
very essential in the present time of COVID. The people would be able to get the desserts both
over online and offline platforms.
Macro Environment overview
A business is influenced by number of external factors which are stated below
Political – Vita Desserts is required to assess all the laws applicable to the business. As the
business will also exporting the products it has to consider the tax rates for exports. They are
required to ensure that marketing is not against the laws of other countries (Nguyen, and
Kamuya, 2017). Political influences could affect the exchange rates significantly
Economic – The economy of country highly influence the business .Vita Desserts is required to
assess the economic environment of the countries in which it is planning to operate. The
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monetary and fiscal policies of the country are influential and have to take use appropriately. It is
required to ensure that currency rates and interest rate are properly managed by hedging or other
measures.
Social – The business is focused towards the benefit of society as it is becoming more health
conscious. For growing successfully it is essential that the trends of society are followed properly
and ensure that the traditional feelings are not affected of the people.
Technology – It will be using highly advanced machineries for production to meet the demands
and for speedy productions. It will increase the efficiency and also reduce considerable cost of
business. Also the standard software will be used for operating the business and managing
customers.
Legal – Being in food sector it has to comply with number or rules and regulations related to the
food safety and standards (Sharafutdinova, 2016). It has to assess the different rules and
regulations applicable to business and comply with them properly.
Environmental – It will be making proper utilisation of the resources to ensure maximum
benefits. It would also comply with environment regulations of the different states.
Industry and Market Analysis
The market analysis is done using Porter's Five forces.
Threat of Substitutes - The industry is highly influenced by new and innovative products. There
is high probability that new substitutes may be developed that provide similar nutritious
products.
Threat of Entrants – The market is highly prone to new entrants as there are no trade barriers
and also the cost of establishing is very low in this sector.
Bargaining power of Suppliers – As large number of suppliers are available for providing the
raw materials for preparing the desserts it will be low.
Bargaining power of buyers – It will not be high as the similar products are not yet existing in
the market that are rich in vitamins and improves immune (Pham, 2020).
Rivalry among the competitors – It may face high competition as industry is prone to new
developments. The existing companies coming with similar products will be competing with
Vita.
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Competitor Analysis
The food industry is very broad and is bringing new and innovative products for
attracting the customers continuously. The food industry is prone to high competition and face
tough competition. Firm operating in this sector are required to provide the business with new
products and offering within short time intervals. Vita Desserts will face tough competition in
the coming future as many companies would be coming with similar nutritional products. It
could focus over specialisation of the desserts for attracting the customers. Big companies like
Nestle and Cadbury could produce similar nutritional products giving tough competition to Vita.
It has to continuously upgrade the process and provide with new products to maintain the interest
of consumers (POLANCO CHÁVEZ and LÓPEZ RAMÍREZ, 2020). Big firms has highly
advanced machineries and established market base that helps in promoting their new products
easily. Also due to bulk purchases the companies can get cost benefit and can also provide
products at lower prices. Vita is required to manage the costs of raw materials and operations to
be able to provide the products at considerable prices. There are not existing products that will
compete the business and thus it has to take the opportunity in short run by gaining considerable
market share using appropriate marketing and promotional strategies.
Marketing Strategies
Vita Desserts has to assess the strategies for pricing and segmentation of products so that
it could provide the products to target market. There are mainly 4 segments which are
Demographic It is most straight forward method for defining the customer group. It
identifies the non character trait like gender, age, income, ethnicity,
eduction and religion to find target market.
Psychographic The segments evaluates the characteristics and personality of the
people. The segmentation is used for determining factors such as
lifestyles, values, interests, etc.
Behavioural It is used for making segmentation of the market or customer group
on the basis of behavioural aspects of the customers such as attitude,
values of the selected group (Cristino, 2019). It helps in assessing the
need of customer group
Geographic It is also an easiest method for segmentation on the basis of physical
locations like city, region or country. It may select to focus particular
region for the products or services.
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The Vita Desserts would be segmenting on the basis of psyschographic method by
focusing over lifestyle and values of the people.
Targeting
The business has to select the target market in which it would be operating. Targeting is
done on following three basis
Differentiated: In this company provides the products and services to number of markets to gain
the market share in different regions.
Mass: This is generally homogeneous group which selects large audience for offering the
products.
Niche: The strategy focus over only short segment of the market that is considerably shorter than
above two.
Pricing Strategy
The strategy plays a significant role in defining the success or failure of business as
customers are mainly influenced by the prices and quality of the products. It makes an important
decision to be taken by the management for promoting the products and also to gain acceptance
from its customers. There are different pricing strategies available that may be used for pricing
the products after carrying out proper analysis of the market (Buzinisová, 2017). Vita Deserts on
the basis of market analysis would be using cost plus pricing strategy for the products to attract
customers. It will enable them to cover the cost and earn adequate returns from the business.
Operations Plan
The operational plan will show how the business would be working.
Manufacturing of Products The products would be developed by the highly experienced
that would provide the best taste in the desserts with healthy
ingredients for boosting the immune system.
Facilities Required Factory place, administration office, machineries, equipments,
functional and operational software and the delivery systems
etc.,. It would also require the computers, chairs, phones etc.,
The products would be delivered across 8 countries along with UK. Products will be
provided through effective marketing channels to wholesalers and then to retailers. It would be
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also taking online orders for the products in local markets. It will be taking copyright over the
products paying prescribed fees (Yanyan, 2018). As the business is manufacturing concern it
would required to maintain effective marketing channel for the business. Also it would be
adopting promotional strategies to attract and make customers aware about the products.
SWOT Analysis
It is performed to assess the internal strengths and weaknesses of the business
Strengths
 No existing firms are there offering similar products to the consumers.
 The products are high rich in nutritional values that increases the immune system of
people. Products are prepared consulting the recognised medical professionals and dieticians for
good health.
Weaknesses
 The supply chain management of the business is weak which requires improvement.
 The internal management of the firm is not strong that may affect the business operations. Cost of raw materials is very high that could increase the costs of products.
Opportunities
 From the market analysis it could be seen that there will new opportunities for the health
conscious food.
 The coronavirus has affected the eating habitats and the health products boosting immune
would create place in the market (Gonzalez, 2017). High recognition could be achieved as there are no similar products available in the
market.
Threats
 It could face high competition in coming future due to availability of substitutes
 The increasing economic influences may cause the currency fluctuations against
company.
 There may be increase in the tax rates that will affect the profitability.
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Financial Plan
The business will be requiring funds to start and operate the business successfully. It has
to prepare appropriate financial plan by assessing the requirements of business. It will help in
efficient allocation of the resources among different business activities. Budget has been
prepared for analysing the different costs and expenditures.
Particulars
Janu
ary
Febr
uary
Marc
h April May June July
Augu
st
Septe
mber
Octo
ber
Nove
mber
Dece
mber
Cash inflows
Opening
inflow 15000 4100 25243
4668
3.1
64424
.41
86471
.06
10882
7.16
12549
6.85
14848
4.26
17179
3.52
18942
8.75
21339
4.06
Sales
revenues 25000 25500 26010
2653
0 27061 27602
28154
.0604
816
28717
.1416
91232 29291 29877 30475 31084
Other income 8000 8000 8000 8000 8000 8000 8000 8000 8000 8000 8000 8000
Total cash
inflows 48000 37600 59253
8121
3.3
99485
.2
12207
3.1
14498
1.2
16221
4.0
18577
5.7
20967
0.8
22790
3.6
25247
8.4
Cash outflows
Materials 6500 3825
3901.
5
3979.
5
4059.
1
4140.
3
4223.
1
4307.
6
4393.
7
4481.
6
4571.
2
4662.
7
Labour 2200 2244
2288.
88
2334.
66
2381.
35
2428.
98
2477.
56
2527.
11
2577.
65
2629.
20
2681.
79
2735.
42
Machinery 25000
Marketing
expenses 4000 4000 6000 6000
Distribution
expenses 2200 2288 2380 2475 2574 2677 2783 2895 3011 3131 3257 3387
Admin
expenses 4000 4000 4000 4000 4000 4000 4000 4000 4000 4000 4000 4000
Total cash
outflows 43900 12357
12569
.9
1678
8.9
13014
.2
13245
.9
19484
.4
13729
.7
13982
.2
20242
.1
14509
.6
14784
.9
6

Cash deficit /
surplus or
closing cash
balance 4100 25243 46683
6442
4 86471
10882
7
12549
6.85
14848
4
17179
4
18942
9
21339
4
23769
4
Break Even Analysis
Particulars Formula Figures
Selling price p.u. 15
Variable cost p.u. 7
Contribution p.u.
Selling price p.u. -
variable cost p.u. 8
Fixed cost 45000
BEP (in units)
Fixed cost /
contribution p.u. 5625
BEP (in value)
BEP (in units) *
selling price p.u. 84375
Units need to sell for attaining desired profit margin
Particulars Formula Figures
Fixed costs 45000
Desired profit 12000
Contribution p.u. 8
Number of units required to sell
Fixed cost + desired
profit margin /
contribution per
unit 7125
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CONCLUSION
It could be summarised from the above report that the business idea of providing rich
vitamin desserts will provide the society with good health by keeping their interests in the
desserts. The business idea would make success as similar idea or products are not available in
the market and it could be taken as the opportunity.
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REFERENCES
Books and Journals
Nguyen, L. and Kamuya, M., 2017. Business plan on food vending in Finland.
Lubawa, G.G., 2020. Business Plan and Industrial Development: The Case of Family-Owned
Food Processing SMEs in Tanzania. In Handbook of Research on Institution Development
for Sustainable and Inclusive Economic Growth in Africa (pp. 231-253). IGI Global.
Sharafutdinova, A., 2016. Start-up business plan: organic food restaurant in Bilbao.
Pham, M.T.L., 2020. Business Plan-Viet Balo: The role of a business plan to a start up in the
food & beverage inudstry.
POLANCO CHÁVEZ, M.A. and LÓPEZ RAMÍREZ, J.J., 2020. Food Like Home: Business
Plan Latin native food for Latin American students and residents in Madrid.
Cristino, M., 2019. A business plan for a new business model in the food delivery
market (Doctoral dissertation).
Buzinisová, A., 2017. A Business Plan for Healthy Food Vending Machines at Tomas Bata
University in Zlín.
Yanyan, G., 2018. Diversification and reduction of loss of food: a business plan for production
of avocado oil in Kenya for the Chinese market (Doctoral dissertation).
Gonzalez, P., 2017. Sprouts: A Business Plan that supports a generation's quest for wholesome
ingredients and nurturing food experiences.
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