Innovation and Enterprise 2012

PRESENTED BY:

Student Name: Student No :

Arth Suthar 2900682

Course: Subject:

B.Eng Mechanical
Innovation and Enterprise Assignment 2 Marketing and business plan

Academic Year: 2011-2012

Arth Suthar(2900682).

Innovation and Enterprise 2012

TABLE OF CONTENTS

Chapter Titles / Forewords 1. Business Introduction 2. Business Stratup / Strategy 3. Vision and Mission of the company 4. SWOT Analysis 5. Future Planning & Co-ordination 6. Marketing 7. Branding & Promotion 8. Summary & Conclusion 9. References : : : : : : : : :

Page Nos. 2 2 3 3-4 7 8 9 9 10

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Introduction towards my hobby / passion besides my engineering degree

I am a foodie and love to eat anything and almost everything at least try once to have a taste of it and make the decision, not that going along with the ideas of friends and families who had them already and as they felt it good or bad has to go with me the same way. As there is an old Indian saying that dress up like what onlookers like but eat as you like. Yes, am an Indian and I love other foods apart from India. As I am studying in UK and living here for last 2 years and about to complete my 3rd year very soon, I have learnt many a things through hard ways and among them was - cooking. Yes, many of my colleagues would also agree upon this, that living in a foreign land all alone and surviving is a very hard task and upon that when you are supposed to have low or no income and have to survive the stringent environment trying to save every little penny for the future, cooking for your own self, does matter a lot and saves you a lot too. I am proud to say that I love cooking as I love them eating. Now here comes the best part where my part of the project starts. Though I have selected engineering as my subject, I do have a plan to thrive on the same subject and make a world around it. But God forbid, if that doesnt sum up well, than I would like to have a business putting my hobby in line and make a profession out of it. I would like to have a food chain of my own and by my own decision and hard work. I know that it would be difficult for me to start one in UK but the consideration I have is starting the food chain in my home country India. It is so because, I have good contacts, relations and goodwill which would surely help me in building and running my business. Now, how its going to be, is as follows:-

Business Start up / Strategy and Planning:-

What is a Business Strategy? It can be termed as a comprehensive plan for achieving success, and the accumulation of decisions and activities that we select to achieve our long-term goals. Strategy is the path we choose. Every organization has to figure out what its goals are and then how it is going to achieve it, with its said products, customers and operations.

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(Source: http://www.briefcasebooks.com/formisano01.pdf )

For e.g., in a football match the managers of both the teams were asked as to what their strategy or game plan were. And both said the same thing as to they have had a strong game plan with which they will play and win the match but during the game the managers frequently changed their plans as to pull down the opponents defence and strengthen its defences, reacting to injuries as well as try to play the mind game with the opponents and tackle all the weaknesses. And at last whichever team wins gets the applause but that doesnt show that the opponents were bad. Hence there will be competition and the person wins, gets the better market opportunity.

My Vision would be to have a retail chain of my own, not only in my particular state but different part of the states as well as having a foreign food partnership in my state like Mc. Donalds or Pizza Hut or any such food chain where I would be handling major part of the distributorship in the whole state apart from my own fast food chain.

My Mission will be to gain maximum profit with low cost and environment savvy food making techniques.

Before going for any kind of business an analysis of the same has to be done which is called SWOT Analysis, where as SWOT means for S = Strength W = Weakness O = Opportunity T = Threat

Strength = This is where we have to analyse our strength which can be put forward for the business to prosper during the course of time and which will be a plus point during any competition Weaknesses = There always has to be a weakness in running a business or any kind of work and if it cannot be determined now, it will surely show up during the course of the business. So a good strategist always should be ready to face any kind of weakness that comes in and face the challenge.

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Opportunity = For a business there is a hide and seek relation as far as opportunity is concerned. It shows up and again remains in a hideout or slips away for another. So, he is said to be a better strategist or business man who grabs the opportunity as and when it comes and in the way grows from a sapling to a plant. Threat = As opportunity threat also comes but not in small packages but in abundance and one of them is competition from a competitor. Also, there can be natural disasters or any unconditional environmental factors which can hinder your growth of business. So, every business man has to work according to that.

Similarly, in my case too I would like to make a very basic start up try to make a strong base. And for that I have decided to start from basic for two reasons and they are (i) Lack of fund for a bigger investment program and (ii) playing it safe where risk would be minimal in case of a loss. Every man who jumps into business, doesnt have to be a multi millionaire. He can be a good business man if his ethics, his ideas or good and have a good base, would surely can make a mark. I too would like to start the same way. I do have a reasonable bank balance with which the first major step would be 1. Buy a small second hand van kind of vehicle which would be good enough to have only the front 2 seats for a driver and a helper and the back hatch area would be converted into a small kitchen where I can accommodate the food items which I would be selling along with 3 side opening large windows to take orders and serve customers. Moreover it should run on either a battery or any low emission fuel which is not only cost effective but also is environment friendly. As far as food items are concerned, some of the basic things have to be made in advance which again I can have it made from my home itself. India is famous for delicious breakfasts but it differs from state to state. As, I have to been to many a states and tasted the foods I know which would be the better option for me to start with and that too with all the best variations, which again hasnt got an immediate competition to it. I know if not today, there will arise a competition for me but by the time it arises I would have made a good chunk of fund and also a name which would help me in establishing or expanding my business. Moreover, my experience in London and my job in Mc. Donalds would surely work as an Icing on the cake. 2. The second most important part would be trying making the food cheaper so that I can serve to the masses and all kind of people and from all walks of life who live in this

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country i.e. rich or poor and be it Hindu, Muslim, Sikh or Christianity can come to one stall and have their best tasty food. In short it should be affordable yet tasty. 3. The one thing I have really learnt living and working in UK is about the precautions to be taken towards health and hygiene and to incorporate to the maximum in my plan. This would help my customers to believe in me and my product and this good gesture would take to sustain my business in the long run. 4. Spotting the best place and time where and when my food would have the maximum customers, and as per my knowledge it should be in such a place where there is always a rush of people and that too till afternoon, for example in front of a hospital, a court or magistrates building, an Income Tax or bank building where people throng and have to wait for long and can have a good business prosperity. 5. Always try to have peoples customers feed back as it would help me in making more future and better planning. 6. Finding a second area where I can run my business with the same products but in a different place altogether and that too till late evening, like parks, supermarkets, or where every evening there tends to be huge gathering and that was the main reason of making a mobile restaurant. Also there will be some extra variety of food which would differ from the morning ones like Noodles, Egg Rolls, English Vegetable Burgers etc., which would pull customers from other competitors.

So, in my business plans if we speak about SWOT analysis than we would make out many which would surely be a positive and stand out from any other fast food distributor. If we analyse them categorically than it would be as under:-

a) S (Strength) = saving of money in many ways like no fixed rent or electric bills to be paid. Vehicle would be running in either battery or low cost fuel which would save extra bucks than petrol or diesel. As in many part of India, there are no parking taxes other than the metropolitan cities and that too at some places, so no extra expenses. Food would be cheaper and healthier than other suppliers. Different variety of food under a single roof. Clean and Hygienic way of cooking and serving, which again is rarely found in Indian food makers who sell them on road corners other than big names or restaurants. Have got good banking relation with various bankers who can help me in lending loans as and when required for expansion of my business and that too under low interest rate.

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Can drive and also got the cooking knowledge of the products am going to sell, so if ever I find the urge to discontinue my helper at any given point than it would not effect my business. b) W (Weakness) = Almost nothing as I know the mentality of the customers and I am confident of winning their heart. Only weakness would be running the business of my own with limited resources at first. But can overcome once the business takes off. c) O (Opportunity) = There are so many opportunities in my country like having a drink stall where ethnic fresh mouth and mind soothing cold drinks as well as international cold drink supply. Door to Door supply or we can say supply upon order. With increasing profit percentage can opt for partnership with a national or international food chain supply where I can have a better deal show casing my previous foreign experience. d) T (Threat) = There can obviously many threats like the biggest would be to tackle recession and food price inflation which tends to inflict every now and then in India. Natural calamities like flood, earthquake etc where it would bring the sales down in a dramatic way. Competition would be another challenge to tackle. The government norms would may create a hindrance in my future alliances, merges, collaborations, specially with any international firm.

Future Planning and Co-ordination:

As stated earlier in my mission and vision, that including profit gaining I have the urge to set up a big food chain where I will not only be the sole CEO / Director of the company but also would like to have an International food chain venture with me where I shall be the sole responsible person for running any number of counters of the international brand in the whole of the state I would be residing for eg., either Mumbai or Gujarat or Chennai or Bangalore etc. So to reach the destination there has to be proper marketing too which would not only market my ability but also to market my own project, product (i.e. food made under my brand name) and my brand as a whole.

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Marketing :

What is marketing? Marketing is defined by the AMA (American Marketing Association) as "the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large." As the whole definition is self explanatory we now have to have a marketing but its only half complete without a proper market research. So, market research generally constitutes of 4 kinds or variants like: Consumer Oriented Market research Business market research or B2B (Business to Business research) Qualitative market research Quantitative market research Consumer Oriented market research is that kind of research where we have to find out what exactly the consumers want. And if they ever want to have a certain kind of food for instance than what would it be like and what would be the cost factor for the same. For example part of Gujarat likes to have its food made with vegetable oil whereas, parts of Chennai or Bangalore want them to have in Coconut Oil. But if we can manage customers with a hygienic kind of oil and also convince them about it than there will be no problem in selling our products. And in my business it will be a major lookout as how to convince different ethnic groups living in one of the largest secular democratic country of the world, where we have enormous taste buds among all groups of people. Business Market research is where we kind of buy and sell our product and share our products, retain our existing customers with good services as well as making new clients or converting new leads to clients. Making a brand image of a particular company and showcasing its uniqueness against other suppliers or competitors. Making of Goodwill with all the supply chains which again would help in expanding the business with their long term promise and support in near future. Qualitative market research is that part of the research where quality of a product enacts the major role. May be Rolls Royce manufactures only 100 cars in a single year but the

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quality speaks for itself being every details put under the frame is as per the particular customers personal choice. Here, the price doesnt matter but what matters is its quality, endurance and a status identity. And in my case, if ever there arises a competition and the competitor comes up with a cheaper version, than my quality would say it all and consumers would prefer to pay a little more for a pure and fresh food rather go for cheaper ones and pay a lump some on medicines. Quantitative market research is actually a social research kind of practice where it affects with the involvement of 4 Ps of marketing and they are Product, Price, Place and Promotion. In short a market can be improved with proper product, having proper pricing and being placed in a perfect market place with effective promotion can gain a major market share.

Branding and Promotion:-

As we all know that we all are living a e-life that is mostly dependant on electronic device activity be it games, news, sports, marketing and business, we mostly depend upon computers. So, other than putting advertisements on print media like local newspapers and hoardings etc, if we tend to create a website for the company and can advertise the products through different suppliers, we can tap the e-viewers and can create a niche market of our own brand. With numerous offers for every customer we can tap many a customers who like to be at home and get their commodities delivered at home at the least possible time. Also, looking into the business growth prospect we can introduce our own small scale factory where the same foods sold in the shops and counters shall also be delivered to online and telephone orders in boxes under our own brand name. This can really uplift the image of a business. Any kind of recyclable carry bag with the brand logo would also help in getting enthusiastic onlooker a gaze on the same and may impel him or her to at least go for the product once.

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Innovation and Enterprise 2012

Summary: At last coming to the conclusion of my Business its proposal, strategical analysis, planning for an expansion, marketing research and brand promoting - I am very much sure that I wont fail in having a niche market and shall be very much proud to be a CEO/ Director of such an enterprise where everything would be my innovation and run under my strategy and planning. If we recollect the first phase of my business, it somewhere denoted as there will be one helper but all the revisions and expansion and merging would surely take a long time and during these phase I am sure that my business would have engrossed a lot of fund along with lot of recruitments of needy and intelligent employees which again solves one of the major problem of unemployment under any government and in any given country. Though it will be a like a droplet in a sea but who knows that a gathering of droplets can make a wishful rain in a remote barren land and let many life grow into prosperity and live with a hope of many more similar rains to come in near future. Moreover, with help of my UK work experience and helping the government churn some foreign currency with help of my food chain collaborating with an international food chain would surely be a big endeavour in my business growth as well as a demographic contribution to the country too.

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References:

Research of AMA (American Marketing Association) www.wikipedia.com http://www.trovus.co.uk/b2b

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