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Smoothie Bar-celonaSmoothie & Juice Bar Business Plan
Copyright © 2012 Smoothie Bar-celona. All Rights Reserved.
Business Proposal
• Smoothie-bar, named Smoothie Bar-celona, selling a variety of mixed and instantly prepared, 100% natural fruit juices and Smoothies to take away.
• The target group is composed of health conscious consumers looking for convenient fast-food alternatives
• The healthy benefits and tastes of our juices are the core of our organization and will be transmitted through our efficient service.
Copyright © 2012 Smoothie Bar-celona. All Rights Reserved.
The Business
Vision• “To be perceived as the provider of the most delicious,
convenient and healthy grab and go alternative in Barcelona”.
Mission• “To provide a healthy, tasty and refreshing experience with
our 100% natural fruit juices and smoothies to take away. To serve and satisfy the nutrition needs of health conscious consumers through the high quality of our products. We contribute to make Barcelona a healthier city.”
Copyright © 2012 Smoothie Bar-celona. All Rights Reserved.
Industry Analysis
Five forces: • Smoothie industry is in a growing stage, with few players;
differentiation is key.
Moderate Competitor
Rivalry
Potential Entrants
Buyers
Substitutes
Suppliers
High
Moderate
High
Low
Moderate Competitor
Rivalry
Potential Entrants
Buyers
Substitutes
Suppliers
High
Moderate
High
Low
Copyright © 2012 Smoothie Bar-celona. All Rights Reserved.
Secondary Research
Consumer Trends:
• Constant growth rates of the juice market in Spain! • Soft drink market in Spain will rise up to 9 billion euros• “Resilience of health products during the recession to
customers´ desire to maintain their health / wellness habits while avoiding risky cheaper options”
• “Growing demand for “easy health” (convenience) in the shape of functional foods”
• “Widespread consumer interest in products positioned as health-boosting” → preventative care
• “Health benefits are driving sales of functional foods and beverages”→ value-added-products
Copyright © 2012 Smoothie Bar-celona. All Rights Reserved.
Primary ResearchSurvey Results (90 respondents)• Positive attitude towards Smoothies / freshly made natural
juices• High demand – not saturated / growing market• Accepted by the target group / health-conscious people
perceived as healthy fast-food alternative (tourists and short-/long-term residents)
Main reasons for not consuming:• Doubts on quality / No confidence in cleanliness• Too expensive• Not available (in the variety that I would like them)
Copyright © 2012 Smoothie Bar-celona. All Rights Reserved.
Target & Strategy
Low Cost Strategy Differentiation
Mass
“Traditional consumers of
drinks”
Coffee Beer
Regular sodasWater
Packed fruit juicesSoft drinks
Yogurt
Niche
“People in the healthy living
trend.”
Energetic drinksLight sodas
Vitamins
100% Natural fruit juices to grab and go
• “Smoothie Barcelona’s customers are likely to be followers of a healthy type of lifestyle. Additionally and as a result of the scarce restrictions that the product has in terms of age, gender and benefits, a secondary will be the tourists that come to city and young professionals that are adopting new trends”.
Copyright © 2012 Smoothie Bar-celona. All Rights Reserved.
Positioning+ Aligned with healthy trend
- Aligned with healthy trend
Smoothie
Bar-celona
Expensive
Smoothie
Bar-celona
Cheap
Copyright © 2012 Smoothie Bar-celona. All Rights Reserved.
Strategy• Focused Differentiation Strategy
• Strategically increase the number of locations within a short time-frame, expanding the reach, making the products more available to the consumers.
• Take advantage of economies of scale
• Strong brand management
• In comparison to the first store, the following kiosks are small in size, investment and running costs, and are flexible and easy to set-up.
Copyright © 2012 Smoothie Bar-celona. All Rights Reserved.
Competitive Advantage
• Excellent value-for-money we offer to our customers • Superior product quality and positioning combined with a
price lower than that of the competition • Cost control and Economies of Scale • Diversified menu• Unique high traffic location • Clear shaped image and brand experience aligned to healthy
lifestyle concept
Copyright © 2012 Smoothie Bar-celona. All Rights Reserved.
Promotion
• Brand proposition:
“Smoothie Barcelona is the most convenient, fresh and tasty option to nurture and energize your body and immune system at a reasonable price”.
Promotion:• Sampling • Flyers• Bonus / Loyalty Cards• Homepage• SEM / SEO • Newsletter• Sweepstakes• Alliances
Copyright © 2012 Smoothie Bar-celona. All Rights Reserved.
Homepage
www.
.com
Copyright © 2012 Smoothie Bar-celona. All Rights Reserved.
Operations
Value chain:
Reception, storage and quality control of fruits
and other raw materials
Inbound logistics
Preparation of SmoothiesPackaging
Maintenance of facilities
Sales
Procurement
Human Resources
Reception, storage and quality control of fruits
and other raw materials
Preparation of Smoothies.
Packaging. Maintenance of
facilities.
Marketing Customer Service
Procurement
Accounting & Finance
Human Resources
Operations
Copyright © 2012 Smoothie Bar-celona. All Rights Reserved.
Initial Investments• The main investment required to start the business is composed
by the following aspects:
• 2nd Store: 31.787 €
• 3rd Store: 34.966 €
Item Cost €
Licenses & Legal 8,000
Store remodeling and installation costs 12,000
Operation and management equipment 6,780
Consulting 3,000
Marketing 9,000
Other 3,000 Total 41,780
Copyright © 2012 Smoothie Bar-celona. All Rights Reserved.
Operations
• Processes / Diagram path
Production process pathPath for storage fof cleaning and safety materials pathPath for storage of inputs and raw materials
Storage of cleaning and safety materials
Storage of raw materials
Storage of complementary
products
STORAGE AREA
Customer area / Bar customer
Frozen Raw Materials
Production Area
Cleaning area
Finish Products
area
5m 3m
5m
Storage Operation
Transport Inspection
Copyright © 2012 Smoothie Bar-celona. All Rights Reserved.
Operations
• Project Management35 56 56 70 70 77 77 98 98 112
35 56 56 70 70 77 77 98 98 112
35 56
77 9835 49 49 91
14 28
56 70 70 11221 35
35 49 49 56 56 63
84 98 98 105 105 112 112 1190 7 7 14 14 28 28 35
35 56 56 63
112 1190 7 7 14 14 28 28 35
84 105 105 112
14 42
84 112
5
9
16
11
13 14 156
7
4
8
1 2 312
20
19
10
17 18
Item Activity Time (days)
1 Invest the shareholderes equity to create the business 72 Register the Company "Smoothie Bar-celona" 73 Research for a bank loan 144 Get a loan (sign contract with the bank) 75 Evaluate and select location for store 216 Rent of the selected location 14
13 Obtain construction license 714 Execution of construction and remodeling stage 2115 Installation of equipment and furniture 1420 Opening Day 7
Copyright © 2012 Smoothie Bar-celona. All Rights Reserved.
Organizational Structure• Months 1-6: Shareholders will also
work in the operation activities of the business
• After 6th month: Incorporation of a General Manager plus two assistants
• After two years: Incorporation of a Assistant Manager plus one Assistant for the second kiosk.
General Manager
Store 2Coordinator
Store 1Assistant 1
Shareholders
Store 1Assistant 2Store 2
Assistant 1
General Manager
Share holders
Assistant 2Assistant 1
Copyright © 2012 Smoothie Bar-celona. All Rights Reserved.
Financial Plan
• Capital Structure First store:Initial investment 41,780€ Working Capital 28,220€
Monthly Loan Payments 1,216.88€
Loan for 2nd store 32,000€Annuity for 3rd store
Smoothie Bar-celonaCapital Structure
Loan57%
40,000 €
Equity43%
30,000 €
Amount € %María del Carmen Matías 10,000 14%Christian Höller 10,000 14%Luis Fernando Recio 10,000 14%Bank Loan 40,000 57%
Total 70,000 100%
Capital Structure
Copyright © 2012 Smoothie Bar-celona. All Rights Reserved.
Break-even Analysis
• Contribution margin: 2,75 €• To reach a positive cash flow in a yearly basis, Smoothie Bar-
celona has to sell at least 37.634 units or 131.718€
Cash Break - Even
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
180,000
10,000 20,000 30,000 40,000 50,000 60,000Units Sold
Euro
s
Gross Profit Fixed Costs
Copyright © 2012 Smoothie Bar-celona. All Rights Reserved.
Financial Plan
Sales Forecast
Sales Forecast Smoothie Bar-celona
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
ene-1
1
mar-
11
may-1
1
jul-11
sep-1
1
nov-1
1
ene-1
2
mar-
12
may-1
2
jul-12
sep-1
2
nov-1
2
ene-1
3
mar-
13
may-1
3
jul-13
sep-1
3
nov-1
3
ene-1
4
mar-
14
may-1
4
jul-14
sep-1
4
nov-1
4
ene-1
5
mar-
15
may-1
5
jul-15
sep-1
5
nov-1
5
1 store + 1 kiosk1 store
1 store + 2 kiosk
Copyright © 2012 Smoothie Bar-celona. All Rights Reserved.
Profit and Loss Accounts
Smoothie Bar-celonaNet Profit & Dividends
0 1,791 9,087 40,286
88,471
(50,000)
0
50,000
100,000
150,000
200,000
2011 2012 2013 2014 2015
Net Profit
Dividends
2011 2012 2013 2014 2015Net Profit (5,859) 3,582 18,173 80,572 176,943% of Sales -4.5% 2.5% 6.8% 20.4% 26.3%
Copyright © 2012 Smoothie Bar-celona. All Rights Reserved.
Risk AnalysisProject Valuation
• The valuation indicates that the project is economically feasible
• Develop a Contingency plan
Realistic Optimistic PessimisticNet Present Value € 72,375 241,355 -74,244 Internal Rate of Return 25.50% 58.60% -11.78%Profitability Index 173.23% 577.68% -177.70%Investment Recovery Time 4.1 Years 2.8 Years > 5 Years
Scenarios
Copyright © 2012 Smoothie Bar-celona. All Rights Reserved.
Ratio Analysis
• Financial ability to pay its short term debts.• Big part of the liabilities that are accounted at the end of each
year is assign to the concept of dividends payables.• The assets are more productive every year.• The business is generating enough profits to finance its own
expansion
2011 2012 2013 2014 2015Short - term liquidityWorking Capital 14,173 7,216 10,771- 3,913 93,093
Long - term credit riskDebt Ratio 0.53 0.64 0.46 0.40 0.37
ProfitabilityReturn on assets -0.12 0.09 0.43 0.91 0.97Return on equity -0.20 0.12 0.61 2.69 5.90
Financial Ratio Analysis
Copyright © 2012 Smoothie Bar-celona. All Rights Reserved.
Questions & Comments
Smoothie
Bar-celona©
Smoothie Bar-celona©