Business Studies

Business Plan Part 3: Strategy

The purpose of this assignment is to conduct market analysis to set goals and formulate action and communication plans for the proposed initiative.

Before you begin the written assignment, make sure you have conducted research relevant to the strategic initiative business plan. Include market analysis that can be used to formulate goals and outcomes, project structure, and stakeholder identification, needs, and communication.

In a 1,250-1,500 word business plan that is clear and concise and utilizes business language and style, address the following using bullet points, narratives, and relevant visuals.

History or rationale for the proposed strategic initiative, including industry trend data and other relevant research.
Market analysis (internal and external) summary and explanation for how this analysis supports the proposed initiative. Include discussion regarding competition.
Measurable project goals and outcomes and their relationship to the strategic focus of the organization.
Description of the project structure including alliances, contractual relationships, etc. and explanation of how each supports the proposed initiative.
Prioritized list of project stakeholders and an analysis of the effect of diverse stakeholder cultures, values, beliefs, and experiences that need to be considered in the proposed initiative.
Table that summarizes the communication plan describing how information will be disseminated to stakeholders including the communication strategies to be used and justification for each, the types of communication channels to be used, and how the communication plan supports what you hope to achieve with the strategic initiative. Articulate the specific leadership skills you will use to facilitate collaboration and communication between stakeholders.
While APA style is not required for the body of this assignment, solid academic writing is expected, and documentation of sources should be presented using APA formatting guidelines, which can be found in the APA Style Guide, located in the Student Success Center.

ANSWER

Sweet Treat Stores (STS) is a family and homemade retail business based in New York City in the United States of America. STS’s primary goal is to be recognized nationally and locally, become the most reliable and trusted brand, and the number one choice for residents in New York while providing the best cookies that create a second home experience for customers.

Product

STS will specialize in a wide range of homemade cookies made from home comfort and not a factory with fresh, locally sourced, and high-quality ingredients. Cookies are the perfect size treat to share and are easy to make, sell, and purchase among customers. STS will focus majorly on cookies as they serve numerous purposes, such as providing a diverse target market. The business’s goal is to deliver happiness, sweetness, and Mom’s kitchen memories in a small package.

Market

The targeted market involves a diverse customer base characterized by demographic, psychographic, behavioural, and geographic segments. Selling cookies provides an opportunity to exploit a diverse customer base, as they are great for family purchase, individual purchase, corporate functions, and gifting purposes. STS will provide indoor and outdoor services, whereby sales will be conducted in the brick and mortar store and distribute others to corporate customers.

Goals

STS’s primary goal is to be recognized nationally and locally, become the most reliable and trusted brand, and the number one choice for residents in North America while providing the best cookies that create a second home experience for customers. STS is set to redefine the Cookies market and industry by creating unique products and services that differentiate and compete firmly. This will be acquired by using the best locally sourced raw and quality ingredients and friendly service. More importantly, STS aims to deliver happiness, sweetness, and Mom’s kitchen memories in a small package. STS will provide a second home where customers can enjoy consuming fresh and healthy cookies while also gifting friends and healthcare workers, to mention a few, to put a smile and incite joyful memories among consumers.

Market Analysis

Growth Strategy

Sweet Treat Stores will employ a market penetration strategy through product modification. Considering cookies made from the factory are cheaper and highly available, the most significant selling point to new customers is that cookies from STS will be fresh, locally produced and with high-quality ingredients. The product entry strategy will compete effectively by being homemade moulded, dropped, rolled, and pressed cookies and for both conventional and healthy cookies with low sugars and calories. As a growth strategy, STS will employ the tactic applied by KFC chicken, franchising in different locations but maintaining a trade recipe that offers a unique taste. STS will charge franchise fees for retail pastries that carry its brand. For distribution, the company will make use of both distributors and retailers. The distribution will be a store to home or office delivery through available online food delivery applications in each region. To reach customers, STS plans to have magical Thursdays and Treat Tuesdays with a buy one get one free offer for specific flavours.

Sales Strategy

STS will derive sales growth by raising the number of total sales in each quarter. A commission compensation system will be implemented for retailers where, in addition to their income incentives will be offered on the achievement of a particular number of sales per quarter. Considering the nature of the products provided by STS, sales will require strong relationships with customers. Salespeople will be tasked to undertake reviews from customers to ensure the best and most suitable product that assures customer satisfaction. For new customers, sales will focus on brand awareness where the company will be tasked to inform the outstanding qualities and health benefits of STS cookies in comparison to factory-made cookies.

Communication Strategy

Internet Strategy

There will be a pool of prospective STS customers online based on the fact that ordering and delivery will make use of an application like Uber Eats. As an internet strategy, STS will make use of online influencers who will get gift hampers from the company on selected offer days and in turn, create content on the products and offers on social media. Other older social media strategies such as a website with information about the products and social media accounts that keep customers engaged will also be applied.

Tracking ROI form website

To track the return on investments from the company’s website will require an initial established online campaign goal. ROI will track both brand awareness and boosted c-commerce sales. Sales will be easy to track because the gross amounts received from online sales will be a clear indication of the evaluation of performance. However, with brand awareness, tracking ROI will be a little more complicated. Nonetheless, new applications such as Google AdWords will track the website’s activity effectively and determine ROI based on the number of clicks and period online users are on the website.

Ethical Practices in Marketing and Selling.

STS promise to the customers is on quality products; therefore, the first ethical requirement for the company will be truthfulness in marketing communications. For instance, the number of calories on each pack must be accurate and well indicated. If the too much consumption of the cookies could lead to obesity, the company will be obligated to offer that information to customers before purchase. Endorsement from freelancers has to be transparent and clear. Lastly, government policy on issues such as public health regulations and standards of quality must be highly adhered to.

Team and Leadership

The success of businesses requires a strong foundation, requiring an integration of the most appropriate business structure. STS is set to compete favorably with leading companies such as Little Debbie, Nabisco Oreo, and Insomnia Cookies. Hence, the business will dedicate much investment in the workforce, hiring based on talent, passion, experience, skills, suitability, competence, and academics. A team of 13 employees will run STS, 6 top executives, and 7 staff, as seen in the table below.

Team Planning

Table 1: Team Planning Strategy:

Source: Own Illustration

References

FDA.gov. (2020, September 7). How to Start a Food Business. Retrieved from FDA: Food Industry: https://www.fda.gov/food/food-industry/how-start-food-business

Insomnia Cookie. (2020). Insomnia Cookies: About Us. Retrieved from Insomnia Cookie: https://insomniacookies.com/about

MarketWatch. (2020, July 15). Global Cookies Market Top Countries Data 2020 Analysis by Industry Trends, Size, Share, Company Overview, Growth, Development and Forecast by By 360 Market Updates. Retrieved from https://www.marketwatch.com/press-release/global-cookies-market-top-countries-data-2020-analysis-by-industry-trends-size-share-company-overview-growth-development-and-forecast-by-by-360-market-updates-2020-07-15