Developing a New Business - Term Paper Example

? Market feasibility report Overview of business idea Entrepreneurship has become one of the buzz words in the era of 21st century. It is the growingphenomenon that continues to excite and influence human beings for the imagination of new business idea. Entrepreneurship is the prestigious term which has resulted millions of small home based business to fortune 500 companies in the world. So, developing a new business idea is the first and most important steps of entrepreneurship. Before getting into introduce the new business idea, it is important to define objective of a new venture. An independent firm needs to market unique product or service in the target market or existing product or service in a unique way or in a unique representation. The new business idea which is to be introduced is business of food industry. The name of the company is Crazy Food plc. It is a food processing company which is based in London United Kingdom. The company will be initially focus on processed food and ready to eat food and if it becomes successful in these products line up then it will develop a brand of cooking ingredients. The first brand of this company will be a confectionary brand which is called Crazy Bite. The packaging quality needs to be very good and for this reason the company will not be outsourcing for the packaging as that will be more costly for a new venture. The company has focused on the packaging of its processed food product so that it becomes another USP of this brand. Crazy Bite is a brand that have different favoured sweets bar which will be available in different shapes and designed. It is one of the confectionary products of crispy in nature and coated with chocolate. The ingredients of this product are cashews and butter which make it tasty and more demanding. Different fruit flavoured product will be coated in different coloured cover matched with the flavour. It is a vegetable category of confection which people can have any time they desire. To target the entire demographic segment the company will focus on the low calories and low sugar products for the health conscious people. Geographic location analysis The geographic location of the target market is the main factor needs to be analysed before starting a new business. The analysis will provide the viability of the business especially the product acceptability by the product 1. Economic environment The emergence of global recession had lent a large impact on the snack and confectionary market in United Kingdom letting the sales volume dip along the period ranging from 2004 to 2009. Thus change in economic climate tends to largely affect the snack and confectionary industry of the region (Agriculture and Agri-Food, 4). 2. Technological environment Confectionary and snacks industry in United Kingdom is gaining a large space owing to the development of technological base through the use of effective machinery. Such machinery use would help in the production of large volumes of confectionary and snack items and in rendering quick wrapping. 3. Market demographics trends The demographic profile in United Kingdom is found to largely impact the business performance of Fresh Food. Consumers in United Kingdom are increasingly becoming highly health conscious thus abandoning the consumption of snack items for the fear of becoming obese. 4. Political environment For food production business food licence is required from the food and nutrition department of government authority. The company need to concern about the quality and hygiene factor of the food products they produce so that no issues come from the customers as well as from respective authority. Developing the production house the local regulatory bodies’ permission is also required. 5. Social environment There always a high demand of the confectionary food like Crazy Bite among the people of the society in United Kingdom. These products are well accepted by the people and as they desire new products especially for a new confectionary products. These food products are common foods which people have any time they want so always appreciate a new brand as the taste and preference of the people are changing and they always want variety of food products in the market. So, social environment of this new confectionary product is for the business (Regmi & Gehlher, 15). Target market analysis 1. Basic necessities of people The market demographics in United Kingdom reflect that the modern consumers have become more health conscious for which they tend to reflect from sweetened snacks to snacks made from nuts, fruit products and popcorn. Moreover the people also reflect an increasing demand for products like chips and dark chocolates as they contain less sugar and are of crispy nature. The consumers in United Kingdom are found to be much interested in gaining the snack item from bars and cafeterias rather than from street corners (Mintel, 7). Sales of confectionary and snack products in United Kingdom are increasing for the age group pertaining to 15-24 years and 35-44 years and also for the age group above 55 years. 2. Consumption trend The market trends for the snacks and confectionary market in United Kingdom reflect that from 2004 to 2009 the market for snack products like chips have largely declined owing to factors like absence of the right flavour and use of ingredients like sugar and sodium considered unhygienic by the target customers. However the sales trend for the confectionary items like sweets and other sugar and jelly items rose along the period ranging from 2004 to 2008. It is observed that snack bars that mainly focused on selling of items containing high fibre content happened to gain a positive consumer mindset than those serving high calorie snack items (Fletcher, 15). 3. Customer taste and preference People tend to buy the snack products from kiosks, general merchandise outlets and other specialty outlets. During 2009 around 42 percent of the snacks were purchased from convenience outlets while in the second line around 21 percent of such items were obtained by the consumers from vending machines in kiosk bars reflect the consumption trendiness of the United Kingdom consumers. 4. Market size Overall market for the snack products in United Kingdom reflected a growing trend as it gained around 34 percent growth during the period ranging from 2004 to 2009. Confectionary items in United Kingdom also reflected a growing trend of around 18 percent during the same period from 2004 to 2009 (Agriculture and Agri-Food, 5). 5. Value creation through product Value creation through the production of processed food products especially confectionary products is higher than other small investment business. As, from few basic and common food ingredients these products are made in a effective way for getting customer attention to the products (Brushett & Franklin, 5) 6. Product acceptance Product acceptance of a new confectionary food product or a new brand will be highly accepted by the people of United Kingdom. The level of acceptance is different among the people of various demographic segments. For this reason the promotional activities are made by the company depending age, eating habits, life style of families and many other factors of different food consumption behaviour of the people. This will mostly accepted by the kids and the younger. According to the past one decade food consumption trend of the people of United Kingdom, this estimation has been done. People above 40 years old are become more health conscious. As this type product contains sugar and calories so this segment of people will contribute very less to the overall sales of the product. For this reason the company needs to develop low calories and low sugar product for this segment of people (Key Note, 12). Works Cited 1. Agriculture and Agri-Food Canada. Consumer Trends - Packaged Snack Food Consumption Trends in the United Kingdom. 2010. Web. 04 June. 2012. . 2. Agriculture and Agri-Food Canada. Confectionery in Western Europe. 2010. Web. 04 June. 2012. . 3. Fletcher, A. UK confectionary market outlook positive. 2006. Web. 04 June. 2012. . 4. Mintel. The chocolate confectionery market. 2011. Web. 04 June. 2012. . 5. Brushett, L. & Franklin, G. Market Planning for Value-Added Agricultural Product.2001. Web. 04 June. 2012. . 6. Key Note. Confectionary. 2011. Web. 04 June. 2012. < https://www.efolio.soton.ac.uk/blog/pd7g10_mang6184/2011/11/28/keynote-confectionery-2011-report-nestle-kraft-food-mars>. 7. Regmi, G. & Gehlher, M. New Directions in Global Food Market. 2005. Web. 04 June. 2012. . Read More