Business Plan for Sip and Bites: SWOT, PESTLE, Competitor Analysis, STP, Marketing Mix, Financial Budget
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This business plan includes SWOT, PESTLE, Competitor Analysis, STP, Marketing Mix, Financial Budget for Sip and Bites, an organization providing healthy and diet conscious drinking products to its customers.
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TABLE OF CONTENTS MAIN BODY...................................................................................................................................3 Overview.....................................................................................................................................3 SWOT analysis...........................................................................................................................3 PESTLE analysis.........................................................................................................................4 Competitor analysis.....................................................................................................................6 Operational and legal plan..........................................................................................................6 STP..............................................................................................................................................7 Marketing mix.............................................................................................................................8 Financial budget..........................................................................................................................9 Monitoring and controlling.......................................................................................................10 REFERENCES..............................................................................................................................12
MAIN BODY Overview Sip and Bites is an organization which will be providing healthy and diet conscious drinking products to its customers. This is going to be an health food organization which will consist of both packed food and take away option for recently cooked meals. This organization will be able to bring new and more innovative products in the market with the help of research and development. The platforms it will use for marketing are going to be the traditional marketing methods and also the digital marketing. For this business the focus will be on bringing creativity in its menu with the combination of drinks and meal which is healthy and delicious at the same time. MISSION To provide the customers with great quality of food which is healthy and economic in price, along with a great customer experience in the market. VISION It is to influence the customers in believing the food products of Sip and Bites which are going to provide delicious healthy food to its customers with the best possible services. OBJECTVIES ï‚·To increase the position of company within market by 20 % within next 6 months. ï‚·To increase the number of repeat consumers by 24 % till next 8 months ï‚·To increase the investment by 20 % in the marketing and technology upgradaiton. SWOT analysis This SWOT analysis is an analysis which will explain the internal factors in which the following are going to be discussed. Strengths : The strengths of this organization will revolve around the product of this organization which will consist of the healthy food. This type of food and drinks will be providing the organization with sustainability it requires in the current market were the customers are more focused towards their health. The aim of this organization is to develop a key strategy which is
considered to be effective towards the management of the organization and its products (Nugeroho and et.al., 2021). Weaknesses : The total number of competitors which this business will face in this market will be the biggest weakness for this business. Due to this business having so many operations involved it will have to spend higher for the quality of talented employees. This results in increasing the total cost of the organization. Due to the large number of competitors this organization will have to spend most of its earning in marketing and promotions. Opportunities : Quality of this product is an opportunity for this business as it will influence the decision-making of the customers towards this organization. Innovation and creativity is going to be the key factor for this organization that will help the business to grow its operation in the market and gain competitive advantage (Syrisko,2018). For this business collaboration with other food organization can be an opportunity to expand its business. Threat : For this business the biggest threat are the other company's which have similar business model that can turn into a direct substitute for this business. Management of quality and performance can turn into a real issue for this organization due to having so many business operations which can lead to exploitation of resources. This will decrease the organizational efficiency. PESTLE analysis This is the analysis which explains the external factors of the Sip and Bites such as, Political Factors : This being a UK established business will have to deal with the political environment in UK which has been affected due to the issues such as Brexit (Widya Yudha and et.al., 2018). The rules and regulation set by the government on the taxes related to the food products can be a direct impact to the business of Sip and Bites. It can be said that this business is considered to be the development of the organizational operations. Economical Factors : The economical factors which would impact the business of Sit and Bites are the inflation rate, employment rate and standard of living. Due to Covid-19 and Brexit the UK economy has
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been suffering from the last 2 years. This is the stage of recovery thus, for new business it can be considered to be a good time. It can be said that the growth of this business will also be impacted from the employment rates as it have so many operations will need to hire many employee due to which the business can face issues. Social Factors : Social factors such as the population of the country is factor which will influence the sales of this business. Other than that the social factor which is related to the importance of healthy products in the life's of the people is also going to be the key determinant which will influence the business. It can be said that the application of the business growth and practices can be considered to be the practice which will influence the decision-making of the organization. Technological Factors : It can be said that the efficiency of the business production depends on the quality of technology which it implements. Other than that technology can also be an expenditure which the business will be forced to make. Better technology is helpful for the business in utilizing it for better marketing and promotional practices. Utilization of technology can help the business bring innovation in its practices (Khalid and Rahman, 2019). Legal Factors: Laws which impact the business operations such as the company law and Employment act are to be followed by the organization. This business also needs to ensure that its products do not resemble products of other food organization as depending on of their intellectual property rights this business can be sued. The laws related to the Covid-29 guide lines can also impact the business as it can affect the operations of the business whether it can operate only online or through offline means. Environmental Factors : Along with being a healthy product it is also for the business to have its products developed in sustainable way such that it does not affect the environment. These factors involve the animals which are being killed for the products. It can also be related to the use of materials for the services which needs to be sustainability. In order to bring more sustainability this business can also focus on utilizing the 3 Rs, Recycle, Reuse and Reduce
Competitor analysis In order to analyse the competition for Sip and Bites the best method is to utilize the Porter's Fiver Force model. Existing Competition : In UK there are many organizations operating in the food industry. It can be said that as the competition in this industry is very high for a new organization like Sip and Bites it will be very hard to gain competitive advantage even with the healthy products (Snider and Davies, 2018). Bargaining power of customers : The customers of this organization have many options to choose their food from. This is the reason that the bargaining power of the consumers for this organization is very high. This means that the organization cannot increase its price about that of the market otherwise it will lose customers. Bargaining power of Suppliers : Due to having so many organizations which purchase from the supplies the bargaining power of the suppliers is also very high. This for Sip and Bites would result in it not being able to reduce its costs of production through bargaining with the suppliers. Threat of new entrant : In this highly competitive market the threat of new entrant is very low due to the high investment made by the existing organization which makes it hard for the organization establish itself without being in loss. It can also be said that due to certain rules and regulation of the government also the entrance in this market is very difficult (Boudreaux, 2020). Threat of Substitute : Being a health and food product this business has different types of food products which are directly or indirectly its substitute. Thus, this organization will have to keep the products very innovative and also different from other organization so that it can gain competitive advantages. Operational and legal plan For the success of the Sip and Bites it is very essential for them to develop the operational plan and team so that business can get successful. In case operational plan is not decided in proper manner then this will be affecting the working condition to a great extent. The operational plan includes the fact that company will be providing the option of dine in, take away
and online delivery services as well (Thomas and et.al., 2018). Further the operational team will include two managers, one HR and one finance manager as well. In addition to this, there will be three chefs and 7 waiters. With respect to the legal status the company will be using the method of sole proprietorship at the initial level. In case the business will flourish then the partnership or joint venture can also be used. STP The STP approach will assist Sip and Bites in deciding the segment and target which will help business in improving the customer number. The STP approach useful for the company is as follows- ElementDescription SegmentationThe segment involves dividing the consumer on the basis of some common characteristics. The segment selected for Sip and Bites is based of demographic and behavioural. The reason fortheselectionofthissegmentisthat demographicandbehaviouralinvolves consumerwithdifferentcharacteristicslike age,genderandonbehaviourallikeneed, preference, perception and others. TargetingThe target of Sip and Bites will be young people based on age who are health conscious (Ing, Osman and Tze-Yin, 2020). Along with this, the behavioural target will involve the people who are focused on their health and well being. PositioningThe positioning refers to as the building of image of product among the consumer that theyremembertheproductwiththeirkey feature. This is necessary and Sip and Bites will focus on the quality aspect that is good quality of ingredients will be used in order to
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attractandretaintheconsumerinbetter manner. Marketing mix The marketing mix refers to as the various decisions relating to the product and its promotion. It involves four different types of element which are as follows- ElementDescription ProductTheproductwhichSipandBiteswillbe focusing is the health drinks which will not be using any of the chemical or any substance which will be harmful for the health of person. Further the major ingredient will be organic and healthy products. PriceThe price is the amount which company will be charging from consumers in order to earn the profits. The pricing strategy used by Sip and Bites will be penetration pricing strategy (Nuh and et.al., 2020). The reason underlying this fact is that penetration pricing strategy will involve setting price at low at initial level and then increase the prices slightly. PlaceThe place refers to as the way through which the goods and services will be supplied to the consumers. The place which Sip and Bites will be using for the supply of product is both online and offline that is presence of physical stores. The company will be having its online websiteandthephysicalstoreswithinthe shopping malls and crowded public place. PromotionThe promotion is very important for Sip and Bites in order to get successful. The reason is
that in case promotion will not be good then consumer will not know about the feature of new product. Hence, for this, Sip and Bites will be focusing on the combination of digital and traditional marketing techniques. The digital willinvolvesocialmediamarketingand traditional will involve use of sales promotion like giving free sample, discount and others. Financial budget The finance is the most crucial element and in case finance will not be optimally used then this will be affecting the working efficiency of the business. The financial projection of Sip and Bites is as follows- Part icula rs Janua ry Febru ary Mar chAprilMayJuneJuly Aug ust Sept emb er Octo ber Nov emb er Dece mbe r Cas h inflo ws Ope ning cash inflo w4500 6637. 5 1002 0 13503 .98 1708 8.13 2077 2.88 24558 .13 2844 3.68 3242 9.2 3651 4.44 4069 8.78 4498 1.67 Sale s reve nue1145011679 1191 312151 1239 4 1264 2 12894 .56 1315 2.45 1341 5 1368 4 1395 7 1423 7 Othe r inco me215021502150215021502150215021502150215021502150 Tota l cash inflo ws18100 20466 .5 2408 3 27804 .81 3163 1.98 3556 4.61 39602 .69 4374 6.13 4799 4.7 5234 8.25 5680 6.26 6136 8.3
Cash outfl ows Mate rial 2862. 5 1751. 85 1786 .9 1822. 625 1859 .077 1896 .259 1934. 184 1972 .868 2012 .32 2052 .571 2093 .623 2135 .495 Labo r214521452145214521452145214521452145214521452145 Othe r expe nses2355 2449. 22547264927552865 2979. 82630993223335234863625 Adm inistr ation expe nses410041004100410041004100410041004100410041004100 Tota l cash outfl ows 11462 .5 10446 .1 1057 9 10716 .68 1085 9.09 1100 6.48 11159 .01 1131 6.89 1148 0.3 1164 9.47 1182 4.6 1200 5.91 Cas h defic it / surp lus or closi ng cash bala nce 6637. 5 10020 .5 1350 417088 2077 3 2455 8 28443 .68 3242 9 3651 4 4069 9 4498 2 4936 2 Monitoring and controlling Just making the plan is not enough, rather the company also need to have good monitoring and controlling measure so that plan can be effectively implemented. The reason behind this fact is that effective monitoring will ensure proper implementation and as a result of this business will grow. In order to monitor the current plan, Sip and Bites will be using the tool
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of KPI that is key performance indicator (Putra, Wahyudin and Hamdani, 2021). This KPI will be used for monitoring the implementation of the plan and as a result of this the plan will be successfully implemented. In the KPI technique the business will be having already set standard and the actual performance will be measured against those indicators. In case the actual performance will be better than the indicator set then it will be implied that the plan is implemented in proper and successful manner.
REFERENCES Books and Journals Boudreaux, C.J., 2020. The importance of industry to strategic entrepreneurship: evidence from the kauffman firm survey.Journal of Industry, Competition and Trade.20(1). pp.93- 114. Ing, P., Osman, Z. and Tze-Yin, L., 2020. Marketing Mix and STP Strategies: An Exploratory Study into Grocery Retailers in Malaysia.Asian Journal of Entrepreneurship.1(4). pp.129-143. Khalid, L. and Rahman, I., 2019. Conceptual Model for the External Factors Affecting Project Performance Using PESTLE Factors.Jour of Adv Research in Dynamical & Control Systems.11(3). pp.246-250. Nugeroho, A.A.U.,and et.al., 2021, March. Development strategy of small and medium food industry in Tangerang City with SWOT and AHP methods. InIOP Conference Series: Materials Science and Engineering(Vol. 1122, No. 1, p. 012038). IOP Publishing. Nuh, A., and et.al., 2020. Implementation Marketing Mix Strategy for Local Minimarket Facing on National Chain Store: Case PT Noor Halal Minimarket.Journal of Multidisciplinary Academic.4(3). pp.183-186. Putra, C. G. G., Wahyudin, W. and Hamdani, H., 2021. Development of Distribution Center Leu Mart Karawang with Feasibility Analysis, SWOT, STP, IFE EFE IE and Marketing Mix 9P.Jurnal Rekayasa Sistem & Industri (JRSI).8(02). pp.116-122. Snider,J.H.andDavies,K.J.,2018.Successstrategiesforsmallfinancialplanning firms.International Journal of Applied Management and Technology.17(1). p.4. Syrisko,Y.A.,2018.DEVELOPMENTOFTHEFOODINDUSTRYENTERPRISE STRATEGY BASED ON SWOT AND PEST ANALYSIS ON THE EXAMPLE OF" KING-BREAD"LLC.InRecentAchievementsandProspectsofInnovationsand Technologies(pp. 379-389). Thomas, R. S., and et.al., 2018. The US Federal Tox21 Program: A strategic and operational plan for continued leadership.Altex.35(2). p.163. Widya Yudha, S., and et.al., 2018. A PESTLE policy mapping and stakeholder analysis of Indonesia’s fossil fuel energy industry.Energies.11(5). p.1272. Online references Porter'sFiveForceModelofFoodIndustry,2018.[Online].Availablethrough <https://www.porteranalysis.com/porters-five-forces-model-of-food-industry/>