Business Plan for Pizzalicious: Market Analysis, Competitors Analysis, and Financial Requirements

This business plan focuses on Pizzalicious, a new food and beverage business in the UK. It includes market analysis, competitors analysis, pricing strategy, and financial requirements.

Business plan
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Contents
Contents...........................................................................................................................................2
Introduction......................................................................................................................................3
Main body........................................................................................................................................3
The business details....................................................................................................................3
Macro environmental overview..................................................................................................3
Market and industry analysis......................................................................................................4
Competitors analysis...................................................................................................................5
Operations plan...........................................................................................................................6
SWOT analysis...........................................................................................................................6
Financial requirements................................................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES..............................................................................................................................10
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Introduction
In this competitive business environment every company want to expand its operations with
an innovative idea. In addition to this, come up with the innovation and uniqueness at
marketplace assist in capturing attention of large number of customers (Kusumaningrum and
Hidayat, 2016). It can be beneficial for an organization to enhance its brand image and attend
competitive advantage at marketplace. For this, market analysis is significant as it provides
opportunities to expand operations and maintain brand image by providing quality of services to
the customers according to their requirements. The present report is based on the business plan
and for this; a hypothetical company Pizzalicious is a new business operate within food and
beverage industry in United Kingdom. Report will cover competitors analysis, market analysis,
pricing strategy and other concepts related to the new business plan.
Main body
The business details
Pizzalicious is one of the new food and beverage business entity which is situated in
London, United Kingdom and also provide food products at market days. It is basically a small
restaurant which develops within objective to increase its sales and providing something unique
offering within the food sector. It provides range of food items that is as per the customer
requirements along with this the company bring an innovative Product that is Oats based pizza.
The main quality of this new food product is that its base is made of oats which is full of proteins
and nutrients and other healthy supplements. It help company to attract large number of
customers with this new food item. With the help of this, the organization is able to enhance its
profitability level and sustain it market for longer time frame.
Macro environmental overview
Pizzalicious is going to offer quality products as well as services to the customers by
analysing their needs to eat pizza. For serving it in United Kingdom, it is needed for business
entity to conduct PEST analysis as it helps in gaining knowledge about the factors that impact on
the performance and operations, which are as follows:
Political factor: UK follows constitutional monarchy performing under the control off
and representative data and structure. It is stated that UK is a prosperous, decent nation that
provide plenty of opportunities for the small companies to expand its operations. Therefore there
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might be the opportunity for respective company that is it and treat to establish its business
within market of United Kingdom.
Economical factor: It is determined that in the present time the UK economic condition
is good. It has a diverse economy and has strong GDP but faces a few challenges because of the
Pandemic. So, restaurant Part of profit for the development of economy by raising employment.
In United kingdom, there is high population which make viability for small markets that could be
beneficial for the respective restaurant.
Social factor: This factor depicts customer needs and requirements towards business
offerings. As is going to offer variety of pizza and mainly oats based pizza that would be help
company to fulfil the customers requirement within the marketplace.
Technological factor: can make use of digital platforms in order to promote its offerings
and reach large number of people (Tipu, 2019). It can also make use of secure payment method
that provide high experience to customers.
Market and industry analysis
It is important for the new business entity to first analyse the market as it help in successful
implementation and execution of activities as well as attainment of competitive advantage at
marketplace. In order to gain knowledge about the market, make use of porters five forces
model, which are as follows :
 Supplier power: in the marketplace, food and beverage industry buy raw materials from
various suppliers. It is one of the major reason that suppliers have high bargaining power
and also make use of negotiation power to extract high procedure from the business anti.
Therefore it is important for Pizzalicious to maintain factor relationship with suppliers as
it insures availability of raw materials on time period.
 Competitive rivalry: competitors within the marketplace will decline the price of its
profits and revenue level. Is operating in food industry where there are large number of
competitors. For this, it is significant for the company to develop a sustainable
differentiation in its offerings in order to compete with the rivals.
 Buyer power: it is determined that customers are often they demanding as they Prefer to
eat those products that age of quality and add unaffordable price. It may develop pressure
in front for as there is high bargaining power of buyers (.Fichter and Tiemann, 2020). To
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maintain and improve its customer base level, respective restaurant required to enhance
its number of offerings and uniqueness within its product. It can contribute in developing
strong relations with the customers that impact positively on its sales as well as profit
level.
 Threat of substitution: within the food and beverage sector, new products as well as
service meet a similar customer requirement in some ways as profitability can be
influenced. Therefore it is significant for being service oriented instead of the product
oriented. In addition to this restaurant also understand requirements of customers so that
it can meet with it and offer high quality services that directly contributes towards
development of brand image and enhancement of market performance.
 Threat of new entry: in order to start a new business within the food and beverage
sector, there is no requirement of high investment and no legal procedures will be
followed. Therefore it is stated that the threat of new entrants is high for the restaurant. It
is important for the respective restaurant to offer quality food products at a reasonable
price to its customers so that they did not shift to another restaurant or the new restaurant.
Competitors analysis
In United Kingdom, food and beverage monkey consist of large number of competitors
that is Burger King, McDonald’s end many more which shows that there is high competition for
Pizzalicious. It can be negatively influenced on its selling and profitability level (Qureshi.,
Saeed, and Wasti, 2016). Target customers who prefer to eat fast food consume its services. It is
important for to maintain its uniqueness that is oats based pizza. In addition to this business
entity also analyse the strategies of competitors before developing any of the plan and
improvement it. It is important for an organisation to analyse the requirements and demand of
customers as it helps in developing strategies to meet with customer expectations and
requirements. It will directly contribute in raising the profitability level and market performance
level in an effective manner for this, business entity continuously brings innovation as well as
nickname when in its offerings and food products will stop it is beneficial in order to influence
customers and attract them to consume its products and services. It assist to develop a positive
mindset of customers towards its offerings and attain competitive advantage at marketplace.
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Marketing and pricing strategies
For improving the brand image, it is significant for every organization to promote its offerings
so that it can attract large number of people can attain higher profitability. In this context,
organization emphasize on customer requirements and needs by identifying market trains and
conditions. Company many target youth and kids who prefer to eat fast food and it is analyse by
conducting market research. In addition to this, McDonald’s, Burger King and so on are the
major competitors who have strong presence in market (Hasmidyani, Fatimah and Firmansyah,
2017). Because of these, requires to make use of competitive pricing strategy by which it can
offer products add an reasonable price. This help company to attract large number of customers
an increase its number of sales. Moreover the company can make use of effective marketing
tools such as advertising on social media platforms as it helps in reaching large number of people
within short span of time. This impact directly on the profitability and revenue on by the
company in a positive manner.
Operations plan
The operation plan for it and treat should be according to the customer choice so that
business entity with their replenishing dishes can meet with their requirements and needs. The
objective of restaurant is to give a space where customer come and eat food and also enjoy it.
Therefore, companies operational plan is comprises of search forms of services. Customers can
conveniently order their food from range of products which is mentioned in the menu to the
employees of restaurant. In addition to this agent treat has its own conventional ovens that is
giving pizza at different and authentic taste of Italy. The customers can find this restaurant near
the Regents park, London, WCH Lane, UK. It is analyze that the company also offer it’s food on
online websites and deliver it to the door step off customer (HAN, and Kang, 2020). Furthermore
the location is well connected with subways which means customers can easily reach the outlet
and consume it’s service.
SWOT analysis
It is significant for it and treat to identify its overall performance by making use of sort
analysis as it gives assistants in analyzing strength, opportunities, threats and weaknesses. The
SWOT analysis of is given below:
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Strengths Weaknesses
 Pizzalicious provide quality service at
an affordable price that is consider as
its strength.
 It make use of competitive pricing
strategy that attract large number of
customer and impact positively on its
profits.
 Pizzalicious is new at marketplace
because of which it takes time to make
customers familiar with it and arise a
challenge for the company.
 Competitors of Pizzalicious has strong
customers base level because of its wide
variety of offerings.
Opportunities Threats
 Creating a new product i.e. oats based
Pizza is an opportunity for Pizzalicious
to attract large number of people.
 Positive & hygiene environment of
restaurant is also impact people to visit
restaurant as well as consume its
services.
 One of the major threat is its
competitors due to which its sales and
profitability is declined (Cant, 2018).
 Change in political and economic
environment also impact on the entire
activities of restaurant.
Financial requirements
Pizzalicious restaurant is mainly trading in oats based pizzas & its statement of financial
requirements is given below:
Start-up cost of business- It is the cost that include the initial fuel for launching a new business
and performing its operation. The break down of start up cost is as follows:
 Equipment’s = £ 2000.
 Furniture = £ 1500.
 Premises (will be acquired on rent) =
 Security deposit = £ 100.
 Advance rent for 1 month = £ 100.
 Estimated cost of sales = £10 per unit.
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 Selling price per unit = £50.
 Fixed cost = £ 1500.
 Variable cost = £3 per unit.
By analysing the market trends & other related factors that impact on sales, it is forecasted
that Pizzalicious will be able to develop sales that is equal to 200 units in a month. On the basis
of this forecasting following is a cost statement:
Particulars Calculation Amount
Sales £50*200 £10000
Less: variable cost £3*200 £600
Contribution Sales-variable cost £9400
Less: fixed cost £1500
Less: estimated cost of sales £10*200 £2000
Net profit £5900
From the above table, following is profitability & break-even analysis,
Break even analysis- It is mainly that sales volume where business entity has no loss and
no profit. In order to earn profits, business has to surpass this point of sales (Ostaev and et.al.,
2019). In given case, breakeven point is:
Breakeven point = Fixed cost/ (selling point – variable cost)
= 1500/(50-3) = 31.91 units or 32 units (approx.)
Profitability analysis= from the above calculation, it can be stated that, company is earning
profit on 168 units (200-32). Therefore, profit is earned on these units only.
Net profit margin for the company = net profit / sales*100
= (5900/10000)*100 = 59%
CONCLUSION
From the above discussion, it is analysed that it significant for a business entity to clarify the
mission and vision prior to starting of new business. In addition to this, conducting competitor
and industry analysis assist an organization to develop an effective strategy in order to achieve
competitive advantage at marketplace. With the help of PEST analysis and SWOT analysis, the
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company is able to analyse the factors that impact on their business operations and also
knowledge about its weaknesses and opportunities they have. It is significant to develop an
effective operational plan before starting a new business so that all the activities is implemented
systematically and appropriately.
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REFERENCES
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Grimmer, L., Miles, M. P. and Grimmer, M., 2016. The performance advantage of business
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