BMG933 Business Plan Proposal Assignment Sample

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1 Introduction to Business Plan Proposal

1.1 Problem Identification

Agricultural activities in Birmingham such as industrial farming and urbanisation have caused environmental problems, such as the dwindling number of bees, which are important in food production and have major impacts on food security and biologic diversity (Wenzel et al., 2019). Also, consumers are increasingly concerned with natural and organic food and products that enhance health and the environment.

1.1.1 UN 17 Sustainable Development Goals:

• 1 SDG 2: Zero Hunger Ensures food security by improving pollination from proper bee farming.
• 2 SDG 3: Good Health and Well-being Sells natural honey that has no additives and helps in the promotion of health among consumers.
• 3 SDG 12: Responsible Consumption and Production – Deals with Sustainable Production and Use of Natural Resources and Products (UNOOSA, 2024).

2.1.2 The Business Idea: introduce it

SweetSavor is an innovative and organic bee farm in Birmingham that offers top-quality honey and beeswax end products organically extracted (FAO, 2023). The business benefits local agriculture through pollination services, attempts to reverse the decreasing numbers of bees, and serves the market for organic products. SweetSavor has incorporated aspects of environmental conservation and health awareness into its markets, which include a healthy and environmentally conscious populace. This example is ideal for those seeking assignment help UK on sustainable and organic business models.

1.2 Market Analysis: (TOM, SAM, SOM)

FIGURE 1: Population of the city

(Source: Council, 2024)

Market Level	Population	Percentage (%)	Estimated Market Size
Total Addressable Market (TOM)	1,157,603 (Total Population in Birmingham, 2022)	20%	231,521 potential customers
Serviceable Available Market (SAM)	TOM = 231,521	50%	115,761 reachable customers
Serviceable Obtainable Market (SOM)	SAM = 115,761	10%	11,576 customers you can realistically capture

1.2.1 SWOT

Table 2.1 SWOT Analysis (This is an EXAMPLE)
SWOT Analysis	Strengths	Weaknesses
Opportunities	Premium quality organic honey and beeswax products Strong focus on sustainability and alignment with SDGs Local partnerships with farmers and organic food retailers	Limited brand recognition initially Dependence on seasonal production affecting supply consistency High initial capital investment required for setup
Threats	Expanding market for organic and sustainable products Increasing consumer awareness about environmental impact and health benefits of organic honey	Strong competition from established brands and local competitors Climate change and environmental factors affecting bee populations Fluctuating market demand and economic downturns impacting consumer spending
Source: Selfdeveloped

1.2.2 PESTLE

PESTLE Analysis	Details
Political	Regulations: UK regulations on organic farming require compliance with specific standards, which could impact production processes (Organic UK, 2014).
Subsidies: The UK government offers grants for sustainable farming practices, which can reduce operational costs.
Trade Policies: Brexit has influenced trade agreements, potentially affecting the import of raw materials like packaging.
Economic	Consumer Spending: The economic health of Birmingham, with a population of 1.15 million, affects demand for premium products like organic honey.
Inflation: The UK's inflation rate may increase costs for raw materials and packaging.
Cost of Goods: Fluctuations in fuel prices may impact logistics and distribution costs, affecting product pricing (Mahmoudi and Parviziomran, 2020).
Social	Consumer Trends: A significant portion of UK consumers are willing to pay more for products that are sustainably sourced.
Health Awareness: Rising awareness of health benefits associated with organic products, with many consumers seeking natural alternatives.
Local Sourcing: A growing trend towards supporting local businesses, with many consumers preferring locally sourced products.
Technological	Ecommerce: The rapid growth of online shopping in the UK offers a significant opportunity for SweetSavor (Spence et al., 2021).
Sustainable Packaging: Innovations in biodegradable and recyclable packaging materials could enhance the brand's ecofriendly appeal.
Beekeeping Technology: Advances in hive monitoring and bee health management technologies can improve productivity and honey quality.
Legal	Organic Certification: Compliance with UK and EU standards for organic certification is mandatory, impacting labeling and marketing (Duvaleix et al., 2020).
Food Safety: Strict UK food safety regulations must be adhered to, affecting production processes and quality control.
Environmental Legislation: Laws focusing on environmental sustainability may require investment in greener practices.
Environmental	Climate Change: The UK's changing climate, with more extreme weather patterns, could impact bee populations and honey production.
Sustainability: Growing regulatory focus on sustainability in production practices could offer competitive advantages (Tu and Wu, 2021).
Carbon Footprint: Opportunities exist to reduce carbon emissions through local sourcing and eco-friendly practices, appealing to eco-conscious consumers.

1.2.3 Porter's 5 Forces

Porter's 5 Forces	Details
1. Threat of New Entrants	- Moderate: Entry barriers are relatively low for small-scale organic honey producers, but building a strong brand and customer base requires time and investment (Ingram, Hansen and Bosselmann, 2020).
- Established players and brand loyalty in the organic market could pose challenges for new entrants.
2. Bargaining Power of Suppliers	- Moderate: Dependence on local farmers and packaging suppliers could lead to variability in supply and costs.
- However, the availability of alternative suppliers helps mitigate this risk.
3. Bargaining Power of Buyers	- High: Consumers have a wide range of choices for organic and non-organic honey products, giving them significant power to demand better prices and quality.
- Price sensitivity among consumers could impact premium pricing strategies (Ali and Anwar, 2021).
4. Threat of Substitutes	- High: Numerous substitutes exist, including other types of sweeteners like agave syrup, maple syrup, and sugar, which can be used as alternatives to honey.
- Non-organic and imported honey products may also serve as substitutes, potentially at lower prices.
5. Industry Rivalry	- High: The organic honey market in the UK is competitive, with several well-established brands and local producers.
- Competing on sustainability, product quality, and brand reputation is crucial to differentiate SweetSavor in the market.

1.2.4 STP

STP Elements	Details
Segmentation	- Demographic: Age (25-55), income level (middle to high), education level (college educated), occupation (professionals, health-conscious individuals).
- Geographic: Residents of Birmingham and surrounding areas, with a focus on urban and suburban households.
- Psychographic: Eco-conscious consumers, health and wellness enthusiasts, those who prefer organic and locally sourced products.
- Behavioral: Consumers who are willing to pay a premium for quality and sustainability, those who seek natural alternatives to processed foods (Kovacs and Keresztes, 2022).
Targeting	- Primary Target: Health-conscious consumers and eco-conscious individuals in Birmingham who value organic and sustainable products.
- Secondary Target: Local food enthusiasts and supporters of small, local businesses.
Positioning	- Positioning Statement: "SweetSavor offers premium organic honey and beeswax products that are not only good for your health but also support sustainable farming and environmental conservation. Our products are locally sourced and crafted with care for the eco-conscious consumer who values quality and sustainability."

2 Operations Plan

2.1 Identified type of business

SweetSavor is a bee farm company of organic bees situated in Birmingham that deals in natural honey and beeswax. It tends to localized agriculture by preserving the ecosystems, and increasing consumer sensitization on healthy foods. It is a venture model that integrates farming with value addition of products for sale in the retail and direct consumer markets using e-commerce and physical markets.

2.2 Situational Analysis (Using above models)

Strengths: SweetSavor has an advantage in tapping into the ever-increasing market for organic products, a proven social concern towards sustainability and good networks on the ground (Li and Kallas, 2021). Currently, the business is in a good place to benefit from Birmingham's environmentally conscious customers.

Weaknesses: Some threats include; The business is at a risk of facing challenges in establishing its brands, seasonal production, and initial capital investment. Challenges remains in demanding itself against well-recognized brand names and guaranteeing a good quality of its product.

Opportunities: Creating an online platform for selling products, developing a new and diverse range of products, and providing consumers with an understanding of the need for using sustainable products also are promising directions for the company's development (Park et al., 2020). Additional cost-cutting may be realised if viable and sustainable farming was supported with government grants.

Threats: There could be threats such as competition pressure, unpredictable customers' demand, negative effects of climate change on bees, and economic instabilities in future challenges that may affect the business. Implementing the necessary change to meet the new regulation while preserving consumer's confidence in the brand will be important (Nayal, Pandey and Paul, 2021).

2.3 Financial Plan Projection, identify potential startup costs, breakeven analysis, etc.

Item	Details
Fixed Costs	£50,000
Variable Cost per Unit	£3
Selling Price per Unit	£10
Breakeven Point (Units)	7,143 units
Breakeven Revenue	£71,430
Total Revenue Projection	£160,000
Total Cost Projection	£139,000
Profit Before Tax	£21,000
Growth Rate	67%

2.4 Marketing and Sales Strategy

Since “SweetSavor” will be selling speciality products targeting health and environmentally conscious customers in Birmingham with a focus on the organic and sustainable aspects, the main selling platforms will be through an easy-to-navigate website of the brand along with farmers' markets and retail organic food stores and cafes. The messaging and branding strategy will be focused on digital, content creation, and social media optimization with targeted SEO and paid advertisements (Sundaram, Sharma and Shakya, 2020).

2.5 Sustainability and Social Responsibility

The ‘SweetSavor' firmly believes that sustainability and social responsibility should be at the core of the company's philosophy and functioning. The organisation acts in a socially responsible manner practising sustainable beekeeping and ensuring that its honey production does not harm bees or other species of wildlife in the region (Gring-Pemble and Perilla, 2020). Sustainable, earth-friendly and recyclable packaging material is utilized to help solve some of the problems of society. The company also aims at the prevention or minimization of wastage during the production process and is involved in the promotion of the circular economy.

3 Customer Profile

3.1 Customer Persona

Customer Segment	Details
Demographic	- Age: 25-55 years old
- Gender: Both male and female
- Income Level: Middle to high income
- Education Level: College-educated, professionals
Geographic	- Location: Birmingham and surrounding urban/suburban areas
- Living Environment: Urban and suburban households
Psychographic	- Lifestyle: Health-conscious, eco-conscious, values sustainability and natural products
- Values: Prefers locally sourced, organic, and environmentally friendly products
Behavioural	- Buying Habits: Willing to pay a premium for quality and sustainability
- Product Usage: Regular buyer of organic food products, interested in natural health remedies
Customer Persona Example	Name: Sarah Thompson
Age: 34
Occupation: Marketing Manager
Income Level: £50,000 per year
Lifestyle: Sarah is health-conscious, practices yoga, and follows a plant-based diet. She actively seeks out organic and locally sourced products.
Shopping Preferences: Sarah prefers shopping at farmers' markets and organic food stores, and she frequently buys products online from sustainable brands.
Environmental Awareness: Highly concerned about environmental issues, she supports businesses that use eco-friendly practices and packaging.

3.2 STP (Segmentation, Targeting and Positioning)

STP Element	Details
Segmentation	- Demographic: Age 25-55, middle to high income, college-educated, professionals.
- Geographic: Birmingham and surrounding urban/suburban areas.
- Psychographic: Health-conscious, eco-conscious, values sustainability, prefers natural products.
- Behavioral: Willing to pay a premium for quality, regular buyers of organic and eco-friendly products.
Targeting	- Primary Target: Health-conscious and eco-conscious consumers in Birmingham who prioritize organic and sustainable products.
- Secondary Target: Local food enthusiasts, supporters of small businesses, and individuals interested in eco-friendly products.
Positioning	- Positioning Statement: "SweetSavor offers premium organic honey and beeswax products that are not only good for your health but also support sustainable farming and environmental conservation.

3.3 Value proposition – Bring the SDGs back into it

SDG 2: Zero Hunger

Contribution: The honey involved in pollination services assists the farmers in the area; thus, “SweetSavor” promotes food security in the area. The honey that is produced is a natural edible product that goes with the new knowledge on health and nutrition.

Good Health and Well-being as one of the Sustainable Development Goals;

Contribution: An array of “SweetSavor” products are all natural without any addition of artificial chemical and thus provides healthy and healthy option for people who are concerned with the content of sweeteners. This commitment to quality is one of the reasons our honey and beeswax complements the general health of consumers.

SDG 12: Responsible Consumption and Production

Contribution: Thus, it is possible to maintain a high level of production at the same time providing the company with an opportunity to use environmentally friendly production processes (Oláh et al., 2020). Micro was designed with sustainability in mind: our packaging is sustainable and we adopted consciously waste management, embracing circular economy principles. It also supports the notion of moderate or ‘responsible drinking' with products that palatable and healthy for the consumer and the environment.

4 Conclusion

4.1 Identify the SDGs you are addressing (reiterate the problem)

Through the course of its business, SweetSavor manages to tackle several of the UN's Sustainable Development Goals, namely SDG2 (Zero Hunger), SDG 3 (Good Health and Well-being), and SDG 12 (Responsible Consumption and Production). Bees that play a significant role in food security, pollination, and consequently agricultural production, and diversification of ecosystems are at a decreasing rate thus creating a problem for agricultural productivity. also, the growth in the general desire of consumers for organic or natural products reveals the regulation of people's lifestyles accompanied by the necessity of healthy and eco-friendly consumption practices.

4.1.1 Explain why your business will solve the problem you have identified

Many of these challenges can be addressed head-on by investment in “SweetSavor”. The business safely restores bees, promotes food production and assists local agricultural producers by providing pollination and clean beehives. The products that are being produced and sold organic such as honey and beeswax products offer the consumer healthier products instead of the processed food currently on the market due to the demand for natural products on the market (Sarkis et al., 2020). With these programs, “SweetSavor” encourages only consumption and keeps social harm to the barest level, and its operations in society and the environment have always been a plus to the environment.

4.1.2 Resources

• Beekeeping Equipment and Production Facilities: Essential for sustainable honey and beeswax production.
• Packaging Materials: Eco-friendly and recyclable options to align with our sustainability goals.
• Marketing and Sales Team: To effectively promote the brand and reach target markets.
• E-commerce Platform: A user-friendly website and online store for direct-to-consumer sales.
• Logistics and Distribution Partners: To ensure efficient delivery of products to customers and retail partners.

4.1.3 Financials Ask/estimation

• Total Startup Capital Required: £100,000
• Sources of Funding:
• Government Grant
• Bank Loan
• Personal Savings

Breakdown:

• Beekeeping Equipment: £15,000
• Production Facilities: £20,000
• Packaging Materials: £10,000
• Marketing & Branding: £7,000
• E-commerce Platform Development: £5,000
• Legal and Licensing Fees: £3,000
• Working Capital: £10,000
• Contingency Fund: £30,000

4.1.4 Measurable Outcomes (SMART Goals, KPIs, etc.)

Measurable Outcome	SMART Goal	Key Performance Indicator (KPI)
Market Share	Achieve a 10% market share in Birmingham by the end of the first year.	Market share percentage in the Birmingham area.
Revenue Growth	Generate £160,000 in revenue with a profit before tax of £21,000 in the first year.	Monthly and annual revenue; Profit margins.
Customer Acquisition	Acquire 1,000 new customers within the first six months.	Number of new customers acquired each month.
Sustainability Impact	Reduce the carbon footprint of packaging by 25% within the first year.	Percentage reduction in carbon footprint of packaging materials.
Monthly Sales Volume	Track the number of units sold each month to monitor growth.	Monthly sales volume (number of units sold).
Customer Retention Rate	Achieve a high retention rate, indicating strong customer loyalty.	Percentage of repeat customers.
Online Traffic and Conversion Rate	Improve online visibility and increase conversion rates from visitors to buyers.	Website traffic, conversion rate from visitors to buyers.
Pollination Service Adoption	Increase the adoption of pollination services by local farms by 20% each quarter.	Number of farms using "SweetSavor" pollination services each quarter.

5 References (You MUST use Academic references and Harvard Referencing)

BMG933 Business Plan Proposal Assignment Sample

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