The Upper Crust is a company specialized in the baking of pies based in Seattle,.
Washington. ... The S.W.O.T analysis covers the strengths, weaknesses,.
THE UPPER CRUST
BUSINESS PLAN THE UPPER CRUST PIES
SE AT TL E , WA SH IN G T O N
-Table of ContentsExecutive Summary………………………………………………………………………...Page 3
Company Summary………………………………………………………..…………..….....Page 4
Industry Analysis………………...…………………………………………………………Page 5
Market Share……………………………………………………………………………….Page 5
Products & Services……………………………………………………………………..…..Page 6
Pricing Structure……………………………………………………………………………Page 8
Market Analysis……………………………………………………………………………..Page 9
Budget Planning...…………………………………………………………………………...Page 10
SWOT Analysis……………………………………………………………………………..Page 11
Marketing………………………….………………………………………………………..Page 12
Budget Graph………………………………………………………………………………Page 13
Sales Strategy ………………………………………………………………………………Page 14
Plan of Action…….………………………………………………………………………..Page 15
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T H E U P P E R CR U S T
EXECUTIVE SUMMARY
The Upper Crust is a company specialized in the baking of pies based in Seattle, Washington. Our mission statement is we aim to revolutionize the baking business, make pies more accessible to customers, and to introduce a new family-owned business with innovative and delicious pies. Our objectives are to 1) Establish a working store for The Upper Crust Pie Shop, 2) Develop the strong presence in the community and city needed to support sales goals and 3) Develop a full menu by the second year of full operation. The management structure has Aunt Mabel, the owner, as the supervisor and primary baker along with four employees to help her run her shop each working part-time. The Upper Crust sells a variety of pies and will cater as well as deliver to both individual and large parties. The Upper Crust will sell a variety of pie sizes conveniently priced ranging from $3.50 a slice to $21 for a 12 inch pie. The primary market are women from age 1835 because Americans are finding life to be moving at a faster pace with less time to make homemade desserts and the secondary market being established restaurants that would help increase our customer base. The budget has been appropriately spread and carefully spent into different spending categories which cover every dimension needed to start a promising business. The S.W.O.T analysis covers the strengths, weaknesses, opportunities, and threats The Upper Crust will come in contact with. One of our biggest strengths is the fact that The Upper Crust is family-owned and operated which appeals to many people including our customers. A crippling weakness of The Upper Crust is the menu and its narrow market. Because The Upper Crust only sells pies it is unable to compete with more diverse companies who may sell not only pies but cookies and other pastries. An opportunity that is in The Upper Crust’s bright future is the expansion of the menu to be more inclusive to a diverse range of pastries to place itself up to par with the competition. The biggest threat The Upper Crust will face is the other bakeries such as Shoofly and The Seattle Pie Company and the reason they are so big a threat is because not only are they both family owned but they also provide a wider range of pastries. Marketing has been allotted a $1,090 budget which is more than enough to make The Upper Crust a family name with the use of unconventional media such as bumper stickers, fliers, banners, and social networking. All sales were forecasted beginning with the first full year of 2011. The sales are projected for three years following 2011 and are calculated with every expense required to properly run The Upper Crust. The Plan of Action is a three month procedure that has mapped out the best way to get The Upper Crust up and running. If the plan of action is properly executed, then it will result in the successful opening of The Upper Crust.
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COMPANY SUMMARY
The Upper Crust, a baking establishment based in Seattle Washington, specializes in the baking and distribution of various assortments of fresh, handmade, pies to the greater Seattle area. The Upper Crust will engage in the distribution of pies through interactions with individual people in conjunction with interactions with restaurant establishments thus creating a multi dimensional business and moving The Upper Crust toward achieving the maximum possible revenue and achieving the greatest Return on Investment (ROI) for Ms. Mable, owner and founder of The Upper Crust. Management Structure:
M I S S I O N S T AT E M E N T
Our aim is to bake and distribute delicious homemade pies. That we only sell pies that meet the highest standards of quality, and freshness. We aim to persistently provide our customers with superlative service through exhibiting hospitality, efficiency, and integrity as well as love in our work. We strive to have every customer who comes through our doors to leave impressed by The Upper Crust and eager to come back again. We aspire to consistently maintain a restaurant that is through and remarkable in its attention to every detail of operation, and ultimately, to be a giving member of the Seattle community and to use our restaurant to improve the quality of life in the Greater Seattle Area. OBJECTIVES
• • •
Establish a working store front for the Upper Crust Bakery Develop the strong presence in the community and city needed to support sales goals Develop full and seasonal menus by the second year.
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INDUSTRY ANALYSIS
Although the Seattle pie industry is an established and competitive one, modern lifestyle changes continue to allow for its steady growth. The pie industry is comprised of individual baking companies as well as large scale, mass production, frozen pie companies. In regards to the Seattle market the main competition to The Upper Crust would fall to Shoofly Pie Company, Seattle Pie Company, and frozen pies such as those made by Marie Calendars and Mrs. Smiths. Industry trends are important, and The Upper Crust is well equipped to accommodate the current interest in convenient, high quality deserts, at moderate prices.
MARKET SHARE
Market Share
Shoofly Pie Company Seattle Pie Company The Upper Crust Other
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PRODUCTS AND SERVICES
PRODUCT The Upper Crust specializes in the baking of pies. The array of pie flavors offered by The Upper Crust include, but are not limited to, apple, key lime, percent, pumpkin, banana crème, coconut, cherry, blueberry, and sweet potato. This selection of pie flavors is subject to addition based on season or holidays. In order to make The Upper Crust flexible and to appeal to more markets, The Upper Crust offers their product in 4” mini pies, 8” pies, 12” pies, and pie by the slice. So to ensure a dynamic advantage over the standard pie market, The Upper Crust offers all of their pies in a more health conscious, low fat and low calorie version SERVICES *Delivery- The Upper Crust hand delivers their pies to doorsteps of their greater Seattle consumers. By offering this service The Upper Crust is thus expanding their consumer market by the addition of the severely time constrained consumer. *Catering- The Upper Crust provides a pie catering service for individual people as well as for business events. The Upper Crust supplies its own tables, serving trays, plates, and other catering necessities, making a catering experience with The Upper Crust hassle free and enjoyable for both the consumer and the employer. The Upper Crust catering service provides outstanding catering service that consumers will look to enjoy time and time again.
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PRICING STRUCTURE
Pie Types
Slice
Mini Pie (4”)
8”
12”
Apple
$3.50
$5.00
$15.00
$21.00
Key Lime
$3.50
$5.00
$15.00
$21.00
Pecan
$3.50
$5.00
$15.00
$21.00
Pumpkin
$3.50
$5.00
$15.00
$21.00
Banana Crème
$3.50
$5.00
$15.00
$21.00
Coconut
$3.50
$5.00
$15.00
$21.00
Cherry
$3.50
$5.00
$15.00
$21.00
Blueberry
$3.50
$5.00
$15.00
$21.00
Sweet Potato
$3.50
$5.00
$15.00
$21.00
In order to capture the pie market in the greater Seattle area without the attribute of brand recognition we have strategically devised a market friendly pricing structure in order to ensure the smooth transition of The Upper Crust into the Seattle market. The first column of prices for pie by the slice was set off of Shoofly Pie Company base price for a slice of pie as well as the last column for the 12” whole pie set off of the Shoofly Pie Company’s price for their 9” pie. The mini pies and the 8” pies have been set in between the price points established by the high and low ends of our pricing spectrum. We have decided to base your pricing spectrum off of Shoofly Pie Company due to the fact that the Seattle area is already accustomed to paying within Shoofly Pie Company’s price range thus allowing for the smoothest transition into the pie market, and the greatest amount of revenue.
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MARKET ANALYSIS
The Upper Crust invites Seattle to emerge itself in the indulgence of home made pies. Strategically designed, the upper crust fuses old world luxury with modern day convenience. If executed to the fullest extent of its potential, the upper crust would be successful in enticing an abundant as well a diverse amount of the Seattle consumer market to partake in The Upper Crust experience. PRIMARY MARKET
Fundamentally, The Upper Crust would target the average American woman weather she be single, married, working, a housewife, or otherwise. The fundamental target age for The Upper Crust primary consumer would fall between eighteen and thirty-five years of age. With the primary target of The Upper Crust, you will find that The Upper Crust is truly meeting maximum output for its market. This is due to the fast paced lifestyle, that over the past years, America has gradually gravitated toward. The fact of today’s America is that people simply do not have time to cook home made meals every day, let alone cook an accompanying desert. This is not to say however that the American citizen is willing to settle for a convenient frozen dessert in lieu of a homemade dessert. This facet of American living has long been ignored and that is why a convenient, fresh, handmade pie will work in today’s America. Where many people would have simply skipped dessert due to the lack of high quality ingredients, freshness, or time constraints provided by the modern lifestyle, the consumer is now presented with another option which more closely rivals the homemade desserts that they crave without requiring the time commitments affiliated with them. By offering this service to this group of consumers, The Upper Crust is moving towards cornering a market where there has been a lengthy void. SECONDARY MARKET:
In addition to our Primary Market, The Upper Crust will also focus on sales to local businesses and restaurants. Allying the Upper Crust with local business will prove invaluable due to the fact that established businesses offer name recognition, an established customer base, and a steady flow of income into The Upper Crust. Being a new business, The Upper Crust must strive to establish a solid customer base as well as make a name for itself in the local market. By allying with local businesses a new avenue to accessing more of the Seattle consumer market becomes possible, and although the Seattle market might not know The Upper Crust name, by placing products in well established businesses, consumers draw parallels between the established restaurants they attend and The Upper Crust. Moreover, the customer bases at the partner restaurants become more easily transposed to that of The Upper Crust strictly do to exposure.
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BUDGET PLANNING
Facility
Price
Lease (1,700 SF ) Utilities Insurance Equipment Baking Oven(2) Hood(2) Mixers(2) Bar Sink Commercial Refrigerator Cash Register Ingredients Dough Sheeter Prep Table(s) Packaging Desktop Computer (Accessories included) Telephone Misc. (measuring cups and spoons, plates, sanitation supplies, shelves, etc.) Cash on Hand Grand Total
$10,500 $3,600 $1,500 Price $2,500 $2,200 $1,500 $630 $3,500 $400 $4,000 $1,750 $500 $1,000 $1,500 $100 $3,500 $8,320 $47,000
Budget Summary This budget plan allows for all of the responsibilities that need to be taken care of in order to have a successful business. The facility we have chosen is located at 4209 University Way NE, Seattle, WA. The main reason we have selected this location is that it is nearby some of the most well-known restaurants such as Cedars Restaurant and Dante's Steak & Grog and also that it is seated in the hub of your primary market. Along with the lease we have provided an estimated value of the utility and insurance fees. Included is an estimated cost list of the most important items you will need to help run your shop. We believe that this budget plan is the best plan to help you start your business and set it in the right direction.
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S.W.O.T ANALYSIS A S.W.O.T analysis (Strengths, Weaknesses, Opportunities and Threats) is designed to reveal your competitive advantages, analyze your prospects for sales, profitability, and product development as well as prepare your company for problems and allow for the development of contingency plans. Strengths 1) Family owned (Small Business)
Weaknesses 1) Only making pies will limit your market.
2) Catering (birthdays, meetings, etc.)
2) Not as well established as other baking shops.
3) Delivery Services 4) Free-Marketing Techniques (Facebook, Twitter, etc.) allow a connection with community. 5) Small businesses allow for better quality food. 6) Partnering with restaurants will bring an increase in customers and revenue.
7) Low fat pies will attract health conscious customers. Opportunities Threats 1) Franchising or expansion of family business into new cities, locations, etc… 2) Diversify menu towards creating cakes and other pastries 3) Selling at grocery stores. 4) Selling pies at the University of Washington.
1) Focusing on one product could be a risk since other shops are doing various pastries and cakes. 2) Shoofly Pie Company-established in 2004, has a Seattle customer base for pies. 3) Seattle Pie Company- Being family owned it brings its’ name and brand to the Seattle pie market.
The reason we feel that your business will be a success is because although you are at a disadvantage when it comes to being well-known and only producing pies, your strengths and opportunities greatly outweigh your threats and weaknesses. If you go according to our plan you will quickly build a strong base and develop a large customer following which in turn increase revenue.
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MARKETING
The budget allocated for marketing was $1,090. Because of budget constraints, we aren’t able to use conventional media to spread knowledge of your business. However we will be using more unconventional and personal approach to advertising using the following tools: •
•
•
•
•
Fliers: The fliers will be a quarter of a page (4x4”) in full color and precut. The flier will feature the company name, logo, slogan, and objective. These fliers will be distributed by family members and friends to help spread knowledge of your company. Bumper Stickers: The bumper stickers will be in the shape of pies and also a quarter of a page (4x4”). The bumper stickers will be featured on promotional vehicles such as those of family as well as your own. Window displays: The window displays will be used inside of the actual storespace on the window as well as free-standing. One of the three will be placed on the window to attract passer-bys and the last two will be used as in-store freestanding displays. Large Banners: The large banners will be used to attract the attention of those on the busy highway. With its stand-out colors and grandeur, the people will be sure to be enticed to learn more about The Upper Crust. Grand Opening Banner: This banner will be used to alert the public of the opening of your new store. Type of
Where to Purchase
Quantity
Cost
Advertising Fliers
M13 Graphics online
5000
Bumper Stickers
TheBumperSticker.com 1000 4x4 (inches)
$259 + $29*
Window Displays
123Print.com
3 29x52 (inches)
$82.95
Large Banners
123Print.com
3 24x96 (inches)
$146.90
Miscellaneous Total Cost
$200
$307.54 $717.85
Taxes Grand Total: 11
$64.61 $782.46
BUDGETING:
Budgeting
Fliers Bumper Stickers Window Displays
Large Banners Grand Opening Banner Miscellaneous
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S A L E S S T R AT E GY :
The Upper Crust plans on building customer base by providing great customer experience, customer feedback system, exceeding customer expectations, delectable products, attractive advertising, promotions, and affordably priced pies by creating a warm and friendly environment to appeal to our customers. Our goal would be for more and more customers to make The Upper Crust their destination for their baked goods. Sales Forecasting: 2011
2012 33,000
2013 $41,250
2014 $51,800
$177,500
$221,875
$239,625
$257,375
$10,500 $72,800
$10,500 $72,800
$10,500 $72,800
$10,500 $72,800
$50,000 $2,000
$62,500 $2,500
$67,500 $2,700
$72,500 $2,900
Net Income Accounts Payable
$44,000 $11,000
$55,000 $13,750
$59,400 $7,600
$63,800 $0
Real Net Income
$33,000
$41,250
$51,800
$63,800
Cash Flow Revenue Sales Expenses Fixed Rent Salaries Insurance Variable Supplies Maintenance
Competitive edge: The competitive edges that the Upper Crust will have are as follows: the best ingredients on the market including the freshest handpicked fruits, top of the line kitchen technology, great customer service with low and affordable prices, located in a Seattle hotspot not far from our customers, and strategic restaurant partnerships to help expand The Upper Crust customer base.
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PLAN OF ACTION
This plan of action will take approximately three months to execute beginning on April 26th of 2010 to July 25th of 2010. This plan is designed to get your business up and operational as fast as possible. With the proper and punctual execution of this plan, your business is sure to excel.
April 26th to May 7th: Start contacting suppliers and acquisition of rent space. May 10th to July 2th: Establishment and set up of workspace. June 21st to July 2th: Contact local restaurants for partnership. July 5th to July 9th: Grand Opening Advertising Campaign July 10th to July 11th: Grand Opening July 16th to July 18th: Promotional on-site Sampling July 23rd to July 25th: Promotional Sampling at Restaurants
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