business plan

Business Strategy:

A. Desired image and position in market

· This is a local business. I provide candy vending machines at office spaces, public facilities, and other business venues. I will start small, one vending machine at a time. The first machine will be at a laundry mat.

B. SWOT Analysis

· Strength: one-person operation. I can keep expenses to the minimal. I don’t need to pay myself. This business is only part-time. I can pick the vending machine locations to fit my normal work route

· Weakness: one-person operation. Basically, I have to do everything on my own, from accounting to advertising to figure out how to be more competitive and expand

· Opportunities: laundry mats are great locations. People have to have change to use them and some bring kids. While waiting for the laundry to get done, they can buy some candy.

· Threats: bigger business in the same market, their costs are much lower because they serve a lot more vending machines. My uncle is already in this business. And he has met a stronger competitor. Another company gave a bigger share of the profit to muscle out a location where he had his vending machine.

C. Competitive Strategy

· Share the profits with the property owner or the business owner.

Marketing Strategy:

a. Target Market

· Kids or anyone who wants candy

b. Customers’ motivation to buy

· The candy is right there. The product is cheap and gives a handful of candies.

c. Market size and trends

· Market size is small, there is no moving trend. About one machine per location. Good locations can yield $100 per month.

d. Advertising and promotion

· Word of mouth. I will promote my business by talking to the owners in person, i.e. walk into their restaurant and ask if they are interested in placing a candy vending machine in their restaurant.

e. Pricing

· 25 cents give 1 gumball or a handful of candies. I get the candies from Costco.

f. Distribution strategy

· N/A