Analysis of Badiani Gelato's Ice Cream Delivery Business Plan

This document provides a comprehensive analysis of Badiani Gelato's ice cream delivery business plan. It begins with an executive summary highlighting the company's dedication to delivering high-quality gelato using freezer vans in Central London. The analysis covers various aspects of the business, including its legal structure as an LLC, its aim to provide a convenient delivery service, and its product offerings, which include ice cream, sorbets, and vegan options. The document also delves into market and competitive analysis, including market size estimation, segmentation strategies, SWOT analysis, and Porter's five forces analysis. Furthermore, it examines the company's business strategy, marketing mix, growth strategies, operating plan, physical resource requirements, and financial projections, including income statements, balance sheets, and cash flow statements. The analysis concludes with recommendations and a critical review of the business plan.

ICE CREAM DELIVERY BUSINESS PLAN ANALYSIS
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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.
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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
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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
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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.
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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.
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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
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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
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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
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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
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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.
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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
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