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Business Plan

1. COMPREHENSION

 

  • MAIN DATA

 

Name: Student company Spoony

Schools: Gustav Adolf Grammar School & Old Town Educational College

Adress: Vene 22, Tallinn

Business life: 01.10.2015 – 07.06.2016

Teacher: Kristel Rannaääre

Mentor: Aili Kala

 

  • BACKGROUND

 

The idea for the student company Spoony came at a café, when two sweet-tooths found, that the basic hot chocolate could be enhanced with different flavors. A similar gift from Belgium helped them work on their idea, because they had never seen anything similar in Estonia. As they saw a way for enriching Estonian market, they decided to bring their idea to life and by that give answers to the questions like “what to give as a gift” and “how to spend time”. The idea was to produce a spoon with a chocolate cube that turns into a hot chocolate drink after being melted in hot milk.

In the Old Town Educational College, starting a student company is a tradition. In Gustav Adolf Grammar School, these topics are a matter in the economy class and business and investment lecture.

 

  • COMPETITIVE ADVANTAGES

 

The design of Spoony is minimal and professional, therefore the product is ideal for any gift. At the same time its price is the best from the same kind, as it is very low. Service and communication with the clients is fast, active, kind and with a sense of humor, bringing joy to almost everyone. Clients can order our product online and get it delivered to a preferred place. Spoony uses local chocolate to support Estonian producers.

 

 

  • BUSINESS IDEA

 

The student company produces wooden spoons with a chocolate cube as the base for making a hot chocolate drink.

The target groups are kids, the youth, couples, married couples, companies and institutions, who award their workers, cafés and restaurants.

A person, who buys a Spoony:

  1. wishes to use it as a gift or as a part of a gift;
  2. loves sweets and wants to have an alternative for coffee, hot cocoa or tea;
  3. needs to spend some good time.

Clients can buy Spoonies at fairs, but in addition there is also an opportunity to order via Facebook. To recieve ones order, the client can choose between a meet up, a post package or a delivery to home. In the future, Spoonies can be bought from shops, coffee shops and restaurants.

 

2. MARKET SITUATION

 

2.1 POTENTIAL CLIENTS

 

The majority of the clients are:

  1. Demographically: Estonians, women, aged 16-50, members of a family
  2. Geographically: from urban areas
  3. Psychologically: active and on the go, social, interested in new products
  4. Socio-economically: mid range and wealthy

The client of Spoony visits fairs and/or is active on social media and uses the possibility to order online. Among all clients, there are tourists, foreigners, children, men and elderly.

 

            2.2 ANALYSIS OF COMPETITORS

 

Spoonys main competitors are situated outside of Estonia, therefore the advantages of Spoony are being near to the clients and easily accessible without any further fees. Spoonys clients are Estonian and prefer local design and communication, rivals are far away and communicate in foreign languages.

Competitors advantages are industrial and professional manufacturing, where specific machines and techniques are used. This is possible with a big capital.

 

 

3. ANALYSIS

 

  • SWOT ANALYSIS

 

Strenghts: The strengths of the company are high levels of motivation, open mindedness, active thinking, good communication skills and salesmanship, appreciation of the quality, design and useful acquaintances.

Weaknesses: Possible shortness of raw materials. No machines and professional manufacturing.

Opportunities: Spoony will be sold at shops, coffee shops and restaurants. The company is promoted in television and will by that gain recognition in media. Spoony wins different awards at student company fairs and gains a place in the TOP 3 of Estonian best student company completition.

Threats: The client is disappointed in the product. Media gives bad feedback. Retailers do not agree on collaboration.

ANALYSIS

It is important to take use of high motivation and active thinking when developing the company. Positivity and open mindedness should be used for even better communication and to keep apart from problems. Continuing with good salesmanship at fairs is one of the main priorities. The abilities should also be used to better marketing. Quality and local design are the keywords of Spoony which should be kept in mind when developing the company. Keeping good relations and giving thanks to helpers has to be a part of the job.

It is very possible, that Spoonies will be sold in different coffee shops and restaurants. Having shops as retailers is placed second on the priority rank. Gaining promotion in media is potential too, as the product is first of its kind in Estonia. Winning awards at different events organized for student companies will be set as a goal and the team will work very hard for that. The biggest completition will be held in May, when the best student company in Estonia 2016 is chosen. Spoony aims to gain a place at the TOP 3. The team gives their all for the client not being disappointed in them – that is the biggest priority. Through good manners all bad feedback can possibly be eliminated.

 

 

  • ECONOMICAL SITUATION

The initial capital of Spoony was 260 Euros. Financial source is the sales of the product.

 

 

4. MAIN INTENTIONS AND STRATEGIES

 

  • INTENTIONS

 

MAIN TARGET

The main targets of the company are to gain a turnover of 6000 Euros and to gain recognition for the name of Spoony.

 

PRODUCTION INTENTIONS

  1. Produce three base tastes and four special flavors for holidays;
  2. Produce at least 160 Spoonies for every fair;
  3. Produce 3000 Spoonies throughout the business life of the Student Company.

 

SALES TARGETS

  1. Sales value: 3000 pieces
  2. Turnover: 6000 Euros
  3. Sales at fairs (pieces): 1000 pieces
  4. Sales at fairs (€): 2000 Euros per fair
  5. Sales at coffee shops (pieces): 1000 pieces
  6. Sales at coffee shops (€): 2000 Euros
  7. Sales through orders (pieces): 1000 pieces
  8. Sales through orders (€): 2000 Euros

 

MARKETING INTENTIONS

  1. 1000 likes of the Facebook bage of Spoony
  2. Recognition in television through an interview
  3. 1 article in print media publication

 

  • STRATEGIES

 

STRATEGIC SKILLS

We offer a very good price and quality relation, where the quality meets the one of competitors, but the price is lower.

According to the market analysis, our keywords are cuteness, likable by children but at the same time professionalism and representativeness

MISSION

The companys mission is to enhance Estonian craft and food market. The idea hides a potential of solving the problem of gift giving, because the warmest feelings and emotions can be shown through a sweet mouthful. From time to time one craves for something new but at the same time simple and with a well-known taste. That is just what Spoony stands for.

 

 

5. MARKETING PLAN

 

 

5.2 MARKETING METHODS

 

5.1.1 THE PRODUCT

 

The label comes in three main colors –white, brown and black, each stands for a different type of chocolate. As the product has developed and new tastes have been added, some labels also refer to the flavor of the specific spoon. All labels are minimal and professionally designed. The wooden spoon, chocolate cube and decorations make the product whole and help to get an aim of the taste. The package is simple and seethrough to give the product more space. At the back of the label there is a simple manual of how to use the Spoony: “Melt me in 250 ml of hot milk”.

 

5.1.2 FORMING THE PRICE

 

When pricing the product, competitors price, net cost, self cost, customers purchasing power and the period of time was taken on account.

The price of one Spoony is 2 Euros. During Christmas and other holidays a campaign price is set to 3 Spoonies for 5 Euros.

The management covers the damage from the campaign costs from their personal salary.

 

5.1.3 MARKETING CHANNELS

 

The team meets the clients at different fairs (Christmas fairs, design markets, local fairs) or via social media, but in the future the product can be bought from shops, cafés and restaurants. At fairs the table is designed to meet the overall visual of the company, therefore tablecloth and decorations are all in the same color range as the labels. The team wears same clothes to be blended in with the surrounding chocolate.

 

5.1.4 MARKETING COMMUNICATION

 

The biggest promotional place for the company is Facebook, but in addition Instagram is used to reach even more clients. Apart from that the aim is to gain some media recognition through the television and radio, or use promotional surfaces in public spaces.

During fairs it is important to create trust between the company and its clients. To help the process matching outfits and name cards are used. For more attention, cards are spread among visitors.

The student company was introduced as a new product on Estonian market. Facebook fulfills the role of a yet not made web page. In the future, when orders exceed a set limit, an online shop will be launched to ease the process.

 

 

 6. MANUFACTURING PLAN

 

  • PRODUCTION DEVELOPMENT

 

All products are in constant improvement according to the clients feedback. At first, three flavors will introduced to the market, but no sooner two tastes will be added to widen the variety. In addition to the basic products, on almost every holiday a new limited edition Spoony will be made to enrich the product line. In the future a 100% organic Spoony will be made, with handmade chocolate and raw ingredients. A honey spoon is also in the process of development and all spontaneous ideas are thought through. The main target is to better the quality by both taste and appearance.

 

  • INVESTMENT PLAN

 

Every founding member invested 60€, their number of shares is equal to their initial investment.  The 240 Euros from all four members was the initial capital, with what all tools, raw materials and ingredients were bought. Some of the money will be used for further production.

 

 

 7. STUDENT COMPANYS DIRECTION

 

  • DIRECTION

 

The direction includes four members:

CEO Juhan Kokla is assigned with coordinating all activities in relation with the company, hand out tasks according to responsibilities and motivate workers. He is also in charge of managing the official mailbox of the company and communicating with major partners.

Marketing manager Kaspar Kuus makes sure that Spoony will be known by as many Estonians as possible and that the company would enter international markets soon. His tasks are to develop new marketing methods and set sales targets. Important are constant advertisements (including lotteries) and new retailers. In addition, Kaspar also deals with clients/ communication on Facebook.

Finance manager Christopher Roosla owns the bank account of the company and deals with the money. He is in charge of all costs and changes. He presents monthly overviews of the balance and keeps financial documentation. According to his information, agreements are made about the expenditure and financial status.

Designer and production manager Hannah Caroline Segerkrantz designs all visual materials and takes care of the outside imago of the company. She is in charge on both Facebook and Instagram and creates a whole of the company in social media. As a production manager she keeps track of ready-made products and raw materials

 

  • WAGE SYSTEM AND THE REMUNERATION PLAN

 

The companys employees work fee is 3 Euros per hour, which is precisely calculated and fitted into production costs. Between management members all works are spread and profit will be spread according to the stocks– equally.

 

  • TIME MANAGEMENT

 

In the table, dark areas refer to the most intense months and lighter colours represent periods with less work.

 

8. ASSESSING THE RISK FACTORS

 

The biggest risk is getting low income at fairs. To eliminate this problem the team will analyze every market beforehand based on its location, opening hours and clients and according to the results a goal will be set on how many products should be sold. An additional extra will be taken to every market to ensure that no client will be left unpleased and without a Spoony.

There is a risk in two ways when providing retailers with products: the retailer may not be pleased with the quality of the product (the risk is very small, because no product with a defect will be put on market) or when the best before date is passed but the product is still not sold.