4.0 Market Analysis Summary
Although the name is Fresh Fruit Juice Machines, we want to stress that this service is for everyone who plans a gathering. Every household, business, church, or event is a potential customer. From weddings to barbecues, the fun and convenience catches on like wildfire as everyone at the event enjoys a delicious Chilled drink.
Some examples of excellent rental/concession opportunities are:
- Weddings
- Club Fundraisers
- St. Patrick's Day
- New Years Eve
- Christmas Party’s
- Barbeques
- Presentations
- Any type of Disco
Currently, at these types of events, customers have a choice of purchasing fizzy drinks (ie. Cola, lemonade). And, while delicious in their own right, there is something missing from these two choices. We have an excellent alternative; Fresh Fruit Juice Machines will provide a quality beverage, with real fruit flavouring and few preservatives. These drinks are far superior to the taste of a fizzy drink, and more nutritious than a fizzy drink.
4.1 Market Segmentation
Fresh Fruit Juice Machines will target all segments of the population - children, teenagers, and adults - through rentals and concession stands at local events. This is truly a beverage machine with beverages people of all ages can enjoy. It is a fun, affordable alternative to the familiar party beverages that are available. Our market segmentation will focus more on areas of service than on potential customers. The only limitation would be how far the company is willing to travel and how much area can be covered through our advertising plans.
4.2 Market Analysis
Although this is a lucrative business, there are no competitors for Fresh Fruit Juice Machines. This is due to the fact that there are no other companies in the targeted area which provide similar services. Fresh Fruit Juice Machines has the advantage of being the first to market these services.
4.3 Target Market Segment Strategy
In order for Fresh Fruit Juice Machines to get a hold of this lucrative service, we must focus on a specific market segment whose needs match our offerings.
The target customer is anyone planning an event and wishing to provide an original beverage alternative for his or her guests. When the happy guests serve themselves, they think, "What a great idea, I'll have Fresh Fruit Juice Machines bring a machine to my next party." Each guest is my next potential customer.
4.4 Market Needs
The party products market is popular, and demands quality services. Fresh Fruit Juice Machines is able to provide this segment with the products and services it is seeking. The unique nature of a Chilled drink machine service demands it be an indispensable part of any celebration or gathering.
The market for party products is growing throughout Essex - as well as the rest of the country. Fresh Fruit Juice Machines has the advantage of being an originator in Havering, Essex.
4.5 Service Business Analysis
As mentioned in the previous sections, there is no relevant competition for Fresh Fruit Juice Machines at this time. This is a business in an exciting, expanding new industry; we are set up to reap the benefits of being pioneers within this area of Havering. That is not to say we would be unable to compete with a business offering the same services. We intend to establish ourselves so fully in the segment, that our customers would never dream of using anyone else for their party needs. We will be the company that a new business will be wary of.
5.0 Strategy and Implementation Summary
The beginning operation of Fresh Fruit Juice Machines will be basic, with three machines, and three flavours of mix. It is imperative to the success of the company that smart financial decisions are made, and that the business does not expand too quickly; this could result in not having the funds necessary to operate. Flavours, machines, and an expanded service area will be added as they become necessary. This is a process we see as taking place over the first two years of operation. We plan to expand the flavour choice from the basic three to the full eleven which is the target after two years. Additional machines will be purchased in order to better serve an ever-expanding customer base. Within two years, we hope to be serving the Elm Park, Brentwood, and Chelmsford areas; this will expand our range to almost a thirty-mile service area.
5.2 Competitive Edge
We start with a critical edge - there is no direct competition at this point. Available options for local areas include: the snow cone trolley, purchasing the separate ingredients and using a blender to make Chilled drinks, or canned drinks purchased at retail stores. These options all pale when compared with the lively taste and nutritious quality of Fresh Fruit Juice Machines's Chilled beverages.
Customers will be reached through advertisements such as business cards, flyers, newspaper ads, a website, and through word-of-mouth from satisfied customers. It is our goal to make each occasion the best it can be. By doing our utmost to ensure this, we expect positive feedback from our customers. It is our hope, then, that these satisfied customers will not be stingy with their praise for the company, and spread the word about us.
5.3 Sales Strategy
We will provide first-rate service during each aspect of rental: from time of booking, to setup, and all the way through to pickup. Each member of the Fresh Fruit Juice Machines team will be adept at both sales and social skills. It is our goal to be the most friendly, knowledgeable business in the area. This will help Fresh Fruit Juice Machines become number one in sales, and it will contribute to remaining number one.
5.3.2 Sales Forecast
The following table and chart give a run-down on forecasted sales. We expect sales to increase dramatically as name recognition and word-of-mouth advertising grows.
5.4 Value Proposition
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The accompanying table lists important program milestones, with dates and persons in charge, and budgets for each. The milestone schedule indicates our emphasis on planning for implementation.
5.6 Marketing Strategy
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5.6.1 Positioning Statement
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5.6.2 Pricing Strategy
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5.6.3 Promotion Strategy
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5.6.4 Distribution Strategy
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5.6.5 Marketing Programs
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6.0 Management Summary
Fresh Fruit Juice Machines will be a family-based business. Greta Guidry has worked for the Army Air Force Exchange (AAFES) over the past 18 years in several different positions, from cashier to manager. Through these positions, Greta has gained great knowledge of the service industry, of being an efficient manager, and a feel for stocking and maintaining inventory.
The other members of her team (and family) are experienced sales professionals, and have intimate knowledge of the Chilled drink machines being utilized. All family members are committed to the success of Fresh Fruit Juice Machines, and have been trained in customer service and sales in order to make this goal a reality.
6.1 Personnel Plan
Greta Guidry, the owner, will conduct daily operations of the business. Steven, Kelley, and Michael Guidry will assist with deliveries and pickups. Because this is a family business, each member of the family has been given responsibilities, and is more than capable of assisting in all parts of the rental process.
6.2 Organizational Structure
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6.3 Management Team
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6.4 Management Team Gaps
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7.0 Financial Plan
We want to finance growth mainly through cash flow. We recognize that this means we will have to grow slowly, adding machines one at a time, not in bulk. The most important indicator in our case is that minimal inventory will have to be stored for these rentals; this translates into very low overhead.
There are some seasonal variations, with the months of March through September being the hottest months in Texas. This will, as expected, mean a high rate of rentals for events such as pool parties, Fourth of July celebrations, and barbecues. However, we expect the winter months to be just as lucrative due to the number of holiday parties, football gatherings, and fundraising events. We expect a light seasonal variation, with sales increasing slightly during the cooler months. For the most part, Fresh Fruit Juice Machines will experience a high rate of sales, regardless of weather variations.
7.1 Important Assumptions
The financial assumptions for Fresh Fruit Juice Machines are included in the following table.
7.2 Key Financial Indicators
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7.3 Break-even Analysis
The following table and chart summarize our break-even analysis. With estimated fixed costs of £200 per month, we need to have only two rentals to cover our costs.
7.4 Projected Profit and Loss
We expect a net profit of £32,000 in year one, which is over 50% of net profit. We foresee an increase to £37,000, or 54% of net profit in 2002, and a further increase to £44,000, or 55% of net profit for 2003.
7.5 Projected Cash Flow
The following cash flow projections show the annual amounts only. For a monthly breakdown, please see the appendices at the end of the business plan.
7.6 Projected Balance Sheet
The following table represents our financial position at the end of each of the three upcoming fiscal years.
7.7 Ratios
The following table shows standard ratios and industry comparison for SIC code 7359, rental businesses.
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4.5.1 Business Participants
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4.5.2 Competition and Buying Patterns
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4.5.3 Distributing a Service
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4.5.4 Main Competitors
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5.1 Strategy Pyramids
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5.3.1 Sales Programs
This topic was not included in the original business plan, but is included here as a placeholder for others using this plan as a guide. Please remember that the default outline is flexible on purpose, because every business plan is unique, so many excellent plans omit topics included in the standard outline and many add additional topics. The outline is a suggestion, not a checklist. You can add and delete topics easily. Make it your plan, not the software's plan.