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01.12.2014.
rewrite: 10.01.2015.
Business Plan
The Small Hungary Project
Enschede
Prepared by:
Laura Virg
student number: 410444
Balzs Lakatos
student number: 410384
01.12.2014.
rewrite: 10.01.2015.
Table of Content
1. Executive Summary........................................................................................... 3
Company Summary............................................................................................. 3
2. Opportunity........................................................................................................ 3
Environmental analysis of the opportunity..........................................................3
Key differentiators............................................................................................... 5
The main competitors of the company:...............................................................5
SWOT analysis in relation to competitors............................................................5
3. Strategy............................................................................................................. 6
Vision.................................................................................................................. 6
Mission................................................................................................................ 6
Objectives........................................................................................................... 6
4. Marketing plan.................................................................................................... 9
Marketing Mix:................................................................................................... 11
Product.............................................................................................................. 11
Price.................................................................................................................. 12
Place................................................................................................................. 12
Promotion.......................................................................................................... 12
5. Operations plan................................................................................................ 13
Personnel Plan................................................................................................... 17
6. People plan....................................................................................................... 17
Management summary..................................................................................... 18
Company Ownership......................................................................................... 18
Management team............................................................................................ 18
7. Financial plan................................................................................................... 19
8. Future plan....................................................................................................... 21
Conclusion......................................................................................................... 21
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1. Executive Summary
The Small Hungary B.V. is a retail store, which is selling, special, craft beers from
Hungary. The store is located in Enschede. The company realized an opportunity
that one of the favorite drink of Dutch peoples is beer. The company also aware
of that in the market there is mainly the usual types of beers can be founded, so
the Small Hungary B.V.s goal is to change it, and bring some freshness into the
market. The product range will be wide. The company would like to offer at least
300 different types of beers. The Small Hungary B.V. will has an extensive
supplier network in Hungary, which consist of up to 44 breweries. It is a privately
owned company. The founding members come from Hungary.
Company Summary
This company will operate as a Dutch Private Limited Company (B.V.). It offers
diverse range of products for the consumers. The location is in the heart of the
city, walking distance from the central places and from the university.
2. Opportunity
Firstly the owners of the company started to think about which business idea
would be viable in Enschede, in this area of Netherlands. In this province, there is
three big cities, Hengelo, Almelo and Enschede. The reason why the company
chose Enschede for the location of the business is because the owners of the
company have been living here, so they already have some experiences.
In this area there is a big tradition of brewing, so the owners of the company
thought that it could be a good base of a business. The Small Hungary B.V. would
like to connect the Hungarian and the Dutch beer making culture.
The Netherlands like Hungary also known as beer-loving nation. Both of them
have a colorful culture of beer making, but there is a difference as well. The
economical situation of Netherlands is better, predictable and more secure.
These facts are clearly detected in case of the Dutch brewing industry too. There
are several big beer making company in Netherlands. These multinational
companies like Heineken, Bavaria, Groslche produce and sell millions barrels of
beer. They owned hundreds of brands which are sold by retailers like Albert
Heijn, Jumbo, Aldi caf bars, nightclubs and other shops. Therefore the market
is competitive but challenging.
3
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Advantages
In
Netherland
the
Disadvantages
In Hungary, the currency
The
risk,
economy
Netherland
is
stable,
which
means
secure
basic
business
in
more
of
than
because
of
exchange
the
rate
fluctuations.
Business
cultural
in
differences.
Hungary.
The
taxation
Netherland
Environmental
Political
in
is
better
than in Hungary.
In
Hungary
the
delivery
complicated
expensive.
The harmonization
background
laws
in
Netherland.
Better
Social and cultural
The
and
is
and
of
standards
could be difficult.
support
entrepreneurship.
Better acceptability
to
of
Different
cultural
entrepreneurial
aspects.
(fashion,
activities.
lifestyle, media)
also.
(younger
society)
The
production
is
cheaper in Hungary.
The
Dutch
and
meets.
In Netherland there is
opportunity
innovation.
future
innovation
intention in Netherland
more
The
for
is more expensive.
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The company knows that in this business idea there are some risks, because no
one tried to offer this kind of services and products here yet. The basis of the
opportunity is the gap in the product range, where there is no Hungarian beers.
The company would like to develop and test this idea by step by step.
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Key differentiators
Good store location: the area of the shop is busy, popular and easy
approachable.
Reliable supplier network: good relation with the Hungarian breweries.
Uniqueness: only one in the market who sells Hungarian craft beers.
good quality
affordable price
Weakness:
Opportunity:
Threats
Different regulation
7
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Different culture
Competitive market
Economical changes
Political impacts
3. Strategy
Vision
The company wants to show people the beauty of the Hungarian brewing and
through this, introduce them a small slice from the culture of Hungary.
Mission
The company mission is to import and sell Hungarian homemade beers in The
Netherlands.
Objectives
The Small Hungary short-term goal is to enter into the Dutch market successfully,
gain reputation and operate financially balanced.
The long term objective of the company is to become the number one retailer of
the Hungarian craft beers in The Netherlands. The company wants to open new
shops, broaden the product range and the supplier network. The Small Hungary
wants to operate profitable in the future.
The company wants to focus those people who like to try new things, new tastes
and new beers, who appreciate quality and uniqueness with affordable prices.
Above a certain age people have every day habits, favorite brands, foods, drinks,
tastes which are very difficult to change. That is why market segment of the
company based on age are those people who between 18 to 60 years old. The
beer basically popular among men, but because of the spreading of flavored
beers, it is getting more and more popular among women too and the Small
Hungary want to exploit it. Enschede is a teeming city with 2 big universities and
with lots of college students, which mean another significant market segment.
Identity:
The name of the
company
Small
Hungary
B.V.,
which is a beer
retailer
in
Netherlands.
Resources:
- Enough financial
capital
- More experience
Technical
equipments
-Information
about the market
- More knowledge
Available
resources:
Financial
capital given
by
the
founders
Partial
knowledge
and
experience
Opportuni
ty
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Opportunity:
The
Hungarian
beers
has
no
presence
in
the
Dutch market
planning
Tasks:
-providing
financial
background
-supply
the
technical
equipments
-market analysis
-consulting with
professionals to
advices
get
more
knowledge
How to achieve:
-providing
financial
background:
everyone
-supply
the
technical
equipments:
Balzs Lakatos
-market analysis:
Laura Virg
-consulting
with
professionals
to
advices: everyone
get
more
knowledge:
everyone
9
Goals:
The
companys
goals
are
to
achieve
market
potential,
reach
break-even point
in 2 years, gain
reputation,
and
build a basis for
the
future
innovation
and
development, and
good
customer
relationship.
Success:
- to achieve all our
goals.
- our business will
be monitorised by
different type of
programs like CRM
system,
ERP
system, and SAP
system.
Team
members:
- Balzs Lakatos,
studying
marketing
Laura
Virg
studying business
- Mt Krolyai,
studying
agriculture
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4. Marketing plan
The companys starting point was the fact that there are lots of excellent
qualities, sophisticated and new craft beers in Hungary. These beers are unknown
for the rest of the World. The Small Hungary wants to change this. The company
wants to introduce these beers for everyone, for those who dont know about the
Hungarian beers. The company wants to start its conquest from The Netherlands,
from the city of Enschede.
The company starting point was that they saw a lot of unused empty stores in the
city. We started to think about the reason why the situation is like that. We have 2
explanations for that:
The first one is that the market is too saturated; there are enough retail stores,
service unit, shops etc. in the town. The people do not demand new services.
The second option that people do not have the willingness to create new things.
This is probably due to economic or psychological reasons.
We are confident about that the people always want something new, something
different. This is an eternal truth. So the basis of our business to give something
for the future customers which is stands out from the rest. Which they can
appreciate it, they can have an everyday conversation about it and they can
enjoy it together.
The Small Hungary will start its journey step-by-step. The business will preserve
the uniqueness and will stick to its Hungarian roots. The company will keep the
charm of its novelty. It is a harder way to step into a new market but the
company wants to commit to its core values.
The companys marketing strategy will emphasize and it will be in accordance
with these important values.
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Number
of
1980
553600
1985
563848
1990
573635
inhabitants
%Inhabitants living
1995
586720
2000
596394
48%
2004
615303
49%
in
cities
Between 15 and 65
years
% men
% women
Average income per
50,1%
49,9%
50,0%
50,0%
50,0%
50,0%
household
% participation in
68,7%
68,8%
66,7%
50,1%
49,9%
50,1%
49,9%
50,2%
49,8%
23,300
54.4%
25,100
61.0%
64.6%
3,8%
1842
6,6%
2806
3848
2650
the
labour process
Unemployment
Number
of
1992
7.6%
2042
emigrants
Number
2908
2942
of
immigrants
% Living below
9,6%
the
poverty line
Data have been used of the year mentioned or of a year just proceeding or
following that particular year.
Source: I&O Research, Enschede1
Based on this table the company found some informations about the potential
markets, but as the company identified in the opportunity planning, there are
some market analysis tasks, which must be performed. In terms of target market
and customer segment for example:
-
Target Market:
o How many customers are in the target market?
o What is the anticipated lifetime of the market in years?
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What are the key factors which drive demand and price in the
o
o
market?
Who are the dominant sellers in the market?
What are their market shares by per cent, their competitive
consumption?
What are the customer segments?
Which of these are most attractive in terms of under-met needs or
aspirations, growth in size/spend and affinity with product?
Marketing Mix:
Product
The companys product is homemade craft beer.
Globalization is changing to the localization, everything is made in little pieces,
the hand-made, quality unique products are getting more and more popular
nowadays than the mass production. The localization is the contrary of the
globalization, and this process is shown in the beer industry also. The people
evaluate the quality, and the uniqueness, and they like if there is some story
behind the product what they bought. This is why the company sees potential in
these products, also in Hungary the craft beers are more and more popular, on
the product life cycle they are on the growth part.
The company offers would be different kind of beers:
Types
taste
type
alcohol content
price.
of
beers
what
the
company
Weisse,
wants
to
Maibock, Blonde
offer:
Ale,
Pale
Weissbier,
American Pale Ale, India Pale Ale, Weissbier, Saison, English Bitter, ESB, Biere de
Garde, Double
IPA,
Dark
lager, Vienna
Irish
Dry
Ale,
Brown
Stout,
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Because the product range is so varied, it meet the customers needs, everyone
can find what they are looking for.
The company want to put a big emphasis on the product appearance, the beers
will be in different style of bottles, on every bottle there will be the logo and the
name of the manufacturer, and also the companys name and logo. The company
wants to create an appearance for the product, which give the feeling to the
customer that he is a better person if he drink this beer, he bought something
rare, special good quality and unique product.
Price
Because the production will be in Hungary, the product would be cheaper, what
shown in the price of the product also, but the management dont want the
customers thought that its a cheap bad quality product, this is why the company
offers different kind of price categories, including cheaper (but also good quality)
and more expensive (with something special thing) beers.
At the beginning the management wants to use introductory price, to get more
and more returning customers. With the loss leader product the company can
achieve intensive advertisement, even if they are too cheap to cause profit.
With the discounts based on quantity - the management wants to win loyalty
customers. The company also want to offer customer cards, if a customer
bought more than xxx , they will get a customer card, which they can buy the
week of the beer cheaper. The week of the beer will be different kind of beers
every week. A special offer also the multiple-unit pricing, when the customers
can buy different kind of beers in a pack for a better price.
Place
The style of the store will designed by the founders. They want a simple, clear,
modern but still comfortable atmosphere. The store will follow the current trends
and fashion. The store appearance will be referred to the Hungarian origin.
The external appearance of the shop must clearly define the character and the
mission of the business. The shop window has to be big and attractive.
The logo, name plate and outdoor advertisements have to identify with business
image of the store.
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Promotion
The company will use different advertising and promotional tools in order to
encourage sales and to win the trust of the customers. These tools will mainly
come from the Below the line category. Nowadays the non-traditional
advertising tools more and more popular. They increasingly come to the fore. The
company will be using a lot of them. Due to the small size of the business the
marketing budget is also limited. These kinds of tools meet the requirements of
the company's criteria. They are cheap but there are many different ways they
can be used. With the help of these tools the company can reach lots of people
and promote the company message.
Company will use tools like:
door activity.
Online advertising The company will use banners on pages which related
The company will create different creative advertising campaigns like teaser
campaigns.
5. Operations plan
When a company starts a business in The Netherlands, it must observe various
government rules2.
At first, the company has to check whether it fulfill the conditions for staying in
the Netherlands. It means that the company has to fulfill a number of conditions,
and sometimes also a residence permit required.
2 http://www.answersforbusiness.nl/guide/starting-business
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Second the company has to select a legal form for example one-man business, or
private limited company. This legal form of the company, define the issues like
liability and tax obligations.
The third commitment is select a trade name (company name), because at the
Trade Register you will required about that. Than the company has to register
with the Trade Register, at the Chamber of Commerce which is belongs to the city
of the business. It will pass also on the companys details to the Tax and Customs
Administration. After this administration, the company doesnt has to register
with the Tax and Customs Administration again.
Than a company need to register with a product or industry board. Some sectors
require this registration, but after 2014 the actual product and industry board
doesnt relevant again, its only exist at 2014.
The company also has to check, if its required for certain professional
qualifications. Some kind of certain professions only allowed to practice, if the
company meets with certain requirement, but usually a company do not required
for that to form a business in the Netherlands.
The company also has to pay attention about the environmental regulations. If
the company operation will have an influence on the environment, it has to
present a notification of environmental management to its local municipality.
Sometimes its also needed to use an All-in-one Permit for Physical Aspects
(Omgevingsvergunning)
The company also has to think about the fire safety requirements. Measures must
be taken by the company about the secure fire safety. Sometimes also needed to
apply for an All-in-one Permit for Physical Aspects, just as at the last point.
The business has to create his own business bank account, because it often arise
expenses, and a bank account make its own work easier. In Netherland, a
business has to maintain accounts for seven years.
Its also has to check, if its need an insurance. In Netherland everyone who live
here and earn income here, have to take health insurance, so the owner/owners
of the company has to have this insurance, and also has to pay Dutch national
insurance contributions. Next to it there are several ways to insurance the
business. Both of the countries, The Netherlands and Hungary are the member of
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the European Union. Thanks to the free trade between countries importing goods
from Hungary to Netherlands can be easy and cheap
A company needs faithful and reliable suppliers, to support uninterrupted
operation. The company suppliers are Hungarian companies, whom we can
cooperate easily. The company has to find the right brewery from Hungary with
different kind of beers (different taste, different brewing process, and different
style of the beer). The company has to show them, that this foreign relation is
good for them also, because they can extend them business, develop new
markets, find new customers. The management also has to deal with them about
the financial part of the shipping, has to find the right quantity, and time for the
transport. They have to be committed about this business opportunity, and the
company has to agree with them.
The company needs to do some efforts to find the right suppliers:
Find different kind of brewery, with different kind of beers (quality, taste,
style, price).
Has to find the right supplier, who can transport on the right time.
Has to find the right quantity of the transport.
The number of the beers what can be hold in the storage room
The number of beers, what can be hold in the store
and also the needs of the customers.
The company has to find the right route from the brewery to the store.
The company will rent a store in the center of Enschede. The store will be located
in a side street, which is still close to every important meeting points of the city.
The company would choose an area where is the customer traffic is still good but
the renting prices are not to high. These are usually small street which link more
busier pedestrian routes. In this kind of street the shops size are smaller what is
fully in line with the company's expectations. The size of the store needs to be
between 50 to 100 square meter because of the small business size but still
adequate in order to run the business properly.
The company has to find a place which has more room. The proper layout if the
store would be divided for 3 units. In the front there will be the front office. In the
back side of the store, the storage room and the office included a small kitchen
and a restroom will be located. In the front room what is the service area the
equipment and the furniture will be simple and clear. The clarity of the shop will
focus on the beers. Along the walls from bottom to top there will be shelves with
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all the different products on it. Thus the customer will have an opportunity to get
in touch with the company full product range. Furthermore is it necessary to
establish a desk where the customer can place their orders and pay for the
products. The design of the desk has to meet with the whole appearance. It has
to be simple, comfortable for both the customers and employees too - and
functional. The front office has to be equipped with all the needful apparels like
cash machine, pos terminal - for the possibility to pay by credit card personal
computer.
The size of the back office has to be sufficient for two employees. There will be 2
working desk which occasionally will operate as a conference table if the
company has to negotiate with partners and clients. The atmosphere of the office
at the same time need to reflect to customer-centric approach, professionalism
and the new kind of business vision. The kitchen part of the office could be
separate in a esthetic way. It will be equipped with all the stuff what a kitchen has
to contain, for example microwave oven, coffee machine, small size fridge for
daily food, different furniture and kitchen accessories.
In the third room which will be the storage room, must have access to sufficient
supplies for continuous operation. The shop mechanical equipment like boiler,
electric meter, fuse box - will be placed here.
That the business meets these criteria the company will cooperate with
Hungarian entrepreneurs. On the one hand the bid of the Hungarian contractors
is more favorable in terms of price and the other hand the communication
process would be easier. The necessary modification and renovation like
painting, electrical works and carpenter works will be divided between the
1.
Define
Review
entrepreneurs
and owners in order to reduce costs. The company will be6.able
to and
cover all the costs from the share capital.
Meeting
exit
notes
Classic six-phase project management model3
Project
-TheTerms
ofwill be following this model for managing process.
company
reviews
reference
5. Communications Notes Reports Presentaion
2. Plan
4. Control
-3.Work
breakdown
Team
leading, building
and
- Cost
control
Team
and
3
http://libweb.surrey.ac.uk/library/skills/Starting%20a%20project
motivation
-Schedule
authority
control
Effort
and
%20OU/B713_2_section3.html
-duration
How to build a team
-Progress
- Schedule
meetings
-- Researches
Leadership activities
17
- Re-plan
- Budget
analysis
- Risk
Qualities
- Motivation factors
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Personnel Plan
Because of the consequence of the low budget, at the beginning the company
wont have any employee, the three owner will work in the shop, and them
payment will be given depending of the profit only. Its a new business in a new
market, the business hasn't got any reputation, thats why The Small Hungary
want to use every opportunity to meet with their future customers needs, so the
opening time of the shop will be longer than the usual eight hours opening time,
it will open from 10 am to 10 pm. It gave to their customers flexibility to visit
almost every time when they want. The shop will be open from Monday to
Saturday, but at Saturday only from 12 to 6.
During the day one of the owner will work in the back office, and two of the
owners will working in the front office of the store, to serve the customers, and
perform daily tasks.
Front office tasks:
6. People plan
The management of the company consists of 3 young but enthusiastic persons.
They are in the beginning of their career but they are full of hope and sense of
purpose. All of them have a good knowledge in their fields. Theirs background
covers
economic,
administrative,
marketing,
commercial
and
agricultural
knowledge. They have experience in different areas of the life. All of them have a
positive attitude to life. They are creative and they posses good problem solving
skills. They know that they still have to learn but they are ready for that and they
are determined for it. Together they form a perfect whole by complementing each
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other's shortcomings. They believe in their business, product and the future
success.
Management summary
The owners of the Small Hungary B.V. are Laura Virg, Balzs Lakatos, Mt
Krolyi, and they will provide the operational tasks. Because this is a small
company, the structure of the organization is simple and clear. Every member of
the company will have the own duty in the everyday working life.
Company Ownership
The Small Hungary consists of 3 shareholders who owned 100% of the company.
Each of the owners has an equal, one-third share.
Virg Laura - share: 1/3
Balzs Lakatos - share: 1/3
Mt Krolyi - share: 1/3
Management team
Laura Virg was born in 31.12.1991. Kecskemt in Hungary, she started her
studies at an economical high school, in her hometown. After that period she
went to an Economical University where she studied as an economist in business
and management, in the capital of Hungary, Budapest. The budai University
gave her so much knowledge, and opportunity to improve her business approach.
During her studies, she participated in a Study Research program, where she
worked for a whole semester. She also has working experiences in business field;
she worked as a WWF volunteer, and also in a company as a sales manager.
Balzs Lakatos was born in 04.09.1990. Veszprm in Hungary, he started his
studies at an economical high school, in Veszprm. After he graduated in high
school, he started to study in an art school, in Budapest. His major was web and
graphic designing, and he finished it successfully. Then he started his education
at the budai University, in commerce and marketing faculty.
Mt Krolyi was born at 17.03.1990 in Veszprm, Hungary. He started his studies
at an general high school in Veszprm. He graduated in 2009. After that he
started his university education in agricultural field he has a master diploma in
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7. Financial plan
In order to minimize costs, the management will try to cover the initial costs of its
parts. For example the marketing plan will be written, and the design will be
design by the members of the company, the advertisement will be mainly
through the internet, and the furniture will bought from second hand shops. All
the equipment, employees workers will be from Hungary, will be Hungarians, to
reduce the costs with it also.
Start-up costs
registration fee
deposit
renovation, modification cost
back office
1 computers
2 desks
4 chairs
printer machine
others
kitchen
kitchen equipment
fridge
microwave oven
coffee machine
50
1800
1500
390
50
50
65
40
150
200
60
50
20
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others
storage room
shelves
fridge
fans
mechanical equipment
safety equipment
front office
shelves
cash machine
pay desk
2 chairs
computer
POS terminal
decoration
marketing costs
All costs
30
60
350
50
25
390
350
50
100
6920
/ year
7200
4000
4800
stock
All costs for 1 year
All costs for 1 month
30000
46000
3833
6920
3833
10753
52920
40
320
100
250
400
52920
3
1470 bottle/month
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8. Future plan
The management of the company has lots of idea about how to develop the
company in the future. Some of this ideas are must have to do at the close
future; some of them are long term goals, but still good to focus on the long term
goals too. These ideas are:
-
apply Dutch worker/student workers whose can help in the store with the
customers
sell Hungarian Plinka also, not just beer (its made from fruits, kind of a
predetermined amount
open a web shop, where the customers can find all the kind of beers what
the company offers, and they can buy a large quantity of beers.
offer a delivery service.
Conclusion
The members of the company are dedicated about the visibility of this
opportunity. The Small Hungary B.V. believes in its vision and if it is following this
business plan the goals can be achieved and the business can be successful.
22