Sales of Fair Trade products have risen 20% each year since 2000, and the aggregate annual net retail value of Fair Trade products in Europe alone is now over €660m (? 456m).
The business’ primary target market will be consumers within the 25-44 age categories, in the social groupings AB to C1, which research has identified as being the earliest adopters of Fair Trade products. The business will be located in a prime retail location to attract customers shopping in other nearby premium and independent retailers.
The business will operate with sole trader status and be run by myself, The Owner, with voluntary assistance from family members at peak times such as Saturdays. 2 Company Vision The Company is dedicated to becoming a premium retail brand and the first choice for socially aware shoppers. The business will provide exceptional Fair Trade products made from ingredients produced in the ‘third world’, supported by a personal passion for Fair Trade to inform and enthuse customers.
The Company aims to gain a reputation as the place to become informed about and purchase Fair Trade products that fit into the socially aware consumer’s lifestyle, and stimulate new demand for Fair Trade products. The company will aim to take advantage of the excellent PR opportunities which such a unique concept could attract, and drive sales through word of mouth and other marketing routes. The long term vision is to become a brand synonymous with quality and uniqueness, become the No. 1 Internet retailer of Fair Trade products, and expand into a chain of shops throughout the country. Product/Service Description 3. 1 Products A diverse range of goods will be sold in store and through the website, all carrying the FAIRTRADE mark to reassure consumers that the product meets five key guarantees as set by the Fairtrade Foundation. There are over 1500 certified products which carry the FAIRTRADE mark, and both food (including organic) and non-food products will be selected for sale. Food items for sale in-store will include: •A small selection of fruit, including pineapples, coconuts and bananas (in-store only).
The Business plan on Management Ability Business Company Corporations
With the growing number of corporations taking over small businesses, and the belief that becoming a proprietor is associated with being wealthy, one must decide which type of business to become involved with. There are several differences between these two types of business. A corporation is a business organization having a continuous existence independent of its members (owners) and power and ...
Chocolate, including a wide range of products from the brands Dubble, Divine, Traidcraft Rico and Green & Black’s. These will include seasonal variations such as Easter eggs. •Cocoa/hot chocolate, carrying labels including Clipper, CocoDirect, Day Chocolate Company, Green & Black’s, and Traidcraft. •Instant and ground coffee, the biggest selling Fair Trade products. Brands sold will include Cafedirect, Clipper, Nescafe Partners Blend and Percol. •Tea, as with the majority of coffee producing brands above, plus Teadirect. •Sugar. •Fruit Passion fruit juice, non-chilled. Herbs & Spices – mostly organic, including vanilla pods, cinnamon, peppercorns, cloves, ginger, and turmeric. •Honey, marmalade, preserves, chocolate spread, jam and chutney. •Nuts & snacks, including flapjacks, muesli, chocolate biscuits & shortbread, seasonal cakes i. e. Christmas, and cereal bars. •Brown and white organic Basmati rice, and Quinoa, a type of grain. •Wines & spirits – including red wine, white wine, white rum, chocolate liqueur, coffee liqueur. •Premium hamper baskets, in various sizes using products from the shop’s range. Non-food items will include: Sports balls, including footballs, rugby and basketballs. •Fair Trade paper and paper based products. •A small range of male and female fashion t-shirts made from certified Fair Trade cotton, from the labels Epona and Conkers. A cotton shopping bag will be a key sale item, encouraged as a replacement for plastic bags. •Books on Fair Trade and related issues. 3. 2 Services To support the wide range of products on sale, a key selling point will be the personal advice and information that can be given on the products, exactly where in the world they have come from and who produced them.
The Business plan on Fair Trade Coffee Case Study
Mexican coffee farmers have had an enormous amount of trouble selling their coffee beans at a price that would generate sustainable profit. Nico Roozen and Frans van der Hoff had a vision to implement a fair trade business that would increase not only profits of the farmers but their overall lifestyles. Nico and Frans both face the problem of distribution because fairly traded coffee was ...
This gives the customers confidence to buy into the Fair Trade ideals and encourage repeat purchase in this shop above others. Information leaflets on the products and the various Fair Trade organisations, along with guidance on where to go for further information, will back this up. The Internet website will inform customers in the same way and provide links to the best Fair Trade information sources. The company website will offer a secure encrypted online ordering system with all the products listed above available for purchase, which will be operated from the shop.
Same day despatch on orders made before 3pm will ensure the fastest possible delivery time, aiming for the highest level of customer service. Items will be posted in appropriate protective with customers paying a standard delivery charge. 4 Industry Analysis 4. 1 Industry Overview The key players in the Fair Trade supply chain are the raw material producers in the ‘Third World’, product manufacturers, wholesalers and Fair Trade retailers. Fair Trade products are sold through a combination of specialist Fair Trade stores (traditional and Internet) and supermarkets.
It is one of the fastest growing markets in the world, with the aggregate annual net retail value of Fair Trade products (labelled and non-labelled) currently standing at €660m (? 456m) in Europe alone. Sales of Fair Trade products have risen by 20% in each of the last five years, and this is expected to continue as a minimum during the next five years. Officially certified and labelled Fair Trade products amount to approximately 90% (€597m) of this total. Looking specifically at retailers, there are over 2,800 specialist Worldshop (independent) stores in Europe, accounting for an estimated €120m (? 3m) in annual retail sales. Over 55,000 European supermarkets currently carry Fair Trade products, usually including a small range of tea, coffee and fruit. Fair Trade labelled products are quickly gaining market share from traditional mass-market products, having gained a 5% market share of tea, 5. 5% share of bananas, and 20% share of ground coffee. 4. 2 Company Niche As indicated earlier, The Company will target the niche market for Fair Trade certified items. It will capitalise on the growing social awareness of consumers who want to know where and how their purchases are being produced.
The Essay on Summary “UK develops taste for fair trade”
... EU because of the high tariffs and subsidies that western farmers get. The next paragraph is about the “fair trade” market which protects little ... suggests them to add a premium to products price which afterwards goes to farmers. The consumers would not suffer because they would ... and poor people not to go bankrupt by exporting their products to another countries. In the introductory part the author ...
It is a small but quickly increasing market, which will allow the business to reach the early adopters of these products and shows potential for growth as the market grows. This will be the first exclusively Fair Trade mass market High Street brand, which will be a key factor in the success of the business. An attractive and easy-to-use Internet website will help attract sales and promote the company, and at present there are relatively limited options available in terms of a one-stop-shop for Fair Trade products online. 5 Competition Analysis . 1 direct competition The direct competition to The Company comes from other retailers selling Fair Trade products. In the local area this will come mainly from the major supermarkets, all of which also sell a selection of own-label Fair Trade foods in addition to branded items. The only retail store which adopts a similar specialised approach to the sale of Fair Trade products is the Oxfam charity shops, although they carry a very limited range. In addition, results from the management’s market research (see section 7) showed that one of those who regularly purchased Fair Trade products did so from a charity shop. There will be further direct competition from other specialist internet retailers and supermarket websites. 5. 2 Indirect Competition Indirect competition comes from a number of sources. In terms of the mainly food-based products being sold, any retailer (particularly supermarkets) selling a non-Fair Trade equivalent presents indirect competition. In the surrounding area these include high-end delicatessen shops.
By offering a small clothing range, the indirect competition opens out to any company offering the consumer a different way to spend their money, and indeed may lead to the consumer choosing not to spend their money on clothing of any kind. In addition, coffee shops such as Starbucks offer Fair Trade coffee which adds further competition. 5. 3 SWOT Analysis STRENGTHS •Unique – First Fair Trade mass market High Street brand. •Little direct competition. •Top quality products with distinctive selling point. •Strong location – town centre & in up-market locations. •Attractive, easy to use Internet website. Will be officially accredited by appropriate Fair Trade bodies. •Strong mark-up of up to 100% on products. WEAKNESSES •Higher unit costs for stock than large bulk-buying Non-Fair Trade competitors. •Central city location = high property costs. •More convenient for consumers to buy FT in supermarkets. •First business venture, lack of experience. •Higher prices for Fair Trade items can outweigh benefits for many consumers. OPPORTUNITIES •Good publicity potential. •Relatively untapped market in the area, high potential growth. •Chance to exploit consumer trend towards ethical shopping and consumer knowledge of food. Targeting higher income groups with premium products, so opportunity to make strong sales. THREATS •Concept is successful, other specialist Fair Trade competitors move into market & reduce market share. •Lack of established brand creates slow initial consumer footfall in shop & on website. •External threats, eg. rates rises, taxation etc. •Changes in licensing regulations, eg. opening hours, age restrictions. •Changes in other business laws. 6 Marketing plan 6. 1 Target Market Demographic The target demographic is business professionals in the A, B and C social groups, aged between 25 and 44.
The Business plan on Alpha Audio Product Market Industry
ALPHA AUDIO Executive Summary ALPHA Audio, a leading global electronics manufacturer, is going to produce the innovative and exciting car audio compact disk recorder and receiver. This product will be capable of recording music off the radio and engraving it onto a compact disk for later listening enjoyment. When the consumer hears a song on the radio that they like, they will press the red, ...
Research has shown that people within this age range are more aware and interested in Fair Trade, and constitute the key demographic for Fair Trade purchases. 6. 2 Pricing Strategy As the shop and online store is being positioned as a retailer selling premium quality products with a strong selling point, the prices will reflect this by being at the higher end of the price scale for groceries. Since consumers will be aware that Fair Trade guarantees a fair and sustainable price to producers, they will expect and be willing to pay more than the cost of a standard equivalent product.
The Essay on Is a Fair Trade Policy Superior to a Free Trade Policy?
He believes fair trade policies are needed to protect the poor from the rich. On the other hand, Gary Hufbauer argues for free trade; stating that it is a superior policy because it can benefit everyone in the developed and developing world. I agree with Joseph Stiglitz in this matter, because I believe fair trade is the best policy for the business world today. When people speak of globalization ...
There is not a great variation in price among different Fair Trade retailers. This gives a consistent message to the consumer that a set sustainable market price has been paid to the producers, and The Company will in general match competitor prices. There is a strong mark-up on Fair Trade products, with Fair Trade bodies and wholesaler guidelines suggesting up to a 100% mark-up on the wholesale price, which gives strong potential profits. 6. 3 Advertising At launch, a prominent newspaper advertisement will be carried in the local newspaper on a six week run, reaching a large number of the targeted 25-44 demographic.
A prominent position on all major Internet search engines will be sought so that anyone searching on Fair Trade will arrive at this site, and direct links on the websites of major Fair Trade bodies will direct traffic. A key component of the online advertising strategy will be advertising on Google, in which a prominent advertisement appears based on key words entered on Google by the user. This will allow the website to quickly reach the people who are actively looking for Fair Trade information and products via the largest Internet search engine, and has the advantage of only being charged when users click through to the website.
It is anticipated that strong local publicity and word of mouth will help the business grow quickly and build awareness of the store. All planned marketing material which is to feature the FAIRTRADE Mark and be circulated to more than 500 people requires to be submitted to the Fairtrade Foundation for approval before it can be released to the public, so marketing campaigns will have to be devised well in advance. 6. 4 Public Relations and Promotion
To take advantage of the uniqueness of launching the first Fair Trade mass market brand, press releases will be sent out to all local and regional newspapers, industry trade publications and relevant Fair Trade websites. To target passing shoppers, the products will be promoted by offering tastings of Fair Trade products such as chocolate and direct them to the shop with a small discount voucher to make a follow-up purchase. There will also be good opportunities to tie in with national Fair Trade promotional campaigns.
The management will be seeking to promote the business in promotional material produced by the Fairtrade Foundation for such events, and take advantage of free flyers, posters and information leaflets to target local consumers. Again, targeting local press coverage regarding the shop’s participation in such events will help stimulate interest in the shop. 7 Operations Plan 7. 1 Location The retail store will be located at a premium High Street location, and as such on a street with a high footfall.
The Essay on Business And The Internet 2
Business is any activity that seeks profit by providing needed goods and services to others. The nature of providing these goods and services has changed drastically throughout the history of time. During the last thirty years of business activity, there has been new ways and means of conducting business through something we call technology. Technology is the advancement and uses of electronic ...
Targeted locations combine a mixture of fully pedestrianization and with nearby parking, creating a relaxed and comfortable ambiance for shoppers yet still taking advantage of passing traffic. Being in a prominent and busy shopping location will help build awareness, and offers good opportunities for eye-catching visual merchandising to complement other marketing activities. 7. 2 Equipment The main equipment costs at start-up will be tills, computer with Broadband Internet connection, and shelving units for display of stock.
Much of the promotional and display material required will be provided free of charge by various Fair Trade organisations and via wholesalers, which will help lower costs. 7. 3 Purchasing Policies & Quality control All food items will be purchased at wholesale from a co-operative supplier status which places a large emphasis on the interests of the workers, the community and the environment as a whole, fitting in well with the principles of Fair Trade. It is also in a convenient location for regular deliveries.
All stock ordering and quality control is to be carried out personally. 7. 4 Staffing and Training Staff training will include operating the till, pricing items, dealing with customer enquiries, checking and processing Internet purchases, and promotion of key products. It will also be important that they have knowledge of all the products and are able to answer likely questions from customers about Fair Trade. 8 Conclusion This business plan has been subjected to thorough analysis, and I believe the business is a viable proposition in a growing but largely untapped market niche.
The business will bring the unique selling points of specialising in Fair Trade products that no other retailer has capitalised on to this extent. Market research shows there is a significant and growing demand for products carrying the Fair Trade guarantee. Within the typical range of shops available, only supermarkets currently offer Fair Trade products on any scale, and these are limited in range. Based on the research carried out and observation of competitor offerings, this is a business which is both unique and exceptional, and will be able to exploit the potential demand for such a service.
Potential business threats and weaknesses have been considered, whilst still identifying the great number of strengths and opportunities that exist within the market. The financial projections are both realistic and achievable, aided by the fact that the business will minimise costs by not employing any other paid staff and taking advantage of the many opportunities for free publicity and promotional materials. With this in mind the management has every confidence that the investment risk will be minimised, and the business will achieve its goal of being the major Fair Trade retail brand on the High Street and Internet.
