Hokey Pokey Ice Cream Bar: Detailed Business Plan for Kensington

This report provides a comprehensive business plan for the launch of an ice cream bar, named Hokey Pokey, in Kensington, UK. The plan includes an introduction to the business, a market analysis of the frozen food industry, and details on the business type, which is a hybrid of manufacturing and service. Part 2 applies the McCarthy 4Ps (Place, Product, Price, Promotion) to the business, detailing location, product variations, pricing strategies (premium, penetration, and value-based), and promotional strategies (advertising, digital marketing, and brand ambassadorships). It also covers employee roles, advantages and disadvantages of different staffing contracts (zero-hour and agency), and customer segmentation. Part 3 discusses the potential success of the business, expansion opportunities through various strategies such as market penetration, market development, product development, and diversification, as well as internationalization. The report concludes by summarizing the key aspects of the business plan and its potential for success and growth. The business plan is designed to provide a competitive edge by offering a wide variety of ice cream forms and flavors, targeting a broad customer base, and utilizing effective marketing and pricing strategies to ensure profitability and sustainable growth. The report is designed to assist students with their studies and is available on the Desklib platform, which provides all the necessary AI based study tools for students.

An Ice cream bar in
Kensington
(Business Plan)

Table of Contents
INTRODUCTION...........................................................................................................................1
PART 1............................................................................................................................................1
1.0 New Business Venture...........................................................................................................1
1.1 Business Type........................................................................................................................1
1.2 Research.................................................................................................................................1
PART 2............................................................................................................................................2
2.1 Apply McCarthy 4P's.............................................................................................................2
2.2 Employees / Staffs.................................................................................................................3
2.3 Customers / Clients................................................................................................................5
PART 3............................................................................................................................................5
3.1 Successful of Business and Expansion opportunity for the business....................................5
CONCLUSION ...............................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Business refers to the activity which include the purchase and sale of products and
services in order to earn money and gain profit. Business environment refers to the surroundings
of the business in which it involves and run its operations. Business environment consists of 2
environment – internal environment and external environment. Business and these two
environmental factors influence and get influence from each other. Business plan is a written
document in which the nature, sales and marketing strategy of business are being written by
entrepreneur(s) (McKeever, 2016). Report will highlight the business plan of new business
venture of an ice-cream bar in Kensington.
PART 1
1.0 New Business Venture
A new ice-cream bar, namely HOKEY POKEY ICE CREAM BAR is open in
Kensington, UK. This bar is working under the frozen food industry. This ice-cream bar provides
various variations in ice-cream such as Gelato, Sorbet, Frozen Custard, Banana Foster, Kulfi,
Halo-Halo and Ice-Cream cone. It has wide range of varieties and forms which act its USP.
Company would have a competitive edge because it brings a lot of ice-cream forms and varieties
which is new for the public.
1.1 Business Type
The type of Hokey Pokey Ice Cream Bar is Hybrid business which is combination of
manufacturing business and service business. Company will buy raw materials and make ice-
cream at its own and provides itself to its customers. The form of business is Company where it
is has a separate legal entity. It is registered with company house. Also, it is easy to form. Owner
of the company has limited liability. Also, it has a lot of tax benefits (Burns and Dewhurst,
2016).
1.2 Research
The ice-cream products in frozen industry has been increasing. Value growth has been
increasing since 2016. The ice cream market is thus estimated at £1.4 billion in 2018, up 26%
from 2013. Competitors of Hokey Pokey company are Scoop, Four Winters, Oddono's and Ben
& Jerry's etc.
Revenue from ice-cream market amounts to 1171.92m in 2019. The average per capita
consumption stands at 5.8 kg in 2019. There is an increasing demand in ice-creams in UK. The
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hokey pokey bar also create demand because it provides variates and forms of ice-cream which
is sugar free, fewer calories and available at the reasonable price (Dale, 2019).
PART 2
2.1 Apply McCarthy 4P's
Place
Hokey Pokey ice-cream bar has chosen its location in Kensington because it is
commercial area and people here do shopping and eating a lot. Also, due to commercial area,
income per capita is also high. Customers will also have easy access to the company. It has a
great space for parking and sitting area near the bar. The location is quite famous as the
population knows about the location and area established in the Kensington. Competitors of
Hokey Pokey company are Scoop, Four Winters, Oddono's and Ben & Jerry's etc. in Kensington.
Product
This ice-cream bar provides various variations in ice-cream such as Gelato, Sorbet,
Frozen Custard, Banana Foster, Kulfi, Halo-Halo and Ice-Cream cone. Gelato is a form of ice
cream which is a combination of custard, cream and milk without eggs. Sorbet is another form of
ice cream which is made from sweetened water with various kind of favours. Frozen Custard is
another form of ice cream which is the combination of custard, eggs, cream and milk. Banana
Foster is another form of ice cream which is made from bananas and vanilla ice cream with a
sauce, brown sugar, cinnamon, dark rum and banana liqueur. Kulfi is another form of ice cream
which is prepared by evaporating sweetened and flavoured milk with varieties of flavours. Halo-
Halo is another form of ice cream that is a mixture of shaved ice and milk to which are added
various boiled sweet beans and fruits, and served cold in a tall glass or bowl. Ice cream cone is a
wafer which help in held the ice-cream in hand and eaten without spoon or bowl (McDonald and
Wilson, 2016).
Price
Hokey Pokey company will use 3 types of pricing strategies according to the form of ice-
creams which are mentioned below -
Premium Pricing Strategy
Hokey Pokey company is charging high prices for some products which is new for the
Kensington Market and customers never try before. For example - Banana Foster and Halo-Halo
Penetration Pricing Strategy
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It is a pricing strategy in which company is charging low prices as compared to its
competitors in order to attract the customers towards the company. Foe example - Ice-Cream
Cone, Kulfi and Frozen Custard.
Value Based Pricing Strategy
In this strategy, price of the ice creams products will be decided on the base of customers'
perceive value. For example – Gelato and Sorbet.
Promotion
Hokey Pokey company will use 3 types of promotional marketing strategies such as -
Advertising Strategy
Advertisement refers to the blue print to help Hokey Pokey company to promote its
products and its presence in the market through various forms such as TV, Radio, New Papers,
Websites and Billboards etc. It is the most common and used strategy. It helps company to reach
its customers at the wide range.
Digital Marketing Strategy
It is the strategy in which the promotion of company and its products is done through
digital and social media platforms. It involves making an account on digital platforms and
posting about the products, business and happy clients. It also includes e-advertising and advert-
gaming marketing etc. it is the lower cost strategy adopted by company. It also helps you to
identify the trend and craze of business with another business which is beneficial for the
company to plan for the future accordingly (Stead and Hastings, 2018).
Brand Ambassadorships
Brand ambassador are the celebrity personality who is chosen by company to promote its
business and products. It also can be used by company in order to increase its sales and brand
value.
2.2 Employees / Staffs
JOB ROLES ASSIGNED TO THE EMPLOYEES / STAFFS -
Manager of Hokey Pokey
Their role is to marketing, positioning and branding for the company. They are the one
who take care of the management of company. They are the one who play an important role in
hiring the staffs for the company. Their main roles is to solve disputes and problems face by
customers.
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Waiter of Hokey Pokey
Their role is to serve the ice-cream to their customers and see the management of sitting
area for the customers. Also, they are the one who take care of the customers' satisfaction and
comfort in the Hokey Pokey Company. They remove dishes and glasses from tables or counters,
take them to kitchen for cleaning (Abualoush and et.al., 2018).
Crew Members of Hokey Pokey
Their role is to billing for the customers, prepare ice cream according to the requirements
of the customers. Their another role is to check the maintenance of quality and materials
available in the company.
ADVANTAGES AND DISADVANTAGES OF HAVING ZERO HOUR CONTRACT
STAFFS AND AGENCY STAFFS
Advantages of Having Zero Hour Contract Staffs
Flexibility – During the season when there is work load in organisation, company can get
relax because zero contract hour staffs are hire which reduce the work pressure.
Affordability- When they don't work, company don't need to pay them. Thus, it is
affordable for the company to hire zero hour contract staffs.
Productivity – Due to flexibility for work, the productivity of company is increase which
help company to earn profit.
Disadvantages of Having Zero Hour Contract Staffs
Unpredictability – When staffs says no to the company when they need them more, it is
difficult for the company to handle the work load without availability of staffs.
Lack of Control – Company's control over zero hour contract staffs are low. Also, they
can't refuse them to take another employment in another company.
Advantages of Having Agency Staffs
Time and Cost Saving – It saves the company from wasting its time and cost for
recruiting and selecting the potential customers for the company. Company just need to tell about
the requirements of staffs to the agent and they provide staffs at the door of company.
Try Before Official Hire – Agent allows company to check on the new staffs before
giving him an official employment. If the staff is suitable for the company, he/she will hire. But
if not, he can be sent back to agency (Harrison, Harrison and Shaffer, 2019).
Disadvantages of Having Agency Staffs
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High Fees - Agent charges high fees from the company to provide assistance in
availability of staffs to Hokey Pokey Company.
Lack of Knowledge – Agnecy staffs don't know about the company and its procedures
which lead them to do mistakes at work place.
2.3 Customers / Clients
Hokey Pokey Company identify the London market as its customers target market.
Customer Cohorts of the company are every customers whether male/female/ youngsters/
adults/old age. Because everyone loves ice creams. But company mainly focuses on the
following two customers segments – Kids and Youngsters. Kids loves sweet and cold dessert.
Youngsters likes to have a dessert after eating meal. And ice cream is the best option to choose.
PART 3
3.1 Successful of Business and Expansion opportunity for the business
SUCCESSFUL OF BUSINESS
Yes, company will become successful because it has wide range of products which can
be fulfil the different needs of different kinds of customers. Also, ice cream market will never
decline and in this industry, trend regarding ice-cream also not changes too much. If there is any
change so that change can be made easily thus, company can become successful by expanding its
business outside New york and UK (Rothaermel, 2015).
EXPANSION OPPORTUNITIES FOR THE BUSINESS
Hokey Pokey Company have a lot of opportunities for expand its business in
another cities of UK as well as at the global level by entering into another market of another
country. For that company can adopt following expansion-strategy -
Expansion Through Concentration
A strategic approach in which a business is focused on a single market or product. This
allows the company to invest more resources in production and marketing in that area, but in the
level of competition, the risk of significant loss in the increase or increase in the demand carries.
On the basis of this, company can adopt following strategies -
 Market penetration strategy
 Market Development
 Product Development
Expansion Through Diversification
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Diversification is a strategic approach that involves entering into a new market or
industry - the one in which company does not currently work and also creating a new product for
that new market in that industry (Expansion Strategy, 2019).
On the basis of this, company can adopt following strategies -
 Concentric Diversification
 Conglomerate Diversification
Expansion Through Cooperation
Expansion through cooperation is a strategy, when company enters into a mutual
agreement with its competitors business and also do competes with each other at the same time,
whose purpose is to expand both companies' market potential, size and value. On the basis of
this, company can adopt following strategies -
 Merger
 Takeovers
 Joint Ventures
 Strategic Alliance
Expansion Through Internationalization
The need for expansion through internationalization arises when company has explored
all the possibilities of expanding at the domestic level and looking for opportunities to expand its
business beyond the national boundaries at global level. On the basis of this, company can adopt
following strategies -
 Transnational Strategy
 Global Strategy
 Multi Domestic Strategy
 International Strategy (Alcácer, Dezső and Zhao, 2015)
CONCLUSION
From the above study, it has been summarised that business plan plays an important role
in new start-up business. It is considered to be a part of strategic tool for the company. It not only
help company to conduct its activities in proper manner, but also help company to achieve its
short term goals. Employees also plays crucial role in the successful organisation activities and
because of them, organisations are able to achieve their targets and earn profits. Business Plan
includes marketing and promotional strategies because without these strategies, company will
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never be able to attract its customers and also customers never be able to understand and fulfil
their needs and wants. Also, marketing mix (4P) and various expansion strategies help business
to grow more with its products trends and demands at domestic and global level.
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REFERENCES
Books And Journals
Abualoush, S.H., and et.al., 2018. The role of employees’ empowerment as an intermediary
variable between knowledge management and information systems on employees’
performance. VINE Journal of Information and Knowledge Management Systems. 48(2).
pp.217-237.
Alcácer, J., Dezső, C. and Zhao, M., 2015. Location choices under strategic
interactions. Strategic Management Journal. 36(2). pp.197-215.
Burns, P. and Dewhurst, J. eds., 2016. Small business and entrepreneurship. Macmillan
International Higher Education.
Dale, B., 2019. One Shot Pub: A Business Plan.
Harrison, D.A., Harrison, T. and Shaffer, M.A., 2019. Strangers in strained lands: Learning from
workplace experiences of immigrant employees.
McDonald, M. and Wilson, H., 2016. Marketing Plans: How to prepare them, how to profit from
them. John Wiley & Sons.
McKeever, M., 2016. How to write a business plan. Nolo.
Rothaermel, F.T., 2015. Strategic management. McGraw-Hill Education.
Stead, M. and Hastings, G., 2018. Advertising in the social marketing mix: getting the balance
right. In Social Marketing. (pp. 29-43). Psychology Press.
Online
Expansion Strategy. 2019. [ONLINE]. Available through:
<https://businessjargons.com/expansion-strategy.html>
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