Business Plan Report: Kugi BBQ Food Truck Startup, Market Analysis

The report presents a comprehensive business plan for Kugi BBQ, a food truck startup, encompassing two main parts. The first part includes an executive summary, business prospects, product details, and a thorough market analysis utilizing PESTLE and Porter's Five Forces models. It also covers segmentation and competitive analysis, leading to menu and pricing strategies. The second part delves into financial and operational aspects, including marketing communication mix, market development strategies, operational details, resource requirements, sources of finance, financial analysis, and risk mitigation strategies. The plan emphasizes social media management, influencer engagement, and content creation for effective customer connection and brand building, aiming to provide unique food products and superior customer service in a competitive market.

Individual business
plan

EXECUTIVE SUMMARY
The below report is based on a business plan for a new start-up business. It is about a
food truck business named as Kugi, BBQ. The plan is divided into two parts. In the below report
various things are been discussed. A proper market analysis has been done with the help of
pestle analysis, porter five forces model. Both segmentation and competitive analysis has been
done and on the basis of it all menu and prices are set up. In part 2 the organization did their
financial and operational analysis. Different sources of finance and required to start a new
business.

Contents
EXECUTIVE SUMMARY.........................................................................................................................2
INTRODUCTION.......................................................................................................................................4
PLAN 1.......................................................................................................................................................4
Business prospects including management..............................................................................................4
Details of product....................................................................................................................................5
Market analysis........................................................................................................................................5
Segmentation analysis.............................................................................................................................7
Competition analysis...............................................................................................................................7
Competitive advantage............................................................................................................................8
Marketing strategy...................................................................................................................................8
PART 2.......................................................................................................................................................9
Marketing communication mix................................................................................................................9
Market development and expansion strategy.........................................................................................10
Operational details.................................................................................................................................10
Resources required:-..............................................................................................................................11
Sources of finance.................................................................................................................................11
Financial analysis..................................................................................................................................12
Risk and mitigation strategies................................................................................................................12
CONCLUSION.........................................................................................................................................12
REFERENCES..........................................................................................................................................14

INTRODUCTION
A business plan is defined as a formal written document that involves overall objectives
of the business, ways to achieve all goals and the time period to achieve such goals. It provides
guidelines through each stage in terms of managing the business. There are various elements of
business plan like market analysis, strategy, financial planning, budget and so on. An
organization cannot achieve success without a proper business plan. It can even break or make a
small business (Linville and Lovell, 2021). The below report is based on a new individual
business plan. It involves two plans. In accordance with first plan includes business prospects,
details with respect to product, market analysis, marketing strategy, competitor analysis. In terms
of second plan it involves marketing communication mix, market development and expansion
strategy, operational details, sources of finance, financial analysis and many more. The report is
based on a new start-up business idea which is “Food truck business” named as Kugi BBQ. It is
a large vehicle which includes the equipment to cook, prepare, serve and sell food. This start-up
business idea would sell pre-packaged food, frozen and regional fast food.
PLAN 1
Business prospects including management
A business prospect is defined as a person or any other department who has interest in the
specific product or service been provided. In relation with Kugi BBQ, it is further been explained
as below:-
 Social media management:- In today’s world the most important element is social media
in order to connect will all customers. It is considered as a great method to maintain a
connection with all customers. As a new startup business idea of food truck business it
was the most important business prospect to create and nurture efficient business
relationships.
 Influencers:- As a new startup each customer wants to get some information about the
company because only then they will try to use the product. With the help of this business
prospect a connection should be developed in relation with all social media sites and gets
shared with everyone. In context with food truck business they also influenced it through
all necessary sites. In terms of business management they build up the connection with all
customers through social media sites.
 Content:- As a new startup business idea was developed the most crucial thing for any
organization is to offer best possible content so that customers gets attracted towards the
product ( Owadally, Jang and Clare, 2021). In relation with food truck business the most
important thing is to offer best quality food products and the images which are shown on
social media website should be same of what they are actually providing.
To manage a business it is crucial to follow certain considerations so in context with food truck
business various business prospects were been considered:-

 Proper market evaluation:- In accordance with implementing a new start-up business
idea it is crucial to do proper evaluation of overall market. It includes various aspects like
in terms of prices, size of the business and its overall success. In relation with food truck
business proper evaluation was been done in terms of size and overall prices.
 Business plan:- Before starting the business effective strategy was been made and overall
execution plan. With the help of business plan proper competitive analysis would be
done. It is considered as an effective business prospect because without setting up a plan
goals and objectives won’t be achieved.
Details of product
 Description of products and services:- There are many products which food truck
businesses provide to all their customers. It offers pre- packaged food, fast food,
appetizers, soft pretzels and energy drinks ( Bolis and et.al, 2021). There are many
services which are provided by new start-up garbage bags, dispensers, trash cans, As a
new start-up in food and beverages sector the most important thing is that proper safety,
cleanliness is been maintained. As the services are provided through a truck so a menu
board is there which becomes very easy for customers to take all details with respect to
specific food product?
 Product comparison:- In comparison with other food product companies, the most
unique thing which would be provided by food truck businesses was the processed
vegetable factory. All customers will be able to get frozen vegetables, mustard and also
canned vegetables which was not been provided by other truck business in relation with
food and beverages.
 Intellectual property:- Before implementing the new business startup of food truck
business insurance was been done . There were three types of insurance which was
needed in terms of vehicle license and security, workers and overall business insurance.
 Equipment’s:- There were many products needed in order to provide all services to
customers. The first and most necessary are all types of cooking elements like
microwave, cheese Melter, fryer and so on ( Argu and Samson, 2021) There were various
food preparation equipment also which needed cutting boards, skillets are and so on. The
most crucial thing for a new business start-up is to provide customers with portion cups,
paper napkins, and guest checks.
Market analysis
There are various things which are involved while analyzing the whole market in terms of
pestle analysis, porter five forces model and statistics. In relation with food truck business it is
further been explained as below:-
Pestle analysis:-
 Political factors:- As a new business start-up there are various rules and regulations
which are made by the government in context with proper hygiene level and the aspect of

cleanliness. So, food truck business it must ensure that quality food products are been
provided and best possible services because in such business the major issue comes up in
accordance with cleanliness so all such services should be provided.
 Economic factors:- With the help of all such factors a proper marketing strategy is been
set up. So, in terms of all economic factors like the inflation rates affects the prices of
new start-up business idea. It also affects the salaries of employees. So, in terms of food
truck business it was a new start-up business idea so it is very crucial to deal with all such
issues.
 Social factors:- As customers belong from different cultures so that all have diverse
demands in terms of food products ( Gudde and et.al, 2021) In relation with this each
customer priority should be evaluated and on the basis of it only products should be
provided. In context with food truck business different types of food items must be
offered so that each individual gets attracted towards the facilities which are been
provided.
 Technological factors:- In today’s world the best and latest technology is used by each
organization. So, by establishing a new hotel best technologies should be used and all
necessary records regarding finance should be properly recorded.
 Legal factors:- It is important to assure that effective safety standards are been
maintained. All food products should be provided by assuring that cleanliness is there and
all hygiene is maintained. Food truck business should take care that no such issues get
arise.
 Environmental factors:- In terms of all such factors there are many waste which happens
like in terms of water and so on. In comparison with other businesses food truck business
has an opportunity to match with all such consumables.
Porter five forces model:-
 Bargaining power of suppliers:- It is defined as how much power suppliers have in
relation with negotiating overall price of product ( Easterby-Smith and et.al, 2021). So, as
a new start-up they have lot of bargaining power because all new food products are
needed by them so power relies more on them.
 Bargaining power of customers:- In context with food truck business low level of
bargaining power relies with customers because unique products were been offered and
with respect to this customers power was decreased.
 Threat of new entrants:- As a new business start-up profits were getting achieved
because of the unique products and services been offered. The threat was there because
other start-up was getting implemented and ultimately high capital requirement was
needed and at the same point of time there were certain government policies also which
were been restricted.

 Threat of substitute products:- Before starting the business company identified all
substitute products in food industry and with respect to this offered different and unique
products. In relation with this they viewed them as an indirect competition.
Statistics:-
 As a new business start-up food truck business start-up cost was around $100k. The
target market was mainly the young generation people who always have desire to try
such effective food products ( Kang and et.al, 2021) With respect to overall new start-up
business media the usage of online media was been chosen and also television
broadcasts.
Segmentation analysis
It is defined as the study of all customers which gets divided into small groups in order to
understand certain elements in context with elements like income, behavior, personality and age.
In relation with food trucks industry it provides high quality food and prepares all types of meals.
The menu options were based on healthy eating concept and high class customer service. As a
new business start-up it was very much important that all customers get services efficiently
because their expectations are high. In terms of food trucks business they belonged to healthy
restaurant segment in which all meals were prepared with proper hygiene, organic and were
locally produced. The main customers are the young generation who is always excited to try
something new and unique food product. Food truck business established their start-up at the
location where maximum tourists are there and all dishes are produced with an interesting
concept. It is further been explained as below:-
 Psychographic segmentation:- Food truck business segmented their market by focusing
on middle class people especially the young generation ( Bradley, 2021) So, with respect
to this they used a slogan “We made it our way, you eat it your way.” Different services
were been provided to all customers.
 Demographic segmentation:- Food truck business at the initial stage targeted specific
age group and centered all energy and focus on them only.
 Geographic segmentation:- In relation with this all customers belong from different
culture and have diverse priorities. So, they segmented all target customers according to
regions and in accordance with that provided food products.
Competition analysis
Criteria Kogi BBQ ( New
start-up business )
Mobile truck
business
Fine dining
Type of establishment Food truck Food truck Restaurant
Location Varies from day-to-
day
Varies from day to
day
Fixed location

Menu Pre-packaged food,
frozen vegetables, fast
food
Cheese sticks, burgers Pizzas, sandwiches
Price Based on quality costs
of all ingredients
Based on volume as
well as lack of
required labor
Based on national
brand and image
Efficiency Personal service Personal service Slow service due to
staffing levels
Target persons Tourists Mid- market people Convention
businesses
Style of service Food truck service
window
Food truck service
window
Table service
Competitive advantage
As a new start-up business idea of food truck business it is important to earn better
competitive advantage so that they can remain at a favorable position. There are many elements
which need to be focused on like best quality food, efficient services so that they can enhance
their growth level and achieve better competitive advantage ( Poggensee and Poggensee,2021)
During the establishment of Kogi BBQ, food items maintained high level of standard and were
presented very effectively. They hired best employees who have full knowledge in food and
beverage industry and can help in earning competitive advantage. The company also set up their
schedule ahead of time which made easy for all customers to find out where the food truck is.
The location should be get shared on social media sites and a specific spot should be decided. So,
Kogi BBQ decided various methods through which they can earn effective competitive
advantage. They designed their truck in a very amazing way and at the same point of time unique
food items were been provided. They implemented the way of ordering food through mobile
phones. With the help of this customers don’t have to wait for a long period of time and can
order and do the payment through website only. It was also decided that they will attend local
fairs and festivals through which people would get to know about their business start-up and will
be able to earn better competitive advantage.
Marketing strategy
 Food truck websites:- As there is no specific location for such businesses it is important
to update the location at each point of time ( Annenkova and et.al, 2021) So, Kogi BBQ,
also made a strategy to use all social media platforms to give all information. At the same
point of time services which were been offered they advertised it. They also initiated the
strategy of hiring a professional web developer in which website used to get update on
constant basis.
 Blog and influencer outreach:- It is an effective strategy for a new start-up. So, in
context with Kogi BBQ, they decided to reach out to some local figures and ask to try
their food products and then write about the experience on social media sites.

 Food truck catering:- Another marketing strategy of business was to mention all catering
services on their social media channels so that customers can easily contact to restaurant.
The company also researched about other websites in same business so that they can get
catering leads in terms of food truck business.
 Take advantage of Instagram foodie potential:- As a new business start-up it was
necessary to earn best competitive advantage at initial stage only. So, with respect to this
they posted high quality content to all social media websites and also looked up for most
popular food related hash tags.
 Twitter marketing for food trucks:- As it is one of the best social media platform for
food trucks regular updates can be given. So, as a new start-up all tweets regarding food
items should be updated especially for first time visitors.
PART 2
Marketing communication mix
There are various types of elements involved in marketing communication mix. So, in
relation with new startup business idea of food truck business it is further been explained as
below:-
 Advertising:- It is defined as a paid form of marketing communication. There are various
forms of advertising which a business can use like electronic media, out of house and so
on. With respect to Kugi, BBQ , a new food truck business it was very important for them
to select appropriate idea for doing advertisement. So, they used the method of electronic
media as well as out of homes also ( WANASIDA and et.al, 2021) In context with this
business update each information on social media channels as well as hoardings were
been assigned. So, that each individual get to know about new business idea.
 Sales promotion:- To increase sales, promotion is the most important thing and it must
be done at high level. It is mainly done to push forward overall sales volume. In relation
with Kogi BBQ, they implemented the strategy of providing on pack gift and it is
considered as one of the most popular method. While giving food items, they used to give
gifts with that product.
 Additional quantity at the same price:- It was the best way which was used by them
during just their initial stage. The food products like they offered 20% more quantity at
frozen vegetables at the same price.
 Scratch card with pack:- As a new business start-up Kugi, BBQ offered the opportunity
of scratch card with a food package. With the help of this whenever each customer used
to visit they were given a scratch card. On the basis of that card the gift would be
provided.

Market development and expansion strategy
After some period of time it becomes important to expand the business in particular
sector. So, with respect to this they made a strategy to implement another food truck in the same
location. Till that period of time company would be able to get full knowledge regarding their
business and in accordance with that plan everything. To develop their business they hired
people who were professionally been trained and can make amazing and unique dishes. They
also provided certain incentives to those people who have helped during the phase of
implementation of food truck ( Trevino and Nelson, 2021) They also made the strategy of
offering seasonal items in menu because people get bored with same kind of food dishes. With
the help of this Kugi, BBQ can were able to develop themselves. To expand the business at
higher level it was a great way for them to offer home delivery options because many people
don’t like visiting the specific location and then wait for the food to get prepared. So, in terms of
this they expanded their food truck business. They will use the strategy of using Internet
promotion as it is the most crucial channel for development. Each information would be updated
along with photographs of dishes on the social media sites. Food truck business needs to assure
that they develop and expand the business at high level and on the basis of that make different
strategies. As a complete new business start-up right and efficient business plan is needed. With
respect to this it is essential to set certain strategies for future also so that proper development
and expansion can be done.
Operational details
There are various elements involved in operational details of food truck business in terms
of Kugi, BBQ which is further been explained as below:-
 Salaries
 Vehicle lease payments
 Promotion
 Storage
 Fuel costs
 Rent payments
 Loan payments
 Vehicle maintenance
In relation with Kugi BBQ, food truck business, operational analysis is further been explained as
below:-
 Location:- The location is set in accordance with the place where maximum number of
people used to visit ( Chun-lin and Gunaratna, 2021) respect to food truck business, it
was mainly parked outside huge business building and near the beaches because
maximum number of tourists and young generation visit.

 Raw material:- There were various types of raw materials which are been used like the
type of food truck, finding a vehicle, interior of whole truck, kitchen equipment’s and
many more.
 Distribution channels:- Food truck business was both the manufacturer as well as
retailer. As a start-up business multiple channels of distribution was been used and the
very first was business to consumer.
Resources required:-
There are different resources which are required while starting a new business. So, in
context with Kugi BBQ, food truck business different tools were been required in order to grow
their business sector. It is further been explained as below:-
 A strong website:- It is the most crucial element to grow up a food truck business and as
a new business start-up it is one of the necessary thing so that people get to know about
restaurant. There are various things involved in this like in relation with word press
websites, web developers and so on. With the help of this they followed the process of
building up the website ( Das, Marotta and Idris, 2021) With. They would be using a
proper marketplace in order to make a connection with all developers and audiences.
 Social media tools:- To enable the food truck business at high level social media resource
is important and efficient. With the help of this all social media tools like tag board,
necessary content can be provided to all audiences.
 Mobile payment service:- As per the current situation in whole world, everyone prefers
to do online payment through their mobile phones especially the young generation. So,
through this it was required to implement such services.
 Prestige food trucks:- As a new start-up business idea the most important thing is to do
cooking in style and it can be done with the help of hiring a prestige food truck.
Sources of finance
There are various sources of finance that a new business start-up can use. A business can
use many sources like internal, external, in relation with venture capital, bank loan and so on. In
relation with Kugi, BBQ, a food truck business it is been explained as below:-
 Bank loan:- It is a long term finance source which is made especially for a new business
start-up. So, for this they need some security in terms of loan which us been provided. In
relation with food truck business they used this source but there was no kind of risk. In
context with they gave one of their personal security assets and applied for the bank loan.
 Business angles:- They are considered as the professional investors who invest some
amount of money in their business . With the help of them even when a loan takes more
time to get approved the professional investor helps the company. In context with Kugi
BBQ, they used the help of investors also. As they were just initiating the business so it
was beneficial for them to take help from those investors.

Financial analysis
While starting up a food truck business, there were various start -up expenses which are
needed. These are business registration fees, starting inventory, rent deposits, business licensing,
down payments on kitchen equipment and food vendor account. In relation with Kugi BBQ, it is
further been explained as below:-
 Sales forecast:- It is considered as an assessment tool in order to check whether the
business will make money or not. In relation with Kugi, BBQ, a food truck business
qualitative tools were been used in which consumer surveys and market research would
be done.
 Expense forecast:- It is defined as how much cash will actually flow once a business is
set up and while it is running. So, in relation with food truck business various start-up
expenses were been used like insurance and licensing was been done and the biggest cost
was the truck only.
Risk and mitigation strategies
 Train all employees:- As a start-up business the main risk is associated with the training
of employees only. So, it becomes important to avoid such risk and in context with this
proper and efficient training should be provided. Before starting the business all
employees were been provided with training sessions.
 Maintain restaurant facilities:- It is very important to maintain cleanliness and provide
all food products with proper hygiene ( Jacob. and Teuteberg, 2021).. So, with respect to
this Kugi BBQ, also made such strategies and maintained all facilities.
 Health and safety codes:- It includes various things like employee hygiene, food storage,
safety equipment and so on. So, as a food truck business and a new start-up, it was been
determined that employees wash hands and wear disposable gloves before giving food to
all customers. There was proper freshness and safety which was been maintained.
CONCLUSION
From the above report it has been concluded that for a new business it is very important
to make a proper business plan and on the basis of it set proper analysis. There are various
sources of finance which are required like in relation with bank loan or other professional
investors. There are many risks associated with a new business and as a food truck business the
most important thing is to maintain proper hygiene and cleanliness. For a new organization
effective marketing strategies should be implemented and the most crucial is do promotions. In
context with current situation social media websites are the best way to promote products.