Business Proposal

Question: What is the Main Aim of a Business Proposal ? Answer : Introducation Summer Flavours is the company which started its new business of flavoured water. The company is seeking for the funds of $100000 and it already has funds of $100000. The company wants to target the people who are conscious about their health and want an alternative to the fizzy drinks and other drinks which provides harm to their health. The business proposal contains the mission of the business, the details about the products offered by Summer Flavours, analysis of the industry by doing PESTEL analysis, analysis of competitors of the product and brand and by assessing the risks it could face because of market conditions, existing brands, etc. The financial plan of the company provides details about the financial needs and the further plans of the company. The marketing mix is also discussed so that the further strategies can be made by the company (Freed, et. al., 2013). Mission Summer Flavours is a favoured water brand which has the main mission to prove and fuel peoples life with healthy and tasty flavoured water which detox the body and keep their healthy lifestyle. It has main aim to provide quality products to the customers (Chang, 2016). Product offering The products of summer flavours are available categorized in 6 flavours at present but the company is planning to bring more flavours and products like fruit candies in the future. The flavours which are already planned are: Lemon Kiwi Strawberry water melon Orange Cucumber- Mint Market analysis Market analysis is the study to check the attractiveness of market for the product or brand. It is very important when a company starts its venture because it provides a blueprint of what the business needs to do ahead. It helps in attracting the investors, remove the hurdles and attract the customers. Industry analysis Industry analysis is a technique which helps in studying the particular industry and to assess the current business environment. This may be used by the company to gain competitive edge in the markets. It can be done through tools like PESTEL analysis or Porters Five Forces model (Sun, et. al., 2014). The industry analysis of Summer Flavours in Australia is given below: Political factors: These factors are related to the political decisions taken by the government. It can be the support received by the government to start-ups can support the operations. The labour laws and environment protection laws have to be considered (Kotler Keller, 2014). Economic factors: The employment rate, inflation rate and purchasing power of people might affect the companys business. It might also include the impact of globalisation and the competition from other brands. The increase or decrease of the prices of raw materials might hamper or support the business respectively. Socio cultural factors: the trends in the society, health of population, social attitudes of people might affect or support the business of flavoured water. The increasing trend of being health conscious may impress people to use flavoured water instead of soda or alcohol (Zacharakis, et. al., 2011). Technological: the emerging technologies like internet might increase the business of Summer Flavours. It helps in communicating with customers and others stakeholders involving low costs. UK is rich in technology so Summer Flavours will have efficient technology to prepare the flavoured water for the people. Environmental factors: Summer Flavours has to take care of all environmental laws which are made by the UK government (Kotler, 2013). Legal factors: Summer Flavours have to pay the taxes decided by the government of Australia. Competition Summer Flavours will have to face competition with the fizzy drinks and bottled water. There are other brands of flavoured water in Australia which are doing well. So, Summer Flavours will have to face competition from these brands like Aqua Pure, Life, Pump, Tesco, Minute maid, etc. Primary Target market The primary target market of Summer Flavours is the part of the whole population who wants to intake fresh and healthy water rather than fizzy drinks, tea, coffee or alcohol. The business will have to consider the basis of demographics, psychographics and behaviour for deciding the target market of the business (Fifield, 2012). Basis Description Demographics People aged between 15-60 years People who are concerned for health and need taste. Psychographics Good and healthy lifestyle Positive attitude of consumers towards flavoured water Behaviour People who seek healthy and tasty drink for consumption. The diet and practices of consumers (Ferrell Hartline, 2008) Marketing Product: The products of Summer Flavours are developed and prepared by using water, fruits and then it is refrigerated to bring a pure and fresh taste. It is planned that it will be available in 6 flavours in the beginning but then new flavours and fruit candies will be offered by the company. These products are healthy, fresh and have good taste for people (Londhe, 2014) b) Pricing: The prices of flavoured water cannot be set high because the customers will then prefer other drinks instead of flavoured water. So, the prices set are market based which covers the cost of the product (Luan Sudhir, 2010). c) Distribution: The flavoured water will be made available in different shops, outlets and kiosks by the brand on public places like markets, stations and offices/ colleges where people need more water to meet their thirst. Summer Flavours is planning to develop a smartphone application on which orders can be taken and the product is delivered at the doorstep of the customers. The products are also placed in the retail shops and supermarkets where people can notice the new product and make an attempt to purchase it (Borden, 2011). d) Promotion: The products of Summer Flavours will be advertised through social media, internet and the advertisements in health and fitness magazines and newspapers to make people aware about the new brand. The one page mock advertisement is given below: Financial plan The financial plan includes the use of funds for the initial set up of company for the first financial year. The company already have capital of $100000 and it is seeking for the funds of $100000. The company might get these funds from government loans or personal borrowings. For setting up a new business of flavoured water, the Summer Flavours is required to build up a financial plan which is given below: Expenses (set up) First year expenses in $ Research expenses $20000 Marketing expenses $20000 Consultants $30000 Rent of production area $10000 Expenses of purchasing kiosks $6000 Insurance $4000 Stationary $2000 Legal expenses $18000 Equipments and machinery for making flavoured water $50000 Cash and working capital requirements $40000 Total requirements $200000 (McAdam, 2013). Critical risks The critical risks to the business of Summer Flavours may be: The business of flavoured water which already exists in the market and is doing well like Aqua Pure and Minute maid. The increase in the consumption of fizzy drinks and the drinks containing alcohol The claims by the food inspectors that the flavoured water contains more sugar content which ruins the health of population (Ciucescu, 2016). Conclusion It can be concluded that Summer Flavours is a proposed business plan for flavoured water in Sydney and in other parts of Australia as well through internet. The business aims at providing healthy and tasty drinking water to the customers so that they can main healthy lifestyle. The products offered by the business are in various flavours and the business plans to develop more projects in future. Market analysis has been done along with the competitor analysis to know how the business has to operate in the industry. The primary target market of flavoured water is the people of Sydney who really want to adopt healthy lifestyle and have fresh water with the taste of fruits. Marketing mix has been done to help the business in making future strategic plans for the business References Blythe, J., 2013, Principles and practice of marketing. . Sage. Borden, N. H., 2011, The Concept of the Marketing Mix". In Schwartz, George. Science in marketing. Wiley marketing series. Chang, M. 2016, "Entrepreneurship your business plan",IEEE Engineering Management Review,vol. 44, no. 1, pp. 21-23. Ciucescu, N. 2016, "BUSINESS PLAN - MANAGEMENT TOOL OF THE ENTREPRENEUR",Studies and Scientific Researches: Economics Edition, Ferrell, O.C. Hartline, M.D. 2008,Marketing strategy,4e []. edn, Thomson South-Western, Mason, OH. Fifield, P. 2012;1998;,Marketing Strategy,2nd;2; edn, Taylor and Francis, Saint Louis. Freed, R.C., Freed, S. Romano, J.D. 2011;2013;,Writing winning business proposals,3rd edn, McGraw-Hill, New York. Kotler, P., Keller, K., 2014, Marketing and Management,. , USA: Pearson Prentice Hall. Kotler, P., 2013, Principles of Marketing. Pearson Education Limited. Lavinsky, D. 2013, Marketing Plan Template: Exactly What To Include. Forbes. Londhe, B.R. 2014, "Marketing Mix for Next Generation Marketing",Procedia Economics and Finance,vol. 11, pp. 335-340. Luan, Y.J. Sudhir, K. 2010, "Forecasting Marketing-Mix Responsiveness for New Products",Journal of Marketing Research,vol. 47, no. 3, pp. 444-457. McAdam, J. 2013,The One-Hour Business Plan: The Simple and Practical Way to Start Anything New,John Wiley Sons Inc, US. Sun, Y., Guo, P., Ma, Z., Li, T. Dang, S. 2014, "UK-based external business environment analysis of outdoor adventure clothing using the PESTEL tool and its future outlook", IEEE, , pp. 306. Business Proposal Question: What is the main aim of a business proposal? Answer: The business proposal aims to set up a candle shops in different cities of New Zealand. Candle business can be profitable if the environmental factors that affect the business are taken into consideration. An in-depth research study can identify these factors and their effect on the business performance, the target market, expected sales revenue and profitability for the business. The research procedure and the analysis of the results have been outlines in the report. Introduction About me I am _(your name)_ and I have worked in the marketing line and as a location and budget consultant for two private firms and have an intensive experience in New Zealand and New Zealand. I have had an experience of three years in this field and had attained the expertise from my teams leader back then through which I got the inspiration of bringing the candle business to New Zealand. Skills, Experience, and Qualifications I have an advance level skill set in communication skills, management (primarily related to retail and marketing management) and have had an experience of five years studying, training and on the field jobs I did my management from the (your college) and after that had a diploma from a private university for marketing practices. More than my studies, I have been inclined towards the knowledge I gained from on the field jobs and had helped in setting up more than 50 stores for the two firms, and most of the shops are blooming right now. Strengths Able to entrust the clients comfortably Assess the marketplace diligently Able to work with a team without being bossy The idea The business proposal is about setting up various candle shops in New Zealand at the main city centres of 3 4cities such as Wellington, Auckland, Hamilton and Napier. The idea is to establish the stores along with the in-house manufacturing facility near the commercial centre on Emerson Street of Napier. This area is highly populated with restaurants, eateries, cafs and various retail outlets. City Centre of Napier is a suitable administrative centre to set up a new business, and it also has the potential to attract a large footfall as the competition in the locality is not much in this niche industry. If marketed properly, the candle shop can turn out to be one major crowd-puller. The proposal reflects upon the concept and focuses on the strategic objectives of the business and tools to achieve the same. Commercial manufacturing of candles can be a niche profit making business. In a developed nation such as New Zealand, the energy sector is well-developed, and the primary focus is on fossil fuel (New Zealand Energy Regulator, 2015). Though the lower middle class or economically deprived sections still can be drawn towards purchasing candles as a low-cost source of energy. On the other hand, colourful and scented candles can be projected to the upper socio-economic segments as a decorative item to enhance the interior beauty of a home. Custom-shaped candles (shaped like special characters or animals), candles designed for the use in churches, candles with embedded jewellery, unity candles (for the purpose of the wedding) are the variants that the business can include in its portfolio of offerings in a developed market (Larkin, n.d.). Research and data collection The data which was recorded during the study is required to be processed. Then several data mining tools techniques will be necessary for predicting the result of this survey and then draw out analysis. The personal information is required to be kept confidential out of the complete information collected for protecting persons privacy. This will include Age group Name Location Gender Latest qualification Family income Along with the age database, household income and latest requirement, which are essential for evaluating the socio-economic position of the person, the remaining data will be required for convenience and identity. In the following sections, questions can be asked soliciting information on the willingness to purchase candles and the regular sources of energy that the respondent or his family or the business are dependent upon. This section will include Whether the region has electricity coverage Whether there is frequent and lengthy power cut in the household or the business What are the alternative sources of energy used (such as inverters, power generators or candles) The annual maintenance cost of the alternate source of energy Whether candles are more environment-friendly in comparison with other alternatives Whether the features added (scent, colour, etc.) are compelling enough for the purchase decision to be favourable As per the given parameters, some cross-tabulation (Virginia Tech, 1999) can be carried out Cross-tabulation of sample data (prepared as a mock analysis) Willingness to purchase candles Total Income Group Yes No Mid-Income Group 1000 1250 2250 Low-Income Group 1750 2000 3750 Total 2750 3250 6000 Correlation analysis of interval data (Boston University School of Public Health, 2013)and chi-square tests(StatTrek, 2016) for nominal and ordinal data can be computed between the attributes and variables to figure out whether there is any correlation between them or not. Statistical measures of central tendency (Laerd Statistics, 2013) such as mean, median and mode of the age of people prepared to buy the candles can be computed. One can also estimate the total annual sales revenue through proper estimation techniques on the response given by the potential customers on a willingness to purchase candles "definitely yes, probably yes, indifferent, "probably no" and "definitely no." The sample statistic can be estimated for the entire population with suitable estimation techniques. Competition and market Organization Differences Our candle start-up We will focus on every section of society with a different range of candles for various purposes; promotion will be bang on target through every social and paper media. Some retail stores after initial 3months Golden Glow Candles Offer both wholesale and retail pricing structures but they lack good promotion and pricing, and the retail stores are limited Candle manufacturer.com contract manufacturer, good and superior quality, provide custom designs, fragrance candles for vivid markets but do not focus on the middle and lower class New Zealand people and Australia Price product We will keep our prices starting for the necessary birthday candles at $1.5, and it will range till $9 for a pack of two for the smokeless candles. The lotus scented and other scented candles will be available at $7. This is a price much lower than our competitors although we will soon upgrade our prices once we settle our business in a proper manner Products Most of our products are similar to our competitors, but we have introduced the products under different and transparent segments The products will include Basic candles Scented candles Personalized candles Smokeless candles Hanging candle showpieces Long burning candles Promotion We will distribute pamphlets in the various bakery and cookie shops as these stores attract the typical customers. Secondly, we will use the social media for promoting our new start-up in an emphatic manner and especially as per the festival seasons; we will introduce an exclusive line of our candles. Now the following table is our proposed promotional budget 2016 September October November Pamphlets $800 $600 $600 Social Media $600 $600 $500 Telecom Yellow Pages - $400 $400 Contacting bakery and similar stores for promotion $200 $100 $100 Total $1600 $1700 $1600 Sub total $4,900 Goals and our basic plan For reaching a deterministic conclusion, the research goals can be simplified into following objectives Determine the external and internal factors that may affect the business Identify the target market for the firm and the market penetration level on a yearly basis Estimate the annual sales revenue through sampling and market testing of the product prototype Carry out a profitability analysis subject to various factors (sensitivity analysis) that affect the business Our primary planning would be like this Financial forecast Conclusion The alternative sources of energy are far more attractive and affordable as well since the disposable income of people in New Zealand is higher. Though there are favourable conditions that can result in higher sales of candles. The research data need to be analysed with complex analytical tools to figure out the potential trends and estimated profitability analysis for the business to grow in the first five years. This paper would be enough for proving our credibility for this business. References New Zealandn Energy Regulator, 2015. State of the energy market 2015, l.: New Zealandn Energy Regulator. Boston University School of Public Health, 2013. Introduction to Correlation and Regression Analysis. [Online] Available at: https://sphweb.bumc.bu.edu/otlt/MPH-Modules/BS/BS704_Multivariable/BS704_Multivariable5.html[Accessed 13 May 2016]. Fryrear, A., 2015. Survey Response Rates. [Online] Available at: https://www.surveygizmo.com/survey-blog/survey-response-rates/[Accessed 13 May 2016]. Laerd Statistics, 2013. Measures of Central Tendency. [Online] Available at: https://statistics.laerd.com/statistical-guides/measures-central-tendency-mean-mode-median.php[Accessed 13 May 2016]. Larkin, K., n.d. Candle Making Business Start-Up Guide. [Online] Available at: https://candles.lovetoknow.com/Candle_Making_Business[Accessed 13 May 2016]. Smith, S., 2013. Determining Sample Size: How to Ensure You Get the Correct Sample Size. [Online] Available at: https://www.qualtrics.com/blog/determining-sample-size/[Accessed 5 May 2016]. Society for Each Other, 2009. Candle Making Program. [Online] Available at: https://www.seonepal.org.np/index.php?action=contents/candlemaking[Accessed 9 May 2016]. StatTrek, 2016. Chi-Square Test for Independence. [Online] Available at: https://stattrek.com/chi-square-test/independence.aspx?Tutorial=AP[Accessed 13 May 2016]. StatTrek, 2016. CLuster Sampling. [Online] Available at: https://stattrek.com/survey-research/cluster-sampling.aspx?Tutorial=Stat[Accessed 13 May 2016]. Virginia Tech, 1999. Crosstabulations: Statistical Significance of the Relationship Between Two or More Catagorical Variables. [Online] Available at: https://simon.cs.vt.edu/SoSci/converted/XTabs/[Accessed 13 May 2016]. Weisstein, E., 2016. Hypothesis Testing. [Online] Available at: https://mathworld.wolfram.com/HypothesisTesting.html[Accessed 13 May 2016]. Yale University, 2016. Confidence Intervals. [Online] Available at: https://www.stat.yale.edu/Courses/1997-98/101/confint.htm[Accessed 13 May 2016].