Ice Cream Delivery Business Plan Analysis

This is an analysis of the business plan for Badiani Gelato, a premium ice cream delivery company that uses freezer vans to deliver its products to customers in Central London's shopping centers. The company manufactures a variety of products, including ice cream, sorbets, frozen yogurts, and vegan and lactose-free options, all made with simple and natural ingredients. The company's aim is to provide a convenient and reliable delivery service of its gelato to customers throughout the region. To achieve this, Badiani Gelato has established a delivery business plan that includes the use of delivery vans, storage containers, and packaging materials. The company has also implemented several growth strategies, such as social media promotion, quality control, and promotional campaigns. The analysis includes a table of contents outlining the various sections of the business plan, including a company overview, product and service offerings, market and competitive analysis, business strategy, operating plan, and financial plan.

ICE CREAM DELIVERY BUSINESS PLAN ANALYSIS
1

Executive Summary
Badiani Gelato is a premium ice cream delivery company that is dedicated to providing
customers with delicious, high-quality gelato. The company uses freezer vans to deliver its
products to customers in Central London’s shopping centers. The vans are insulated and chilled
to ensure that the gelato maintains its freshness and flavor until it reaches its destination. The
company manufactures a variety of products, including ice cream, sorbets, frozen yogurts, and a
range of vegan and lactose-free options. All products are freshly made, using simple and natural
ingredients. The company’s aim is to provide a convenient and reliable delivery service of its
delicious gelato to customers throughout the region. To achieve this, Badiani Gelato has
established a delivery business plan that includes the use of delivery vans, storage containers,
and packaging materials to ensure that the products reach the customers in perfect condition.
Furthermore, the company has implemented several growth strategies, such as social media
promotion, quality control, and promotional campaigns, to ensure that the business continues to
grow and expand its customer base.
2

Table of Contents
2. Company overview......................................................................................................................4
2.1 Legal structure........................................................................................................................4
2.2 Business Description..............................................................................................................4
2.3 Business Aim and Objective..................................................................................................5
3. Products and services offerings...................................................................................................6
3.1 Types of product and services offered....................................................................................6
3.2. Core USP’s............................................................................................................................6
4. Market and competitive analysis/Risk.........................................................................................6
4.1 Market size.............................................................................................................................6
4.2 Market Segmentation.............................................................................................................7
4.3 SWOT analysis.......................................................................................................................7
4.4 Competitive analysis (Porter’s analysis)................................................................................8
5. Business Strategy.........................................................................................................................9
5.1 Marketing Mix.......................................................................................................................9
5.2 Growth strategy....................................................................................................................10
6. Operating Plan...........................................................................................................................11
6.1 Physical Location.................................................................................................................11
6.2 Physical resource requirement.............................................................................................11
6.3 Supplier requirement............................................................................................................11
6.4 Breakeven analysis...............................................................................................................12
7.0 Financial plan...........................................................................................................................12
7.1 Projected income statement.................................................................................................12
7.2 Projected balance sheet........................................................................................................13
7.3 Projected cash flow statement..............................................................................................14
7.4 Ratio analysis.......................................................................................................................15
8.0 Recommendation.....................................................................................................................17
8.1 Conclusion...........................................................................................................................17
8.2 Critical Review....................................................................................................................17
8.3 Recommendation.................................................................................................................18
9. Reference...................................................................................................................................19
3

10. Appendices: USP.....................................................................................................................21
Appendix 1: USP of the business...............................................................................................21
Appendix 2: Marketing Mix......................................................................................................22
Appendix 3: Competitors analysis (Porter’s analysis)...............................................................22
Appendix 4: Key project Financials...........................................................................................23
Appendix 5: Investments...........................................................................................................25
Reference List............................................................................................................................26
4

2. Company overview
2.1 Legal structure
Badiani Gelato business is a limited liability company (LLC). LLCs are hybrid business entities
that combine the benefits of a corporation and a partnership. LLCs provide limited personal
liability to owners, which means that owners are not held personally liable for debts and
obligations of the business. They also provide pass-through taxation, meaning that the business
does not pay taxes at the corporate level; instead, profits and losses are passed through to the
owners and taxed on their individual tax returns (Livis, et al. 2021). In addition, LLCs can be
managed by the owners, which means that they do not need to be managed by a board of
directors. Finally, LLCs are easy to set up and can be formed in any state.
2.2 Business Description
Badiani Gelato is a premium ice cream delivery company that is dedicated to providing
customers with delicious, high-quality gelato. The company uses freezer vans to deliver their
products to ice cream shops in Central London's shopping centers. The vans are insulated and
chilled to ensure that the gelato maintains its freshness and flavor until it reaches its destination.
The freezer vans also have GPS tracking systems that allow the company to monitor their
deliveries and ensure that the gelato arrives on time and in perfect condition (Tien and Ngoc,
2019). Badiani Gelato is committed to providing customers with the best service and ensuring
that their gelato is delivered in the best possible condition.
5

Figure 1: Ice-cream delivery business in UK
(Source: https://www.grandviewresearch.com)
2.3 Business Aim and Objective
Aim:
Badiani Gelato's aim is to provide a convenient and reliable delivery service of its delicious
gelato to customers throughout the region.
Objective
● To determine Delivery vans are effective for transporting the ice cream to its destination.
● To become the premier gelato delivery service in our region by delivering fresh,
handmade gelato to customers in a timely and professional manner.
● To determine if the delivery containers are insulated boxes that keep the ice cream cold
during transport or not.
6

3. Products and services offerings
3.1 Types of product and services offered
The Badiani Gelato company manufactures a variety of products, including ice cream, sorbets,
frozen yogurts, and a range of vegan and lactose-free options. All products are freshly made,
using simple and natural ingredients (Sharma, et al. 2022).
The company delivers its products to shops in the center of London using refrigerated vans. This
ensures that the gelato is kept at the optimal temperature and reaches customers in perfect
condition. The vans are also equipped with GPS tracking, allowing Badiani Gelato to monitor
their progress and guarantee delivery within a specific time frame.
3.2. Core USP’s
Badiani Gelato company has several core USP's that make it stand out in the market. Firstly, it is
the only gelato company in the world to have a three-time Gelato World Champion, Simone
Romano, as its master gelato maker. This ensures that the gelato produced is of the highest
quality. Secondly, all of the ingredients used in the gelato are sourced from local and sustainable
producers, meaning that customers can enjoy fresh, natural, and sustainable gelato. Finally, the
company is committed to creating innovative and unique flavors, such as the award-winning
‘Tiramisu’, as well as developing seasonal flavors (Dorji, et al. 2019). Together, these USP's
ensure that customers who choose Badiani Gelato are guaranteed a high-quality, sustainable, and
exciting experience.
4. Market and competitive analysis/Risk
4.1 Market size
The Market size of Badiani Gelato company’s delivers ice cream to the shop located in the center
of London is estimated to be around £2 million to £5 million annually. This includes the cost of
delivery, ingredients, labor, and any other expenses associated with running the business. The
delivery business has been growing steadily over the past few years as demand for gelato has
increased in the area. The business is also benefiting from the popularity of online delivery
7

services, as well as the ongoing trend towards healthier eating. The company has been able to
capitalize on this growing market by providing high-quality gelato that is made with natural
ingredients and without any preservatives or artificial flavors (Frias, et al. 2020). As a result,
Badiani Gelato has become one of the most popular gelato brands in London.
4.2 Market Segmentation
Market Segmentation: Badiani Gelato's delivery plan can be segmented based on various
factors like geography, demography, psychographics, and lifestyle.
Targeting: After segmentation, the company can target customers based on their preferences.
For example, customers who live nearby and have a sweet tooth can be targeted through online
campaigns and advertisements.
Positioning: Badiani Gelato can position their delivery plan as a convenient, hassle-free, and
affordable way to get the best ice creams (Tsarouhas, 2020). The company can also position their
delivery plan as a unique way to enjoy their products by having them delivered directly to
customers' doorstep.
Overall, the company can use their delivery plan to increase their reach and grow their customer
base.
4.3 SWOT analysis
Function Description
Strengths 1. Delivery through vans ensures faster
delivery of products and reduces the delivery
time.
2. Vans provides greater flexibility in terms of
route planning and delivery scheduling.
3. The vans are cost efficient and provide a
convenient and cost-effective transport
solution to customers.
Weaknesses 1. The delivery plan through vans may not be
8

suitable for long-distance deliveries.
2. There are risks and issues related to the
safety of drivers and goods.
Opportunities 1. It provides an opportunity to reach out to a
larger customer base.
2. It offers a chance to explore new markets
and expand the customer base.
3. It provides an opportunity to create a
competitive edge over other competitors in the
market.
Threats 1. There is a risk of the product getting
damaged in transit.
2. There is a risk of theft or tampering of
goods in transit.
3. The competition from other companies in
the market may lead to reduced margins.
Table 1: SWOT analysis
(Source: Self-created)
4.4 Competitive analysis (Porter’s analysis)
Factors Description
Threat of New Entrants The threat of new entrants for Badiani Gelato
is low as it requires high investments for
delivery vans, license, brand recognition and
capital to build a gelato delivery business.
Bargaining Power of Suppliers The bargaining power of suppliers is low
because of the high competition in the market
of gelato (Stadler, et al. 2021). Badiani Gelato
9

has the upper hand as there are many suppliers
who will be willing to provide their products
at competitive prices.
Bargaining Power of Buyers The bargaining power of buyers is low as
there are many competitors in the market
providing the same product and there is a
huge availability of gelato in the market.
Threat of Substitute Products The threat of substitute products is low as
gelato is a unique product and there are no
other substitutes that can match the taste and
quality of gelato.
Intensity of Rivalry The intensity of rivalry is high as there are
many competitors in the market providing the
same product.
Table 2: Porter’s five forces
(Source: Self-created)
5. Business Strategy
5.1 Marketing Mix
Parameters Description
Product Badiani Gelato's Company delivery plan
offers a wide range of freshly prepared gelato
flavors in attractive packaging for customers
to choose from.
Price The company offers competitive prices for its
gelato delivery plan. The customers get value
for their money and are satisfied with the
10

product.
Place The company has a well-equipped van to
ensure timely delivery of the gelato orders.
The delivery personnel are well trained and
ensure that the orders reach the customers
within the specified time.
Promotion The company uses various promotional
strategies to attract customers and build brand
loyalty. This includes advertising through
traditional and digital mediums, offering
discounts and loyalty rewards, and launching
new products to keep the customers engaged.
Table 3: Marketing mix
(Source: Self-created)
5.2 Growth strategy
Gelato delivery business via van can use a combination of organic and paid growth strategies.
Organic Growth Strategies:
1. Social media promotion: Posting regular updates and content on social media can help to
build brand visibility and increase sales (Ontaneda and Quiroga, 2020).
2. Quality control: Ensure that customers receive a consistent quality product each time they
order.
Paid Growth Strategies:
1. Paid advertising: Utilizing paid advertising on social media, search engines and other online
platforms can help to generate targeted leads.
2. Promotional campaigns: Developing special promotional campaigns and offering discounts
can help to attract new customers and increase sales.
11

6. Operating Plan
6.1 Physical Location
Company Location: The company is located in London, UK.
Delivery business setup: The delivery of the Badiani Gelato company is done via vans in which
freezers are attached and the vans give delivery of the Ice cream to the shops which are located
in central London.
6.2 Physical resource requirement
The physical resource requirements for the delivery business of ice cream of the Badiani Gelato
Company will include delivery vehicles, storage containers, and packaging materials. Delivery
vehicles such as vans or trucks are necessary to transport the ice cream from the production
facility to the customers (Hultink, et al. 2020.). Storage containers will be needed to ensure that
the ice cream remains frozen during delivery. Packaging materials such as insulated boxes and
cold packs will be used to keep the ice cream frozen during transport.
6.3 Supplier requirement
1. The supplier must have a valid license for food production and transportation in the relevant
jurisdiction.
2. The supplier must have a traceability system in place to ensure that the ice cream reaches the
customers in perfect condition.
3. The supplier must have a traceability system in place to ensure that the ice cream reaches the
customers in perfect condition.
6.4 Breakeven analysis
The BEP of the ice cream delivery business of Badiani Gelato company has been shown below.
Expected sales per unit= £35
Expected variable cost per unit= £25
12

Fixed cost=£300,000(app.)
Break-even point=FC/(sakes per unit-variable cost per unit)
=£300,000/(£35-£25)
=30,000 units
From the above calculation it has been seen that to hold the position in the market it is required
to sell 30000 units per month.
7.0 Financial plan
7.1 Projected income statement
13

Figure 2: Income statement
(Source: Excel)
7.2 Projected balance sheet
Figure 3: Balance sheet
(Source: Excel)
7.3 Projected cash flow statement
14

A projected cash flow statement is a financial document that shows the expected amount of cash
that will be generated and used by a business over a specified period of time. It is used to
forecast the future cash position of a business and can be used to determine whether the business
has sufficient resources to meet its financial obligations. With the help of this statement it will be
easy for the business to estimate cash inflows, such as sales and investments, as well as the
estimated cash outflows, such as expenses and debt payments.
Figure 4: Cash flow statement
(Source: Excel)
7.4 Ratio analysis
Gross Profit
Name of the ratio 2023 2024
Gross profit = (1586/30000)*100= 5.2 % (1680/30000)*100=5.6%
From the above table it has been seen that the Gross profit of ice cream business is 5.2% in 2023
and it can reach up to 5.6% in 2024.
15

Net profit ratio
Name of the ratio 2023 2024
Net profit = (276/30000)*100= 0.92% (320/30000)*100 = 1.06%
The net profit ratio has been calculated as 0.92% in 2023 and in 2024 1.06%. From the above
analysis it can be stated that the profitability of the company can increase.
Current ratio
Name of the ratio 2023 2024
Current ratio = (59800/43000)= 1.4:1 (60000/45500) = 1.3:1
The current ratio in 2023 will be 104:1 and in 2024 it will become 1.3:1.
Quick Ratio
Name of the ratio 2023 2024
Quick ratio = (59800-25000/43000)=
0.88:1
(63500-30000/41500) =
0.8:1
Accounts receivables
16

Name of the ratio 2023 2024
Accounts receivables = (800/1000)*360= 288 days (700/2000)*360 = 126 days
From the above analysis 0.88:1 is the quick ratio and in 2023 and 0.8:1 will be in 2024. It will be
achievable in 288 days and in 2024 it will be on 126 days.
8.0 Recommendation
8.1 Conclusion
So, from here it can be concluded that to successfully implement the business of gelato delivery,
the Badiani Gelato Company must make sure to meet their break-even point. This means that
they must ensure that they sell at least 30,000 units per month. They must also make sure to
invest in the necessary physical resources such as delivery vehicles, storage containers, and
packaging materials, as well as the necessary suppliers with valid licenses and traceability
systems. Additionally, they must create an effective marketing strategy to attract customers and
build brand recognition. By ensuring all of these elements are in place, the Badiani Gelato
Company will be able to successfully implement their gelato delivery business.
8.2 Critical Review
The critically reviewable aspect of the Badiani Gelato company's delivery business is actually
determined by the break-even analysis. The break-even analysis can help determine the point at
which the company will be able to start making a profit from its operations. By calculating the
break-even point, the company can better assess how much sales it needs to generate in order to
cover its fixed costs and start making a profit. Additionally, the company can also use the break-
even analysis to analyze the pricing strategy of the business and determine how much it needs to
charge customers in order to break even. Furthermore, the company can also use the break-even
17

analysis to identify any areas of the business that can be improved in order to reduce costs and
increase profits.
8.3 Recommendation
To increase profit from the delivery business, Badiani Gelato can focus on expanding their
customer base by marketing and advertising their products more effectively. They can also lower
their variable costs by negotiating better terms with suppliers. Additionally, they can focus on
improving efficiency by streamlining their delivery processes and optimizing their route
planning. Finally, they can offer incentives such as discounts and loyalty rewards to customers to
encourage repeat purchases.
18

9. Reference
Dedhia, P., Shanmuganathan, S. and Livis, W., 2021. Business Plan and Analysis for uplifting
Small Business (SB).
Tien, N.H. and Ngoc, N.M., 2019. Related and Non-related Diversification Strategy of Domestic
Business Groups in Vietnam. International journal of advanced research in engineering and
management, 5(7), pp.12-17.
Prakash, S., Jasti, N.V.K., Chan, F.T.S., Sharma, V.P. and Sharma, L.K., 2022. Decision
modelling of critical success factors for cold chains using the DEMATEL approach: A case study.
Measuring Business Excellence, 26(3), pp.263-287.
Chetan Panse, D.S.R., Sharma, A.R.P.I.T.A. and Dorji, N.A.M.G.A.Y., 2019. Understanding
consumer behaviour towards utilization of online food delivery platforms. Journal of theoretical
and applied information technology, 97, p.16.
Frias, D., Muniz, C.C.S., Vieira, P.S., Sant’anna, D.S. and da Cunha Reis, A., 2020. Supply chain
risk mitigation through sales forecasting in a cosmetics company. Independent Journal of
Management & Production, 11(5), pp.1606-1623.
Tsarouhas, P.H., 2020. Overall equipment effectiveness (OEE) evaluation for an automated ice
cream production line: A case study. International Journal of Productivity and Performance
Management, 69(5), pp.1009-1032.
Bessaire, T., Stroheker, T., Eriksen, B., Mujahid, C., Hammel, Y.A., Varela, J., Delatour, T.,
Panchaud, A., Mottier, P. and Stadler, R.H., 2021. Analysis of ethylene oxide in ice creams
manufactured with contaminated carob bean gum (E410). Food Additives & Contaminants: Part
A, 38(12), pp.2116-2127.
Ontaneda, E. and Quiroga, G., 2020. Gaston Acurio: business model innovation and creation of a
Peruvian gastronomic brand. Emerald Emerging Markets Case Studies, 10(1), pp.1-14.
Konietzko, J., Bocken, N. and Hultink, E.J., 2020. A tool to analyze, ideate and develop circular
innovation ecosystems. Sustainability, 12(1), p.417.
da Cruz Rodrigues, V.C., Duque, A.L.R.F., de Carvalho Fino, L., Simabuco, F.M., Sartoratto, A.,
Cabral, L., Noronha, M.F., Sivieri, K. and Antunes, A.E.C., 2020. Modulation of the intestinal
19

microbiota and the metabolites produced by the administration of ice cream and a dietary
supplement containing the same probiotics. British Journal of Nutrition, 124(1), pp.57-68.
Almena, A., Fryer, P.J., Bakalis, S. and Lopez-Quiroga, E., 2020. Local and decentralised
scenarios for ice-cream manufacture: A model-based assessment at different production scales.
Journal of Food Engineering, 286, p.110099.
Zuhdi, S., Rainanto, B.H. and Apriyani, D., 2020, May. Analysis of co-branding strategy to
Improve Company’s competitive power (case study on walls selection Oreo). In 2nd
International Seminar on Business, Economics, Social Science and Technology (ISBEST 2019)
(pp. 146-149). Atlantis Press.
20

10. Appendices: USP
Appendix 1: USP of the business
Speaker Note: The unique selling points of the Badiani Gelato delivery business are its
convenient and cost-effective delivery plan, use of insulated boxes and cold packs to keep the ice
cream cold during transport, and GPS tracking system to monitor their deliveries. These features
enable the company to provide a reliable, high-quality service to customers while ensuring that
their gelato is delivered in the best possible condition (Komala and Agus, 2020). The use of these
features also helps to create a competitive edge over other competitors in the market, giving the
company an advantage in terms of customer acquisition and retention.
21

Appendix 2: Marketing Mix
Speaker Note: Badiani Gelato's Company delivery plan offers a wide range of freshly prepared
gelato flavors in attractive packaging for customers to choose from. The customers get value for
their money and are satisfied with the product (Erbas, 2019). The delivery personnel are well
trained and ensure that the orders reach the customers within the specified time. This includes
advertising through traditional and digital mediums, offering discounts and loyalty rewards, and
launching new products to keep the customers engaged.
Appendix 3: Competitors analysis (Porter’s analysis)
22

Speaker Note: The threat of new entrants for Badiani Gelato is low as it requires high
investments for delivery vans, license, brand recognition and capital to build a gelato delivery
business. The bargaining power of suppliers is low because of the high competition in the market
of gelato. The bargaining power of buyers is low as there are many competitors in the market
providing the same product and there is a huge availability of gelato in the market (Tsarouhas,
2020). The threat of substitute products is low as gelato is a unique product and there are no
other substitutes that can match the taste and quality of gelato.
Appendix 4: Key project Financials
23

24

Appendix 5: Investments
25

Reference List
● Komala, G.T. and Agus, A.A., 2020, September. Information Technology Systems in
Supporting Outbound Logistics: Study of Low-End Ice Cream Distribution Business in
Indonesia. In 2020 3rd International Conference on Computer and Informatics
Engineering (IC2IE) (pp. 230-235). IEEE.
● Erbas, D.G., 2019. Identification and application of most important stages of strategic
planning on local US Business. TURAN-SAM, 11(43), pp.462-467.
● Tsarouhas, P., 2020. Reliability, availability, and maintainability (RAM) study of an ice
cream industry. Applied Sciences, 10(12), p.4265.
26