Business Plan for AYN Convenience Store in the UK Retail Market

This report presents a detailed business plan for "All You Need" (AYN), a proposed convenience store in London, UK. It begins with an executive summary and table of contents, then delves into the characteristics of the UK retail market, including its competitiveness, the increasing disposable income of consumers, and the rise of e-commerce. The report analyzes barriers to entry and proposes a business model using the business model canvas, outlining key partners, activities, value propositions, customer relationships, segments, resources, channels, cost and revenue structures. It explores different options, including route to market, legal structure, and funding options. The plan also addresses management needs, particularly in manpower and financial resources, covering revenue and capital generation. The report concludes with a comprehensive overview of the convenience store's strategic approach to the market and its long-term sustainability.

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A Business Plan for All You Need (AYN)-A Convenience Store
Name of the student
Name of the university
Author Note:

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Executive Summary:
The report below explores the market opportunities of a convenience store called All You Need
to enter and sustain in fiercely retail market of London. The retail market in the country
experiences presence of both resident and foreign retail firms. The scale of operations of the
retail firms can vary from as big as a multinational retail chain to a small convenience store.
These retail firms compete from customer share and revenue generation, thus making it difficult
new entrants to enter. AYN should form an aggressive marketing strategy to enter the UK and
sustain its business.

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Table of Contents
Introduction:....................................................................................................................................3
Part 1. Characters of the chosen business industry and market:......................................................3
Part 1.1. Key characteristics, trends and innovations in the market:...........................................4
Extremely competitive:............................................................................................................4
Increasing disposable income among the consumers in the UK:............................................4
Ecommerce marketing operations on the rise:.........................................................................5
Innovations:.................................................................................................................................6
Part 1.2. Barriers to entry into the industry:................................................................................7
Part 2. Proposed business model using business model canvas:.....................................................7
Part 3. Different options available and decisions needed to be made:............................................9
Part 3.1. Route to the market:......................................................................................................9
Part 3.2. Legal structure:..............................................................................................................9
Part 3.3. Funding options:..........................................................................................................10
Part 3.4. Product line to be launched:........................................................................................10
Part 4. Areas needs management in the new business and approach to be taken:.........................10
Part 4.1. Manpower:..................................................................................................................10
Part 4.2. Financial resources:.....................................................................................................11
Revenue generation:..............................................................................................................11
Capital generation and investments:......................................................................................11

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Conclusion:....................................................................................................................................11
References:....................................................................................................................................13

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Introduction:
Entrepreneurial business ventures bring about growth the market. Morris et al. (2018)
mention that entrepreneurial business ventures usher new products into the market and boosts its
revenue generation. Dhaliwal (2016) points out that entrepreneurial ventures bring about growth
in the industries in which they function and the economies concerned as a whole. This is
because, entrepreneurial business ventures not only bring about new products into the market but
also create employment opportunities. They lead to increase in the revenue governments earn
from the taxes they pay. It is due to these benefits economies today encourage growth and
expansion of startup business ventures. The aim of the report would be exploring the business
opportunities of a new entrepreneurial venture called All You Need or AYN. The entrepreneurial
venture would be convenience store, which would be located in London, the United Kingdom.
The store would sell products like food products, skincare products and homecare products or in
other words operate in the retail industry. The market, which would be considered mainly,
would be the United Kingdom and the industry, which would be considered, would be retail
industry.
Part 1. Characters of the chosen business industry and market:
The entrepreneurial venture namely, All You Need or AYN would be a startup
convenience store located in London, the United Kingdom. The product line of the store would
consist of FMCG products like food products, homecare products and skincare products. It
would be a sole proprietorship firm operating in the retail industry. The following section would
explore the key aspects of the retail market in the United Kingdom, which the owner of AYN
would take, into account while operating in the market:

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Part 1.1. Key characteristics, trends and innovations in the market:
The following are the key characteristics, trends and innovations in the retail markets in
the United Kingdom:
Extremely competitive:
The retail market in the United Kingdom is extremely competitive. This is because the
retail market in the United Kingdom experiences presence firms of all scale right from
multinational companies like Morrisons to small-scale convenience stores. The retail market of
the country is also experiencing entry of foreign retail companies like Wallmart from the US.
The resident and foreign firms provide wide varieties of products right from skincare to food
products. The small-scale firms like the convenience stores enable the multinational firms retail
their products to a vast number of consumers. Both the multinational companies as well as small-
scale convenience stores try to poach customers from their counterparts. These factors have
made the retail market in the United Kingdom extremely competitive.
Increasing disposable income among the consumers in the UK:
One of the driving factors of the British retail industry is rise of disposable income
among the customers in the country. Agarwal (2019) mentions that higher disposable income
generally has strong positive impacts on the retail purchase decisions of consumers. This is
because with higher amount of disposable income, consumers generally spend more purchasing
goods from retail firms ranging from retail chains to convenience stores. The consumers in the
United Kingdom are experiencing increasing disposable income (Tradingeconomics.com. 2020).
This is in turn enabling them make more frequent and bulk retail purchases. This factor has
boosted the demand for goods in the retail industry in the country which in turn has resulted in

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entry of large numbers of operators right from MNCs to single convenience stores, making the
market extremely competitive.
Figure 1. Graph showing disposable income among the UK consumers
(Source: Tradingeconomics.com. 2020)
The following are the trends in the retail sector in the United Kingdom, which AYN
should take into consideration prior to entering the market of the United Kingdom:
Ecommerce marketing operations on the rise:
One of the most important factors driving the operations in the British retail market is
increasing use of ecommerce portals to market products. The practice of eGrocery is extremely
in demand in the UK. The ecommerce portals in the country alone handle about 6.9% of the sales
in the retail sector (Fmcgmagazine.co.uk. 2020). Selvakumar and Raghavan (2017) mention that
consumers today prefer to buy goods and services online in order to save time. This trend in the
retail market has resulted in large numbers of retailers selling goods on the ecommerce portals
and generating immense revenue.

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Innovations:
The retail market in the United Kingdom is experiencing innovation in several areas of
operations like from product mixes to pricing strategies. Cagliano, Worley and Caniato (2016)
opine that the consumers today demand more food products grown in sustainable ways like using
fewer fertilizers. The process of cultivation of food products using sustainable methods like
using bio-fertilizers attracts immense costs. The convenience stores in the country in keeping
pace with this preference of consumers offer more sustainable products like organic food
products. Mi et al. (2018) point out that second area in the retail market, which is experiencing
immense innovation, is supply chain management. The retail firms today prefer marketing
goods, which are made using recycled goods like recycled plastic, which reduces environmental
damage. Similarly, the retail industry firms in the United Kingdom are adopting innovative
pricing strategies to create more value to customers. For example, the retail industry firms, both
multinational firms as well as small convenience stores offer discounts and free gifts in order to
enable customers buy more products by paying less. These innovative ideas have enabled the
retail industry in the country ensure high level of customer satisfaction and retain immense
customer bases. This enables them to generate immense revenue by generating repeat business
from consumers (Hanaysha 2018).

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Part 1.2. Barriers to entry into the industry:
The firms aiming to enter the retail industry in the United Kingdom have to face several
barriers to entry. The first barrier to entry to the retail market in the country is the high level of
competition. The retail market in the country already experiences presence of retail firms both of
multinational level and small-scale convenience stores. These existing retail businesses poach
customers from their competitors, which puts immense pressure on the new entrant firms to
acquire customer bases of their own to sustain in the market.
The second barrier to entry of new retail firms is lack of financial resources. The small-
scale retail businesses like convenience stores usually have limited financial resources compared
to the multinational retail chains. Thus, these small-scale new entrant convenience stores owing
to their limited financial resources are not able to acquire an immense product line, which in turn
limits their customer acquisition. Thus, they generate very little profit, which makes it difficult
for them to sustain the competition from their established counterparts. These small scale firms
which fail to establish themselves upon entering the market of the UK are either compelled to
exit from the market or are acquired from their larger counterparts.
Part 2. Proposed business model using business model canvas:
Business model canvas of All You Need (AYN), London, the United Kingdom
Key Partners Key activities
Value
proposition
Customer
relationship(How)
Customer
segments(Who)
1. Suppliers of
skincare products
like soaps like
Unilever
2. Suppliers of
food products
like organic tea,
dairy products.
3. Suppliers of
1. Marketing of
convenience
products like soaps
and food products
at the only outlet
of AYN.
2. Selling products
on the ecommerce
portal attached to
1. Providing
high quality
products like
food products
and skincare
products.
2. Providing
offers like
1. Relationship with
customers by
offering high quality
FMCG products both
at the outlet and on
the ecommrce
platforms
2. Round the clock
support to customers
1. Upper and
middle class
customers- For
especially
organic and
premium
products.
2. Lower class
customers-

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homecare
products like
detergent
powder and floor
cleaners
3. Supplier of
website
4. Markerting
partners in
London
4. Banks
(financial
products like
insurance and
payment
gateways)
5. Risk
management and
insurance
companies
the official website
of AYN. discounts to
customers.
3. Providing
product
bundles to
enable
customers buy
more products
both at the
outlet and
online at less
rates per
product
on telephone and
email.
3. Disocunts and
product bundling to
enhance customer
purchase value.
4. Continuous
communication with
customers on the
social media to gain
their valuable
feedback.
5. Continuous
communication with
customers on social
platforms like
Yourtube and
Facebook, even if
they cease to be
customers
Affordable
products
Key
Resources(What) Channels(How)
1. Capital
investment of the
proprietor.
2. Interests earned
from the
investments of the
owner.
3. Business loan
borrowed from
Standard
Chartered (banking
partner)
Official website,
Youtube, Mobile app
Cost structure Revenue structure
Fixed costs(taxes, customs duties and
rent on property both in the home and
host markets)
Variable costs(Digital marketing costs,
social media marketing, ecommrce
marketing costs, marketing etc)
Semuivariable costs(electricity,
telephone, internet etc)
1. Marketing goods on own outlets and online portal
attached to official website

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Part 3. Different options available and decisions needed to be made:
Part 3.1. Route to the market:
All You Need should enter the market of London in the form of a convenience store. The
firm would be a sole proprietorship firm, at least in the initial phase. The firm would launch both
its brick and mortar outlet and its official website simultaneously. The official website would be
capable of giving full details about the product range whichSYN would offer to the customers. It
would also enable the customers order products online and make payments for the same using
cards or fintech platforms. The goods would be sent either by courier or by dedicated delivery
staff members of the firm. The firm in other words would be present on the digital platform right
from its very inception. The store would serve customers living within close proximity while the
ecommerce portal would enable serving customers living far away from the store. This combined
marketing of products would enable the firm acquire and retain wider customer base compared
to its competitors stores and cement its position faster.
Part 3.2. Legal structure:
AYN should comply with the business laws in power in the United Kingdom. For
example, the firm should apply for a business license and register for VAT. The firm should not
attach terms like limited or partnership to its name being a sole trader firm (GOV.UK. 2020).
The firm should comply with the laws in power in areas like hiring manpower and environmental
sustainability in the United Kingdom.

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Part 3.3. Funding options:
All You Need would be a sole proprietor firm. The initial funding would be provided by
the owner of the firm. The owner may also invest interests and other incomes generated from
sources like interests from banks. The business may also apply for a business loan with its
banking partner Standard Chartered Bank which would enable it to establish its operations at
least in the initial stage.
Part 3.4. Product line to be launched:
The product line of the products, which AYN would market in London, would consist of
food products, skincare products and homecare products. The convenience store right from its
inception should establish itself as a store, which is strict about product quality and customer
value creation. The firm in order to ensure that these two KPIs are maintained, would acquire
finished products from multinational FMCG companies like Unilever, Nestle and L’Oreal. It
would also market locally sourced products produced organically. For example, it would procure
organic dairy products and bakery products produced by supply suppliers.
Part 4. Areas needs management in the new business and approach to be taken:
Part 4.1. Manpower:
All You Need should acquire manpower to operate the business efficiently. The store
would initially acquire a marketing manager, an accounts manager, a procurement manager and a
delivery manager. The marketing manager would market the products in the market of London
using traditional marketing channels and digital marketing channels. The four store salespersons
would report to marketing manager. The accounts manager would look after the financial
transactions and would supervise the cashier. The procurement would procure supplies of