Executive Summary - Ice Dreams

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Business Studies. Unit six Business Planning.        Mr. Zaman

Executive Summary

Ice Dreams will sell shave ice as its primary product in addition to soft drinks and frosty Latin drinks called licuados. Shave ice is the hottest new dessert since frozen yoghurt! Shave ice is heated up rapidly and shows no sign of cooling.

Shave ice has been around for many years, beginning in Asia, then becoming popular in Hawaii. People would shave ice by hand, creating a cold, flaky snow. Then they'd top it with fruit juices to create a refreshing treat. Something this good couldn't remain a secret. In recent years, the taste for shave ice has spread all over the world.

Shave ice is much different than a sno-cone in that it is made by a small counter-top machine that shaves ice rather than grinding it like a sno-cone machine, which results in ice so fine that it rivals real snow! The snow is then placed in bowl or cup and filled with high quality tropical fruit flavours. Because the snow is so soft the syrup is held within its tender texture versus settling to the bottom like traditional sno-cones. Since the syrup is absorbed into the snow, it must be eaten with a spoon instead of a straw.

Because shave ice is so tender and made with the thickest, best-tasting tropical fruit flavours, it is preferred by adults and children of all ages and ethnic backgrounds.

A drive-through business will be built on privately owned commercial. Other products, which will be incorporated into the business including beverages (soft drinks and licuados).

Objectives

  1. To construct a drive-through building (12' x 20') on existing privately owned commercial property (50' x 120').
  2. To produce a net profit of at least £50,000 by the third year of operation.
  3. To sell 20 different tropical and Mexican flavoured syrups.
  4. To sell other products such as soft drinks and licuados.

Mission

Ice Dreams will produce and sell shave ice with 20 different flavoured syrups, soft drinks, and licuados to consumers in Hounslow, London. Retail customers will be in the low- to mid-income bracket, and will range in age from children to adults.

(E1) effectively use the results of Primary and Secondary market research data and competition analysis to complete the market analysis)

Secondary data

This type of data is the existing data that a business can use for its own purposes.

The Internet

This is a type of secondary data that a business can use such as it contains a lot of published material but it may not be as reliable as books, magazines.

Government statistics

Government prepares statistics and the Central Statistical Office (CSO) publishes both a monthly and annual analysis.  This provides us with information about the different markets.  Above are just some places where I can get secondary information.

The secondary data shows advertisements are sold in spots and the daytime spots cost less because there are little audiences.  In the evening between 5.30 p.m. to 10.30 p.m. there is a much bigger audience because people have finished work, school or whatever they are doing to relax and watch television.

In the UK, ITV (including GMTV), channel 4 and channel 5, show advertisements between programmes and in intervals within the programmes themselves.  Advertising time on TV is sold in ‘spots’ ranging from one minute down to seven seconds.  Daytime spots, when audiences are low cost less than those do in ‘Peak time’- the evening when millions of people may be watching Independent Television.  Most evenings from 5.30 p.m. to about 10.30 p.m. is peak viewing time when TV audiences are largest.  The ITV companies usually show the same programmes, though they may show different advertisements.

TV advertising time in Britain is sold on the ‘spot’ system.  A ‘spot’ can last for a few seconds as with many of the ‘still’ advertisements for local stops or for a minute or even occasionally more.  ‘Spots’ are bunched into breaks which may contain just one advertisement, though this is rare, or several.  Each of the programme companies charge different rates, or prices, for its spot time.  It is not hard to see why.  One company, Grampian Television, serves only about 2,023,000 homes, but the London Region, whose programmes are provided by Charlton Television during the week and by London Weekend Televisions at weekends, has about 5,491,000 homes- 2 and a half times as many. A half- minute spot in mid-evening on a weekday could cost £1,250 on Grampian Television whereas a similar spot time cost on Carlton Television might be £23,000.

On a weekday evening when a very popular programme is being shown on the whole ITV network, as many as 20 million people may be watching.  On Sunday morning the audience may only be a few thousand.  Round about teatime during the week, a high proportion of the audience will be teenagers and children.  Earlier in the afternoon in term-time, most viewers will be housewives, elderly people or shift workers.  This information allows the advertiser to select his audience.  It allows them to advertise to the correct audience.

There are now over 240 commercial stations, licensed and regulated by the Radio Authority, that pay for themselves by taking money from advertising. There are now national, regional and local commercial stations broadcasting.  Commercial radio stations, unlike TV stations, are no longer restricted to a limit on how much advertising they can take per hour- however they normally stick to 9 minutes as viewers tune elsewhere.  They are sold on ‘spot’ basis.  Peak audience times are different, however, with radio at breakfast period and evening rush hour has its largest audiences.

Out door advertising- poster sites in Britain are mainly in big cities alongside main roads close top the cities.  Outdoor advertising also includes the sides and backs of buses, banners and boards at football and other sports events, both the inside and outside of London and other city taxis, bus shelters, and boards at bus and railway stations. So posters are often used to remind people of brand names, or tie in with TV advertising to remind people of the TV message.

Point of sale (POS) advertising includes posters for the shop window, complete window displays for the advertiser's products, 'Open' and 'Closed' notices for the door with a product name on them, and the various other small advertising items that you see in shops. These are sometimes part of a short-term advertising campaign, but more often they are used to keep an advertiser's name in the minds of shoppers.

In 2003, £14,307 million was spent on advertising in Britain. Over 80 per cent of this was spent on display advertising of goods and services in the press, on television, radio, posters, direct mail and in the cinema. The remaining 20 per cent or so bought classified advertising (small ads), financial and legal notices, company announcements, and recruitment advertising (job ads) and advertising in the business and professional press.

Companies also spend substantial sums on other forms of communication but statistics are not always available. However, it is estimated that in 1995 £750 million was spent on exhibitions in Britain and substantial sums are also spent on sponsorship, sales promotion, mail order and other forms of activity.

This is where the money was spent:

Who are the advertisers? 

The table below shows the amount spent on advertising in 2003 by various product groups and by other groups of advertisers.

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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 ...

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