Sample Business Plan on SuperMarket / Grocery Store Business Plan

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EXECUTIVE SUMMARY                                                               

 

The Business Concept

 

XYZ Supermarket (XYZ Supermarket or the Company) is a specialized supermarket focusing on Asian foods. The Company will be an Asian form of a Savmart grocery/supermarket. The Company is located in City, State.

 

The Company will sell a large variety of Asian products such as rice, noodles, Asian spices and fresh vegetables. It will save the Asian population in City a 15 minute drive to the other Asian stores. XYZ Supermarket also plans to sell other products as well such as Mexican tortillas, toilet paper, shampoo, etc. The business will accept EBT (food stamps), WIC vouchers, Visa and MasterCard.

 

XYZ Supermarket plans to carry products that other stores near it will not carry. The Company’s prices on its fresh vegetables will be a lot lower than the competitors next to it since it will buy from local Asian farmers. The Company’s store will be in a convenient location for the people it plans to attract.

 

Excellent Market Opportunity

XYZ Supermarket will take advantage of several factors to drive its growth. The Asian population in City needs the XYZ Supermarket because of the type of grocery store it is going to be. It will be an Asian store with Asian goods, and it is going to be a local and convenient location. There are several apartments located behind the location of the store and a huge population of Asians in the area. It is also in an area where there are people of lower income status, so the EBT (food stamps) and WIC will be helpful. 

 

The Company will advertise its business to the locals nearby, and it will provide excellent customer service. There is a built-up high demand in the area for the products XYZ Supermarket plans to carry.

 

Profitable Growth

XYZ Supermarket expects to gain a profitable market share within a very short period of time. Determinations have been made for the size of the market, amounts of budgeted advertising and promotional dollars, the number and kinds of distribution channels and the competitive landscape.

 

Projections call for the Company to generate revenues of $1.0 million in its first twelve months. XYZ Supermarket will achieve strong growth over the next several years, reaching $1.6 million in revenues and more than $389,000 of net income by the fifth year.

 

The Opportunity

Asian-American Foods Trends

 

The popularity of ethnic foods in the United States continues to increase each year. Considered one of the fastest-growing market sectors in the food industry, Asian-Americans are a diverse demographic group with substantial spending power. The Asian-ethnic influence in today’s U. S. food industry has contributed greatly to fellow Americans’ changing palate preferences. 

 

For decades American consumers have been embracing Asian cuisines, as well as Asian-inspired fusion dishes. Mainstream grocery channels continue to experience an increased demand for Asian foods, as American tables reflect a broader selection of ethnic food products to the menu.

 

In a recent ethnic market report it is stated, “An ethnic market is a group of consumers that share a common cultural background. Many times an ethnic market has a distinctive geographic area.” In the United States, demographics reflect our population is more ethnically diverse than in years past. The Economic Research Service (ERS) says three general demographic trends are predicted to have a huge impact on future U. S. food markets, the industry is expecting more:

 

Ø      Diversity

Ø      Mature consumers

Ø      Growth in the U.S. population

 

By the year 2020, the United States population is predicted to include an additional 50 to 80 million individuals, according to projections by the USDA; proportions of Asians, Blacks, and Latinos are expected to affect these numbers greatly.

 

The USDA predicts, “During the next 20 years, the U.S. Latino population is expected to grow by 1.2 million annually. Population increases for non-Latino Whites are estimated at 500,000 annually. Yearly population growth for Blacks and Asians is estimated at 400,000 each.” ¹

 

In A C Nielsen’s Strategic Planner data, a market research firm, it is stated “Asian and Hispanic tastes remain the two biggest drivers in the US ethnic food market.”  Asian foods total 2006 retail sales, excluding Wal-Mart) climbed by