Nature Supermarket Business Plan Executive Summary and Financials

This business plan outlines the strategy for launching "Nature," a supermarket in Middlesex, London, focusing on organic products, including its own Bio Oil, and other branded goods. The plan details the company's mission to be a leading UK supermarket by offering high-quality organic products, capitalizing on the growing consumer shift towards organic and natural goods. It includes a product description of Bio Oil and other products, a unique selling proposition, and an analysis of the market using Porter's Five Forces. The report also covers market opportunities and risks, target market identification, marketing strategies (including social media), operational aspects, funding requirements, and detailed financial projections including sales revenue, profit and loss, and cash flow forecasts. The plan emphasizes the importance of e-branding, seamless customer experiences, and cultural changes to boost sales. The marketing strategy focuses on social media campaigns to achieve sales objectives. The plan also identifies competitive threats and risks to brand image, and consumer expectations.

Business Plan

Executive Summary
Present document has showed the business plan of Nature, where its own product named
as Bio Oil along with different existing brand's products would help the company to operate
within the business environment of United Kingdom and lead to success. Along with this, social
media marketing strategy would lead the Nature which is to gain ample number of competitive
advancement in short span.

Table of Contents
Executive Summary.........................................................................................................................2
Introduction......................................................................................................................................1
The business overview:....................................................................................................................1
Purpose of the business....................................................................................................................1
Product / service description............................................................................................................2
Your USP.........................................................................................................................................2
Market / industry analysis................................................................................................................3
Market opportunities and risks.........................................................................................................4
Target market...................................................................................................................................5
Marketing strategy...........................................................................................................................5
Operations........................................................................................................................................5
Funding Requirements & rationale..................................................................................................6
Financials.........................................................................................................................................6
Sales revenue projection along With Profit and Loss:.....................................................................7
Cash flow forecast............................................................................................................................9
Conclusion.....................................................................................................................................11
Reference List................................................................................................................................12

Introduction
A business plan is said to be or defined as a written document that helps a business
organisation in describing the overall nature of the business considering different elements like
marketing strategy, sales and along with the financial backgrounds as well that stays enclosed
with a proper projected profit and loss statement (Shelton, 2017). Present business plan is
particularly based on a whole new supermarket, which will mainly support the society through
offering consumers with the best organic products, that would support environment as well at the
same time.
The business overview:
The new business venture (a Supermarket) named as “Nature” has to be launched in
Middlesex, London. Basically, this retail supermarket is going to sell it's own organic product i.e.
Bio Oil, along with different organic, grocery related and various synthetic products that are
offered by existing brands. Including this, the business has kept it's focus on supporting the
organic products because of the trends and changing mindset of public, which shifting from
synthetic to organic beauty and other related products.
Away with this, company's mission is to become a leading supermarket in all over United
Kingdom, through supporting and offering consumers with organic beauty products considering
the high quality factor. Including this, vision of Nature is to bring awareness among potential
customers that how synthetic or beauty products filled harmful chemicals could impact
negatively on human body, if they are used for a longer period of time.
Purpose of the business
Basically, the purpose of new venture named as Nature (which is a supermarket) is to
make the United Kingdom chemical free through offering potential consumers with organic
products and services. Organisation is also selling different organic products that belongs to
other business companies. Considering this purpose, Nature would directly become able to offer
the best experience to customers considering all the organic and other grocery and beauty related
products that do not harm much to human body in a long run (Gabler and et. al., 2017).
With the help of this, it can easily be said that Nature would reach to an end in specified
time frame. Including this, it is also pretty much clear that focusing on these few elements like
quality, modifications as per the trends and requirements of consumers, Nature would grab a
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good position within the market of Middlesex, London, United Kingdom in specified time frame.
Away with this, No matter how better an individual look every day, the need for cosmetics will
never end. Quenching the thirst for fairness and beauty will always fascinate human beings. The
best way to achieve such beauty is both from the inside and outside. Using organic hair oil
named as Bio oil of Nature may become as a healing element for the potential consumers to the
damage that has already took place to their hair and this will directly deliver a plush and supple
look to consumer's hair.
Product / service description
The new business venture, Nature will effectively be delivering high range of potential
products along with the services. Here, Bio Oil that company is offering to it's customers carries
number of ingredients and these are triisononanoin, Mineral oil (paraffinum liquidum), isopropyl
myristate, cetearyl ethylhexanoate, sunflower seed oil, retinyl palmitate, anthemis nobilis flower
oil, tocopheryl acetate, rosmarius officinalis (rosemary) leaf oil and lavandula angustifolia
(lavender) oil. On the other hand, if it is talked about other products then since Nature is a
supermarket, it will be offering consumers with different products of various brands like The
Rose Tree, Lovegrove Essentials, Seascape, Goodfella’s, Good Boy, Cushelle, San Pellegrino
and so on that offers customers with various food and grocery related products and services
(Cramer, 2017).
If it is talked about the service, then the company will soon launch the customer support
service, where consumers would become able to deliver feedbacks and may resolve all the
possible queries 24*7. Considering these elements, it can easily be said that Nature would
possible become able to enhance their sales in a short span. But, it will be required by the
supermarket to keep on making alterations among it's strategies because number of products like
Bio Oil and more, their sales can also be affected by due to many of the reasons like competitor
responses, economic climate, changes within regulation, marketing campaigns, consumer trends,
changes among technology and alterations among distribution (Blackwell, 2017).
Your USP
If it is talked about Unique Selling Point of Nature, then company is offering customers
with Bio Oil which is an organic product in nature, that will directly attract customers of
Middlesex and of different areas as well, where Nature will expand it's business in near future.
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Basically, it is said that organic beauty product industry is at boom at the moment not only in
United Kingdom but in all over the world. Therefore, if the company will support organic among
all the areas in which it is operating then it will directly grab the attention of consumers that are
looking forward to raise their standards of living. Through this, sales of Nature would directly
get improvised in short span (Wallace and Webber, 2017).
Market / industry analysis
In order to analyse the whole industry, research and development department of Nature
could effectively take into consideration of a particular model named as Porter's Five Forces
Model (Zokaei and et. al., 2017). This would lead the whole situation to understand the market.
Here, Porter's Five Forces Model is consists with five different elements that force an industry to
get affected and these could be both positive and negative at the same time and this is presented
underneath:
Porter's Five Forces Model:
Competition in the industry: In present time, competitiveness among retail and cosmetic
industry of United Kingdom is very much high, because there are ample number of business
organisations dealing within the cosmetic and retail industry of United Kingdom like Asda,
Tesco, Sainsbury's, Walmart, Espa, Elemis, Clarins and many small retailers as well. Therefore,
it is possible that within United Kingdom's market, Nature would deal with number of issues
while entering market of Middlesex (Turner and Endres, 2017).
Potential of new entrants into the industry: This force within the retail and cosmetic
industry of United Kingdom is pretty much high in nature, where new business organisations just
like Nature are looking forward or striving to perform or operate business and giving good
rivalry to existing business firms. Therefore, this is also said to be one of the crucial element that
may continuously put impact upon services and organic products offered by Nature. It will also
impact upon sales as well due to many reasons like innovations among technological factors,
economic climate and so on (Reymen and et. al., 2017).
Power of suppliers: It has been analysed that suppliers among this market are huge in
numbers, which lowers down the power of them, because within the retail and cosmetic industry
in which organisations are operating could effectively change the suppliers based on their
requirements.
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Power of customers: Enhanced competition along with product's availability consists
with high power within this industry. Basically, the reason that came in front is change among
trends and shift of interest and requirements as well.
Threat of substitute products: Retail industry where cosmetic products are being sold
could be considered as one of the crucial stage where threat from substitute products is quite low
enough. Due to this, Nature would gain competitive advancement in specified time frame
(Volker and Phillips, 2018).
Market opportunities and risks
Opportunities:
There are many opportunities for a retail firm in for a supermarket. This is mentioned
below:
E-branding: This is related with usage of E-commerce as a medium so that customer
service can be achieved in a outstanding manner. This can be used as a key technique for
creation of more customer connections.
Seamless experience: There is a opportunity for a retail store that they can create a
seamless experience which is both on offline and online platforms so that retailers can work on it
and deliver best services (Chambers and Humble, 2017).
Cultural change: This is related with usage of innovation and creation if a cultural
change. This can help a organisation in improvement of their overall customer experience. This
can help Nature in improvement of their sales.
Marketing campaigns: This is also a very effective tools which can be used by Nature
in attracting as well as informing their customers so that they can be aware of the innovative
feature present in the product of this company.
From above analysis it can be said that these are some opportunity which can be used by
Nature as a new strategy to increase their sales and attract more customers.
Risk:
Nature is a new Supermarket so there are many risks associated with this brand which are
discussed below:
 Intense competition: There is a threat and risk which is associated with barriers of entry.
Competition may affect the revenue of this company. There is a need of adoption of
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appropriate strategy which can be price differentiation or products differentiation only
then competitive risk can be reduced for this company.
 Establishment of a brand image: It is very important that Nature is able to establish
their brand image with the help of their products. This is a very difficult especially for
companies who are completely new for their target market. To build a effective position
is very important so that they are able to survive with their competitors.
 Consumer expectations: Thus is related with expectation which a particular customers
has with respect to a new product which is being launched in market. For every new
company it is very important that they are able to provide products which are able to
satisfy their customers as compared to products of established brands. Hence, in case of
Nature also there is a need for adequate market information which can help in building a
strong customer base (McKenzie and Sansone, 2019).
Above mentioned points are various risks which are associated with Nature which must
be taken care so that risks can be reduced to some level and profitability is not affected.
Target market
Basically, the target market that Nature has taken into consideration while entering
United Kingdom, then that is demographic segment where age of individuals from 20 to 30 is
being categorised to target. This will lead Nature to enhance the sales of Bio Oil and of other
products of various brands that company is offering.
Marketing strategy
Promotional Campaigns over social media like Facebook, Instagram, Twitter and more is
said to be one of the crucial strategy that would help Nature in meeting the sales objectives and
would also become effective at workplace in specified time frame as well (Chang, 2017).
Operations
In present time, every single industry consists of businesses that produce or supply
related products or services and the companies that support these producers and suppliers, such
as the distributors that move a product from a manufacturer to a market. The industry analysis
identifies and describes defining characteristics of the industry's major competitors and
customers.
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If it is talked about retail industry then there are many elements like economic climate,
competitor responses, marketing campaigns, changes within regulation, changes among
technology, consumer trends along with the alterations among distribution and more that are
putting impact upon industry where supermarkets are going through an uncertain situation within
United Kingdom. The major reason that came in front was Brexit, which created uncertainties for
the whole retail and beauty industry. Here, this may impact negatively upon overall operations of
nature, while selling Bio Oil in all over Middlesex, London, United Kingdom (Allen, 2018).
Funding Requirements & rationale
In order to fulfil the requirements of funding, there are number of ways that Nature has
effectively utilised and these are: Bootstrapping, Crowdfunding, Venture Capital, Funding From
Business Incubators & Accelerators. The basic reason that came in front was that no new
business could run it's operations without getting indulge with number of investors (DeNoble and
Zoller, 2017).
Financials
ONE TIME START UP EXPENSES AMOUNT
One Time Set-Up Costs:
Rent Deposit 1600
Furniture & Fixtures 3500
Equipment 3750
Build-out/ Renovations 3200
Decorating, Painting and Remodelling 1200
Installation of Fixtures & Equipment 900
Starting Inventory 1750
Deposits with Public Utilities 1150
Legal and Other Professional Fees 750
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License and Permits 550
Advertising and Promotion 390
Consulting 410
Software 350
Cash 2600
Total One Time Start-Up Costs: 22100
Monthly Expenses:
Bank Charges 125
Debt Service (Principal & Interest) 1900
Insurance 1300
Membership & Dues 1100
Maintenance & Repairs 950
Marketing & Promotion: Advertising 850
Marketing & Promotion: Other 650
Miscellaneous 320
Payroll: Wages (Owner/ Manager) 2800
Payroll: Wages (Employees) 2900
Payroll Tax 1300
Professional Fees: Accounting 1500
Professional Fees: Legal 1700
Professional Fees: Other 840
Rent 3500
Subscriptions 980
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Supplies: Office 1100
Supplies: Operating 1210
Telephone 1100
Utilities 150
Total Monthly Expenses: 26275
TOTAL START-UP FUNDS REQUIRED: 48375
Loan Amount (At 80% of Total Start-Up) 38700
Sales revenue projection along With Profit and Loss:
2020 2021 2022
Product Sales 36,62,300 39,55,284 42,71,707
Income From Services 15,35,100 16,57,908 17,90,541
Total Turnover 51,97,400 56,13,192 60,62,247
Products 23,62,230 24,52,276 25,63,024
Services - - -
Total Cost of Sales 23,62,230 24,52,276 25,63,024
Products 13,00,070 15,03,008 17,08,683
Services 15,35,100 16,57,908 17,90,541
Total Gross Profit 28,35,170 31,60,916 34,99,223
Products 35.5% 38.0% 40.0%
Services 100.0% 100.0% 100.0%
Gross Profit % 54.5% 56.3% 57.7%
Other Income 6,000 6,480 6,998
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Operating Expenses
Accounting Fees 24,000 25,440 26,966
Advertising & Marketing 1,31,000 1,38,860 1,47,192
Bank Charges 3,000 3,180 3,371
Cleaning Expenses 9,420 9,985 10,584
Computer Expenses 8,000 8,480 8,989
Consumables 5,289 5,606 5,943
Electricity & Water 13,400 14,204 15,056
Entertainment 12,000 12,720 13,483
Equipment Hire 18,000 19,080 20,225
Insurance 25,800 27,348 28,989
Legal Fees 74,000 78,440 83,146
Motor Vehicle Expenses 1,800 1,908 2,022
Postage 1,200 1,272 1,348
Printing & Stationery 3,600 3,816 4,045
Professional Fees 32,000 33,920 35,955
Rent 2,44,000 2,58,640 2,74,158
Repairs & Maintenance 5,880 6,233 6,607
Security 3,900 4,134 4,382
Subscriptions 3,200 3,392 3,596
Telephone & Fax 30,120 31,927 33,843
Training 12,000 12,720 13,483
Uniforms 2,530 2,682 2,843
Total Operating Expenses 6,64,139 7,03,987 7,46,227
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