Introduction to Business: Ice Cream Bar Business Plan

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Introduction to Business

Table of Contents
Introduction................................................................................................................................4
Business Plan: Part 1..................................................................................................................5
Business Plan: Part 2..................................................................................................................8
Business Plan: Part 3................................................................................................................12
Conclusion................................................................................................................................13
Reference List..........................................................................................................................14

Introduction
A plan done and strategies made to work out in accordance to business objectives and goals
are called a business plan. In this study, it is going to understood that how to open a new ice
cream bar near Kensington, in order to attract more consumers. Kensington is a place located
at London. This place has its own historical importance as well as commercially viable
(Data.gov.uk. 2019). The study will give an outline about how a new company will make and
execute their business plans. Moreover, different strategies and plans that will be adopted by
the company in order to sustain in the competing market will also be discussed. Lastly, how
can the company expand its business outside the local area will also be mentioned.

Business Plan: Part 1
1. Outline your new Business Venture
State the nature of the business and what product or service it provides
Now a day people are so much stressed in their daily routines, they very often need a place of
refreshment. In context to this, the company has planned to open an ice cream bar near
Kensington, keeping in mind the historical importance of this location. The place is
comprised of various important buildings and museum. Thus, the company can target a huge
number of populations by serving them new types of ice creams as cola float ice creams or
natural fruits made ice creams and others. Therefore, the nature of the business will be food
services.
State your USP and explain why your business would have a competitive edge.
Since the company is going to open their new ice cream bar nearly at Kensington, it must
build some USP of their product in order to compete with the existing rivalries. The
following are the USPs is:
 Offers healthier and nutritious products:
Unlike other ice cream branded company, the company must assure their consumers
that their products are fatless and contains ingredient, which gives high energy. Reducing the sugar content and nutrient rich offerings for kids:
They must be concerned about the health of the kids and children. It is because
children are mostly attracted to these products. Therefore, they must prepare their
products in such a way that it contain less sugar and enriched with nutrients. Fresh products and fast packaging facility:
The company must maintain its quality. This can be done by using fresh milks and
cream in preparing their ice creams. Moreover, their delivery process must be very
quick and fast. The people must not have to wait in the queue in order to get their
orders delivered (Greenwood, 2016). Gluten-free ice creams:
Gluten is an unessential nutrient that can damage intestine or other parts of the body.
Thus, they must assure that their products are gluten free. As a result, consumers can
enjoy eating ice creams at the same time remain care free about their health.

 People’s attraction towards different flavours :
The company must prepare some new flavours and types of ice cream for example,
coconut ice creams, almond ice creams and others. This will help them to attract more
customers and gain a public image in the market.
1.1 Business Type
Is your business a Partnership or a Company formation? Explain why you have chosen
this business model
The business will be completely based on forming limited company. It is because of the
following reasons:
 Corporation tax are lower than income tax
 No interdependency and legal identity
 No division in profit management
 The company will have limited liabilities
1.2 Research
Research into the business service you have chosen; identify existing competitors.
The local inhabitant of Kensington usually likes to have seasonal fruits and vegetables
because there are very much health cautious. Moreover, they focus on food items, which are
enriched in vitamins and other nutrients. They also like to have ice creams and desserts items.
Thus, the company must prepare their ice cream flavours related to fruits and other vitamin
rich ingredients. Urbio, Towergarden, YP Supplier, Wall’s and others are the existing
rivalries of this company.
Illustrate using UK and local statistical data; marketing surveys (Eg: ONS; Interbrand)
Explain why you think there is a demand or market for your service

Figure 1: Contribution to overall growth
(Source: Ons.gov.uk, 2019)
In context to the above figure, the overall growth in food and non-alcoholic beverages is very
low. In addition, the growth in restaurants and hotels is also very low. Therefore, the
company thinks that there is a huge market demand in this domain in order to improve the
growth in food services.

Business Plan: Part 2
Part 2.1: Apply McCarthy’s 4Ps and any other relevant models:
McCarthy’s 4Ps model consists of promotion, product, price and lastly place.
Product
Under this category, the company must focus on their products quality, packaging services
and guarantee. In context to quality, the company must ensure that they will provide fresh
and healthy products to their customers. The company must use preservatives in order to keep
their product fresh for longer duration of time. In this way, they can maintain their as-ethic
values towards the consumers. The ice creams must be rich in nutrients and must be less fat
content. The company must ensure the use of biodegradable and eco-friendly packaging
services so that it does not harms the environment (Ratcliffe, 2018.).
Price
The company can use any of the three pricing models:
Competitive Price Model
Since Kensington is a busy area and there are already existing companies having their
markets in that area, therefore, the company must try to keep their prices low in order to drive
out the competitors. At the same time, the company must maintain their high quality of the
products and items (Dixon et al., 2016).
Value Price model
By using this model, the company must have to explain their distinctive features and quality
of their products and services to the customers. Based on those values, the company is liable
to set the prices of their product. For instance, the company must explain that in what way
their ice creams are healthier than other company’s product. Thereby they can charge a
justified price from the consumers.
Portfolio Price model
The company adopts this when it has various products and services but each with a different
cost and value. For instance, it depends on the consumer which product they will choose.

Based on that, the company will charge the respective price. It is somewhat beneficial for the
company because it allows them to display a wide variety of brand and flavors to the
customers. In addition, the customers can also a wide range of choices in choosing their
affordable product (Neuman and Schied, 2016).
Promotion
The company must use all type of communication media like social networks, radios, TVs,
and others in order to promote their brand as well as their newly launched ice cream flavors.
This will aware the people about their new openings. It will also help them to gain more
customers. During the promotions, the company must aware the people about their quality
and other services which they will offer to their customers along with the basic product.
Place
Since Kensington is a very important place in context to business and commerciality.
Therefore, the company is surely going to face a strong competition on its domain. Thus, in
order to gain customers and earn profit, the company must have to provide initial discounts
and offers to their products. Sometimes, they may have to go for offers like “buy one get one
free”. This will lead their customers to taste various flavours and if they like those items, then
it will be easier for them to sustain in the market (Arif and Balo, 2017).
The company is introducing a new product in a new market. Therefore, according to
Ansoff’s matrix, the company must apply Market Diversification.
Market Diversification
In order to adopt market diversification, the company must be financially strong.
Diversification can be further classified as “Concentric diversification” and “Conglomerate
diversification”. The first one is dealing with a new product being launched in a new market
but the company has already launched this product in other markets and earned some profit.
While the second diversification deals with launching of a new product in a new market for
the first time. This is somewhat risky for a startup company, if in case it is trying to enter a
market where already there are many existing competitors with large shares. On the other
hand, the first diversification is profitable. In context to place a Kensington, which is a very
busy commercial area, the company must have proper experience about launching a new
product in a new market. If the company has already earned profit by launching this product

in other markets, then it will have readymade predefined strategies ready in order to tackle
the competition in the new market. Therefore, it is suggested that the company must try their
new product in a less competitive market, so that they can also offer a strong fight to its
rivalries (Bocken et al., 2016).
Part 2.2 Employees/ staff
Explain the job roles assigned to the business employees. Eg: role of the manager/s
In context to a manager, they must be very aware about the threats offered by the existing
competitors while launching the new products in the market. The manager should look out
for employees on whom they can rely upon. In addition, because the company is following
market diversification, the managers must also select employees who are hard working and
highly committed to their workplace. The manager must be capable of dividing the
employees into different groups and assigning different job roles to different teams. This will
result in overall growth and effective performance of the company and they can tackle with
their competitors properly (Mossalam and Arafa, 2016).
Explain the advantages & disadvantages of having Zero hour contract workers and
Agency staff.
The zero hour contract is a casual contract between the employer and the worker in which,
the employer does not guarantee any minimum hours of work and the worker does not give
any commitment about work completion (Prowse and Prowse, 2015.).
Advantages of zero hour contract workers Disadvantage of zero hour contract
workers
 It offers flexibility to the workers
 Helps the manager in order to meet
up with the excess demand
 It also helps in coping up with
absenteeism of employees to work
 Helps to meet a particular event in
order to match the deadline or
commitment to the customers
 In context to workers, they do not
have any job security and fixed
income
 Since the workers do not give any
commitment to the managers, it
leaves them in a dilemma about the
commitment they did to the
consumers.
 The workers may leave the job
without any legal notice. This may

leave the company in problematic
situation.
Table 1: Advantages and disadvantages of zero hour contract workers
(Source: Created by the learner)
2.3 Customers/clients
Identify your customer target market. Who are your customer cohorts?
Segmentation Targeting Positioning
Segmentation for a company that is going to start a new business on ice creams can segment
its consumers based on age, eating behaviors, income of a person, lifestyle and others. Ice
cream is a product, which is mainly liked by all people irrespective of their age, gender and
lifestyle. However, the main constraint in order to have it is its cost and health consequences.
Thus, the company must offer their products to all people irrespective of the segmenting
factors at low cost. However, they must maintain their cost as affordable by everyone
(Camilleri, 2018).
The company can primarily target the teenagers and those persons who love to have ice
creams irrespective of its cost. Moreover, they must widen their range of flavors to attract
more customers. However, in order to target the people who are health conscious they must
ensure that their products contain nutrients and fatless ingredients.
The best way to position their product in front of the customers is by displaying themselves
as by being health cautious for the consumers. Moreover, they should also widen the range of
flavors keeping in mind the fickle mindedness of the teenagers (Andaleeb, 2016). Thereby,
offering them to try different flavors.

Business Plan: Part 3
Future Plans
3.1 Should your business be successful, explain how the business could expand in the
future. Illustrate by giving examples, what strategies you would adopt to expand.
According to the above discussed plan and strategy it can be predicted that the company will
be able to develop their market and sustain in the competition. Moreover, feasibility of their
product will depend on what is the level of quality they are offering to the consumers without
compromising with the profits and price. Thus, it can be expected that the company will be
highly successful in creating their brand image and market reputation. In context to business
expansion, the company must follow strategies like franchising. It is because this strategy
reduces the risk of failure (Sun and Lee, 2019). At the same time franchising helps in
competing with big businesses and growing relationships with the suppliers. In addition, it
can sell its products in general retailing shops and supermarkets to increase the brand
awareness among the local people and boost productivity.

Conclusion
From the above study, it can be concluded that any start up company before building its
business must have a proper idea about the market where it is entering. In addition, to tackle
with the threats offered by the existing rivalries they must build strong strategies and
techniques. Moreover, they must have a backup plan ready in case their first plan fails. The
manager must be very thorough in studying the market and selecting employees who will be
fruitful and productive for the company. Lastly, if the company sustains in the competing
with its rivalries then it must develop strategies to expand their business to other markets.