Business Planning : Home From Home

• Rental Cost for the building for one year
• Bakery equipment

Both Anne Fletcher and Shevon Oxford intend to invest £6000 (£3000 each) of savings to cover the other cost of start-up. These include

• Advertising brochures.

• Bakery ingredients.
• Insurance.
• Bakery accessories, i.e. plastic bags, carrier bags, cups, etc.

Break down of start up costs for the first month

.4. 0 Marketing

3.0 Products 

Home from home will offer a wide range of exciting products such as

Bulla

• Ginger bulla made from real Jamaican ginger

 Buns

• Spiced bun

Bread

• Corn bread
• Hardo
• Organic
• Wholemeal
• Coco

Patties

• Vegetable                         

• Lamb
• Beef
• Chicken  
• Saltfish

 Crisps

• Plantain
• Walkers Brand  (all flavours)

Chocolate

  Cakes

• Pineapple
• Banana
• Chocolate and ginger

Other organic elements of the business include a variety of natural drinks such as peanut punch, Guinep drink, carrot juice, pineapple punch and peanut punch. There will also be a variety of Jamaican soft drinks with brands such as Bigga, D&G and tropical fruit duties

 price £1.35

 Price: £1.35

4.1 Market segment

Target market 

White group

The majority population in Lewisham is white is (68%) therefore the bakery will not just target the Caribbean market, the plan will reflect the statistics, advertising will be done to educate those that don’t know about the product and therefore broadening the customer base.

Black African, Indian and Pakistani

Black Caribbean represents 12% of the population, this figure is positive as this is the second highest population percentage and therefore a good place to set up the business.  The remainder of the population are as followers; Black African 4%, Indian 1%, Pakistani 1%.

Lewisham has a high population especially the 20-59-age range indicating a possibility of a young customer base.

4.2 Employment in Lewisham 

According to the Lewisham website in 2001 employment rate in the South East was approximately 80.6% higher than anywhere else in the UK. Therefore the disposable income in the area looks good. If the buying power is high then consumers are more likely to want to spend more. The figures above also show that there are more women living in Britain than men, therefore our business activities should try to aim at women but also to get men purchasing our products.

There are local facilities in Lewisham such as 13 secondary schools, over 40 primary schools, 8 specialist schools. Therefore there is a possibility of customers from these groups.

 

4.3 Pricing               

The average gross weekly household income for London was £711 in 1999-2002 according to national statistics 2004 that is £186 higher than the average for the UK. As income is higher spending will increase. The products can’t be too expensive, as these customers will turn to competitors, as an incentive the business will

Pricing sheet for customers

Home from Home’s pricing will be in relation to competitors, the strategy is not to make prices lower but simply to match or even make our prices in relation to quality.  

There is big competition from bakers such as Gregg’s, so Home from Home will do more adverting to get more customers.

 Home from Home recognise the impact of inflation on the business and so if there is an increase in inflation the business will raise its prices, as the cost of raw material will go up.

Potential customer base        (fig 000s)

                                        (Lewisham online)

4.4 Promotion

Home from home’s promotional mix will consist of both above and below the line promotions. Above the line promotions are the best to communicate as the business is just starting out, activities involved in such promoting will include leaflets- (these will be dropped through doors), posters- (these will be in shop windows), and (newspapers South London Press and the local Lewisham papers) which are all fairly affordable. The main adverting will be done on the radio through Choice FM; as this reaches targeted audience and is low cost. A sample of the products will be available to the customer as a way of educating them on Caribbean baking. The business will also use word of mouth and on the packaging promotion as these are both effective and low cost.

Cost breakdown:

Radio advertising                                  £2000 for the first three months

Poster and leaflets                           £300 for the first three months

Newspaper                                  £700

Once the business is established, the Internet will be used as a promotional tool additional advertising will be in store and ion the bakery van

The objectives of these promotions are to:

• Tell potential customers of the existence of the bakery and its products.
• To encourage consumers to buy the products
• To think about retaining customers therefore encouraging repeat purchases.

The management team will produce the posters and leaflets as previous knowledge of design is acquired

4.5 Place (physical distribution).

The business will be on Lewisham High Street. The products will be produced on site so it will be fresh (except patties and bottled drinks).  It will be sold directly to the customers face to face. Orders will be placed and delivered immediately. It will also be sold to small business such as corner shops.

 

4.6 Distribution channel 

Manufacturer        consumers

This distribution channel highlights how the products will reach the customers. A customer place orders over the counter then receives orders.

                 

Manufacturer                           convenient stores                                  consumers

This is part of our long term strategy; the intension is to provide corner shop with our products therefore widening profits.

5 Operation Strategies

The business strategy will focus on serving the market with quality goods. It is determine to be part of the community and so to achieve these goals the business will provide the following:

• Friendly atmosphere
• Quality baked fresh goods so every one will enjoy at a fair price
• Clean surrounding
• Money back guarantee for unsatisfactory goods

Quality control and quality assurance 

The bakery will encourage the response from customers as a means to test quality of products. Both Partners Shevon Oxford and Anne Fletcher will check the quality of products daily, unsatisfactory output will be rejected. To decrease human error the products will also be checked by the baker (total quality management) thus checking twice this will not be linked to his pay but comes a part of job description.

5.1 Competitor analysis

There are three bakeries that provides bread and cakes

Gregg’s situated in and outside Lewisham centre

Gregg’s

Strengths:

• Make bread, pastries; hot cross buns, muffins and cookies, it is a well-established bakery in the area.
• Family business with a lot of history
• Multiple chains
• Products are cheap
• Products are freshly made

Weakness

• Does not provide Organic bread, Caribbean buns, patties and natural fruit juice

Percy Ingle

Strengths

• Provides a wider range of products, including sandwiches and is a well-established business with a good reputation.

Weakness

• Does not provide Organic bread, Caribbean buns, patties and natural fruit juice

 

5.2 Sales Strategy

The business will focus on building a customer relationship by providing good customer service with a friendly smile. By providing freshly baked product daily the business hope to have customer make the bakery their one stop destination for breads, cakes, buns and patties.

5.3 Sales Forecast

The assume sales forecast for the business are as follows:

• Bread sale in the summer will be higher because more people will be having BBQ and picnic, which will require hotdogs and hamburgers buns.
• Buns sale will be higher in April because of the Caribbean traditional eating of bun and cheese.
• Bread and pastry will be higher in November and December because of the Christmas holidays.

Sales forecast

Management will do the following roles:

• Bookkeeping
• Payroll
• Finances

Personnel plan

The table below illustrates the needs of the current employees

In 2005 the first year of opening Ann Fletcher and Shevon Oxford will not expect to be paid, as this might be a difficult time for the business. All employees will be paid according to minimum wage of 4.85p/h

Typical Cost breaks down 1st year

Health and safety

Bakeries can be dangerous places in which to work so the following will be done to prevent accidents happening:

• Provide slip resistant floor coverings

• Introduce measures to avoid spillages and leakage, e.g. using secure storage bins or purchasing liquids in smaller containers.

• Ensure spillages are cleared up promptly and display warning signs when floors are wet or slippery.

• Keep production areas, stairs and passageways obstacle-free.

• Provide safety ladders or secure staircases to access goods at height.

• Train staff in their safe use.

• Train staff in proper lifting techniques.

• Maintain equipment in good condition.

• Display warning notices to remind operators and others of the dangers involved.

• Keep ingredients in original containers and train staff in their correct use.

• Provide suitable oven gloves for handling trays etc.

• Minimal storage in production areas, adequate ventilation, enclosed mixing systems etc.

SWOT Analysis of the Business Plan:

Strengths-

• From the research undertaken on the residents of Lewisham the business looks to be a successful one
• There is no Caribbean bakery in Lewisham therefore no competition
• The building is ready to move into and because we have decided not to buy just yet there is no commitment if the business fails

Weaknesses:

• The business may be setting up in the wrong area, as competitors do not seem to be many and those that exist does not sell product our bakery will.
• There are cheaper options available if consumers were to shop in a different area

Opportunities:

• The business is one of a kind in this area and if successful both partners will look to set up another one and expand
• The possibility to exceed forecasted sales in the first year due to demand

Threats:

• There are a lot of choices available to customers in the form of the competitors though they do not sell Caribbean food.

Pest Analysis of Business Plan:

Political- the political issues acting the bakery are the number of various act that there are in relation to food that the bakery must comply with:

• The Weights and Measures Act 1985
•  

Economical- rates of interest rising can depress the business causing redundancies and lower levels of spending.

Social-cultural- involves changing attitudes and lifestyle. Therefore the need for organic products is increasing the bakery intends to provide healthy products to suit changing needs.

Technological- the use of telephone and the Internet will enable the business to be more efficient

The following sections will outline important financial assumptions.

Assumption

The current economic climate in the U.K appears to be good. Therefore the outlook for the business is good. The products positioned as quality for money though

Not as expensive as luxury items.

7.0 Financial statement

List of suppliers

Suppliers

Patties

Port Royal/Jamaican Patties Limited  

9/10 Trojan Industrial Estate Cobbold Road London NW10 9ST

Tel. 0208 459 7983

Drinks

Grace, Kennedy (UK) 

Aaron House
6 Bardolph Road
Richmond, Surrey, TW9 2L
Tel. 020 8940 7273

Crisps and chocolate

Walkers snack foods ltd

Pennine place

Skelsmersdale

Lancershire

WN8 9QF

Raw materials flour, sugar, yeast etc.

BAKO London & South East
1-6 Merton Industrial Estate
Morden Road
LONDON
SW19 3XX

Appendices Equipment

Scobie & McIntosh (Bakery Engineers) Ltd are suppliers of high quality new and refurbished equipment to the food and bakery industries.

 

http://www.food.gov.uk/foodindustry/regulation/foodlawguidebranch/

 

Collins Bartholomew 2003 accessed 02/02/05

http://www.virgincars.com/vans2.asp?CID=1124