ASSIGNMENT COVER

2024 ACADEMIC YEAR

Student Name Mungungu Advent

Student number 222069155

Email Address 222069155@students.unam.na

Cell/Tel no 0816258894

Campus Windhoek Campus

Course/Module Name Course/Module

Code
Entrepreneurial Skills U3420RT

Assignment no
(e.g. 1, 2 or 3, etc.).
1

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Table of Content
Executive Summary…………………………………………………………………………………….3
Business Description……………………………………………………………………………………3
Product Service Description………………………………………………………………………….…3-4
Marketing Plan………………………………………………………………………………………....4-6
 Target Market………………………………………………………………………………......4
 Analysis of Competition……………………………………………………………………......4-5
 Position………………………………………………………………………………………....5
 Location…………………………………………………………………………………….......6
 Pricing…………………………………………………………………………………………..6
 Promotion……………………………………………………………………………………….6
Operational/ Management Plan………………………………………………………………………….6-7
Financial Plan…………………………………………………………………………………………....7-8

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Executive Summary
Frosty Ice Parlor is a premium ice cream business located in downtown Rocky Crest, Windhoek, serving
high-quality, hand-crafted Ice cream made with all-natural ingredients. Frosty Ice is a vibrant and
innovative business dedicated to providing high quality, delicious frozen treats to our customers in
Windhoek. Our mission is to create a fun and memorable experience for ice cream lovers of all ages,
while also contributing to the local community through our sustainable and ethical business practices.
At Frosty Ice Parlor, we pride ourselves on our unique and creative flavors, made with the finest
ingredients sourced from local suppliers. Our menu will feature classic favorites as well as adventurous
and seasonal flavors, ensuring that there is something for everyone to enjoy.
In addition to our exceptional ice cream offerings, Frosty Ice will provide a welcoming and engaging
atmosphere for customers to relax and indulge in their favorite treats. Our business model centers around
creating a memorable experience for our customers, with a focus on quality, innovation, and customer
service as our top priorities. This is reflected in our extensive menu of traditional and unique flavors, as
well as seasonable specials, all created using only the freshest and highest quality ingredients.
Frosty Ice Parlor distinguishes itself by offering a wide variety of flavors that cater to different dietary
preferences and lifestyle, including lactose-free, sugar-free and vegan options. We recognize the changing
tastes and preferences of our customers, and we strive to meet those needs head-on. Our commitment to
using only natural and locally sourced ingredients, positions us as a health-conscious alternative to
traditional ice-cream chains.
Overall, Frosty Ice Parlor is well-positions for success and growth in the market. With our quality product
offerings, innovative approach, and commitment to customer service, we believe we can continue to stand
out in the crowded ice-cream industry and become a household name.

Business Description
Frosty Ice Parlor is an ice cream business that specializes in high-quality frozen desserts. Our
concept not only offers classic ice cream flavors but also unique creations. Our aim is to make
customers feel delighted with every scoop that they taste. The business is located near the city
center in a bustling shopping plaza with plenty of parking. We are a sole proprietorship structure,
and we are currently in the startup phase of our business life cycle. Our unique approach to ice
cream is what sets us apart. The use of high-quality ingredients, such as locally grown fruits,
imported chocolates, and fresh dairy from local farms, is the secret to our delicious flavors. With
affordable prices, friendly service, and our focus on creating a memorable experience for each
customer, we feel confident that our business will thrive and become a staple in the local
community.
Product Service Description
At Frosty Ice Parlor, we offer an extensive selection of flavors, ranging from traditional classics like
vanilla and chocolate to more experimental and exotic flavors like lavender honey, matcha green tea, and
blueberry cheesecake, we also provide a wide range of mix ins, such as fresh fruits, nuts, candies and
sauces, to customize the flavors to satisfy individual preferences. Our Ice cream parlor also offers a wide
range of bakery items that complement our ice cream menu. Some of the bakery items include cookies,
brownies, pies and cakes.

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What makes Frosty Ice Parlor unique is our focus on using fresh ingredients. We ensure that our ice
cream is made from the best quality milk, heavy cream, and other natural ingredients, and has no artificial
flavors or colors. Our goal is to provide a healthier and more delicious ice cream experience that
customers can appreciate. Another unique aspect of our ice cream business is our exceptional customer
service. Our employees are well-trained on how to serve customers, keep the store clean, and providing a
welcoming environment. We want to ensure that our customers leave the store satisfied, happy, and with
a positive impression of our business.

MARKETING PLAN
Target Market
Potential customers: The potential customers for Frosty Ice Parlor would primarily be families
with young children, teenagers and young adults who enjoy ice cream. In addition people who
are health-conscious and prefer organic and low-fat options could also be part of our target
audience.
Where they live: Frosty Ice Parlor aims to cater to a diverse range of customers living in the
urban and suburban areas of Windhoek, particularly Rocky Crest, situated in the vicinity of our
store location. It is likely that most of our customers will be residents who live within a 5-mile
radius of the store and potential tourists.
Size of the target market: Based on a demographic analysis of the area around our target
location, we estimate that there are approximately 2000 residents living within a 5-mile radius of
the store. We also anticipate a significant influx of customers during peak sales seasons, such as
summer months, school breaks and holidays.
Is the target market stable, growing or shrinking: Our target market is stable and growing as ice
cream is typically seen as a popular treat, especially during hot summer days. Furthermore, our
focus on graphic and low-fat options could also appeal to those who are health-conscious and
looking for alternative dessert options
Local and/or national trends in your industry: The ice cream industry as a whole has seen a
significant shift towards catering to customers who are looking for healthier options and
ingredients.
Additionally, many consumers are looking for unique flavor combination and eye-catching
presentation styles for an instagram worthy experience. Frosty Ice Parlor will keep up with these
trends by offering organic and low-fat options and creating visually appealing desserts to engage
our customers and gain social media traction
Analysis of Competition
Three nearest competitors
a) Baskin Robbins-Chain of ice cream shops with a variety of flavors and toppings
- Strengths: Brand recognition, consistent product quality
- Weaknesses: High Prices, limited customization options

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b) Dairy Queen- Fast food chain with ice cream and other desserts.
- Strengths: Diverse menu, affordable pricing, drive thru options
- Weaknesses: inconsistent product quality, limited selection of flavors
c) Cold stone creamery- Ice cream chain that offers mix-ins and custom creation
-strengths: Unique offerings, high levels of customization
-weaknesses: High prices, no delivery packages
Customer Attraction
Customers shop at each of these competitors for various reasons. Baskin Robbins and Dairy
Queen provide a wide range of classic flavors and toppings that appeal to a broad audience. Cold
Stone Creamery’s customization options allow customers to create unique and personalized
treats.
Pricing
Prices vary amongst the competitors, with dairy queen being the most affordable, Cold Stone
Creamery being the most expensive. Frosty Ice Parlor’s strategy should take into account the
prices of its competitors to remain competitive.
Business Growth
Most of Frosty Ice Parlor’s competitors have steady or increasing business growth due to their
established brand recognition and loyal customer base. However competition also drives
innovation and increased quality, which can benefit Frosty Ice Parlor’s business growth
Differentiation
Frosty Ice Parlor can differentiate itself from its competitors by offering unique, locally inspired
flavors, friendly services, and affordable prices. It can also emphasize the social responsibility
and community involvement to appeal to socially conscious customers. By carving out a niche in
the market and developing a loyal customer base, Frosty Ice Parlor can compete effectively
against larger, chain competitors
Position
Frosty Ice Parlor will distinguish itself in the competitive ice cream market by offering a unique
combination of exceptional service, premium quality, and a focus on creating a memorable
experiences for our customers. While some competitors may focus solely on lower prices or a
limited range of flavors, Frosty Ice will stand out by providing a diverse and innovative menu of
both classic and adventurous ice cream flavors, all made with the finest locally sources
ingredients. Our commitment to exceptional customer service, a welcoming atmosphere , and a
dedication to sustainability will set us apart, ensuring that every visit to Frosty Ice Parlor is not
just about enjoying delicious ice cream, but also about creating lasting memories.

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Location
Frosty Ice parlor will be strategically located in the heart of Rocky Crest, Black Rock, Boa Vista Road,
where foot traffic is high and the local community thrives. The choice of this location is influenced by
several key factors, including visibility, accessibility, and the presence of complementary businesses. By
situating our parlor in a bustling area, we aim to capture the attention of passerby and attract both locals
and tourists alike. Additionally being in close proximity to other popular establishments, such as cafes,
restaurants and entertainment venues will create a synergy that enhances the overall appeal of our
location. This prime spot will allow Frosty Ice Parlor to become a go-to destination for those seeking a
delightful and indulgent ice cream experience.

Pricing
Frosty Ice Parlor provides premium quality ice cream at a reasonable price. Our single scoop starts at
N$20 and additional toppings are only N$5 each. We also offer sundae specials starting at N$10. Our
customers are willing to pay our priecs because we use high-quality ingredients and offer a wide variety
of flavors and toppings. Our prices are competitive tith other local ice cream shops, but we stand out with
our unique flavors and customizable options. While our prices may be slightly higher than some of our
competition, our customers value the quality and variety of our products. Our price is profitable and
allows us to maintain our commitment to using high-quality ingredients and providing exceptional
customer service.

Promotion
Frosty Ice Parlor plans to attract customers through various marketing strategies. We plan to use social
media platforms, such as Instagram and Facebook, to showcase our unique flavors and toppings.
Additionally, we will partner with local businesses and organizations to sponsor events and offer
discounts. Our goal is to attract families and young adults who are looking for a fun and tasty dessert
option. To promote sales, we'll offer loyalty rewards and promotions, such as special deals on certain days
of the week, as well as seasonal menus featuring festive flavors. One of our primary methods for retaining
customers is to provide an exceptional customer experience. We'll offer a comfortable and inviting
atmosphere, fast and friendly service, and a commitment to quality ingredients. To expand our market
base, we'll focus on building relationships with businesses and community organizations. We'll also
consider offering catering services for events and parties, as well as creating a mobile unit for outdoor
festivals and events. Our promotion and advertising will reach our target market through a variety of
channels, such as social media, local media outlets, and community partnerships. We'll also track our
sales and customer feedback to determine which marketing strategies are most effective. Ultimately, we'll
continue to refine our marketing efforts to build a strong and loyal customer base.

Operational/Managements Plan
Frosty Ice Parlor's operational/management plan is designed to ensure the smooth running of the ice
cream business. The business will be managed by the owner who has vast experience and qualifications in
the food industry.
Initially, the business will have two full-time employees, including a shop manager and a kitchen
assistant. The number of employees will increase depending on the growth of the business. Employees
will be paid hourly wages. I the owner will provide training to ensure that all staff members can carry out
their duties effectively.

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The management plan includes keeping track of the finances of the business. I will employ the services of
a professional accountant to help with financial management. Frosty Ice Parlor will comply with all
regulations and laws that affect the business.
In conclusion, Frosty Ice Parlor's operational/management plan is designed to minimize risks and
maximize profitability. It involves hiring qualified staff, managing finances, and complying with
regulations. With a strong operational/management plan in place, Frosty Ice Parlor can achieve its goals
of providing high-quality ice cream and growing its customer base

Financial Plan
Frosty Ice Parlor is a newly established ice cream parlor that aims to offer a wide range of
delicious ice creams to its customers. The financial plan for the business includes the following
projections, estimates, and funding sources:
Total Estimated Income: In the initial year of operations, the parlor expects to generate a total
income of N$250,000. This is projected to be distributed across the months and quarters as
follows:
Monthly income: N$20, 833
Quarterly income: N$62, 500
Cost of Opening and Sustaining Business: The estimated costs for opening and sustaining the
business for the first twelve months are projected to be N$150,000, distributed as follows:

Rent and utilities: N$30,000 (20%)

Equipment and supplies: N$80,000 (53%)
Marketing and advertising: N$20,000 (13%)
Licenses and permits: N$5,000 (3%)
Legal and accounting: N$10,000 (7%)
Contingency funds: N$5,000 (3%)
Monthly Cash Flow: The monthly cash flow for the first year of operations is estimated as
follows:
January: -N$5,000 (Start-up expenses)
February: -N$4,000 (Continued start-up expenses)
March: -N$3,000 (Continued start-up expenses)
April: N$8,500 (Projected income exceeds expenses)
May: N$10,000
June: N$12,000
July: N$15,000
August: N$17,000
September: N$13,000
October: N$11,000

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November: N$9,000
December: N$10,000

Monthly Personal Financial Needs: The owner of the business requires a monthly salary of
N$5,000 to meet their personal financial needs.
Break-Even Point: The break-even point for the business is estimated to be N$10,000 per month.
This means that the business needs to generate at least N$10,000 each month to cover its
expenses.
Sales Volume for Making Profit: To make a profit during the first three years, the business needs
to achieve the following sales volumes each year:
Year 1: N$250,000
Year 2: N$400,000
Year 3: N$600,000
Potential Funding Sources: The business plans to acquire funding from both personal
investments and loans from banks and investors.
Use of Funds from Lenders/Investors: The proceeds from the loans or investments will be used
to cover the start-up costs of the business, including rent, equipment, supplies, and marketing.
Loan Security: The loan for the business will be secured using the assets of the business,
including equipment, supplies, and inventory.
Proceeds from Requested Loan: The proceeds from the requested loan will be used to purchase
equipment, furniture, and supplies, pay for license and permits, as well as lease payments,
salaries, and advertising and promotional activities.
In summary, Frosty Ice Parlor aims to achieve its financial goals by projecting a total estimated
income of N$250,000 in the first year, estimating opening and sustaining costs at N$150,000,
breaking even at N$10,000 per month, and making a profit of N$250,000 in the first year,
N$400,000 in the second year, and N$600,000 in the third year. The funding for the business will
be sourced from personal investments and loans from banks and investors, and the proceeds of
which will be used to purchase equipment, furniture, and supplies, pay for license and permits,
lease payments, salaries, and advertising and promotional activities.