Hadools Cookies Business Plan
Number of words: 3408
Table of Contents
|1.2 Business Opportunity||3|
|1.3 Competitive Strategy||3|
|1.4 Founder and Labor||4|
|2.1. Overview of the Baking Industry||5|
|2.2. Mission Statement||5|
|2.3 Retail Design||6|
|2.4 Form of Incorporation||6|
|2.5. Business Name||6|
|2.6. Business Location||6|
|2.7 Product Description||8|
|2.8 Company Position||8|
|2.9 Pricing Strategy||9|
|3.0 Market and Industry Analysis||9|
|3.1 Market Segments||10|
|3.2 Labor Requirements||11|
Hadools cookies is a cookie sole proprietorship located in salmiya, Hawaii. Besides, the company produces high quality and natural products in retail. The cookies includes chocolate chip oatmeal cookies and vegan peanut butter cookies. This categories means that it is an excellent opportunity to offer vegans great products without compromising their faith. Other natural products such as butter, honey cashew milk, flour, natural yeast, other add-ins such as walnuts, dates, cherries, etc. are used to make the cookies. The products are only meant to provide ultra-high quality and competitive products to enhance complete satisfaction to the end-user.
1.2 Business Opportunity
In the salmiya region, there are no many bakery companies providing cookies. Most business majors on cakes. The available companies use processed products to make their cookies. Therefore availing organic cookies is a very great opportunity. Additionally, globally, there is an increasing shift in diet to natural products due to health issues. Besides, there is a general increase in chronic diseases globally, which forces people to consume only natural products; therefore, this provides the company with a unique opportunity as well as experience to add Hadools cookies in the city bakery industry. The company will serve retail and utilize extensive marketing.
1.3 Competitive Strategy
Hadools cookies will provide the society with high-quality products made from local products as well as supplies. The company will also adopt the use of low prices on high-quality products to meet the current market need and secure a market share. Based on customer needs, the company will come up with the supreme taste, fine quality as well as unique and original design to ensure customer satisfaction.
1.4 Founder and Labor
Hadeel Behbehani will lead Hadools Cookies’ team as the owner and manager of the company. Hadeel Behbehani is a highly educated individual who possesses all the necessary skills to run a business and ensure success. He has a long works experience and bakery skills. Most of the skills acquired during studies and work experience are transferable to the start-up of Hadools Cookies. Moreover, she possesses excellent communication, leadership, and other critical skills for running a bakery company. The company is also planning to hire experts who already have experience in making cookies. For the human resource in the company, Hadools Cookies will employ two full-time bakers and two marketers to manage the marketing of the company products within the first five months. With well-talented employees, the company is expecting to make its profits within the first months. Via the combination of excellent leadership, motivated employees a solid business model, the company product demand is expected to rise rapidly.
2.1. Overview of the Baking Industry
The baking industry is organizations whose primary focus is on baked goods. These products consist of cookies, cakes, pastries, crackers, etc. Baking dates back to 2600 B.C. The Egyptians are revealed to use the earliest baking technique (Doolittle et al.). The Egyptians came up with a method to make the dough rise using the oven. From Egypt, baking spread to the Roman Empire via ancient Greece. Today, the baking industry plays a critical role in the economy of the United States (Doolittle et al.). Today, studies show that baking has become an industry and up to 2021 it is predicted to grow with an average of 5.5% per year (Oni the Spokestronaut). Also, looking at the general United States, the bakery products make up 2.1% of the gross domestic product, which amounts to $311.0 billion in the output of the economy. Moreover, up to 2021, retail sales of cupcakes and cakes are expected to increase by approximately 7.2% annually. This tremendous increase in sales is driven by the use of unique and innovative flavors, smaller sized cakes as well as creativity in the cake industry (Oni the Spokestronaut). The study also indicates that the average cash spends on bakery goods per family in Hawaii by 2021 is perceived to be $383.75. Most spending is on cakes and bread. Therefore, based on the above view, the bakery industry is poised to continue growing. Most of the expected growth will be linked to bakeries, which have invested in healthy cakes and flavor trends (Doolittle et al.). Moreover, the research also reveals that business which offers fresh products with high-quality ingredients at customer-friendly prices will be most successful over the next few years.
2.2. Mission Statement
To be the leading bakery company providing natural unique health confectionery products to the greater community and committed to moving human society to live in a free disease environment as well as continuous improvement for the company, our customers, and the environment while satisfying current and future generation’s needs.
2.3 Retail Design
The business is designed to offer retain services where customers walk-in from Monday to Saturday from 6 am to 9pm. On Sunday, the company will operate from 9 am to 2 pm. Some of the products offered include cookies with natural ingredients and which are favorable for vegans and people with chronic diseases such as diabetes and hypertension.
2.4 Form of Incorporation
Hadools cookie is a Sole proprietorship. As of 2020, it costs $25 to file a trading name with the state Department of Commerce and Consumer Affairs. Moreover, it is easy to start and run, therefore giving the company an advantage. The company will also need to meet health regulations for food production. Commercial insurance will also be sought as per the leasing agreements.
2.5. Business Name
2.6. Business Location
The business will be located in Salmiya city. The city is divided into 12 blocks, which are an excellent location for commercial activities. The city areas comprise of large foreigners population consisting primarily of people from the Indian sub-continent as well as other individuals who are not native to the Persian Gulf region (Young, 2014). The baking industry in the city has witnessed a very rapid growth of late (Bostic et al., 2015). The calm and beautiful environment of Salmiya city stimulates the consumption of fast foods throughout the year. With the limited supply of cookies with natural ingredients, there is a need to changed tactics and open a retail cake store and in the town. The company’s objective is to create a huge regular customer base. Therefore, the company will concentrate its marketing and business on residents, who will be the major customers to the company products. This strategy will create a healthy as well as a consistent revenue base, which will ensure the stability of the company. Besides, with the number of tourists visiting Hawaii increasing as per Khadivi & Ramakrishnan, 2016), tourist is expected to contribute almost 35% of the revenue. Furthermore, with several institutions being located in the area and the fact that students have of late adopted fast-food lifestyles, students will offer a favorable market for the products- approximately 28%.
High competitive and visibility products are essential to capture this market segment. Besides, looking at similar products offered in the area, their quality is low and often does not meet the vegan requirements. Local clients are looking for healthy and high-quality products that are provided in a conducive environment. They desire a classy, unique, and customer-friendly products. This view means sticking to the plan of offering several cookies flavors with natural ingredients would be a competitive strategy that will give the company an advantage in the city. Also, given that the city is large and the number of bakeries are limited, the business is in a better position to grow and develop. However, the cost of renting a house in the city is relatively high. Though with the increased population in the area, sales are perceived to be high, thus catering for the increased cost in rent. On the other hand, the maintenance of the business is cheap due to cheap and quality raw material. Labor is also cheap due to the increased unemployment in the area and increased graduates who are looking for a job opportunity. Therefore, the success of the business is high.
2.7 Product Description
Hadools cookies offer various cookies, all from high-quality Hawaii local products, to provide customers with the required taste and satisfaction. Each cooking is made to satisfy the clients even to the minute details. Besides, the bakery is more than perhaps any other type of food-serving business. However, it can only be judged by its products and presentation. Therefore, the company products decoration would be professional to achieve an eye for aesthetics. Besides, the company will provide freshly prepared cookies all times during operating hours.
Some of the popular cookies will include chocolate chip oatmeal cookies and vegan peanut butter cookies. The cookies will be made from healthy and natural products that promote health, especially to people with chronic diseases such as diabetes. Also, it is an opportunity for vegans to enjoy cookies without compromising their faith. Some of the ingredients will include butter, honey, which is perceived to be naturally occurring medicine. Vanilla, cashew milk, flour, natural yeast, chocolate chips will also be among the ingredients. Besides, other add-ins will include walnuts, dates, cherries, etc. Bearing that in the market, no organization provides similar products, the company will have a great advantage. The products are only meant to provide ultra-high quality and competitive products to enhance complete end-user satisfaction. Also, the company aim at providing its bakery products in a way that reflects the organization believes in the significance of client satisfaction.
2.8 Company Position
Recently, supermarkets dominate the baked goods market in the city. However, the company stands in a good position due to its ability to provide quality products.
Hadools cookies is set aside from its competitors in that;
- Regardless of many processed ingredients in the market, the company is only interested in whole, natural, raw, and local and organic ingredients to develop its products.
- Also, the company products contain extra detail which is ignored by competitors to cater for people with chronic conditions and increase their confidence in our products
- The company will also cater to the needs of our clients in every way possible, and their satisfaction will be our command.
- Furthermore, customer service and display of our products will be our number one priority.
2.9 Pricing Strategy
Regardless of high-quality natural ingredients, the pricing at Hadools cookies will be relatively lower compared to the typical store bakery. Based on the detail of special orders, the price of a cookie is set to be $1.5. However, the margin may increase with 1$ compared to the ordered ingredients and specifications. The price is expected to be low since the raw material will be purchased locally and on a large scale, which lowers the cost of production. Also, with a low number of employees, the price can be capped at the lowest.
3.0 Market and Industry Analysis
Studies indicate that vegans in the United States have grown from 1% to 6% between 2014 and 2017, which is a 600% increase (Lundahl, 2018). The study also indicates that there is a growing number of people who have interests in plant-based products though don’t identify themselves as vegans. The shift in dietary decisions plant-based is observed due to health and weight management. The fact that a large number of individuals also have animal protein allergies and food-related illnesses like celiac disease also supports this shift. Moreover, McGrady & Moss (2018), reveal that the burden of chronic diseases is rapidly increasing worldwide. From this view, every person is a targeted customer for the product. Customers include locals residing in the city and tourists from foreign countries. This increasing shift results from the fact that everyone is trying to check their diet or else struggling with health disorders, which requires healthy foods. Customers always need health products, therefore making a decision on what to buy, should be guided by ingredients of foodstuff. Cookies fitting in many diets, buying is based on individual taste and preference. Therefore, customers usually locate a store with great products to purchase. With this view, well-organized marketing is required. Consequently, the application of social media advertisements is critical to reaching these customers and making them aware of the company products. Thus, from this view, the company can make significant profits from the sales of natural cookies.
3.1 Market Segments
The market segmentation is divided into two categories, which include celebrators and vegans. Celebrators are individual who purchases products to celebrate either their achievements, birthday and many holidays or special occasions; this category comprises of young, old, middle-aged, and both men and women. On the other hand, vegans are all family members, especially those who consider eating healthy diets; away from animal products. Families can also invite their friends to enjoy baked products in a relaxed environment. Therefore, the two segments are critical for the company.
Some of the grocery stores which are competitive in the bakery industry in salmiya include Roy Shvartzapel, which is specialized in desert cakes, Walmart and Macrina Bakery. However, regardless of some of the company being international and employing the best employees, the quality of the baked products in these retail stores are either poor or do not suit vegan diets. Also, the products do not support the needs of people with health conditions. Besides, all the companies except Macrina Bakery produces their products at an outside location and transported to the city. All the company ingredients are also processed, which lowers the taste and quality of the product. Three Brothers Bakery is also another bakery company in the region, though it specializes in holiday, celebration and party cakes. However, other cookies are sold locally from small companies though they are baked with low-quality ingredients. The taste of the products available is only limited to chocolate or vanilla. Therefore, with the provision of these tastes and additional for customer choice can be a great advantage. Besides, the Great Harvest Bread Company is also competitive due to its small treats and cookies, which are sold within the organization premises. Lastly, Uptown Café is a notable competitor in the bakery industry since it’s primarily focuses on bakery and restaurant, though its products are of high prices. The café is also known to produce some cookies, though its bakery sector deals mostly with wedding cakes and other desserts.
However, Hadools cookies is advantaged due to its ability to provide natural and organic products, provision of extra detail which is ignored by competitors, cater to the needs of our clients and excellent customer service and display of our products.
3.2 Labor Requirements
With an understanding of the significance of human capital, Hadools Cookies will come up with an excellent management team. Hadeel Behbehani will lead the team as the owner and manager of the company. Hadeel Behbehani. She is highly educated with relevant work experience in working in a bakery. Most of the skills acquired during studies and work experience are transferable to the start-up of Hadools Cookies. Behbehani being a hardworking individual with the necessary skills to strive in the modern bakery industry, success is guaranteed. Behbehani also has excellent communication skills and customer service skills critical to running a company. Furthermore, the bakery will hire two full-time bakers with experience in baking cookies and two marketers to handle the marketing of the company products within the first five months. Profitability is perceived to be witnessed by the first months. Via combination of marketing, excellent management as well as a solid business model, the demand for the company products is expected to grow rapidly; hence the company gaining easy market penetration.
Approximately, the company is expected to make $750,000 within the first year. This profit is attributed to intensive marketing, the increasing shift to natural food products, and the need to avoid the risk of chronic diseases. Also, with the increase in family spending, the company out to take advantage of it to increase sales.
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