Wonder-BAR Business Description - Essay Example

BUSINESS PLAN ……………………………………. …………………………………. …………………….. Executive Summary Wonder-BAR is going to be an incredible experience of wine and entertainment for the general local community and people around the world who are attracted to Sydney’s natural gardens. Wonder-BAR is not going to be just an alternative to Bars that serve wines and drinks, but is an amusement park that will be designed and developed in a way to provide natural charms and superior services to people, especially to those who are attracted to Sydney’s Royal Botanic Gardens. In order to identify both micro and macro environments of a business venture, it is critically important to start with effective planning so as to foresee how different marketing variables can impact the business. An effective business plan will be able to describe the proposed venture in terms of the opportunities or threats of the products or services it offers, marketing forces, competition, business operation and its resources and financial projections (Leach & Melicher, 2008, p. 74). This paper is a brief business plan for Wonder-BAR and it presents the ‘what, where and why’ explanation of this business venture. Business Description Australia is one of the largest wine producer in the world since its wine exports have grown in an incredible place in recent years and the country has become market leader in the UK and the second largest in the US (Austrade, 2008). Australia’s larger population and experiences accelerated growth are always positive signs for most industries in the country. The wine and bar industries in Australia have greater growth potential due to mass production with emphasis on quantity with quality (Gruda, Vries & Marsman, 2011, p. 6). As Wonder-BAR will be concentrating on superior quality wines, the company will have greater opportunities and the company will be able to better seize this opportunity if it can meet specific as well as general customer-requirements for leisure, entertainment and natural charms. Wonder-BAR is proposing to introduce a new product in the brand name ‘Choc-Vine’, that will be prepared as a Chocolate Wine for meeting the needs of customers for small-wine treats. This will certainly attract large numbers of customers since these small-treat Chocolate Wines can be used as an alternative to sweets for people on the go and on the walk. The Wonder-BAR will be operating as a Limited liability partnership, because this form of business has various advantages such as limited liability, minimum management responsibility and direct pass through of profit and loss for taxation (CCH Australia Limited, 2008, p. 133- 135). The business will be operated 24 hours a day and 7 days a week so as to ensure maximum returns on the investment and increase the profitability by retaining its customers for longer term. The major targeted customers are people who visit Sydney natural places, mainly the Royal Botanic Garden from around Australia and worldwide. These customers are of mainly three groups, 1) 20 to 30 years youngsters, including students of colleges and universities, 2) married couple families between the age of 30 and 40 including their children and 3) all other people including old savvy business people, aged professionals etc. Wonder-Bar is planning to distribute its wine products through direct-sale with unique services, because in-bar services can always create greater positive zeal among its customers to keep them retained and making them feel the services to be worth-the price. Wonder-BAR thinks about the growing marketing opportunities of Chocolate- wine and thus proposes to design and develop these products as a small-treat for customers to help them enjoy using wines on the go. Chocolate and Wine have become perfect combination in Australia (foodsouthaustralia.com.au, 2012) and therefore Wonder-BAR expects this to be a better marketing opportunity. Market Strategies Wonder-BAR aims at STP (Segmentation, Targeting and Positioning) strategy by which the company will be able to define its strengths and limits and identify its potential customers so as to target them and to position the brand as well. Kotler and Keller (2006, p. 310) described that STP strategy is one of the most effective marketing strategies for startup companies as it can help the company identify the market segments, target them with all those activities that can satisfy them and position the products or service offerings. Wonder-BAR has segmented its total markets to the basic three groups and plans to concentrate on mass-marketing strategy. A marketer is always, and especially at the starting up, required to target a specific group of segmented people by designing, implementing and maintaining a specific marketing mix in order the company to meet needs and wants of the targeted groups (Lamb, Hair and McDaniel, 2008, p. 220). A brand that is well communicated to the customers can better be positioned among its customers, and therefore, Wonder-BAR requires to keep on communicating its brand messages to its customers to help them form good perceptions about the company in their minds. Competitive Analysis Competition in wine industry is fierce almost everywhere. When it comes to Sydney’s wine market, the competition is extremely rigorous due to that Sydney is an international tourist place and is an important market place for hundreds of well-reputed wine firms. Some of its major competitors are Hugos group, Kitkaboodle, The Vanguard, The Backroom, The Gaelic Club and Oxford Art Factory. Design and Development The business plan will be designed and developed by considering the major steps and components such as 1) obtaining the resources required for preparing the plan, 2) designing the marketing obligations, 3) developing time schedules and activities and 4) executing the program as planned (Kerin, Hartley & Berkowitz, 2005, p. 47). For the design and development purpose, the company will study and evaluate a number of strategies and marketing activities in regard to how they can be turned to be profitable and how they may help the company survive the competition. Operation and Management Plan The Wonder-BAR will be operated as a functional management firm in which a CEO will head various department heads who are in responsibility of coordinating and controlling various functional and managerial activities such as marketing, financing etc. The company will be controlled and run by the management team, comprising of 3 managers who are to direct, coordinate and control the activities of remaining 10 employees. Financial Factors According to company’s financial projections, it will be able to generate the revenues of $ 450,000 and to make a net profit of 5 % on the total revenues, amounting to be $ 22,500 by the end of the first year. It will be able to generate revenues of $ 12, 00,000 and the net profit of approximately 20 % of the total revenues amounting to be $240,000 by the end of the second year. References Austrade, 2008, Wine Overview, Austrade.gov.au, Retrieved from http://www.austrade.gov.au/Wine-overview/default.aspx CCH Australia Limited, 2008, Australian Master Accountants Guide, CCH Australia Limited Foodsouthaustralia.com.au, 2012, The perfect pair- Wine and Chocolate, Retrieved from http://foodsouthaustralia.com.au/2012/04/the-perfect-pair-wine-chocolate/ Gruda, J, Vries, J.D, and Marsman, T, 2011, Wine Industry - France and Australia: A Comparative Analysis, GRIN Verlag Kerin, R.A, Hartley, S.W & Berkowitz, E.N, 2005, Marketing, Eighth Edition, McGraw Hill Companies Kotler, P and Keller, K.L, 2006, Marketing Management, Twelfth Edition, Prentice-Hall, Pearson Education, Inc. Lamb, CW, Hair, JF & McDaniel, JC 2008, Essentials of Marketing, Sixth edition, Cengage Learning Leach, J. C and Melicher, R. W, 2008, Entrepreneurial Finance, Illustrated second edition, Cengage Learning, Read More