I Love Natural Ice Cream

Owners : Lazanyi Andra Micaela I Love Natural Ice Cream SRL Adress : Aleea Plopilor , bl 12, sc B , ap 11 City : Bistrita , BN , Zip Code : 420051 Telephone : 0040 766 471 456 Email : lazanyi.andra@gmail.com

TABLE OF CONTENTS

I. II.

III.

IV.

TABLE OF CONTENTS............................................................................... 2 Business summary .................................................................................. 1. Business overview............................................ 2.Product/Services features....................................... 3.Market analyse............................................... 4.Marketing strategy............................................ 5.Key objectives...................................................................................... Detailed plan ......................................................................................... 1.Market analyses ................................................ 2.Competition ......................................................................................... 3.Products/Services .............................................. 4.Marketing strategy ............................................................................... 5.Product/Services production ................................................................ 6.SWOT analyse .................................................... 7.Business structure .............................................. 8.Management and ownership ...................................... 9.Financial information ............................................ 10.Action plan ..................................................... Final point................................................................................................

Business overview

I love Natural Ice Cream SRL will be a start-up ice cream truck located at Bulevardul Mamaia , Constanta , Romania. We will sell all organic , locally produced, premium ice cream , yogurt (soft frozen yogurt , hard frozen yogurt) and not only cold desserts , but also hot desserts like the popular belgian waffles and a variety of natural juices . I love Natural Ice Cream SRL will be the only operated independent ice cream truck of ice cream in Mamaia , Constanta area . Using organic ingredients to make I Love Natural Ice Cream ice cream will provide a competitive advantage as no other ice cream shop in Constanta currently sells organic ice cream. Organic ice cream is a super-premium ice cream that caters to the growing trend for healthy and natural foods without additives or other artificial ingredients. In many cases, an entrepreneur first creates homemade organic ice cream and then opens up a shop to sell the product. Such shops are not necessarily small or restricted to a local region, either. One of the best known organic ice cream shops is Ben & Jerrys, which began selling homemade organic ice cream in 1978. I love Natural Ice Cream SRL target market is the large base of middle income families that can afford to indulge themselves by making impulse buys of premium ice cream and those who want a refreshing natural fruit juice options. The location of the shop is well located , a crowd area , especially during the summer season , when a number of 2 million turists visit Constanta every year.

PRODUCT FEATURES

I Love Natural Ice Cream SRL will sell : Two lines of Premium ice cream : low fat and high fat Two lines of yogurt : low fat and regular Traditional belgian waffles Natural fruit juices Cold beverages from Coca-Cola Company (Coca-Cola, Coca-Cola Zero , Fanta Lemon, Fanta Orange , Sprite , Nestea , Kinley)

MARKET ANALYSE

The ice cream market in Romania is slowly ascending even on time of crisys. Ice cream is a popular indulgence and people will always spend money for such a treat. According to the studies of www.economistii.com the market of ice cream has a value of 150 milion euros in 2012, especially because of the high temperatures registered in the last months. The majority of the costumeres are women , and the most costumers (67%)prefere the take- away ice cream , on second place 24% they buy it from the ice cream shops and a smaller procentage 10% buy it on a terrace or restaurant.

MARKETING STRATEGY

I love Natural Ice Cream SRL intends to mantain an extensive marketing campaign that will ensure maximum visibility for the business in its targeted market. I love Natural Ice Cream SRL will be promoted with a variety of marketing methods : -A grand opening will be held with free samples of the products and T-shirts and other clothing bearing the store s logo and the phrase I Love Natural Ice Cream , worn by store employees. - Daily , games will be held in front of the parlor with different prizes : from coupons with a certain amont , or coupon which validate a free ice cream , waffles etc. Which will atract a number of costumers in front of the parlor. - Sponsoring different TV shows , games , or Radio show , offering free coupons as prizes

KEY OBJECTIVES

- implement a local campaign with the companys targeted market via the use of flyers , local newspaper advertisements, and word of mouth . - Build a large word-of-mouth referral network through existing costumer base. - Establish connections with the local suppliers and vendors. - Establish connection with certain loial costumers .

DETAILED PLAN MARKET ANALYSES

According the studies of Reveal Marketing Research , made in 2012 , 70 % romanians bought at least once per month ice cream , majority women . Also, almoust 57% consumes ice cream once a week or even more often , 29% once every 2-3 weeks, 14% said that they consumed just once in the last month . The most people who consumes ice cream bought from parlors are young people between 18-24 years old , families with children , low to medium incomes. Marketing healthy and premium will provide two purchase options for the costumers. According to a business study , made in the last year , sales of non fat ice creams are expect to triple, lowfat ice cream sales to 40% and full-fat sales only 10 % . For the winter time , but also for the summer time , the belgian waffles market in Romania is growing , given by the facts that the traditional belgian waffles are difficult to find . They can be also served with ice cream in the summer season or hot in the winter season. In summary , the general market analysis shows that both healthy and premium ice cream/yogurts sales are on the increase and will continue to increase . Further, the target market for these products is from lower , to middle and upper income families. The market analysis also reveals that is highly desirable to serve hot belgian waffles to balance the seasonal decline in ice cream and yogurt.

COMPETITION

In order to identify the competitors ive made a personal survey to obtain the information presented in the following competitive analysis . The big fight on the ice cream market is between several companies, some new ones , some older ones with more experience on romanian ice cream market. The top of the biggest produceri after the volum will be : Nestle Top Gel Alpin 57 Lux Betty Ice Unilever Nestle , a swiss company , became , after buying the company Delta Ice Cream , the biggest producer of ice cream of romanian market. Unilever is a company Anglo-Dutch which produces several goods , where we find also : drinks , food , soaps , detergents etc . In 2009 , Unilever entered i the romanian market , buying the local ice cream producer , Napoca. Kubo is a smaller company and the fabric has 188 employees. Top Gel is a company established in 1994 and has 16 deposites, 200 ice cream trucks . Betty Ice ,also established in 1994 , the company has 250 employees and can produce 4000 tones of ice cream every year. In Constanta , there are different places where we can find ice cream parlorsor small restaurants where clients can serve the ice cream like a dessert , such like : La Balansoar, La Gallion , Terasa cu Flori , La Pizza . All the restaurants listed are located on Bulevardul Mamaia , and in their menu you can find as dessert one type of ice cream from Nestle with different flavours like vanilla , vanilla with chocolate and vanilla with strawberry . The prices in general high , considering the quality of the ice cream . I Love Natural Ice Cream has an advantage because we offer a superior ice cream made naturally , always fresh , and beside this the typical belgium waffles still a new product on romanian market and none of the little restaurants listed below offer frozen yogurt .

PRODUCTS

Ice Cream and Related Products A higher percentage of milk fats gives ice cream a creamier and richer taste. Today, standard and premium ice creams make up the largest share of the ice cream segment, although these have steadily been losing ground to super-premium ice creams. I Love Natural Ice Cream SRL will sell a variety of ice cream and yogurt flavours : vanilla , chocolate, caramel , strawberry , grapes , cherry , coconut , raspberry , blueberry , banana , lemon , orange , mandarine , apple-cinnamon , forest fruits, coffee ,rum , straciatella, pistachio, tutti frutti, white chocolate . I Love Natural Ice Cream SRL will self produce all the ice cream with milk and fresh or frozen fruits . The fresh milk and yogurt will be provided initially from LILIPUT CO SRL a company specialised on milkbased products and not only. The fruits will be provided from Land Eco Green SRL a company with a variety of vegetables and fruits . Belgian Waffles For the traditional belgian waffles we will need flour,active dry yeast,butter, white sugar, salt , vanilla extract, which will be provided also by the company LILIPUT CO SRL . Cold beverages The cold beverages will be supplied by the Coca-Cola Company , knows as one the most popular companies of beverage in the world, with a high quality in their product and reasonable prices. The ice cream, the yogurts and the traditional begian waffles will be prepared during the day , in front of the clients, served always fresh .

PRICES :

The majority of the business sales will come from ice cream and yogurt.Representative prices are as follows : 2,5 lei for a single scoop of ice cream , 3 ,5lei for a double scoop of ice cream , 5 lei for a triple scoop of ice cream + whipped cream on top (both single or double, or triple scoops include a cone or cup).

I noted these initial prices are fairly conservative , but very competitive to other ice cream stores and parlors . Volume costs 0.7 lei for a scoop of ice cream , 0,1 lei for a plastic cup , 0.1 lei for a plastic spoon , 0,17 lei for a sugar cone . A comprehensive survey was made of local restaurants offering ice cream and drinks on their menu . The general price range for Ice cream was 7 lei and for soft drinks 8 lei .Volume costs for soft drinks will be 2 lei , and I Love Natural Ice cream will sell them with 4 lei per drink . The frozen yogurt will be sold with 2 scoops for 5 lei , and will add on top some topping or litlle pieces of fruits . As well the belgian waffles will be sold with 4 lei a normal one, and with 5 lei with whipped cream on top or a scoop of ice cream . The volume costs for the frozen yogurt is 1,1 lei / scoop with fruits or topping and the belgian waffles is 2 lei / waffle. The natural juices will be sold with 6 lei /cup of 250 ml and 10 lei / cup of 250 ml . The volume costs will be 2,5 lei for the fruits to obtain a 250 ml cup of juice and 0.2 for the plastic cup. As I love Natural Ice Cream parlor will be placed on Bulevardul Mamaia , we consider that area is a crowded area especially in the summer season which starts from beginning of May and ends in October , with plenty of turists spending their hollidays .

MARKETING STRATEGY

As I love Natural Ice Cream will be a start up business , we will have to promote as much as possible .After a small survey made between the ice cream consumers , 65% of the respondents reported that the ice cream was in impulse purchase and that the closest ice cream shop was usually the place they went. Yet , 80% of the respondents did have a favourite ice cream shop / brand that they like to frequent . The following factors were reported as reaspons why they liked the shop : Quality of ice cream Variety of flavours Friendly atmosphere of shop .

Most of the competition has noted the consumers buying habits and have opened shops in locations where there is heavy traffic like Bulevardul Mamaia in Constanta . Consequently the competition is heavy in these areas with the national chains dominating . Since ice cream purchases are perceived as a impulse buy , advertising is limited . There are rarely any sustained radio or television advertising. One of the best advertise would be print media , especially newspaper and flyers .

One of our strategies are to mantain costumers happy from the moment they come first time to get an ice cream , and one of most importan to keep a close relationship with our loial constumers, offering discounts and small promotional things like t-shirts , caps etc . Also, a large , colourful neon signs will be located above the parlor making it visible from a far range on the street . The location for the parlor has the greatest amount of foot traffic in Bulevardul Mamaia , Constanta . As a market strategy , our employees will work with a sales comision , meaning that they will take a 2% of every day sales if they reach a certain amount of sales. They will be trained in order to organize small ice cream games in front of the parlor in order to raise the popularity and for a boost for sales we will have every day a happy hour where clients can get a 25% discount from each product bought .

PRODUCT/SERVICES PRODUCTION

First we will buy the ice cream truck espacially arrange in order to prepare all the products safely and to put inside a bid fridge and a freezer to keep cold all the products . The truck can probably cost around 4000 euros a second hand with the freezer and the fridge included inside already installed . Then , as we want any product to be like home made we wont spend too much money in buying expensive ice cream mashines , if no we will buy a smaller one , which can be always very helpfull , like this our clients will always serve a fresh ice cream or yogurt made exactly that day . The machines will cost around 500 euros. For the waffles we will need a special machine to bake the waffles , which costs around 50 euros and we will buy as well a kitchen robot to prepare the natural juices and the waffles which will cost around 200 euros . Our personell will make a special sanitar training which our company will pay , the costs per person will be 40 euros . We will hire 4 employees , that means 160 euros in total .

SWOT ANALYSE

Strengths High quality products Wide variety of unique home made ice cream flavours Loyal, well treated workforce Marketing strategies established by the company are innovative Costumers Friendly environment Educated and frindly staff Large number of offerings Pre purchase virtual display

Weaknesses Difficulties entering in a new market Untested products in the new market Premium pricing strategy Sales growth decreasing Low percentage of market sold Growing competition from international and other brands means limited market share

Opportunities Large young population and very hot summers High economic growth Growing ice cream market Competition weaknesses

Threats low income population and poor infrastructure economical and regulatory changes strong local competition short summers and bad weather

BUSINESS STRUCTURE

I Love Natural Ice cream will hire 4 employees working in shifts in the morning and in the afternoon ;one shift starts at 09:00 in the morning untill 17:00 , and the other shift starts at 16:00 untill 23:00 in the evening . The neto salary will be 900 lei + comision from sales 2% if they reach a certain amont of sales in the month . The monthly costs with the salaries will be 3600 lei + comission . The other expenses monthly will be : electricity : 400 lei , water : 30 lei , advertising 400 lei , the raw materials to obtain de ice cream , yogurt , waffles and the natural fruit juices will be monthly around (milk 1500 , fruits 1500 , flour 100 lei , eggs 600 lei , sugar 300 lei , whipped cream 1000 lei , small attributes like plastic cups , platic spoons 400 lei ) 5500 lei . In total , all the expenses will be around 10000 lei monthly .

MANAGEMENT AND OWNERSHIP

I Love Natural Ice Cream will be owned by Lazanyi Andra Micaela , also being the administrator on the company . All employees are subordinated by Lazanyi Andra Micaela .

FINANCIAL INFORMATION

Summary of Start-up costs Equipment costs Opening Inventory Advertising Personnel training Licenses , fees, other costs Rent of the space 7000 euros ~ 30800 lei 15500 lei 1000 lei 400 lei 14000 lei 2500 lei 64200 lei

Total

Project Income & Expense Year 1 INCOME

Sales Ice Cream Yogurt Waffles Nat Juices Beverages Total Sales : Cost of goods Sold Gross Margin 12420 25155 32895 50840 50840 32895 20925 16920 53% 53% 53% 53% 53% 53% 53% 53% - 16245 19242 278377 53% 53% 53% 7875 12600 17325 31500 31500 17325 12600 7875 2250 6750 11250 18000 18000 11250 6750 2250 6075 10125 16200 20250 20250 16200 10125 16200 6300 15750 15750 25200 25200 15750 9450 6300 3600 7200 9000 12600 12600 9000 5400 3600 - April May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar

10

11

12
TOTAL

4725 7875 151200 2250 4500 81000 14175 16200 145800 9450 9450 138600 3600 3600 70200 34200 41625 586800

26100 52425 69525 107550 107550 69525 44325 36225

LESS EXPENSES
Salaries Commision From sales Rent Telephone Electricity Advertising 2500 2500 2500 2500 2500 2500 2500 2500 200 600 200 800 200 800 200 800 200 700 200 600 200 600 200 600 200 - 2500 2500 25000 200 200 200 2400 600 600 6200 4000 4000 11200 11200 11200 7600 7600 7600 2930 4536 4536 1453 936 4000 4000 4000 7600 84000 895 15286

1000 1000 100

1000 1000 1000 1000 1000 1000 100 100 100 100 100 100

1000 1000 10000 100 100 1200

Office Supplies 100 TOTAL EXPENSES NET PROFIT PROVISION FOR TAX 845

100 100

8400 8600 18730 20336 20236 13453 12936 12000 4300 4300 8400 12895 144586 5280 18670 17900 36374 36474 23177 10464 7305 - 4300 -4300 7755 9488 164287

2987

2864 5820

5820

3708

1674

1169

1241 1512 27640

Profit after tax 4435 15683 15036 30554 30554 19469 8790 6136 -4300 - 4300 6514 7976 136547

Cash Flow Projection First Year

Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar
1st Opening Bank Balance Cash Receipts Investments Sales Income Cash Inflow Total Cash Available 92100 80325 149850 257400 364950 434475 478800 515025 - 549225 590850 66000 - - 34200 41625 66000 27900 80325 149850 257400 364950 434475 478800 - - 515025 549225 2nd 3rd 4th 5th 6th 7th 8th 9th 10th 11th 12th

26100 52425 69525 107550 107550 69525 44325 36225 66000

Cash Payments Adm. Outgoings 8400 8600 18730 20336 20236 13453 12936 12000 4300 4300 8400 12895 Cost of goods Capital costs Tax 12420 25155 32895 50840 50840 32895 20925 16920 64200 845 2987 2864 5820 5820 3708 1674 1169 0 0 1241 1512 - 16245 19242

Total payments 85865 Net movement 5280 18670 17900 36374 36474 23177 10464 7305 - 4300 -4300 7755 9488 Closing bank Balance 6235 15583 27689 38568 49004 61567 69688 78867 74354 70245 77540 86308

ACTION PLAN

First and before everything , I will establish the company named I Love Natural Ice Cream ,SRL . After , I will go to obtain my licence and to rent the space where i want to put my truck during the year . Once I obtained all the licenses I need , I will go to make a contract for my energy , water , garbage etc , all the utilities. Because this start up business doesnt require too expensive investment , I will invest from my own savings 15000 euros in order to start up the business and to buy everything I need to open. Once I acomplish all this , I can start searching my truck , which I wil buy it second handed . If I have already my truck , first i want to decorate it in the way i want , buy a big advertising panel to put on top with : I LOVE NATURAL ICE CREAM . Also , for the advertising of the company , I will buy a certain number of T-shirts and caps , and i will also make some publicity in the local news paper , I will order flyers to spread all aroud the city and I will buy some coupons for the winning prizes . After all this I will buy the other machines I need in like : the kitchen robot , the waffles machine , the mixer , the ice cream mashine etc . Once I have all the utilities in my truck and all my mashines I can already buy my products / goods and start to prepare my natural products . Because it is a start up business , in the first 2 months I will be the only employee of the company , in order to get to know better my products , my clients and , of course to save some money in the first months to start .

FINAL POINT

I Love Natural Ice Cream will be successful . This business plan has documented that the establishment of I Love Natural Ice cream is feasible . All of the critical factors such as industry needs, trends , marketing analysis , competitive analysis and the financial analysis support this conclusion . Financial objectives for the future will be : - Owner draw of 15000 euros by the end of Year 1 . - Break even cas flow by the end of Year 1. - Owner draw of 20000 euros by the end of Year 2 . - Cash balance of 10000 euros by the end of Year 2 . - Opening a new truck of ice cream by the end of Year 2 in another city .