Business Plan on Ready Meal

Executive summary
This business plan is prepared based on the idea of establishment of a business of ready meal in
UK. Based on the future prosperity of this market (Ashgate.com, 2014) it is decided to establish
a business that is recognized as “BhanchaGhar”.

Providing the best quality of food to the UK people in their home as they want is the mission of
BhanchaGhar. After conducting a feasibility research it is found that the overall feasibility of the
business is quite satisfactory.

Actually, the business will establish the product lines of ready meal of Nepalese, Japanese, and
other Asian Cuisine in the UK market by conducting local small and medium sized stores. By his
way people can get variation in their tastes. Raw materials of the production will be provided
from the local Nepalese and Indian wholesaler. In London the food development centre will be
established. In case of providing foods, they mainly focus on the delivery of quality and healthy
foods with rationale price. Again, BhanchaGhar offers its services to its customers throughout 24
hours seven days in a prompt manner. In this concept, it decided to have a good distribution
channel to provide services its customers. The target market of BhanchaGhar is the male
customers and higher income level customers as they prefer more ready meal.

Based on the undertaking of both researches, that is primary and secondary research of the plan,
it is assessed that the business proposal is viable (Finch, 2010). So successfully it can be
implemented. The business proposal of BhanchaGhar fits with the glove in that case, by going
target market demographics, their preferences, food habit as well as pricing expectation. With the
establishment of suitable operating process BhanchaGhar may sustain in the market which is
saturated and competitive in nature.

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Table of Contents
Executive summary......................................................................................................................... 2

List of figures .................................................................................................................................. 6

List of tables .................................................................................................................................... 8

1. INTRODUCTION ...................................................................................................................... 9

1.1 Rationale ............................................................................................................................... 9

1.2 Mission.................................................................................................................................. 9

1.3 Vision .................................................................................................................................. 10

1.4 Design and structure of the report ....................................................................................... 10

1.5 Relevant models and Information sources used.................................................................. 10

1.6 Assumptions........................................................................................................................ 10

1.7 Timescales for achievement ................................................................................................ 11

2. BUSINESS CONCEPT ............................................................................................................ 11

2.1 Description of Business Concept ........................................................................................ 11

2.2 The Concept Statement ....................................................................................................... 12

2.2.1 The Product / Service ................................................................................................... 12

2.2.2 Target Market............................................................................................................... 12

2.2.3 Value Added ................................................................................................................ 12

2.2.4 Specific Features .......................................................................................................... 12

2.2.5 Who Is Involved ........................................................................................................... 12

2.3 The Window of Opportunity............................................................................................... 13

3. Feasibility research of the business plan ................................................................................... 13

3.1 feasibility research plan ...................................................................................................... 13

3.2 primary and secondary data needs ...................................................................................... 14

3.3 research methodologies ....................................................................................................... 15

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 3.3.1 Data collection methods ............................................................................................... 15

3.3.2 Sample description ....................................................................................................... 16

3.4 feasibility research .............................................................................................................. 20

3.4.1 Product/ service feasibility........................................................................................... 20

3.4.2 Industry feasibility ....................................................................................................... 25

3.4.3 Market feasibility ......................................................................................................... 27

3.4.4 Organizational feasibility ............................................................................................. 30

3.4.5 Financial feasibility...................................................................................................... 31

3.5 ambition Vs Ability......................................................................................................... 33

4. THE BUSINESS MODEL........................................................................................................ 34

4.1 Business Model ................................................................................................................... 34

Key partner ................................................................................................................................... 34

Key activities ................................................................................................................................. 34

Value proposition .......................................................................................................................... 34

Customer relationships ................................................................................................................. 34

Customer segments ....................................................................................................................... 34

Key resource ................................................................................................................................. 34

Channels ....................................................................................................................................... 34

Cost structure ................................................................................................................................ 35

Revenue streams............................................................................................................................ 35

4.2 Core Strategy ...................................................................................................................... 35

4.2.1 Business Mission ......................................................................................................... 35

4.2.2 Product/Market Scope .................................................................................................. 36

4.2.3 Basis of differentiation ................................................................................................. 36

4.3 Competitive Advantage & Sustainability ........................................................................... 36

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 4.3.1 Competitive Positioning............................................................................................... 36

4.3.2 SWOT analysis ............................................................................................................ 37

4.3.3 Superior Value Proposition ..................................................................................... 38

4.4 Resource Needs .............................................................................................................. 38

4.5 Partnership Network ........................................................................................................... 40

4.6 Value Deliverables to the Customers .................................................................................. 40

5. BUSINESS PLAN .................................................................................................................... 40

5.1 Approaches to deliver the business model .............................................................................. 40

5.1.1 Industry, Company and Products ..................................................................................... 40

5.1.2 Key to Success ................................................................................................................. 41

5.1.3 Market .............................................................................................................................. 42

5.1.4 Marketing Plan ................................................................................................................. 42

5.1.5 Design and Development Plan ......................................................................................... 44

5.1.6 Management Team........................................................................................................... 45

5.1.7 Operations Plan ................................................................................................................ 46

Supply Chain Management ................................................................................................... 46

Operating Process ................................................................................................................. 47

Equipment ............................................................................................................................. 47

5.2 Business Concern and Risk..................................................................................................... 48

5.2.1 Risk identification ............................................................................................................ 48

5.2.2 Risk management ............................................................................................................. 49

5.3 Critical Success Factors (CSF) ............................................................................................... 49

5.4 Issues for Sustainability .......................................................................................................... 50

5.5 Financial Plan.......................................................................................................................... 50

5.5.1 Financial Objectives......................................................................................................... 50

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 5.5.2 Start-up Costs ................................................................................................................... 51

5.5.3 Assumptions..................................................................................................................... 52

5.5.4 Break Even Point Analysis .............................................................................................. 52

5.5.5 Projected Profit/Loss ........................................................................................................ 54

5.5.6 Projected Balance Sheet ................................................................................................... 55

5.5.7 Projected Cash Flow ........................................................................................................ 55

5.5.8 Contingency Planning ...................................................................................................... 56

5.6 Exit Strategy............................................................................................................................ 56

5.7 Viability of the plan ................................................................................................................ 57

Reference ...................................................................................................................................... 57

Appendix ....................................................................................................................................... 60

Appendix 1 ................................................................................................................................ 60

Appendix 2 ................................................................................................................................ 60

Appendix 3 ................................................................................................................................ 62

Appendix 4 ................................................................................................................................ 63

Appendix 5 ................................................................................................................................ 64

Appendix 6 ................................................................................................................................ 65

Appendix 7 ................................................................................................................................ 65

Appendix 8: Demographic question ......................................................................................... 66

Interview questions ................................................................................................................... 67

List of figures
FIGURE 1: PROCESS OF MARKETIGN RESEARCH ...................................................... 14
FIGURE 2: GENDER OF THE RESPONDENTS ................................................................. 17
FIGURE 3: RACES OF THE RESPONDENTS .................................................................... 18

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FIGURE 4: AGE OF THE RESPONDENTS ......................................................................... 18
FIGURE 5: EDUCATION LEVEL OF THE RESPONDENTS .......................................... 19
FIGURE 6: ANNUAL INCOME LEVEL OF THE RESPONDENTS ............................... 19
FIGURE 7: MARITAL STATUS AND PROFESSION ....................................................... 20
FIGURE 8: EXPECTATION OF THE CUSTOEMRS ......................................................... 21
FIGURE 9: CUSTOMERS PREFERENCE ............................................................................ 21
FIGURE 10: BUYING BEHAVIOUR OF THE CUSTOEMRS .......................................... 22
FIGURE 11: MALE RESPONDENTS BEHAVIOUR .......................................................... 23
FIGURE 13: INCOME LEVEL AND THE UYING BEHAVIOUR ................................... 24
FIGURE 12: FEMALE RESPONDENTS BEHAVIOUR ..................................................... 24
FIGURE 14: INDUSTRY LIFE CYCLE ................................................................................ 27
FIGURE 15: CURRENT MARKET POSITION .................................................................... 28
FIGURE 16: LOYALTY OF THE CUSTOMERS TOWARDS THE MARKET .............. 28
FIGURE 17: WHIC ONE SHOULD BE DEVELOPED IN THE READY MEAL ........... 29
FIGURE 18: CAPITAL STRUCTURE ................................................................................... 32
FIGURE 19: FORECASTED SALES VOLUME .................................................................. 33
Figure 1: competitive strategy of bhanchaghar ............................................................................. 37
FIGURE 2: CHOSEN SOURCES OF RECOMMENDATION TO SELECT THE
READY MEAL ........................................................................................................................... 43
FIGURE 3: ORGANIZATIONAL STRUCTURE OF BHANCHAGHAR ........................ 46
FIGURE 4: STARTUP CAPITAL OF BHANCHAGHAR .................................................. 51
FIGURE 5: CAPITAL STRUCTURE OF BHANCHAGHAR............................................. 52
FIGURE 6: TOTAL BREAK EVEN ANALYSIS OF BHANCHAGHAR ........................ 53
FIGURE 7: MONTHLY FORECASTED PROFIT OR LOSS OF BHANCHAGHAR .... 54
FIGURE 8: YEARLY FORECASTED PROFIT OR LOSS OF BHANCHAGHAR ........ 54
FIGURE 9: PROJECTED TOTAL NONCURRENT ASSETS& EQUITY OF
BHANCHAGHAR ...................................................................................................................... 55
FIGURE 10: PROJECTED CASH FLOWS OF BHANCHAGHAR ................................... 56

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List of tables

TABLE 1: DEMOGRPAPHIC POSITION OF THE SAMPLE ........................................... 16

TABLE 2: CUSTOEMR BUYING BEHAVIOUR IN DIFFERENT GROUPS ................ 22
TABLE 3: ORGANIZATIONAL POSITION OF BHANCHAGHAR ............................... 30
TABLE 4: START UP CAPITAL ............................................................................................ 31
TABLE 5: FORECASTED SALES VOLUME ...................................................................... 32
TABLE 6: AVERGAE PROFIT PERCENTAGE .................................................................. 33
Table 1: summary of bhanchaghar’s business model ................................................................... 34
Table 2: SWOT ANALYSIS OF BHANCHAGHAR .................................................................. 37
Table 3:requirED RESOURCES FOR BHANCHAGHAR ......................................................... 38
TABLE 1: SCHEDULE OF BUSINESS PLAN..................................................................... 44
TABLE 2: RELATED RISKS OF BHANCHAGHAR .......................................................... 48
TABLE 3: GENERAL FINANCIAL ASSUMPTIONS OF BHANCHAGHAR ............... 52
TABLE 4: BREAK EVEN ANALYSIS FOR EACH PRODUCT LINE ............................ 53
TABLE 1: GENERAL ASSUMPTIONS ................................................................................ 60
TABLE 2: CALCULATION OF PER UNIT WEIGHTED AVERAGE SELLING PRICE
& VARIABLE COSTS .............................................................................................................. 60
TABLE 3: TOTAL BREAK EVEN ANALYSIS ................................................................... 61

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1. INTRODUCTION

This business plan is prepared based on the idea of establishment of a business of ready meal in
UK. This report is prepared as a document of business proposal that is useful in case of
collecting funds from owners and bank loan as well as providing operational plan for the
operation of this business. All of the information in this report is compiled with great care
through analysing and mentioning reference of the analysis.

1.1 Rationale

Now days the demand of ready meal is increasing in UK as people want the best quality of food
in their home. As people are getting busier, they are now depending on ready meal for the best
quality of food in their home. Increasing number of single family also causes the increasing
demand of ready meal in UK. At present, worth of the market of ready meal is 38.8 billion pound
with a compound annual growth of 3.1% after 2007. And the consumption volumes is increasing
with a CAGR of 1.7% between 2007 and 2011(Gov.uk, 2014), that indicating the overall rising
market consumption. So, in future the expected growth of the market will lead an optimistic
number as well. Here, in case of business plan, I have decided to start a ready meal business
among a lot of business plan, because of the future prosperity of this market. And as the name of
“BhanchaGhar” all ready meal will be recognized.

1.2 Mission

The mission of BhanchaGhar is as follows:

 Providing the best quality of food to the UK people in their home as they want.
 Establishing a brand name by increasing the number of order in the local market.
 Developing its employees through the proper training as well as proper
motivation (Bach, 2005).

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1.3 Vision

In future, the aspiration of BhanchaGhar is to increase its product line as well as customer base
by communicating its product with outsized supermarket chain.

1.4 Design and structure of the report

There are mainly four parts in this report, they are:

 Description of Business concept: this part is included with the identification of the core
business concept, products and services proposed to be delivered, the target market of the
business, specific features of the business and delivered products as well as the window
of opportunity.
 Feasibility research: this part is related to the market research. This is done based on
both qualitative and quantitative studies through which can be found the key areas of
feasibility research, such as, product or service, industry where the company belongs,
market feasibility, organizational structure, financial feasibility etc.
 Development of the business model: defines the identification of appropriate business
model, its related elements, core strategy of the business, its competitive advantage etc.
 Business plan: this refers to the step-by-step approach to deliver the business model,
viability of the plan as well as its required budgets & investment etc.

1.5 Relevant models and Information sources used

In order to gather data for the development of the business model, here is used both primary and
secondary data sources, such as, questionnaire, focus group where the different people of London
were asked about their habit and demand for the ready meal, journal, websites, news papers and
pervious research. The survey method is used to research about the ready meal business. SWOT
analysis also performed.

1.6 Assumptions

These are the assumptions of BhanchaGhar those are estimated in the beginning of its operation,
within four years, it would obtain:

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  The sale growth will be approximately 20% for the first 4 years. Then the growth will be
assumed constant at 4% for the rest of the year or life cycle.
 Here, on an average profit would be more than 15%. So, within short time this profit can
be contributed able to recover the investment.
 Product related other costs will be declining over the time period.

1.7 Timescales for achievement

After considering the feasibility research of the business it is needed to identify the model of the
business. Then required to look for a suitable location where the business will be set up, to buy
Plant and equipment, machinery for its operation. It may require minimum ten months to activate
the business.

2. BUSINESS CONCEPT

2.1 Description of Business Concept

Now days the demand of ready meal is increasing in UK as people are getting busier and the
number of single family is also increasing. In future the expected growth of the ready meal
market will lead an optimistic number as well (Ashgate.com, 2014). Based on the future
prosperity of this market it is decided to establish a business that is recognized as
“BhanchaGhar”. Providing the best quality of food to the UK people in their home as they want
is the mission of BhanchaGhar. Actually, the business will establish the product lines of ready
meal of Nepalese Cuisine in the UK market by conducting local small and medium sized
stores.The company is planning to provide four items to its customers, such as, BhanchaGhar
Dry Meat Curry, BhanchaGhar Chicken Curry, BhanchaGhar Dumpling and BhanchaGhar
Frozen foods. Raw materials of the production will be provided from the local Nepalese and
Indian wholesaler. In London the food development centre will be established.

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2.2 The Concept Statement

2.2.1 The Product / Service

Based on the demand and expectation of customers BhanchaGhar is trying to offer the product
lines of ready meal of Nepalese Cuisine in the UK market. The company is planning to provide
four items to its customers, such as, BhanchaGhar Dry Meat Curry, BhanchaGhar Chicken
Curry, BhanchaGhar Dumpling and BhanchaGhar Frozen foods.

2.2.2 Target Market

Actually, most of the customers having more income capacity prefer the ready meal than other
income level. Again the male customers are more likely to prefer the ready meal foods than
female customers as they are too busy to make their own foods. So, target market of
BhanchaGhar is the male customers and higher income level customers as they prefer more
ready meal.

2.2.3 Value Added

BhanchaGhar will provide different products that are superior to others with special
diversification. Along with the product lines of ready meal of Nepalese Cuisine different country
foods like Japanese, Chinese and Other Asian foods with ready meal item will also be delivered
by the business. It will be specialized in delivering quality foods. At the same time, it will deliver
foods in a rapidly manner with 24 hours services.

2.2.4 Specific Features

The main objective of BhanchaGhar is to provide healthy foods with rationale price. It is
dedicated to serve its customers throughout 24 hours seven days in a rapidly manner. In this
concept, it decided to have a good distribution channel to provide services its customers (Bach,
2005).

2.2.5 Who Is Involved

In order to operate the business, BhanchaGhar have decided its organizational plan which is
related with various activities and departments. In this case the business may needs to have
employees of Operation Department, Production department, marketing department, customer
Service Department, Financial department and HR department etc. To get financial support from

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the bank loan, it is required to get help from financial advisor. Besides, in order to set up the
business, it is needed to get help from a lawyer also.

2.3 The Window of Opportunity

In future, the aspiration of BhanchaGhar is to increase its product line as well as customer base
by communicating its product with outsized supermarket chain, such as, Tesco, Iceland and
Sainsbury throughout UK. This may be challenging for the business as the market is already
saturated. So, this will be happened BhanchaGhar by providing unique service and product
quality that is specialized on the healthy value of foods. Besides these, improving the quality of
management, customer services and effort of the team will help to make the business to become
successful (Barrow, Barrow and Brown, 2008).

3. Feasibility research of the business plan

3.1 feasibility research plan

The success of the business depends on many issues where the main significant factor is
identifying the feasibility of the plan to be introduced in the market. So, identifying the needs of
the customers, the existing products, industry, the wants and expectation of the customers, and
the overall macro variables should be properly done before launching the products in the market.
In this case the business organization tries to do the market research constantly to track the trends
of the market and the perception of the customers properly (Siegel, 1993). So, the market
research is always recommended to be followed before going to finally launch the products and
here the MR should be done for several reasons like to identify the potential customer for the
proposed products or services, evaluating the industry and its prospect in the future, setting the
objectives and targets for the future, identify the gap in the market, have an idea about the
perception and motives of the customers and finally to make some strategies (Weiers, 2004).).
So, an effective marketing strategy should be done in the following ways that will be followed in
this research;

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 determining the problems and research
objectives

developig the research plan

methodologies build up

collection of information

analysis of the information

present the findings

making the decisions

FIGURE 1: PROCESS OF MARKETIGN RESEARCH

Source: Pinson (2008).

So, the marketing research always should be followed in such a way so that the information is
collected properly so that the desired outcomes and the objectives are met. Here, for collecting
the information for the feasibility study of the product, market, industry will be done through the
different process (McDaniel and Gates, 2005). First of all the objectives of the research will be
met then the proper information will be collected from both the secondary and the primary
sources for the analysis. After analysis of the collected research and findings the proper decisions
will be made.

3.2 primary and secondary data needs

Both primary and the secondary data are required for this research. The primary data were
collected through the questionnaire and the focus group where the different people of London
were asked about their habit and demand for the ready meal (Burns and Bush, 2000). While
collecting the primary data some issues were considered here so that the data can be collected

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properly. The primary data were collected within limited time and considering the sample of 100
that can properly represent the full population. There were some disadvantages of primary data
faced by the researcher like the primary data is more costly, time consuming, and require more
effort. However, primary research is more relevant and accurate as the data are collected by the
researcher that is more reliable for the research.

In this research and feasibility study for the ready meal business, the secondary data is also used
where most of the data were collected from the journal, websites, news papers and pervious
research. The major disadvantages of the secondary data are it may be less reliable and unfit for
the research. However, the secondary data can easily be collected by the researcher within short
time and limited cost ((Burns and Bush, 2000).

Here, data are collected from both the primary and the secondary sources and some issues like
Irrelevant Data, Age of the Data, Quality of Research and Inadequate Facts were properly
considered by the researcher.

3.3 research methodologies

Marketing research can be done in five ways like survey, focus group, interview, observation and
field trials. Here the research about the ready meal business was done considering the survey
methods. The respondents are provided different questionnaire then the data were collected both
in the numerical and qualitative form. So the research was done in the mixed methods.

3.3.1 Data collection methods

Data can be collected both in quantitative and qualitative form and in both ways that is mixed
method (Blackwell, 2008). Here the data were collected through the questionnaire and the semi
structure interview methods that mean the research was done in the mixed method. However, the
quantitative data were collected through the questionnaire where the respondents were asked
different questions to respond under 5 scales to collect the data in the numerical form. On the
other hand, interview was made to find out the perception and opinion of the customers about the
ready meal in the market.

The interview was done to ask the question to the customers where they were asked about their
background and what is their perception of the ready meal and whether the current market is able

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to provide the healthy foods and other requirements. The sample of 100 respondents was asked
about the ready meal and all the respondents were selected randomly.

Finally the secondary research was done to analyze the industry and the market where different
data were collected by the researcher considering the published data from different secondary
sources like article, news papers, website etc.

3.3.2 Sample description

The demographic position of the sample is shown in the following figure and table;

TABLE 1: DEMOGRPAPHIC POSITION OF THE SAMPLE

Diameters Range Valid Respondents Percentage

Gender Male: 62 62
Female: 38 38
Races British 30 30
Other European 25 25
Asian 24 24
African 11 11
others 10 10
Age >20: 7 7
20-30: 20 20
30-40: 28 28
40-50: 25 25
50-60: 15 15
60 ABOVE 5 5
Education High School/College 26 26
Undergraduate 34 34
Postgraduate 23 23
PhD: 17 17
Income £8,000 and bellow 45 45
£8,001-12,000 20 20
£12,001- 20000 21 21
£20,001-25,000 9 9
£25,001 and above 5 5

Profession Business 19 19
retired 14 14
Job holder 67 67

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Marital status Single 30 30
Married 52 52
Divorced 18 18

Gender of the respondetns

38%
Gender Male:
Gender Female:
62%

FIGURE 2: GENDER OF THE RESPONDENTS

Source: made by author.

The total gender respondents were 38% female and 62% male. So, the most respondents of the
sample was male and the female number

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 Races of the respondents

10% British
11% 30%
Other European
Asian

24% African
25% others

FIGURE 3: RACES OF THE RESPONDENTS

Source: Author

Though the sample size was 100 and the location was mainly in London city there were different
races. Here, 30% were British, 25% were European, 24% were Asian, 11% were African and
10% were others.

Age of the respondents

30 28
25
25
20
20
15
15
10 7
5
5
0
>20: 20-30: 30-40: 40-50: 50-60: 60 ABOVE

FIGURE 4: AGE OF THE RESPONDENTS

Source: Author

There were different age group to find out which age group should be targeted for the business of
ready meals in London. Here, among 100 respondents 7 were below 20, 20 respondents were

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between 20 and 30, 28 respondents were between 30 and 40, 25 were between 40 and 50, 15
were between 50 and 60 and rest of the was 60 above.

education level

17%
26% High School/College
Undergraduate
23% Postgraduate
PhD:
34%

FIGURE 5: EDUCATION LEVEL OF THE RESPONDENTS

Source: Author.
The 26% respondents were from high school, 34% from undergraduate, 23% from post graduate
and 17% from PHD. This was done to measure whether education level has the effect for the
demand of the ready meal in London.

Income level
50 45
45
40
35
30
25 20 21
20
15
9
10 5
5
0
£8,000 and bellow £8,001-12,000 £12,001- 20000 £20,001-25,000 £25,001 and above

FIGURE 6: ANNUAL INCOME LEVEL OF THE RESPONDENTS

Source: Author

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There were different income level of the respondents were 45 respondents earn less than 8000
pound, 20 earns between 8000 and 12000, 21 earns between 12001 and 20000 and 5 earns more
than 25000 pound per year.

marital status and profession

80
70 67

60 52
50
40
30
30
19 18
20 14
10
0
Business retired Job holder Single Married Divorced
Profession Marital status

FIGURE 7: MARITAL STATUS AND PROFESSION

Source: Made by author.

The above figure represents that from the 100 respondents total 19 were engaged with for their
own business, 14 were retired and 67 were job holder. On the other hand, in case of marital
status 30 were single, 52 were married and 18 were divorced.

3.4 feasibility research

3.4.1 Product/ service feasibility

BhanchaGhar is trying to offer the products that customers prefer more considering their demand
and expectation. Customers have different preferences but BhanchaGhar tried to find out the
most common things that customers prefer more from the ready meal company. Here, the survey
report is shown below;

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 what would you expect from a ready meal
business organization
60 56

50

40 34 32 30
30 25
21 21 22 21 23
20 20 20 19
20
13
8 8
10 5 5
2
0
1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5
quality low price good packaging distribution

FIGURE 8: EXPECTATION OF THE CUSTOEMRS

Source: made by author

Here, from the above figure, it is clear that the customers consider the quality of the ready meal
more than other features. Her, 56% customers highly consider the quality of the ready meal then
the price, packaging and distribution system of the company is preferred by them. The customers
consider a standard preferable distribution channel for the ready meal.

which foods do you prefer more

35

30

25 more unlikely
20 unlikely

15 neutral
likely
10
more likely
5

0
ready meal home made meal fast foods restaurants

FIGURE 9: CUSTOMERS PREFERENCE

Source: Made by author

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Before launching the foods, BhanchaGhar tried to find out how many customers prefer the ready
meal foods. Here, maximum customers prefer the ready meal foods shown by the more likely
column. Then they prefer the home made foods more likely. The biggest challenge is the
customers avoid the fast foods shown by the fast foods section. So, the demand for the ready
meal is high in the market.

what is your buying behaviour about the ready

meal
45
40
I prefer ready meal in my daily food
35
menu
30
25 I will be using the ready meal in the
20 future
15 I would like to buy regulary
10
5
My full family member prefers
0
ready meal
more unlikely neutral likely more likely
unlikely

FIGURE 10: BUYING BEHAVIOUR OF THE CUSTOEMRS

Source: made by author

Then BhanchaGhar tried to measure how the customer prefers buying the ready meal form
different shops. Here, the customers’ respond was like the following where the customers less
want the daily meal in their food menu though it is easy for them to have the ready meal. In this
case BhanchaGhar tried to segment that should be targeted for the ready meal. The following
table will be helpful in this regards.

TABLE 2: CUSTOEMR BUYING BEHAVIOUR IN DIFFERENT GROUPS

Ready Gender income level

meal
buying
male female £8,000 and £8,001- £12,001- £20,001- £25,00
bellow 12,000 20000 25,000 1 and

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 above
F % F % F % F % F % F % F %
Daily 3 0.6129 1 0.36 9 0.2 5 0.2 7 0.3333 6 0.6666 3 0.6
8 03 4 8 5 33 67
Weekly 1 0.1774 1 0.47 1 0.3111 6 0.3 7 0.3333 2 0.2222 1 0.2
1 19 8 4 4 11 33 22
Irregul 7 0.1129 5 0.13 1 0.2888 5 0.2 4 0.1904 1 0.1111 1 0.2
ar 03 2 3 89 5 76 11
never 6 0.0967 1 0.02 9 0.2 4 0.2 3 0.1428 0 0 0 0
74 6 57
total 6 1 3 1 4 1 2 1 2 1 9 1 5 1
2 8 5 0 1

Here, it is found that the customers preferred the daily meal in different ways. The male and
female difference is shown in the following figure;

male

10%
Daily
11%
Weekly
18% Irregular
61%
never

FIGURE 11: MALE RESPONDENTS BEHAVIOUR

From, the above figure, it is clear that most of the male customers prefer the ready meal foods as
they are too busy to make their own foods. In this case the male customers should be more
targeted as they buy the food more frequently.

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 female
3%

13%

37% Daily
Weekly
Irregular
never
47%

FIGURE 12: FEMALE RESPONDENTS BEHAVIOUR

Here, female customers, buy the ready meal more less as they prefer the home made foods than
the ready meal from the market.

0.7

0.6

0.5
£8,000 and bellow
0.4 £8,001-12,000
£12,001- 20000
0.3
£20,001-25,000
0.2 £25,001 and above

0.1

0
Daily Weekly Irregular never

FIGURE 13: INCOME LEVEL AND THE UYING BEHAVIOUR

Source: made by author

Finally, in case of the income level the customer with more income capacity prefer the ready
meal than other income level. So, BhanchaGhar should focus more on the male customers and
higher income level customers as they prefer more ready meal. On the other hand, they prefer the
24 | P a g e
better distribution system that also should be considered for the male customers and others. So,
there is gap in the market and the demand will increase in the future.

3.4.2 Industry feasibility

The industry of ready meal that means it belongs to the food industry and the ready industry of
UK is more competitive as there are many big players in the market. The ready meal market of
the UK is going high daily as the number of the single family is rising and the people are getting
busier. The market is worth of 38.8 billion in 2012 that represents the compound annual growth
of 3.1% after 2007 (Pseltd. 2014). This rate is expected to be 6% in 2016. The overall market
consumption is rising where the consumption volumes with a CAGR of 1.7% between 2007 and
2011, to reach 5.2 billion kg in 2011. So, the expected growth of the market will lead the total
value of the market to 53.4 billion dollar (Agency, 2014). The full industry can be analyzed
through the Porters five forces analysis;

 Bargaining Power of buyers: In UK most of the ready meal provider companies are
imposing the almost same price hence the switching cost is lower. As switching cost is
lower in the market the bargaining power of the customers is lower and the products are
sold with fixed price and no negotiation.
 Bargaining power of suppliers: As there are many competitors striving to capture the
market and the customers prefer the healthy foods with some attraction and special taste
it is tough for the manufacturer to get the ingredients of the foods easily hence the
bargaining power of the suppliers is high (BBC News, 2014). However, the long term
contract with the suppliers can reduce the bargaining power of the suppliers.
 Competition among the existing companies: the competition among the existing
companies is high as there are many companies coming in the market but the growth rate
is not so high so the only way to increase the growth of the firm is to switch the
customers from other competitors that pushed the market towards the severe competition.
The major competitors who are dominating the market are; Bartholdi Ltd, Look What We
Found!, Cauldron Foods Ltd, Chesswood Foods, COOK Ready Meals, Creative Foods,
Quattro Foods Limited, Crispy Snacks Ltd, Dalepak Foods, S&L Catering Limited,
DelishDish Foods, Dragonfly Foods, Gluten Free Foods Ltd, Goodlife Foods Ltd,

25 | P a g e
 Kettleby Foods, Lodge Farm Kitchen etc (BBC News, 2014). These companies are the
top leader of the market where the market is more competitive.
 Threat of new entrants: The market requires more capital and the existing firms have
already made many loyal customers in the ready meal industry where the new firm will
face difficulties to face the competition and make many customers (Euromonitor.com,
2014). Though the threat of new entrants is low, still now there are many companies
operating the business just recently and made a good place in the market. However, the
threat on new entrants is moderate for the ready meal industry.
 Threat of substitute products: the major substitute products for the ready meal are the
fast foods, homemade foods and other restaurant foods. However, as the customers of fast
foods is decreasing and the customers are now switching to more healthy foods the threat
of substitute products is not high (FoodManufacture.co.uk, 2014).. But other foods can
capture the markets if they provide better promotion and quality foods in this case the
threat of substitute products will be high.

So, form the analysis the industry is increasing and the competition in this industry is high where
the many companies are doing the business with almost same competitive advantage.

Ready meal industry Life cycle:

The ready meal industry is not matured now but the market is growing. But the market will soon
be saturated where the companies have to make different policies like product penetration, new
product development, diversification or new customer development for the business. So, now the
industry is in the growth phase and it is going to be more saturated.

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FIGURE 14: INDUSTRY LIFE CYCLE

Source: Kumar and Day, 1998.

3.4.3 Market feasibility

As BhanchaGhar is planning to start the ready meal business the biggest challenge is realising
the trends and position of the market. Here, both the primary and the secondary research is
shown in the following;

Primary research:

The customers are asked about the current market position of the ready meal industry of UK.
Here, the most of the customers disagreed with the effectiveness of the market and they think the
market should be developed more. On the other hand, the customers think that the price is not
stable and they market should emphasize more on the healthy foods. Hence, the ready meal
market needs to be developed and some new products should be brought.

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 35
31
30 29

25
25 24
22 The current ready meal market is
20
20 18 effective
They provide the healthy foods
15
15 13
the price is rationale in the ready
9 meal market
10
7 the destribution channesl and other
facilities is available
5

0
strogly disagree neutral agree strongly
disagree agree

FIGURE 15: CURRENT MARKET POSITION

Source: Made by Author

The following figure states the liability of the customers in the ready meal market industry. Here,
most of the customers think that though the market is not properly providing the products still
now there are many issues to be developed. They think that still now they are satisfied and will
be buying the foods from the ready meal market. This is because the ready meal market is a
demand able market but requires more changes.

I am happy with the current ready

meal
I will recommend others to buy the
ready meal
I will be buying the ready meal in the
future

0 10 20 30 40

FIGURE 16: LOYALTY OF THE CUSTOMERS TOWARDS THE MARKET

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Then customers are asked to find which one should be developed to improve the market and to
meet their demands. The quality of the foods and the new products development gets more
priority. So, customers in the ready meal market want more quality foods and items from the
market.

More items

Online Sales
more likely
likely
New product
neutral
unlikely
Availability more unlikely

Quality

0 5 10 15 20 25 30 35

FIGURE 17: WHIC ONE SHOULD BE DEVELOPED IN THE READY MEAL

Source: made by author.

In addition in the above it is shown that the ready meal industry is more perfect for the high
income level customers and the male customers prefer the ready meal foods more where the
female customers prefer the home made meal. So, the customers should be given priority
considering their preference for the ready meal.

Secondary research:

UK ready meal market is more growing market here the customers prefer the ready meal as the
number of the single family is increasing who wants the ready meal. Besides that most of the
citizens of UK are too busy to make their foods at home and the fast food industry is not
preferable due to its health risk (MarketWatch, 2014). Here, in the ready meal market, the chilled
ready meals are considered 50% of the total market this sector grew more than twice the rate of
the frozen ready meals in 2012 (FoodManufacture.co.uk, 2014). Here, customers prefer the

29 | P a g e
flavour of the foods besides the quality of the foods and in that case new recipes and items
inspired by various ethnic cuisines are being launched into the market. I addition, there is a niche
in the market for children's ready meals. 70% of the customers prefer the vegetables and agro
based foods who are the buyer of the ready meal market (Euromonitor.com, 2014).

3.4.4 Organizational feasibility

As the ready meal industry is more competitive the success of the business lies more on the
successful service providing to the customers. Hence a strong organizational structure should be
developed. BhanchaGhar will divide the activities of the full organization under the few
departments where different departments will have different activities that are shown below;

TABLE 3: ORGANIZATIONAL POSITION OF BHANCHAGHAR

Departments Personnel responsibilities

Operation 11 One head of the department will supervise it and the overall
Department operation of the ready meal manufacturing will be supervised by
the team.
Production 15 The production and its effectiveness will be monitored by this
department team and the leader will help to produce properly.
Marketing 8 The products of BhanchaGhar will successfully be promoted by
department this department to the customers with appropriate strategies
Service 5 The complain and other services like online ordering and
Department procession will be done in this department
Financial 6 The feasibility of the products and different financial plans will be
department made by this team
HR 6 The full human resources will be controlled and monitored by this
department department and all the employees will get proper training and
practices here.
The full team will be controlled by the CEO of the company where under his supervision every
team or department head will control the full department. There will be democratic leadership
and organizational structure to control the full activities but the department head wills manage
the team. So, the organizational structure will be more feasible for the success of the business.

30 | P a g e
Business process:

BhanchaGhar will do the business in different ways where the major business activities and
process are shown below;

 Raw material collection

 Procession the materials
 Manufacturing the products
 Packaging the products
 Bringing the products in the store room
 Sending the products in the local branch
 Marketing the products
 Selling and serving the customers
 Taking orders from the customers
 Delivering the products to the customers with home delivery

All of these activates will properly be managed to monitor the full system and increase the
efficiency of BhanchaGhar.

3.4.5 Financial feasibility

The start of requiems and costs for starting the ready meal business is shown below;

TABLE 4: START UP CAPITAL

Items Costs in pound (000)

Plant and equipment 10
Machinery 8
House rent 3
Marketing 5
materials 3
Packaging machine 2
Working capital 4
total 35

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The total cost required for the initial time is 35,000 pound. The full capital will be managed by
the following ways;

40%
own capital
Bank loan
60%

FIGURE 18: CAPITAL STRUCTURE

The 60% capital will be managed by the owner then rest of the business funds will be managed
by the bank loan. BhanchaGhar is planning to offer the following four foods items for the
customers at the initioan time;

1. BhanchaGhar Dry Meat Curry (P1)

2. BhanchaGhar Chicken Curry(P2)
3. BhanchaGhar Dumpling(P3)
4. BhanchaGhar. Frozen foods (P4)

Based on this the forecasted salesand volume of the sales is shown below;

TABLE 5: FORECASTED SALES VOLUME

Products Year 1 Year 2 Year 3 Year 4

Forecasted sales quantity P1 50000 60000 72000 86400
P2 70000 84000 100800 120960
P3 30000 36000 43200 51840
P4 20000 24000 28800 34560

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 140000

120000

100000
P1
80000
P2
60000 P3

40000 P4

20000

0
Year 1 Year 2 Year 3 Year 4

FIGURE 19: FORECASTED SALES VOLUME

Source: Made by author

Here, the growth of the sales is forecasted assuming the 20% growth every year for the first 4
years. Then the growth will be assumed constant at 4% for the rest of the year or life cycle.

TABLE 6: AVERGAE PROFIT PERCENTAGE

P1 P2 P3 P4
Total cost 0.8 0.7 0.4 0.55
sales per unit 1 0.9 0.55 0.72
Percentage of profit 0.2 0.2 0.15 0.17
Here, the average profit would be more than 15%, so other costs will be made considering the
net profit of the product. So, the profit can be easily managed and the firm will be able to recover
the investment within short time.

3.5 ambition Vs Ability

The ambition for BhanchaGhar is to provide the different products that are superior to others
with special diversification. The company will provide the different country foods like Japanese,
Chinese and Asian foods with ready meal item to capture more customers. The major issues
related to this are BhanchaGhar will be specialized to deliver the foods more quickly and there
will be 24 hours services. So, the ambition of the company is to capture a lot of customers and
making the better place in the market making a good brand image. The growth is assumed to eb

33 | P a g e
20% for the first 4 years. Here, the problem is that the market is already slightly saturated and
there is many companies offering the products to the customers. Hence, the 20% growth for hte
first 4 years may be challenging. However, with unique service and product quality specialising
on the healthy value of the foods will be preferred. The better quality management, customer
services and effort of the team will help to make the ambition more reliable.

So, the overall feasibility of the business is quite satisfactory as the products to be offered by
BhanchaGhar would be more focusing on the healthy foods with rationale price. The market is
growing and the startup capital for this business is not so high. So the feasibility is satisfactory
and there will be more potentiality in this sector.

4. THE BUSINESS MODEL

4.1 Business Model

BhanchaGhar is a business of ready meal that will provide the best quality of food to the UK
people in their home as they want. And, the business will establish the product lines of ready
meal of Nepalese Cuisine in the UK market. Here is the depiction of business model of
BhanchaGhar:

Table 7: summary of bhanchaghar’s business model

Key partner Key activities Value Customer Customer

 Myself Serving best proposition relationships segments
 Expert quality of food at  High Customer order  Male
home in a prompt quality by phone call or custom
manner food e-mail and ers
 Customer promptly they  Higher
services will serve based income
on their order level
custom

Key resource Channels ers

34 | P a g e
  Experts &  Marketing
advisors campaign
 Marketing  Visit of in-
& store
manageme  Online
nt team marketing
 Machinery,  Offline
plant & marketing
equipment

Cost structure Revenue streams

From the revenue streams all of the costs, that is fixed From the delivery of food at
and variable costs are recovered destination
Source: made by author. (Cross and Richey, 1998)

4.2 Core Strategy

Through the identification of core strategy of a business, its sustainability and competitive
advantage can easily be understandable. There are three basic elements to identify the core
strategy of a business (Finch, 2010): mission of the business, scope of product/market and
differentiation basis.

4.2.1 Business Mission

The mission of BhanchaGhar is as follows:

 Providing the best quality of food to the UK people in their home as they want.
 Establishing a brand name by increasing the number of order in the local market.
 Providing improved services to its target market in order to raise the number of
order in the local market.
 Developing its employees through the proper training as well as proper
motivation (Cohen and Cohen, 1995).

35 | P a g e
4.2.2 Product/Market Scope
Recently UK ready meal market is more growing market. This is because of the increase in
number of single family as well as their busyness. Moreover, people are so much health
conscious as they do no prefer to have fast food.

However, considering the demand and expectation of customers BhanchaGhar is trying to offer
its products. Now, BhanchaGhar is trying to offer the product lines of ready meal of Nepalese
Cuisine in the UK market. Along with the product lines of ready meal of Nepalese Cuisine
different country foods like Japanese, Chinese and Other Asian foods with ready meal item will
also be offered by the business.

4.2.3 Basis of differentiation

BhanchaGhar will provide ready meal of Nepalese, Japanese, Chinese and Other Asian foods in
the UK market. By his way people can get variation in their tastes. In case of providing foods,
they mainly focus on the delivery of quality and healthy foods with rationale price. Again,
BhanchaGhar offers its services to its customers throughout 24 hours seven days in a prompt
manner. In this concept, it decided to have a good distribution channel to provide services its
customers.

4.3 Competitive Advantage & Sustainability

Competitive Advantage & Sustainability of BhanchaGhar can be understandable through the
understanding of its Competitive Positioning, SWOT Analysis and its value proposition
(Osterwalder, Pigneur and Clark, 2010).

4.3.1 Competitive Positioning

It seems that Bird’s Eye, Tesco, Sainsbury, Iceland and Findus etc. are the direct competitors of
BhanchaGhar (Harvard Business Review, 2014).

36 | P a g e
Figure 20: competitive strategy of bhanchaghar

Source: Porter’s generic strategies (1985)

BhanchaGhar will provide broad categories of ready meal with a reasonable price, which means
it is, will be a cost leader in the market.

4.3.2 SWOT analysis

Table 8: SWOT ANALYSIS OF BHANCHAGHAR

S- Strength W- Weakness

 Efficient management  Unavailability of bank loan

 Presence of expertise  Absence of brand reputation
 Democratic leadership
 Location of the business
 Prompt delivery system
 Proper trained employees
 Diverse menu

O- Opportunity T- Threat

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  Innovation of product lines  Rivalry among existed firms
 Expansion of the business  Competitors strong competition
throughout the country  Departure of the expertise
 Depression in the economy

4.3.3 Superior Value Proposition

Providing high quality food to customers at their home in a prompt manner is the proposition of
BhanchaGhar.

4.4 Resource Needs

Table 9:requirED RESOURCES FOR BHANCHAGHAR

Infrastructures  Acquiring loan form bank, attaining feasibility research on product and
services, market, industry, organization and financials.
S Human  Managing and administrating collector of raw materials, personnel of
U Resource kitchen, advertising personnel, delivering personnel, job applicants
P Management
P
O Technology  Using their own websites can get order
R Development  Using IT systems may ensure the In-time order and delivery as well as
T consumer research
I  Technology based new methods of promotion can be discovered for
N example, launching mobile applications
G

A
C Procurement  Purchasing logistics vehicles for

T  Controlling the supply chain as well as its quality

I  Purchasing equipment of kitchen & bar, ingredients of cuisine etc.

V  Attachment with media

38 | P a g e
I  Going green
T
I
E
S

PRIMARY Providing Marketing Delivery in a

ACTIVITIES ready meals campaign prompt
at the home manner
of customers Visit of in-
store Highly
customer
Online or oriented
Offline service
marketing
Clean
environment

Accuracy of
order

Employee
training &
motivation
In bound logistics Operations Outbound Marketing Service
logistics and Sales

Source: made by author.

From the above table, it is clear that in case of operating business of BhanchaGhar, it needs to
have such types of resources that may support its primary activities as well as supporting
activities (McKeever, 2002).
39 | P a g e
4.5 Partnership Network
In the section 2.2.5, it is described who is involved with BhanchaGhar. Actually, it is a sole
proprietorship business, where, 60% of financial support will come from bank loan. So, if their
occurred any loses in the business, firstly it should meet up the bank loan, then remaining would
go to the proprietor.

4.6 Value Deliverables to the Customers

Functional: providing marketing campaign, visit of in-store, online or offline marketing,
introduction of technology based new promotional methods (Osterwalder, Pigneur and Clark,
2010).

Emotional: delivering products at desired destination in a prompt manner, and serving 24 hours
seven days.

Competitive: competitive strategy of BhanchaGhar cost leadership in nature

Price: Pricing strategy would be competitive and reasonable comparing with others in the
industry

Ethics: BhanchaGhar uses different utensils for the cooking utensils of vegetarians & non
vegetarians. Religious beliefs are also considered. Local raw materials are used in order to
support the local economy (Pinson, 2008).

5. BUSINESS PLAN

5.1 Approaches to deliver the business model

5.1.1 Industry, Company and Products

Ready meal business of UK mainly belongs to the broad category of food industry and in
specifically the ready industry. Market of ready meal is growing popularity as the number of the
single family is increasing as well as their busyness is also increased. Popularity of ready meal
can be gauged from its market worth. At present the worth of ready meal market is 38.8 billion
which is growing after 2007 in a compound rate of 3.1%. Consumption rate of this market is also

40 | P a g e
rising after 2007 (Tagetik.com, 2014). Bartholdi Ltd, Cauldron Foods Ltd, Chesswood Foods,
COOK Ready Meals, Creative Foods, Quattro Foods Limited, Crispy Snacks Ltd, Dalepak
Foods, S&L Catering Limited, DelishDish Foods, Dragonfly Foods, Gluten Free Foods Ltd,
Goodlife Foods Ltd, Kettleby Foods, Lodge Farm Kitchen etc. are the major competitor that
dominating the market. However, ready meal is now a growing market. And in this industry
competition is very high where the many companies are doing the business with almost same
competitive advantage (Pinson, 2008). Companies’ policies like product penetration, new
product development, diversification or new customer development for the business may bring
success of them.

It is decided to establish a ready meal business by considering on the future prosperity of this
market named as “BhanchaGhar”. This business will provide best quality of food to the UK
people in their home as they want. To establish a brand name it will increase number of order in
the local market. This can be happen through providing improved services to its target market by
developing its employees through the proper training as well as proper motivation. Local
Nepalese and Indian wholesaler will provide raw materials. And in London the food
development centre will be established.

However, BhanchaGhar will provide the product lines of ready meal of Nepalese Cuisine as well
as Japanese, Chinese and Other Asian foods. it is planning to provide four items to its customers,
such as, BhanchaGhar Dry Meat Curry, BhanchaGhar Chicken Curry, BhanchaGhar Dumpling
and BhanchaGhar Frozen foods. It will provide its products in the UK market by conducting
local small and medium sized stores (Tagetik.com, 2014).

5.1.2 Key to Success

 BhanchaGhar creates differentiation from other business through providing various ready
meals of Nepalese, Japanese, Chinese and Other Asian foods in the UK market. By his
way people can get various tastes of foods.
 The main focus of this business is to delivering quality and healthy foods.
 They provide various items of foods with rationale price in this competitive market.

41 | P a g e
  Again, BhanchaGhar offers its services to its customers throughout 24 hours seven days
in a prompt manner. In this concept, it decided to have a good distribution channel to
provide services its customers.
 Having expertise in each of the segments of business, such as, finance, production,
marketing, human resource management etc. (Swedroe, Grogan and Lim, 2010).

5.1.3 Market
The ready meal market of the UK is highly demand able market. Here, the customers prefer the
ready meal as the number of the single family is increasing and most of the citizens of UK are
too busy to make their foods at home. Henceforth the fast food industry is not preferable due to
the risk of health. Due to this causes the overall market consumption is rising. In this market, the
chilled ready meals are considered 50% of the total market. Basically, customers prefer the
flavor of the foods in which, new recipes and items inspired by various ethnic cuisines are being
launched into the market (Taylor, Gartside and Taylor, 2004). As a demand able market it
requires some changes. Here, most of the customers disagreed with the effectiveness of the
market and they think the market should be developed more. Again, customers in the ready meal
market want more quality foods and items from the market.

However, considering the market feasibility of BhanchaGhar, providing in the section 3.4.3, it is
found that, the ready meal industry is more perfect for the high income level customers and the
male customers prefer the ready meal foods more where the female customers prefer the home
made meal. So, target market of BhanchaGhar is male customers’ and also customers belong to
higher income level. In this case, competitive strategy of BhanchaGhar is to be cost leader,
which is, providing broad categories of ready meal with a reasonable price (Swedroe, Grogan
and Lim, 2010).

5.1.4 Marketing Plan

In order to get success from the inception, it is important for BhanchaGhar to adopt a successful
marketing plan. There are different marketing approaches to adopt the awareness of customers,
for example, word of mouth strategy, in store visiting, advertisement in newspapers, website
reviews, marketing campaign, online and offline marketing etc. However, from the

42 | P a g e
recommendation of customers BhanchaGhar decided these following approaches (Taylor,
Gartside and Taylor, 2004) in order to create awareness of its customers:

 Marketing campaign
 Word of mouth marketing
 Visit of in-store
 Online marketing
 Offline marketing

90
80
70
No. of people chosen

60
50
40
30
20
10
0
Very insignificant Insignificant Neutral Significant Very significant

friends Family Advertisements in newspapers

Offline promotions In store visiting Internet promotions
food blogs Newspapers reviews Food websites reviews
Marketing campaign Others

FIGURE 21: CHOSEN SOURCES OF RECOMMENDATION TO SELECT THE READY MEAL

Source: made by Author

Here, by dealing with marketing campaign the company can get chance to show its products to
targeted customers. And based on this customer can find out the differences and may decide
whether to go or switching this business’s products.

Again, most of the people rely on the word of their nearest and dearest ones(Taylor and Gartside,
1998). It is important to keep happy customers to increase the business that may provide
appreciated words to others. As word of mouth publicity is a trustworthy source of information
for the higher socio-economic group, which is also an important marketing tool.

43 | P a g e
 In store marketing is marketing tool where BhanchaGhar will distribute brochures in the local
store to distribute its target market, which may create awareness to its customers.

BhanchaGhar will develop a website that provides entire information of its product lines, which
may play an important role to make customer awareness in this techno based world.

Advertisement in local newspapers, newspaper reviews etc. are also some marketing options of
BhanchaGhar. But these are not initially practicing because of the cost (Taylor, Gartside and
Taylor, 2004).

5.1.5 Design and Development Plan

The following table represents time schedule of this business plan, which provides the planning
and execution of the business plan from its beginning to end:

TABLE 10: SCHEDULE OF BUSINESS PLAN

Sl. Name of the Bi-week

No. activity 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
1. Idea generation
2. Preparation of
business plan
3. Secondary
research
4. Primary
research
5. Research
assessment
6. Risk
identification
7. Risk analysis
8. Risk mitigation
9. Waiting for
loan approval

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10. Getting
approval from
the authority
11. Taking house
rent
12. Coordination of
required
equipment
13. Local
distributor
selection
14. Recruitment
15. Utility setup
16. Employee
training
17. Inauguration
From the above mentioned schedule, it is found that the business plan of BhanchaGhar will be
launched within 10 months if there is no interruption or occurrence of any unexpected situation.

5.1.6 Management Team

BhanchaGhar is a sole proprietorship business, where the owner controlled his business as well
as enjoyed entire profit or loss.

45 | P a g e
 OWNER

Financial Marketing
Advisor Advisr

General Manager

Assistant
Manager

Production Sales Finance Account Human Supply

Manager &Marketin Manager Manager Resource Chain
g Manager Manager Manager
Employee Employee
1 2 Employee Employee Employee Employee
1 2 3 1

Employee
2

Employee
3

FIGURE 22: ORGANIZATIONAL STRUCTURE OF BHANCHAGHAR

In order to get success in this business the owner hired some specialist of each business segment
(Young, 2007). At the same time it is needed some employees to operate the business, such as,
employees required for cooking, raw material collector, managing the business, delivery of
products, marketing, consulting with customers etc.

Here, the key personnel are mainly chefs based on which quality of products can be updated,
sales and marketing employees from which customer get knowledge about the product and
distributor and deliverer who are responsible for providing the ultimate services to its customers.

5.1.7 Operations Plan

Supply Chain Management

In order to make purchases BhanchaGhar will use electronic data exchange (EDI) system. This
system allows keeping entire records from purchase to sale. Category wise (BhanchaGhar Dry
Meat Curry, BhanchaGhar Chicken Curry, BhanchaGhar Dumpling and BhanchaGhar Frozen

46 | P a g e
foods) all purchases are sorting out. In order to lessen the cost of sales, raw materials are
purchased from local Nepalese and Indian wholesaler. After the delivery of goods, production
manager would confirm the cross checks. Then these required materials are putted in the EDI
system and then the next order would take place. In order to set up the entire EDI system,
BhanchaGhar needs four components, such as, EDI software to translate information, EDI
mapping for synchronizing with the system of customers, EDI VAN required to continue the
flow of transactions, EDI support and maintenance services (Finch, 2010).

Operating Process
Operating process of a business is very useful to regulate its entire activities (Young, 2007). The
operating process of BhanchaGhar is very simple that standardize entire activities’ courses of
action. Its operating process can be easily figure out from its organizational structure. However,
from the inception of this process, by using phone call, mail order, and company’s website etc. a
customer can make order. The order details are filled up by the sales and marketing department.
Then to verify the payment, it sends to the account department. Customer will be informed in
case of invalid payment. The sale order copy is sent to the production department also. After
receiving the sale order form by the production department, production process would start.
While production done, it would be passed to the supply chain department. Production process is
included with the utilization of capital and packaging. Production department keep record of
inventory. In order to keep record of inventory level, manual index system is used. In case of
additional requirements of inventory, purchase order form is send to the supply chain (Finch,
2010). However, ensure of quality of the product and innovation of new ideas are comes from
the product development centre. And product deliveries as well as purchase of raw materials are
maintained by the supply chain manager. By defining the process of operation BhanchaGhar may
lessen its risks of failure.

Equipment
To operate the ready meal business of BhanchaGhar it is required some equipment in kitchen, as
well as packaging purposes. For storage purposes required food-grade shelving, chest, walk-in
freezers, standard- or blast freezers; chopping, dicing, cubing, peeling, slicing, mixing and
processing equipments etc. are needed for preparation of foods; in order to cook, stock pot and
wok ranges, deep fryers, broilers, salamanders and cheesemelters, ovens, griddles, frying pans,

47 | P a g e
gas and toasters etc.; electronic thermostats, energy load levellers, automatic shut off switches
etc. accessories are also required. Some materials are needed for packaging purposes also.

5.2 Business Concern and Risk

In-order to establish the ready meal business of BhanchaGhar, it is needed to have knowledge
about related risks. Manage should have proper concern about the related risks o the business,
which may build a deviation between actual and expected outcome (Bach, 2005). And this
deviation will lessen the success of the business.

5.2.1 Risk identification

TABLE 11: RELATED RISKS OF BHANCHAGHAR

Related risks Likelihood of Possible outcomes

occurrence
Business plan preparation require High Significant delays happen as no other
more time than expected works are done without this.
Unsuccessful market research Moderate Causes the delay of related tasks and
suboptimal decision.
Delay in getting loan approval or High Significant delays happen as the lack of
proper authority approval funds and required approval of
authority.
Interruption in coordination of Moderate Causes in interruption of testing items
required equipment and training employees.
Unavailability of employees Low Employees training period may be
affected.
Quality of product may not at desired High Required to take another product and
level market feasibility study for reaching the
expected quality of products.

48 | P a g e
5.2.2 Risk management
It is important to mange related risks of the business to achieve the success of the business. So
after the identification of related risks the manager of BhanchaGhar is required to manage its
related risks to achieve the success. In case of risk management, the following steps should be
taken:

 While write down the business plan, its related risks should be identified.
 List of risks should be prepared while recognizing related risks.
 After the preparing this list, the probability of risks occurrence and their impact should be
assessed.
 Based on the assessment of probability and its impact, a risk management team would be
defined (Blackwell, 2008).
 This team will be related to the preparation of risk management plan to tackle the related
risks.
 Henceforth, entire people should be concerned about the business associated risks as well
as the goal achievement.
 It is required to motivate all of the employees in this way, which they can put their best in
this business in a proper way with a great zeal (Blackwell, 2008).

After all, to lessen the divergence in the outcome of the business, it is required to monitor every
task of BhanchaGhar properly.

5.3 Critical Success Factors (CSF)

Identification of critical success factors (CSF) is important that define the areas that affect the
success of a business. The operation of BhanchaGhar is also influenced some critical factors for
success. They are:

 Participation of human resources

 Presence of experts and advisors
 Creation of marketing and management team
 Establishing brand name
 Location of the business

49 | P a g e
  Marketing and benchmarking
 Employee training and motivation
 Quality of food and service
 Worth of money
 Management of customer relationship
 Balancing throughout operational and human resource management
 Profitability of the business
 Buying leverage at a maximum level and
 Experience and knowledge etc.

5.4 Issues for Sustainability

There are some sustainability issues of a business for sustaining in the market, which are
required to consider while establishing a business as well. Sustainability issues for BhanchaGhar
are as follows (Bbkonline.com, 2014):

• challenges from Economics and Politics

• explosive nature of price
• availability of cheaper food from other food supply chains
• increasing in complexity of policies
• Fissures in the governance of food

5.5 Financial Plan

5.5.1 Financial Objectives

 It is forecasted that the growth of sales will be 20% in every year for the first 4 years.
 Then the growth of sales will be assumed constant at 4% for the rest of the year or life
cycle.
 Productivity will be increase as sales increase annually.
 The profit would be more than 15% on an average.
 Variable cost will be decreased as the production will increase due to operational
efficiency

50 | P a g e
  Within shorter period the firm would repay its bank loan, as it will earn profit.

5.5.2 Start-up Costs

As a startup business BhanchaGhar cannot launch its sales activity from the first month. From its
business initiation, a legal permission is required in order to launch the business. Then in the
meantime BhanchaGhar coordinate entire needed plant, equipment and machinery etc. In the
meantime, it may develop a website for the creation of customers’ awareness about
BhanchaGhar. In the section 3.4.5 the amount of startup capital has been calculated. Here is the
graphical representation of split up start up costs of BhanchaGhar:

12

10
Costs in Pound ('000)

FIGURE 23: STARTUP CAPITAL OF BHANCHAGHAR

From section 3.4.5, total startup capital required 35,000 pounds. These amounts come from both
the owner and bank loan. Here, the owner provides 40% and remaining will be managed from
bank loan as well. The financial model is as follows:

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 40%
own capital
Bank loan
60%

FIGURE 24: CAPITAL STRUCTURE OF BHANCHAGHAR

5.5.3 Assumptions
In case of conducting the financial projections of BhanchaGhar, the following assumptions are
all linked to them. The assumptions are as below:

 The economy is growing and this is continued in future.

 Popularity of ready meal will be growing over time than before.
 There is no occurrence of any unexpected changes.
 Some financial assumptions for first five years are as follows, (details in appendix 1):

TABLE 12: GENERAL FINANCIAL ASSUMPTIONS OF BHANCHAGHAR

Year 1 Year 2 Year 3 Year 4 Year 5

Assumptions
Current Interest Rate 10.00% 10.00% 10.00% 10.00% 10.00%
Long-term Interest Rate 15.00% 15.00% 15.00% 15.00% 15.00%
Tax Rate 25.42% 26.00% 26.42% 26.42% 26.42%

5.5.4 Break Even Point Analysis

There is no sale of BhanchaGhar for first 9 months of its inception of business. After that, the
company stars to sale and generating negative operating profits. However, after the first year, the
company is in break even. Although BhanchaGhar has four product lines, such as:

5. BhanchaGhar Dry Meat Curry (P1)

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 6. BhanchaGhar Chicken Curry(P2)
7. BhanchaGhar Dumpling(P3)
8. BhanchaGhar. Frozen foods (P4)

In order to find out the break even, here is used weighted average price and weighted average
variable costs (Businessmodelgeneration.com, 2014). Here, the total break even sales unit is
21,75,400 units at an average price of 0.85 pounds as well as total break even sales amount is
18,49,090 pounds. And it can achieve break even at year 2. After year 2 its operating profit will
be positive as well. Appendix 2 shows the details. Here is given the graphical representation of
total break even analysis:

350,000.00
300,000.00
250,000.00
200,000.00
150,000.00
100,000.00
50,000.00
0.00
Year 1 Year 2 Year 3 Year 4 Year 5
-50,000.00

Total Sales Total Costs Operating Profit

FIGURE 25: TOTAL BREAK EVEN ANALYSIS OF BHANCHAGHAR

The following table represents break even analysis for each product line:

TABLE 13: BREAK EVEN ANALYSIS FOR EACH PRODUCT LINE

Name of product line Break-Even in units Break-Even in Sales

BhanchaGhar Dry Meat Curry 639823.53 543850
(P1)
BhanchaGhar Chicken 895752.94 761390
Curry(P2)
BhanchaGhar Dumpling(P3) 383894.12 326310
BhanchaGhar. Frozen foods (P4) 255929.41 217540

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Total 2175400 1849090

5.5.5 Projected Profit/Loss

From the first ten year BhanchaGhar faces loss as there is no sale. That is shown in the following
figure (details in appendix 3), which represents zero gross profit as well as negative net profit.

40,000

30,000

20,000

10,000

-10,000

-20,000

-30,000

Gross profit Net profit or loss

FIGURE 26: MONTHLY FORECASTED PROFIT OR LOSS OF BHANCHAGHAR

But after year 1, it will face positive gross and net profit. As it represents here, the details shows
in appendix 4:

FIGURE 27: YEARLY FORECASTED PROFIT OR LOSS OF BHANCHAGHAR

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 180,000
160,000
140,000
120,000
100,000
80,000
60,000
40,000
20,000
0
Year 1 Year 2 Year 3 Year 4 Year 5

Gross profit Net profit or loss

5.5.6 Projected Balance Sheet

By forecasting the balance sheet of BhanchaGhar, it is found that every year its total noncurrent
assets and total equity is increasing (details shown in appendix 5). This indicates future
prosperity of the company.

250,000

200,000
Amount in Pounds

150,000

100,000

50,000

0
Year 1 Year 2 Year 3 Year 4 Year 5

Total Non-Current assets Total equity

FIGURE 28: PROJECTED TOTAL NONCURRENT ASSETS& EQUITY OF BHANCHAGHAR

5.5.7 Projected Cash Flow

From the inception of BhanchaGhar, its total cash receipt, expenditures as well as net cash flows
are increasing (details shown in appendix 6), that are depicted in this figure:

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 400,000
350,000
300,000

Amount in Pound
250,000
200,000
150,000
100,000
50,000
0
-50,000 Year 1 Year 2 Year 3 Year 4 Year 5

Total Cash received Total Expenditures Net cash flow

FIGURE 29: PROJECTED CASH FLOWS OF BHANCHAGHAR

5.5.8 Contingency Planning

There may be various types of risks related with the operation of business, for which the firm
may not prepared. And BhanchaGhar is not exceptional from them. As a new firm, BhanchaGhar
may face:

 Inability of innovation
 Unfilled customers demand
 Changing customers choice and demand

Company may face other situations not mentioned here, for which it is not prepared at all.
However, the firm needs to be alert about this entire problem and develop a contingency
planning to get rid of probable difficulties as well (Finch, 2010).

5.6 Exit Strategy

From the inception of business it is wise to anticipate the failure. In case of risky business, such
as, ready meal business, where the market is already saturated; may not get success on their way.
As BhanchaGhar will start its ready meal business, it should have some idea about exit strategy.
In case of failure of the startup business of BhanchaGhar, it is required to sale the business on
profit. From this loan amount would be repaid and remaining amount goes to the owner of the
business. If it is not sale on profit, that is, sold on loss, at first the bank loan would be repaid and

56 | P a g e
then if any amount is remained would go to the owner. In case of inability to sale of the business
indicates its bankruptcy as well (Blackwell, 2008).

5.7 Viability of the plan

Based on the undertaking of both researches, that is primary and secondary research of the plan,
it is assessed that the business proposal is viable (Finch, 2010). So successfully it can be
implemented. The business proposal of BhanchaGhar fits with the glove in that case, by going
target market demographics, their preferences, food habit as well as pricing expectation. Here,
male and higher level people are target market of BhanchaGhar. With the establishment of
suitable operating process BhanchaGhar may sustain in the market which is saturated and
competitive in nature.

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Appendix

Appendix 1
TABLE 14: GENERAL ASSUMPTIONS

Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Current Interest Rate 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00%
Long-term Interest Rate 15.00% 15.00% 15.00% 15.00% 15.00% 15.00% 15.00% 15.00% 15.00% 15.00% 15.00% 15.00%
Tax Rate 25.42% 25.42% 25.42% 25.42% 25.42% 25.42% 25.42% 25.42% 25.42% 25.42% 25.42% 25.42%

Appendix 2
TABLE 15: CALCULATION OF PER UNIT WEIGHTED AVERAGE SELLING PRICE & VARIABLE COSTS

Name of product line Quantity Weight of Per unit Weighted Variable Weighted
of sales each selling average Cost per average
product price Per unit unit Variable
selling Cost per
price unit
BhanchaGhar Dry Meat 50000 0.2941176 1 0.294118 0.8 0.235294
Curry (P1)

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BhanchaGhar Chicken 70000 0.4117647 0.9 0.370588 0.7 0.288235
Curry(P2)
BhanchaGhar 30000 0.1764706 0.55 0.097059 0.4 0.070588
Dumpling(P3)
BhanchaGhar. Frozen 20000 0.1176471 0.72 0.084706 0.55 0.064706
foods (P4)

Total 170000 1 3.17 0.846471 2.45 0.658824

TABLE 16: TOTAL BREAK EVEN ANALYSIS

Break - Even Analysis Year 1 Year 2 Year 3 Year 4 Year 5

Total Sales 143,900.00 172,680.00 207,216.00 248,659.20 323,256.96

VC = Variable Costs 112,000.00 134,400.00 161,280.00 209,664.00 241,113.60
FC = Fixed Costs 41,000.00 41,000.00 41,000.00 41,000.00 41,000.00
Total Costs 153,000.00 175,400.00 202,280.00 250,664.00 282,113.60
Average price per Unit VP 0.85 0.85 0.82 0.82 0.80
Units sold 169,294.12 203,152.94 252,702.44 303,242.93 404,071.20
Average cost per Unit VC 0.66 0.66 0.64 0.69 0.60
CM ( Contribution Margin) =
VP-VC 0.19 0.19 0.18 0.13 0.20
Break-Even in Sales Before
Tax= Fixed Cost / (Contribution
Margin/Average Price) 184,949.84 184,949.84 184,949.84 261,443.13 161,346.40

Break-Even in Units Before Tax 217,588.05 217,588.05 225,548.59 318,833.09 201,683.00

Fixed Cost / Contribution
Margin

61 | P a g e
Operating Profit -7,755.00 7,660.00 18,922.00 18,922.00 18,922.00

Appendix 3
Proforma Income Statement (yearly)
Year 1 Year 2 Year 3 Year 4 Year 5
Sales
P1 50,000 60,000 72,000 93,600 121,680
P2 63,000 75,600 90,720 117,936 153,317
P3 16,500 19,800 23,760 30,888 40,154
P4 14,400 17,280 20,736 26,957 35,044
143,900 172,680 207,216 269,381 350,195
Less: cost of sales
P1 40,000 48,000 57,600 63,360 69,696
P2 49,000 58,800 70,560 77,616 85,378
P3 12,000 14,400 17,280 19,008 20,909
P4 11,000 13,200 15,840 17,424 19,166
112,000 134,400 161,280 177,408 195,149
Gross profit 31,900 38,280 45,936 91,973 155,046
Less:
Marketing and Advertisement 18,300 13,000 10,000 10,000 10,000
Administration 10,000 8,000 10,000 10,000 10,000
28,300 21,000 20,000 20,000 20,000
EBIT 3,600 17,280 25,936 71,973 135,046
Less: interest 3,690 2,300 1,800
EBT -90 14,980 24,136 71,973 135,046
Less: tax @ tax rate -23 3,895 6,377 19,015 35,679
Net profit or loss -67 11,085 17,759 52,958 99,367

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Appendix 4

Proforma Income Statement (monthly)

Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Sales
P1 0 0 0 0 0 0 0 0 0 30,000 40,000 50,000
P2 0 0 0 0 0 0 0 0 0 43,000 48,000 63,000
P3 0 0 0 0 0 0 0 0 0 6,500 9,500 16,500
P4 0 0 0 0 0 0 0 0 0 10,000 12,400 14,400
0 0 0 0 0 0 0 0 0 89,500 109,900 143,900
Less: cost of sales
P1 0 0 0 0 0 0 0 0 0 20,000 30,000 40,000
P2 0 0 0 0 0 0 0 0 0 28,000 38,000 49,000
P3 0 0 0 0 0 0 0 0 0 4,500 6,500 12,000
P4 0 0 0 0 0 0 0 0 0 7,500 10,000 11,000
0 0 0 0 0 0 0 0 0 60,000 84,500 112,000
Gross profit 0 0 0 0 0 0 0 0 0 29,500 25,400 31,900
Less:
Marketing and Advertisement 6,000 6,000 6,000 8,000 8,000 15,000 15,000 15,000 18,300 18,300 18,300 18,300
Administration 2,000 2,000 4,000 4,000 6,000 6,000 8,000 8,000 10,000 10,000 10,000 10,000
8,000 8,000 10,000 12,000 14,000 21,000 23,000 23,000 28,300 28,300 28,300 28,300
EBIT -8,000 -8,000 -10,000 -12,000 -14,000 -21,000 -23,000 -23,000 -28,300 1,200 -2,900 3,600
Less: interest 3,690 3,690 3,690 3,690 3,690 3,690 3,690 3,690 3,690 3,690 3,690 3,690
EBT -11,690 -11,690 -13,690 -15,690 -17,690 -24,690 -26,690 -26,690 -31,990 -2,490 -6,590 -90
Less: tax @ 25.42% -2,972 -3,039 -3,617 -4,145 -4,674 -6,523 -7,051 -7,051 -8,132 -633 -1,675 -23
Net profit or loss -8,718 -8,651 -10,073 -11,545 -13,016 -18,167 -19,639 -19,639 -23,858 -1,857 -4,915 -67

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Appendix 5
Proforma balance sheet (yearly)
Year 1 Year 2 Year 3 Year 4 Year 5
Assets
Current assets 4,000 4,000 4,000 4,000 4,000
Cash 14,733 12,518 25,026 89,999 218,045
Other current assets 0 0 0 0 0
18,733 16,518 29,026 93,999 222,045
Non-Current assets
Long term assets 18,000 25,000 30,000 35,000 40,000
Accumulated depreciation 1,800 2,500 3,000 3,500 4,000
Total Non-Current assets 16,200 22,500 27,000 31,500 36,000
Total assets 34,933 39,018 56,026 125,499 258,045

Capital & liabilities

Current liabilities
Accounts payable 0 0 4,000 3,800 3,500
Current borrowing 0 0 6,249 25,964 59,443
Other current liabilities 0 0 0 0 0
0 0 6,249 29,764 62,943
Long term liabilities
Long term liabilities 21,000 14,000 7,000 0 0
Total liabilities
Equity capital
Paid in capital 14,000 14,000 14,000 14,000 14,000
retained earnings -67 11,018 28,777 81,735 181,102
Total equity 13,933 25,018 42,777 95,735 195,102
Total Capital &liabilities 34,933 39,018 56,026 125,499 258,045
Net worth 21,000 14,000 13,249 29,764 62,943

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Appendix 6
Proforma cash flow (yearly)
Year 1 Year 2 Year 3 Year 4 Year 5
Cash Received
Cash from operation
Cash sales 143,900 172,680 207,216 269,381 350,195
Total Cash received 143,900 172,680 207,216 269,381 350,195
Expenditures
Expenditures from operations
Cost of sales 112,000 134,400 161,280 177,408 195,149
Marketing and Advertisement 18,300 13,000 10,000 10,000 10,000
Administration 10,000 8,000 10,000 10,000 10,000
140,300 155,400 181,280 197,408 215,149
Additional cash spent
Interest paid 3,690 2,300 1,800 0 0
Loan repayment 7,000 7,000 7,000 7,000
3,690 9,300 8,800 7,000 7,000
Total Expenditures 143,990 164,700 190,080 204,408 222,149
Net cash flow -90 7,980 17,136 64,973 128,046
Cash balance -90 7,890 25,026 89,999 218,045

Appendix 7
strongly disagr neutr agree strongl total
disagree ee al y agree
1 2 3 4 5
the current market position
The current ready meal market is 18 27 25 17 13
effective
They provide the healthy foods 24 29 18 22 7
the price is rationale in the ready meal 20 27 25 23 5
market
the distribution channesl and other 31 25 9 20 15
facilities is available
total

Loyalty towards the ready meal

I will be buying the ready meal in the 12 19 18 34 17

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future
I will recommend others to buy the 9 20 15 31 24
ready meal
I am happy with the current ready meal 31 21 8 19 21

Appendix 8: Demographic question

1. What is your Gender?

 Male
 Female

2. What is your nationality?

 British (UK)
 EU
 Asian
 African
 Others

3. What is your age group?

 20-29
 30-39
 40-49
 50 and above

4. What is your annual total household income?

 £10,000 and bellow

 £10,001-15,000
 £5,001- 20000
 £20,001-25,000
 £25,001-30,000
 £30,000 and above.

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5. What is your occupation?

 Student
 Self-employed
 Professional
 Executive
 Unemployed
 Others
6. What is your marital status
o Single
o Married
o Divorced

Interview questions
1. what would you expect from a ready meal business company

quality

low price

good packaging

distribution

2. which foods do you prefer more

ready meal homemade fast foods restaurants

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 meal

3. What is your buying behavior about the ready meal?

I prefer ready I will be I would like to My full family

meal in my daily using the buy regularly member prefers
food menu ready meal ready meal
in the future
4. Which one you will recommend to be developed in the market
Quality
Availability
New
product
Online
Sales
More items

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