Business Plan for Beckas Bakery: New Product and Service Launch

This report presents a comprehensive business plan for Beckas Bakery, focusing on the launch of immunity booster cupcakes. The plan includes an executive summary, company overview, and product details. It conducts a thorough situational analysis using PESTLE and SWOT frameworks. The report delves into market and industry analysis, Porter's Five Forces, and competitor analysis. It outlines market segmentation, targeting, and positioning strategies, along with a detailed marketing mix. A financial plan is also included. The plan aims to capitalize on the growing health consciousness in the food and beverage market by offering innovative, health-focused bakery products. The report addresses various aspects of the business, from product development and market analysis to financial projections and competitive strategies, providing a detailed roadmap for Beckas Bakery's expansion and success. The plan targets the health-conscious consumers with immunity-boosting cupcakes and other products.

BUSINESS DEVELOPMENT
PLAN

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
BUSINESS PLAN...........................................................................................................................1
Executive Summary ....................................................................................................................1
Company Overview and Product Details.....................................................................................1
Situational Analysis ....................................................................................................................2
Market and Industry Analysis .....................................................................................................4
Competitor Analysis ...................................................................................................................5
Market Segmentation, Targeting and Positioning.......................................................................6
Marketing Mix.............................................................................................................................7
Financial Plan...............................................................................................................................8
CONCLUSION .............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Small business enterprises generally deal with the established and known products as
well as services. On the other entrepreneurial ventures pay attention towards the new and
innovative offerings. Entrepreneurs are individuals who start and run business with a limited
number of resources and planning them accordingly. They have to undertake all the risks and
rewards of the business and their business ventures. Business idea encompasses new products or
services rather than existing business model. Entrepreneurial venture target higher returns with
equally higher level of the uncertainty. It undertakes risk for financial security, arrange for
capital, locations, raw materials, skilled employees. Sales, marketing and distribution are
important aspects which are controlled by enterpriser. The present report provides a Business
plan for Beckas Bakery for bringing new products and services in the market. It will provide
about the new products, situational analysis, competitor analysis, segmentation, targeting and
positioning of products, marketing mix and financial plan.
BUSINESS PLAN
Executive Summary
The food and beverage market is growing very speedily with changes in customer tastes
and preferences. Needs and demands of consumers is changing continuously following the social
trends. It has laid significant importance on the company to bring new products analysing the
current scenario that will be acceptable by people. People after the pandemic had became very
conscious about their health and have changed their preferences towards food that increases their
immunity. Becka's Bakery has brought a new business idea of selling immunity booster cup
cakes and bakery products.
Company Overview and Product Details
Becka's Bakery is a retail business selling cakes and bakery products in UK. The
company is established from last 30 years and have large and loyal customer base for the people.
It has stores around different locations in UK and provides delicious cup cakes and other quality
bakery products. The financial performance of the company is also adequate but the pandemic
has affected sales significantly.
Analysing the current heath environment company has planned to come up with new cup
cakes that are rich in dry fruits ingredients and which boosts the immunity of people. Such
immunity booster cup cakes will be accepted by the market as people are great need to increase
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their immunity to fight against the virus (Suckling and et.al., 2020). The cakes will also be sugar
free so that old age people could also consume them without any health issue. It will allow
people to eat their favourite cup cakes and boost their immunity with the same. This would be
the first product that will build the health of people eating cakes and bakery products.
Situational Analysis
Situational analysis is held for analysing internal and the external factors of the business.
It defines the potential customers, assesses competitors, evaluates the projected growth and make
practical assessment of the business. This involves targeting explicit objectives in market and
identifying factors which hinders and support the objectives.
PESTLE Analysis
Becka's Bakery has analysed the external factors that can influence the business.
Political Factors
This factor analyses the effect of government rules and regulations on the business.
Political environment influences business highly as they have to be complied with for running
the business smoothly and successfully. In the food and beverage industry political influences is
less but policies regarding the trade barriers and higher taxes would make the raw materials for
product costing rising prices. In the current environment all the stores are required to be closed
timely where the food & beverage stores run more at night. Bakery has to comply with food
safety requirements and other applicable rules to the business.
Economical Factors
It contains the economic factors that are beyond the control of organisations. Economy of
UK is slow moving in last few years which shows that the economic growth will not help the
companies to growth. Uncertainty of Brexit has influenced the economy significantly as the costs
of businesses have increased due to tax over trade with EU nations (Yamoah and Acquaye,
2019). The foreign direct investments are increasing every year which will increase the business
for other sectors also. Unemployment and inflation rates are also to be accounted. Bakery has to
employee skilled employees and chef for producing the cakes.
Social Factors
This considers the factors that influences the society as whole. The social trend is
changing and tastes and preferences of people have to be considered for making products that
will be accepted. Society is becoming health conscious and the social groups are encouraging
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each other for consuming healthy foods. The new immunity booster cup cakes will meet the
needs and requirements of people and improve their health. The marketing over social channels
will increase the brand awareness that will help in increasing the sales.
Technological Factors
The automation is increasing efficiency of each and every sector. Adopting technology in
the working of organisation is essential for getting required output in specified time. It is
required at each and every stage of the business like for promoting the products at every platform
and increasing the convenience of customers (Greatorex, 2018). Bakery will use advanced
machines with least use of human for taking care of hygiene and also the digital platforms will
be used for promoting and distribution of products.
Legal Factors
Every company has to abide by the rules and regulations imposed by the different
statutory authorities. Becka has to comply with food safety standards, hygiene conditions and
also report to the concerned authorities. It is also required to file annual income return for the
company with the government. Compliance with legal rules and regulations is essential for
preventing the companies from fines and penalties.
Environmental Factors
Bio diversity has to be considered by firms to run smoothly in the market. Th
environmental factors include maintaining required hygienic conditions, making use of the
quality products and making the use of resources most optimally (Iweala, Spiller and
Meyerding, 2019). It has been seen that companies that are responsible towards environment and
take active actions for them tend to receive greater consumer recognition.
SWOT Analysis
The analysis helps to evaluate the internal strengths and weakness of the company so that
measures could be taken accordingly
Strengths
 Becka's Bakery is well recognised brand in the field of cup cakes and bakery product
 It has strong market position in the domestic industry that will help the promote new
products
 Huge market base with loyal customers in UK
 The quality products of bakery has strong trust of consumers
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 Company is financially strong and can undertake new expansion projects The management is strong that is essential for meeting the target objectives
Weaknesses
 Lack of product innovation and creativity
 The products are not useful for the diabetic patients due to sugar
 No existing healthy bakery products
 There is lack of cooperation between employees and management
 Lack of skilled workers Employee shortages
Opportunities
 Increasing direct investments will result in growth of food industry as well
 Innovative and healthy products will be in high demand in future
 Partnership with other brands will help to acquire new market share(Tonini, Albizzati
and Astrup, 2018). Changing customer tastes and preferences could be adopted for delivering required
products
Threats
 Intensifying competition in the food industry
 Poor economic situation may limit the spendings of people
 Weakening sterling will make the products costlier
 Ineffectiveness of the franchisees could affect the image.
Market and Industry Analysis
The UK food market is growing continuously with sharp decline due to lock-downs but
they are returning back to normal. There has been increase of 11.2% in year 2019. The revenues
are expected to grow at compounding annual rate. Consumer tastes and preference continue to
evolve that will demand new products and especially health consciousness is on rise. The food
market size of UK is £1 billion (Food Market UK, 2019). The industry provides employment to
around 20,472 employees. The economic uncertainty in future is expected to limit the growth
and industry will return to higher expansion rate with recovery of consumer confidence
Porter's Five forces
It helps to evaluate the industry for following factors
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Threat of new entrants: As it is operating in food industry threat of entrants is always high. The
number of cafes and restaurants are increasing every year. There are no restrictions for the
people to enter in this industry.
Threat of Substitute: The threat is high as number of firms are operating in the industry and
increasing health awareness will lead them to develop health food products. Therefore the
Bakery has to continuously upgrade the products.
Bargaining power of buyers: There are wide variety of choices available to the consumers for
products as there are number of bakeries established in UK (Ghadge and et.al., 2020). It has to
analyse the customer requirements and provide products for reducing the bargaining power.
Bargaining power of suppliers: It is also low as large number of suppliers are operating in
market from which raw material could be purchased. It can establish healthy relation with
suppliers to get trade discounts and quality materials.
Rivalry from Competitors: It is also high as number of cafes and bakeries are operating
successfully in the industry. There is strong and fierce competition in the food industry.
Competitor Analysis
The competitor analysis helps to evaluate the strengths of competitors operating in the
market. It will help to analyse the industry so that it could adopt the business strategies that will
help to grow in market. The competition is very high for the Becka as number of bakery stores
are operating in UK. However the nutritious and immunity booster bakery products are not
provided by anyone. This will provide competitive advantage for the bakery to compete strongly
with others. Bakery has to provide best quality products and also float them in market increasing
their awareness among the people. There are various competitors like AB Mauri, Bakers Oven,
Beigel Bake and many others. They are well established with large customer base that will give
strong competition. These bakers are providing quality products with wide variety giving modern
and traditional taste to the products. They are high creative and innovative and bring new
products analysing tastes and preferences of customers (Simms and et.al., 2020). These bakers
are providing better customer experiences to the people that are making customers to stay loyal.
The variety of products attract new customers and also there existence on all the platforms has
built the customer base. Becka has to promote the features of the cup cakes using effective
marketing strategy. Similar products are not existing in the market and company could take the
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advantage of this for building new customer base. The health requirements is the strength of new
products and this will help in getting market acceptance.
Market Segmentation, Targeting and Positioning
The marketing strategies help the company to select a specific market segment that will
help the Becka Bakery in achieving the goals and objectives through selling its products and
services. Segmentation helps in dividing the target market in smaller categories. Customer are
segmented into groups sharing similar characteristic like needs, interests, demographics and
locations.
Demographic Segmentation
It is commonly used segmentation. It deals with statistical data relating to groups of
people. It segment market based on characteristics such as gender, age, location, income,
education and ethnicity (Heasman and Morley, 2017). Bakery will focus over people of all age
with income level above GBP 1000 for new cup cakes.
Psycho-graphic Segmentation
It categorises customers and audiences on the basis of their characteristics and
personalities. They are quite difficult to identify the pscychorgraphic segments than the
demographic. It involves segmenting customers based on values, attitudes, personality traits,
lifestyles, beliefs, priorities and psychological influences. Bakery will pay attention towards
people with high health consciousness about people.
Behaviour Segmentation
It segments over how customers will act. It analyses the spending habits, purchasing
habits, user habits and the brand interactions. It will relate how the customer would interact with
the bakery.
Geographic Segmentation
Bakery will focus over only customers of UK. It will include the people residing in
country. The marketing and distribution channels will be established for providing the products
in most sections of country.
Bakery will adopt for the demographic segmentation for categorising its customers based on
income levels.
Targeting
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Targeting involves evaluating the attractiveness of segment and then choosing the
segment to enter. Choice is made by company based on the segment which would bring most
value to company. The establishment of potential customer base and then choosing the
prospective customers is key to success and longevity of business.
Undifferentiated Marketing
It is also known as mass marketing ignores differences between different segments and
treat entire market as single target. In this case all are potential customers for company. The aim
is to reach as many customers as possible for selling the products (Benson, Hirst and Beresford,
2019). It is successful when products have high market appeal.
Differentiated marketing
It provides better clarity and knowledge. It is known as segmented marketing and
involves isolating different primary segments which have potential value for company. It makes
company to identify different markets and design concentrated strategies for them.
Concentrated Marketing
Also called niche marketing do not focus over whole market and selects a single small
piece of market for selling the products and services. The complete focus is given on specific
group of consumers. It channels all the marketing effort towards defined segment with aim of
having particular segments from the competitors.
The Becka's bakery will go for differentiated marketing and selling products to primary
segments that are health conscious. The immunity booster cup cakes will be accepted by
customers as the health consciousness is increasing among them.
Positioning
It refers to ability of influencing consumer perceptions. The competitive advantage
allows company to achieve the objectives relative to the competitors (Moorhouse, 2017). It aims
at establishing image of brand. Brecka will position it product as healthy and immune booster.
Marketing Mix
It states the marketing strategies it will adopt to achieve its objectives
Product : The new cup cakes are new in market rich in dry fruits and other vitamin ingredients
that will boost the immunity of people.
Price: Bakery will use penetration pricing strategy so that people will be attracted toward new
products.
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Place: It will be available over both offline stores and online platforms.
Promotion: The product will be promoted over different channels including traditional
platforms.
Financial Plan
The financial plan would provide all the information regarding the financial funds and
business operation for the year one. Company would require financial resources and would also
require to manage the use of resources to achieve the desired profitability.
Start up Cost
Bakery will require following funds for the new products
Start up costs and funding in GBP
Production machine 230
Management Software 100
Website development 75
Office Rent 80
Office Furniture and Fixtures 60
Equipments 45
Wages and salaries 120
Warehouse lease 50
Warehouse furniture 36
Legal Expenses 25
Marketing activities 74
Launch Event 65
Stationary 40
Total Cost 1000
Projected Income Statement and Balance sheet for year one
Income Statement
Projected Statement of Profit or Loss
Revenues
Sales 1015400
(Less sales return)
Cost of goods sold 720500
Opening Inventory 66600
Purchases (less returns) 732400
Closing inventory 78500
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Carriage Inwards 1300
Gross Profits 293600
Carriage outwards 2400
Advertising Expenses 10400
Consulting Fees 7600
Wages and salaries 4900
Interest on overdrawn balance 5500
Interest charges 8000
Administrative cost 19300
Depreciation building @ 2% 7600
Depreciation fixtures and equipment @
20%
(148000-12000)*20% 27200
Loss of equipment 7200
Net Profit 193500
Balance Sheet
Statement of Financial Position
ASSETS
Current Assets
Receivables 396100
Inventory 69200
Bank 15000
480300
Non Current Assets
Freehold Land 231200
Buildings 380000
Fixtures and Equipment 136000
747200
TOTAL 1227500
EQUITY AND LIABILITIES
Current Liabilities
Payables 148600
Outstanding wages 4900
Outstanding interest on loan 8000
161500
Non Current Liabilities
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8% long term loan 100000
Provision for depreciation – Building 107000
Provision for depreciation – Fix &
equipment 105600
(83200-4800 +27200)
312600
Total Liabilities 474100
Shareholder's Equity
Ordinary Share capital 200000
5% Preference share capital 200000
Retained Earnings
Opening 161100
Add : Profits 193500
Less : dividends -40000
Less : Personal expenses -92400
Share premium 100000
Closing balance 322200 322200
Shareholder's Equity 722200
TOTAL 1227500
Cash flow statement for the first nine months
Particulars
Januar
y
Februa
ry March April May June July August
Septem
ber
Cash inflows
Opening cash
inflow 7000 8300 10682
13145.8
8
15691.4
5
18318.4
3
21026.4
8
23815.1
6
26683.9
4
Sales revenue 10000 10200 10404 10612 10824 11041
11261.6
2
11486.8
6 11717
Other income 2000 2000 2000 2000 2000 2000 2000 2000 2000
Total cash
inflows 19000 20500 23086
25757.8
8
28515.4
5
31359.4
3 34288.1
37302.0
2
40400.9
4
Cash outflows
Material 2500 2750 3025 3327.5 3660.3 4026.3 4428.9 4871.8 5359.0
Labour 2000 2000 2000 2000 2000 2000 2000 2000 2000
Marketing
Expenses 3000 3000 3000 4000 2000 2001 2002 3000 3000
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Other
expenses 2200 2288 2380 2475 2574 2677
2783.70
2 2895 3011
Distribution
Expenses 1500 1575 1653.75 1736.44 1823.26 1914.42 2010.14 2110.65 2216.18
Administratio
n expenses 4000 4000 5000 5000 5000 5000 6000 6000 6000
Total cash
outflows 15200 15613
17058.7
5
18538.9
4
17057.5
1
17618.7
0
19224.7
5
20877.4
4
21586.1
6
Cash deficit /
surplus or
closing cash
balance 3800 4887 6027.25 7218.94
11457.9
4
13740.7
3
15063.3
5
16424.5
8
18814.7
8
Break Even Analysis
Break even analysis shows the amount of products required to be sold for the costs and
for earning the desired profits.
Particulars Formula Figures
Selling price per unit 20
Variable cost per unit 12
Contribution per unit
Selling price per unit -
variable cost per unit 8
Fixed cost 200000
BEP (in units)
Fixed cost / contribution
per unit 25000
BEP (in value or
monetary terms)
BEP (in units) * selling
price per unit 500000
Units need to sell for attaining desired profit margin
Particulars Formula Figures
Fixed cost or expenses 200000
Desired profit 50000
Contribution per unit 40
Number of units required
to sell
Fixed cost + desired profit
margin / contribution per
unit 6250
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Monitoring and Control
The management will look over the whole project and ensure that all the operations are
running successfully towards defined direction for achieving the goals and objectives. Control
procedures will be established over different stages to ensure that optimum utilisation of the
resources is made. Also if any discrepancies are identified they will be resolved quickly.
CONCLUSION
It could be concluded from the above business plan that Becka's Bakery is well
established brand and the new idea of immunity booster cup cakes and bakery will provide new
customer base. The market analysis and evaluation of other factors show that the idea will be
successful for the company. Becka by effectively monitoring the production and operation could
achieve the desired goals and objectives of business.
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REFERENCES
Books and Journals
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the UK, and implications of a transition to a hybrid business model combining production
for live pet food with production for human consumption. The International Journal of
Life Cycle Assessment. 25(9). pp.1693-1709.
Yamoah, F.A. and Acquaye, A., 2019. Unravelling the attitude-behaviour gap paradox for
sustainable food consumption: Insight from the UK apple market. Journal of Cleaner
Production. 217. pp.172-184.
Greatorex, V.W.M.M., Consumer Perceived Risk in the UK Food Market. BRITISH FOOD
JOURNAL. 92. p.2.
Iweala, S., Spiller, A. and Meyerding, S., 2019. Buy good, feel good? The influence of the warm
glow of giving on the evaluation of food items with ethical claims in the UK and
Germany. Journal of Cleaner Production. 215. pp.315-328.
Tonini, D., Albizzati, P.F. and Astrup, T.F., 2018. Environmental impacts of food waste:
Learnings and challenges from a case study on UK. Waste Management. 76. pp.744-766.
Ghadge, A., and et.al., 2020. Sustainability implementation challenges in food supply chains: A
case of UK artisan cheese producers. Production Planning & Control. pp.1-16.
Simms, C., and et.al., 2020. Barriers to the adoption of waste-reducing eco-innovations in the
packaged food sector: A study in the UK and the Netherlands. Journal of Cleaner
Production. 244. p.118792.
Moorhouse, J., 2017. The turn to the market in UK food policy 2002-2015 and its impact on the
vegetable sector in England (Doctoral dissertation, City, University of London).
Heasman, M. and Morley, A.S., 2017. Earning a Crust? A review of labour trends in UK food
manufacturing.
Benson, M., Hirst, C. and Beresford, P., 2019. Value Creation Capacity of Category
Management Collaborations in the UK Private Label Chilled Food Sector.
Online
Food Market UK. 2019. [Online] Available trough: <https://www.ibisworld.com/united-
kingdom/market-research-reports/food-markets-industry/>
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