Business Plan: Market Analysis of Marvel Delight Chocolates Company

This assignment presents a comprehensive business plan for Marvel Delight Chocolates, an imaginary small company specializing in chocolate manufacturing and distribution. The plan encompasses a detailed overview of the company's mission and vision, product range, including different chocolate types, flavors, textures, and sizes. A thorough market analysis is conducted, focusing on target market identification and competitor analysis. The marketing mix, including product, place, price, and promotion strategies, is analyzed to determine the company's core marketing strategy. Additionally, the plan outlines market growth strategies, financial projections, resource requirements, profit and loss statements, breakeven analysis, cash flow forecasts, and a balance sheet. It also addresses potential risks and mitigation strategies and concludes with recommendations. The plan aims to establish Marvel Delight Chocolates as a competitive player in the chocolate market.

A Study on Business Plan of
Marvel delight chocolates
5/4/2019
Student Details

MARVEL DELIGHT CHOCOLATES BUSINESS PLAN
Contents
Marvel Delight Chocolates: An Overview................................................................................4
Product Range of the Company..........................................................................................4
Chocolates.......................................................................................................................5
Flavors.............................................................................................................................5
Texture.............................................................................................................................5
Sizes................................................................................................................................6
Market Analysis of Marvel Delight Chocolates.......................................................................6
Target Market Analysis........................................................................................................7
Competitor's Analysis..........................................................................................................7
Marketing Mix (Core Marketing Strategy of the company).....................................................8
Product..............................................................................................................................10
Place..................................................................................................................................10
Price...................................................................................................................................11
Promotion..........................................................................................................................11
Market Growth Strategy of Marvel Delight Chocolates.........................................................11
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MARVEL DELIGHT CHOCOLATES BUSINESS PLAN
Financial Projection of Marvel Delight Chocolates...............................................................13
Resources required and their Financing...........................................................................14
Profit Projection/ Profit and Loss Statement.....................................................................15
Breakeven Analysis...........................................................................................................18
Monthly Cash Flow Forecast.............................................................................................19
Balance Sheet...................................................................................................................23
Material Risks and their Mitigation........................................................................................24
Mitigation of Risks.............................................................................................................25
Conclusion and Recommendations......................................................................................27
Bibliography...........................................................................................................................29
Appendix...............................................................................................................................32
Resources required and their Financing...........................................................................32
Profit Projection/ Profit and Loss Statement.....................................................................33
Breakeven Analysis...........................................................................................................36
Monthly Cash Flow Forecast.............................................................................................37
Balance Sheet...................................................................................................................41
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MARVEL DELIGHT CHOCOLATES BUSINESS PLAN
Marvel Delight Chocolates: An Overview
In order to make the business plan of a small company, Marvel Delight Chocolates
Company is taken into consideration (Burns, 2016). As per the guidelines, this company is
an imaginary company. This company is considered a small new business that is dealing in
manufacturing and distribution of chocolates. It manufactures chocolates with different
flavors and designs.
Mission: The sole mission of this company is to provide joy and happiness on the faces of
its customers by providing delicious chocolates to them. Their aim is to make chocolates
that will provide the engaging experience to its customers.
Vision: The vision of this company is to become long lasting market leaders by creating
mesmerizing chocolates for its customers. This helps them in getting a competitive
advantage over other companies.
Product Range of the Company
Marvel Delight Chocolates is an imaginary company that deals in chocolates made up of
different material, flavors and of different designs also. Chocolate is an eating substance
that is derived from the word cocoa. Cocoa is the base substance for all types of
chocolates. It is usually mixed with fat, milk or other substances to make desired
chocolates (G.Bromley & A.Harrast, 2011).
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MARVEL DELIGHT CHOCOLATES BUSINESS PLAN
The product range of the company is not that big. It is a combination of Chocolates,
Flavors, textures, and Sizes. Further, in these categories, more subcategories are included
to provide variety to its customers. The product category of the company is discussed in
brief in the following lines:
Chocolates
In this category, the company provides three basic products that are made up of different
types of chocolates. Generally, there are different flavors of chocolates like milk chocolate,
hazelnut chocolate, dark chocolate and many more. The company provides only three
types of chocolates that are Dark Coco chocolates, Milk Chocolates, and Hazelnut
Chocolates.
Flavors
In this category of the chocolates, the company provides such chocolates, which are of
different flavors to its customers. the company deals in many famous flavors like fruits, dry
fruits, spicy, salty, savory, caramel, toffee, coffee, minty and floral chocolates.
Texture
The company has many categories of chocolates and one of them is texture. It tells about
the state and design of the chocolate. In order to be a key market player, the company
needs to attract its customers and in order to attract them, it needs to provide attractive
chocolates to them with different textures. Marvel Delight chocolate company deals in
textures like chewy, crunchy and smooth. Design is in a small block and big slabs
(JackGallo et al., 2018).
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MARVEL DELIGHT CHOCOLATES BUSINESS PLAN
Sizes
The company manufactures chocolates in more than one size so that customer can buy
them according to its urge to purchase. The sizes of Marvel's chocolates range from small
to big. They mainly include mini bar chocolates, small bar sets, and combined bar sets for
combo purchases.
Marvel Delight Chocolates is a company that is expected to become a market player with
the help of products it is providing its customers. However, in order to do so, the company
needs a well-established and efficient market plan. With this view in order to make this
imaginary, company an effective competitor in the market current report will work upon it.
Market Analysis of Marvel Delight Chocolates
The qualitative and quantitative analysis of the market for a particular company is the
market analysis of that company. It is mainly done to study the dynamics and attractiveness
of the market in which the company deals in. the market of the company is analyzed in
other to analyze the industry attractiveness and environmental dynamics (Woerle, 2012).
By analyzing the market for a particular company the strength, weakness, threats, and
opportunities for a particular business in the prevailing internal and external environment
can be identified and evaluated. For effective analysis of the market for any company, its
key elements that need to be analyzed are its target market and competitor's analysis.
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MARVEL DELIGHT CHOCOLATES BUSINESS PLAN
Target Market Analysis
It is the market, where the company should aim for the sale of its goods and services. In
simple terms, the target market is the combination of customers and geographical
boundaries that a business should serve. For the selected company that is Marvel Delight
Chocolates, the target market is the customers that fall in the range of 20 to 50years of
age. The range of age is identified by analyzing the buying power of the customers but not
of their relatives.
The aim of the company is to make chocolate according to the differences in preferences of
the taste of various customers. Their target market is also distributed according to the
psychological thinking of the persons, their preference for eating chocolates. After
analyzing, the target market next important element of market analysis is the effective
analysis of its competitors (Ward, 2016).
Competitor's Analysis
In this type of analysis, the focus is paid on identifying and analyzing the key competitors of
the company. It includes evaluating the profit margin, sales turnover, goodwill, etc of the
competitor firm with respect to the selected company. In the current study, the selected
company is imaginary however; the competitor's analysis of the company is analyzed in the
real world by considering real companies as the competitor of Marvel Delight Chocolate
Company.
Many companies are dealing in all over the world. In order to gain a competitive advantage
over those companies, Marvel Delight Chocolate Company needs to acquire such
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MARVEL DELIGHT CHOCOLATES BUSINESS PLAN
technology, software, and human skills that will help them to know about their competitor
than ever before (Stringer, 2015). In order to stay one step ahead of competitors, it is
important to regularly conduct efficient competitive analyses.
In order to conduct an effective and efficient competitive analysis selected company for the
study can consider the following points:
For a thorough analysis of the competitors, it is first important to identify the first 10 close
competitors of the company.
When the top 10 competitors of the company are finalized then conduct research to find out
and match the contents of the company with Marvel Delight Chocolates Company.
Analyze the marketing strategies of the competitor companies and evaluate them in terms
of the selected company.
With the help of this competitor's analysis process, Marvel Delight Chocolates Company
can look into its prospects and take into action some effective marketing strategies to
achieve competitive advantage over others (Sutton, 2013). It can even go for social media
marketing which can influence masses with one stroke.
Marketing Mix (Core Marketing Strategy of the company)
Marketing strategy is the overall business game plan of a particular company in order to
serve all elements of the market and become the key market player. It is the combination of
strategies of business in order to reach to their target customers and influence them to buy
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MARVEL DELIGHT CHOCOLATES BUSINESS PLAN
their products, by getting them aware with all products and services of the company
(Simoneaux & Stroud, 2016).
The market strategies of any company tell about the company value prepositions of that
company it also tells about key marketing message, information, stakeholders and some
other elements (Bewayo, 2010). Marketing plan of the company is also disclosed by
formulating and evaluating marketing strategies of the company (Blackburn et al., 2013).
The best method to identify the core marketing strategy of the company is to analyze its
marketing mix elements. By analyzing the marketing mix elements of the company,
everything about product, price, place, and promotion of the products and services of the
company can be identified and rectified.
The marketing mix of Marvel Delight Chocolates is analyzed in the following lines in order
to assess the core marketing strategy of the company. E. Jerome McCarthy first proposed
this concept in 1960.
Source: Core Marketing Strategies (Marketing Mix) (Singh, 2012)
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MARVEL DELIGHT CHOCOLATES BUSINESS PLAN
Product
The respective company manufactures an item in order to satisfy the needs and wants of
its target customers. It is the base through which, the company manages to get a
competitive advantage over other (Walker & Consulting, 2009).
Marvel Delight Chocolates Company's product range is not very wide and not very small. It
is of medium range and provides a variety of products to its customers. They deal in all
types and textures of chocolates in order to satisfy all groups of target customers. It deals
with products like milk, hazelnut, and dark chocolates. Also, deliver various flavors of
chocolates. This helps the company in establishing a competitive marketing strategy for its
competitors.
Place
It is also considered the main element in determining the marketing strategies for the
company. It tells about the target market and target customers for the company. It also tells
about the geographical region in which the company is going to serve.
In case of Marvel Delight Chocolates, the target market for the company are the customers
ranging between the age of 20 years to 50 years and apart from this it also concentrates on
the preferences of the customers (Singh, 2012).
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MARVEL DELIGHT CHOCOLATES BUSINESS PLAN
Price
The price is also considered a key element of determining core-marketing strategies of the
company. It differentiates between the affordable and high-end products and between the
types of customers based on their affordability.
Marvel Delight Chocolates focus on keeping prices moderate for its chocolates and the
range of price will vary for different sizes, textures, and flavors of the chocolates. The range
of price will attract the customers more as it is moderate in nature that can be afforded by
any bellow average middle-class person.
Promotion
The last element of the marketing mix is promotions; however, it is the most important
element when it comes to marketing strategy. It deals with the promotion of manufactured
products by the company so that the information about it can be reached until target
customers and they will create an urge to purchase it.
In the case of selected company Marvel Delight Chocolates, the promotional techniques of
the company are good in its own way. The company uses all basic means of promotions
like print, audio, and video, however, still lacking in promoting the brand to its highest
levels.
Market Growth Strategy of Marvel Delight Chocolates
It is increased in the demand for products delivered by the company or increase in their
area of services or both. It is a slow process and shows the achievements of the company
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MARVEL DELIGHT CHOCOLATES BUSINESS PLAN
over time. The growth of the company in the market will be slow when the customers do not
whole-heartedly accept the products and services (Schaper and Others, 2010). It can be
possible because of the quality of the product, price of the product or other factors.
The market growth of any company can be achieved by following a set model of
organizational growth strategy. The organizational market growth strategy model consists
of mainly four parts that are Market Penetration, Product Development, Market
Development Strategy and Diversification Strategy. All mentioned elements of the model-
based on market and products of the company. This model tells about the current phase of
the organization due to which company can make appropriate growth strategies.
Source: Organizational Market Growth Strategy Model (Hussain, 2013)
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MARVEL DELIGHT CHOCOLATES BUSINESS PLAN
The elements of the above-given model have described briefly in the following lines:
 Market Penetration Strategy: It is the ratio between the amount of sale made by
the company and the total market for the product. The selected chocolate company
is trying its best to achieve a balance between its elements of market penetration.
The total market of the company is not very large and still, the company is thriving
for getting its sale up to the target market.
 Product Development Strategy: It is the product development strategy adopted by
the company in order to develop its products. The company is focusing on
developing more creative and innovative products so that the market growth of the
company can be achieved.
 Market Development Strategy: It is similar to product development however in this;
the company targets its overall development. The company focuses on achieving
large target markets in order to serve more customers. This helps Marvel Delight
Chocolates in developing their market.
 Diversification Strategy: In this element, strategies are made by taking into
consideration various product diversification strategies. Marvel Delight Chocolates
focuses on diversifying its products on fixed intervals so that the company can earn
profit and enjoy its growth pace by pace.
Financial Projection of Marvel Delight Chocolates
Marvel Delight Chocolates Company is dealing in a range of chocolates with its variety of
flavors and textures. The aim of this company is to spread joy and happiness among the
public by providing them delicious chocolates at a reasonable price. The company focuses
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MARVEL DELIGHT CHOCOLATES BUSINESS PLAN
on satisfying the needs of its customers, at the same time also focuses on making and
maintain revenue standards of them. For this purpose, financial projection of any company
becomes important (Brands, 2015).
Mainly financial projection is the forecast for the company's future revenue and expenses. It
is mainly developed in order to make an efficient plan for the business so that the business
can earn profits. The financial projection of the company is shown to the key investors of
the company to grab their attention. In this business plan of Marvel Delight Chocolates
financial projections, involve information about resources required and their financing, profit
and loss statement, breakeven analysis, monthly cash flow forecast and balance sheet
(Blackwell, 2011).
Resources required and their Financing
Marvel Delight Chocolates
Resource Requirements (as on 1 Jan 2017)
Resources Amount ($)
Inventories 5,000.00
Raw Materials 3,000.00
Machinery 20,000.00
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MARVEL DELIGHT CHOCOLATES BUSINESS PLAN
Equipments 10,000.00
Labor (30 workers*$2,000) 6,000.00
Office Staff (10 officials*$8,000) 8,000.00
Working capital 35,000.00
Total 82,000.00
Above table shows the main resources needed by the company in order to run its business
without any interruptions (Cunningham & Others, 2012). It helps the company to run its
business smoothly. The table is stating about the cost of major resources required to run
the business of Marvel Delight Chocolates. The total of resources needed is $82,000. So in
order to run smoothly and productively the company should invest mentioned amount in its
major resources.
Profit Projection/ Profit and Loss Statement
Marvel Delight Chocolates
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MARVEL DELIGHT CHOCOLATES BUSINESS PLAN
Profit & Loss Statement ( as on 31st Dec 2018)
Particulars Amount ($)
Operating revenue 430,000
Miscellaneous income 126,000
A. Total 556,000
B. Cost of Sales 236,500
C. Gross Profit (A-B) 319,500
D. Operating Expenses
Cost of Indirect Materials consumed 45,000
Employee's Salary (Office Staff and
Labor) 140,000
Rent 27,000
Utilities 13,000
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MARVEL DELIGHT CHOCOLATES BUSINESS PLAN
Depreciation 14,000
Marketing 27,000
Maintenance & Repairs 1,600
Other 1,350
Total 268,950
Operating profit 50,550
Less: Interest 3,000
Profit before tax 47,550
Less: Tax @ 20% 9,510
Net Profit AT 38,040
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MARVEL DELIGHT CHOCOLATES BUSINESS PLAN
The table shows about the amount of net profit earned by the company in the year 2017.
The company earned profit it of $38,040 in 2017. It is not a big amount however; the
company is not going in loss and is expecting to make more profits in future.
Breakeven Analysis
Marvel Delight Chocolates
Break Even Analysis ( as on 31st Dec 2018)
Particulars Amount ($)
Estimated Fixed Cost 278,600
Average Price 32,700
Estimated Variable Cost 28,350
Total 4,350
Breakeven point 64.05
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MARVEL DELIGHT CHOCOLATES BUSINESS PLAN
This table shows the breakeven point that is calculated by using a formula:
Breakeven point = Fixed Cost/ (Average price- Variable costs)
The solution of this formula is mentioned in the table. As it can be seen in the table, that
breakeven point for this company is 64.05. The analysis of breakeven point discloses that
the company sells its products more than breakeven point so that it can earn more profit in
future.
Monthly Cash Flow Forecast
Marvel Delight Chocolates
Monthly Cash Flow Forecast (for the year 2019)
Amount ($)
Cash
Flow
Janu
ary
Febr
uary
Ma
rch
Ap
ril
Ma
y
Ju
ne
Jul
y
Au
gu
st
Sept
emb
er
Oct
obe
r
Nov
emb
er
Dec
emb
er
Opening
balance 72,0
00
8
5,873 117
,20
6
158
,24
9
206
,01
3
261
,16
3
324
,41
2
392
,22
8
469,
558
562
,01
3
666,
158
783,
080
Cash
incoming
Sales
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MARVEL DELIGHT CHOCOLATES BUSINESS PLAN
68,3
00
75,13
0
82,
643
90,
907
99,
998
109
,99
8
120
,99
8
133
,09
7
146,
407
161
,04
8
177,
153
194,
868
Total
incoming 68,3
00
75,13
0
82,
643
90,
907
99,
998
109
,99
8
120
,99
8
133
,09
7
146,
407
161
,04
8
1
77,1
53
194,
868
Cash
outgoing
Lease
10,1
95
Research
and
developm
ent
6,00
0
6,200 7,1
30
7,2
87
Machiner
y 8,00
0
Purchase
s (stock
etc)
9,63
0
11,07
5
12,
403
13,
892
15,
559
17,
426
19,
517
21,
859
24,4
82
27,
420
30,7
10
34,3
96
Advertisin
g &
marketing
2,81
6
3,580 4,2
60
4,4
96
Recruitm
ent and
selection
10,6
63
21,66
3
21,
663
21,
663
21,
663
21,
663
21,
663
21,
663
21,6
63
21,
663
21,6
63
21,6
63
Transport
ation cost 6,91 6,9 6,9 6,9 6,9 6,9 6,9 6,91 6,9 6,91 6,91
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MARVEL DELIGHT CHOCOLATES BUSINESS PLAN
0 6,910 10 10 10 10 10 10 0 10 0 0
Other
misc.
Cost
213 571 623 679 717 750 832 840 897 910 948 970
Total
outgoing 54,4
27
43,79
8
41,
599
43,
143
44,
848
46,
749
53,
182
55,
768 53,9
52
56,
903
60,2
31
63,9
38
Monthly
cash
balance
13,8
73
31,33
2 41,
044
47,
764
55,
150
63,
249
67,
816
77,
330
92,4
55
104
,14
5
116,
922
130,
930
Closing
balance 85,8
73
117,2
06
158
,24
9
206
,01
3
261
,16
3
324
,41
2
3
92,
228
469
,55
8
562,
013 666
,15
8
783,
080
914,
009
Assumptions: All figures are tax inclusive.
This table shows the elements that create in flow and out flow of cash from the company.
This table is showing the cash flow forecast for upcoming months of the year (Cunningham
& Others, 2012). It can be seen from the table that estimated closing balance of each
month of cash flows are increasing monthly. It clears that the company is on its path of
growth and is using good business plan to become a market leader.
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MARVEL DELIGHT CHOCOLATES BUSINESS PLAN
Balance Sheet
Marvel Delight Chocolates
Balance Sheet ( as on 31st Dec 2018)
Amount ($)
Assets 2018
Current 78,000
Fixed 352,000
Other assets 16,000
Total Assets 446,000
Liabilities
Non-Current (Borrowings) 250,000
Total Liabilities 250,000
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MARVEL DELIGHT CHOCOLATES BUSINESS PLAN
Equity 196,000
Total Liabilities & Equity 446,000
This is the balance sheet of the company for the year ending 31 Dec 2017. It is showing
complete information about total assets the company purchased or invested in and the total
liabilities the company has to pay back. It is showing the balance between companies’
assets and liabilities (G.Bromley & A.Harrast, 2011).
Material Risks and their Mitigation
The Marvel Delight Chocolates Company deals in the food industry and there are various
types of risks, which a food providing company can experience. Any company can
experience significant harm while going under a set procedure of doing its business
(Brinckmann et al., 2010). These types of risks may or may not occur however should be
taken into consideration. In the case of this chocolate company probable material risk can
be:
 Risk of Quality Assurance: Quality is always considered as the main element of USP
for any company; hence, its control becomes so crucial for the companies. This is
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MARVEL DELIGHT CHOCOLATES BUSINESS PLAN
the most probable risk the company can face. According to new and evolved quality,
measures regarding chocolate manufacturing the Marvel delight chocolate company
should follow these measures efficiently and control their quality continuously.
 Risk of Contamination: contamination means the particle of food being mixed with
some harmful foreign particle. This can cause lots of harm to food and in turn to one
who eats it. This risk can cause big chaos for the company as contamination can
come in many forms for this chocolate company. the chocolates might get infected
or may not be fresh and healthy whenever the customer eats it.
 Risk of Evolution: The Company can and is always facing the risk of evolution. in
today's world, every company is trying hard to provide a competitive advantage over
other companies. In chocolate manufacturing or food industries also, the companies
are coming up with creative ideas and satisfying its customers to its fullest. In order
to be a market leader, Marvel Delight Chocolate Company cannot avoid innovation
and creativity (Bigliardi, 2013).
Mitigation of Risks
Mitigation means the action undertaken to reduce the painfulness, severity or seriousness
of something. In the case of risks, mitigation concerned with overcoming the desirability of
risks, so that no or minimum harm can be made. It is concerned with developing effective
strategies from before only to deal with the risk that might occur in the future.
In the above paragraph, a detailed explanation is given to demonstrate various material
risks that can affect the working of Marvel Delight Chocolates Company (JackGallo et al.,
2018). However, in this part, some strategies to overcome those risks are going to be brief.
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MARVEL DELIGHT CHOCOLATES BUSINESS PLAN
The strategies to overcome probable material risks for Marvel Delight Chocolates are as
follows:
Mitigation of Quality Assurance or Control Risk: It is the first risk that the selected company
might face. In order to maintain good quality and satisfy the customer wants, the company
need provide certificates of quality assurance and control to its customers so that they feel
secure and can enjoy their chocolates without any threat (Nestle, 2013).
Mitigation of contamination risk: Contamination of the product can occur due to many
reasons. It means damage or infection of the food. In order to avoid any type of food
contamination, the Marvel Delight Chocolate Company can add some eatable
preservatives to its chocolates and provide chocolates free from legally harmful substances
(Kwong et al., 2012).
Mitigation of evolution risk: in order to manage the evolution risk, Marvel Delight Chocolates
Company should continuously work on its research and development department. This can
help them to know about recent trends and flavors. The company can take into account
various changes taking place and can act upon them as soon as possible.
Conclusion and Recommendations
The food industry is one of the fastest going industries in the world. When one can look for
chocolate companies in food industries, the place of companies is very demanding and
profitable. It is always considered that chocolate companies are evolving and expanding
with the pace of time.
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MARVEL DELIGHT CHOCOLATES BUSINESS PLAN
In case of this Marvel delight chocolate company, the company is set upon imaginary
measures only for this project. Every detail about the company is hypothetical however; its
comparison with the environment and other competing organizations is not imaginary. The
discussion about various risks faced by the chocolate company and its effective mitigation
is also not hypothetical and beneficial for other organizations.
The report tells about all concerning issues related to the company. The issues covered in
this report include all the factors responsible for making an effective business plan for a
company. With the help of the current business plan that is suggested in this report, one
can run a chocolate company very effectively and efficiently. Its financial projection stated
that in the end, the company might earn good profits.
There are many good aspects of the suggested business plan however not every business
plan is perfect in its own (Gassmann et al., 2014). This business plan also needs some
minor and major changes to make chocolate business more productive and profitable in
nature. In order to do so, some recommendations are also suggested in this report.
It is recommended that while establishing a new business or in the process of running a
small business, Chocolate companies need to first analyze their market effectively (Fujita
and others, 2016). After doing so the companies can look into various alternatives to
formulate a productive and proactive strategy that can provide the business competitive
advantage over other and then work upon it effectively and efficiently with regular
development and growth.
Marvel Delight Chocolate Company is running its business productively so far. It has a
good business plan and it had already acted upon it effectively (Finch, 2013). However, the
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MARVEL DELIGHT CHOCOLATES BUSINESS PLAN
company still missed some important points that must be taken into consideration. It should
involve a big personality to endorse its brand more effectively. It can use more social media
channels to do marketing as compared to traditional marketing tools. This can help the
company to maintain its profit in the long run.
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MARVEL DELIGHT CHOCOLATES BUSINESS PLAN
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30

MARVEL DELIGHT CHOCOLATES BUSINESS PLAN
Appendix
Resources required and their Financing
Marvel Delight Chocolates
Resource Requirements (as on 1 Jan 2017)
Resources Amount ($)
Inventories 5,000.00
Raw Materials 3,000.00
Machinery 20,000.00
Equipments 10,000.00
Labor (30 workers*$2,000) 6,000.00
Office Staff (10 officials*$8,000) 8,000.00
Working capital 35,000.00
Total 82,000.00
31

MARVEL DELIGHT CHOCOLATES BUSINESS PLAN
Profit Projection/ Profit and Loss Statement
Marvel Delight Chocolates
Profit & Loss Statement ( as on 31st Dec 2018)
Particulars Amount ($)
Operating revenue 430,000
Miscellaneous income 126,000
A. Total 556,000
B. Cost of Sales 236,500
C. Gross Profit (A-B) 319,500
D. Operating Expenses
Cost of Indirect Materials consumed 45,000
32

MARVEL DELIGHT CHOCOLATES BUSINESS PLAN
Employee's Salary (Office Staff and
Labor) 140,000
Rent 27,000
Utilities 13,000
Depreciation 14,000
Marketing 27,000
Maintenance & Repairs 1,600
Other 1,350
Total 268,950
Operating profit 50,550
Less: Interest 3,000
Profit before tax 47,550
Less: Tax @ 20% 9,510
33

MARVEL DELIGHT CHOCOLATES BUSINESS PLAN
Net Profit AT 38,040
34

MARVEL DELIGHT CHOCOLATES BUSINESS PLAN
Breakeven Analysis
Marvel Delight Chocolates
Break Even Analysis ( as on 31st Dec 2018)
Particulars Amount ($)
Estimated Fixed Cost 278,600
Average Price 32,700
Estimated Variable Cost 28,350
Total 4,350
Breakeven point 64.05
35

MARVEL DELIGHT CHOCOLATES BUSINESS PLAN
Monthly Cash Flow Forecast
Marvel Delight Chocolates
Monthly Cash Flow Forecast (for the year 2019)
Amount ($)
Cash
Flow
Janu
ary
Febr
uary
Ma
rch
Ap
ril
Ma
y
Ju
ne
Jul
y
Au
gu
st
Sept
emb
er
Oct
obe
r
Nov
emb
er
Dec
emb
er
Opening
balance 72,0
00
8
5,873 117
,20
6
158
,24
9
206
,01
3
261
,16
3
324
,41
2
392
,22
8
469,
558
562
,01
3
666,
158
783,
080
Cash
incoming
Sales
68,3
00
75,13
0
82,
643
90,
907
99,
998
109
,99
8
120
,99
8
133
,09
7
146,
407
161
,04
8
177,
153
194,
868
Total
incoming 68,3
00
75,13
0
82,
643
90,
907
99,
998
109
,99
8
120
,99
8
133
,09
7
146,
407
161
,04
8
1
77,1
53
194,
868
Cash
outgoing
Lease
10,1
95
36

MARVEL DELIGHT CHOCOLATES BUSINESS PLAN
Research
and
developm
ent
6,00
0
6,200 7,1
30
7,2
87
Machiner
y 8,00
0
Purchase
s (stock
etc)
9,63
0
11,07
5
12,
403
13,
892
15,
559
17,
426
19,
517
21,
859
24,4
82
27,
420
30,7
10
34,3
96
Advertisin
g &
marketing
2,81
6
3,580 4,2
60
4,4
96
Recruitm
ent and
selection
10,6
63
21,66
3
21,
663
21,
663
21,
663
21,
663
21,
663
21,
663
21,6
63
21,
663
21,6
63
21,6
63
Transport
ation cost 6,91
0
6,910 6,9
10
6,9
10
6,9
10
6,9
10
6,9
10
6,9
10
6,91
0
6,9
10
6,91
0
6,91
0
Other
misc.
Cost
213 571 623 679 717 750 832 840 897 910 948 970
Total
outgoing 54,4
27
43,79
8
41,
599
43,
143
44,
848
46,
749
53,
182
55,
768 53,9
52
56,
903
60,2
31
63,9
38
37

MARVEL DELIGHT CHOCOLATES BUSINESS PLAN
Monthly
cash
balance
13,8
73
31,33
2 41,
044
47,
764
55,
150
63,
249
67,
816
77,
330
92,4
55
104
,14
5
116,
922
130,
930
Closing
balance 85,8
73
117,2
06
158
,24
9
206
,01
3
261
,16
3
324
,41
2
3
92,
228
469
,55
8
562,
013 666
,15
8
783,
080
914,
009
Assumptions: All figures are tax inclusive.
38

MARVEL DELIGHT CHOCOLATES BUSINESS PLAN
Balance Sheet
Marvel Delight Chocolates
Balance Sheet ( as on 31st Dec 2018)
Amount ($)
Assets 2018
Current 78,000
Fixed 352,000
Other assets 16,000
Total Assets 446,000
Liabilities
Non-Current (Borrowings) 250,000
39

MARVEL DELIGHT CHOCOLATES BUSINESS PLAN
Total Liabilities 250,000
Equity 196,000
Total Liabilities & Equity 446,000
40