Business Plan For London Friend Chicken Marketing Essay

Business Plan For London Friend Chicken Marketing Essay

Business plan is a record which is of quite definitely importance. This is a plan which sets up the outline for performing a business and ascertaining its route for growth and making profit later on. In this survey, a business program is designed for the reasons of a fresh business which is to be started. The business plan is at the helm of every business where the planning, formulation of technique, designing of the procedure and the setup of the business in performed. This document is of a prime nature and of precious importance for the business which is likely to do the business right away. This plan will set the goals of doing the businesses and the overall strategy to follow so that the business will succeed. The approach and projections for the business enterprise are set in this plan so that it is known well before in advance that in which direction the business / business will going to move.

Here in this survey, we will in the beginning define the basic terms that are commonly to be used. This will than be followed by the discussion of the business plan, the targets of the business enterprise, the products which will be offered by the business enterprise, an analysis of the marketplace, a summary of the entire strategy and implementation, world wide web plan, summary for the management and the financial approach will be talked about in the below paragraphs in this survey. This survey will comprehensively go over the factors that are required for the purpose of a new and successful business system.

Some of the main element definitions are discussed right here under with regard to creating an understanding for the users of this report:

1.1. BUSINESS Strategy:

Planning plays an essential role in ascertaining how a business will perform and the amount of success that it’ll achieve. Therefore, the fundamental and required elements for the victory of a business are the identification of the relevant goals and the advancement of the approaches for the objective of obtaining and reaching those goals. A business plan is a significant aid and tool working with which the business can in fact organize their goals which it wants to attain and the goals it has place for itself. That is basically a dry run of the company or basically we can say that this is exactly what a company can look like on paper. The business plan is employed by the companies irrespective of the size and / or stage of the production process. It is used by the companies to take improvement into its businesses also to do marketing and give description of the business enterprise to those who will finance the project. The business plan generally follows a typical format for the purpose of this course of action. By effectively utilizing a business plan the firms can not only attain and acquire their goals but even can do superior to that. Hormozi, A good. M., Sutton, G. S., McMinn, R. D. & Lucio, W., (2002)

The level to which a business plan shows and incorporates costs and overheads and the source allocation like the research, production, warehouse, safe-keeping, transport, distribution, training, hq, wastage, fluctuate with the requirements of the business.

1.2. STRATEGY:

This sets the path of the plan as how and in what manner it will work. This is often establish by the owners of the business or the shareholders of the business or the very best management of the business enterprise sets the technique for the business. This strategy sets the manner in which the company will operate and will strive for the purpose of obtaining the gains and goals and targets of the company. The strategy needs to be set at the idea of inception before anything is normally or could possibly be done so that the business enterprise thrives and prospers according to the route it has set for itself and the program that it has made for attaining that objective and strategy.

2. DETAILED BUSINESS Strategy:

This report today discusses the business plan of the business enterprise which is going to be set up. This business will thrive to create profit by making an excellent format, plan and strategy so that the company can be able to survive together with than it can be able to make the gains.

In this detailed business system we will discuss the nature of the business, the aim of the business enterprise, the mission of the business enterprise, the strategy where the business will operate and the style and mode in which the business will gain the profitability.

2.1. Dynamics OF BUSINESS:

The nature of the business is an easy food restaurant chain having restaurants in three locations in London. The name of the business is proposed to end up being “London Fried Chiecken – LFC”. That is a locally based mostly and self owned junk food wall plug chains. This will get positioned and made an international brand of the fast foods restaurants throught the creativity and approach according of the photograph of the outlets. This fast foods restaurant chain will provide very high quality food at value rates on investing in this in mixed. This foodstuff will be served in high quality demonstration and layouts. London Fried Chicken is to be opened with regards to a growing demand for snack foods and junk food. This food is popular especially when the people when the clients do window store shopping or they walk in a shopping mall.

In extremely competitive environment of today’s, its becoming a lot more tricky to differentiate one store of fast food from another. London may be the economic hub of not only the uk but also to the majority of the European Countries. With more than 11 million persons visiting yearly, typically from neighboring countries particularly in europe, London’s retail sector is quite strong in your community.

We have lay out our main concern for opening the store in the central London, preferably in the central London or may be in another of the prominent malls for buying in London. Later, through this effort we have plan to further develop more retail outlets in the areas surrounding.

This business plan has been prepared for obtaining a location for primarily launching of the idea. Additional finance quantity will be asked to be obtained for the purpose of opening two outlets subsequently, which we anticipate to open in the thirteenth month and in the third year after it. The number of finance form the capital contributed by the shareholders will lead to London Fried Poultry to open effectively and in doing growth of the business enterprise within two to three years. The initial volume of capital invested will allow LFC to supply its valuable customers with a valuable and good encounter through the creativeness of its founders.

London Fried Chicken will attract extra youngsters in bringing their friends and family with our environment which is innovative, fresh chop Belgian fries, and various other selected and exceptional dipping sauces.

2.2. Goals OF THE BUSINESS:

The following will be the goals of the London Fried Chicken:

Making LFC a place to visit for eating for individuals who do looking in malls.

To establish its presence in London as an effective fast food cafe chain and gaining market share in London’s market of fast food.

To do expansion into various outlets by the year three of business, and in addition sell our franchise to our neighboring metropolitan places, like Paris, Spain, Bulgaria, Istanbul etc.

2.3. MISSION:

The main aim and concentrate on of London Fried Poultry is to be being among the most successful outlets of junk food in London, starting with one main outlet found in the primary central London located as “market tester.”

London Fried Poultry will strive to produce itself a premiere regional brand in fast food in the marketplace. You want to provide our customers the total all-in-one experience when going to our place and in addition our website as they will know more about our new pop lifestyle. We are selling the products and goods from sauces which will be pre-packaged and also t shirts, potato cutters etc, all with our own corporate brand name attached with it.

Our main focus will come to be serving high-quality food at a great value.

2.4. KEYS TO SUCCESS:

For being successful available we need to:

Be innovative, having amusing menu and creating a distinctive experience for customers, which will distinguish us from the various other competitors.

Controlling our costs constantly, in various

areas and implementing a far more conservative approach to our policy of growth. Although, as we want to be on the safe side in doing business, so we give more than required fund for starting multiple outlets.

Selling products which happen to be of the top quality, while keeping our clients happy and satisfied with our various product categories of food.

Encourage the two most important values in fast food business: brand and image, as these two ingredients are a couple of main drivers in marketing and sales communications.

Providing 100% satisfaction to the customers and maintaining the amount of excellent services among other competitors.

Promoting good ideals of our business culture and philosophy to do business.

Get access to high-traffic shopping malls nearby the target market.

2.5. Overview OF THE BUSINESS:

What London Fried Poultry is?

London Fried Chicken sells our French fries in a cone with a choice of sauce. We are using the concept of Belgian Fries, where in fact the fries are ready from clean potatoes and fried two times. Our business also provide clients with remarkable and good customer services to aid fun ambience, and a lively and youthful living style.

Fresh and youthful surroundings

Following the patterns and footsteps of Starbucks and KFC, which also represent our core target market majority, between ages18 to 35 years. Our store will have live cooking food of our main characteristic Belgian Fries from reducing to frying. Our client can be in a position to read our in-residence brochures according of all the knowledge about Belgian Fries and our featured sauces. The store we have will be decorated with fast food setting, such as a bright counter and screen menus on the wall structure.

Quality food

Each of our outlet will offer top quality service and meals form our freshly fried Belgian fries, sandwiches and selection nacl molecular weight of various other sauce blends, all served with old-fashioned home-style good care.

Open everyday

The opening situations of the store will end up being everyday from 11 am to 11:30 pm.

Variety, variety, variety

A new range of sauces will be shown every three months and we will also alter our Italian soda flavours to accompany our fries.

2.6. OWNERSHIP OF THE COMPANY:

London Friend Poultry is a privately placed business. It will be registered as a restricted company in the UK, with ownership 25% – Tim, 25% – Joseph, 25% – Carol, 25% – Amanda.

Tim and Joseph have significantly more than a decade of experience in the food business. Both are currently working as Corporate Personnel of a Company.

Tim holds an MBA level from University V. He’s an entrepreneur by heart and his hottest entrepreneurial project is a diamond retail store in the hub of London.

Joseph holds a BA degree in Graphic Developing from the Arts Academy. His projects are widely varied from product style to developing brands of several reputable companies.

Carol retains a MS level from an Institute Y. She completed many assignments and in addition served as project supervisor for multi-national corporations in London.

Amanda retains a BS degree from University Z. She has majored in general management and Information Technology. Prior to her return to London, she’s held several management positions in a U.S.-based IT company.

2.7. LOCATION OF THE FACILITIES OF THE BUSINESS:

London Fried Chicken size of position will range from 50 – 70 meters square and will have seating from 18 to 30 guests. First of our places will be on the larger end of this range. This venue will have features such as its own display of products and other characteristics for brand building. The outlet will be equipped with modern furniture and shoot for calm and an open feeling. We are searching at various possible venues around London Bridge or Oxford Street central London areas..

The location will be selected structured after the following criteria:

Tourist destination.

Community size: the least 800,000 persons within a radius of 8 kilometers.

Large percentage of teens locally.

Easy access.

All of the above features are steady with London Fried Chicken’s aim of providing a top class fast food experience. We wish our best sort of marketing to be “word-of-mouth”, where our customers value our company as something interesting and cannot withstand from telling with their friends and neighbors.

London Fried Chicken will be competing straight with several other fast food giants within the selected shopping mall.

2.7. COMPANY’S Goods:

We want to target only on offering fries. Alcoholic drinks will never be sold in our outlet, as Fresin Fries promotes a wholesome and positive Singaporean life-style. Instead, we will offer Italian Soda to check the fries.

In promoting the Fresin Fries life-style, we will offer you various merchandise with our logo and hues, from hats to t-shirts to potato cutters to your signature sauces, so that our customers can appreciate Fresin Fries in the home. Our signature sauce can be exclusively made by Company Q. They are often also purchased at selected retailers.

2.7.1. DESCRIPTION OF OUR PRODUCTS:

London Fried Poultry will sell friend poultry, burgers and fried together with our exclusive sauces for dipping. Main products sold are: Poultry Roasted, Chicken Hot Burger, Poultry Sandwiches, Chicken Burgers, French Fries, Particular Dip sauces etc.

Also we are having available Belgian-style fries in large 2 dips rhetorical essay examples, or tiny 1 dip, with addition of garlic Fresin (put £0.25).

There are more than twenty flavours available for the dips for Belgian style fries which as well be served with sandwiches. These dips can be found in a lot more than 20 flavours:

Satay Sauce

Pesto Mayo

Thai Chili Ketchup

Teriyaki Sauce

Roasted Pepper Mayo

Creamy Wasabi Mayo

Black Pepper Sauce

Lava Cheese

Barbecue

Curry Ketchup

Caribbean Islands

Jalapeno Ketchup

Traditional Sambal

Hot Chili Sauce

Korean BBQ

Garlic Dip

2.7.2. Evaluation WITH COMPETITORS:

London Fried Chicken could have several positive aspects over its leading competitors. These are:

A high degree of enthusiasm is expected by us and we provide a store with fun having friendly staff, that reflects the traditions of youth and strength at LFC.

Unique concept based on “fusion” of dipping sauce.

We do not use frozen fries when compared with other competition and our fried potato is manufactured 100% fresh.

We have ground breaking packaging which is extra entertaining than our competition; we serve an individual cone with glass which is usually reserved for dipping sauce.

Our dipping sauce is manufactured new by us without adding preservatives.

2.8. SOURCES OF OUR RAW MATERIAL:

Our suppliers will deliver new halal chicken along with fresh potatoes will be provided on a per week basis by our provider who is based in Scotlan. We also undertaken an arrangement with Corporation Q for exclusively manufacturing our crispy chicken, signature dip sauces. Our merchandise items will be printed and made by our partner’s business office in China.

2.8. Approach OF SALES:

We have set nearly similar patterns of marketing for each and every of the LFC stores. Below are the programs that we have setup for opening of every of LFC locations.

2.8.1. Beginning IN A GRAND Method:

We will be adding outdoor signs on each outlet as quickly as possible for grasping orders beforehand for parties etc. This signage will end up being supported by banners before beginning of the stores.

2.8.2. Stage OF PURCHASE:

We will be employing the idea of “tray toppers” for the intended purpose of explaining our organization and style. We will also be selling to our clients the gift idea certificates, announcing future jobs openings, and possibly will also mention about franchise opportunities.

2.8.3. DIRECT MAILS:

Also, immediate mails will be delivered to the customers beginning with a stand-alone piece, which is folded, will be stated in good colours on high quality weight papers. Inside the brochure you will have all the required and essential details of LFC, explaining our menu, house of operation, rates and a map to discover our location.

2.9. PRODUCTS FUTURE:

Initially we will concentrate on capturing market talk about by reselling our dipped and fried chicken and our very good French fries and signature sauces. However, when grow ahead, we may also bring new additional groups to our menu, such as Buffalo Wings and Belgian Sandwiches.

Our future growth technique will be to offer franchises of our LFC manufacturer to other foodstuff businessman in the region. There various types of success of varied organisation in the same organization collection on growing globally.

2.9.1. MEALS WITH VALUE:

The LFC deals come with value for the customers. Sales of our items will not only produced from the revenue of our Belgian Fries, but also will be generated by the concept of innovation inside our packaging menu which is called the “value meal.” It is a deal which includes mixtures of our sandwiches, or burgers with presented Belgian Fries at far better value instead of us selling the average person items. We can also do customize revenue by advertising a fries which will be of bigger size called “Uber Fresin” to appeal to price sensitive clients

2.9.2. LARGE PARTIES OF PRIVATE NATURE:

We

can also handle private get-togethers and handle banquets, in addition to our brochures which will be listing our entrees on a daily basis.

2.10. SUMMARY OF MARKET ANALYSIS:

Consumer spending on junk food sector in London is certainly rising steadily from rose during the end of the year 2008, accompanied by the restoration of UK’s market from recession. The increasing quantity of new outlets such as for example fast food restaurants, fancy eating places and gourmet bakeries around UK features been showing a substantial expansion in this sector. Foodstuff spending is high as a share proportion of total buyer expenditures in UK

At the weekends there exists a much broader appeal as a huge number of customers go to the outlets and malls at a very broader perspective. At the weekend there is normally saturation of the actions. Market consists of:

Age – Youngsters who will be single and currently signed up for college and high school.

Family units – Young families along with children.

Gender – Both sexes will come to be targeted for the uses of producing sales..

People from medium income and individuals and other lower moderate income bracket persons will be more likely to visit us.

As per a study conducted of young persons aged 15 – 45 years, 80% of those interviewed like fast food. 90% of them like fast food on a regular basis, and 10% of these claimed that they want fast food “very much,” or “love” fast food. The following reasons were also supplied by the survey for purpose of positioning and increasing popularity of fast food:

Usually persons have 12 weeks with 52 weekends and there will be three long vacations a year. The majority of UK people like to shopping in high streets and malls, so when they carry out strolling around the shopping centers, they require a quick bite to support their activities.

Parents give additional money to kids and college students to buy lunch. Fast food is naturally their initial choice, because of the brand building effort that heavily targets how old they are group.

White-collar workers in offices have stopped bring lunch time, and enjoy chicken, hamburger, pizza or different fast food joints in the vicinity.

People in UK do not perceive fast food is a luxury, plus they appreciate it by bringing their spouse and children, especially if they have small kids.

2.10.1. SEGMENTATION OF MARKET:

Our target market segment is the younger technology as our primary market. Due to high extra-curricular actions among UK’s youth, it’s quite common for the youth to have got lunch inside shopping malls, and not at home.

The secondary market that we have chosen is the “Working class.” There are various major stores across London, including Westfields, Bretncross etc which will be the biggest retail center in the country, employing more than 50,000 workers.

LFC may be the alternative for an instant bite while store shopping the fancy boutiques in the region and is also a delightful attraction for tourists.

2.10.2. Necessities OF THE MARKET:

LFC sees out goal markets as having a broad range of needs. A recent analysis of consumer trends by Euromonitor has determined the below demands among our target marketplaces. Our core group:

Looking for swiftness in services

Likes to have assortment and flavors in the foods, preferably something fried

Insists upon a friendly, clean, and attractive environment

Wants an entertaining and fun experience

Adopts a worldwide lifestyle

Comes from several ethnic backgrounds

Enjoys eating out

Is computer literate

Has a dynamic lifestyle

There is large potential and growing marketplace needs which can be served by LFC despite of the actual fact there are so many competitors available in the market. Yet London Fried Poultry feels that its great taste and unique products and services and offers can attract an increasing number of clients.

2.10.3. COMPETITORS IN THE MAIN AREA:

Our main competition in this fast food restaurant segment will be the food outlets within the two 2 miles radius along the Oxford Street. In our area, there is Pret-a-manger, pizza hut, KFC, Subway, and others. Therefore the following are the primary competitors of LFC:

Pret-a-manger

Pizza hut

KFC

Subway

McDonalds

These are the brands of intercontinental fame and it can only be practical to attract clientele by making oneself more competitive and tasteful in when compared to above.

2.10.4. STRATEGY FOR SALES:

The sales approach is building and beginning new locations at different outlets in order for boost the revenue. However, this course of action will be placed into execution and execution when the main one “market tester” outlet initially showed potential expansion. As each individual site will continue establishing its local consumer bases over a benchmark amount of say first three years of operation, the goal of each store is £109,460 in total annual sales, with the original flagship store likely to earn almost £225,000 yearly.

2.10.5. FORECAST OF SALES

We anticipate the best peak on the weeks of July and August inside our volume of sales forecasted, because of the summer seasons and than in November and December time because of Christmas holidays. An incredible number of people from the EU countries visit Britain every year, mostly for shopping goal and dining. Then additionally, there are tourists anticipated from Parts of asia as well, this clarifies the jumped of sales in these last 8 weeks of the year. (all sums in below graph will be estimated figures in £)

2.10.6. MILESTONES:

During the original phase of firm being set up, the 4 founders (Tim, Joseph, Carol, and Amanda) will conduct setting up and implementation in constructing the brand name and picture and the building of LFC’s first store. The look and construction will take approximately 8 to 9 months. This is as well as the process of refinement and revision that will take the rest of the of the 12 month period before our starting in middle of the year 2010.

2.11. FINANCIAL Approach:

The company is currently privately owned by Tim, Joseph, Carol, and Amanda. Upcoming shares will be supplied after two consecutive years of functioning in UK.

2.11.1. START-UP Financing:

Currently, company has been owned its four original founders, who each will contribute £220,000 for the same sum of show, 25%. This will be the amount which is more than the amount necessary to cover start-up requirements, and provide the business with a dollars margin so that it can use for growth over the first 3 years. (all figures below are imaginary and assumed numbers.

Funding at startup

Fund for bills at Start-up

£71,700

Funds for Start-up Assets

£51,300

Total amount of cash required

£120,900

Assets

Non cash Resources at the Start-up

£41,500

Start-up Cash Requirements

£68,500

Additional sum of money Raised

£698,300

Cash Equilibrium at the Starting Date

£810,400

Total Assets

£861,200

Liabilities and Capital

Liabilities

Current amount of Borrowing

£0

Long term Liabilities

£0

Accounts Payable (Bills Exceptional)

£0

Other Current Liabilities (interest-free)

£0

Total Liabilities

£0

Capital

Planned Investment

Tim

£220,000

Joseph

£220,000

Carol

£220,000

Amanda

£220,000

Requirement for Additional Investment

£0

Planned Investment total

£880,000

Start-up loss (Start-up Expenses)

(£69,600)

Total Capital

£810,400

Total Capital and Liabilities

£810,400

Total Funding

£880,000

2.11.1. BREAK-EVEN Research:

The breakeven evaluation performed by us present that people need unit product sales over 9,700 per month to break even. It isn’t expected to make a profit upto the entire year three.

Break-even Analysis

Monthly Units to Break-even

9,706

Monthly Revenue for Break-even

£32,104

Data Assumptions:

Per-Unit Average Revenue

£3.31

Per-Unit Average Variable Cost

£0.73

Monthly Fixed Cost Estimated

£24,979

2.11.3. PROJECTED PROFIT AND LOSS:

The below is the projected Profit and Damage account which shows LFC will run baffled for the initial two years, using up some of the cash reserves at first invested by the founders. As product sales will surge, LFC can grow into new locations to aggressively pass on the recognition of brand. This increase in visibility will allow us to take up less costly locations off of Oxford Street, while preserving our flagship procedure, the first store, in a prime area.

Pro Forma Revenue and Loss

Year 1

Year 2

Year 3

Sales

£289,173

£659,328

£1,127,654

Direct Cost of Sales

£62,956

£134,916

£258,837

Other Costs of Sales

£0

£0

£0

Total Cost of Sales

£62,956

£134,916

£258,837

Gross Margin

£226,217

£524,412

£868,817

Gross Margin %

78.23%

79.54%

77.05%

Expenses

Payroll

£88,200

£262,000

£449,600

Marketing/Promotion

£10,000

£10,010

£10,020

Depreciation

£0

£0

£0

Rent

£174,010

£248,010

£298,020

Utilities

£2,550

£5,000

£8,000

New location setup

£25,010

£50,010

£50,020

Total Operating Expenses

£299,770

£575,030

£815,680

Profit Before Interest and Taxes

(£82,523)

(£140,557)

£53,146

EBITDA

(£82,523)

(£140,557)

£53,146

Interest Expense

£0

£0

£0

Taxes Incurred

£0

£0

£0

Net Profit

(£82,523)

(£140,587)

£53,226

Net Profit/Sales

-29.57%

-25.18%

4.77%

2.11.4. PROJECTED Money FLOW

The following may be the table that presents a Projection of the money Flow for LFC:

Pro Forma Cash Flow

Year 1

Year 2

Year 3

Cash Received

Cash from Operations

Cash Sales

£279,163

£558,327

£1,116,654

Subtotal Cash from Operations

£279,163

£558,327

£1,116,654

Additional Cash Received

Sales Tax, VAT, HST/GST Received

£0

£0

£0

New Current Borrowing

£0

£0

£0

New Other Liabilities (interest-free)

£0

£0

£0

New Long-term Liabilities

£0

£0

£0

Sales of Other Recent Assets

£0

£0

£0

Sales of Long-term Assets

£0

£0

£0

New Investment Received

£0

£0

£0

Subtotal Cash Received

£279,163

£558,327

£1,116,654

Expenditures

Year 1

Year 2

Year 3

Operating Expenditures

Spending in Cash

£88,200

£262,000

£449,600

Payments of Bills

£244,265

£430,245

£599,286

Subtotal Spent on Operations

£332,465

£692,245

£1,048,886

Additional Cash Spent

Sales Tax, VAT, HST/GST Paid Out

£0

£0

£0

Principal Repayment of Current Borrowing

£0

£0

£0

Other Liabilities Principal Repayment

£0

£0

£0

Long-term Liabilities Principal Repayment

£0

£0

£0

Purchase Other Current Assets

£0

£0

£0

Purchase Long-term Assets

£0

£0

£0

Dividends

£0

£0

£0

Subtotal Cash Spent

£332,465

£692,245

£1,048,886

Net Cash Flow

(£53,301)

(£133,918)

£67,767

Cash Balance

£677,899

£543,981

£611,748

3. CONCLUSION:

As discussed in detail above, a business system is a thorough document which requires a lot of attempts to be undertaken for its preparation. The above chart and table specifically the P&L and the money flow clearly implies that the company can change into profitability in the year three as compared to the initial 2 yrs. Also there are confident cash flows of the business. This shows that the business is viable and will be undertaken on a genuine basis.