Mama G Grocery Store Business - Example

Mama G Grocery Store Business Proposal Contents 0 Executive Summary 2 2.0 Company Summary Error: Reference source notfound 3.0 Products and Services 4 4.0 Market Analysis 4 4.1 Market Needs 4 Table: Market Analysis 5 4.2 Market Trends 5 5.0 Strategy and Implementation 6 5.1 Marketing Strategy 6 5.3 Sales Strategy 6 5.4 Strategic Alliances 7 5.5 Sales Forecast 7 Table: Sales Forecast 7 6.0 Management 7 7.0 Financial Plan 8 References 1.0 Executive summary Mama G Grocery Store is a new business located in uptown New York City. The stores purpose is to deliver healthy food like vegetable from distinct parts of the world to help the populace get out of the use of fast foods that cause obesity. The business will include a small eating area, but it will deal majorly on takeaways. The store will provide fresh supplies brought directly from the farm. The store will provide health veggies, fruits and clean lean meat. Mission of Mama G Grocery Store is to provide an authentic, quality and a hard to find service to the residents of uptown New York, which is healthy with a pleasant atmosphere. The motto of our business will be healthy eating. The store will also serve salads, sandwiches, freshly pressed fruit drinks and picnic lunches. It will also provide kitchenwares, picnic items, cookbooks and other services related to the kitchen like outside catering. All the recipes that will be used in the store will complement the fresh items sold in the shop. The shop will have gift baskets to attract the consumers, for example, a gift for the customer of the month and such like things (Springer, 2005). The food industry is going healthy because many people want to cut on weight and reduce the rate of obesity in the country hence the essence of starting this business. Many consumers are looking for a quality healthy supplement to their diet hence the boom in this business. Many people in the city have a tendency of eating fast foods because they want no time wastage. Most of these fast foods are unhealthy and tend to cause obesity. These people are looking for substitutes to their diet while maintaining their stance on time wastage. He store will provide the substitute they are looking for while helping them continue keeping time. Alliance with farmers in the country and those outside the country will help the business in delivering the required service by providing fresh supplies that will be used in the cooking and those sold while fresh. Mama G Grocery Store net profit is predicted to rise over the next four years, this profit will be ploughed back, and some used to pay the loan acquired to start up the business. This will be done to help the store grow and be able to attain its international outlook. To achieve this owner will provide an amount of $30,000 and seek a $100,000 small enterprise loan. This loan will be used for start-up and will be paid back from the net profits in a period of years. 2.0 Company summary Mama G Grocery Store will be located in uptown New York City, on the main street. It will be an upscale grocery shop and diner with a distinct menu that includes unique servings from all over the world. The business will be a sole proprietorship managed by he owner with a staff of forty employees to help in the making of the food products, serving to attending customers and delivering the said products. It will also consist of the kitchen, a selling/serving point, and a place for eating, completed with a unisex public restroom. The mission of Mama G Grocery Store is to provide New York residents and visitors with a healthy diet that will keep obesity at bay. The store will deal with authentic hard to find recipes and products that will make the consumers come back again and maybe tell their neighbours about the store. The motto of the store will be healthy eating and our decor will depict the warm feel of an old outdoor market (Reeds & Kitta, 2002). The diner will serve salads, sandwiches, freshly pressed fruit drinks and picnic lunches, it will also sell various kinds of kitchenware complete with unique and original recipes of delicacies from unique cultures all over the world. These recipes will highlight the stuff sold in the store. 3.0 Products and services Mama g grocery store will offer the following services to the market, groceries of a higher quality that will be brought in from the best fields all over the world. The store will use the services of places such as the Mediterranean, Italy, Mexico, parts of Europe, Australia, and parts of Africa. These countries give impeccable services in terms of groceries delivered. These items will include oils, sauces, spices, peppers, spreads, cheese, pasta, clean lean meat, beverages, rice, and fruits. These items will be used in the production of various types of recipes to be sold by the store. These products include vegetable salads, vegetarian pizzas, hotdogs, and a host of other delicacies. The diner will have three types of meals depending on the time of the day. For breakfast, the diner will offer foods like scones, quiche, biscuits, and a host of beverages including tea and coffee. The Lunch and dinner menu will have vegetable sandwiches, homemade bread, salads, and other daily specials that will wow our customers. Picnic lunches will be available at the customers asking and will be specially packed according to each customer’s preferences. This service will also be made to available for home deliveries for consumers around the vicinity of the store. High quality fresh fruit juices, coffee, soda, and tea will be served the whole day too (Springer, 2005). 4.0 Market Analysis 4.1 Market Needs The main target markets for our products are the residents of New York and those working there and are looking for healthy cuisines, surrounding businesses and firms looking for health and tasty meals for their staff. The store will also gladly serve domestic and international travelers visiting uptown New York. Another group of people being targeted by the business is families looking for tasty and healthy supplement which are also affordable, these are families who would rather bring in an already cooked meal or those who will buy the groceries and the recipes so that they can cook at home. The diner will be striving to attract those people who are looking for a silent environment to chat or take a glass of juice or a cup of tea. Moreover, the store will be looking to attract those clients who are looking for fresh and high quality supplies for their kitchens. Each market segment comprise of consumers seeking satisfaction in their own unique way, they are seeking a quality yet cheap pleasant environment to satisfy their needs. These people include the residents, employees of various establishments and those in vacation in New York. Market Analysis Market Analysis Year 1 Year 2 Year 3 Potential Customers Growth Surrounding Businesses 10% 35 39 43 Residents 3% 8,485 8,740 9,002 Guests 0% 780,578 780,578 780,578 Total 0.03% 789,098 789,357 789,623 4.2 Market trends The market for healthy foods is on the rise considering that many people now consider their diet as one of the factors that contribute to a healthy life. The amount of people shifting to a healthy lifestyle is gradually increasing. Share of the New York Retail sales of healthy Foods & Beverages by Outlets 2010 Type of Outlet Sales Percentage Supermarkets & Grocery Stores 40.6% food/Specialty Stores 38.3% Depot Clubs 10.9% All Other 10.2% This confirms the above fact and thus a need to create such a business to tap into the growing potential in this market (Baugh et al, 2005). 5.0 Strategy and Implementation 5.1 Marketing strategy The strategy for marketing will involve promotional advertisements in local newspapers, in the social networks, the yellow pages, at local businesses flyers and postcards send through the emails. Promotional tea mugs given to customers that can be packed at a discount. After the opening of the business, the customers already attending the establishment will be used to bring their friends and family to the establishment by providing quality services. 5.2 Sales strategy Our most important tactic is creating an environment where the customers come again and again because the business provides an impeccable service second to none. The staff will be knowledgeable and friendly, our products highly rated in terms of quality and an atmosphere, which is very comfortable and feels the consumer’s needs. Our pricing will also be as competitive as possible to cater for a low class consumer base. The fact that most of our products will be available to most populace does not mean that the quality will be compromised. The use of discounts, development of new products and daily special will keep our customers interested in our menu. This strategy aims to make Mama G Grocery to be a one-stop shop for food and food items. 5.3 Strategic Alliances Mama G Grocery will work to form tactical association with surrounding businesses. We will also form partnership with local farmers for easier reach of raw material and artists to print our gift vouchers to improve our presence in the neighbourhood. 5.4 Sales Forecast Our predictions for conventional sales are illustrated by the following assumptions: The average item sold in the market will cost $5.50 $25.00 per average sale multiplied by 40 people per day multiplied by number of days in January, February, November, and December in the slow season $35.00 per average sale multiplied by 75 people per day x number of days in each month from March-October in the busy season (Riley & Patrick, 2002). 6.0 Management of the business Since the business is a solely owned, its management is done by the owner with the help of twenty employees divided into specific jobs. There will be employees in the kitchen, those in selling and those involved in waitressing and delivery. 7.0 Financial Plan Our profits will be seasonal initially as our sales forecast made clear. Small loses are to be expected due to the fact that the business is unknown in the first months of the first year till the day the business will be fully established. This is when the number of patrons has increased. The increased sales in summer are because of the increase in the number of visitors visiting the city for business or pleasure. There will be a seasonal variation though I will be taken care of by the funding being requested from financial institutions. This will help the running of the business until such time when it becomes profitable. The owner will get no dividends until the business has fully paid the loan granted by the bank (Baugh et al, 2005). Break-even Analysis The estimated point includes rent, payroll, utilities, cost of raw materials, and other miscellaneous running costs. The business is run by the family there will be flexibility in the adjustment of expenses each month to suit the state of the business. Profit and Loss Profit and Loss Year 1 Year 2 Year 3 Sales $461,900 $484,735 $508,712 Direct Cost of Sales $277,140 $282,620 $288,210 Hidden Row $0 $0 $0 Total Cost of Sales $277,140 $282,620 $288,210 Gross Margin $184,760 $202,115 $220,501 Gross Margin % 40.00% 41.70% 43.35% Expenses Payroll $86,240 $88,840 $92,840 Marketing/Postage/Other $6,000 $6,000 $6,000 Depreciation $2,500 $2,500 $2,500 Legal $1,200 $1,200 $1,200 Books/Accounting $1,200 $2,400 $2,400 Licenses/Permits/Memberships $900 $900 $900 Delivery/Transportation $4,800 $4,800 $4,800 Insurance $3,600 $3,600 $3,600 Rent $30,000 $30,000 $30,000 Utilities $12,000 $12,000 $12,000 Equipment/Supplies $4,800 $4,800 $4,800 Building/Equipment Maintenance $1,200 $1,200 $1,200 Miscellaneous $1,200 $1,200 $1,200 Total Operating Expenses $155,640 $159,440 $163,440 Profit Before Interest and Taxes $29,120 $42,675 $57,061 EBITDA $31,620 $45,175 $59,561 Interest Expense $5,997 $5,107 $4,179 Taxes Incurred $6,937 $11,270 $15,865 Net Profit $16,186 $26,297 $37,018 Net Profit/Sales 3.50% 5.43% 7.28% (Reeds & Kitta, 2002) References Baugh, L. Sue, Hamper, & Robert J. (1995). Handbook For Writing Proposals. McGraw–Hill. Holtz & Herman. (1998). Proven Proposal Strategies To Win More Business. Dearborn Trade, a Kaplan Professional Company. Reeds &Kitta (2002). The Zen of Proposal Writing: An Experts Stress-Free Path to Winning Proposals. Three Rivers Press Riley & Patrick G. (2002), The One Page Proposal: How to Get Your Business Pitch onto One Persuasive Page, New York. Springer, D. (2005, October 28). Key to business success? La Crosse Tribune. Retrieved 4, 2014, from ProQuest database Read More