The Business Idea for a Food Business - Essay Example

Executive summery This is a business plan which represents a new entrepreneur’s dream. The new business idea is of a food business. The of the company is Crazy Food plc which will be established as food processing company in London, United Kingdom. The company will produce and market processed food and ready to eat food. It will launch its products through some new brands. The company has also decided second stage product line up which are cooking ingredients and the company will be diversified into this business if the processed food business become successful.

The company has decided to develop first confectionary named as Crazy Bite which carries the identity of the company as well and it is essential for a new company to become popular through the penetration of the brand or products of the brand. Crazy bite is a brand that will represent different flavoured sweets bar with different shapes and colour. The product is a confectionary food which is crispy in nature. Chocolate flavour will be the main focused product of the brand as taste and quality will be very good and competitive if the product is coated with small chocolate layer.

Ingredients of the products make it more tasty and demanding. It is a confectionary food in the vegetable category which will also be offered in different fruit flavour to satisfy the demand of wide segment of people with different food habits. Opportunity of the business with respect to this product is that the confectionary market size in United Kingdom has been increasing over the past few years. Low calorie and low sugar product of the company will fill the gap market in terms of making it demandable even among the health conscious people.

The main target segments of the brand are kids and youths as studies on snacks food says that they are the maximum revenue generator of confectionary food companies. People of all ages and different food habits can also have this. It is a type of food which people can have any time they want. A combo pack of four different flavoured sweets has been considering as one unit product to increase the price per unit which is $20. Most of the time people buy snacks food for having together with 2 to 4 people generally.

So, this combo pack has been developed. Customers can get four similar flavoured products in on a special order. Cost per service is $4 which is very lower with respect to price. This substantial difference in cost of production and sales will help the company to come in price war with the existing brands in the market. Customer per day in the shop is expected to be 200 according to the market study of the location. Average order per day is expected to be increased in the following years. Based on the assumption of sales and other expenditures the initial rate of return will be 67% where profitability index is 4.6. Considering all assumptions and expectations will be accurate with the actual results from the business, the company will break-even in second and half year from its initiation.