Presentation1

Slide 1: 

Hi! My business idea is a range of unusual flavours of calorie free gum. The range of flavours includes three chocolate varieties – dark, white and milk, alcoholic drinks flavours – beer, amaretto and wine, and pizza, cheese and mint chocolate chip.

Slide 2: 

The mint chocolate chip flavour will allow the business to compete more directly with the mint flavours already provided by other companies. These flavours were decided based on the results of a survey conducted on young adults through surveymonkey.com. As the business grows, the range of flavours will increase based on customer suggestions.

Slide 3: 

The business will be very customer orientated. Each flavour will be targeted towards the most appropriate consumer. The alcoholic drinks range, as well as the pizza and cheese flavours, will be targeted mainly towards students and young adults.

Slide 4: 

The chocolate flavours will be targeted towards women, who are more likely to be calorie conscious, as well as children.

Slide 5: 

Market Environment The unique selling point of this product is that there are no flavours like these currently available anywhere in the UK. The closest unique product on offer the UK is Cadburys Trident splash which contains a combination of 2 fruit flavours in one piece of gum

Slide 6: 

Cadburys and Wrigleys currently hold 60% of the market share for chewing gum and are therefore the two major competitors. Competitors’ actions, particularly in producing new products, will be closely monitored.

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On introducing the product we will use a penetrative pricing strategy in order to form a customer base and attract people away from the competition. The product will be distributed to supermarkets and newsagents, as well as vending machines in many city centre locations.

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Our raw materials will be sourced as cheaply as possible without compromising on quality. As the business grows it will be able to reduce supply costs as economies of scale can be established.

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Some of the social factors affecting the business include the consumer movement into healthy lifestyles. The gum will be calorie free to comply with this trend. We will also fulfil our social responsibility of providing fully recyclable packaging and disposing of waste in an environmentally friendly way.

Slide 10: 

This relates to physical factors of the market environment. In order to be an environmentally friendly company, the business will have low energy consumption and keep pollution to a minimum.

Slide 11: 

It can be hard for companies to respond the continuously changing technologuy . In order to have the most technologically advanced machinery we will rent our machines from a company which replaces them as they become outdated. This can provide an advantage over competitors who may not have the latest technology.

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Economic factors affecting the business will include taxation levels and interest rates, which can fluctuate, affecting sales of luxury goods.

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The economic market structure of the chewing gum industry is an oligopoly where there are just a few main firms in the market. Although it can be difficult to survive in this type of market, the product is unique and prices will be similar to those of the competition.

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To ensure that the business is complying with legislation there will be a department designated to checking that all business activity is legal and to also deal with issues such as patents and copyright.

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Organisational Structure The organisational structure of the business will be fairly flat to begin with and will gain levels as the business grows. The structure will consist of a managing director, then a range of departments including research and development, accounts, marketing, sales, production, legal, human resources and customer services.

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The business will be funded by my savings as well as loans from family and friends and a grant provided by an organisation such as business link.

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The majority of the start-up capital will be spent on a large marketing campaign. We will target customers by advertising individual flavours in appropriate places for example alcoholic drinks in nightclubs. Other general locations will include magazines and cinemas as they appeal to young adults.

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Promotions will be accessible via social networks such as facebook and twitter and free samples of new flavours will be available in universities. In order to provide flavours desired by customers we will conduct continuous market research using internet surveys and polls conducted via facebook .

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Research and development will be very important and a large proportion of the budget will be invested into it. It is a goal of the business to continually produce new exciting flavours to maintain customer interest .

Slide 20: 

Production will be mainly machine based, and all members of staff will be responsible for checking product quality. As the business grows, production may be expanded off shore to an eastern European location where production would be cheaper.

Slide 21: 

The business will begin on a small scale but is expected to expand rapidly as the product is so exclusive. This business would be so successful it would obtain a large portion of the market share, bringing it head-to-head with the major multi-national companies which currently dominate the market.

Slide 22: 

Thank you for listening to my business idea!