Yummy produces and sells power drinks that can replace a whole meal. Cursorily, a smoothie is a fruit drink with some extras, but after a closer view the customer gets all the minerals and vitamins he/she needs for a powerful day.
There already exist a few competitors in Switzerland but they focus on people who like to have a fresh drink in the hot summer and they do not use any extras for special occasions. Yummy will make the difference and gives the company a USP because Yummy focuses on other target groups: There are the business people who are always in stressful situations without much time and quick healthy meals. There are sports-aware people who do not have the chance to get a quick meal rich in vitamins and minerals away from their own kitchen. In addition, there are health-conscious people in general who will love the product.
Table of Contents
1. Introduction
2. The purpose of the company and its management style
3. Host country regulations and investments
3.1 Country risks
3.1.1 Political risk
3.1.2 Economical risks
3.1.3 Growth prospects
3.2 Rules applying to investment from outside
3.3 Other legal issues
3.3.1 Dispute resolution
3.3.2 Labor laws
3.4 Tax considerations
3.4.1 Taxable base
3.4.2 Withholding taxes
3.4.3 Tax rates for Yummy in Zurich
3.5 Foreign exchange
3.5.1 Foreign exchange risks and controls
3.5.2 Transfer pricing and remittance issues
3.5.3 Current and projected rates (USD to CHF)
3.6 Overseas private investment corporation (OPIC)
3.6.1 Subsidies
3.6.2 Export
3.6.3 Free trade zones
3.7 Foreign direct investment (FDI)
3.7.1 Turnkey project
3.7.2 Factors influencing foreign direct investment
3.7.2.1 Supply factors
3.7.2.2 Demand factors
3.7.2.3 Political factors
4. Marketing plan
4.1 Wots-Up-Analysis
4.2 Market potential
4.2.1 Public infrastructure
4.2.2 Population, GDP, per capita GDP, wealth distribution
4.2.3 Developments in consumer spending
4.2.4 Description of the industry (six external variables)
4.4 Competition
4.4.1 Porter’s five forces
4.4.2 Levels of competition
4.5 Target group
4.6 Marketing mix
4.6.1 Product
4.6.2 Price
4.6.3 Promotion
4.6.4 Place
4.7 Marketing goals
4.7.1 Level of the field of business
4.7.2 Level of the company
4.7.3 Level of the operation
4.8 Strategies
4.9 Sales plan
5. Financial plan
5.1 International capital budgeting
5.1.1 Net present value
5.1.2 Payback period – Bailout payback
5.2 Internal/external sources of investment capital
5.3 View of costs
5.4 Cost price calculation
5.5 Balance
5.6 Exploitation estimate
5.7 Liquidity estimate in Swiss Franc
5.8 Liquidity estimate in Euro
6. Conclusion
Project Objective and Thematic Focus
The primary objective of this report is to outline a comprehensive business plan for the expansion of "Yummy," a German smoothie producer, into the Swiss market. The document evaluates the feasibility of establishing a franchise-based chain, focusing on market entry, regulatory compliance, and financial sustainability.
- Strategic market analysis (WOTS-UP) for the Swiss business environment.
- Regulatory and legal framework for foreign investments in Switzerland.
- Target group definition and marketing mix development for the niche smoothie market.
- Comprehensive financial planning, including capital budgeting and liquidity projections.
Excerpt from the Book
Marketing advantages:
Marketing has become very important for all parts of business fields during the last 30 years. But especially for life-style products in the B to C market it is one of the most important elements for success. Mostly, there are similar products on the markets as you can see on the smoothie market. In general all smoothies are pretty much the same. Maybe they have just different tastes or ingredients. But the emotional aspect plays a major role because the customer associates a special feeling, an emotion, and an intention while buying a smoothie. Therefore, Yummy is the first company that tries to transfer a special feeling to its target groups by a clear marketing concept. In this way, Yummy has the chance to become the market leader by differentiating itself from all the other, mostly small companies.
Exploitation of competitive advantage:
In the landscape of modern business, firms are persistently striving to generate mechanism for differentiating themselves from their competitors within given markets. Yummy’s greatest competitive advantage is its differentiation compared to the competitors with a strong focus on a special market segment by using direct communication to a chosen target group. With this strategy Yummy is able to get a position on the market which will be recognized by its customers. Especially on the smoothie market the competitors have not yet taken a position because many of them have just opened a store without any identifiable position. They just sell their smoothies in shopping malls or entertainment districts – so places where are many people. Further, Yummy differentiates itself from its competitors by offering innovative smoothies by adding expensive additives for each group of customers. Moreover, Yummy uses only organic fruits for preparing the smooties. Meanwhile, many consumers try to buy exclusively organic products as a result of the food-scandals.
Summary of Chapters
1. Introduction: This chapter introduces the trend toward healthy nutrition and the concept of Yummy smoothies as a meal replacement, justifying Switzerland as the target country for expansion.
2. The purpose of the company and its management style: This section defines the company's goal of establishing a niche market in Zurich and determines a cooperative management style based on Geert Hofstede’s cultural dimensions.
3. Host country regulations and investments: This chapter analyzes Switzerland's low political and economic risks, tax considerations, foreign exchange stability, and legal environment for foreign direct investments.
4. Marketing plan: This extensive section details the market strategy, including a WOTS-UP analysis, target group segmentation, the marketing mix (product, price, promotion, place), and sales planning.
5. Financial plan: This section provides the fiscal foundation for the project, covering capital budgeting, cost structure, balance sheet projections, and liquidity estimates.
6. Conclusion: This final chapter synthesizes the financial and strategic findings to justify the management's decision to proceed with the business plan despite initial negative net present values.
Keywords
Business Plan, Yummy, Smoothies, Switzerland, Market Entry, Franchise, Niche Market, Foreign Direct Investment, Marketing Mix, Financial Planning, SWOT Analysis, Organic Products, Consumer Behavior, Capital Budgeting, Corporate Taxation.
Frequently Asked Questions
What is the core purpose of this business plan?
The core purpose is to evaluate and prepare the entry of the company "Yummy" into the Swiss market by opening three stores in Zurich and potentially scaling to a nation-wide franchise.
Which key sectors does the document cover?
The document covers legal and tax regulations in Switzerland, market potential, competition analysis, marketing strategies, and financial forecasts for the first three years of operation.
What is the primary research goal?
The primary goal is to determine the feasibility of entering a new foreign market (Switzerland) through a niche-focused strategy while mitigating risks associated with trade barriers and cultural differences.
What scientific methodology is applied?
The author utilizes Hofstede’s cultural dimensions for management style, Porter’s Five Forces for competition analysis, and WOTS-UP (SWOT) analysis for strategic business evaluation.
What does the financial section focus on?
The financial section analyzes the international capital budgeting, cost structure of the shops, balance sheets, and provides liquidity estimates to assess long-term profitability.
What are the characterizing keywords?
Key terms include Market Entry, Niche Market, Foreign Direct Investment, Franchise System, Marketing Mix, and Liquidity Planning.
How does Yummy intend to differentiate itself from competitors?
Yummy differentiates itself by focusing on a specific niche market, offering premium, organic-based products, and utilizing a direct communication strategy that associates the product with a specific healthy lifestyle and emotional value.
What is the conclusion regarding the project's financial feasibility?
While the initial net present value is negative, the project is considered feasible because the start-up investment is relatively low, positive net income is projected by the third year, and the brand is expected to become a leader in its target niche.
- Quote paper
- Robert Tönnis (Author), 2006, Business Plan: YummY - Der gesunde Fast Food Store, Munich, GRIN Verlag, https://www.grin.com/document/67142
