Business Plan: Vitality Bistro - LSC UoS BA Business Development Plan

This report presents a business plan for Vitality Bistro, a cafe offering a variety of healthy energy drinks in the UK market. It includes an analysis of micro and macro environmental factors using SWOT and PESTLE, a business canvas model, marketing and market growth strategies, a value chain analysis, and Porter's five forces analysis. The plan details the company's target market, special attributes, values, and marketing strategies. It addresses the rationale for launching the business in response to increasing health concerns and aims to provide healthy, flavorful drinks at affordable prices. The report concludes with a financial feasibility assessment and potential mitigation strategies. The document is shared by a student on Desklib, a platform offering study tools for students.

Business Plan

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
Introducing business idea and market entry strategies................................................................3
Presenting the rationale for launching the business.....................................................................3
Determining the micro and macro factors present in the business environment.........................4
Business canvas model................................................................................................................7
Marketing strategy and Market growth strategy..........................................................................8
Value chain..................................................................................................................................8
Porter five forces..........................................................................................................................9
Financial feasibility...................................................................................................................11
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................15

INTRODUCTION
Business plan is written document that describe the company core business activities and
objectives and define ways to achieve it. The present report will be based on Vitality Bistro cafe
which will offer variety of energy drinks to health conscious group in UK market. Further the
company will analysis various environmental factors through conducting various models such as
SWOT, PESTLE, STP etc. Moreover, the report will analysis the market strategy through value
chain, competitor analysis and business canvas model. At last the report will present the financial
plan and mitigation strategies which the quoted firm can adapt to overcome challenges in the
future.
Introducing business idea and market entry strategies.
Product or service: The idea will be opening Vitality Bistro which will offer variety of energy
drinks in different flavors of fruits such as orange, mango, pineapple, pears etc. Such drinks will
be sold to large number of people living in UK and nearby areas.
Target market: The targeted segmented would be middle and lower middle class income
groups.
Special attributes: The best thing about this bistro is that all the drinks provided are full of
healthy nutrients, tastes and are free from artificial flavors which will be good for health.
Values: Bistro holds a strong value of providing superior quality of natural drinks in UK market
and work together to meet the needs of customer through developing a high level of commitment
Location: Initially the business would be started in parts of UK and will gradually expand
globally through various mediums.
Involvement: Various people such as suppliers, distributors, workers, owner, store manager etc
will be the part of this bistro.
Marketing strategies: The firm will use internet marketing strategy in which all products of
outlets will be advertised and marketed through various online platforms and websites. This
method is very suitable as it involves fewer costs in initial investment than other sources which
involves high investment.
Presenting the rationale for launching the business
With fast changing lifestyle of people living in the UK, this Vitality Bistro will be opened
to provide variety of drinks which will not only contains healthy nutrients but are full of flavours
and tastes. The drinks will be available in various packaging and sizes along with different

varieties such as pomegranate, cranberry, orange, pineapple juices and much more. The bistro is
opened in relation with current situations in which most people are suffering from various health
issues such as diabetes, blood pressure problems, lung diseases etc. These problems are expected
to rise by 40% by the end of 2030 (The health of England today and into the future,2018). To
overcome such issues this bistro will ensure well-being of customers along with providing better
tastes at minimal rates. Moreover, this bistro will ensure that products can be made easily
available to all sectors of group irrespective of age factor.
Determining the micro and macro factors present in the business environment
There are various factors which affects working of the firm which can be present in either
internal (through SWOT) or in external (Pestle) environment.
SWOT analysis
Strength
 This will be first type of outlet which
will be located in UK.
 The variety of juices are available in
affordable prices.
 The quality of products will also be
very high against the competitors
(Lurati and Zamparini, 2018).
Weakness
 It is difficult to build established brand
image in a competitor’s market.
 Due to people perception they might
think that organic energy drink may be
little flavourless.
Opportunities
 Can tie with marketing agencies to
have better promotion of products.
 The firm may have introduced a zero
sugar alternative drink with zero sugar
and fewer calories.
 In different market places prices of the
product can be changed easily
according to the government rules and
policies.
Threats
 There are already big competitors who
have covered a large market areas and
hence chances of duplication are high.
 Change in trends may impact the sales
of the products to a large extent.
 Substitute inexpensive drink products
are available in market (Omer, 2018).

PESTLE analysis
Political factors
Various factors such as government rules, regulations, trade restrictions, tax policies etc
affect the business activities of any firm (Khalid and Rahman, 2019). These factors may be
changed frequently according to the market conditions and may create both positive and negative
impact on operations of firm. For example, if tax rate is increased then quoted firm may not be
able to sell products at lower prices which may affect the sales of firm. Also, if there are trade
restrictions than it may not allow the firm to transport goods easily from one place to another.
Economic factors
Unemployment rate, recession, inflation etc are some factors which exist at some point of
time in an economy and may impact the position of firm in long run. For instance, if
unemployment rate is high than firm will be benefited by employing large number of people at
minimum salaries. Also, if inflation is high in any country than people will resist buying those
goods which are not under the category of essential food items.
Social factors
With increase in health problems people now are more conscious in buying those
products which are source of good health and are also available at minimum prices. Other factors
such as changes in attitude, trends, ethics etc also affect the buying habits among the people.
These factors have to be closely analyzed by firm to ensure that required modifications in
product can be made from time to time.
Technological factors

Upcoming of various technologies consumers can now purchase various products even
when they are located in different parts of world through internet. Internet has helped people to
remain connected with different business firms through various online platforms and websites.
Therefore, quoted firm with very less investment can easily increase the market base in areas
where the reach is not possible and such this factor may prove to be positive point for startup of
any firm.
Legal factors
Factors such as environment laws, company laws, employment laws have to be fully
followed by any firm to avoid negative impact in the future. If laws of any country are of
complex nature than the firm may not be able to conduct its working smoothly as lot of
formalities need to be fulfilled. Also, if the company has more easy laws than the trade activities
can be conducted easily.
Environmental factors:
Firms need to ensure that while conducting business activities minimum wastage of
resources are there. For this purpose, the quoted firm has to adopt those practices in which
resources are not being misused. These practices help the firm to create positive image in the
market. For example, firm may use recyclable plastic cans to supply energy drinks so that less
land pollution is caused to environment.
STP analysis
It is three step model which is used to describe the segmented, targeted and positioned
group as well as the way in which it is communicated to specific customer segments (Liu and
Shan, 2021).
Segmenting:
For vitality bistro the market would be divided on demographic basis which includes the
following:
 On the basis of age, it would be around 12-50 years.
 The bistro will focus on both genders male and female.
 Target customers would be students, working professionals, labor class etc.
 Bistro will focus on mainly middle and lower middle class of people.
Targeting:

The strategy which will be followed by the quoted firm would be focused marketing
strategy which will help to focus on limited part of market through effective means. This type of
strategy will also help the firm to stand out in the market. For the startup companies this strategy
is best suited so that they can enter the market with very low level of investment.
Positioning:
The firm will gradually have positioned in market using innovative techniques that will
help to introduce range of drinks that are difficult to find in the local marketplace. It will also use
various types of advertising and sales promotion techniques so that it can establish a good image
in the market.
Business canvas model
Key partners
 Suppliers
 Distributo
rs
 Marketing
agencies
(Ojasalo
and
Ojasalo,
2018).
Key activities
 Selling
variety of
organic
energy
drinks in
various
UK
outlets.
Value
propositions
 High
quality of
favour
energy
drinks.
 Helpful in
providing
instant
energy and
aids in
easy
digestion
Customer
relationships
 Dedicated
assistance
to each
customer.
 Easy
communi
cation
channels
to give
suggestio
ns.
Customer
segments
 Diversified
market.
Key resources
 Raw
materials
 Human
resources
 Machines
Channels
 Online
platforms
like social
media.
 Creating
websites.

 Selling in
outlets.
Cost structure
 Value driven
 Both fixed and variable costs.
Revenue streams
 Product sales.
 Engaging in wholesale business.
Marketing strategy and Market growth strategy
The marketing strategy of any business firm would be analyzed through an effective
marketing mix which includes 7 components which are explained as follows
 Product: The quoted offers large variety of energy fruit drinks such orange, peach, beet,
cranberry etc which are rich in flavor and taste. These drinks are made available in
market to cater to large needs of customer who are concern about the health issues
(Micieta and et.al., 2020). They are free from artificial flavors and chemicals so that the
end users can get maximum benefit from the products.
 Price: The pricing strategy which will be used by the quoted firm would be penetration
pricing strategy in which initial prices are kept low to conquer the market. Once the
customer base is established than prices would be raised higher according to the demand
(Lim, 2021).
 Place: The cafe would be primarily started in England, UK and would be located in main
city area where there are markets and malls are available for shopping to grab the
attention of most people. All the facilities would be provided in outlets for best customer
experience.
 Promotion: Quoted firm will promote its goods through various online media platforms
and websites and will offer various discounts, rewards, coupons etc to attract target
customers. Creating own websites is the best method to sell goods in less time and in
various regions (7 p's marketing mix,2019)
 People: It will include workers, owners, directors, suppliers, distributors, customers.
 Physical evidence: Logo, furniture, employee dress code, interiors are consider as a
physical evidence.

 Process: Quick payments through cashless transactions and hiring enough resources
which will help to solve customers’ grievances and issues.
Value chain
It is model in which business activities are divided into two categories primary activities
and secondary activities which are explained as follows
Primary activities
 Inbound logistics in which raw materials such as various fruits, plastic cans etc will be
brought in warehouse through various import agencies. Further the production process
will be completed by filling the cans at same site and delivering at vitality store for final
consumption.
 Operations It is an important part of firm activity as input is changed into output. Here
initially the production is conducted on small scale and later it is increased according to
the demands (Brun, 2019).
 Outbound logistics: The storage and distribution of the company is to retail locations,
that are important for selling. Also, this type of products is mostly sold in the stores and
cafes that are located in market place.
 Marketing and sales: The vitality bistro will invest more in sales and promotion
activities through offering free sample as firm aim to make awareness among the people
through on selling superior quality products.
 Services: The firm aims at building customer loyalty by providing best services in its
outlets that have never been experienced like offering free Wi-Fi services, best sitting
area with fine interiors etc.
Secondary activities of value chain
 Infrastructure: The firm will include departments like finance, management which are
needed to carry out various operations in outlets. It will also ensure that outlets are well-
designed to provide best of services with a dedicated team workforce.
 Procurement: It is a method in which the company will obtain raw materials from
various sources through price negotiation. This is crucial as high prices will result in high
costs of the final products.
 Human resource management: Activities like hiring, staffing, recruiting, training is
included to get the best resources at workplace.

 Technology: Various technical equipment such as microwave, computer system,
payment machines will be adopted to make the selling easier.
Porter five forces
Competition is always a huge challenge for any of the new entrant. Energy drink sector is
among the fastest growing market in the United Kingdom. This model will support the Vitality
Bistro to evaluate about different competitive forces that will be considered by the organisation
while formulating different strategies for delivering various business operations.
Competition in industry (High): is a massive force that influence the strategic choices adopted
by the organisation. The energy drink sector is very competitive in nature due to its emergence
and growth of the sector in the business environment. Especially for the new entrant this force is
highly competitive as the progress of the business venture influenced with the trust customer
gain while using the products (Vargha, 2018). The growth of the sector could attract to all top
companies ad stakeholder group all across to globe to invest in the market. All this has resulted
into the increased level of competition in the industry.
Potential of new entrant in industry (High): is another force that highly influence the business
operations of the Vitality Bistro. The organisation itself is a new entrant which clearly
demonstrate about the fact that it’s very progressive to enter into the sector in order to deliver the
business operations (Sahir and Rosmawati, 2020). High growth always attract to stakeholders to
invest in the business. The product demand in the sector is also increasing every year which also
motivate the new organisations and ventures to entertain growth opportunities cater by the
energy drink market.
Power of suppliers (High): is also a competitive force would influence the business operations
deliver by the Vitality Bistro. Supplier play a crucial role especially for the new business houses
that are about to establish its presence in the market. Suppliers are involved in availing the
products offer by the organisation at all different stores (Hafezi and et.al., 2019). This
stakeholder play a crucial role in ensuring the proper availability of the product offer by the
Vitality Bistro. The involvement of the supplier will be in the business operations of organisation
make this force high.
Power of customers (High): is one of the most significant competitive force influence business
operations of the company. All strategies' management will form on the basis of the choices and
preferences favour by the potential customer in respective target market. Vitality Bistro will also

launch the product on the basis of the specific need and demand of the target customer of United
Kingdom. Involvement of this stakeholder group make this force high in respect to the business
operations of the company.
Threat of substitute products (High): is also a high compeitiv4e force that will effect the
bushiness operations of the Vitality Bistro. Substitute product denoted as the product that can be
used in the place of the existing product offer by the company (Benjamin, 2018). Today the
world has moved towards the innovation and technology development. This support the
stakeholders and researcher to develop new products very constantly. The involvement of this
force make it more aggressive for the Vitality Bistro.
The above stated factors demonstrate about the all different force that will significantly
affect the business operations deliver by the Vitality Bistro. This is important for the organisation
to develop reasonable strategies for taking up the competitive edge in against to use all these
forces while framing business strategies.
Financial feasibility
Particulars
Jan
uar
y
Februa
ry
Marc
h
Apri
l
Ma
y
Jun
e July
Augu
st
Septe
mber
Octo
ber
Nove
mber
Dece
mber
Cash inflows
Opening cash
inflow
500
0 6300 8682
1114
5.88
136
91.4
472
1631
8.43
1728
19026.48
216992
2181
5.160
8929
728
2468
3.939
1536
728
2763
2.191
9813
005
3065
9.192
8272
629
3376
4.107
9703
979
Sales revenue
100
00 10200 10404
1061
2
108
24
1104
1
11261.62
419264
1148
6.856
6764
928
1171
7
1195
1
1219
0
1243
4
Other income
200
0 2000 2000 2000
200
0 2000 2000 2000 2000 2000 2000 2000

Total cash
inflows
170
00 18500 21086
2375
7.96
265
15.7
688
2935
9.23
976
32288.10
636256
3530
2.017
5694
656
3840
0.532
9636
955
4158
3.117
6675
236
4484
9.137
0272
104
4819
7.851
0543
445
Cash outflows
Material
250
0 1530
1560.
6
1591
.812
162
3.64
824
1656
.121
2048
1689.243
628896
1723.
0285
0147
39
1757.
4890
7150
34
1792.
6388
5293
35
1828.
4916
2999
21
1865.
0614
6259
2
Labour
200
0 2000 2000 2000
200
0 2000 2000 2000 2000 2000 2000 2000
Other
expenses
220
0 2288 2380 2475
257
4 2677
2783.701
8406912 2895 3011 3131 3257 3387
Administratio
n expenses
400
0 4000 4000 4000
400
0 4000 4000 4000 4000 4000 4000 4000
Total cash
outflows
107
00 9818
9940.
12
1006
6.51
28
101
97.3
370
72
1033
2.75
7590
08
10472.94
54695872
1061
8.078
4157
928
1076
8.340
9823
95
1092
3.924
8402
607
1108
5.029
0568
125
1125
1.860
3864
852
Cash deficit /
surplus or
closing cash
balance
630
0 8682 11146
1369
1
163
18
1902
6
21815.16
08929728
2468
4
2763
2
3065
9
3376
4
3694
6
Break-Even analysis