Business Plan for Store Fresh Grocery Company in UK
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The report discusses the business plan for Store Fresh Grocery Company in UK, including feasibility study, competitive and STP analysis, Osterwalder's business model canvas, and Porter's value chain. It also covers the marketing strategies, financial techniques, planning tools, and decision-making models used by the company.
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Table of Contents INTRODUCTION...........................................................................................................................1 MAIN BODY...................................................................................................................................1 1. Conduct a feasibility study of your new venture concept. Using relevant conceptual frameworks, critically discuss the view that entrepreneurs are the engines of innovation and creativity.................................................................................................................................1 2. Conduct a competitive and STP analysis to critically explore the opportunity gap in the market, supporting your analysis with relevant data drawn from extensive market research.3 3. Drawing on Osterwalder’s business model canvass and Porter’s value chain, discuss your proposed business model and explain how and why you think your new venture will work.5 4. Critically discuss the business and marketing strategies that entrepreneurs follow to find success. Explore the common mistakes that first-time entrepreneurs make. Also, discuss the strategies used for growth, consolidation and underperformance..........................................8 5. What are the financial techniques, planning tools and decision-making models that you could use to assess and mitigate your risks............................................................................8 CONCLUSION..............................................................................................................................10 REFERENCES.............................................................................................................................11
INTRODUCTION The report is mainly discuss about the business plan it is basically related to the grocery store and the name of the company is Store fresh which are established in UK country and the main goal and objectives of this business is to capture the UK market with their products and services also the main motive to earn high profits(Ayodya, 2018). Along with this the objective of the company is to attain customer trust and high sales revenue of the organization. Also the new innovation and creativity company perform to improvise the service and quality of their products. In another part it also evaluate the competitive and segmented targeted positioning which create an opportunity gap in the UK market for the Grocery business. Afterwards, in another instance they want Osterwalder's business model canvas and porter's value chain of Store fresh and they also want to know the working of new company how it will work and achieve their targets and goals very effectively and efficiently. Apart from this in another part they want to know the marketing strategies of the company which they are use to get success and the type of common mistakes every entrepreneur first-time create in their business and the strategic plan they use for the growth, consolidation and underperformance. At last it identify some financial methods, planning tools and decision making models that company use to reduce the risks of the organization. MAIN BODY 1.Conductafeasibilitystudyofyournewventureconcept.Usingrelevantconceptual frameworks, critically discuss the view that entrepreneurs are the engines of innovation and creativity. The report discuss about the new company with the name ofstore fresh grocery company. This business is established in UK and its provide superiority of commodities and services to their customer and it established with one of the major goal to capture the market of UK country and want to make more consumer in their organization by giving the products and services to them(Đuretek, 2020). They mainly deals in all types of grocery product which are basically use by the households of UK. Also the main motive of the company is to attain the high sales revenue and earn more profits by introducing new innovation and creativity in the business. Because the innovations and creativity helps the business to grow and attract more and more 1
consumers. It automatically increase the sales revenue of the new business venture but it only possible when business come up with the new innovation as compare to their competitor it also reduce the customer of the competitors and help business to achieve heights in the economy of UK. If business wants to develop their business and want to established in long run then they need to start with the appropriate price of the product. Because if they start with high prices then it create difficulty for the new venture to survive in the competitive market(Ferreira and da Costa Nascimento, 2020). Because the competitors who are already established their business they are already in demand of the UK customers. So, they not shift their service directly to the other grocery business. For the survival of the business new established company need to come up with new innovations and creativity which mainly helps to grow the business and increase its demand in the competitive market. The innovations and creativity Store fresh company use their business can be : Advanced robots assists to clean the Store fresh grocery business: After the pandemic the sanitization and proper hygiene is very important point for the UK peoples. So, they use ultraviolet disinfecting robots to clean the floors, shelves and checkout lanes. Customers and employees heath is the prime concern of Store fresh firm(French, Dekker and Hartig, 2018). Companyuse AI andestimatedtechnologymajorlydeclinewastageof foodand maximize grocery incomes: This type of technology analyse the stock of the company, sales information which helps to adequately predict the demand. It helps to reduce the over stock in shelves and it create more profits for the Store fresh company. Because of this technology the shelves of the company are well managed and reduce the expenses also. Firmusetouch-lesspaymentcheckoutswhichindicatestheuniquenessofthe organization: Store fresh grocery department use touchless payment technique they use smart self technique such as Zippin and Trigo and computer display-powered kiosks they give customers with a big-range of alternatives checkout and its completely different from the the other competitors store. This type of innovations and creativity helps the business to attract their customer towards their product and its is the duty of venture to provide quality of service to them. 2
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2.Conduct a competitive and STP analysis to critically explore the opportunity gap in the market, supporting your analysis with relevant data drawn from extensive market research. Store fresh competitive market analyses The Store fresh grocery department mainly analyse the competitive market of the UK country first to identify the needs and desire of the customer(Kamal Jamal, 2018). So, it will help the company to introduce the type of product in market which are more in demand. There are some method use by the Store fresh to analyse the competitive market: Determinethecompetitors:ThemainfunctionofStorefreshbusinessistoget information about the customer like; what type of technology they are use to provide good services to their customers and the innovative ideas they use to achieve the better growth in the market. Examine the competitors goods offering: This is also one another major function of Store fresh they perform to analyse in whichprice competitors offer the goods to their customer. Also, It will help the company to set the appropriate price of their product which mainly helps in increasing the demand of their business. Identify the satisfaction level of competitors customers: This is one of the most important function of to determine the customers satisfaction level of their competitors because it is one of the major aspect to analyse what quality of service and product they are offering to their customer and the reason for their satisfaction towards the company product. Store fresh grocery use this method to capture the market of UK(Le Dinh, Vu and Ayayi, 2018). Understand the competitors marketing plan to capture the UK market: Store fresh grocery store use this method to determine the marketing strategy of their competitors. It helps the company to market their product and easy to attract the customer towards their goods and services. Segmented target positioning analysis of store fresh Basically, the model is helpful when creating market communication strategy. It helps the firm to examine the market segmentation, target of the business and the position of the business 3
in the current competitive market. It Described Segmented target positioning of the company briefly which are given below: Segmentation market:This communication method helps to determine the customer requirement and segment the market(Maza Solórzano, 2020). Store fresh company before introducing any product identify the customer needs and wants because it helps the company to attract the customer towards the products and services if they are fulfilling the needs and wants of the consumer and they divide the market and send its marketing team for the direct interaction of the customer it helps the consumer to understand the needs and wants and the current trends in the market. It provide an assistance to the company for producing trending product and leads to increase the sales revenue of the new venture. Target market; After the completion of segmentation process or identifying the customer needs. Then it will target those market which they will get good response. They have some source to target the market such as it can select through online targeting, online revenue contribution for each segment, consumer life-cycle targeting. It will help the consumer to attain their objectives(Minasyan and et.al., 2018). Store fresh grocery department mainly targets the women, children's above the age of 15 these are the targets of the business because they usually spend more on the grocery items like clothes, fruits and vegetables, household items and shoes. Market positioning: After the target market, Store fresh analyse the position of its business venture as compare to their competitors. It mainly helps the firm to analyse the current position of the company in relation to their and its position in the UK market. Basically company need to check the techniques and various types of decisions other grocery store perform to grow their business and also the profitable situation of the company(Nagl, 2020). So, with the help of this techniques and decisions company innovate some new ideas to grow and develop their business and create the demand of their product in competitive market. 4
3.Drawing on Osterwalder’s business model canvass and Porter’s value chain, discuss your proposed business model and explain how and why you think your new venture will work. Osterwalder’s business model canvass of Store fresh Key Partners Companymanufactures and distributors Big Brands Contract productions logistics firms suppliersand organizationsata geographical and global level Bankingandpetrol industries Otherpartners(Virgin Atlantic airlines, Astra- Zeneca and Telco) Key activities Pricing Highlyeffective distribution approach Marketing Examine customer demand warehousing purchasingand sellingof customer products Diversification Value Propositions Better prices Broad availability Broad chosen security online purchasing Storefresh coversall segments of the market diversification ofCompany ( Gas, banking andtelecom industries)how andwhyyou think your new venturewill work. Customer relationships Buildtrust among customers:Itis verynecessary toachievethe trustofthe customerby providinggood quality service(Narvaez, Bonillaand Montenegro, 2020). Online retailing loyalty Online purchasing self-service society Customer service Understandabilit y of brand long-term 5
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relation payinStore freshwiththe phone. Customer segments Housewife Student Old age people Segmentation according tothelow-middle income(Prinsich, 2021). Simple going traditional lifestyle. It covers huge market. Key resources Store fresh is new business established in UK marketand providethe groceryrelated items. Storesand logistics funds Associated network warehousingand logistics IT infrastructure They have its self ownedsupply chainand distribution channels Storefresh developeda mobilepayment wallet Channels Superstore Supermarket petrol industries Storefresh websites Online stores Mobile applications social media Gift cards Events Hypermarketho w and why you think your new venturewill work. 6
Porter's value chain of Store fresh Bargaining power of buyer:This porter's five forces model helps the company to analyse the bargaining power of the customer. If the product price of any business is high then buyer switch the company and shift to the another company for purchasing the product. With the help of this model company analyse the bargaining power of the buyer(RODRÍGUEZ MORENO, 2020). Distributor bargaining power:The bargaining power of the supplier is less because they depends upon the items of grocery and food retailers and fear to destroying its company relations with supporting supermarkets. Also the Store fresh and another big food retailers have a good opportunity of bargaining of food items prices and other products. Rivalry strength:This porter model helps to check the strength of the other competitor firm. It mainly helps to identify what techniques and new innovations they used to develop their grocery business. It includes some rivalry Firms; TESCO, SAINSBUY, etc. Threat of alternative products and services:Food items in grocery business is replaceable but it includes some other goods which are not replaceable and threat to substitute. In that case the product of the company is not unique and it reduces the sales of the company. New entry threats:Every firm who try to capturing the market they always have a threat of new entry because of this it have a possibility to reduce the sales of the existing business. If the new entry is come with new idea or innovation. How and why you think your new venture will work. The Store fresh company who mainly deals in grocery store it will definitely work because company come with new idea and innovation in the market. They have a main motive to earn profit but they also provide the good quality product and follow all the safety measures which are beneficial for the company employees and customer. They also work very efficiently to achieve their targets and objectives in a very effective manner.If they continuously work like this then they will definitely accomplish their goals and capture the UK economy rapidly. 7
4.Critically discuss the business and marketing strategies that entrepreneurs follow to find success. Explore the common mistakes that first-time entrepreneurs make. Also, discuss the strategies used for growth, consolidation and underperformance. Marketing strategies which used to fuel the growth of the company Store fresh are as follows: Socialmediamarketing:Storefreshcanusesocialmediaplatformtodevelop community around the brand. This is a very cheap and effective method of marketing. Store fresh cancreatetheirpresence on varioussocialmediaplatformsand run advertisements on them. Search engine optimization: this is a most effective way to introduce business in the market. Many people searching online for data and SEO take forward the brand site from the website traffic(Steinbacher, 2020). Through strategic SEO, Store fresh can introduce itself to leads with a high need state or purchase intent, which can make this kind of business easier to close. There are Common mistakes that first-time entrepreneurs make are discussed below: Avoiding market risks: ignoring market risks is the one major reason behind companies failure. Many founder mainly focus on perfecting their technology platforms. Avoiding constructive feedback: Founders should give importance to the feedbacks of potential customers and take action accordingly. Hiring wrong team: Founder has to hire employee on the bases of their capability and talent or skills. Many founder hire staff according to the salary requirement in order to decrease the cost. Company using many strategies to create base in the marketplace(Terrisse and Jougleux, 2018). Company has to give more importance to the customer needs and wants and prepare product according to their needs. 5.What are the financial techniques, planning tools and decision-making models that you could use to assess and mitigate your risks Risk mitigates refers to the procedure of planning and developing methods that help to decrease the risk to project goals and objectives. There is high risks in the new start-ups so Store 8
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fresh has to analyse this risk and increase the capability to meet these risks. There are various type of financial techniques, planning tools and models of decision making that help to identify the upcoming risks. Mainly there are five strategies that help a firm to identify the project risks: 1. Accept and predict risk: This acceptance strategy is used for assessing and understanding the risk that might affect output and the main motive to this strategy is to convey risk to the business so they can meet these risk in more efficient manner. Risk impacting cost: This strategy mainly focus on the risk with affect the cost of production. Store fresh use this strategy to control the wastage of costs which increase the profitability of the firm. Riskimpactingperformance:therearevariousriskswhichimpacttheoverall performance of the organisation it influence the productivity, product performance and it accepted as a part of planning(Trabucco, 2018). 2. Avoidance of risk: This strategy analyse the risk or consequence of this business and present opportunities for avoiding these risk. This strategy is also known as avoidance strategy. Store fresh make a plan to understand the risk and also take actions to avoid them. Performance risk: there are various risks such as lack of resources, improper design, can allow management to understand possible measures to avoid this risks. For example: if a product is designed in new way and the sale of product is decreased so company take steps to avoid new design and carry old one. 3. Controlling Risk: this strategy taken into consideration when risk is not avoidable. This strategy suggest actions to reduce and implement these actions to eliminate the risk effect. It control the risk factor to achieve success in near future. Handling risk to schedule: Control methods includes tracking the time taken by the project team to complete each task and allotting specific task among team members. Time management strategy help Store fresh to control risk related to project timeline or scheduling. 4. Transference of risk: the main motive of this strategy is to transferring the stress of the risk to the another parties. This risk occurs when work of one department affect the working as well as outcomes of another department. This strategy present its own disadvantage. 9
Transference for performance: when production department make a new product and there is defect in theproduct. The defects are not directly caused by issues in manufacturing department but it is caused by issue with the purchased material form outsider. Performance of department can transfer the risk of miscommunication. 5. Watch and monitor operations: Production teams might use this strategy as part of a standard project review plan. Cost, scheduling and performance or productivity are all aspects of a project that can be monitored for risks that may come up during the completion of a project. Monitoring cost: This strategy help business on order to track the overall risks on the business and prepare report to highlight each expenses or the operations. This allow teams to continuously determine the budget and make changes in budgets accordingly. CONCLUSION As it is concluded from the above report that the Store fresh grocery business is UK based company which mainly deals in all the household and various other products. They have objective to earn high profit and capture the market of UK by providing the better products and services to their customer. Company use various innovative techniques to attract the customer towardstheirproduct.Italsousevariouscompetitiveanalysesandsegmentedtargeted positioning for the business. Also it is use the business canvas model and porter five forces model to analyse the consequences in grocery business. Apart from all this it also express some marketing strategy company use to achieve success in their business and at last it financial methods, planning tools and decision-making theory to reduce the risk of the company. 10
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