Min business plan

0 Comment

Market Analysis for ‘Cool Point Gourmet Ice Cream Parlor’ Introduction This market analysis tends to determine the suitability of the business and the general dynamics that characterize the market in a particular industry. It is also referred to as an investigation that is documented. The main purpose of this is in order to help the company that intends to invest in a particular industry at a specific locality and help in the planning of its activities. (Aaker D. A., 2010) The market analysis is also used to assist in inventory decisions. Other activities include the purchase of ingredients and freezers involved in the production of ice cream, the expansion of facilities and the human resource. In this perspective, the cool point gourmet ice cream parlor needs to have an analysis of the market that is available in Vermont. The following areas will be essential in assessing the potential market .Target MarketThe market analysis is expressed by the market size through the potentiality of the market and the volume that is characterized in particular potential area of investment. The ice parlor will tend to concentrate Vermont area that constitutes mainly the youth. This will create a huge consumer base. This is because the youth are the main consumers of ice cream. This also makes up the potential market for a business entity. The data for the best area for the best place to invest may come from financial data from major competitor Ben and Jerrys ice cream and customer surveys. What gives the company an upper hand is the enthusiasm and a passion for producing unique, tasty ice cream. This is the part where the team will capitalize on the opponents lack of new variety into the market and introduce variety to the market. Competitive Analysis This relates to the differences in the market. The differences are in terms of movements either upwards or downwards. The ice cream business is an open market that is by many competitors. However, the business tends to be fair since the investment capital is enormous. Therefore, cool point gourmet ice cream parlor will employ other techniques to lure its customers. The business entity will use discounts, unique packaging and offers in order to lure customers. These actions will help to compete well with other businesses selling ice cream. SWOT Analysis Strengths and Opportunities The business entity will extract information from the past to positively evaluate and predict possible growth of the business in the future. The ice cream business has been found to have an ease of growth. However, the business is dependent on the weather seasons. Its peak is summer whereby it requires only a few weeks to be established. Another factor affecting the growth of the business is holidays and days. The business has been denoted to have a peak on weekends and holidays. Therefore, this business entity will put into consideration the holidays and all weekends. Weaknesses and Threats The business, however, is faced by competition from other firms in the same field. The other challenge is the seasons that do not favor the consumption of the commodity at hand. The place to source enough funds for the venture also poses as a potential challenge. The business entity will tend to apply for a loan from the available financial institutions. The quality standards will also be high in order to have a fair competing ground with the competitors already in the market.Income AnalysisIncome statement $ $ Debit creditRevenues Gross revenues 2000 ———Expenses: Rent 90 Purchase of inputs 250 Salaries and wages 100 Marketing and advertising 50 Equipments 150 Legal requirements 80Gross expenses 720 ———–Net income 1280 The business is estimated to give returns of over $2000. However, this must comply with the seasons whereby the product involved has the largest demand. Other determinants of the operating funds include the government restrictions and the fluctuations in prices of the inputs.Even Analysis The business is expected to break even at least three month after it is established. The main factor for this particular business will be the application of current technology that will reduce costs. The firm will tend to substitute the use of energy from electrical to wind and solar power in its preparation of its commodity. The firm will also pack its commodity in means that tend to reduce the overall cost. The main constraints in calculating the breakeven point are the unpredictable weather conditions that tend to induce consumer preferences. ReferencesAaker D. A., M. D. (2010). Strategic Market Management – Global Perspectives. London: John Wiley amp. Sons Ltd.