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 New Venture Creation

Table of Contents
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Executive Summary............................................................................................................................4

Business/Company Description..........................................................................................................5

Opportunity Analysis, Research & Marketing Plan............................................................................6

Financial Plan....................................................................................................................................13

Management Team and Company Structure:....................................................................................18

Conclusion:........................................................................................................................................21

References.........................................................................................................................................22

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Don’t Paraphrase from sample file otherwise your file will be cancelled.

You have to prepare a business plan for your own business organization. So,
you can’t choose any business organization like, KFC, Pizza Hut, Tesco, Jumbo
Super shop etc.

Your organization’s Name must be UK based.

Check Page 5 of the brief file of understand the outline of this assignment.

Executive Summary
New venture creation is not a simple task rather it needs a lot of effort and resources. Capital is one
of the biggest challenges to starting a new business. In this study, the mission, vision and objectives
are identified for accelerating the whipped topping. For operating a business successfully
marketing plan is important that have been emphasized in this report. Market research and industry
analysis are discussed as well. Different ways to reach the consumers are identified. The
consumer’s behaviour analysis is important as to why it is the main concern. Kraft and Sara Lee are
the main competitors for Whipped topping products. So, competitor analysis is conducted in this
study. Marketing strategy, promotional, pricing strategy and contingency plan are developed in this
study. Financial analysis is conducted to understand the cash flow of a particular business.

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Business/Company Description
Business Name: Fancy Foods, LLC. (Don’t use Sample’s One. Create your own Organisation)

Description of the product: Various recipes for flavoured whipped cream topping will be
developed. Fancy Foods will sell their products especially Whipped Dream on a large scale so that
more market coverage can be possible. They would like to market their product in a frozen state at
8 to 12-ounce plastic tubs. They also want to market them in 6-ounce pressurized cans.

Company Mission Statement: To ensure Fancy Foods of Whipped Dream being a customer-
oriented organisation by delivering better service.

Vision: To become the number one brand in terms of food products.

Objectives: There are several objectives for their Whipped Dream products. These are as follows: -

 To become the reputed brand in the industry for whipped products.

 To retain the popularity of selling as a unique brand.
 To ensure 20% growth with a high level of customer satisfaction.
 To increase the market coverage by focusing on segmentations.

Unique Selling Proposition/ Value Proposition: “Simply delicious and unique flavour at the
quality-price”.

Note – Only one line for Value Proposition.

Intellectual Property: Different intellectual property rights need to be maintained so that any
other competitor cannot copy their key concept and product. Trademarks offer legal protections to
brands and logos that distinguish the source of products and services. For trade secrets, recipes and
food preparation methods lawyer assists Fancy’s Foods so that the new employee might not
disclose any recipes to the competitor. All products are copyrights so that they can smoothly
operate their business.

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Opportunity Analysis, Research & Marketing Plan
Identification & Justification of chosen Market

It is identified that the people try to consume more products of whipped topping flavoured, the
mixture of dry foods items, etc. The market is very potential in these areas and these
entrepreneurs wanted to capture the market their reputed items Whipped Dream. So, Fancy’s
Foods should come up with differentiations in their Whipped Dream items so that they can
capitalize on the market with potential growth and market coverage. As they have observed this
industry for Whipped topping have high preferences for their food items so chosen markets are
very effective.

Market Research Conducted

Creating awareness about the business can be vital but consumer expects differently rather than
what we expect from them. So, it might not be a good option to do promotional activities to
specific self-understanding. It is better to give more time and utilize resources at the regional level
by figuring out the type of consumers who can buy the product. This way will lead to financial
growth for the organisation. According to Lindsey Myers who is the founder of Concrete Blonde
Consulting earlier time most people have a solid idea about the thing they will use. Considering
these situations if the proper plan is ready then it becomes easier to get connected with these
people at a lower cost. So, it becomes easier to source new potential consumers. It is better to
identify who moves your thing forwards. If it can identify, then crowd information and
opportunity to do direct market research to know more details about the client. To learn their need
and demands more research can be done which will help to improve the marketing process. This
will simply create a strong customer engagement and bonding to ensure more customer
commitment.

Industry Analysis

Before starting any new business operation, it is important to properly analyze the industry.
Industry and competitors must be properly analyzed otherwise business will not sustain for the
long run. The global whipping cream market size was valued at USD 5.98 billion in 2018 and it is

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expected to grow at a compound annual growth rate (CAGR) of 8.1% from 2019 to 2025. The
dairy products segment accounted for the largest whipping cream market share of more than 60% in
2018. The consumption of foods, such as pies, cupcakes, ice creams, sundaes, cakes, hot chocolate
milkshakes, waffles, cheesecake, and puddings are increasing as to why it is expected to be the
key factor that drives the product demand. In this industry there is high demand for light whipping
cream, with less than 30 to 36% of fat contents, owing to rising health consciousness will also
boost the market growth.

There are various brands in the Whipped Cream industry in the mainstream retail outlets. The
grocery stores are the major concern for Fancy’s Foods. So, the industry is expecting this form to
dominate the market. In the market, the Whipped Topping is sold but most of them are not dairy-
based. To get strong existence Whipped Dream of Fancy’s Foods can use more dairy-based
whipped topping. In addition, the advent of flavoured whipped creams including chocolate,
coffee, vanilla, rose, cinnamon, Kahlua, and orange is estimated to drive the demand further. As
new business always needs a huge investment plan it might not be possible to recover the loss if
the business is started then immediately it needs to close after a few months due to lower sales.
For sustainable business industry analysis is very important.

Way to reach consumer, consume profit and behaviour analysis

To promote the business, it is important to know the customers. As per Myers, some strategies
help to identify the customers. These are as follows: -

Make a proper routine: To identify the targeted customer Whipped Dream can set the
proper motivational plan. To develop a strong customer profile, it is vital to consider how
their information will be collected, what are their interests, and what type of media they
use. It is important to know where they are located and their socio-economic condition.
To know the details Facebook platform or other web-based research can be conducted. If
the client profit and marketing strategy are visible, then it will easily help to reach the
goals. Thus, profitability can be ensured.

Making Estimation: Marketing strategies may get changed for top customers' priority as
to why it is important to do promotional activities wisely following general results and
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 maintaining clear procedures. For instance, Whipped Dream will have a discount code for
promoting any new product so this should be displayed properly in the promotional
event. This is the best way the customers can recall it and apply it when they go for
buying the product.

Explain your Message: It is the demonstration of the message according to Myers's

opinion. Most organisations make mistakes when they have no specific message. For
providing mental assistance to the audience, it is essential to generate showcase programs
of the associates. By utilizing the client’s profile, it can be identified to detect errors.
After that, generating an abbreviated clear message observes the problem-solving
practices which are maintained by the organisation.
Finding contacts: Every entrepreneur tries to adopt entire resourceful aspects for feeling
satisfied. It is necessary to express that organisational procedure are capable to fulfil the
goals. For promoting the organisational image, it is crucial to evaluate that the procedures
are maintaining relevancy with the targeted goals of the organisation. For developing
crucial decisions, it is necessary to take the consultants from the advertising experts.
Through discussion, it can be solved and made important planning. For affording the costs
of the advertising experts, every partner should be discussed mutually. By delivering their
ideas to anyone, it can be realized how they react or reply about it. So, it can be recognized
to represent the exact planning for the organisation.
Think about important organisations: To find out the popular zone of the clients is very
important for the organisation. It can be identified through the client’s outline. Apart from
this, the newest media outlets, clients’ desired trial and visited places. For selecting an
advertising zone, specific clients should be identified.

Competitor Evaluation

Note - If you want to mention cities name mention UK based cities not sample’s
one.

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In the regular sale stores, there are some be beating products. In the supermarkets in the district of
Antlers and Hugo, it is seen that a variety of dishes were made by great actors especially Kraft and
Sara Lee. There are dry mixtures items available that are almost the same as Whipped Dream.
Individual deals are figured that major stores located in Antlers and Hugo shared that 65% of the
total population are of this sort where major whipped cream’s packaging is done in frozen tubs. On
the other hand, 35% of products are sold in a pressed container. General sector fragment and
distribution channel are working as advantages for these products. They are available in every sale
with higher demands. These products are available in the same freezer as other frozen dairy items.
With more market shares and distribution channels, these products are strongly dominating the
market.

The price for these products is set as $1.29 to $1.89 for every 8 ounces of the tub or 6-ounce press
which seems to be more beneficial over Whipped Dream’s suggested transaction cost. These
organisations do not sell by doing modifications where few products are like whipping though they
are not made with milk. With a strong distribution channel and market shares, competitors of
similar products are doing quite well. These products already are sold online at any retail grocery
outlets and are already able to gain strong market acceptance. The main challenge is these
organisations have few variations and they do not offer market flavoured topping rather they
emphasize whipped topping, but these are not dairy-based at all.

Marketing Strategy

Fancy’s Foods Whipped Dream product will start to sell in the local south-eastern Oklahoma area.
Fancy’s Foods already developed the name and reputation near this area so initially introducing
this product will not get any threat or none will resist. Already Pruett’s IGA and Gardiner’s
Grocery in Antlers and Pruett’s in Hugo has a high reputation so it will be great to manage them for
selling the products. Apart from this Gardiner’s Grocery gives high priority to special food
products. They count this item as a standard grocery item (Sridhar, 2017).
After covering the market for Whipped Dream in Antlers, Hugo, and nearby areas Fancy’s Foods
should give more concentration to join the “Made in Oklahoma” demonstration Program which is
usually arranged by the agriculture and Pratt’s Foods department in Oklahoma City. For
promotion, Whipped Dream can do more brand awareness creating a positive buzz in the market.

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Several stores are the most priority around Oklahoma City where flavoured topping along with
fresh fruits can be served during the warm season and topping on a gourmet coffee or hot chocolate
can be sold in the winter season. To develop the product fresher attractive labels and packaging
can be used. To prepare the foods natural and fresh ingredients must be used.

Note - Don’t Copy any of Sample’s Figures and must give the source of the

image.

By providing discounts, offering lower prices and sales on the credit market can be captured
largely. To deliver the products to customer doors Whipped Dream will use a strong distribution
channel for the market coverage. Different tools can be used such as social media like Facebook,
Twitter for doing more advertising. Different marketing campaigns can be arranged to promote
the product (Coschedule, 2021).

Sales Process

There are steps in the sales process that must be properly followed to ensure sales.

These include below: -

 Prospecting: - In this step, it is important to identify and determine whether potential

customers require the product. Their buying power also needs to be considered at this
stage.

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 Preparation: - At this stage, initial contact with potential customers’ needs to be
maintained. Proper market research and gathering all relevant product information can be
very effective. Eventually, a proper product presentation needs to be done at this stage
(Leese, 2017).

Figure 1 Sales Process

 Approach: - Here face-face or over phone approach needs to be done with the client.
There are three methods for approaching such premium, question approach, and product
approach. In a premium, approach a gift can be given to the potential customers at the
time of first interaction. In question, approach question is raised to the potential client to
start the discussion. A free trial of the product is given in the product approach
(Lucidchart, 2021).

 Presentation: - At this stage product details need to be presented to the potential

customers by sharing PowerPoint.

 Handling Objection: - This is a very important stage because customers will raise
various objections. These objections need to be actively listened to and taken initiative to
solve those problems.

 Closing: - At this stage potential client is given the option to pay in instalments, free
products for one month, or sharing the price might increase after one month.

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  Follow Up: - After closing the sales it does not mean the relationship with the customer
ends. These customers might buy in the future as well, so it is important to know whether
they are buying the product on regular basis.

Pricing Strategy

It is very important to make the price right for any product. Overprice or lower price both are
harmful to business. As the market is very competitive so overpricing strategy will not be
effective. As the Whipped Dream is not so popular so initial price should be competitive (Smith,
2015). There is various pricing strategy such as price skimming, penetration pricing, premium
pricing, psychological pricing, competitive pricing, etc. Fancy’s Foods pricing strategy for
Whipped Dream will be competitive initially. After getting more popularity premium pricing
strategy can be followed.

Promotional strategy

To promote the Whipped Dream, pull strategy can be followed. As the product is new for
expanding business so more awareness will be created through TVC advertisement. For Covid-
19 consumers are very active in social media so different product offers can be published on this
platform. As Whipped Dream already gives priority to doing market research and will identify
customer databases, so it is better to use email marketing gradually for reaching more customers.

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Through quality products and service Whipped Dream of Fancy’s Foods can ensure more
consumers as existing consumers use word of mouth for promoting.

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Financial Plan

Sources of funding

For developing and expanding the business of Fancy’s Food some of the selected financial
institutions like Bank are used to collect the long-term loans which assisted largely. Both internal
and external sources were preferred by them for expanding the business properly. Apart from
this, a diverse potential investment zone was also selected for funding.

Cash Flow Forecast: For running the operations of Fancy’s Food smoothly it is important
to predict the cash inflows and outflows critically so that maintaining the cash flow statement is a
highly demanding aspect. The cash flow statement of Fancy food is illustrated as follows-

Copy-Paste this image.

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 Profit and Loss Statement: The profit and loss statement of Fancy’s Foods is as follows:

Fancy's Food (Use your organization name)

Pro forma Income Statement
January 2021 - December 2021

Net Sales $240,450

Less: Cost of goods sold $179,550.00
$60,900.0
Gross income 0

Operating Expenses:

Labour $12,000.00
Utilities $3,000.00
Insurance $2,400.00
Sales promotion $12,000.00
Delivery and transportation $6,000.00
Miscellaneous $1,475.00

$36,875.0
Total expenses 0

$24,025.0
Net income before taxes 0
Less: Income taxes $6,465.00
$17,560.00
Net income after taxes

Copy-Paste above math.

Assumptions:

net sales based on price of $2.29 per unit,

24000 units sold in Antlers 2000 units per month

36000 units sold in Hugo 3000 units per month

45000 units sold in Oklahoma City 9000 units per month for 5 months
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 You must mention your cities in above answer. Don’t use the sample’s cities.

Sales estimate based on 5% market share for prepared whipped topping in each market

The cost of goods sold includes ingredients, packaging materials, labels, and co-
packing expenses for the canned products.

No salary will be drawn by the owners in the first year. All profits will be re-invested
for new market entry and increased production.

Balance Sheet: The Balance Sheet of Fancy’s Food LLC is as follows: -

Fancy's Food LLC (Use your organization name)

Balance Sheet
As of December 2021
Assets: Liabilities:
 
Current assets: Current liabilities:
Cash and cash equivalents $7054 Accounts payable $51,343
Accounts receivable 60484 Accrued Payables $3,060
Inventory 80042    
Prepaid expense 1046    
Total current assets $148,626 Total current liabilities $54,403
Fixed assets: Long term liabilities:  
Equipment $40,950 Mortgage payable $20,708
Land and buildings 100500    
Gross fixed assets 141450    
Less: Accumulated depreciation   16900    
Total liabilities $75,111
   
Owner's equity $198,065
Net fixed assets $124,550    
   
   
   
Total liabilities and
Total assets $273,176 owner's equity $273,176

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Copy-Paste above math.

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Ratio Analysis:

Fancy’s Food LLC (Use your organization name)

Financial Ratios

December 31, 2021

Return on equity = Net profit before taxes / Net equity

= $24025.00 / $ 198065.00

= 12.13%

Current ratio = Current assets / Current liabilities

= $148626.00 / $54403.00

= 2.73

Quick ratio = (Current assets – inventory) / Current liabilities

= $68584.00 / $54403.00

= 1.26

Debt to equity = Total liabilities / Net equity

= $75111.00 / $198065.00

= 0.38

Copy-Paste above math.

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Contingency Plan:

For accomplishing the financial and strategic goals of Fancy’s Foods, critical plan making is
conducted. Fancy’s Foods have selected the targeted areas for fulfilling the selling and financial
perspective (Allin, 2012). Here, a 10% undesirable deviation from the selling and estimated ROA
can be established by Fancy’s Foods. If the estimated outcomes or reduction of sales and ROI will
have decreased by 90% then protective measures will be initiated. The protective operations are
illustrated below-

For undesirable sales levels in the initial year: To maintain the doubling in-store promotion for
whipped dreams in specific areas like Antlers and Hugo, Fancy’s Foods can solve the
unfavourable situation. The promotional aspects are considered especially on weekends or the
peak seasons when customers buy products mostly. When the selling rates are declined then they
operate advertising for weekly shopping vouchers and discounts.

For undesirable sales levels at Oklahoma and Tulsa: By conducting the operations of
Oklahoma and Tulsa, they compare to the marketing products and monitor the outcomes. If the
outcomes are undesirable, then they consult with the experts for controlling the situation. For
solving the issues, Fancy’s Food needs to consider specific commissions for the experts.

For undesirable business liquidity: To achieve the desired business position, Fancy’s Food
should be careful about upholding liquidity. They observe the accounts receivable processes and
payment sessions properly. Apart from this, a review of cash flow projection is a crucial task for
assuring liquidity. For handling the lacking situation of liquidity, they always focus on achieving
due cash payments appropriately.

For undesirable return on equity: When the owner’s equity and ROA are declined then Fancy’s
Food will evaluate both marketing selling prices and cost of production. After measuring they will
take the initiative for minimizing the cost of production. They can appoint several marketing
strategies for diminishing the costs of production. By increasing the speciality product’s price,
they can handle an unexpected situation.

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Growth Aims: Whipped Dream of Fancy Foods aims to ensure 20% growth in 2022 with
customers satisfaction. To achieve growth, they will give more concentration on product
differentiation and increase more customer base through different strategic plans.

Break-Even Analysis: Last year Whipped Dream achieved a gross margin was 10.88%. They
must do more marketing activities, promotional activities for which overall cost might be
increased. Forgiving online support more technology is required that might increase the expenses
for maintenance. For this reason, Fancy’s Foods need to identify the break-even. Every month
the break-even will be analysed.

Management Team and Company Structure:

As this is just a new business so there will not be a lot of teams in management at the very
beginning. When the business starts to grow then more senior personnel will be appointed. The
management team will always work for maintaining the operational activities of the organisation
(Snow, 2003). The management team will be included in the below structure: -

CEO: - CEO is senior management personnel who takes all the decisions for the organisation.
He needs to be adept in anticipating the upcoming uncertainty and takes initiative to increase
sales. The major skill of a CEO is to put the person in the organisation in the right positions so
they can do their best to ensure more productivity. Entrepreneurs can be the CEO or CEO can be
recruited from outsourcing.

Chief Operating Officer (COO) / President: - The power of the president and COO are same
in the privately owned organisation. To maintain the workforce their roles are significant. COO
is conscientious, ready to make important plans using competent strategies.

CFO: - CFO mainly takes the responsibility to define and accelerate financial activities and
manage to implement the plan. He is interested to spend less but ensure more profitability for the
organisation. For this reason, he needs to have very strong analytical skills. CFO needs to
constantly think about the business profitability as to why proper accountancy needs to be
maintained.

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 Chief Marketing Officer (CMO): - Chief Marketing Officer is the one who takes great
responsibility in the management team by ensuring the marketing and selling activities. He is
responsible to manage a dedicated sales force who can properly do marketing activities to the
customers. CMO must have strong capability to manage the team and charismatic styles being a
leader.

Company structure

The organisational structure includes job distributions, coordination, and proper management.
The organisation can be structured in different ways considering the purpose of the operation.
Various factors are considered for creating a structural organisation where group work, individual
performance is highly encouraged. The structure of an organisation mainly depicts how one
employee should perform his role considering the available resources of the organisation. It also
ensures how to work with teams and groups in the organisation by maintaining a strong
communication network. There are three structures available in the organisation. For Fancy’s
Foods, the structure will be based on leadership, democratic and hierarchical. Business structure is
based on functional, divisive, dynamic, and standard. The useful organisational structure includes
a group of the employee who is well qualified in similar areas. For example, the same project is
distributed to the bookkeepers of the finance office where all can get cooperation from one
another. The advantages of this type of design include quick power because the people who have
gathered are undoubtedly able to transfer. They can benefit equally from each other because they
currently have the same levels of skills and interests. Company structure can also be divided
based on product type.
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Role of Team Members

The role of team members plays an important role in any organisation. For example, there can be
several events to create product awareness in the market where there will be a team who work as a
group. If some of the teammates do not work properly then it might create a negative impression in
the market and potential customers might consider it negatively. For Whipped Dream the
marketing department needs to play a significant role to bring more customers by doing different
promotional activities. The finance department of Whipped Dream needs to prepare the budget
efficiently so that properly business operational decisions can be made easily.

Skills and Qualification

At present market is highly competitive as to why more talented people need to be appointed in this
industry. For bringing more creativity in product development skills qualified employees need to
be appointed. As Fancy’s Foods is related to food items it is better to consider those who have a
professional degree in hospitality management. To provide smooth service Whipped Dream must
assign experienced and skilled customer service. Sufficient working experience needs in reputed
restaurants are required for qualifying as an employee in Whipped Dream.

Training needs and interests that can be used to best effect for the business

For new product development more customer engagement is important. For these reasons, proper
training regarding the product needs to be given to the relevant personnel. Training on
communication skills development can leverage the business in converting potential customers
promptly (Fletcher, 2020). Whipped Dream should bring the external trainer to give training on
efficiency management, time management etc. The employees who are involved directly in
producing the foods should get training facilities.

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Conclusion:
To sum up, there is huge competition in the marketplace as to why different strategies need to
implement. Without a proper marketing plan, it cannot be easy to sustain in the competition for the
long run. With a proper contingency plan and market research, more potential customers can be
onboarded. Thus, the product can be largely renowned in many of the areas in Antlers, Hugo, and
Oklahoma.

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References
Allin, L., 2012. Contingency Plan. UK: Rapid Reads .

Coschedule, 2021. Coschedule. [Online]

Available at: https://coschedule.com/marketing-strategy
[Accessed 9 5 2021].

Fletcher, L. a. B. S., 2020. Design Thinking for Training and Development. 1st ed. UK:
Association for Talent Development.

Leese, S., 2017. Addicted to the Process: How to Close Transactional Sales with Confidence and
Consistency. UK: s.n.

Lucidchart, 2021. Lucidchart. [Online]

Available at: https://www.lucidchart.com/blog/what-is-the-7-step-sales-process
[Accessed 8 5 2021].

Smith, 2015. Pricing Strategy. 1st ed. UK: CENGAGE INDIA.

Snow, C. a. M. R., 2003. Organizational Strategy, Structure, and Process (Stanford Business
Classics). 1st ed. UK: Stanford Business Books.

Sridhar, S. a. P. R., 2017. Marketing Strategy: Based on First Principles and Data Analytics. 1st
ed. UK: Springer;.

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