Fundamentals of Marketing: La Familia Business Plan

This document provides a detailed business plan for La Familia, a small cafe in the UK. It includes SWOT and PESTLE analysis, competitive analysis, marketing mix, and financials. The cafe aims to offer a variety of cakes and sweets at reasonable rates and sustain its brand image.

Starting a business and
Fundamentals of
Marketing (Core)

TABLE OF CONTENTS
Business plan...................................................................................................................................1
Executive summary.....................................................................................................................1
Overview.....................................................................................................................................1
Mission........................................................................................................................................1
Vision..........................................................................................................................................1
Objectives....................................................................................................................................1
Situational analysis......................................................................................................................1
STP..............................................................................................................................................3
Financials....................................................................................................................................6
Monitoring and control...............................................................................................................7
REFERENCES................................................................................................................................9

Business plan
Executive summary
The business plan is based upon small cafe name as La Familia which will be situated in
UK and for that cafe has to determine the internal and external business environment for that it
uses SWOT and Pestle analysis respectively. Further the plan includes competitive analysis in
which company compare different key aspects with their competitor in order to make further
decision. Also, this includes Marketing mix in which all 7 P's are used in order to determine the
promotional strategy of the Cafe. Lastly, budget will also be forecast which assist to identify the
expenses incurred while conducting the new business in market. Along with this, monitoring and
controlling strategies are also shows that assist to meet the define objectives.
Overview
La Familia will offer different varieties of cake their customer which include Victoria
Sponge, Battenberg Cake, Coffee and Walnut cake, Fruit cake etc. Along with this, quote cafe
will also offer range of sweets such as Jelly babies, Aero, Turkish delight and Wine gums at
reasonable rate that assist to attract range of customer towards it.
Mission
The mission of La Familia is to provide the best variety of product to their customer at
reasonable rates. The commitment of a company is to offer best customer service to their
employees which in turn leads to sustain the brand image.
Vision
With the help of offered product, company will never compromise with the quality of
food. To become a top restaurant at international level with best quality of product.
Objectives
 To sustain the brand image at international level within next 3 years
 To offer range of product which in turn increase the sales up to 5% in every years.
Situational analysis
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PESTLE Analysis
Political factor It is important to account for the relevant political factor that
might have an influence over the business. The company
requires looking after the political situation of the country in
which it is willing to operate and also analyzing the impact of
it over the business operation.
Economic factor The economic factors such as the purchasing power of the
customers and source of supply of material and so forth has
the potential to affect the operation business (Mukhtar,
Williams and Shaw, 2018).
Social factor The rapid change in trend and the requirement of the
customers has a huge impact over the sale of the products.
Therefore, this factor should be taken in consideration for
bringing new product in the market.
Technological factor The latest technology can be made use of which will help in
effectively meeting up with the product requirements. By
making use of the upgraded technology, will assist the Cafe in
effectively and timely meeting up with the changing
requirements of the business.
Legal factor All the relevant legal regulations pertaining to the food
regulation, health and safety standards should be complied
with in order to avoid government interference
(Malackanicova, 2016). This factor has a huge influence over
the business functioning.
Environmental factor Determining the negative impact of this business on the well
being of the environment and the steps that will be undertaken
for reducing the same such as effective waste recycling
system. If the company fails to do so, it will negatively affect
the reputation of the business.
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SWOT Analysis
Strengths
 Freshly baked cakes and sweets.
 Place of hygiene. Strong and positive attitude of
employees (Shewan, 2019).
Weaknesses
 Requires lot of capital to be incurred.
 Small range of products.
 Lack of resources.
Opportunities
 Upgrading to the latest technology Implementing attractive marketing
advertisement for grabbing more
customers.
Threats
 Many firms with similar business.
 Ineffective in complying with all laws
and regulations.
STP
Segmentation:
Identifying the different market segments based on the personal characteristics like
gender, ethnicity, occupation, age, marital status, location, education, society, loyalty towards
product etc. Based on segmentation, the different segments will be evaluated based upon the
expected revenue it will generate and how much it will be profitable and the factors affecting
their willingness to buy the product (Schlegelmilch, 2016). According to segmentation, the
selected target customer segment will be the people of all age group from kids to adults and for
the middle to upper income level.
Targeting:
Differentiated marketing strategy will be used for the purpose of promoting the product
to the different groups of customer. In this, separate offers are designed with uniqueness along
with stating the core vision of the cafe.
Positioning
In this, marketing strategies will be used for highlighting the USP of the product and
service to the customers for creating a brand image in the mind of the customers. As it will
attract and persuade the customers in making a visit to the cafe. The cafe will use its strength of
freshly baked products for grabbing more customers.
Marketing Mix
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It is refer to the set of actions and tactics which company used to promote the products or
brands within market. There are 7Ps of marketing mix which La Familia will uses and some of
them are as mention below:
Product: La Familia offer range of product to their customer such that different varieties
of cakes, sweets in which high quality of ingredients are used that assist to attract range of
customers (Kwok, Tang and Yu, 2020). Though the business is new established that is why, the
range are quite low as compared to other but company did not compromise with quality at any
cost.
Place: Being small in size, company operate only in UK where range of new products
will be offered. Also, once the customers will be set, then firm start offering online products to
their customers and this in turn leads to raise the financial performance. Moreover, the objective
of the company are met within next 2 years then it will assist to operate the unit of La Familia
within new country and as a result, brand image will be sustained.
Price: Cafe uses penetration pricing strategy in which products are offered at low price at
initial level with an aim to sustain the brand image at local area. Moreover, during off season to
attract the customers, La familia will also start offering discount in some cakes and sweets which
in turn maintain the cash flow within business (Whiteley and et.al., 2020). Also, during this
discount strategy company will tries to encourage new customers to buy the product because of
best quality.
Promotion: In order to improve the brand image and let customer know about the
product, quoted restaurant will use modern form of marketing tools which in turn leads to
improve the performance. Such that advertisement is post within social media like in Facebook,
Twitter that helps to draw attention of many customers towards it. Also, it offers discount
coupons or their regular customers that assist to improve the customer base.
People: The restaurant needed skill management who offer best service to their
customers. So the key people of the business are employees, customers and senior position
members who deliver the best service (HR and Aithal, 2020). Moreover, company keep
conducting training session which in turn leads to improve the results of a firm.
Physical Evidence: For La Familia, company's building. Table, menu card, uniform and
employees are consider the physical evidence which clearly reflect that these article belong to
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quote restaurant. Also, physical evidence represents the product quality and attraction for
customers.
Process: Process of La Familia is simple such that once the customer enters into the
premises they get warm welcome and then waiter takes an order and deliver fresh products as
per their requirement. After that, customer pay in the form of cash or online transaction. Thus,
all the records are kept in the form of bills so that future conflicts may minimize.
Competitive analysis:
Particulars La Familia The Little London
cafe
Sapori cafe and
Restaurant
Product It offer range of cakes such
as Victoria Sponge,
Battenberg Cake, Coffee
and Walnut cake. Further
delicious sweets are also
offered as per the
requirement (Mukonza and
Swarts, 2020).
It offer range of
product to their
customer such that
Pizza, coffee and
sweets etc at best
quality.
It offer different range
of coffee which no
other restaurant offer.
Along with it different
range of fast food
products are offer.
Price It uses penetration pricing
strategy in which product
are offer at low price
The company follows
penetration pricing
and bundle pricing
style in order to attract
range of customers.
It uses competitive
pricing strategy in
which prices may
varies as per the
demand (Guan and
Rowe, 2020).
Promotion Cafe only uses modern form
of marketing in order to
attract range of customers.
The quoted restaurant
use both modern and
traditional form of
marketing which
attract range of
customers (Arora,
Srivastava and Bansal,
It uses modern form of
promotional tools such
that social media such
that Facebook, twitter.
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2020).
Unique Selling
price
The raw material used by
the restaurant are fresh and
quality is best even the
price are low.
The offered products
are fresh and high in
quality. Also, the
customer service of a
product is best among
many restaurant.
Unique presentation of
customer service and
best ambiance is
consider as USP of
Sapori cafe and
Restaurant.
Financials
Sources of Finance
For the purpose of investing capital into the business, the company will make use of
personal cash being available along with it, the company will acquire the remaining amount
from the bank in the form of a loan.
Budget
Following is the financial budget for the next 3 years which is based upon the estimated
cost which the company is required to incur along with taking into account expected fluctuations
in the same.
Cost related details
Units sold in year 1 15000
Selling price per unit 25
Increase in sales 10.00%
Increase in cost of goods sold 6.00%
Increase in salary 5.00%
Increase in fuel cost 2.00%
Increase in supplies 15.00%
Foretasted income statement for 3 years
Particulars Year 1 Year 2 Year 3
Sales 375000 412500 453750
Less: Cost of goods sold 255000 270300 286518
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Gross profit 120000 142200 167232
Less: expenses
Bank interest 25 25 25
Repairs and maintenance of equipment 1500 1500 1500
Salaries and wages 1700 1785 1874.25
Electricity/gas 500 500 500
Telephone [phone]
Waste removal 200 200 200
Fuel cost 200 204 208.08
Sundry supplies 450 517.5 595.125
Promotion and marketing expenses 50 70 80
Total expenses 4975 5151.5 5332.455
Net profit 115025 137048.5 161899.545
Forecasted cash budget
Particulars Year 0 Year 1 Year 2 Year 3
Cash at beginning (capital invested) 20000
Cash received from sales 375000 412500 453750
Total cash available 20000 375000 412500 453750
Cash outflow (Expenditure to incur)
Cost of goods sold 255000 270300 286518
Other operating expenses
License 3000
Business insurance 2000
Bank interest 25 25 25 25
Registration of business 2500
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Repairs and maintenance of equipment 1500 1500 1500
Salaries and wages 1700 1785 1874
Electricity/gas 500 500 500
Telephone [phone]
Waste removal 200 200 200
Fuel cost 200 204 208
Sundry supplies 450 517.5 595
Promotion and marketing expenses 250 50 70 80
Legal charges for getting clearance 340
Total cash outflows 8115 4975 5151.5 5332
Net cash available 11885 370025 407348.5 448418
Monitoring and control
For ensuring success it is important to continuously review the performance based on the
set target and plan prepared. The company can make use of KPIs for effectively measure the
level of target achieved by the company. In case, the company fails to achieve the required target
as per the plan and then it can implement strategic action so that it can achieve its desired goals
and objectives in a better way and efficient way (Wohlers and et.al., 2020). Along with that
benchmarking system can be used by making a comparison between the outcome of the
company with the another company within the same industry which will help in evaluating the
results based on the processes, technology along with the products and services used. This assist
the company or the cafe 'La familia' in making changes which is boost the growth and
development of the company leading accomplishment of the set objectives.
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REFERENCES
Books and Journals
Arora, A., Srivastava, A. and Bansal, S., 2020. Business competitive analysis using promoted
post detection on social media. Journal of Retailing and Consumer Service. 54. p.101941.
Guan, C. and Rowe, P.G., 2020. Multi-criteria locational analysis for retail development in
small towns. The Geography of Mobility, Wellbeing and Development in China:
Understanding Transformations Through Big Data, p.156.
HR, G. and Aithal, P.S., 2020. Establishing True Lifestyle Brand in India: An Integrated
Marketing Mix Framework. International Journal of Management, Technology, and
Social Sciences (IJMTS),(June 2020).5(1). pp.261-284.
Kwok, L., Tang, Y. and Yu, B., 2020. The 7 Ps marketing mix of home-sharing services:
Mining travelers’ online reviews on Airbnb. International Journal of Hospitality
Management. 90. p.102616.
Malackanicova, B., 2016. Increasing the competitiveness and profitability of a small and
medium-sized enterprise.
Mukhtar, E. M., Williams, I. and Shaw, P., 2018. Visibility of fundamental solid waste
management factors in developing countries. Detritus. 1. pp.162-173.
Mukonza, C. and Swarts, I., 2020. The influence of green marketing strategies on business
performance and corporate image in the retail sector. Business Strategy and the
Environment.29(3). pp.838-845.
Schlegelmilch, B. B., 2016. Segmenting targeting and positioning in global markets. In Global
marketing strategy(pp. 63-82). Springer, Cham.
Shewan, D., 2019. How to Do a SWOT Analysis for Your Small Business (with
Examples). Retrieved November. 18. p.2019.
Whiteley, J.A. and et.al., 2020. Application of social marketing to recruitment for a digital
weight management intervention for young adults. Translational Behavioral Medicine.
Wohlers, B., and et.al., 2020. Monitoring and control of production processes based on key
performance indicators for mechatronic systems. International Journal of Production
Economics. 220. p.107452.
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