Triviola Business Strategies - Example

Table of contents

EXECUTIVE SUMMARY

Content creators are a company consisting of nine entrepreneurs, all with professional training in the hospitality industry. Brought together by a common passion for local culture, deep love for good food and an insatiable zeal for success, we created the company content creators. These essentially come up with content for and develop websites that work to improve the tourism sector through promotion of local culture locally, regionally and internationally in the tourism and hospitality industries. As our debut project, we are proud to present Trivola.

Trivola will be the answer to an increasing demand for access to information on the fast growing industry of cultural tourism. This business plan provides a well outlined and an intent guide to a website that markets promotes and sells local cuisine. We hope to provide a platform for local cuisine masters to present their simply prepared and exquisitely executed cuisine to the global front after conquering the local scene. As a company objective, we hope to revolutionise our beautiful culture one dish at a time. We hope to achieve this by providing access to the aforementioned services at a cost people can afford and in such a way that they aren’t socially, politically or economically isolated. Our core goal is to provide the global village a taste of our cultural diversity in a social, highly interactive, educational and convenient atmosphere that fosters tourism and cultural development.

The purpose of the proposed business is financial stability and economic empowerment for the company while at the same time creating employment for the local population and participation in the growth and development of the robust and fast growing tourism and hospitality industry. The business plan seeks to obtain financing. The additional investment is needed to start the job on site preparation and modifications, equipment purchase and to cover expenses in the first year of operations. Additional financing will be obtained from the local development funds, personal investments from all the partners and short-term loans. The funding in addition to the capital investments from the partners and the fund will allow Trivola to provide its customers with a full-featured internet culinary experience.

Business vision and mission

The vision of the business is to gain control over a large market share and appeal to many potential customers from both within and beyond the continent through the use of digital marketing

To offer authentic local dishes website for the entire global market aiming to foster cultural integration and diversity while upholding quality service, accountability, efficiency in service delivery, integrity and sustainability by ensuring customer satisfaction as a priority.

Company goals

1. To establish a feasible and profitable business that meets the needs of our particular publics and satisfies these requirements beyond expectations

2. To promote our culture through cuisine to the entire world while creating awareness and developing the tourism sector

3. To take a proactive stance in the robust cultural tourism industry and take advantage of the growing Internet use.

Business objectives

• The creation of a pioneer, unique, upscale and innovative website that will differentiate our services from any other service providers.

• Provide an affordable and convenient access to the resources of the internet and exploring its positive link to the tourism and hospitality industries.

BUSINESS ORGANIZATION

The type of business organization will be a general partnership business which will incorporate the owners who contributed to the start-up capital (Kennedy 56). This is in order to encourage the members to contribute promptly to the business having the sense of ownership equity in share of returns without discrimination. However, it will run independently of the owners. Some shares will be issued out, and the profit will be communicated based on the member’s contribution

DEFINITION OF THE MARKET

The typical definition of a market is a congregation of potential buyers and sellers of a product (market bureau of economic research 23). In our business, we opt to serve an undifferentiated market; we will have one standard product that cuts across all market segments. There will, however, be variations to appeal to the different groups of the interested customers.

MARKET DESCRIPTION

The business is aimed at serving all the customers from all the segments. The product is undifferentiated and therefore will appeal to the larger market (Philip Kotler 86). Through gaining control over a larger market share, the products will be served differently to the particular segment. The demand for our product and services is higher amongst the young generations who are more into the internet business.

Though the firm is new, it is expected to pick up and thrive within a span of 2 years. However there are some external factors that will affect the business, and this include competition from already established businesses with goodwill and financial constraints at the beginning of the operation, others will include, illiteracy and ignorance from customers, government policy and culture (Fleisher 18-20)

COMPETITIVE ANALYSIS

The Trivola Company’s product is a new product in the market whose potential competitors have not developed. Potential future primary competitors include mobile restaurants, online purchase and delivery and fast foods restaurants flooded in the market. The company is ensuring that better strategies are put in place, for instance, proper marketing, consistent information and content provision, copyrighting and patenting making the product more unique to achieve market stability and control a significant market share.

Secondary competitors include local restaurants, barbeques, and home stays. Trivola will be the first delicacies offering the website in its vicinity. We will distinguish ourselves from the ordinary food-based websites by providing authentic local meals exclusively.

The potential competitors will have and advantage over triviola since they have a well established customer base and have been able to build their reputation over the year of existence. Secondary competitors will have a move on their product and may also have appealed to their market. They have accumulated their assets and are able to influenced much based on their capital

MARKETING STRATEGY.

Our market will comprise mainly of the local and domestic tourists who are interested in adventure. Our product appeals to the digital market that is interested in social networking and internet searching (Posner 19). The service, however, will be offered to any willing customer indiscriminative of their category

Product

As aforementioned, our products are non-discriminatory which means that we will serve the low, medium and high-end consumer categories. As an organization, we want to position the services of Trivola in the market through actual service delivery, where the promises are delivered upon, creating undeniable relevance of our services through rigorous marketing and differentiating ourselves from any other website through exploring the uncelebrated cultures of the Kenyan people by way of food.

PRICING

When entering the market, Trivola will adopt the market penetration approach of pricing the services that Trivola renders since we enjoy the advantages of dominating the market in its entirety (council of economic advisers 65). With time, we will adopt a low market pricing approach so as to keep the customers and to keep potential customers at bay.

PLACE

The product will be made available on all the major social networks for everyone to access. To reach the potential customers and raise their awareness of the existence of our product. On-demand, the customers will be served from their local addresses

Promotion

The core method used for development will be advertising. This will be done through social media and other interactive channels such as direct mailing (William 32). Referrals will also be encouraged. Personal selling will also be employed during the launch of the product. The other method to be used will be psychological discounting as well as sales discount

DISTRIBUTION

Since ours is a website, our distribution channels are almost entirely web-based (Qing-Zhang 74). We shall use the internet to reach our clients via advertisements, emails, telemarketing and online promotions.

HUMAN RESOURCE REQUIREMENT

The managing director

He is tasked with:

• giving advice to the management and ensuring cohesiveness among the company partners

• motivating and supporting the employees in the organization

• Advocating for and promoting the organization and stakeholders

Skill/education

Should be a holder of n Masters in Business management and have a minimum of 5 years experience in the field

The general manager

Is responsible for:

• Overseeing the operations of the organisation

• Implementation of the organization’s objectives and goals

• Managing the company’s human resources

Skills/education

Should be a holder of an MBA with a minimum of 3years experience in a busy field

Director information department

• Updates the website on a regular basis for efficiency

• Regulates the flow of information within the enterprise and on the website

• Disseminates information to the website development and the public

Skills/education

Should have a BSc. In computer science with a minimum of 3years experience

Director programming department

• Oversees the implementation of the software

• Coordinates the work of the project managers

• Computes and establishes the budgets for the site costs

Skills/education

Should have a B.Sc. In computer science with a minimum of 3years experience

Director Financial Department

• Handles all the finances of the company

• Proposes budgets for the organization

• Ensures responsible allocation and use of funds within the organization

• Advice the management on proper financial behaviours

Education /skills

A holder of bachelors of commerce with a minimum of 2 years experience

Director marketing department

• Formulating and implementing the proposed marketing plans

• Keeping up with current marketing trends

• Updating the marketing plan by the trends

Skills /education

B.Sc. in marketing with a minimum of 2years experience

OPERATIONAL ISSUES

Being a new business Triviola will have to face some financial constraints. The initial capital to start off the business will be the contribution from the partners. This will be used to lay down the platform for investment. There will be the investment in the website, purchase of fixed assets required, and investment in legislative issues. The funding is not sufficient therefore there will need to get a grant from the business angel who will boost the operational phase. Contingencies will be catered for by the government loan

FINANCING

The owners will contribute the capital to kick start the website development and initial operations.

Start-up funding

This business plan is prepared to obtain financing to the tune of $38000.The supplemental funding is required to begin work on site preparation and modifications, equipment purchases and to cover expenses cost in the first year of operations.

Additional financing is still in the negotiations and process phase as follows:

• Grant from Business Angel $5000

• Government loans $15000

• Personal savings contributed by partners in equal amounts totalling to $18000 (2000 per partner)

PROJECTED INCOME STATEMENT

INCOME STATEMENT

2017 ($)

2018($)

Total net sales

other operating revenues

total revenue

Cost of goods sold

gross profit

[earnings before tax, interest n depreciation}

-depreciation

- interest expenses/+income

corporate tax

net

180000

120000

60000

400

59600

15,000

40,000

15,000

18,000

5,872,000

233000

132000

101000

650

100350

20,000

40,000

20,000

30,300

9,924,700

PROJECTED CASH FLOW STATEMENT

ACTIVITY

2017

2018

Cash flow for operating activities

Operating profits

-Interest expenses/+income

-Extraordinary charges/+credits

-corporate tax

Changes in working capital

+decrease[increase] in accounts receivable

+decrease[increase] in inventories

+increase[decrease] in accounts payable

Total cash flow from operating activities

Cash flow from investing activities

+Sales [purchase] of property, plant, and equipment

+sales[purchase]of long term financial investment

+sales[purchase]of potential, trademarks n licences

Total cash flow investing activities

Cash flow from financing activities

Proceeds from new loans

+increase[decrease] in share capital

-dividends paid out

=total cash flow from financing activities

Total net BALANCE

Cash balance [beginning of the year]

Cash balance [end of the year

5,872,0

40,0

15,000

18,0

5,799,0

800,0

900,0

450,0

2,150,0

1,500,0

300,0

165,0

1,965,0

6500

18000

9000

2500

62140

23000

35800

10,035,0

40,0

20,0

30,3

9,945,0

1,200,0

1,350,0

750,0

3,300,0

2,150,0

800,0

200,0

3,150,0

6500

27000

13500

7000

107950

35800

52950

PROJECTED BALANCE SHEET

ASSETS

YEARS

2015

LIABILITIES

YEARS

2015

Long term assets

Land, plant and equipment

+long-term financial investment[stocks

+goodwill[patents, trademarks and licences

=Total long-term assets

Current assets

Cash and cash equivalent

+Accounts receivable

+inventories [goods and material]

=Total current assets

=Total Assets

15000

3000

1650

2,1000

500,000

8000

9000

22000

43000

Long –term liabilities

Total long-term loans

Trivola development special loan

=total long-term liabilities

Shareholders’ equity

Share capital

Reserves

=Total shareholders’ equity

1,5000

5000

2,0000

18000

5000

43000

Funds requested and used

Since we are all new to the industry and also understand the technicalities that this fact may pose, we opted to acquire a government loan. Additionally, we chose for a grant from the setup government youth fund projects.in addition to our personal savings contributed. Equally, the funds received will be used as follows:

Start-up expenses to support

Start-up assets to be funded

Total funding required

Assets

Noncash assets from start-up

Cash requirements from start-up

Cash balance on starting date

Total assets

Liabilities and capital liabilities

Long-term liabilities

Total liabilities

Capital

Total planned investment

Start-up expenses

Total capital

Total capital and liabilities

Total funding

26000

11400

38000

912

10488

11400

20000

5000

26600

18000

15000

15000

38000