Aiyla Food: Business Plan for Traditional Confectionery Outlets

This business plan outlines the strategy for Aiyla Food, a confectionery business targeting the Singapore and Malaysia markets. The plan details market segmentation, focusing on attracting consumers of traditional desserts. It covers the product offerings, which include traditional confectionary and desserts, with customization options. A comprehensive analysis of competitors, including ice cream shops, supermarkets, and bakeries, is provided, highlighting Aiyla Food's competitive edge through unique offerings and superior quality. The marketing strategy focuses on customer information and location. The sales strategy forecasts modest growth in the first year, with projected increases in subsequent years. The management summary discusses hiring and training. The financial plan includes assumptions about economic growth and technology. Break-even analysis and profit and loss projections are presented, along with references supporting the business plan's concepts.

Running head: AIYLA FOOD
AIYLA FOOD
Name of the Student
Name of the University
Author Note

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Table of Contents
Introduction................................................................................................................................2
Market Segmentation.................................................................................................................2
Products......................................................................................................................................3
Target Market Strategy..........................................................................................................3
Service Business Analysis......................................................................................................3
Competition................................................................................................................................4
Competitive Edge...................................................................................................................4
Marketing Strategy.................................................................................................................4
Sales Strategy.........................................................................................................................5
Management Summary..........................................................................................................5
Financial Plan.............................................................................................................................6
Break-even Analysis..............................................................................................................7
Projection of the Profit and Loss............................................................................................7
Conclusion..................................................................................................................................8
References..................................................................................................................................9

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Introduction
The business proposal plan which is being presented in this report is being done for
the organization named Aiyla Food. The plan is being made on the basis so that it has an
intention to overcome the uncertainties which will be faced and will help in achieving the
profitability upon this strategy. Through this business proposal, it will help the owner of the
organization to forecast the revenue that will be generated from the investment. The main aim
of a successful management is to have feasibility that will help in the working environment of
the employees. With a successful management, it will help in saving various costs and
employees will also work will full efficiency. The Aiyla Food is mainly focused on the
manufacturing and selling of traditional confectionary and desserts, and there will be outlets
in Singapore and Malaysia.
Market Segmentation
The business model will be prepared in such a way through which Aiyla Food can
offer good quality product and the staffs will also provide an excellent service to the
consumers. Aiyla Food mainly focus on the demand of the local markets and also want to
attract the consumers of the ice cream shops as it also offers different type of cookies that are
made with ice cream and desserts (Shabo 2017). The business operations that will be carried
out will be should have all the factors like innovation, uniqueness and contemporary. It will
also help in the development of the operations that will be carried at the time of production.
With a strong workforce, it will have a competitive advantage upon the rivals of the similar
industry. The Aiyla Food should focus on the quality of the products that will help in keeping
goodwill within the consumers and will make more sales if they offer new kind of product
that the competitors do not offer.

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Products
Aiyla Food have a comforting atmosphere, that attract the consumers exceptionally
and sells confectionary and desserts that are exceptionally well compared to the other
competitors. The consumers have the opportunity to look into the dessert at the time of
preparing it as it can be customized as per the choice of consumers (Mishra 2016). Aiyla
Food also take special orders if there is any event for example wedding anniversary, birthday
parties, engagement ceremonies etc. There is also possibility that the chefs will carry out
offers for the preparation of desserts and they also provide classes those who are interested in
the preparation of desserts (Skoog and Trosdahl 2017). There are also special offerings which
is specially given to the moms that will provide help in preparing their food and cookies for
their children.
Target Market Strategy
There are many areas that are targeted segments by Aiyla Food, which the consumers
appreciate the deserts and for the comfort which is provided. It is heaven for the consumers
who wants good services and those who want to treat themselves very well. The consumers
will appreciate all services that Aiyla Food will provide.
Service Business Analysis
Aiyla Food is utmost creating a niche market in the industry of traditional
confectionary and desserts. There are already similar competitors those who will compete in
the market, the business that will make competition with are listed below:
 Ice Cream Shops – Baskin Robbins and Cream & Fudge.
 Supermarkets – In some bakery stores they kept some bakeries which are frozen, this
shops will create a competition with Aiyla Food.
 Restaurants – There are restaurants which offers desert, it will come against Aiyla Food.

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 Coffee and Donut shops – The shops that will offer pastries will have some competition.
 Bakeries – Normal bakery centers.
Competition
There are several outlets in which there are offerings of the desserts, bakery items and
ice creams. The offerings that Aiyla Food give, will have different experiences and have a
superior quality in comparison to the other competitors (Museum Store Association 2016).
The facilities that Aiyla Food provide, consumers will not get if compared to the other
competitors as no professional chefs will not prepare the desserts in front of the consumers.
One of the most important factor that has been help Aiyla Food to compete against the ice
cream and the coffee shops is the price of the products and it is also important to maintain the
quality of the products. There is also options, through which the customization is being
provided if the customers want with a little extra payment for the quantity (Kim and Kim
2019). It is also important to value the consumers and their requirements what the consumers
want, and if Aiyla Food can provide the sweets as per the demand of consumers then the sale
of products will increase and simultaneously the revenue of Aiyla Food will also increase.
Competitive Edge
In the old market, there is more competition as there is a unique niche. There are
various cafes, ice creams shops and bakeries that will help to establish a position in the
market place (Sheldon 2016). Aiyla Food will offer a new experience to the consumers and
also the quality of the products that has been provided will be far superior.
Marketing Strategy
The strategy that Aiyla Food will follow at the time of marketing is that, at first they
will want the information from the customers and then they will approach after they got all

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the requirements from the consumers. Aiyla Food will to become one of the shops that will
provide the consumers with a unique diving experience and will be a superior pastry shop
(Břežná 2017). The consumers will reach all the consumers through newspaper
advertisements, fliers and certain promotions at the time of holiday. One of the important
thing that will help Aiyla Food, is the location. It plays an important factor in the marketing
and promotion. As it is located in one of the famous places in world i.e. Singapore and
Malaysia, it will be very helpful as it is one of the highest traffic retail area. Aiyla Food will
have targeted and some progressive consumers, that are usually well educated and are also
very much interested in trying new products and those who had a bad experience in the past.
Sales Strategy
The sales that has been forecasted in Aiyla Food, will has a modest estimate in the
first year of the operations. After the establishment of Aiyla Food, there will an assumption
that the sale will be progressive in the following years (Guryčová 2017). The cost of sales is
being usually assumed is usually upon the average food cost. If the cost of the products is
kept competitive then there will be an increase in the sales and further there will be increase
in the profitability.
Management Summary
The hiring of the employees will be at a very low speed as the majority of the work
will be done by the full time chefs. The new employees that are recruited will be provided
training by the experienced employees, that will help the if they are capable enough then they
will be promoted to the leadership position (Morozova 2015).

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Financial Plan
It is important to have a successful financial plan, as it is being established as an
organization. There are some of the assumptions that are discussed below:
 It has been assumed that there will be a slow growth in the economy and there
should not be any major recession.
 It has been assumed that there will be no certain changes upon the technology at the
time of making products will be obsolete immediately.
 It has been assumed that there will be access to the equity capital and there will be
sufficient finances so that there should be maintenance of the financial plan that has
been projected.
Basic Information:
Investment in fixed assets 1,000,000
Working capital 50,000
Total Investment 1,050,000
Minimum expected return 6%
Expected sales price per unit 30
Expected annual demand 40,000
Increase in demand 5%
Variable cost per unit 22
Annual fixed costs 80,000
Profit Analysis and Cash Flow Projection:
Year 0 1 2 3 4 5
Sales revenue 1,200,000 1,260,000 1,323,000 1,389,150 1,458,608
Variable costs 880,000 924,000 970,200 1,018,710 1,069,646
Gross profit 320,000 336,000 352,800 370,440 388,962
Fixed costs 80,000 80,000 80,000 80,000 80,000
Net Profit 240,000 256,000 272,800 290,440 308,962
Investment (1,050,000)
Net cash flow (1,050,000) 240,000 256,000 272,800 290,440 308,962
Discounting factor 1.0000 0.9434 0.8900 0.8396 0.7921 0.7473
Discounted cash flow (1,050,000) 226,415 227,839 229,048 230,056 230,874
Cumulative discounted cash flow (1,050,000) (823,585) (595,746) (366,698) (136,642) 94,232
Fraction in year 0.5918

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Net Present Value (NPV) 94,232
Internal Rate of Return (IRR) 9.10%
Discounted Payback Period 4.59
Return on Investment (ROI) 26.06%
Breakeven Analysis:
Sales perice per unit 30
Less: Variable cost per unit 22
Contribution margin per unit 8
Annual fixed costs 80,000
Breakeven sales in units 10,000
Breakeven sales in amount 300,000
Sensitivity Analysis:
NPV IRR Payback ROI
Discount Rate 94,232 9.10% 4.59 26.06%
6% 94,232 9.10% 4.59 26.06%
7% 62,446 9.10% 4.72 26.06%
8% 62,446 9.10% 4.72 26.06%
9% 62,446 9.10% 4.72 26.06%
10% 62,446 9.10% 4.72 26.06%
Break-even Analysis
In calculating the break-even analysis, there are running costs so that there will be
fulfillment of the rent, payroll, utilities, and there will be estimation of the other running
costs.
Projection of the Profit and Loss
In projecting the profit and loss, it is being assumed that there will be increase in the
sales as the year changes (Do 2017). It has been assumed from one of the oldest organizations
in that region is that there is increase of 50 percent sales, it is being assumed that Aiyla Food
can match that level in recent years.

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Conclusion
In this report a business plan is being provided upon the Aiyla Food, that usually sales
ice creams and deserts in the region of Singapore and Malaysia. All the strategies that will
help in making the organization successful is being provided here so that it can give a tough
competition to the competitors. A financial plan is also provided so that it will help in the
projection of the revenue in the future years.

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References
Břežná, A., 2017. A Business Plan for a Gluten-Free Bakery.
Do Tu, L., 2017. Business Plan a Vietnamese Coffee Shop in Helsinki.
Guryčová, J., 2017. Design Café: A Business Plan.
Kim, S.B. and Kim, H.K., 2019. The Effect of E-WOM Quality of Dessert Cafe on Perceived
Value and Visit Intention. Asia-Pacific Journal of Business Venturing and
Entrepreneurship, 14(2), pp.199-209.
Mishra, C.S., 2016. Business Model Design: A Course Overview. Available at SSRN
2781683.
Morozova, L., 2015. Business Plan for Pancakes and Crepes Cafe.
Museum Store Association ed., 2016. The New Store Workbook: The Essential Steps from
Business Plan to Opening Day. Routledge.
Shabo, S., 2017. Desert Rose Wedding Hall business plan (Doctoral dissertation).
Sheldon, D.R., 2016. A Business Plan for a Norton Vineyard To be Established in Virginia.
Skoog, C. and Trosdahl, K., 2017. Strategic Business Plan for Christine's Sweet
Confections (Doctoral dissertation, The College of St. Scholastica).