Advertising Rates
The media fix their advertising rates according to the size of their audience and its age and social profiles. The rates are highly negotiable depending on numerous factors including possible large discounts. Here are some examples of 2003 rates:
Another means of identification used in advertising is 'social grade'. This is a classification based on the occupation of the head of the household, and it indicates the household's spending power. The table below shows the special grades, the occupation to which they refer, and the approximate proportions of each grade in the total UK population:
A Higher managerial, administrative and professional 2.8%
B Intermediate managerial, administrative and professional 18.6%
C1 Supervisory or clerical and junior managerial, administrative and professional 27.5%
C2 Skilled manual 22.1%
D Semi-skilled and unskilled manual 17.6%
E State pensioners or widows (no other earnings), casual or lowest-grade workers 11.4%
So if you wanted to advertise say, an expensive but sporty car, you would look for a newspaper or magazine with a high readership of fairly rich 24 - 35 year-olds - in other words, an AB readership aged 24-35. Naturally, you would be 'buying' some other readers as well, because there are plenty of younger and older people, and plenty of C1s, C2s and Ds, who like to read about expensive cars even if they can never afford one. But then those younger people will get older, and some of the C1s, C2s and Ds may get promotion to the point where they can afford your car. Age and social grade classifications do not work precisely but they help the advertiser to get reasonably close to the audience
I have also been able to get some information on the facts and figures on advertising figures to use. This information as it shows me, which forms of advertising are the best ones to use. This information shows me where the most money was spent on advertising. It showed me that the three main advertisements where the most money was spent on were television, national newspapers and regional newspapers. So therefore this is useful so I can therefore later on apply this to my marketing strategy where I have to decide on the type of promotion I am going to use. This is shown in the appendices 1.
Also later on it shows which newspaper would be the best one to use. Looking at this data the tabloid newspapers are the most popular e.g. the sun. This also shows me which channel would be the best one to use on television.
Primary Research
From the research I conducted, I found out that the majority of the customers would be interested in the new exotic drink (Shave Ice). The sixteen out of twenty people who answered the questionnaire stated that they would be interested and would introduce the new drink to their child/children. They were also “comfortable” with paying a price of between £2 and £3.50 for a large sized Shave Ice.
The people who answered the questions also thought that there is a demand for new drinks. They thought that common drinks such as Coke and Sprite were “boring”, and would be interested in trying the Shave Ice drink.
I also asked the customers how they would launch a new product. The answers that kept on cropping up were via Internet and also the Television. They thought that posters and fliers was also a reliable source of promoting the product.
Amongst the people who answered the questions, fourteen of them could remember a “catchy” advertisement pretty well. Others said they would remember it, if it was colourful and humorous, and had a “Pun” like slogan or title.
Main Competitors
Main competitors include the Sol Dos, Billy Joe’s Market, and La Perla. The following are strengths and weaknesses of each.
Sol Dos
-
Strengths: The main strength of Sol Dos is that it is the only business in Hounslow that caters to the sno-cone market. It also has very reasonable prices.
-
Weaknesses: The primary weakness of Sol Dos is that it does not sell shave ice but rather sno-cones made from very coarse ice. Syrups are also not of good quality.
Billy Joe’s Market
-
Strengths: The main strength of sno-cones sold by Billy Joe’s Market is their low price of £1.00 and the convenience to the shopper in buying sno-cones while doing their shopping.
-
Weaknesses: The main weakness of sno-cones sold by Billy Joe’s Market is that they do not sell quality syrups and prefer to sell the more inexpensive brand with lower quality taste.
La Perla
-
Strengths: Main strength of sno-cones sold by La Perla is the convenience to the shopper and low price.
-
Weaknesses: La Perla's weakness, like Billy Joe’s Market, is that they do not sell quality syrups. Also, the sno-cone business is not their primary focus or product.
Competition and Buying Patterns
The shave ice business will be new to Hounslow. Competitors in this type of business primarily sell raspados or sno-cones and do not focus on the shave ice market. One major competitor is the "Sol Dos" located on Clapham High Street. Sol Dos sells sno-cones through a small, one-person trailer with limited choices of syrups. Other competitors sell sno-cones through Billy Joe's Market and the La Perla store which also have limited syrup selections and do not necessarily focus on the sno-cone or shave ice industry as their primary product.
The keys to success will definitely focus on selling shave ice and not sno-cones made with coarse ice and selling high quality syrups. Prices will also be competitive with those of the competition.
(E2) in the market plan, describe and explain the choice of product/service, the price(s) of the product/service and how the product/service will be distributed to/provided for customers)
Market Analysis Summary
London is geographically situated at the junction of major east west and north-south transportation routes. London is also referred to, as the "Centre of opportunity". Hounslow is accessible via Dual carriageway and the Motorway (M25), where Ice Dreams will be located.
Shave ice is an ideal business for Hounslow given the potential market segment, location, and climate. Utilising averaged priced unit’s (£1.25) for shave ice and other products to be sold, the shave ice business has the potential market of £104,446 gross sales by the third year of operation.
Marketing Strategy
Ice Dream's overall marketing strategy will be to create an image of offering the highest quality shave ice. The business will be located in a high traffic area of Hounslow. Customers will be reached through advertisements such as fliers, newspaper ads, and through its grand opening ceremonies. A special marketing program will also be incorporated by offering special coupon prices for nearby restaurants, motels, city pool, the burger stands, and the petrol station to customers who purchase any product at Ice Dreams.
Market Segmentation
According to Advertising Age (September 1995), premium ice cream and frozen yoghurt products are losing market share to mid-priced and other frozen dessert products. Information Resources reported that frozen ice products comprised a third of the £2.4 billion ice cream category for the year ending May 21, 1995, generating £717.7 million, up 9.3% from the previous year.
Based on this information, it is anticipated that the frozen dessert market can be divided into two customer segments. The first segment prefers premium ice cream and frozen yoghurt products. The other segment obviously includes those that prefer frozen ice products. Shave ice products are ideal for today's health-conscious consumers. They boast no fat, no cholesterol, and are relatively low in calories.
Ice Dreams will target all segments of Hounslow's population: children, teenagers, and adults. The Hispanic population will be of special interest since it comprises 65% of Hounslow's total population. This population will be targeted with Mexican flavoured syrups and licuados.
Strategy and Implementation Summary
Ice Dreams is planning for slow growth by expanding flavours available from 20 to 30 in year two of operation. Also, an additional product to be sold in year two will include ice cream in flavours of vanilla and chocolate.
Pricing Strategy
Shave ice will be offered at the following prices:
- Small 1.00
- Medium 1.25
- Large 1.50
Soft Drinks
Licuados
Promotion Strategy
Ice Dreams will promote shave ice to customers by:
- Flier distribution to consumers' homes within a five-mile radius.
- Newspaper advertisements will be purchased during the first three months of business until a clientele is built.
- Ice Dreams will offer discounts to recreational groups such as children/adult Cricket and football teams who play in nearby facilities.
- Promoting products for an introductory price at its Grand Opening.
- Ice Dreams will "adopt a school" and provide shave ice to individuals who are selected for having excellent attendance, good grades, and good citizenship. Other incentives will include sponsoring a good attendance program by purchasing a bike and raffling it to students with the best attendance. This will be a promotional strategy to encourage business.
Market Research
One of the best known shave ice businesses is Sno Biz Shave Ice under the parent company of Crystal Fresh, Inc. Dealerships such as Sno Biz have demonstrated the success and feasibility of selling shave ice. The Sno Biz dealership has been in existence for the last 11 years with over 3,000 individual dealerships throughout the United States. Sno Biz syrup products are also sold in La Perla throughout the country. While no Sno Biz dealership currently exists in London, Sno Biz products are sold at the Zoo, and at Lion Country Safari. The potential success for selling shave ice is attributed to the following:
- Compared to other food service products, Ice Dreams will be a relatively simple business to operate.
- Shave ice is similar to a Mexican favourite called raspado, but because it is softer and tastier, it is preferred over raspados.
- Shave ice has a low food cost and is easy to prepare, which keeps speed-of-service at optimum levels to keep up with high-traffic volumes.
- Ice Dreams will be easy to maintain and clean.
- Shave ice is a product that has yielded a considerable profit in terms of cost to produce at £0.16.
- Shave ice is an ideal product for the health-conscious consumer.
Market research conducted in Hounslow did surface one raspado (sno-cone) business on a small scale called Sol Dos located on Clapham high Street. Snow Shack consists of a small trailer that accommodates only one employee. Sno-cones are sold in cups at prices ranging from £1.00 (small), £1.25 (medium) to £1.50 (large).
Sno-cones are sold at Billy Joe's Food Market and La Perla. Each sold sno-cones in one regular size at £1.00 each.
Research conducted in central London noted that the Sno Biz dealership only sells shave ice as their primary product. Shave ice units sold for £1.25 (small), £1.75 (medium) to £2.25 (large) per unit. In interviewing the current owner, he indicated that during his first year in business he was selling 200 units per day.
Research in Ealing, London revealed that shave ice is sold along with other products. Several businesses in west London sold shave ice with prices ranging from £1.79 (small), £1.99 (medium) and £2.39 (large). In terms of licuados, prices were £2.79 (regular) and £3.15 (large).
Research conducted in Honolulu, Hawaii; showed that in some locations, shave ice sold as high as £5.00 for a regular size. However, the majority of sno-cones were sold by the flavour and not necessarily by the size. For example, one flavour was £1.79, two flavours were £2.29, and three flavours sold for £2.79.
(E3) describe the production process for the product/service including how quality will be assured)
Product Description
One major product will be sold through Ice Dreams, which will include shave ice topped with tropical and Mexican flavoured syrups. Twenty different tropical and Mexican flavoured syrups will be sold and include the following:
Wild Watermelon, Pina Colada, Pink Lemonade, Guava Grape, Cherry Jubilee, Root Beer, Kiwi, Strawberry, Blue Bubble Gum, Orange Mango, Raspberry Red, Luscious Lime, Bodacious Banana, Tamarindo, Jamaica, Hortacha, Melon, Papaya, Manzana, and Lemon.
Other products will include soft drinks in three flavours: Coke, Diet-Coke, and Sprite, and licuados in three flavours (strawberry, banana and mango).
Main products to be sold through the Ice Dreams business will be shave ice topped with tropical and Mexican flavoured syrups in three main sizes: small, medium, and large. Other products will include three soft drinks (Sprite, Coke, and Diet-Coke), and licuados.
Quality will be assured to provide customers with low budget exotic drinks without too much trouble. There will be reliable suppliers who will supply the ingredients to Ice Dreams. Stock methods will be in progress to ensure that stock levels are at optimum at all times.
Another way of assuring quality will be to provide staff with training. This will include training on the Till, how to handle customers who may have a problem with the product and are not satisfied.
New recruit will also be trained to “cash up” at the end of the week/month. Methods of how to prepare the Shave Ice will be shown to new recruit, they will have to practice and ensure they are confident in preparing Shave ice.
Uniforms will also be implemented, this will ensure the quality of Ice Dreams, and will make the business look respectable and well thought off. There will be separate uniform for the staff working with customers, and for those in the kitchen.
The feedback, which will be provided from the questionnaire, will also be studied carefully to see where improvement can take place.
There will also be a suggestion box placed infront of the tills, this will allow customers to feel free, and write down how services or product can be improved.
(E4) effectively base the financial plan on a market analysis that identifies sources of finance and includes a budget, break-even analysis, cash flow forecast, projected profit and loss, and start-up balance sheet)
Sales Forecast
Consumer sales will start in January 2002(or sooner if construction is completed before the targeted date) with a grand opening anticipated by then. Sales and units costs for the first six months of 2002 are shown in the sales forecast as projected numbers. As indicated, primary sales will occur during the peak warm weather months as noted in the following chart and table.
Break-even Analysis
The following table and chart show the current break-even analysis. The operation will require sales of approximately £2,900 to break even during the first year of operation.
Start-up
Start-up costs will be approximately £52,010, which will include facility construction including sidewalks, parking, inventory, mandatory city permits, and other expenses associated with opening this business. The start-up costs will be financed through a loan. Appendix A provides more detailed information regarding permit requirements, equipment, construction costs, and land improvements required to open this new business.
(E5) describe the resources necessary to put the business plan into action)
The total cost to build the new site will cost approximately £53,000. This will be available from the banks. This figure covers the building materials, landscape etc.
Company Locations and Facilities
Ice Dreams will be located on the Dual carriage way in Hounslow, London, which experiences a high volume of traffic on a daily basis. According to a study by local council (Traffic Volumes, 1995), approximately 48,300 vehicles pass through this location on a daily basis making it an ideal location for business. The majority of traffic enters and exits via M25.
A 240 square foot drive-through facility will be built on a privately owned commercial property, which will also include parking facilities, landscaping, and a small sitting area. Other major businesses located on Dual carriage way include Carl's Jr., Roberto's Restaurant, La Fonda Restaurant, Raging Bull Restaurant, China Restaurant, Burger Stand, Steak House, Jet petrol station, Recreation Complex, and several motels.
Competitive Comparison
No other business in Hounslow specifically caters to the shaved ice market on a large scale. It is anticipated that prices will be competitive with other businesses that sell shave ice on a smaller basis.
Sales Literature
Sales literature to be distributed to the general community will include fliers, advertisement in the local newspaper and other print media.
Sourcing
Ice Dreams will purchase products from Crystal Fresh, Inc., which manufactures and distributes high-quality syrups and ice shavers. All equipment and supplies are available through a regional distributor. Mexican flavoured syrups will be purchased in Mexicali, Mexico.
Positioning Statement
Distribution of shave ice will be through the business facility only. It is anticipated that in the future, a small portable ice shaver will be purchased such that the product could be sold on site at various fund raising functions through churches, schools, etc.
Future Products
It is anticipated that 10-15 additional syrups will be added such as Spearmint, Black Cherry, Cinnamon, Blueberry, Peach, Red Apple, Tutti Frutti, Coconut, Cola, Green Apple, Tangerine, and Vanilla. Also, future products to be sold will include ice cream in vanilla and chocolate flavours.
Keys to Success
The keys to success are:
- Will be the first business of its kind in the city of Hounslow, London.
- Business will be located on a dual carriageway next to several housing developments, the city pool, near schools and parks, and along a major restaurant and motel strip.
- Product quality will include a large variety of tropical and Mexican flavoured syrups.
- Business has the potential for expansion.
- City of Hounslow experiences warm weather approximately five months of the year.
- Two-way traffic on Dual carriage way/Motorway averages 48,300 vehicles on a daily basis.
The cost has already been mentioned earlier on, the figure will include all the building materials, landscaping, and the equipment.
The estimated time limit on completion is between six to ten months.
The application forms for recruitment will be produced and will be available to interested person(s) via agencies and advertisements. Interviews will take one to two months before opening date. The successful applicants will be issued with their uniform and a booklet to read on rules and regulations, explanations about holiday leave etc.
Overall there will be about ten applicants employed. This workforce number will ensure maximum quality and service.
(E6) describe the constraints which may affect the formulation of a business plan)
P.E.S.T
A PEST analysis stands for Political, Economic, Social, and Technological influences, all of, which are external. Carrying out a PEST analysis involves identifying the key factors external to an organisation that are in a state of flux and that are likely to have an influence on the organisation in the coming months and years. An effective PEST analysis will be based on detailed research using all the latest journals and publications.
Political factors
The political and the legal environment covers the external forces controlled by government, both national and European, local authorities or other trade or activity orientated regulatory bodies. Some of the rules and regulations developed and implemented by bodies under this heading have the force of law, while others are voluntary such as advertising codes of practice. Rules and regulations do have affect on our product because we need to produce and sell to the public. If our products do not meet the other regulatory bodies we will not be able to sell our products to the public therefore meaning that we will lose a lot of money and time and effort because we are not able to sell
our product. Advertising rules are very important and if our product is not advertised properly this means that we have constraints for the Beverage as the listeners are looking for good conduct in advertising. To overcome this we need to follow the rules of “The British codes of advertising and sales promotion” this is a rulebook for everything else except the radio, television and cable commercials, which are covered by a separate rulebook.
Economic factors
As the interest rates are low and the unemployment is low this is good news for Ice Dream. This is because the public is able to buy more luxury beverages, meaning that the new drink could bring in sales. At the moment the economy is good but we cannot expect it to be like this forever so we need to be prepared for Ice Dreams to experience recession. This is because the marketing strategy needs to adapt to changes like this as well. If there is an increase in the sales then Ice Dreams are able to expand. Inflation is low so therefore taxes are put down so people have more to spend so this means that they can afford my new beverage as they have more income coming in.
Social/ cultural factors
The role of men and women are equal to some extent as both men and women go out to work. In some religions/culture men are still thought to have the upper hand where they go out to work and the women stay at home and look after the kids and cook the dinner. This means that households have two incomes coming in so that means that they will have money to buy the beverages so they won’t have to settle for a substitute.
Fashion trends might have an affect if something new comes out so consumers may turn to that if it is better then the latest Ice dreams and more people are buying the other drink.
Technological factors
Technology allows better quality and cheaper goods so this means that I will be able to produce it cheaper so it will save money but it will be made of good quality, which consumers want.
New technological machines could mean that the first steps of making the beverage are simplified.
Health trends can also have a constraint on the business. For example people thesedays are “Health conscience” therefore like to eat sugar free products, or fat free products, and low cholesterol. To over come this dilemma I will ensure that there is absolute minimum fat used and that the sugar stays at an absolute minimum.
I can also hire professional companies, to come in every month or so, to check that everything is correct and the workers are not “slacking”.
The Health and Safety can also be asked to pay visits from time to time. This will also ensure that the business takes best interest in hygiene and will only provide customers with the best products.
(C1) describe and justify the approach taken to constructing the business plan and indicate the alternative approaches you considered)
The approach I took in preparing my business plan was to work with a Business-planning template. The template was prepared with the headings and I just had to simply fill it in.
Some of the information came from books and others from external sources.
The alternative approach I could have taken was to go into banks and arrange an interview with the manager and ask him/her for information about setting up a business. I could have asked them for tips and methods of achieving my goal(s). I could also have the option to use the banks business plan format.
Another approach could be to ask the manager of an existing or similar beverage shop, and find out how they become successful. I could ask them for rough estimated figures for ingredients, rental cost, machinery costs etc.
Solicitors and Accountants could also be an alternative approach. They could have helped me with the business planning. The Accountant would be useful, especially when it comes to preparing the financial plans.
Instead of me carrying out the market research, I could have asked a professional Marketing organisation to do it for me. This approach would have resulted in greater adequate answers, and would mean that I would get a greater variety of answers.
(C2) evaluate the viability of your financial plan)
The financial plans that I have produced for Ice Dreams do seem to be reliable and realistic. For example, the break-even analysis shows the amount of units that are going to be sold during the warm periods of the year. The figures of the month show that each unit is going to be sold at a £1 or slightly over. The monthly intake Ice Dreams will be roughly making is between the regions of £1500 and £2500.
The sales forecast shows projected figures; these do seem to be slightly optimistic, but if Ice Dreams do make near enough sales it would be great. It also shows that the total increases each year, showing that the drink Shave Ice is selling well and is popular.
The start-up figures do seem to be realistic, the equipment will cost a lot of money, and other expenditures will take place i.e. getting consultants to check if everything is alright and could maybe, suggest ideas on where improvements can be made.
Obviously the first and second years are going to be vital, and the business will need to take off well. There will be a lot of expenditures in these two years. I.e. paying of liabilities and insurance etc.
The profit and Loss shows all the expenditures on promoting the product and all the other expenditures made by the business, i.e. payroll etc. The profit and loss shows a steady increase in the net profit percentage, and also gross profit.
All the expenses have increased throughout the three years. This shows that the promotion may be increasing, thus leading to Ice Dreams creating better promotion tactics, and also increasing quality.
(C3) analyse the business plan accurately using appropriate evaluation tools, and propose alternatively approaches)
Return on Capital Employed (ROCE)
This ratio expresses the net profit of a business as a percentage of the total value of its capital invested in fixed and current assets.
The return on capital should ideally be higher than the rate of interest a business could earn by placing money in a bank or building society account. If not, then the business might just as well convert its assets to cash and put the money into an interest-earning account.
The higher the ROCE, the better for business owners. Profits are high, and therefore the dividends will be healthy.
The ROCE here shows that there is an increase, which would mean more profits, and dividend will be higher.
2002= 10,235/16,257*100=62%
2003= 23,336/29,350*100=79%
The percentage of ROCE shows that it has increased over the year by 17%. This also shows that the profit is high therefore giving me good pay.
Gross profit margin
The gross profit margin is a measure of how much total profit is made as a percentage of sales. The ratio is a measure of trading efficiency. The higher the percentage, the better the business trading performance.
2002= 92%
2003= 92%
2004= 92%
The gross profit shows that it has stayed constant throughout the 3 years. This means that the business is making good trading performance, because the percentage is high.
Net profit margin
Net profit is arrived at after overhead expenses, such as electricity, telephones, and gas have been paid out from gross profit. The difference between gross and net profit therefore gives an indication of a firm’s ability to control its costs. The higher the net profit margin, the smaller the difference between costs and revenue.
The net and gross profit margins provide a useful means of judging business performance when comparing performance across two or more years. If gross margins stay constant but net margins decrease, this means the overheads must have increased during the year.
Net profit/sales margin
2002=19.60%
2003=30.16%
2004=35.60%
The Net profit shows that there was a big increase from 2002 to 2003.
After this year it stayed constant and only increased by 5%.
(C4) identify and explain the constraints affecting the business plan)
(A2) evaluate the possible effects of the constraints affecting the business plan and its implementation)
SWOT Analysis
A particularly useful approach to examining the relationship between an organisation and its marketing environment is a SWOT analysis. A SWOT analysis sets out to focus upon the strengths, weaknesses, opportunities and threats facing a business or its products at a given moment. It includes both internal and external element. The internal element looks at the current strengths and weaknesses of the organisation. The external looks at the opportunities and threats present in the environment in which the organisation operates.
Carrying out a SWOT analysis requires research into an organisation’s current and future position. The analysis is used to match an organisation’s strengths and weaknesses with the external market forces in the business environment.
Strengths
Strengths are the things that the firm is good at. One of its biggest strengths is that Ice Dreams is a good product, which is known all over the world so they have a good reputation. If customers are happy with a beverage then they will keep on coming back to purchase the drink. Also if the reputation is good then we are able to experiment with the drink and try to make it more exotic or add extra flavours, which will have no major impact on customers.
Finding the strength of any product is important to an organisation as it allows them to see what they are good at and what their customers are happy with. This will allow Ice Dreams to carry on with what they are doing in order to keep the customers happy.
Weaknesses
The weaknesses could be the things that a firm is not good at compared to their competitors. By identifying the weaknesses, Ice dreams can try to improve on them so they don’t fall behind competitors. If I wanted to change Ice Dreams as a beverage, I can change it taking the weaknesses into consideration so those customers are happy with the beverage.
Opportunities
Opportunities are where firms can use their strengths to improve their position in the market. There are many opportunities open to Ice Dreams to improve its position. First of all the population is growing and drinks are ‘musts’ for a lot of people. They need drinks to quench thirst and try something new instead of the standard drinks that are available, i.e. Coke,
Sprite. So therefore more people are going to be interested in new drink. People are getting in more income so the sales of Ice dream beverages could go up as people can afford it at the moment. Young people tend to go for something new, and if one tends to like it others follow in suit.
Opportunities help us to make more of a profit and be more adventurous with our products and services if we are doing well. Opportunities also allow us to make our marketing strategy more adventurous, which will enable us to stay in front of our competitors, which will allow us to make a profit. There are new opportunities available that weren’t before. The new technology allows us to promote Ice Dreams a lot better, which is more effective. The new technology such as the Internet is an opportunity as we are able to attract more customers to the promotion.
Threats
Threats will mainly come form competitors such as the other shops that sell the product, with whom they have to compete with in order to get a better market share and customers. Competitors will try to attract customers to them so Ice dreams will have to make sure that they have a plan, which will help them to stay in front of competitors.
The SWOT analysis can have a constraint on the business plan. This can come from the competitors. They might offer special offers to customers and also try to gain better market shares. To avoid this Ice Dreams needs to draw up a plan to stay ahead of competitors.
The pest analysis can also have a constraint on the business plan. There are factors such as Technological factors which mean that new machines that replace humans can do the job easier and quicker. These can be used for extracting the juices used for Shave ice.
Economical factors can also have a constraint on the plan because if the economy is bad then people will not have enough money to indulge themselves.
Other constraints can be the Health and Safety rules and Regulations. Especially when preparing food and drinks optimum hygiene needs to be enforced.
(A1) evaluate the viable alternatives to the business plan based on your understanding of the financial information generated by your analysis)
There are alternatives I can turn to if I feel that there are not enough sales made.
Firstly, I can move my location to a cheaper area, but this will mean that everything I have built up will either need to be taken over by someone else and run their own business, or I will have to sell the building.
Another alternative is to reduce my workforce. If for example I have twelve people working for me I would decrease it to about seven, and make them do more hours and pay them about £4.
The Shave ice has a lot of ingredients in it. I could reduce the syrups to about five or six, instead of about fifteen. Ice Dreams will also sell products such as Coke and Sprite, if I feel that I am not doing as well as I intended I can stop selling the fizzy drinks such as Coke and Sprite etc.
Also cut down on the licuados.
I may also have to cut down on the promotion of the product. This will mean that the quality of my posters and fliers will not be as useful or as quality as they originally were.
If any of these were to take place it would mean that the competitors have done better than me in a way. Therefore I need to stay on top, with a plan. This would also result in the quality of the Shave Ice decreasing.