TANCU Sole Trader: Food Van Business Plan - Market Analysis Report

This report presents a comprehensive business plan for TANCU Sole Trader, a food van business targeting students and young people. The report begins with an introduction to the business concept, emphasizing its focus on providing diverse and high-quality food options. It details the business description, including the name, location, and rationale for selecting a food van model. The plan then outlines key business objectives, such as achieving product specificity and financial security. A PESTLE analysis is conducted to assess the external factors impacting the business, covering political, economic, social, technological, legal, and environmental aspects. Marketing strategies, including target market identification and marketing mix elements, are also discussed. The report further explores different types of business decisions and concludes with an overview of supply chain elements. The report highlights the advantages of a sole trader structure and emphasizes the importance of adaptability and innovation in the competitive food industry. The plan also considers potential expansion strategies and incorporates assumptions related to catering services and franchising.

BUSINESS ESSENTIALS

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
PART A.......................................................................................................................................1
PART B.......................................................................................................................................3
TASK 2............................................................................................................................................4
PESTLE analysis.........................................................................................................................4
TASK 3............................................................................................................................................6
Part A: ........................................................................................................................................6
Part B...........................................................................................................................................7
TASK 4............................................................................................................................................8
Marketing objectives...................................................................................................................8
Target market..............................................................................................................................8
Marketing strategies for each target market ...............................................................................9
Marketing Mix..........................................................................................................................10
TASK 5..........................................................................................................................................11
Types of decision .....................................................................................................................11
TASK 6..........................................................................................................................................11
Element of supply chain ...........................................................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Business is a form of commercial activity done in order to fulfil economic wants of
people to earn profit. It is known as essential aspects of any organisation which can help them to
determine exact demand of customers from the company. It is become more necessary part of
modern era. It is associated with constant and day to day production or distribution of products
and services which can satisfy customers needs and wants. With the objectives of attaining
maximum profit under uncertain market situation they are implementing various innovative tools
and techniques to get more valuable results (Hair, 2015). This project report is based on setting
of a new business which is associated with wide variety of foods. The main aim is to target both
students or young people. It also covers various important aspects, if its get success the next
target of the sole trade company is to go with further expansion. It will encourage by thinking
creatively and it must be realistic. Some aspects of this report is based on assumption which is
related with conducting a catering services or offering their franchises to other parties to get
maximum profitability and growth.
TASK 1
PART A
As, it has been observed that, people are becoming more foody in current modern time.
They are showing plenty of interest in tasting new variation in food at different food stalls and
restaurant. There are so many types of fast food serving restaurant which is offering large
amount of delicious food to their customers according to their taste and preference. As, this
sector is more complex in global collective of diverse businesses that are already dealing in more
food that is consume by the maximum population. It seems to be biggest challenge for setting of
new businesses in same sectors which is related with food. They are various companies which is
dealing in same businesses I.e supply of wide variety of food to their customers. It will be
difficult to cop-up them to face tough competition against them (Wilson, 2014). By keeping all
these situation in mind a well organise business plan is required to be implemented which is
related with different variety of foods. It do have different variety and best quality of feature as
compare to other food restaurant business.
Description of the business:
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Food business is more effective and innovated sector in now a days so, as per the current
time period a new Food Van is needed to be formulate which is having large variety of multi-
criteria in foods. The quality and taste are relatively more attractive and tasty as compare to
other. This business will not require large amount of capital for setting up a stalls or outlets
(Laudon and Laudon, 2011). The chance of getting maximum return will be high if customers
are attracted with the quality of food.
Name of the business: “TANCU SOLE TRADER”
It is a small sole trade company which is operating as a Van that is making different types
of food for the customers.
Location:
According to the nature of business, the best areas would be outside mall, Tourist places,
universities and other crowded location. It is done so because of capturing wide range of
customers towards there business. It can be both 'online' and 'high street' would be suitable
option for this particular food business.
Reason of selection:
With the choose of this specific business, it seems to be more profitable because it get
start with minimum cost and provide maximum output. It is easy to capture large part of
population. One of the important reason is that it can be operate in any particular season. By
knowing all these quality feature of this business is seem to be good sign of getting more success
in coming time. Some special characteristics of this van is that, it has “self-cooking” facilities
option which make them different form other street stalls (Anderson and et. al., 2014). This
particular business is having many other feature that can meet out the demand of customers.
Competitors:
Name of the competitors Food types Reason
Tutto Food company Goodies from mussels to
wild mushrooms.
It is basically, related with parella. This
food van pioneers have wide branches
out of toasted sandwiches.
Balkan Burgers Special roll to soak up
with all the juices,
topped with tomato,
It is one of the fastest food truck to
meet customers needs and
requirements.
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cabbage and onions.
PART B
For any business, whether related with food business is required to perform according to
their plan. By this they can attain their aims and objectives in more quick time with minimum
wastage. The objectives are known as base of any business that determine total amount of capital
which is going to invested in the project, manpower and material which is need to making food .
These all are essential for project team to determine in early phase of the business. It can be
sometime more harmful, if they are not implemented in careful manner. Food van owners are
required to set always at higher side for gaining success. A goal or objectives are something
which every business aim for. It will help to rule out actions that doesn't contribute in attaining
the objectives those are set by the company (Robyt, 2012). As per the “TANCU SOLE
TRADER” they also need to set some useful objectives which can help them to gain more
effective outcomes. Few necessary objectives of them are discussed underneath:
 To be more specific and of high quality of product: It has been observed that food
business is that sectors which has least chance of getting affected. TANCU food van need
to be more specific while making any business plan for their food businesses. Raising
money for food van is not a specific objectives but if it would be implemented in right
and simple manner them provide more profit to the company.
 To make optimism: It is known as more effective objective which is need to be more
positive while setting any particular goals. Being able to pay food truck bills is not
exactly an inspirational objective. Attaining financial safety and securities in more
positive manner is much more difficult task that need to be taken into consideration.
 To be more real and focused on aims: Suppose the planning to make $100,0000 a month
when it never earned that much of the amount in a year it means that goal is unrealistic.
Starting at initial stage, this kind of increase in monthly revenue by 20%. Once the first
phase of plan in achieved, then after that planning for larger ones is made.
Types of ownership:
If compare the business with different forms of ownership such as sole trader and partner,
it has been more beneficial in that case. If they want to get more profit they must go with “sole
trader”. Because the profit generated from the business is divided if there are more than two
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parties. The another examples of going with sole trader is that start up cost is more less as
compare to partnership.
TASK 2
PESTLE analysis
Analysis of business environment factors are very much necessary before making any
planning for lunching of new products. According to the TANCU Sole trader company, which is
a brand new business coming for the first time in the market with their different variety of food.
Before making their impact in the market they need to conduct a well organise PESTLE analyse
to remove and determine various factors. It will help them to make their business more effective
and sustainability for very longer period of time (Cobanoglu and et. al., 2011). It is basically,
associated with external environment of the company which is affecting the business from the
outside.
Political: It is one of the prime aspects that is need to be considered by the owner of TANCU
sole trader. Such kind of development is widely influence individual business and new emerging
food van services. It consists of various factors such as:
 Political stability: It refers as that aspects which is associated with ongoing government
rule and regulation exists in the market.
 Tax policies: The most crucial aspect for new business is the tax laws which are
applicable for such kind of business are need to be followed in proper manner.
 Price regulation: Another important factors is related with setting price for their foods
which can meet out customers need and demand.
Economic: The current economic situation is more strongly related with the customers buying
position. In this phase, various factors are need to be followed like:
 Interest rate: This particular aspects is associated with that rate from which they are
getting return on total capital invest in starting a new business.
 Savings: The foods products which are provided by TANCU sole trader is must be under
the control of customer savings. It does not affect their earning and savings.
 Inflation: In this situation, the chances of business growth is more if the amount of
customers are increasing at regular course of time.
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Social aspects: It is related with the development of the society as a whole. It consists of
necessary factors which are affecting the business are:
 Customer behaviour: The food business is total depend upon the customer behaviour, if
they are comfortable enough to enjoy their food and services of the company. It is more
beneficial for them
 Demographic factors: It is related with various aspects such as age, gender, income
level and location are needed to be taken into consideration while making any business
plan.
 Advertising: The food services are required to be advertise among every parts of the
market so that maximum number of customers can get aware. There are various mode by
which advertisement can be done.
Technological aspects: It is one of the most important part of any business to make their product
available to every customers (Engemann and Henderson, 2011). Now a day, various net
modification is done in technology which help in moving their products to their customers. Some
of the factors are:
 Innovation: It is the changes which is done in food business so that chances of get
maximum goodwill and profit can be increase.
 Communication: The mode of face to face or indirect communication system be there. It
will help TANCU sole traders to provide the benefits of their food quality and services to
its customers.
 Transportation: There is online booking facilities are provided by TANCU sole trader
company to easy down customer demand.
Legal: It is responsible for deciding whether or not there is business backside selling a particular
products. It means any unethical aspects which can affect the health of customers. Some
necessary factors are:
 Customer law: It is made for the purpose of protecting consumers from any unethical
fraudulent which is done by company while selling their foods products to the customers.
They are responsible for taking corrective action against them.
 Employment law: It is related with labour laws, as a small food van business services
they required to hire people who can cook food for the customers. They are liable to get
according to minimum wage law for the work.
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Environment: It is associated with development and protection of the society and the nation
from any wrong factors which is originated during the making of food. Like waters and foods
wastage.
 Water: During production of food, lots of contaminated waters are wasted which will
directly impact the ecosystem of that nation (Ragas and Culp, 2014).
 Environmental regulation: All the necessary environment regulation is need to be
followed before setting up any new businesses.
TASK 3
Part A:
Opening or launching of new business is always more adventure. After so many year of
planning, preparation and selecting of perfect item and location, the hope is to get business
finally a grand opening. The event will be serving as initial chance to welcome customers into
your development, show off what TENSU sole trader accomplished and started to develop
relationship with the customers. Before the opening of TANCU sole traders business food van,
they want to be sure have well organise plan in place for that day. Make a complete list of
everything that is required to be done and have a particular set of date for opening of the
business. There are mainly two suitable option available for this purpose such as social gathering
can be notified by business presentation and other one is related with celebrity opening. They
choice of option can help is deciding correct option for the company. Like:
a) Investment to be made on food and entertainment:
It can be more attractive sources of innovation in which food is served with
entertainment. That would make customer more delight to come and enjoy their evening with
more comfortable manner. As, in the above discussed, company is making wide variety in food
division to attract maximum customers with huge amount of investment inside their van,
specially in evening times (Wirtz, 2012). It will be useful to earn maximum attention of people
as well as a perfect image of business would be come out. It has been seen that there is very less
number of company's which is responsible with both the facilities at the same point of time. It
can be maximum advantages for the company to gain superior attention of other company's with
these sorts of facilities.
a) If opening is done by inviting a celebrity:
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These types of business is more rarely opened by inviting any celebrity. As, it has been
seen that such kind of business are mostly operated at very small level which means that less
capital is invested for setting of this business. After knowing all these facts, it is not not so useful
decision to invite celebrity for opening a new business is not so effective. This option is not
applicable for the business as because of having small nature.
Justification:
After analysing various situations in the above case, it has been found for small scale for
business. They need to go with food and entertainment. For this purpose, local brand which is
comfortable enough to play music to entertain customers are need to be invited. The quality of
them is around four. These are more than enough for this small business (Follett, 2013). The best
ways for making maximum attention of customers is by offering discount on these first food
order. Such as a complimentary drink or desert with the meal on the van to attract maximum
customers. It has been seen that maximum customer are love to have a good deal and would be
more likely try more variety of foods.
Part B
Budget
Particular Current Year Forecasted
Revenue
Sales 100*50 5000 6000
VIP passes 100*20 2000 2500
Total sale 7000 8500
Less: Expense
Celebrity cost 100*5 500 400
Discounted food 1500 2000
Lighting 600 800
Promotional cost 200 400
Other services 100 150
Total expenses 2900 3750
Total Net profit 4100 4750
From the above budget which is made on the assumption basis according to the activities
perform during the lunching of new food business. It has been found that total revenue from 100
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people is collected in current year is about 7000. The forecasted amount if around 8500. various
expenses which are needed to be deducted from total revenues so that to get actual cost of net
profit from the total investments. It is around 4100 in present time and 4750 of total profit as
forecasted.
TASK 4
Marketing objectives
It is considered as appropriate objectives which is set by a business when promoting its
product and services to its potential customers. It help them to attain business aims and
objectives. These are basically related with marketing planning that is set in order to attain the
overall goals of TANCU sole trader company. There are two aspects which are come in front of
owners of the company (Wheelen and Hunger, 2017). Such as luxury or mass offering.
According to the food business the product and services are made according to the target market
demand. The use of any medium to sold products to a large part of customers at once. In this,
case seller would sells mass produces, distributed and promote one products to plenty of buyers
in the market.
It is case of Mass offering as they, product and foods are offered to larger part of
customers in ordinary course of businesses. The company wants to provide a positive message
from their food offering such as:
 Quality: The TANCU sole trader are offering more healthy, superior and hygienic food
items to the customers as compare to other companies. The taste and quantity of material
used in their food products are of fresh and effective.
 Service: As, opening for the first time they are provided self-cooking facilities which
making them unique from other company's in same businesses. They are also offering
online and home delivering service facilities.
 Low cost: They cost of food product are not more high which make customers to enjoy
and avail the food in more economical manner (Grant and Taylor, 2014). It is important
for the company to have appropriate price so that maximum customers would get
attracted toward their businesses.
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 Value: The TANCU company is create more interesting value to its customers. From the
services which are offered by Food van company is for making maximum benefits to
their customers.
Target market
It is term as that marketplace in which a particular products and services are delivered to
its customers, prospects and other suspects. This marketplace is categories into various areas,
region, state and country etc. It is related with each market segment which is associated with one
or more than one segment of customers. For this particular businesses, TENCU sole traders is
need to target young, people with certain belief. Basically, related with green customers who
wants to purchase things that have been produced in a ways to protect national ecosystem. They
are those people who use to buy those products which are environmentally friendly (Prewitt and
Weil, 2014). The another aspects of associated with wealth maximisation of people by offering
best quality of products to its customers. Disposable packet should be used so that it does not
harm the environment as well as other living things. According to the taste asked by target
customers from TANCU sole trader company planning is needed to be done.
Target market is required to be analyse according to there geographic, demographic,
behavioural and psycho graphic nature of the customers. The food division is associated with
capturing maximum customers (Target Marketing, 2017). If the all segment are needed to be
capture for this gaining profit for the business it will have multiple implication. Such as:
economic growth: The chances of getting economic of scale is increase. It is related with cost
benefits that an sole trader gain because of their large scale of operations. Brand image and
quality of their food would be increase in entire segment.
Marketing strategies for each target market
According to the above target market which is related with young people. Marketing
strategies has a fundamental objectives of enhancing sales and attaining sustainability as
competitive benefits. A proper marketing plan would be drawn from complete market search and
target on the product mix in order to attain the maximum profit for the business. It has been seen
that young peoples are now a days connected with the online or social media sites (Romano,
2013). The best ways to present their food products between customers are to promote them
over internet. With the promotion of brand over internet make maximum customers to take
interest and active part in availing superior services offered by TANCU. For this purpose, there
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are various promotional modes can be used that make their work more easy to interact with
plenty of customers in a single day. Some of them are:
 Print promotion: It is related with promoting business at large scale. It consists of
brochures and newsletters.
 Television advertising: In order to expand their work in more part of the market,
company used to go with TV ads. It will help to go at local, national or international
marketplace.
 Online marketing: It has been seen that maximum of booking and order are taken over
using internet it is more effective in recent times by using pay per click ads on websites
can be directly related with target marketing (Urner, 2016).
Marketing Mix
Element Description Justification
Price It is related with the amount of food
that a consumer must be able to
afford to purchase food products
(Using the Marketing Mix to
Strengthen your Marketing Strategy,
2016).
The main reason behind keeping the
price low is because, as this business is
setting as a new unit in the market.
There is huge risk of getting success
so if they price would be charged in
more economical manner it will be
more profitability for them.
Product The list of items which are offered by
TANCU is for selling according to
local market. The quality, design,
features, customer services and after
sale services are need to be
considered in it.
The main reason for offering such kind
of product are for getting attention of
maximum customers towards there
business. It should be more superior
from other competitors.
Place The business’s product must be
reached at various places in regards to
distribution, location and techniques
of getting food van to our customers.
Research shows that many customers
will want to order maximum products
because they are offering effective
option to reach at their destination.
Promotion The act of communciating maximum It involves in delivering inforamtion
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