Business

Expanding Business

Introduction

From five years to 2017 will be crucial for the Supermarket and Grocery Stores industry. As the economy continues to recover, the industry's greatest fear is that Americans will lose the incentive to strictly budget and revert to paying for regular take-out and restaurant meals.

Starting Grocery store which will focus on the local products manufactured by the small manufacturer requires a huge consideration as many factors can create hurdle in the success of the business. For this purpose financial plan, marketing strategy is an important element. This section will focus on these two areas.

Discussion

Financial Plan

The startup plan for Grow Local Grocery is a high quality grocery store. This store will offer community people with items grown locally i.e. close to home which has been produced with love and care. The following has is the start up cost for Grow Local Grocery. The owner of the company has attempt for small business loan amounting $100,000 which will cover the entire cost. It is expected that the actual cost would be lower than what has been predictable cost (Baker, Addams, et al., 1993).

The three months cost would be as followed:

Start up cost

Per month cost

Insurance

300

Rent

2500

Initial loan payment

1000

Utilities

1000

manager salaries - 2

4000

Long Term Assets

Refrigerators

Cabinets for displaying the grocery items

Necessary Equipment for Kitchen

Start-up Requirements and funding

Figure 1 (see Appendix)

Company Ownership

The company ownership is as general partnership which is not registered with the state which does not has to pay certain amount of fees like INC

Sales analysis

Sales strategy is made with the consideration of the purchasing power of the area. Furthermore, the product has been locally produces, so initial margin would not be so much high. The following are the forecasted sales assumptions.

Average item sales: $ 4.5

In Slow season People purchasing: 40 for Jan, Feb, Nov, Dec. This would be an average of 20 dollars of sales per person

In Busy season People purchasing: 75 from Mar- Oct. This would be an average of 30 dollars of sales per person

Sale Forecast

Figure 2) See Appendix

Highlight

In the next grant, the highlighted events have been shown in order to bring more improvement in the business and to accomplish further goals of the company. Figure 3) see appendix

Break-even Analysis

The following is the breakeven analysis of the Grow Local Grocery.

Projected Profit and loss account:

(Figure 4: See appendix)

Marketing Strategy

Marketing strategy is the response to the challenges that company is facing in the field of production and sale of its products, and (indirectly) the problems that are associated with profits. This allows for dynamic growth and maintains its market. This does not mean that the strategy of marketing is to be developed only in situations of risk. It is needed in every situation. It is also very important for it to be considered as part of the overall development strategy of the company.

The marketing strategy that has been chosen by Grow Local Grocery is guerrilla marketing strategy. They will be using this strategy for their further promotions in the area.

Guerrilla marketing is a set of unconventional communication techniques that are obtain through the maximum visibility with minimum ...