Establishing a new Convenience Store at Barangay Crossing Pulupandan

Business Plan

IN PARTIAL FULFILLMENT OF THE SUBJECT

Entrepreneurial Management

Abaring, Abygail

Acuyan, Cherry Mae

Arroyo, Mary Queen

Bordan, Athena Leila

Cabinay, Merryl Joy

Jordan, Ma. Trixie

MARCH 2023
IV. Industry Profile and Overview

A. Market Analysis

1. Industry Analysis

The global convenience stores market size was valued at USD 2.12 trillion in

2021 and is expected to grow at a compound annual growth rate (CAGR) of 5.6%

from 2022 to 2028. Strong economic growth in emerging markets, increased

population density in urban areas, expanding investments in the retail business in

developing nations, and rising popularity of the franchising idea all contributed to

the growth of the market. Extrapolate such a figure by assessing the size of the

market in the entire country and then applying the figure to the local population.

Major players operating in this market are offering various advantages such as

partnership & acquisition. The acquisition is made to increase its strong presence

in the grocery segment. Some of the prominent players in the global convenience

stores market include:

• Casey’s General Stores, Inc.

• Alimentation Couche-Tard Inc.

• Murphy USA Inc.

• Parkland Corporation

• 7-Eleven

• Alibaba Group Holding Limited

• Amazon.com, Inc.

• Family Mart

• OXXO (FEMSA)

• Lawson Inc.

Convenience stores have always sought to make life easier for the consumer.

Convenience stores enhance convenience by offering expanded services through

online ordering, curbside pickup, and delivery. Some stores differentiate

themselves by offering private-label options. Convenience stores are

neighborhood stores and some operators are tapping into that by developing into

neighborhood hubs. These c-stores spotlight local produce, baked goods, coffee,

and beer. Some even host social events to draw in people who live nearby.

Convenience stores have amped up their food offerings. With their selections of

prepared and made-to-order foods, some convenience stores’ food quality is on

par with quick-service restaurants.

2. Environmental Analysis

Different markets have various norms or environmental requirements, which

might have an effect on an organization's profitability elsewhere. States frequently

have different liability and environmental regulations even within the same

nation. For example, in the United States, Florida and Texas have different

liability laws in the event of accidents or ecological emergencies. Similar to this,

many European nations offer substantial tax incentives to businesses engaged in

the renewable energy industry.

Before entering new markets or starting a new business in existing market the

firm should carefully evaluate the environmental standards that are required to

operate in those markets. Some of the environmental factors that a firm should

consider beforehand are:

• Weather

• Climate change

• Laws regulating

• Environment pollution

• Air and water pollution

• Regulations in Class Pend industry

• Recycling

• Waste management in class Pend sector

 • Attitudes toward “green” or ecological products

• Endangered species

•Attitudes toward and support for renewable energy

B. Outlook for the Future

 Convenience stores as ecommerce assets. Convenience stores serve as

good pick-up or delivery anchor points for e-commerce operations.

 Remedies for rising costs. Rising costs for labor in particular will play a

significant role in future automation attempts.

V. Competitor Analysis

A. Existing Competitor

1. Who are they?

Direct and indirect competitors: understanding and analyzing competition is critical

for businesses that want to stay relevant and successful in their industries. Direct

competition is any company that provides the same product or service as you,

whereas indirect competition is any company whose products or services differs from

yours but may satisfy the same need and achieve the same goal.

2. Competitor’s Strengths

 Product availability

 Large product range

 Sells similar products and service

  Products are of comparable quality, value, and price point

 Has the same ideal customer

3. Competitor’s Weakness

 Limited market reach

 Sells different products and services from the same category

 Products may be at a different price point, but could serve as a substitute

 Meets the same need for the customer

B. Potential Competitor’s

1. Who are they?

Direct and indirect competitors: direct competition is any company that

provides the same product or service as you, whereas indirect competition is any

company whose products or services differs from yours but may satisfy the same

need and achieve the same goal.

2. Impact on the business if they enter

Direct competitors frequently create a more difficult competitive environment

because they not only serve the same market but also provide similar products or

services. In contrast, indirect competitors have an impact on a company's market

 share but aren't as dangerous to its customer base as direct competition. They provide

different products while meeting the same general need.

Businesses that compete directly face the same market conditions, strengths,

weaknesses, threats, and opportunities. Indirect competitors do not always face the

same challenges as direct competitors. They may only compete for the same set of

customers.

VI. Business Strategy

A. Company Objectives

1. Marketing Aspect

 Building Sales and Profits- The major objective of our store is to sell products

and earn the highest profits possible but also helping people to be more

convenient to them.

 Our Convenience store serve the entire purchasing population of its

geographical area but focuses on customers who need to purchase items

outside of normal working hours such as swing shift employees and quick

shoppers looking for snacks and related items.

2. Management Aspect

 Optimize resources- we will create the ability to increase profits by reducing

the ratio of resource costs to profits.

 Promote personal development- we will be providing opportunities such as

seminars, mentorship programs, training resources and internal promotions

 allow our employees to develop new skills .The personal development and

growth of employees can also contribute to the growth, quality and efficiency

of work produced and can help management achieve multiple objectives

simultaneously.

 Maintain quality- maintaining the quality standards necessary for the business.

The team collaborates with employees to create, implement and maintain

quality.

3. Operational Aspect

 Quality- our Store emphasizes product uniqueness to attract customers and

encourage them to spend more money. So, it is almost impossible to attract

them to buy the product without superior quality.

 Response speed- our store will ensure goods are available when customers

need them. In addition, our store also be present when customers need

assistance with post-purchase services.

 An environmentally friendly business- transforming into an environmentally

friendly business will create a positive corporate image, which in turn will

impact the company’s sales in the long term. So we will ensure that our

convenience store is an environment friendly business.

4. Financial Aspect

Our early projections show more profit than is realistic.  We expect to revise regularly

to manage cash flow based on realistic expectations for the short term, not the long

term projections. The advantage of handling projections this way is that it allows a

 cushion for the real expenses as they occur. We will be less profitable, but with

enough resources to grow and prosper. 

B. SWOT Analysis

1. Strength

Always viewed as necessities are food and small home goods because the general

public needs these products, convenience stores are very safe small business

investments. A new convenience store can open with comparatively little money.

Convenience stores offer their owners a highly predictable stream of income once

they are established. There aren't many obstacles to entry for this kind of firm. A

convenience store proprietor must choose a prominent retail location. Once one is

sourced, it provides a tremendous amount of marketing strength for the business.

2. Weakness

Convenience stores problem is that they always compete with other places that are

comparable. This industry has recently developed, and there are no major advances

that will allow one location to stand out from a competitor's location. A convenience

store's weaknesses can be classified as qualities it lacks or in which its competitors

are better.

3. Opportunities

By offering more things for purchase, convenience businesses are able to increase

their earnings. Many business owners create a section of their establishment that

serves specials for breakfast and lunch that are freshly prepared. This can

significantly boost a convenience store's earnings. Many owners of convenience

 stores aim to open additional stores in addition to increasing sales at their current

location. These companies have a huge foundation of tangible assets and generate

very predictable streams of income; therefore, banks are nearly always prepared to

lend to them. Some business owners look to purchase profitable, operating

convenience stores.

4. Threats

Competitive issues are the main recurring problem for convenience store businesses.

Any firm may face risks in the form of elements that could harm its operations.

Threats can come from a variety of sources, including increased rival activity, shifting

governmental priorities, alternative goods or services, etc.

C. Competitive Strategy

1. Cost Leadership

Cost leadership strategy involves gaining a competitive advantage by lowering the cost. Cost

leadership is the main generic strategy that Convenience store uses in various consumer markets.

 How Convenience store uses a cost leadership strategy?

 The primary objective of using this strategy is to preserve the market leadership position

through efficient value chain management.

 This strategy allows Convenience store to expand the market share by targeting the

middle class, which makes the largest proportion of overall consumer market mix in most

of the countries. Middle class consumers generally place high importance to the pricing

factor and cost leadership is the best strategy to cater the needs of this consumer segment.
  Convenience store focuses on affordability and easy accessibility of its produce across

the globe, which leads towards high brand awareness and high sales growth and provides

a strong competitive advantage basis.

Convenience stores usually offer discounts and coupons in addition to charging cheap prices by

reducing production costs and maximizing supply chain efficiency to meet sales goals and

combat competition from their nearest rival. These discount and promotional efforts hope to

boost brand recognition and boost consumer spending. Numerous advantages of the cost

leadership strategy for convenience stores have been discussed, including rapid brand

recognition, customer base growth, consumption promotion, and the achievement of sales targets

by focusing on the accessibility and affordability of products. Although cost leadership is

emphasized as the primary strategy in the analysis of convenience store competitive advantage

strategies, the company also uses the differentiation strategy in conjunction with cost leadership

to lay the groundwork for a long-lasting competitive advantage in the fiercely competitive global

consumer market.

2. Differentiation

 How Convenience store uses differentiation strategy?

The adoption of differentiation as a secondary generic strategy allows Convenience store to

expand the customer base by emphasizing over the unique product features. The strategic goal of

the convenience store utilizing this tactic is to stand out by integrating innovation and addressing

the consumers' expanding health concerns. For instance, a convenience shop expanded its

product line after researching consumers' shifting preferences to set it apart from rivals and

broaden the range of prospects available in the sector. Convenience stores have developed a solid

and devoted client base thanks to their distinctiveness and cost leadership.
Convenience stores position their product choices to differentiate themselves from competing

options using differentiation generic approach. Being an established, seasoned brand, the

business employs difference as a technique to lessen competition from other companies. A

significant amount of money is spent on marketing, advertising, and celebrity endorsements

solely to set the convenience store apart from competing companies. In the company's marketing

and communication initiatives, distinguishing characteristics including extensive experience, the

oldest brand, and significant global presence are emphasized.

In addition to these, the brand logo is employed to establish the basis for distinctiveness.

Consumers' perceptions of the brand are positively shaped by its distinctive and distinctively

unique logo. Although the brand has experienced numerous changes, its core has stayed constant,

which also acts as a potent differentiator. The organization also provides a wide range of flavors

to meet the diverse palate requirements of customers. It uses innovation as a tool to offer

differentiated augmented services that may delight the customers and increase their preference of

Convenience store over other brands.

3. Focus Strategies

Focus is the third generic competitive strategy that encourages companies to concentrate their

resources on expanding the narrowly targeted segments. When companies adopt the focus

strategy, they serve market segments and base their competitive advantage on niche marketing.

 How Convenience store uses focus strategy?

Convenience stores use the focus strategy to provide the highest value while also keeping costs

down. By meeting a particular market segment’s need at the most affordable cost, the low-cost
focus method is used. While the best value focus strategy emphasizes the flavor, size, and design

of the product that may most effectively meet the demands and requirements of the clients.

Convenience stores adjust their branding strategies and implement ongoing modifications to

product design and packaging by concentrating on product qualities to meet the psychological

expectations of their customers and maximize value for money.