Ice Cream Parlour Business Plan: A Kensington Market Analysis

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INTRODUCTION TO BUSINESS
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Table of Contents
Part 1................................................................................................................................3
1.1) Outline of the business............................................................................................. 3
1.2) Business type............................................................................................................3
1.3) Research on Business..............................................................................................4
Part 2................................................................................................................................5
2.1) Apply McCarthy’s 4ps model.................................................................................... 5
2.2) Job roles assigned to the Business employees such as manager’s role..................6
2.3) Advantages & disadvantages of having Zero-hour contract workers and agency
staff.................................................................................................................................. 8
2.4) Identification of targeted customers and customer cohorts.......................................9
Part 3..............................................................................................................................11
3.1) Business expansion in future..................................................................................11
3.2) Strategies to be adopted.........................................................................................11
Reference list................................................................................................................. 12
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Part 1
1.1) Outline of the business
Ice cream bars are referred to particular places or stalls that sell multiple types of ice
creams along with different flavours and taste, sober, frozen yogurt, gelato and others to
consumers (Clarke, 2015). Ice cream parlours nowadays have booming market
demand and the industry is making higher amounts of profits as well. For accelerating
their sales revenue, in generally, almost all the companies are focused on offering ice
creams with different colour and various flavours. On the other hand, Kensington is
one of the most popular tourism places across the UK, where over 3.3 million visitors
visit in every year. Kensington is full of attractions such as high beautiful buildings,
open parks, monuments, embassies and others (Mall, 2016). Additionally, the city
includes several museum buildings, libraries, and multiple sky touching hotels and
resorts to grab attention of customers. As the city has wide range of visitors on regular
basis, various stalls, hotels and other hospitality shops have been opened to provide
visitors foods and beverages of different tastes and flavours (Li, 2015).
Therefore, an ice cream parlour at Kensington would be an excellent idea.
Kensington already has wide numbers of global visitors so that the new Ice cream
parlour would have enough customers to meet their sales target. The USP of the new
business is as follows:
 Low fat ice cream with premium taste
 Large numbers of ice cream flavours
 Cracking dark chocolate ice cream under 100 calories
1.2) Business type
Ice cream parlour needs to start up their business first to attract customers. However,
the new idea can be merged with franchising opportunities. Franchising is the simplest
technique of pooling resources, expertise, working hours and performance of two
companies (Hoy and Stanworth, 2014). In domestic or international business
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expansions, franchising in considered as one of the most effective methods. Apart from
this, using the franchising method to enter in the market of Kensington is good decision
and franchising can provide multiple benefits to business organizations. Due to
franchising new start up will get well-established brand image and customer base in
the particular business location (Salar and Salar, 2014). Additionally, relationship with
suppliers have already established in franchising so that organization does not need to
take pressure about making good relationship stakeholders, who are the integral part of
the multiple business activities. Not only this, but the company will be able to compete
with larger companies by adopting franchise of well-established brand of the particular
business location. Ben and Jerry, Waitrose, Yeo Valley and others are the most popular
ice cream brand across Kensington. New business can take franchise of any of these
organizations to generate higher revenues in business.
1.3) Research on Business
Ice cream has become a popular food trend. According to recorded statistics and
reports, almost £1145 million revenue has been generated in 2019 by ice cream
segment (Dowlati et al.,2017). Additionally, ice cream products have great demand in
market and it is expected that the demand will increase in future as well. In 2019, in a
survey, it has been found that per person revenue generated in ice cream is £17.17 that
is simply much higher than other business.
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Part 2
2.1) Apply McCarthy’s 4ps model
The model is helpful in understanding and assessing the actual business condition of a
selected location (Boateng, 2014). It is segmented in four important factors that are as
follows:
Place
Selection of the place, where the business will be started up is one of the most vital
business factors that actually impact over hindering or fostering business performance.
Kensington is popular for its attractive tourist spots, high museum buildings, high
heels, parks, and so many other places that are attractive enough to grab attention of
wide range of visitors. Hospitality and tourism industry is all about providing high quality
products to customers and increasing their satisfaction level simultaneously (Festa et
al., 2016). In tourism, people spend a huge amount of money to enjoy and celebrate.
Hence, providing the best quality, low fat, creamy and chocolaty ice cream to visitors of
Kensington and local people would be great idea and accelerate the profitability of the
company simultaneously.
Price
Setting an appropriate price of a product is one of the key factors of Marketing mix
strategy. Ice cream has great demand in market and it is popular to both rich and poor
category people. The company is aimed at providing ice creams at the most affordable
price rate so that both categories would be able to enjoy high quality, low fat ice creams.
However, the company will also have some high budget ice creams to attract high
status visitors; however, majority of the ice creams are low budget. Kensington can use
multiple types of pricing strategies such as skimming, premium, penetration, economic
and others. In order to attract customers and sustain in market by competing with rival
competitors, the new business will follow economic pricing strategy.
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Product
Product that is going to be served to customers must be unique to grab attention of
customers. Along with the product, packaging, designing, features, presentation, logo
and others are also similarly important for accelerating sales revenue and satisfying
customers (Resnick et al., 2016). The new ice cream bar will focus on making their
product effective and attractive enough that it can grab attention off all type of visitors.
People are becoming extremely healthy conscious to avoid different harmful diseases
such as obesity. Therefore, low fat, low calorie ice cream can provide competitive
advantage to the new business. Apart from this, the new business will reshape and
redesign their ice cream products to make difference in products compared to market
rivals’ products.
Promotion
Last but not the least stage is promotion, where companies use multiple effective
strategies to reach out more numbers of customers and selling those products.
Promotion is conducted to inform the target market regarding the features and values of
the newly launched product. As per the consideration of O'guinn et al., (2014),
marketing has become an integral part of business success. Ice cream parlours use
different promotional techniques such as catering, events, fairs and festivals, internet
meeting and others as well as multiple effective promotional channels such as
facebook, twitter and others for reaching out more numbers of targeted customers and
increasing the sales revenue successfully. The new business has decided to promote
their ice cream products during the summer vacation and will holding events at shop
for attracting customers. Another effective way of gathering attention of new and
existing customers is catering that the new ice cream parlour can use as well.
2.2) Job roles assigned to the Business employees such as manager’s role
In an Ice cream parlour, there are several job roles and responsibilities assigned to
business staffs. Hence, in new Ice cream parlour, there must be store manager, service
crew, operational head, quality tester and management, business development
executive and others for handling all types of business activities throughout the ice
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cream parlour. According to market researchers, ice cream parlours and very popular
nowadays, where multiple employees perform together to increase the satisfaction level
of the customers.
Role of marketing manager
 Marketing manager is employed for conducting and handling entire marketing
operations
 Selection of the social content
 Conducting promotional activities
 Using social media channels to reach out more customers
 Accelerating the sales and revenue of the company (Ekpo et al., 2015)
Role of crewmembers
 Crewmembers are responsible for providing services to customers
 Preparing ice cream scoops
 Taking orders
 Supplying orders
 Communication with customers
 Increasing thee satisfaction level of the customers
 Cash handling
 Stocking of extra products and others
Role of production manager
 Production manager ensures that all the production procedures are continuing
successfully (Eckardt et al., 2014)
 Understanding the production needs
 Resourcing with proper resources
 Estimating budget regarding production
 Ensuring the quality of products
Role of store manager
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 Store manager has the responsibility of managing the entire workforce and
business functions within the store
 Maintaining the hygiene of the store
 Overseeing exhaustive services that are provided to customers
 Taking inventory of total stocks on regular basis
 Offering the customers high quality and satisfying services
Additionally, across the ice cream bar, there are several other job opportunities like
store in charge, business development executive and others. In short, due to high
demand in current market, Ice cream industry can create gross job opportunity.
2.3) Advantages & disadvantages of having Zero-hour contract workers and
agency staff
Zero hour contract is considered as the formal agreement between owner and staffs of
an organization without guarantee of hours (Adams and Deakin, 2014). In simple words,
it provides the workers an opportunity to select their own working hours. It provides
flexibility to both parties and both can be benefited by this system. However, it is
associated with several advantages and disadvantages that are as follows:
Advantages
Flexibility
Flexibility of working hours is important for employees. Employees are likely to work in
such environment, where they can be more productive and they have the opportunity of
selecting their own working hours (Adams et al., 2015). This motivates employees and
motivated employees accelerate the production and sales of the company.
High profitability
Due to high performance of employees, employer can generate higher profits in
business.
Disadvantages
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Issues about performance and concentration
Flexibility of working hours provides employees the flexibility of selecting their own
working hours. Sometimes, due to this flexibility, employees become less focused at
their work, which affects the performance.
Pressure
On the other hand, due to lack of fixed working hours, staffs of the organization may
face high pressure to complete their task within the given time.
Staffing agencies are considered as a special type of agencies that help multiple
business firms in fulfilling their job vacancies with proper talents and skill sets.
Advantages and disadvantages of staffing agencies are detailed in below section.
Advantages
 Organizations have to invest huge time and cost for selection of the
appropriate candidates. Staffing agencies are effective and useful to save time
and money for recruiting candidates.
 Vacant job roles can be fulfilled by staffing agencies with an ease
 Staffing agencies allows checking the candidates out before committing them
to employment. In this process, firms can easily asses and recruit the most
appropriate and suitable candidate for the organization.
Disadvantages
 Several ties, staffing agencies do not conduct appropriate recruitment process
 Many of the staffing agencies are fake
2.4) Identification of targeted customers and customer cohorts
The target customers for the new Ice cream bar business are visitors of Kensington,
especially youths. Ice cream is popular to all. Thus, company segmented their price of
ice cream products according to their quality. Both high and low budget ice cream will
be available.
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Customer cohort is defined as the consumers, who will be loyal with the firm
(Montaguti et al., 2015). Kensington is a popular tourism place so that visitors will visit
the place spontaneously. Hence, the company’s customer cohorts are the foreign and
local visitors including youths and children, who will support the new business to
generate higher income.
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Part 3
Business plan for future
3.1) Business expansion in future
Business idea of Ice cream bar is effective so that the company has concentrated upon
increasing the overall structure of the company. In order to capture the large customer
base, the business will be continued and served ice creams to customers sung multiple
ice cream trucks. In future, the company will expand to international market place as
well through using effective international expansion techniques.
3.2) Strategies to be adopted
In order to maintain Ice cream bar, it is necessity to adopt effective strategies to
accelerate the sales and achieve competitive advantage in market. Marketing mix is
used for understanding the market demands and the value of the product. On the other
hand, company has been using multiple social media channels for reaching out more
numbers of customers across the globe and accelerating their sales performance. Apart
from this, different leadership approaches, styles, strategies such as contingency
approach, situational approach and others will be utilised by Ice cream bar to
manage their business function in better manner at Kensington.
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Reference list
Adams, A., Freedland, M. and Prassl, J., 2015. «Zero-hours contracts» in the United
Kingdom: regulating casualwork, or legitimating precarity?. Giornale di diritto del lavoro
e di relazioni industriali.
Adams, Z. and Deakin, S.F., 2014. Re-regulating zero hours contracts. Liverpool:
Institute of Employment Rights.
Boateng, S., 2014. Application of the 4Ps in Emerging Markets.
Clarke, C., 2015. The science of ice cream. Royal Society of Chemistry.
Dowlati, M., Aghbashlo, M. and Soufiyan, M.M., 2017. Exergetic performance analysis
of an ice-cream manufacturing plant: a comprehensive survey. Energy, 123, pp.445-
459.
Eckardt, R., Skaggs, B.C. and Youndt, M., 2014. Turnover and knowledge loss: An
examination of the differential impact of production manager and worker turnover in
service and manufacturing firms. Journal of Management Studies, 51(7), pp.1025-1057.
Ekpo, A.E., Riley, B.K., Thomas, K.D., Yvaire, Z., Gerri, G.R.H. and Muñoz, I.I., 2015.
As worlds collide: The role of marketing management in customer-to-customer
interactions. Journal of Business Research, 68(1), pp.119-126.
Festa, G., Cuomo, M.T., Metallo, G. and Festa, A., 2016. The (r) evolution of wine
marketing mix: From the 4Ps to the 4Es. Journal of Business Research, 69(5), pp.1550-
1555.
Hoy, F. and Stanworth, J., 2014. Franchising: an international perspective. Routledge.
Li, N., 2015. Kensington market: collective memory, public history, and Toronto's urban
landscape. University of Toronto Press.
Mall, D.S., 2016. market overview.
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