2. 2
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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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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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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 wouldI would definitelydefinitely use this! This isuse this! This is
something thatsomething that everyevery student citystudent city
should have”should have”
-- Gabriella Tallo, student.Gabriella Tallo, student.
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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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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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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.
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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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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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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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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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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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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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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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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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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.
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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
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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
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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.
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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
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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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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.
