5. BUSINESS PLAN
5.1 Approaches to deliver the business model
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4.5 Partnership Network
In the section 2.2.5, it is described who is involved with BhanchaGhar. Actually, it is a sole proprietorship business, where, 60% of financial support will come from bank loan. So, if their occurred any loses in the business, firstly it should meet up the bank loan, then remaining would go to the proprietor.
4.6 Value Deliverables to the Customers
Functional: providing marketing campaign, visit of in-store, online or offline marketing, introduction of technology based new promotional methods (Osterwalder, Pigneur and Clark, 2010).
Emotional: delivering products at desired destination in a prompt manner, and serving 24 hours seven days.
Competitive: competitive strategy of BhanchaGhar cost leadership in nature
Price: Pricing strategy would be competitive and reasonable comparing with others in the industry
Ethics: BhanchaGhar uses different utensils for the cooking utensils of vegetarians & non vegetarians. Religious beliefs are also considered. Local raw materials are used in order to support the local economy (Pinson, 2008).
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rising after 2007 (Tagetik.com, 2014). Bartholdi Ltd, Cauldron Foods Ltd, Chesswood Foods, COOK Ready Meals, Creative Foods, Quattro Foods Limited, Crispy Snacks Ltd, Dalepak Foods, S&L Catering Limited, DelishDish Foods, Dragonfly Foods, Gluten Free Foods Ltd, Goodlife Foods Ltd, Kettleby Foods, Lodge Farm Kitchen etc. are the major competitor that dominating the market. However, ready meal is now a growing market. And in this industry competition is very high where the many companies are doing the business with almost same competitive advantage (Pinson, 2008). Companies’ policies like product penetration, new product development, diversification or new customer development for the business may bring success of them.
It is decided to establish a ready meal business by considering on the future prosperity of this market named as “BhanchaGhar”. This business will provide best quality of food to the UK people in their home as they want. To establish a brand name it will increase number of order in the local market. This can be happen through providing improved services to its target market by developing its employees through the proper training as well as proper motivation. Local Nepalese and Indian wholesaler will provide raw materials. And in London the food development centre will be established.
However, BhanchaGhar will provide the product lines of ready meal of Nepalese Cuisine as well as Japanese, Chinese and Other Asian foods. it is planning to provide four items to its customers, such as, BhanchaGhar Dry Meat Curry, BhanchaGhar Chicken Curry, BhanchaGhar Dumpling and BhanchaGhar Frozen foods. It will provide its products in the UK market by conducting local small and medium sized stores (Tagetik.com, 2014).
5.1.2 Key to Success
BhanchaGhar creates differentiation from other business through providing various ready meals of Nepalese, Japanese, Chinese and Other Asian foods in the UK market. By his way people can get various tastes of foods.
The main focus of this business is to delivering quality and healthy foods.
They provide various items of foods with rationale price in this competitive market.
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Again, BhanchaGhar offers its services to its customers throughout 24 hours seven days in a prompt manner. In this concept, it decided to have a good distribution channel to provide services its customers.
Having expertise in each of the segments of business, such as, finance, production, marketing, human resource management etc. (Swedroe, Grogan and Lim, 2010).
5.1.3 Market
The ready meal market of the UK is highly demand able market. Here, the customers prefer the ready meal as the number of the single family is increasing and most of the citizens of UK are too busy to make their foods at home. Henceforth the fast food industry is not preferable due to the risk of health. Due to this causes the overall market consumption is rising. In this market, the chilled ready meals are considered 50% of the total market. Basically, customers prefer the flavor of the foods in which, new recipes and items inspired by various ethnic cuisines are being launched into the market (Taylor, Gartside and Taylor, 2004). As a demand able market it requires some changes. Here, most of the customers disagreed with the effectiveness of the market and they think the market should be developed more. Again, customers in the ready meal market want more quality foods and items from the market.
However, considering the market feasibility of BhanchaGhar, providing in the section 3.4.3, it is found that, the ready meal industry is more perfect for the high income level customers and the male customers prefer the ready meal foods more where the female customers prefer the home made meal. So, target market of BhanchaGhar is male customers’ and also customers belong to higher income level. In this case, competitive strategy of BhanchaGhar is to be cost leader, which is, providing broad categories of ready meal with a reasonable price (Swedroe, Grogan and Lim, 2010).
5.1.4 Marketing Plan
In order to get success from the inception, it is important for BhanchaGhar to adopt a successful marketing plan. There are different marketing approaches to adopt the awareness of customers, for example, word of mouth strategy, in store visiting, advertisement in newspapers, website reviews, marketing campaign, online and offline marketing etc. However, from the
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recommendation of customers BhanchaGhar decided these following approaches (Taylor, Gartside and Taylor, 2004) in order to create awareness of its customers:
Marketing campaign
Word of mouth marketing
Visit of in-store
Online marketing
Offline marketing
FIGURE 21: CHOSEN SOURCES OF RECOMMENDATION TO SELECT THE READY MEAL
Source: made by Author
Here, by dealing with marketing campaign the company can get chance to show its products to targeted customers. And based on this customer can find out the differences and may decide whether to go or switching this business’s products.
Again, most of the people rely on the word of their nearest and dearest ones(Taylor and Gartside, 1998). It is important to keep happy customers to increase the business that may provide appreciated words to others. As word of mouth publicity is a trustworthy source of information for the higher socio-economic group, which is also an important marketing tool.
0 10 20 30 40 50 60 70 80 90
Very insignificant Insignificant Neutral Significant Very significant
No. of people chosen
friends Family Advertisements in newspapers
Offline promotions In store visiting Internet promotions
food blogs Newspapers reviews Food websites reviews
Marketing campaign Others
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In store marketing is marketing tool where BhanchaGhar will distribute brochures in the local store to distribute its target market, which may create awareness to its customers.
BhanchaGhar will develop a website that provides entire information of its product lines, which may play an important role to make customer awareness in this techno based world.
Advertisement in local newspapers, newspaper reviews etc. are also some marketing options of BhanchaGhar. But these are not initially practicing because of the cost (Taylor, Gartside and Taylor, 2004).
5.1.5 Design and Development Plan
The following table represents time schedule of this business plan, which provides the planning and execution of the business plan from its beginning to end:
TABLE 10: SCHEDULE OF BUSINESS PLAN
Sl.
No.
Name of the activity
Bi-week
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 1. Idea generation
2. Preparation of business plan 3. Secondary
research 4. Primary research 5. Research
assessment 6. Risk
identification 7. Risk analysis 8. Risk mitigation 9. Waiting for
loan approval
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approval from the authority 11. Taking house
rent
12. Coordination of required
equipment 13. Local
distributor selection 14. Recruitment 15. Utility setup 16. Employee
training 17. Inauguration
From the above mentioned schedule, it is found that the business plan of BhanchaGhar will be launched within 10 months if there is no interruption or occurrence of any unexpected situation.
5.1.6 Management Team
BhanchaGhar is a sole proprietorship business, where the owner controlled his business as well as enjoyed entire profit or loss.
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FIGURE 22: ORGANIZATIONAL STRUCTURE OF BHANCHAGHAR
In order to get success in this business the owner hired some specialist of each business segment (Young, 2007). At the same time it is needed some employees to operate the business, such as, employees required for cooking, raw material collector, managing the business, delivery of products, marketing, consulting with customers etc.
Here, the key personnel are mainly chefs based on which quality of products can be updated, sales and marketing employees from which customer get knowledge about the product and distributor and deliverer who are responsible for providing the ultimate services to its customers.
5.1.7 Operations Plan
Supply Chain Management
In order to make purchases BhanchaGhar will use electronic data exchange (EDI) system. This system allows keeping entire records from purchase to sale. Category wise (BhanchaGhar Dry Meat Curry, BhanchaGhar Chicken Curry, BhanchaGhar Dumpling and BhanchaGhar Frozen
OWNER
General Manager
Assistant Manager Production
Manager Employee
1
Employee 2
Sales
&Marketin g Manager Employee
1
Employee 2
Employee 3 Finance Manager
Account
Manager Human Resource Manager
Supply Chain Manager
Employee 1 Employee
2 Employee
3 Financial
Advisor
Marketing Advisr
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foods) all purchases are sorting out. In order to lessen the cost of sales, raw materials are purchased from local Nepalese and Indian wholesaler. After the delivery of goods, production manager would confirm the cross checks. Then these required materials are putted in the EDI system and then the next order would take place. In order to set up the entire EDI system, BhanchaGhar needs four components, such as, EDI software to translate information, EDI mapping for synchronizing with the system of customers, EDI VAN required to continue the flow of transactions, EDI support and maintenance services (Finch, 2010).
Operating Process
Operating process of a business is very useful to regulate its entire activities (Young, 2007). The operating process of BhanchaGhar is very simple that standardize entire activities’ courses of action. Its operating process can be easily figure out from its organizational structure. However, from the inception of this process, by using phone call, mail order, and company’s website etc. a customer can make order. The order details are filled up by the sales and marketing department.
Then to verify the payment, it sends to the account department. Customer will be informed in case of invalid payment. The sale order copy is sent to the production department also. After receiving the sale order form by the production department, production process would start.
While production done, it would be passed to the supply chain department. Production process is included with the utilization of capital and packaging. Production department keep record of inventory. In order to keep record of inventory level, manual index system is used. In case of additional requirements of inventory, purchase order form is send to the supply chain (Finch, 2010). However, ensure of quality of the product and innovation of new ideas are comes from the product development centre. And product deliveries as well as purchase of raw materials are maintained by the supply chain manager. By defining the process of operation BhanchaGhar may lessen its risks of failure.
Equipment
To operate the ready meal business of BhanchaGhar it is required some equipment in kitchen, as well as packaging purposes. For storage purposes required food-grade shelving, chest, walk-in freezers, standard- or blast freezers; chopping, dicing, cubing, peeling, slicing, mixing and processing equipments etc. are needed for preparation of foods; in order to cook, stock pot and wok ranges, deep fryers, broilers, salamanders and cheesemelters, ovens, griddles, frying pans,
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gas and toasters etc.; electronic thermostats, energy load levellers, automatic shut off switches etc. accessories are also required. Some materials are needed for packaging purposes also.