Entrepreneurship and Innovation

The report discusses a new business plan for healthy organic ice cream by Cocofrio in Australia. It covers market conditions, marketing plan, financial implications, and budget along with the evaluation of success of healthy organic ice-cream products delivered to the customers. The report also includes a PESTLE analysis, target market, and marketing mix strategy.

Running head: ENTREPRENEURSHIP AND INNOVATION
Entrepreneurship and innovation
Name of student
Name of University
Author note

1ENTREPRENEURSHIP AND INNOVATION
Table of Contents
Section 1: Introduction....................................................................................................................3
Section 2: Business description.......................................................................................................3
General description of business...................................................................................................3
Customers.....................................................................................................................................4
Competition and advantage..........................................................................................................5
Section 3: Marketing plan................................................................................................................5
Research and analysis..................................................................................................................5
Marketing plan.............................................................................................................................8
Section 4: Operations.....................................................................................................................10
Section 5: Management.................................................................................................................11
Section 6: Financial planning........................................................................................................11
Evaluation..................................................................................................................................15
Section 7: Critical risks..................................................................................................................15
SWOT analysis..........................................................................................................................15
Conclusion.....................................................................................................................................16
References......................................................................................................................................18

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Section 1: Introduction
The report is prepared to discuss about a new business plan for the healthy organic ice-
cream by Cocofrio in Australia. It is a well known and trusted ice cream manufacturing and
Production Company that delivers the best quality ice-cream products made from natural fruit
extracts and is dairy and gluten free. The company is also known to be Fodmap certified and
provides sustainable product items that have fulfilled the needs and preferences of people all
over Australia. The company manages an innovation idea or concept to deliver the freshest, all
natural, dairy free and gluten free ice cream that can keep the customers healthy and safe due to
the absence of artificial components used and fulfill their taste buds too. It will not only create a
positive mindset among the customers, but can also allow them to make healthier choices to stay
healthy (cocofrio.com.au, 2018). The business plan will be the main focus of the report, which
can help us to assess the market conditions, create a marketing plan, assess the financial
implications and budget along with the evaluation of success of healthy organic ice-cream
products delivered to the customers.
Section 2: Business description
General description of business
The main motive behind the development of business plan is to promote innovation
through the delivery of healthy organic ice cream and keep the customers health, safe and
satisfied with their demands and expectations met by the company Cocofrio, Australia. The
company offers dairy and gluten free ice cream products that can meet the taste buds of
customers and ensure that they make healthy choices to keep their health okay (Nambisan &

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Baron, 2013). The innovative business idea will improve the health of customers and at the same
time, facilitate the production value and make the company achieve higher level of profit and
competitive advantage in business. Cocofrio is Fodmap certified and it creates guilt free ice
cream indulgence with a naturally and healthy difference. The products are available in different
flavors that have been tested by food experts and health enthusiasts and are much better in terms
of healthy components present in the ice cream than the regular dairy ice cream products. Few of
the features of the product include dairy free, gluten free, guilt free, sugar free and is thus
considered as an Australian Certified Organic ice cream company in Australia (Chatterji, Glaeser
& Kerr, 2014).
Customers
The company has made a mark within the dessert industry with a new beginning in
healthy living. There are products that are coconut milk based and sweetened with organic brown
rice malt syrup that creates better taste and thus is considered as an Epicurean delight and healthy
choice for the customers. The healthy organic ice cream is fructose friendly and has been
Australian owned and made, which has created a stir among people all over and made them
choose the right and healthy choices to meet their eating habits and behaviors. The customers are
the health conscious people, women who like different flavored ice cream, individuals who
suffer from diabetes or obesity and young children (Galindo & Méndez, 2014). The satisfaction
of customers is the main focus of the organization and it revolves around the concept of keeping
them healthy and safe, which is essential for sustainable business management. The innovative
business idea of providing safe and healthy organic ice cream can assist in enhancing their
likeness and health consciousness about the products delivered by Cocofrio, furthermore

4ENTREPRENEURSHIP AND INNOVATION
improve the level of satisfaction and enhance the brand image and reputation too (Letaifa &
Rabeau, 2013).
Competition and advantage
There is huge competition in the market and so it has become important for Cocofrio to
implement an innovative business idea and differentiate itself from the other companies within
the industry. The major competitors in business are Peters Ice Cream, Daintree, Gourmet ice
cream, etc. While the other companies focused on delivering ice creams consisting of artificial
sweeteners and other components, Cocofrio delivered natural and healthy ice creams that
contained organic components, which could be vital for maintaining proper health and wellbeing
of people. The dairy and gluten free ice cream products have easily made a mark on sustaining
business and allowed the company to gain competitive advantage in business too (Drucker,
2014). While the other companies deliver products consisting of artificial ingredients and are
saturated with commercial ice-cream brands, Cocofrio managed to provide healthy alternatives
that are both tasty and healthy for consumption by people.
Section 3: Marketing plan
Research and analysis
PESTLE analysis
The PESTLE analysis is done to assess the different factors including the political,
economic, social, technological, legal and environmental factors affecting the business for
Cocofrio in Australia.
Political

5ENTREPRENEURSHIP AND INNOVATION
Australia, being a democratic country and free from political issues, has created ease for
the businesses to sustain. There has been focus on maintaining the health and safety standards
and thus the ice-cream industry has been monitored and regulated based on the Government rules
and regulations. It has been convenient for Cocofrio to manage business while the healthy
organic ice-cream products delivered have increased health awareness and maintained the health
and safety standards too (Sahut & Peris-Ortiz, 2014). The company has leveraged the brand
name and developed its brand name and image with equal trust and loyalty.
Economic
The demands for the ice-cream products have increased considerably in Australia and
people have become more health conscious too. The purchasing power is good along with the
value of currency, which has enabled the company to gain consistent annual growth at a rate of 4
%. The string market conditions have further assisted Cocofrio to penetrate new market segments
and enhance its brand value due to the economies of scale (Śledzik, 2013).
Social
The importance of health awareness has brought changes in the consumer buying
behavior and Cociofrio has successful managed their needs by providing gluten and sugar free
products. The consumers consume ice-cream and at the same time fear of getting obese and other
health issues. The opportunity has been grabbed by Cocofrio to target the social patterns and
delivered gluten, sugar and dairy free ice-creams that can reduce the chances of health related
issues.
Technological

6ENTREPRENEURSHIP AND INNOVATION
With the technological advancements, the company has managed the packaging
procedures and improved the internal process control activities. The marketing activities have
improved, which has created more scopes for brand exposure and making people more about the
healthy organic ice-cream products available in the market (McDaniel, 2014).
Legal
The company needs to design the strategies by inclining with the legislations and laws
regarding health and safety at Australia to maintain the health standards and improve the quality
of lives of people. It will not only create lesser health issues, but can also help in setting the right
prices. The changes in tax and interest rates and economic policies should be monitored as well
for keeping up pace with the changing needs of people in the marketplace (Karaman et al.,
2014).
Environmental
The social initiatives undertaken by Cocofrio for managing environmental sustainability
include keeping the carbon emissions lower and reducing chances of pollution, which can harm
the ecological balance in nature. The coconut trees are managed properly so that the coconut
milk can be extracted to prepare the ice-cream products that are both healthier and tastier. The
dairy milk produced from animals are fed with organic grass to ensure that the best quality milk
is produced for the ice-cream production (Soukoulis, Fisk & Bohn, 2014).
Target market
The major target market segments include the people from all over Australia and those who
come as tourists in the place as well. The target markets are segmented as demographic and

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psychographic. The demographic segments include people from all ages, because the healthy
organic ice-cream can be consumed by all. The tourists who visit Australia can relish the organic
ice-creams while the psychographic segments include the customers who are health conscious.
They can purchase the ice-cream, satisfy their taste buds and remain healthy.
The competition is faced by the company due to the presence of Daitree, Gourmet, tec. The
estimated market share is around 20 percent, which contributes largely to the growth in economy
of Australia (Sütterlin & Siegrist, 2015).
Marketing plan
Marketing mix strategy
The marketing mix strategy is implemented for evaluating the various marketing mix
components including the product, price, place and promotions done for the healthy organic ice-
creams produced by Cocofrio, Australia. The components of the marketing mix staretgy are
assessed for determining the right marketing strategies to facilitate the sales and distribution,
prices set for the products along with the advertising and promotional activities done to enhance
the brand image and reputation among the customers (Ellison et al., 2016).
Product
The vegan friendly and gluten free ice cream products are for the health conscious
customers and it makes sense that a huge number of people will be inclined towards the company
products because of their changing consumption habits. The sugar and gluten free products
represent astonishing healthy food features that can not only keep them safe and healthy, but will
also make them become more cautious about their health and eating habits. The main purpose of

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carrying out the marketing activities and implementing the marketing strategies is to make the
healthy organic ice-cream products available in the market for fulfilling the changing needs and
requirements of the customers. Few of the wide range of products of the company include
hazelnut ice cream, vegan friendly ice cream, fructose friendly and all these products are free
from any gluten and dairy, which make these healthier options available for the customers. This
shall increase the sales revenue and generate higher revenue in business as well. The products of
the company are Australian Certified and Organic, which make fulfill the health and safety
standards too. All the ice-cream products are Australian owned and made and are sugar free and
also considered as natural food products. The ingredients in the products are sugar free and
gluten free, which makes it known as the first fodmap certified ice cream Company in Australia
(van Rompay, Deterink & Fenko, 2016). Each and every product are of great quality and there
are availability of ice candies, chocobars, family pack tubs, cones that are sugar free and have
prolife probiotic ice-creams that are healthy for the health conscious customers. The organic
coconut milk is used to prepare the ice cream, which is healthy and gives a great taste, thereby
adding a delicious, new and flavorsome frozen treat easy.
Price
The company though specialized in quality based products that are gluten and sugar free,
has implemented the low pricing strategy to penetrate new market segments and established a
good place in the market for coping up with the immense competition in the market. The
company has a vision to provide the products and services to the customers at the best affordable
prices for keeping them satisfied as well as influence their purchasing behaviors largely (Prada,
Garrido & Rodrigues, 2017). There are few products that are made available at premium prices

9ENTREPRENEURSHIP AND INNOVATION
because of the high quality natural ingredients used to enrich the taste and at the same time, be
appealing to the masses to increase the sales and profit level. The price of regular ice creams
ranges around $10 while the prices change depending upon the flavor chosen at Cocofrio. The
company aims to sell ice cream units worth of nearly 500 million every year. The numbers of
units sold are nearly 350 million every year and it increases consistently, thereby contributing to
largely to the growth of the industry.
Place
The place refers to the way the products are positioned in different market segments for
easy accessibility by the customers. The products are distributed through different channels
including retail outlets, ice cream parlors and at the pop stores, from where the customers can
easily access those. The ice creams are sold in cars that are mobile and thus the selling nature is
quite flexible in nature. The products are promoted online to raise the level of awareness among
the customers as well as make people aware of the new products and services available in the
markets that are healthy and tasty (Yan et al., 2015). The ice cream stores are accessible for the
customers in Melbourne, Perth, Sydney and due to its great product distribution it will be easy
for the customers to make purchases and improve the sales revenue for the company.
Promotions
The products are promoted via social media platforms to create an online presence and
attract more customers while emailing the product related information to them has helped in
making them know about the product features, furthermore gather the responses and feedbacks
of the customers make necessary changes to keep them satisfied as a whole. The mobile
advertising activities could allow the product manufacturer and service providers to access the

10ENTREPRENEURSHIP AND INNOVATION
location through the phone and find out the locations where the products are available. This
would enhance the brand exposure, improve the brand image and reputation, furthermore attract
new customers and retain the existing ones to increase the sales revenue (Huang & Sarigöllü,
2014). The advertisements on televisions featured people who had the ice cream and gained
health benefits while there were evidences and interviews with people who provided positive
statements about the features of the product along with the health benefits that could be obtained.
All these promotional activities easily influenced the consumer behaviors and made them buy the
products from Cocofrio frequently.
Section 4: Operations
The business operations managed by Cocofrio include the business activities from the
time of manufacturing and production to its delivery to the customers. The location is in
Melbourne, Australia and it has been a treat for the ice-cream lovers to relish the authentic
natural taste of the ice cream that contain healthy and organic ingredients. The consumers in
Australia have become health conscious and for them, the gluten and sugar free natural ice cream
products are a treat. All these products are vegan, fructose and lactose friendly, which make the
people feel less bloated. The coconut milk has more vitamins and useful minerals that act as
useful components for the improvement of health of individuals (Mintz & Currim, 2013).
The advantages are that because of the populated location, the products are sold in large
numbers and have created a sustainable place in the market. The change in tax rates has not
affected the pricing of products much, which has also created ease for the suppliers to deliver the
best quality supplies and raw materials needed for the production of good quality ice cream.
There are extensive transportation facilities that make it easy for delivering the products in the

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right location, furthermore manage easy accessibility by the customers too (Hanssens et al.,
2014).
Section 5: Management
The key personnel are managers, employees and the other stakeholders in business
including the shareholders, suppliers, Government and community too. The company follows a
legal structure, which has helped in fulfilling the stock and employment agreements along with
the management of ownership to ensure successful business functioning. The Board of Directors,
advisors and consultants are associated with the roles of engaging the clients and making sure
that the staffs or human resources are managed well so that the business processes improve and
the quality of products delivered by the company is enhanced to meet the demands and
expectations of the customers (Brooks & Mukherjee¸ 2013).
Section 6: Financial planning
ASSETS
Cash
Equipment
- Food Equipment (ice cream
blenders, machines and
equipments)
$40,000
$20,000

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- Packaging materials
- Equipments within the store
(cash register, phone, seating
arrangements, tables, chairs,
etc.)
- Others
Inventories
Coconut milk, flavors, fruit extracts
Prepaid rent
Prepaid (license
Prepaid Marketing Promotion
(Online and offline)
Prepaid Insurance
Prepaid Salary
$10,000
$5,000
$10,000
$1000
$5,000
$12,000
$2,000
$10,000
$115,000

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Total Assets
LIABILITIES
Bank Loan
Treasury stock
Additional paid-in capital
Retained earnings
Total liabilities
$80,000
$10,000
$15,000
$10,000
$115,000
EQUITY
Total Equity $40,500
Income statement
Revenue
Gross Sales 450,000

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Cost of goods sold
Net Sales
-$50,000
$400,000
Ice cream and other food items expenses
Staff Expenses
Cost of equipments
Rent Expenses
Insurance Expenses
Licensing Cost
Expenses incurred during marketing
Total Expenses
-$20,000
-$25,000
-$19,200
-$50,000
-$3,000
-$2,000
-$6,000
-$125,200
Profit Before Tax $274,800
Tax -$40,500

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Profit for the year $234,300
Evaluation
The return on investments is calculated to determine the financial success of the company
and whether the company has generated the expected revenue or not.
Return on Investment = (Net income – total asset)/Total asset ×100
ROI= $234,300- $115,000/ $115,000*100= 104 % (approx.)
Thus, it is proved that the company has generated good profit in business
Three years financial statement

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Figure: 3 years financial statement (Brooks & Mukherjee¸ 2013)
Section 7: Critical risks
SWOT analysis
Strengths
 Wide range of products available in
different flavors and made of different
Weaknesses
 High level of competition in the

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organic ingredients
 The healthy organic ice cream products
can keep people safe and healthy
 Strong brand image and reputation
 The gluten and sugar free ice cream and
probiotic ice cream maintain the health
and safety standards of people
marketplace
 Lesser global exposure
 Lack of online marketing activities
Opportunities
 The healthy organic ice-cream products
are a treat for the customers
 Availability of the products in different
places all over Australia
 Mobile cars for flexibility of product
accessibility
Threats
 Threats of competitors
 Local ice creams and beverage items
 Health conscious customers often
refrain from the sweet delicacies in
spite of the organic and natural
ingredients present
Conclusion
The report was prepared to discuss about the entrepreneurship and innovation at Cocofrio
in Australia. The company was known for its innovation aspect of delivering healthy organic ice
cream to cater the needs of people all over. The marketing plan was developed to assess the

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market conditions with the sue of PESTLE analysis and through the implementation of
marketing mix strategy to set the right prices for the products and manage the promotional
activities too. The financial planning helped in assessing the balance sheet and income statement,
which proved that the returns of investments are higher than the investments made. Thus the
company had been financially successful, generated higher revenue in business and gained
competitive advantage in business too.

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