We as a group of business students were asked to form a new business, choose and promote a product in order to sell it successfully. We are required to build up our own stall within the college and then sell the product every day for 2 hours for 2 weeks long. This Business plan covers the time from 15 November till the 10 of December 2009. The sales revenues were £50. We were £50 by the college for purchasing our selling product and whatever other equipment was needed to run the stall and promote our business.
We believed that our business name should be unique so we named it “J MARK”. The name is made up of the first letters of all our group members’ first names. “J” for Joy, “M” for Mehdi, “A” for Amir, “R” for Rahila and “K” for Karm. We decided to name our company that since it’s very unique and every group member is part of it. We also had to make sure that our chosen name does not offend anyone in anyway since this could result in loosing customers.
At first we had the Idea of selling I.D strings. Amir came up with the idea since he believed that students would be interested in buying I.D strings. The college provides students with I.D string but they look all the same. The rest of the group agreed with Amirs idea since everyone was very sure that people would like new ID strings with a better pattern/colour or design. Amir’s friend who owns a Mobile phone shop would have get the Product as a whole sale and for a very cheap price. To be hundred percent sure that our product will succeed; we created questionnaires and handed them out in College. The questionnaire was all about questions whether students would buy I.D string and if not what products they think should be sold in the college.
However, the results of our questionnaires didn’t result positively at all. Every single student who was given the questionnaire answered with a No to the question “Would you buy I.D strings if they were sold in Uxbridge College”. Therefore we had to cancel our Idea of selling I.D strings and thought of something else. Amir then came up with another Idea of selling Soft fizzy drinks with a flavour that we believe everyone will like. Thereafter, we created a new questionnaire to see whether people would be interested in buying Mango and passion fruit flavoured soft drinks and the results were positively. Having decided our product to sell, we started thinking of a name for our business.
This is the 2nd Questionaire we designed and used for our research
The results of the 2nd Questionnaire is given below
Ownership: legal form and requirements
We have held a meeting within our group to discuss the roles each of us will over take and the requirements everyone would be able to fulfil. This was an important discussion since wrong decisions could affect the performance of our group a lot. We decided to give Joy the role as a Managing director since she has previous experience in managing a group. Karm is very good in maths and was therefore given the role as a finance director. He will be in charge of recording our expenses, Profit or Loss. Rahila has over taken the role as our sales director. She was given this role because we are sure that she is able to interact with Students and Staff. Amir will be buying stock everyday so he was given the role as our Operation manager. He will be in charge of purchasing our product every day and transporting it to college. Since the transport of the product will not be so easy at all time, Amir has requested Mehdi to be his Assistant. Mehdi will help Amir to transport the product from the Station (Uxbridge) to the college. He is also in charge of getting stock at times Tesco runs out of stock.
Product Details including USP
We are going to sell Soft fizzy drinks called Rubicon. We have decided to sell two different flavours: Mango and passion fruit. Our USP (Unique Selling Point) is our Products Price and the location it’s sold. Since Uxbridge College doesn’t sell Rubicons we can be sure that our stall will be visited by each and every student who likes Rubicon. The Off License which is located about 5 minutes away from Uxbridge College sells Rubicons for 65p per Can. This means we sell the product for 15p cheaper than in the shop which is a good reason for students to buy their drinks at our stall. We buy our stock at Tesco’s and ASDA. This is because these stores sell the Product for 30p per Can. Our profit is 20p per Can as we are selling the Drink for 50p each can. Tesco is located right opposite Amirs house; therefore there will be no additional costs for transporting the product. It also spares much stress and time since we do not travel to different places to purchase the product.
Resources – Physical Premises / Location / Equipments
We will be selling the product in the Mall and we have decided to place our stall nearer to the Exit. This is because otherwise teachers and students who come out of the Door right next to the exit wouldn’t see our stall. Every person who enters the college has to pass the exit when they leave the college, so we can be sure that our stall will be noticed by every one. Tables, chairs and display boards will be provided to us by the college. Rahila is in charge of bringing posters to put up around the table and on the display board. Joy has agreed to bring table clothes in red to make our stall look more colourful. We have decided to use red table clothes since the display boards are blue. We are sure that the combination of these two colours will look attractive and therefore get peoples attention.
Market Analysis- Target Market/Competition
Since our product is a refreshing fizzy Soft drink it will be bought by teachers and students. So our Target customers are both: teachers and students. Another group of Business students called “Majer” also sell Soft drinks which make them our competitors. Our aim is to sell more products than Majer and get more peoples attention to our stall. However, Majer is selling a different flavoured drink which means everyone who likes Mango or Passion flavoured drinks have to buy it off us.
We have made sure that the students and teachers are already aware off our Group and product. Group member Joy, Rahila and Karm have designed and put up posters which advertises our Product and opening times. We have also given the designed poster to our teacher to publish it on moodle. We believe this is a very good method to advertise for our product since almost every student visit Moodle daily.
Pricing and Distribution Strategies
The College will provide our group with £50 pounds which will be enough to buy the stock for the first day. We believe that after the first three days we will have made enough Profit to buy our stocks from it. We are aiming to sell around 50 cans per day, which makes our profit £10.00 per day. This means, after the first three days we will have made £ 30.00 Profit in total. On the fourth day, the stock will be purchased from this money only. £30.00 is enough to purchase 100 cans so if only 70 cans are bought, there will be £9.00 left to use as the Change whilst selling our product.