business plan financial analysis and business objectives

just do the “FINANCIAL ANALYSIS AND EXPECTED RESULTS” and “BUSINESS OBJECTIVES” parts

Betty Crocker Mug Treats

Executive Summary (15 points)

  • Elevator Pitch/Reason for the product. Also include the company and the product.
    • Market is saturated with self serve mug cakes. There is a hole in the market in the healthier version of this product

Market Analysis (20 points)

Betty Crocker Mug Treats is one of the products of General Mills Incorporated. General Mills Inc. is an American food company that sells a wide variety of products, from breakfast cereals, pizza, ice cream and snacks. The company’s products belong to the packaged food industry (Euromonitor International). Specifically, General Mills account for 1.15% in the bakeries and foodservice market segment (CSI Market). Other market segments in the industry include meals, snacks, ice creams, pasta, non-alcoholic drinks and sauces and condiments segment

A single serve treat, Betty Crocker Mug Treats attracts young professionals and college students living alone and who have microwave ovens in their place of residency. This particularly attracts the millenials and Gen Z, thus targeting individuals ages from sixteen to early thirties. The target market is composed of busy and preoccupied fast-paced individuals. They are in need for easy-to-prepare products. Having food that is easy to prepare will help to allocate more time for productivity. The mug treats can also serve for breakfast or just an impulsive craving in the evening (Koyenikan). This makes the product attractive to ofessionals and students who come in early to work or class and do work until midnight. Millenials are also known for patronizing products and services that are fast and convenient, thus making the product an attractive purchase for the market .

Currently, Betty Crocker Mug Treats is only available in United States, Middle East, and Canada. The product’s market will soon expand with General Mill’s recent announcement to globalize the particular brand. The company’s extensive research findings encourage them to compete with similar product lines in Europe, Australia and Latin America (Wiber). This enables the company to have market presence in almost all regions: North and South America, Europe and Asia.

There are important and emerging trends that are expected to affect the growth of the market. Mug cakes are forecasted to penetrate distribution in cafes and restaurants. As compared to regular cupcakes which are prepared for 15 to 20 minutes, mug cakes are faster to prepare at approximately five minutes (Payne). This is why it will not be surprising if in the following years, mug cakes will be available in many cafes and dine-in cake shops. They can also serve as easy-to-serve deserts in restaurants.Innovation is also expected to affect the future of mug cakes in the industry. The consumers’ need for healthier food choices puts pressure on companies to differentiate mug cakes through innovation (Spencer). Companies can look into using organic ingredients or lessening the calories to fulfill the said need. Consumers are also now more environmentally conscious, thus also calling for companies to produce mug cakes in environment-friendly packaging (Open Ideo). This means the packaging can be biodegradable or recyclable so that there is less negative environmental impact.

Competitive Analysis –

The market is saturated with a variety of brands selling single serve cake and brownie mixes. Duncan Hines is Betty Crocker’s number one competitor in the mug cake territory. The Duncan Hines brands sells similar products to Betty Crocker including recipes, cake mixes, brownie mixes, and frostings. As a brand, Duncan Hines focuses mainly on baking, while Betty Crocker has recipes and products for baking and cooking.

Duncan Hines’ mug cake product is named “Perfect Size for 1”. In addition to multiple chocolate and brownie flavors, Duncan Hines also provides breakfast mug cakes with flavors like Cinnamon Coffee Cake, Maple Brown Sugar Oat Cup and Buttermilk Pancake. The brand also sells individually packaged toppings that can be combined with mug cakes. Examples include Caramel Drizzle, Chocolate Frosting and Cream Cheese Frosting. On its website, Duncan Hines promotes its mug cakes to have no artificial preservatives, no artificial flavors and simple ingredients.

While Duncan Hines has the greatest market share and variety of products, many other brands have created their own version of the single serve mug cake. Ghirardelli created a single serve brownie as an addition to its chocolate and dark chocolate brownie mixes. The brand also created a trio of mug cakes including the Chocolate and Peanut Butter Mug Cake, the Classic White and Raspberry Mug Cake and the Chocolate Molten Lava Mug Cake.

Many smaller brands have mug cake options as well. However, in mainstream grocery stores, these secondary competitors are not as likely to be present. Secondary competitors include Dr. Oetker Chocolate Mug Cake, Weight Watchers Brownie Mug Mix, Sticky Fingers Mug Cake, Hershey’s Mug Cakes, as well as many other options.

Betty Crocker’s main competitor in the healthier mug cake market is Weight Watchers. Weight Watchers’ mug cakes has only 110 calories in one pack and is made with no artificial colors, sweeteners, preservatives, or flavors. While Weight Watchers does have a strong community, their ingredient list is high and is not an organic option. Each of Betty Crocker’s competitors in the single serve mug cake market have similar products. Each require minimal ingredients and market the quick, single serve aspect of their product to potential customers. None of Betty Crocker’s primary competitors have any particularly health mug cake options available.

Company Analysis –

The Betty Crocker brand got its start in 1921. Betty Crocker was named the “first lady of food” as she became one of the most well-known female faces in America. Once a one-woman show, the company now employees hundreds and has its name in grocery stores across the country. Almost 100 years later, the brand is one of America’s top cooking instruction and recipe development platforms. Betty Crocker’s mission is simply to teach people to cook. Betty Crocker offers many products for its customers including cook books, recipes, baking mixes, and cooking inspiration.

The Betty Crocker brand is part of the larger company, General Mills. General Mills owns many other prominent food brands including Bisquick, Yoplait, Fiber One, Nature Valley and Wheaties. In 2018, General Mills, Inc. brought in $15.7 billion in net revenue.

Betty Crocker Mug Treats are single serve cake or brownie mixes. Hungry customers looking to indulge simply pour the mix into a mug, add water, stir it up and put it in the microwave for a minute or two.The brand offers a variety of flavors like Triple Chocolate Cake with Fudge Frosting, Chocolate Caramel Cake with Caramel Frosting and Blueberry Muffin Mix with Cream Cheese Glaze.

SWOT Analysis

Strengths

  • Strong online presence with website, social media and mobile app
  • Well-known brand for almost 100 years; iconic, red spoon logo
  • Large amount of products available

Weaknesses

  • Could become stalled on innovation or stuck in older ways because it is such a well-known, established brand

Opportunities

  • Ability to be a trendsetter for foods and recipes
  • Co-branding opportunities with other brands
  • Create healthier recipes to follow health trends

Threats

  • High dependence on grocery and food trends
  • Saturated market with a large number of competitors making single serve mug cakes
  • A reduced interest in cooking homemade meals, busy lifestyles that don’t allow time for cooking

BUSINESS OBJECTIVES (Examples) (50 points)

  • Market share of two percent of the hand held breakfast market in the first year [sales of over 8 million dollars]
  • Project break-even in 2019.

MARKETING STRATEGIES:

  • One to two sentences on goal of project

ACTION PLAN:

  • Product: Microwavable mug cakes made with organic, sustainably sourced ingredients
  • Price: $6 for a pack of 4 servings
  • Distribution: Begin at 100 key Target locations in New York, DC, LA, and Chicago. Then rollout to stores across the US
  • Promotion: Instagram ads, paid influencers, Facebook ads, sponsored ads on amazon

FINANCIAL ANALYSIS AND EXPECTED RESULTS (20 points)

  • What are your planned sales and profits for the product launch. Example below.

CONTINGENCY PLANS (10 points)

 
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