Business Plan for Vitabiotics: Industry, Marketing & Financial Plan

This report presents a business plan assessment for Vitabiotics Ltd, a nutraceutical company based in the UK. It includes a business description, industry analysis using Porter's Five Forces, an operations and management team plan, a marketing plan, and a financial plan. The industry analysis assesses the threats of new entrants and substitutes, the bargaining power of customers and suppliers, and competitive rivalry. The operations plan describes business processes, objectives, the supply chain, production process, warehousing, distribution, and revenue generation. The management team plan outlines the skills and contributions of key personnel. The marketing plan focuses on product innovation, pricing strategy, promotional mix, and distribution channels. The financial plan discusses sources of funds, including personal investment and business angels, and provides a startup cost estimate. The report aims to provide a comprehensive overview of Vitabiotics' business strategies in a post-pandemic market environment. Desklib provides access to similar solved assignments for students.

Business Plan
Assessment 2

Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
1. Business description.................................................................................................................1
2. Industry Analysis.....................................................................................................................2
3. Operations and Management team plan...................................................................................4
4. Marketing plan.........................................................................................................................6
5. Financial Plan...........................................................................................................................7
CONCLUSION................................................................................................................................8
.........................................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Business management is administration of coordinating and managing business activities
of an organisation. Management of a company oversees business operations as well as helps its
employees to reach maximum possibilities of productivity level (Hanák and Grežo, 2020). For
this report, Vitabiotics is a selected company which is a nutraceutical company operating in
international market having headquarter in London, UK. This company provides quality
premium vitamin and minerals products in healthcare sector to different demographics of society
at a reasonable range of price.
The report includes a business plan determining pandemic affects on products and
services in a company of a respective industry. It also includes porter's five forces to analyse
industry attractiveness. This report consists of marketing plan to analyse products and services of
a company to thrive in post pandemic affect in market.
MAIN BODY
1. Business description
Vitabiotics Ltd is a nutraceutical company providing its vitamin and minerals goods in
local and international market in pharmaceutical industry and is situated in London, UK.
Vitabiotics Ltd was founded by Kartar Lalvani in 1971. Company provides premium quality
products such as Menopace, pregnacare, perfectil, wellman etc. at an affordable price range to its
customers. Vitabiotics Ltd has became one of the largest multivitamin company in United
Kingdom in terms of its sales value.
Mission- Vitabiotics Ltd has a mission to provide vitamin and minerals products to
customers. In order to provide them wellness and health through its products which are being
produced in an ethical way in order to demonstrate an attitude to fulfil corporate social
responsibility towards environment as well as achieve sustainability in market (Katz, 2018).
Vision- Vitabiotics Ltd is focusing to its vision on expanding its sales by 15% in 2022.
company is focusing into various marketing tactics to attract more customers in this stressful
environment of COVID-19 pandemic. Company is looking forward to provide a good health to
citizens of UK by building their immune system through its products in order to fight effectively
with corona virus.
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Description of products- Vitabiotics Ltd offers a variety of products in health and
wellness such as wellman which provides essential vitamins and minerals for men, wellwoman
which provides health and vitality supplements to women in order to increase their energy,
stamina as well as build strong immune system. Company is focusing in providing delivery
services of its products to its customers during and post COVID-19 pandemic environment.
Vitabiotics Ltd has collaborated with a third party delivery services to provide fast delivery of its
products to its customers with motive to avoid them suffer with inconvenience as well as
marking safety measures of its customers in stressful COVID-19 environment. Company has
innovated its products in order to build good immunity in its customers in order to deal with
spread of coronavirus.
2. Industry Analysis
Industry analysis is a process of facilitating understanding of an organisation's position to
its relative other competitive firms in industry (Kuratko, and Morris, 2018). Vitabiotics Ltd
adopts porter's five forces to analyse its industry analysis in aspect of other firms operating in
nutraceutical industry.
Porter's five forces-
Determining Porter's five forces of Vitabiotics Ltd in order to evaluate its industry
analysis is as follows- Threats of New Entrants- Threats of new entrants is seen low in pharmaceutical
industry as this industry requires a huge capital investment in order to start its business.
Vitabiotics Ltd has a low threat of new entrants as a huge investment amount is required
by new comers to start business in this pharmaceutical industry as well as COVID-19
pandemic has increased challenges for new comers as well as provided opportunities for
existing companies to cope and thrive their business operations during and post
pandemic. Threats of substitutes- Threats of substitutes is low in pharmaceutical industry as this
industry has a high rate of competitive products in market (Sahut, Iandoli and Teulon,
2021). But due to innovation steps taken by various companies during COVID-19
pandemic has increased rate of substitute as well as competitive products for Vitabiotics
Ltd.
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 Bargaining power of customers- Consumers has high power to dictate a company's
products, rules as well as price of their products in market. Bargaining power of buyers
is high in pharmaceutical industry as there are various multiple options available for
customers to buy from different companies quality products at an affordable price range.
Customers has power to dictate price, rules of products of Vitabiotics Ltd in during.
COVID-19 has also increased power of customers in pharmaceutical industry as
companies are making essential measures to increase their sale while adopting various
marketing, innovating new health and wellness products as well as pricing strategy. Bargaining power of suppliers- Supplier power is low in Vitabiotics Ltd as well as in
pharmaceutical industry. Vitabiotics Ltd is working with numerous number of suppliers
and has power to switch between its suppliers depending quality of raw material as well
as prices being offered by their suppliers. Vitabiotics Ltd also makes an agreement with
its suppliers for years to work with at a desired price as well as quality of resources
mentioned in it. This impacts in low power in hands of its suppliers as company plays as
a dominant player in UK market while having a number of good suppliers collaborated
with them. Competitive Rivalry- Extremely high competition is seen in pharmaceutical industry
(Mariani, Bartoloni and Morelli, 2019). This also uplifts level of competition for
Vitabiotics Ltd in this industry. Due to COVID-19 impact, many companies in
pharmaceutical industry came forward with innovation techniques in order to improve
immunity of its customers with objective to provide health to its customers, survive and
sustain in and post COVID-19 affect in market by providing wellness products to
increase immunity. Companies has started adopting various digital marketing techniques
in order to reach maximum number of customers with its wellness and healthcare
products at safe zones in aspect of regulations established by government of UK in order
to cope up in COVID-19 pandemic stress.
Name of Competitors Differentiation
Natures Aid Natures aid is a multinational nutraceutical firm providing health and
minerals supplements for infants, children, adults, etc. This company
was founded in 1981 and manufactures and supply high quality
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nutritional supplements.
Evergreen Life Evergreen life is operating under pharmaceutical industry and was
founded in 2014 having headquarter in Manchester, UK. This company
provides quality products in vitamins and minerals to customers at a
reasonable rate of price.
Laleham Laleham is situated in Hampshire, which provides health and beauty
products to customers at an affordable price range. Company
manufactures its products by using quality products in order to provide
effective results to its customers.
3. Operations and Management team plan
Operations-
Operations plan is a report describing objectives, procedure, goals and timeline of a
business organisation (Masciocchi, 2020). Operations plan of Vitabiotics Ltd is being analysed
as below-
Basis Description
Business process Vitabiotics Ltd is a pharmaceutical company which provides health
and mineral products to customers in market.
Objectives Vitabiotics Ltd is to provides health and wellness products as well
as to generate profits to sustain in market.
Supply chain Vitabiotics Ltd has collaborated with number of suppliers which
are local vendors which provides fresh raw materials to produce
quality products.
Production process Vitabiotics Ltd has adopted latest technologies to enhance its
production process such as adopting AI devices in order to monitor
resource with objective to reduce wastages.
Warehouse Vitabiotics Ltd produces its products in its production house
situated in London, UK.
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Distribution Vitabiotics Ltd adopts various marketing tools such as digital
marketing as well as supplying its products to various distributors
in UK.
Revenue generation Vitabiotics Ltd generates revenue by engaging more with
customers with means of digital platforms, local distributors, e-
commerce sites etc. Company provides quality products that
improves health by building immunity in its customers which also
impacts positively by engaging more effectively and efficiently
with customers while generating more profits for long term growth.
Management team-
Management team plays an crucial role in managing business processes in an
organisation (Moro Visconti, 2019). It is important to select effectively management team in
order to achieve its business projects, objectives under deadline. Management team plan in
aspect of Vitabiotics Ltd is being analysed as below-
Name Skills What do they bring to the firm
Chief operating officer Chief operating officer of
Vitabiotics Ltd must have
leadership, time management,
communication, decision
making, problem solving etc.
skills.
Chief operating officer monitors and
manages operational work of
Vitabiotics Ltd which helps company
to work effectively (Vitabiotics Ltd.
2022).
Chief financial officer Chief financial officer of
Vitabiotics Ltd must have
skills of effective financial
planning, forecasting, budget
development, corporate
finance,etc.
Chief financial officers of Vitabiotics
Ltd helps company to forecast an
effective budget while reducing cost in
order to expanding profitability.
Vice president of sales Vice president of sales of
Vitabiotics Ltd must have
Vice president of sales helps company
to enhance its sales activity by
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effective customer service
skills, interpersonal,
communication, leadership
skills etc.
effectively engaging with more target
audience. A good sales manager helps
Vitabiotics Ltd to increase its sales as
well as generate more profits.
Vice president of
marketing
Vice president of marketing
should be proficient in
marketing skills such as
communication, leadership,
analytical skills,etc.
Marketing head generates leads,
acquires knowledge regarding demand
of products as well as needs of
customers in market. This helps
production unit to produce goods as
per demand quantity as well as sales
unit to create strategies to attract
customers (Vitabiotics Ltd. 2022).
Digital marketing
manager
Digital marketing manager
must be proficient and have
knowledge of digital
landscape (Ratten and
Usmanij, 2021). They are
such as Google AdWords,
web analytics, SEO, social
media sites etc.
Digital marketing mangers helps
Vitabiotics Ltd to reach its existing as
well as proficient customers effectively
during COVID-19 pandemic which
helps company to survive and thrive in
this stressful environment.
HR manager HR manager must be
analytics, agility, discretion,
ethical etc. (Neck and
Corbett, 2018)
HR manager provides effective well
trained and high skilled employees to
Vitabiotics Ltd which impacts in
improving productivity in business
operation for company.
4. Marketing plan
Analysing marketing plan in aspect of Vitabiotics Ltd is being determined as below- Product- Vitabiotics Ltd has introduced a new product to improve immunity in men,
women, children etc. Company has innovated a product made up of organic products
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which contain vitamin c, a, d,zinc, potassium, iron etc. which are beneficial to build
immunity power in order to deal and defeat coronavirus (Vitabiotics Ltd. 2022). Price- Vitabiotics Ltd has decided a price of its products by adopting competitive pricing
strategy in which company decides price of its products low from its competitive firms. Promotional mix- Vitabiotics Ltd is adopting various marketing tools specially digital
marketing tools in order to promote and target more audience to provide benefits as well
as generate more profits for long run.
 Place- Vitabiotics Ltd is adopting intensive distribution strategy in order to assure
availability of its products in market. In intensive distribution strategy, Vitabiotics Ltd
puts its products to various retailers, distributors shops with objective to reach maximum
customers.
5. Financial Plan
Business organisation adopts various sources of funds in order to continue its business
operations in post pandemic scenario (Morozova, Popkova and Litvinova, 2019). Determining
various sources of funds in aspect of Vitabiotics Ltd are as below- Personal investment- Vitabiotics Ltd has invested its own share of assets in business to
develop its products in order to provide maximum satisfaction to its customers.
 Business angels- Vitabiotics Ltd has provided a particular number of shares to people
who invest in business operations while having knowledge about business operations and
management.
Start Up Costs
Equipments £ 46 thousand
Materials £ 4.5 thousand
Rent (2 months) £ 2.1 thousand
Site Modification £ 5.0 thousand
Sanction and Legalities £ 1.0 thousand
Consultation £ 1.0 thousand
Supplies £ 0.6 thousand
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Cash Reserves £ 9.8 thousand
Total Costs £ 70 thousand
Financial Structure:
Month 1 Month 2 Month 3 Month 4 Month 5
Revenues
Total Revenues £36000 £79372 £87500 £96460 £106338
Expenses & Costs
Cost of goods sold £6480 £14287 £15750 £17362 £19140
Lease £5000 £5125 £5253 £5384 £5519
Marketing £1000 £800 £800 £800 £800
Salaries £15701 £21403 £23596 £24776 £26015
Initial expenditure £10,000 £0 £0 £0 £0
Total Expenses &
Costs £29181 £41615 £45400 £48324 £51475
EBITDA £6818 £37757 £42100 £48136 £54862
Depreciation £2716 £2716 £2716 £2716 £2716
EBIT £4102 £35041 £39384 £45420 £52146
Interest £2346 £2052 £1759 £1466 £1173
PRETAX
INCOME £17568 £32988 £37624 £43954 £50973
Net Operating Loss £0 £0 £0 £0 £0
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Month 1 Month 2 Month 3 Month 4 Month 5
Use of Net Operating
Loss £0 £0 £0 £0 £0
Taxable Income £17563 £32988 £37624 £43954 £50973
Income Tax Expense £6147 £11546 £13168 £15384 £17840
NET INCOME £11416 £21442 £24456 £28570 £33132
CONCLUSION
As per the above report it is concluded that business management is a process of
managing business activities of by monitoring, evaluating, analysing it business processes in
order to sustain in market. Porter's five forces is a frameworks used to analyse competitiveness
environment for a business organisation. Operations plan is a procedure of planning, developing
strategic goals as well as objectives to technical goals.
REFERENCES
Books and Journals:
Hanák, R. and Grežo, M., 2020. The effect of entrepreneurial experience on the quality of a
business plan proposal in applying for angel investment. International Journal of
Entrepreneurial Venturing. 12(6). pp.617-647.
Katz, J. A., 2018. The business plan: reports of its death have been greatly exaggerated.
In Annals of Entrepreneurship Education and Pedagogy–2018. Edward Elgar
Publishing.
Kuratko, D. F. and Morris, M. H., 2018. Examining the future trajectory of
entrepreneurship. Journal of Small Business Management. 56(1). pp.11-23.
Mariani, G., Bartoloni, L. and Morelli, D., 2019. Managing uncertainty in the start-up
environment: is a business plan an incentive or a limitation?. Managing uncertainty in
the start-up environment: is a business plan an incentive or a limitation?, pp.73-96.
Masciocchi, B., 2020. How to make a business plan. In Studies in Surface Science and
Catalysis (Vol. 179, pp. 465-484). Elsevier.
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