Business Plan

(SCHOOL BASED ASSESSMENT)

Name of Student : Israel Desir

Center : 090007

Teacher : Ms. Gibson

School : The Bishops’ High School

Description of the Business

1. Name and nature of the business

‘Citrus Galore’ is aims to become a reliable retailer of fruit and citrus products in the

communities of Nandy and Republic Parks. In doing so, we intend to introduce the presence of

a health-oriented produce industry in the area.

2. Mission Statement

Our mission is to provide the fast, effortless delivery and availability of quality produce to the

people of the district.

3. Objectives

a. To maximize the profitability of consumer-centered retail by meeting the demand for

fresh, accessible, and affordable fruit with impeccable customer service.

b. To institute an efficient, nutritious lifestyle to the community augmented by

accountable, ethical commerce.

4. Location of business

The business will be located opposite the Eccles Nursery School by the crossroads of

Collinswood avenue.
(NB. The business is shown by the red location vector)

Section of Map showing the location of the business

 Explanation of location

This location capitalizes on the accessibility of produce to the consumers of these

neighbourhoods. Moreover, the business thrives due to the monopoly it gains, and can easily

create loyal customers due to the convenience of our timely delivery service to the residents of

the community.
Justification of business
Secti on 1 - Market research
a. Target Population

Our target population are the consumers of fruit in the communities of Republic and Nandy

Park. These are the health-conscious residents such as the elderly; who seek acquire nutritional

nourishment for the maintenance of their immune systems, especially during the presence of

the COVID-19 pandemic.

The neighbourhoods have a combined populace of about 5000 residents.

b. Market segmentation

Buyer Persona and Purchasing Habits

The customers of ‘Citrus Galore’ primarily come from the neighbourhoods of Nandy and

Republic Park and can be broken down into 2 main sections:

Elderly Middle aged

60% of our customers are above the age of 55

65% are women

85% are middle or high-income families

70% are Indian

75% of customers buy in bulk with each purchase (> $500)

Delivery services are used for 80% of our orders in 2020

c. Price of similar products from competitors

Product Nearest Competitor’s Price from Citrus Galore

price

Oranges $260 per 3 $240 for 4

Lemons $120 per 5 $140 for 6

Limes $120 per 5 $140 for 6

Tangerines $220 for 4 $200 for 4

Guavas $240 for 4 $280 for 5

Juices Does not sell juices $100 - $240

(Small to Large)

Jams Does not sell jams $200 for small

$320 for large

Delivery Does not provide delivery $20 - $60 per order

Depends on distance within

the communities of Republic
and Nandy Park

Table comparing prices and fees from Citrus Galore and the nearest competitor

d. Availability and price of substitute goods

 Average price for product or Possible substitutes on the

substance market

Limes and Lemons Processed lime and lemon juice

$140 for 6 $600 per 8oz

Oranges Processed orange juice

$240 for 4 $600 per 8oz

Citric Acid Ethanoic acid

Found in our citrus fruits Found in vinegar

$420 for 18 lemons $440 per gallon

Table showing comparisons between the prices of products and substitutes

e. Sales Forecast
Sale forecast = units per month x price per unit
 Item Calculations Forecast for product

Lemons 400 lemons x $25 per lemon $10,000

Limes 400 limes x $25 per lime $10,000

Oranges 200 oranges x $60 per orange $12,000

Tangerines 200 tangerines x $50 per $10,000

tangerine

Guavas 200 guavas x $56 per guava $11,200

200 small juices x $100 per $20,000

Juices juice

120 large juices x $240 per $28,800

juice

40 small jams x $200 per jam $8000

Jams
40 large jams x $320 per jam $12,800

Total $122,800

Table showing forecast for one month of sales

f. Data Analysis
 One month forecast for our produce

$10,000
$20,800
$10,000

$12,000

$10,000

$48,800

Lemons Limes Oranges Tangerine Juices Jams

Table displayed ratios of sales for the produce

Estimated amount of Sales for 2020

$140,000

$120,000

$100,000

$80,000

$60,000

$40,000

$20,000

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Table showing estimated sales for the first year

 Estimated amount of Sales
Months for 2020 Reasoning
reduced profits due to costs
January $40,933 of starting business
increased funds for produce
February $61,400 due to last month’s profits
The presence of the corona
virus increased delivery
March $62,935 services
Increased produce due to
increased funds and the
April $122,800 citrus season
Decreased availability of
produce due to the end of
May $82,100 citrus season
Increased orders gained from
June $90,240 community trust
Stasis due to end of citrus
July $90,240 season
Stasis due to end of citrus
August $90,240 season
Stasis due to end of citrus
September $90,240 season
Produce becomes more
available as citrus season
October $97,000 begins to recommence
Citrus season fully
November $124,846 recommences
Citrus season fully
December $125,870 recommences
Table showing reasoning for the first-year sales forecast
g. Industry outlook
The neighbourhoods of Nandy and Republic park are areas of high density with many middle-

aged and elderly occupants. A perfect market with a high desire for citrus fruits due to their
nutritional content. Moreover, the presence of the corona virus makes the demand for such

nutrition rise. Thus, ‘Citrus Galore’ has a stable place in the market due to the ease it creates to

obtain such nutrition with our delivery services.

Secti on 2 – SWOT Analysis

- Strengths and Opportunities

1. ‘Citrus Galore’ has a monopoly on the neighbourhoods of Nandy and Republic Park.

2. Due to the COVID-19 pandemic and the ease of the service, our delivery orders are in high

demand.

- Weaknesses and Threats

1. Profits considerably drop when the end of citrus season arrives

2. Availability of produce considerably drop when the end of citrus season arrives

- Justification for location

This location benefits by capturing most of the inhabitants in a 1km radius from the business. It

has a monopoly over this area and is easily able to deliver to the residents.

Marketing Plan
Products and services

 Main features of our services

 1. Bundles

Buying a certain number of products at once rewards the consumer with a reduced price.

2. Delivery

Delivery is one of our services at ‘Citrus Galore’. It is inextricably close to our bundles. This is because
buying a certain number of products at once also rewards the customer with free delivery.

 Branding

Picture of our business logo

Our slogan is “Fresh, Nutritious, Delicious”. This brand will be placed on all our jams and juice cup

packaging.

Pricing strategy and Distributi on Channel

Our pricing strategy is the “Penetration pricing strategy”.
This is when price is set artificially low to gain market share quickly and is the best choice
because our business is now blooming.
 Bivariate graph showing details of penetration pricing

Our goods come from a sale through a “retail channel”.

This minimizes distribution costs through an agent or wholesaler and maximizes customer
loyalty due to immediate gratification and contact with our friendly staff.
Moreover, the retail channel extends the geographical reach of our outlets in an area. This allows
goods to reach customers more efficiently whilst growing our business.

Picture showing the details of various marketing strategies

Promoti on Mix
Our promotional strategies include:
  Direct Marketing

 Public relations
Public relations help an organization and the public adapt mutually to each other.
[ CITATION Tur01 \l 1033 ]

Put simply, public relations elicit positive perceptions about an organization from the public.
This is done by sharing messages through already existing channels.
Channels to be used by “Citrus Galore” include:
1. Media relations
This focuses on circulating messages via the media to manage how your business is portrayed
using media statements, fact sheets, on-site media tours, and social media to gain the attention of
journalists who report in your market.
2. Community relations
This involves building good relationships with the members of your community to build
customer loyalty. This includes engaging with local stakeholders, engaging with local
institutions, and participating in local development programs.