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1

Providing customers with a reviving hangover package; Eat, Drink, Revive.

Revive Business Plan 2015

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2

Contents

The Team 3

Executive Summary 4

The Business 5

Core Competencies 6

Aims 7

Market Analysis 8-9

Competitor Analysis 10

Suppliers 11

SWOT Analysis 12-13

PESTEL Analysis 14

Contingency Plan 15

Marketing Plan 16-20

Logistics and Operations 21-24

Location 25

Equipment 26

Future 27

Financial Highlights 28-29

Appendices 30-45

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3

Bryony Price – Managing Director

Bryony studied Business Management BSc and has

experience of leading teams through the role of Fresher’s

Welcome Crew team leader 2013 and 2014 as well as the

role of administrator on the Give it a Go executive

committee. Additionally Bryony achieved the Cardiff

Award where valuable employability skills were gained.

Hannah Varcoe – Marketing Director

Hannah studied Business Management BSc specialising in

marketing as well as undertaking work experience in John

Lewis’ marketing department.

Panayiota Charalambous – Operations Director

Panayiota studies Business Management BSc with

experience of working in brewery franchise restaurants in

Cyprus responsible for the smooth running of the service

and training of the staff in working in the highest possible

level of efficiency.

Donovan Beranger - Operations Director

Donovan learnt about logistics as part of the Business

Management BSc he studies and has developed strong

skills in this area of expertise. Besides, his experience in

management and sales have helped him get a good

understanding of operations management

Naftali Jacobs - Finance Director

Naftali studies Business Management BSc and has a broad

experience of working in sales. During his role as primary

liaison with an outsourced accountant, whilst in a

management position at Mooi Europe LTD, the practical

foundation on which his academic financial knowledge

was laid.

Our Team

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4

Executive Summary

Revive is a food, drink and remedy delivery service offering convenience

and efficiency to our target market. We hope to install a more accessible

service between our customers and their favourite fast food and drink

brands during mornings and afternoons.

Our market research has shown an interest and need for such a delivery

service in our chosen locations. We have built our opening hours and

menu around the primary research we have conducted to operate

during the most lucrative times to meet our customers wants.

From our financial account predictions we will need an initial investment

of £30,000 in order to set up the revive business model. According to

conservative projections, Revive will generate a net profit of £44,870 in

year 3.

Our future promises big things and we are optimistic about expansion to

many other student cities who also have a need for our service.

I would I would definitelydefinitely use this! This is use this! This is

something that something that everyevery student city student city should have” should have”

-- Gabriella Tallo, student.Gabriella Tallo, student.

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5

The Business

Our Mission

Providing customers with a reviving hangover package when they need it

most, with a focus on convenience and

Revive is a service offering delivery of food, drink and

pain relief to our target market of students. We are

based in Cardiff and are currently looking to serve

those in prime student areas such as Cathays and

Gabalfa.

Customers will be able to view our menu via the

website or app and order online and at pay via

PayPal. Customers choose a delivery slot to suit

them with the option to pre-order.

Market: As students ourselves we know our

target market, we are our target market. This

gives us access to invaluable information.

Products: We provide delivery of food from

companies which do not currently deliver,

filling a gap in the market which has thus far

been ignored.

Timing: We operate between the morning and

afternoon slots whereas our competitors

operate mainly in the evenings.

Our USPs

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6

In-depth knowledge of target market and popular trends among

students

Our team have all studied at Cardiff University gaining invaluable

contacts within the university who can aid and support us through our

business venture.

Contacts within this target market (students) meaning networking and

implementing a marketing strategy through positive word of mouth is

more accessible to us.

Two operating directors due to the importance of efficient operations

in a service such as ours. Having two operating directors enables us to

ensure this efficiency.

Our team members all have experience in customer-facing roles and

have excellent communication and customer service skills because of

this, meaning we can deliver an exceptional customer experience at

all times.

Our team have been good friends throughout university, meaning we

know each others strengths and weaknesses and skill-sets. We can

work in synergy, supporting each other in collaboration in order to

ensure the smooth-running of the day-to-day processes as well as

looking to the future.

Our Core

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7

Aims

Brand Identity: creating

a strong and recognisable brand

identity is one of our

central aims as we

believe the image of a

brand is vital to capturing

our target market and

increasing market share.

Product portfolio: To

differentiate in terms of

the products we offer

and to continually

update this product

portfolio according to consumer demand.

Growth: We aim to

continually improve efficiency and

effectiveness of

operations in order to

raise the capital to grow

into an established

business with the ability

to expand.

Objectives

To increase customer base by at least 10% per annum for the first five

years.

To increase product range based on customer feedback

To increase profits by at least 15% year on year

To expand our business to another four major university locations in the UK

within five years.

8

8 Market Analysis

Customer Analysis The following results are based on our questionnaire (see appendices 2.0 and

2.1) with 68 respondents taking part, taking into account their top answers.

Are extremely likely or very likely to use revive

delivery hangover service; with 31% moderately likely this service. 44%

60% Agreed on the top three product offerings; 22%

would order from McDonalds, 22% an English

breakfast and 16% from KFC.

This bar chart shows

the number of

respondents and the

factors they chose as

most important.

“McDonald’s was voted

the most valuable food

brand in the world in 2014”

“Average Brit is now spending

£1,320 a year on fast food

buying 12 meals every month”

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9

The most frequent nights out are

Wednesday, Friday and Saturday.

Therefore we are expecting to be

busier for a hangover delivery service

on Thursdays, Saturdays and Sundays.

Students in Cathays

7,785 3,110 Students in

Gabalfa

From the market research

we will operate from 9am-

3pm the most popular and

lucrative times for a

hangover delivery service.

“Spending power of students more than £10 billion, an

average student spending £5,000 each year”

50% of respondents would prefer to

pay £3 for delivery.

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10 Competitor Analysis

Papa John’s: Worldwide fast

food chain

Mon-Sun 11-11pm

Minimum order of £11

30-50m delivery

Just Eat: Franchised medium

sized company

Interface gathering all the

fast food deliveries in Cardiff

Dominos: Worldwide fast

food chain

Mon-Sun 11-11pm

Minimum order of £11

30-50m delivery

One Delivery: Franchised medium

sized company

Mon-Fry 4:00-9:00 pm and Sat-Sun

12:00-9:00pm

£3,50 delivery

Order system through website only.

Delivery of KFC, MCDonalds, Burg-

Just Fast Food: Franchised

Medium size commany

10-10pm

45 minutes delivery Not currently operating in

Cardiff but future threat.

Hangover fairies Cardiff: Small

company

Monday-Sat 10-1pm

£4 delivery

Facebook - E-mail - Phone

Delivery within the hour

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11 Suppliers

Choosing the right suppliers can be essential for a business to grow

and prosper. Therefore we have carefully selected a few suppliers

and will strive to build a long-term relationship with them in order to

maximise the outcomes of this partnership.

MCDONALD’S

As one of the worlds leading fast food

restaurants McDonald’s strives to achieve

an efficient, quality service whilst

upholding a friendly brand offering value

for money. They operate in 119 countries

around the world and serve an average

of 68 million people a day. Customers

have the option to dine in, take out or

utilise the drive thru with an exceptionally

fast service.

KFC

Kentucky Fried Chicken originates

from the United States and

currently operates in 118

countries. Focusing on customers

and efficiency. Our business will

mainly operate through their

drive thru service.

Café 37

Café 37 is a popular destination for

students and is located in the heart of

Cathays. Our business has chosen Café

37 as our breakfast supplier with the aim

to support local businesses. Our market

research has shown a strong demand for

breakfast items.

AVALON

Avalon is an online company

which offers wholesale discounts.

Our business is mainly interested

in a bulk purchase of pallets of

soft drink cans to stock in-house

for resale.

EZ First aid

EZ is a large first aid company offering medicine which can be purchased online

for resale. EZ provides Ibuprofen in packs of two tablets which is ideal for the

needs of our target market .

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Strengths:

Low operating costs of the business

reduces the chances to run into

liquidity issues.

Good knowledge of the market in

which we are operating will allow us

to identify and react quickly to

changes in the market.

The support offered by the

university will help us introduce the

brand to students and increase

market penetration.

Relationship selling: We get to know

our customers and build

relationship with them through

social medias and when meeting

in person, which will help us

improve our service to better

match their needs.

Operating in a small area of

Cardiff allows us to offer quick

delivery.

Weaknesses:

Competitors are able to offer

products of similar quality.

The business operates on

small margin and therefore

relies on volume. It is therefore

exposed to fluctuations in

demand.

Limited price flexibility of the

products we are offering and

potential price sensitivity of our

target customers.

The brand image and the

reputation will take some time

to become well established.

(http://academic.mintel.com/

SWOT Analysis

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Opportunities:

Word of mouth can play a

strong role in growing the

business and consolidating its

image given the fact that

students are very likely to

recommend our service via

social medias for instance.

The absence of similar

services specifically targeted at

students in other major cities in

the UK offers expansion

perspectives.

Growing interest in healthy

eating could be an opportunity

for us to enlarge our product

portfolio and offer healthier

food.

Threats:

Low barriers to entry on the

market.

The service provided can be

replicated by competitors

Established competitors are likely

to step in our market if it proves

popular.

Growing trends in the fast food

and casual restaurant markets

regarding healthiness could

emerge as a threat if it gains

importance in our target market.

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14

Political:

The government provides

financial support to young

entrepreneurs starting up a new

business.

Environmental:

Trends in the market regarding

the reduction of wastes and the

move towards greener products

are gaining importance.

The regulations concerning the

reduction of carbon emissions

specifically in cities are

strengthening. Moreover, the

government is putting pressure

on organisations to operate in a

more eco friendly manner.

Social:

The fact that most students do

not own a car means they may

be more likely to order from a

convenient delivery service.

Our research has shown that

many students frequently go

out drinking, highlighting a

market for a hangover

PESTEL Analysis

Technological:

The development of mobile

applications make the payment and

ordering process easier and more

convenient for both businesses and

customers. Moreover, the young

generations are feeling more

comfortable with sharing their personal

data on secure online platforms.

The use of social media as well as a

mobile application allows the creation

of a multilateral communication

channel on which customers can

provide feedback on the service they

receive and we, as a company, can

share information about promotional

offers and changes to our product

Economic:

The economy is showing

signs of recovery from the

crisis meaning customers

have more disposable

income

The government provides

financial help to students

under the form of grants

and loans which means

more money can be spent

on eating out.

Legal:

Laws regarding the distribution of light medicine such as Ibuprofen

have an impact on the quantity we are able to sell.

The storing and distribution of food and beverages in the UK is

subject to regulations. (http://www.legislation.gov.uk/

ukpga/1990/16/section/16)

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Contingency Plan 14

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16 Marketing Plan

Colour Scheme

We have chosen red, black and grey as our main colour

scheme. We chose red as red has been shown to depict

excitement and is often associated with food. The black

and grey colours give our brand a stylish look which we

feel resonates with our target market.

Font

We chose a font called ‘Chelsea Market’

as we feel this conveys a fun yet stylish

brand which people will remember.

Chelsea Market

Logo

We combined elements of our colour

scheme, font and our slogan along with a

simple image and design to create a

logo which is stylish and explains the

concept of our business.

Name and slogan

The name ‘revive’ was chosen as this is defined as ‘give

new strength or energy to’ which is what our service

aims to achieve.

The slogan ‘EAT, DRINK, REVIVE’ aims to convey what

we as a company offer.

The secondary slogan ‘Feeling hungover? Get revived!’

specifically targets the need we are looking to fulfil by

offering the service from morning to afternoon to

capture this market.

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Half a page per issue of Gair

Rhydd and Quench for a

year

Cost: £9990

Advertising in Gair Rhydd

Business Cards

We are looking at partnering with

Cardiff University to have our leaflets

included in Fresher’s Welcome

Packs

Quantity: 200,000

Cost: £250

Leaflets

Application

We have a contact who can create a basic

app from year 1 and we will commission a

designer to create a professional and more

functional app after year 3 (costing around

£31,000). Both apps will be available on both

Android and Apple app stores

Quantity: 1500

Cost: £50

Cost: £105

Maintenance:£20 per

month

(costs for app and

website)

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18

This is a prototype of what our

website will look like. Along with our

app this will be one of the main

ways of ordering so therefore

functionality is vital. We have

designed a simple to use ordering

process. Other features include a

feedback option, links to our social

media and payment through

PayPal.

Domain name cost: £12 per annum

Website set up cost: £100

Website maintenance cost: £20

monthly

Product category page

Here is the product category where

customers can select items from

‘Food’, ‘Drink’ and ‘Pain Relief’ (the

system will not allow customers to

purchase more than 16 pain relief

tablets to comply with law on sale of

medicines)

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19

Ordering page

Here customers choose products

and quantities to order. When their

order is complete they will be asked

to enter their details and create an

account for future purchases. Only

postcodes within the Cathays and

Gabalfa areas will be accepted.

Contact and feedback page

Here is where customers can

contact us and leave feedback

on our service and any

recommended improvements

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20

Social Media

Social media will be the channel

through which we engage with

our customers, keeping them

updated with our product

offerings as well as competitions

and promotional offers.

We will be engaging with customers

through Facebook and Twitter.

Positive word of mouth through

social media has been shown to

speed up early adoption and could

therefore have a significant impact

on our business.

21

21 Logistics and Operations

Suppliers - Stocks:

Inventories are performed every

Monday morning and orders

are put through the same day.

Stocks are delivered directly to

the office where they are then

sorted and stored.

Ordering and preparation Processes:

Customers either order through our

mobile application or via the website.

The ordered items, delivery address

and contact details are received on

the computer at the office.

If an order contains English breakfast,

a fax is sent to our supplier (Cafe37)

with details on the order (number of

items, time and other specifications).

Deliveries are allocated into slots of 25

minutes. Depending on the number of

orders (maximum five different orders

per delivery), the delivery vehicles are

sent out every 25 minutes.

Routes are calculated and

coordinated in the most time efficient

manner and transferred to the person

in charge of delivering the orders.

The delivery vehicle is loaded with

drinks and pills held at the office.

Delivery Process:

The different items are collected

at McDonald’s, KFC or Cafe37.

The delivery vehicle then heads

to the different addresses

following the route indication

provided.

The driver then returns to the

office.

Additional information:

40% of the orders are expected

to be placed between 11:00 am

and 1:00 pm. It is therefore the

time where orders will be most

concentrated.

Thursdays, Saturdays and

Sundays are expected to be the

busiest days of the week with an

estimated 75% of the weekly

21

23

23

24

24

This map shows the area of Cathays as well as our location, Café 37,

Mcdonald’s and KFC which are all situated within our targeted areas of

Cathays and Gabalfa. This means we will be able to provide a more

efficient service to our customers.

Area of Operations

Maximum estimated time for

25

25 Location

Address:

5-7 Museum Place

Cardiff

CF10 3BD

Rent: £2,160 per annum in an ideal

location £180 pcm

Service charge: £40 per month

Revive will be located in the heart of our

targeted area of Cathays and Gabalfa

enabling us to run our operations effectively.

The office will be where the equipment is

stored and where we process orders.

26

26

Equipment

Logo printed jackets x5

£160

Trousers x5

£35

Helmets x2

£110

Scooter x2

£998

Delivery bags x10,00

£250

27

27

In the future we aim to expand

into 4 further student university

cities. First locally to the University

of South Wales with 31,127 students

and then to the University of Bristol

19,470, Birmingham 30,700 and

Southampton with 24,135.

Service Differentiation

We look to vary our services

offering student delivery in

exam periods adjusting our

hours and product

expansion to snacks.

Franchising

We look to expand into further cities by franchising, focusing on areas most

densely populated with students. By using a franchise we are able to

expand by partnering with local businesses enabling us to effectively grow

with a lower impact on capital outlays, allowing for earlier investments

amongst other cities.

Product Differentiation

Offering healthier options to students

such as smoothies, soups, salads etc.

This will also help challenge any issues

regarding the growing trend of

healthier eating and the stigma

associated with junk food.

Delivery Vehicles

Potential change from existing petrol

scooters towards an more economically

viable option of electric scooters, reducing

carbon footprint and long term costs.

The Future

28

28

Second, the sales and as a result the

cash flow have large dips, especially

towards the end of each year. These

falls are expected as Revive’s

financial year follows the academic

year. As a result a low volume of

sales is expected in the last three

months of each year when most

students are returning home for the

summer break (smaller dips can be

seen around the Christmas and

Easter holidays).

Financial Highlights

The above graph shows the

forecasted death-valley curve for the

first three years of operations. There

are two main points to highlight in

relation to this graph;

First, the graph does not dip below

zero because of the £30,000 loan

included in the cash flow at the start

of year 1. Taking this into

consideration it can be seen that the

cash flow surpasses £30,000 (the

‘would be’ zero line without the loan)

in the middle of year 2 as can be

realistically expected from a

successful start-up.

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29

ROCE reaches 188% in year 3. At this point the

£30,000 loan will be paid back and future profits will be

reinvested into the business for expansion.

Gross profit margin maintained at around 52%

See appendices 1.0 to 1.8 for full financial workings

Equity Split

Bryony Price - 20% Hannah Varcoe - 20%

Panayiota Charalambous - 20% Donovan Beranger - 20%

Naftali Jacobs - 20%

In the summer months we are planning on working with

Cardiff University’s housing department to target those

who rent a room in the university’s accommodations

(foreign students, English language students and

professionals). In addition, students from other universities

who are returning to their homes in Cardiff will also be

targeted to generate sales.

Appendix 1.0 - Cash flow forecast for the year 2016 28

Appendix 1.1 - Projected income statement and Balance Sheet 29

Appendix 1.2 - Cash flow forecast 2017 30

Appendix 1.3 - Projected Income Statement and Balance 31

Appendix 1.4 - Tax Computations 2017 32

Appendix 1.5 - Cash flow forecast 2018 33

Appendix 1.6 - Projected Income Statement and Balance 34

Appendix 1.7 - Tax Computations 2018 35

Appendix 1.8 - Revive Account Notes 36

Appendix 2.0 - Questionnaire Page 1 37

Appendix 2.1 - Questionnaire Page 2 38

Appendix 3.0 - Ethical Approval Page 1 39

Appendix 3.1 - Ethical Approval Page 2 40

Appendix 3.2- Ethical Approval Page 3 41

Appendix 4.0 - Accounting Sign-offs 42

Appendix 4.1 - Accounting Sign-offs 42

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46 Appendix 4.2 - Accounting Sign-offs

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