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  • Subject area(s): Marketing
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  • Published on: 14th September 2019
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Table of Contents

Executive Summary……………………………………………………………………………….3

History and Background……………………………………………………….…………………..3

Financial Statement….……………………………………………………….……………….…...4

Goals and Objectives………………………………………………………………………………4

Products Being Offered……………………………………………………………………………5

Location of Our Business………………………………………………………………...………..5

Form of Ownership………………………………………………………………………………..5

Management and Staffing…………………………………………………………………………6

Marketing………………………………………………………………………………………….7

Financial Plans………………………………………………………………………………….....8

Works Consulted…………………………………………………………………………………11

Executive Summary

Sugar High Ice cream shop will offer high quality ice cream at an affordable price. Because of the sweet tooth of college students and regular residents of Ruston, opening an ice cream shop will be very profitable. All of the managers agree that a general partnership will be the best fit for our business. To establish our general partnership, we will need to submit paperwork to be filed at the Louisiana Secretary of State. Our ideal location would be in downtown Ruston, Louisiana. For the first year of business we will have a gross income of $296,592 profiting $60,063. For the second year we plan to have a net income of $120,000 and then the third year a net income of $180,000. Our total cost to open Sugar High Ice Cream shop will be $75,000 including the $30,000 contingency plan. We will be taking $52,500 out in loans and the other $52,500 from personal investments.

We will service a multitude of flavors and different types of frozen sweets. We will hire college students to work part-time in our store. Our focuses will be providing low prices, great quality, a nice atmosphere, and consumer convenience.

Sugar High Ice Cream Shop plans to market to the public by means of a booth at the Maker's Fair, advertisements at local high schools and Louisiana Tech University, floats for the Peach Festival, posting on social media, word-of-mouth advertising, hanging flyers, and giving out free samples.

History

Ice cream is a sweet treat enjoyed by families and friends. It is enjoyed year-round, but especially in the summer. It is the perfect cold snack on a hot, sunny day. It can be consumed in various forms, such as: scoops, shakes, malts, splits, and sandwiches.

 Before WWII, ice cream was rarely consumed in the home and was primarily a commercial product. After WWII, supermarkets started offering ice cream in bulk due to extensive freezer capacity. This new offering led to a spike in the ice cream industry.

Those who could not afford extensive freezer capacity had to result to confectioners, drug stores, and fountains. Going with friends or family to get this sweet treat became a regular activity. In the late 18th and early 19th century, residents of large north-eastern cities liked to eat ice cream in private parks.

Ice cream shops have been an American tradition since 1766, our birth year. The first ice cream shops were described as having gas lit gaudy mirrors. The shops looked like run-down casinos. This appearance was one of the reasons that ice cream shops were so popular. Costumers came for the ice cream, but stayed for the atmosphere.

Financial Statement

The approximate cost for opening our ice cream shop will be $75,000. We plan to have $105,000 to start the business. We have set aside $30,000 as a contingency plan. We will gather funds by taking a $52,500 loan from the bank and collecting the other $52,500 between the four managers personal funds. This way we will not start our business in a hole of debt.

Goals and Objectives

Our short-term goal is to have a net income of above $50,000 and to build a strong customer loyalty platform.  Our medium-term goal is to have enough profit to give all managers a significant raise.  Our long-term goal is to franchise our business to different locations such as Monroe and Shreveport. We would also like to explore the idea of adding non-traditional ice cream treats, such as malts, shakes, ice cream floats, banana splits, and more.  We would also like to include sugar free and vegan ice cream options.

Products Being Offered

a. Ice cream

i. Flavors

1. Vanilla, Chocolate, Red Velvet, Cookies and Crème, Cookie Dough, Strawberry, King Cake, Coffee, Rainbow Sherbet, Birthday Cake, Banana, Pecan and Walnut, German Chocolate, Pistachio, Rocky Road, Mint Chocolate Chip, and Cheesecake.

ii. Toppings

1. Sprinkles, Gummy Bears, Gummy Worms, Almonds, Peanut, Oreo Crumbs, Cookie Dough, Fresh Fruit, Coconut Flakes, Reece's, Marshmallows, White Chocolate Chips, Cherries, and Toffee.

iii. Sauces

1. Caramel, Chocolate Fudge, Nutella, Strawberry, Raspberry, Blueberry, and Butterscotch.

Location of Our Business

Our ideal location would be downtown Ruston in the shopping center. When people go shopping in downtown Ruston, they tend to park somewhere and walk to most of the stores. This would provide a great opportunity for our ice cream shop because it provides a time to just sit down, relax, and indulge in delicious ice cream.

Form of Ownership

Sugar High will be formed through the creation of a general partnership. Having a general partnership will allow each partner to have unlimited liability concerning the possible debts of the ice cream shop. Since all partners have an equal say in the shop, we are all responsible for collaborating and carrying out all shop duties. Each partner will own 25% of the shop.

Management and Staffing

Ms. Stevie Iseral will oversee the day-to-day management of Sugar High Ice Cream Shop. Ms. Mackenzie Westmoreland will oversee the floor and kitchen areas. Ms. Gabrielle Juneau will manage the finance and purchasing departments. Mr. Noah Wheeler will oversee the marketing and customer relations departments.

b. Stevie Iseral, General Manager

i. Education: Stevie has obtained a master's degree in Business Management from Louisiana Tech University.

ii. Duties: New hires, scheduling; ice cream, ingredients, and toppings; and daily operations.

c. Mackenzie Westmoreland, Manager of store's floor and kitchen area

i. Education: Mackenzie has obtained a master's degree in Accounting from Louisiana Tech University.

ii. Duties: daily operations; kitchen procedures; hygiene of equipment, assuring the overall excellence of the shop

d. Gabrielle Juneau, General Manager of Finances and Payroll

i. Education: Gabrielle has obtained a master's degree in Finance from Louisiana Tech University.

ii. Duties: creating financial statements, ordering and inventory, managing employees' pay and raises.

e. Noah Wheeler, General Manager of Marketing and Customer Relations

i. Education: Noah has obtained a master's degree in Marketing from Louisiana Tech University.

ii. Duties: creating new promotions and advertisements for the company and creating strong relationships with customers.

f. Staff

i. Four managers and a staff of ten employees. There will always be one manager on site for each shift. The schedule will be posted weekly accommodating the employee's needs.  There will be two employees on the clock for each shift. The employees do not need any prior job experience, but they will need to pass a drug test and background test prior to being hired.

Marketing

Our prospective customers will be anyone who is interested in enjoying an affordable sweet treat. Ruston, Louisiana is relatively small, containing about 22,000 people plus students from Louisiana Tech University. Our competitors in Ruston are Eskimo's and Orange Leaf. We plan to surpass competition by providing affordable prices and discounts for college students, military, and senior citizens. Our hours are 11 a.m. to 12 p.m. which will attract college students looking for a late-night snack.  Another quality of Sugar High that will draw in customers in the door is our old-time theme, but once they taste our ice cream, they will be hooked for life. Due to the direct competition, we will have to offer amazing quality and low prices to draw in customers. The average cost of an ice cream will be around $3.50.

Sugar High will provide customers with high quality ice cream that will be received weekly. We will order or place orders at the end of the week for upcoming inventory needs. We plan to promote our ice cream shop by hanging flyers, posting on social media, giving out free samples, and advertising through word of mouth. Our website will be available online for anyone who wants to look up our pricing and other information about our shop.

Financial Plans

Loans will consist of $52,500 and the other $52,500 will come from personal investors. If needed we will take out more loans, because our starting value of loans is very small. To be able to open our shop, we will need to purchase equipment to store our products in. We also are setting aside $30,000 to be prepared for contingent disasters, like broken equipment, theft, natural disasters, and lawsuits.

Startup Costs

Monthly Rent……………………......………………………………………………………$1,200

Construction Cost…………………...……………………………………………………..$30,000

First Food Inventory………………………………………………………………………...$2,500

Décor………………………………………………………………………………………...$6,000

Equipment………………………………………………………………………………….$15,000

Furniture……………………………………………………….…………………………….$8,000

Licensing and Insurance Deposit………………….......…………………………………….$8,000

Marketing……………………………………………………………………………..……..$1,500

Payment Technology………………………………………………………………………..$1,000

Opening Event………………………………………………………………………………$1,000

Total Cost to Open………………………………………………………………..…...…...$74,200

Contingency Plan………………………………………………………………………..…$30,000

First Year Monthly Cost

April

Salary……………………………………………………………………..…………..……..$8,666

Regular Staff - $7.25 per hour- $4,466 a month

Financial Manager - $800

Marketing Manager - $800

General Manager - $900

Kitchen and Floor Manager - $900

Inventory………………………………………………………………………………….…$8,000

Building Costs……………………………………………………………………………….$2,750

Rent - $1,200

Electricity - $1,000

Water - $100

Internet and Phone - $250

Replacements - $200

Marketing……………………………………………………………………………………...$300

Total Costs…………………………………………………………………..……………..$19,716

Gross Income………………………………………………………………………………$24,716

Net Income….………………………………………………………………………..….…..$5,000

May- March

Salary………………………………………………………………………………..……..$8,666

Inventory………………………………………………..………………………………..…$8,000

Marketing…………………………………………………………..…………………………$300

Building Costs…………………….…………………………………………………………$2,750

Total Costs…………………………………………………………………………..…..…$19,716

Gross Income……….…………………………………………………………………...…$24,716

Net Income………………………………………………………………………….…...…$5,000

First Year Total

Total Cost…………………………………………………………………………………$236,529

Gross Income……………………………………………………………………………..$296,592

Net Income……………………………………………………………………………….$60,063

Second Year Total

Total Cost…………………………….…………………………………...………….….$236,529

Gross Income……………………………………………………………………………$356,529

Net Income………………………………………………………………………………$120,000

Third Year Total

Total Cost…………………………………………………………………………..…….$235,529

Gross Income……………………………………………………………………………..$415,529

Net Income…………………………………………………………………………..……$180,000

Works Cited

Whitaker, Jan. “Ice Cream Parlors.” Restaurant-Ing through History, 25 Mar. 2016, restaurant-ingthroughhistory.com/2012/08/19/ice-cream-parlors/.

Williams, Neil. “Opening an Ice Cream Store -.” Ice Cream and Frozen Yogurt Store Equipment -, 23 July. 2010, turnkeyparlor.com/opening-an-ice-cream-store/

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