Study Questions • Identify potential opportunities. Combine your own personal experiences and creativity with external forecasts and trend analysis. How is the world changing with respect to new technologies? What is the impact of globalization on current Essay Example

Business ideas and implementation

Bacon-cheesecake brownies

Concept and vision

The idea to sell bacon-cheese cake brownies came after a discussion with a friend on the most viable venture to earn money while in college. Many students have been ordering cakes from bakeries outside college at a higher price. Moreover, it takes some time to be delivered and often what gets to the students are cupcakes, cookies and sweet rolls. After preparing samples of 20 cheesecakes at home, I was astonished to sell all of them within the twenty minutes. My college mates were craving for more. Having helped my mother prepare cakes while in high school, I soon realized that this is a business venture that will balloon into a big business. Making cheap and tasty cakes gives customers unparalleled satisfaction. So far, there are no intellectual property rights in the recipe for bacon-cheesecake preparation. Moreover, the market is still attractive because college goers fancy wild and creative cake menu.

Market Trend Analysis

Making and selling cakes falls into the bakery industry which is an attractive market in Australia. The segment is making cakes for sale to college and university students within Melbourne. Possible market research can be done to obtain demographic data of the target market such as age, income, education levels, psychographic characteristics, religion, and industry trends. The total industry sales for the last three years are as shown in the graph below.

As shown in the graph above, the market for cakes is growing compared to cookes and breads that is stagnating or falling. The expected growth for cakes is 16% in the year 2017 and it shows that the expectations/forecasts for the next three years will increase to 21% in 2021. As recipe and student population numbers is expectated to increase from 4,500 to 5,500 in the next three years, it is an opportunity to make more sales and revenues.

The pie chart shows that the market share for cakes is 28% and is expected to increase by 3% in the next two years as demand increases.

Customers and customer development

The target market for the bacon-cheesecake brownies is university and college students. This market has the following attributes;

• Age: 19-25 years

• Gender: Male/female

• Income: $1500-2500 per month

• Education level: college

• Marital status: Single/married

• Psychographic factors: Likes hanging out with friends, drinking and hiking. Listens to music often and watches favorite football matches.

This target segment likes creative and attractive recipes of cakes and confectionaries. They are fond of sweet recipes and would go an extra mile in purchasing the product. Currently, these customers are using ice cream and cupcakes and are willing to switch to the new product once they are satisfied with the price and the recipe. They pay more for creativity, taste and presentation. To reach this customer segment, I will engage them on Whatsup, Twitter and Facebook groups by posting the various assortments of cheesecake brownies. Besides, I will engage them through personal selling, referrals and word-of-mouth. This is also possible by distributing flyers across campus on the presence of new and tasty cakes.

Competition and positioning

Bakers within Melbourne serve this customer segment by distributing across town using vans. My fellow classmates having seen the possibility of this venture may want to try out the business in future. The strengths these competitors may include; favorable financial position to meet startup costs, support from family, suitable location for business and publicity. However, the same competitors will face challenges; lack of innovativeness and creativity in making attractive recipes, cyclic sales may frustrate first timers who are impatient, and the failure to read trends into what customers want in future. The major competitors in the market, and their market share, at the moment are; Swiftcakes (5%), Tymese cookies (8%) and Orion Bakers (11%). Orion bakers has the largest market share because it has been in existence for some time and has invested in equipment and marketing. However, these competitors are stagnating and choose to remain comfortable in their share positions. Barriers to entry include high publicity costs and licensing to operate the food business. Additional competitors may require innovative approaches to make inroads into the cake market. Partners and allies can team up to improve the supply chain and improve quality and efficiency in the industry.

Business model

To turn it into a business, I will borrow from my parents about $3,000 to buy oven, rent premises, meet delivery costs and pay some few employees. The expected payback period is five months. The major risk is technical which could include failure of equipment or poor relationship with employees. The hypothesis to be tested is: Bacon-cheesecake brownies are a great favorite of college and university students.

Learning and adaptation

I have learned that an idea is crucial for an entrepreneur and that walking through a business plan will ensure the idea is carefully implemented. I have also known that a business plan should analyze the product, market, competitors, and industry and future trends in business. I acknowledge that the idea of making and selling the bacon-cheesecake brownies is a true opportunity.