Creating a Business Plan: Go-Green Supermarket in London, UK Markets

This document presents a comprehensive business plan for launching a "Go-Green Supermarket" in London, UK, focusing on providing fresh, healthy, and nutritious vegetables and fruits alongside essential household items. The plan details the rationale for the business, driven by increasing demand for green and organic foods, and analyzes the micro and macro environment using SWOT and PESTLE frameworks. It further explains the value chain and business canvas models, the marketing mix, competitive analysis using Porter's Five Forces, market entry strategies, risk mitigation, and financial feasibility. The supermarket aims to cater to all age and income groups, emphasizing quality and customer service, and plans to expand internationally through online channels.

Entrepreneurship and
Business Development

TABLE OF CONTENTS
MAIN BODY...................................................................................................................................3
Business Plan...............................................................................................................................3
Rationale for launching the business...........................................................................................3
Analyzing the micro and macro environment factors present in business environment.............3
Explaining Value chain analysis and Business canvas model.....................................................6
Explaining marketing mix for Go-green super market................................................................8
Competitive analysis of Go-green...............................................................................................8
Porter 5 force model.....................................................................................................................9
Explaining the market entry strategies.......................................................................................11
Risk and mitigation strategy......................................................................................................11
Financial feasibility:...................................................................................................................12
REFERENCES..............................................................................................................................15

MAIN BODY
Business Plan
Products: Opening “Go-green supermarket” that will offer variety of vegetables and fruits
that are fresh, healthy and nutritious. Along with this the supermarket will also offer essential
household daily items such as soaps, washing powder, tissue papers, battery cells etc. that are
basic needs of very individual.
Target market: The supermarket will cater to all age group needs and will include all income
groups.
Special attributes : Major focus of supermarket would be to sell fresh fruits and vegetables.
Also, the supermarket would sell prepared food items that can be quickly consumed in case of
urgent requirements(Fichter and Tiemann, 2020).
Values: The supermarket will respect the dignity of every individual and provide clean
environment and a safe place to shop through great friendly service.
Location : Supermarket will be opened in London, UK and international expansion would be
done by means of online medium such as websites.
Involvement: It will involve suppliers, distributors, workers, managers etc.
Marketing strategies: The strategy that would be adopted by supermarket would be licensing
strategy that will allow to smoothly conduct activities without any government intervention (Ing,
Osman and Tze-Yin , 2020).. Also, this strategy requires lower capital requirements and greater
returns on investment which is beneficial while starting a new business
Rationale for launching the business
As the population increases there is growing concern of consumption of more green
vegetables and organic foods. It is estimated that there was 52% rise in overall consumption
during the pandemic(Hult and Ketchen, 2017). Therefore, this supermarket in UK will fulfill the
growing needs of individual by providing variety of healthy foods products and essential items
under one roof. The items provided would be freshly packed and also easily available in local
regions of UK so that customers don't find many difficulties in finding the location to purchase
such goods.
Analyzing the micro and macro environment factors present in business environment.
SWOT analysis:

Strength
 Fresh and high quality products made
readily available.
 Use of technologies to make faster
payments that saves time and money.
Weakness
 Changing customer demands might
create difficulty in making variety of
goods available at limited time.
 Lack of advertising campaigns due to
low investment might result in lower
sales.
Opportunities
 Changing price strategy may attract
new potential customers.
 Developing new promotional deals will
connect customers.
Threats
 Entry of similar competitor in market
with lower prices may affect the
revenue of firm.
 If economy is weak at some point of
time than sales would be affected.
PESTLE
Political factor:
Political instability in country may create negative impact on the sales of supermarket as people
would have very less money to be spent on essential items as prices of goods would be very
higher. Other factors such as government rules, regulations and tax rate also affect daily
operations of business (de Bruin and et.al., 2020). Another example is that if certain trade
restrictions are imposed by the government than supermarket would not be able to export certain
goods to other regions where the demands of goods is very high and thus it would create
negative impact on the quoted firm of which is lower down sales.
Economic factor:
Various factors such as unemployment rate, economic recession, inflation etc. also affect the
overall working of business. For instance, if labor laws are changed and wage rate is increased
than firm need to comply all the rules of government and pay higher wages to workers this way it
will create negative impact if it is start up business as initial investment is very low and costs are
very high. On the other hand, if unemployment rate is very high than the quoted firm can hire
working individuals at low wage rate which will be positive factor for the business.
Social factors:

With the changing needs customer demands of vegetarian and vegan products is increasing
rapidly and hence it would be beneficial for the quoted firm to sell those goods which are fresh,
green and also easily available in local regions(Casañ , Alier and Llorens , 2021). Also, online
delivery system has enabled the customers to get products at one click which may be proved as
positive point for quoted firm while expanding into international regions.
Technological factor:
Changes in technologies help the firm to produce large amount of products in short period. It
also saves the additional wastage of resources as goods are timely produced. In the current era
this factor can be proved positive as firm can develop their own websites where goods can be
sold easily without much marketing efforts. Moreover, with the use of technology firm can easily
sell goods outside the UK region too.
Legal factor:
Government laws such as company laws, environment laws have to be complied so that security
in the business in maintained and government intervention can be avoided. This factor may
create problems for firm if laws of the company are very complex and lengthy as many legal
formalities need to be fulfilled. Other than this if firm fails to pay minimum wages to the workers
than it might face problems of discrimination from the country people and legal authorities
which also creates the bad image of business.
Environmental factors:
Factors such as climate, pollution, temperature etc impacts in the working of business for long
period. The Best environmental practices adopted by quoted firm may create positive impact on
overall working. Hence, due to less noise, land, air pollution not only improve the working
conditions' of business but also help to create a positive image of the firm on the consumers as
more individuals will build trust and loyalty towards the brand and its products offered.
Explaining Value chain analysis and Business canvas model

Value chain model based on the primary and secondary activities of business. Primary
activities are directly related to the goods and services (Benrqya and Jabbouri, 2021).
The secondary activities are included with enhancing the efficiency of the product to
obtain strong competitive advantages surrounded by other companies.
Primary Activities of company-
Inbound Logistics- The company appointed finest quality of goods such as groceries,
fruits and vegetables, bakery products etc. In case of fruits and vegetable that will be procured
directly from farms, all the products will send to the logistic company for further operation
process.
Operations- After collecting all the products the next process is for machining,
packaging and assembling the product. Operation is the important process of the company to
converting raw material into finished goods and add value in the product it changes input into
output.
Outbound logistics- This is the process of storage and distribution of the products to its
retail locations, that are important because there is no presence of intercessor in product selling
for this supermarket also, this type of products is mostly sold in the stores.
Marketing & sales- Go-green will promote their super market by online as well as
offline activities such as pamplates, roadside posters so that nearby people can see hoarding and
shop from organisation.
Services- Company provide in-store services to build customer loyalty in UK with the
best quality of products and fresh vegetable and services (Charter and et.al., 2017). They also
facilitate home delivery services for its customer.
Secondary Activities of company-

Infrastructure- It denotes all the activities related to accounting, planning, financing and
strategic management. Effective management of infrastructure optimize the value whole chain.
Human resources management- Go-green can analysis HRM by evaluating different
aspect of human resources including, recruiting, training, selecting, rewarding etc.
Technology development- Firm will use automation software for accounting and
technology based customer services for product designing and data analysis.
Procurement- Organization link with multiple value chain to optimize inbound,
operational and outbound value chain services.
Business canvas model:
It is a template of strategic management that used for developing new business plan and
documenting existing ones (Daou and et.al., 2020).
Key partners
 Distrib
utors
 Suppli
ers
Key activities
organic fruits
vegetable
groceries
Value
propositions
High quality
grocery foods and
vegetables
(Kerzel, 2021).
Customer
relationships
Dedicated assistance
will be provided to
each customer to
provide the best
experience.
Customer segments
segmented market
Key resources
Raw materials
Human
resources
Machines and
equipments
Channels
online and offline
Cost structure
fixed and variable cost in the production
process.
Revenue streams
Lower price with good quality of groceries and
fresh vegetable and fruits.

Explaining marketing mix for Go-green super market
Product- Go-green will introduce wide range of products including groceries, fruits and
vegetable, bakery products etc. (Davies and Doherty, 2019) The major products are organic fruits
and vegetable that are directly imported from farms of UK.
Place- Organization will be established in UK and also provide all the products online at
website of Go-green. There will be 10 stores in UK and nearby countries with huge crowds of
customers at these stores because it delivers product at home.
Price- Firm will follow price skimming strategy to provide high quality products to their
customers. This strategy will enhance the customer base and improve the brand image of the
products in positive manner. Organization will enjoy economies scale and continuously work
with their suppliers to organize supply chain efficiently to reduces prices.
Promotion- Company will majorly follow social media marketing strategy to promote
their products. This also advertise by newspaper and roadside hoarding at airports because it is
start-up in UK and needs to promote widely. Social media helps customer to share their
experiences and reviews over the products.
People- Firm will focus on all age group people who are upper middle class, to improve
the customer base and help to success of the organization (Davies and Doherty, 2019). Go-green
will invest time and huge amount for training and development for employees. The reward
scheme will also start for employees to motivate them and appreciate their work.
Physical evidence- Organization will focus on well-designed interior of stores and other
tangible representation such as furniture where products showed, fantastic brochures and
business card to attract customer. Company will also focus on attractive packaging of products,
that builds good image of branding for customers.
Process- Firm standardized the set of activities to complete the customer order on time
and assist them for billing in online services (Davies and Doherty, 2019). In offline stores
employees are more focused when attending the customer to helping them in picking the
products.
Competitive analysis of Go-green
Basis Go-green Oak cash & carry ASDA
Product Product offers by firm are
groceries, fresh & organic
It has wide variety of
foods beverages,
Product offer by company
are groceries, stationeries,

fruits and vegetable. drinks etc. toys etc.
Target
customer
Company target all upper
middle and lower class
consumer
Oak cash & carry
targeted customers
only middle class
Targeted men and women
from High class society.
USP The quality of products are
much higher.
The price of products
are high as compared
to others
Attract customer by send
them gifts & discount.
Marketing
strategy
Go-green promote their
products by social media
websites like Instagram,
Facebook and watsapp as
well as offline services like
roadside hoarding etc.
They use online
advertisement strategy
in terms of posters at
airports (Havice, E.
and Campling, 2017).
Marketing strategy
followed by ASDA are
online only.
Distribution
Channels
Direct selling at online and
offline stores
Offline stores Both online and offline
stores.
Market size Firm will generate $8
million revenue per year.
Revenue generated by
Bloomtown is $3
million per year.
$10 million revenue
generated by cited firm.
Pricing
Strategy
Price skimming strategy will
follow by company.
Price penetration
strategy followed
Company also use price
penetration strategy for
their products (Hart and
et.al., 2020).
Porter 5 force model
 Rivalry within the industry: High degree of competition will ensure that firm develops
new and innovative products in the market so that it can stay ahead in the competition.
This way consumers will also have variety of products available in the market.
 Threat of substitutes: If there are various products that are available in the market at
lower prices than customer may switch to those alternatives as large quantities of good

can be made at relatively very low costs which may create negative impact on the quoted
firm.
 Threat of new entrants: New entrance of competitors in market may create lots of
problems for the quoted firm as company position can be relatively weakened.
Companies in these situations cannot charge higher prices for the products as customers
might easily shift from one source to another (Porter’s Five Forces of Competitive
Position Analysis, 2021). New entrants may also force companies to involve in
continuous innovation that may might not be possible for small firms.
 Power of buyers: Customer also influences the sales of product as many buyers of the
firm might not be able to change the prices of product frequently but if there are limited
number of buyers than company might face problems of price negotiation as each
customer wants better deals than once offered to others.
 Power of suppliers: Large number of suppliers help the firms to easily switch to other
options as input and raw materials provided by other source is reasonable and at very low
cost in regard to current supplier. On the other hand, if the number of suppliers are very
less than power remain in hands of supplier to charge extra prices for the raw materials
from the quoted firm.
STP analysis
It is the three step model that examines the segment, targeting, positioning of the product
and communicates its benefits to various customer segments.
Segmentation:
Segmenting the market is very essential to target the right masses of people and for this purpose
the quoted firm will use demographic segmentation which includes division on various basis
such as
 On the basis of age, it would all the age group as it caters needs of all people.
 Go green supermarket would focus on both genders male and female.
 Supermarket would target on working individuals, housewife, students, children etc.
Targeting
The one which will be adopted by the Go green supermarket would be mass marketing
strategy as company would target all the individuals with one single strategy. This is also

suitable for this company as it's a startup company with the limited resources and thus it will
develop those goods that satisfies the need of every individual.
Positioning
The firm will expand the market using various marketing strategies that will help the firm
to introduce products that are not otherwise available in other supermarkets(Lopatin and et.al.,
2019). Moreover, the firm will also use various sales and promotion activities to establish the
image of product in the market. To stand in the market against the competitors the firm will also
introduce various promotion and offers on various products in regular intervals so that more
potential customers are attracted towards it.
Explaining the market entry strategies
There are various strategies through which the firm can enter into new markets. Such as
licensing, franchising, joint venture, partnerships, through Internets etc(Onyusheva and
Tantisewekul, 2018). The entry strategies adopted by the firm depends upon the resources and
amount of investment the firm is ready to spend on expansion. The best market entry strategy
that can be used by the quoted firm can be either through licensing or joint venture as they are
the best option for startup firms.
Risk and mitigation strategy
Assessing risk- There are no surety that customer would like the product or services
because at the time of beginning, if firm charges more on the product it may decrease the cost
with very less profit. Also, there are many supermarkets in the UK and the competition is high
among them. To overcome this problem organization will sale their product on low price and
then rises the price accordingly.
Talent risk- This risk is related to hiring wrong team member in the company as well as
losing good team member in the company (Niemi and et.al., 2020). Risk is high at the time of
start-up then it is reduces according to the growth of the firm. To overcome talent risk cited firm
will hire the right candidate and provide them proper training related to their department. On
other hand, for existing employees organization will provide them increment and promotion for
their motivation.
Financial constraints- It is not necessary that every firm has own money most of the
entrepreneur are based on other financial institutions such as bank, angel investors etc. that

provide loans. By taking loan from bank it has high interest rate so to mitigate this constraint
firm will take loan from government institutions such as SBI.
Lack of resources- There will be lack of resources in terms of human resources,
technology resources, financial resources etc. For supermarket, it is necessary to established
storage facility for the products because groceries has wide variety of products. Improper
management of resources may damaged the product. To overcome this risk firm will take
interruption insurance for the stocks and health insurance for their employees.
Cyber security- Nowadays all the data related to employees, resources, sales, strategy
are feed in computer system that can be hack by any competitor's organization (Reardon and
Minten, 2021). To mitigate this problem firm will install its own network that only access in the
office or take proper securities related for the same such as VPN(virtual private network) etc.
Language barriers- It has been identified that language barrier is most of the common
barrier in any organization. This is necessary for supermarket to convince their customer
accordingly. To overcome this barrier firm will provide training to employee’s regarding
customer relationship and use easy words that can easy to understand by all age customer.
Liability risk- At the time of start-up it is necessary to follow all rules and regulation
regarding the organization such as firm cannot hire those worker who are not above 18 years.
This also includes business licenses, employment laws, tax compliance and corporate
governance (Maman, Mahbubi and Jie, 2018). To avoid any hurdle company will provide health
and safety security for employees and plan for emergencies such as explosions and fires.
Financial feasibility:
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10000 12000 67508 10972
8.48
186789 64892
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70146
8.413
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461
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4.661
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