The Plug

Your Candy Shop

12/1/16

Student 1
Student 2
Student 3
Student 5
3rd Block Entrepreneurship
Dr. Wright

Business Description
The Plug is the newest store, dedicated to selling the most extraordinary candy in every
neighborhood at the best price with the highest quality.
The target market for The Plug consists primarily young kids, teen agers parents, and adults for
special occasions such as Valentines Day, Mothers Day and Easter.
The Plug will sell a variety of candy such as, but not limited to Lollipops, Jelly Beans, Chewy
Candy, Candy Scoops, Fun Dip and Bite Size Candy

Business Vision & Mission

The Plug aims to offer high quality fruit candies, chocolates, and other sweets at a competitive
price to meet the demand and curiosities of the sweet tooth. Within the first year the goal of the
company is to become the best candy shop in the Atlanta area. Five years into our business we
hope to have multiple shops in the local area. The plan is to open one additional store each year
so that by the end of ten years The Plug will have approximately ten stores throughout metro
Atlanta. At the end of the 15th year we hope to have at least one store located in each state
throughout the country.

Business Objectives
To be the best candy store in Georgia within one year of opening.

To establish and grow a large and loyal customer base.

To have every customer leave The Plug happy and satisfied.

To introduce better and new types of candy and new flavors to our customers once every two
weeks.

To increase and better our brand recognition in all of Atlanta.

To purchase and maintain the best and most productive equipment to make candy production
faster and easier with less cost.

To have a profit margin that increases significantly every year.

Business form of Ownership

The Plug is owned by Student 1, Student 2, and Student 3. Mr. Student 1, Ms. Student 2, and Ms.
Student 3 are all equally involved in the operation and management of The Plug. The business is
currently structured as a general partnership under the laws of the state of Georgia

Location & Facilities

The Plug is located in the great mall Atlantic Station in Atlanta, GA. The store takes up 2,000
square feet, and the leasing cost is $3,500 a month. We have equipment such as candy producing
machines, candy wrapping machines, different flavors, and cash registers. The shop has 250
square feet for storage for candy.

Organizational Structure
All operations will be split between the 3 partners. All issues will be divided into three sections
where Ms. Student 1 is Chief Technological Officer, Ms. Student 2 is Chief Financial Officer,
and Mr. Student 3 is Chief Executive Officer. All major decisions will be decided by the three
partners, and part-time employees will be hired to work the front of the shop. They will start off
at an hourly pay rate of $8.50 per hour. Eventually, all employees will be crossed trained to
work all positions at the store.

SWOT Analysis

Strengths (internal)
We are known for our welcoming atmosphere, catchy brand name and reasonable prices.
The partners are all young and can relate to the target market.
Candy is an easy product to sell.

Weaknesses (internal)
Many of our products are not natural so we have to strategically target customers who are very
health conscious which could negatively impact opening new locations.
Can be a challenge to continuously develop new flavors with repeats or close similarities that are
too close.

Opportunities (external)
Some new opportunities would include new technological advances which make it easier to
provide for the customers.
The city of Atlanta is growing at a rapid pace so opportunities for growth and expansion are
good.
There are a lot of young families in areas where we intend to open stores for The Plug.
Construction of homes and new families moving in provides an opportunity to increase target
market.

Threats (external)
Larger companies who are already established which makes for tougher competition.
New companies moving into the area with creating pricing wars to establish their customer base.
Zoning restrictions for opening new locations.

Market Research
To better understand the market officers of The Plug will analyze the market potential of a candy
store in the greater Atlanta area and collect information from a number of sources. We will
survey a variety of candy distributors and the people of Atlanta to determine the sales potential of
candy pertaining to variety of favorites, best mainstream, best tasting. Candy has always been a
popular product among all ages for many years and with new flavors and creations coming to life
everyday children will always be drawn to this industry.

Industry Analysis
Industry Size
The U.S confectionary market, otherwise known as the candy industry, is growing faster globally
than it is domestically. This market is expected to see about $6 billion in increased sales in the
next five years, and premium products are driving the growth. The confectionery industry is
made up of three categories; chocolate confectionery, sugar confectionery and gum products. All
three categories are characterized by how much sugar and sugar substitutes each contains.

Industry History:

During the early nineteenth century, after the discovery of the ''sugar beet'' and the advancement
of the mechanical age sweet-making developed rapidly into an industry and an assortment of
flavors began to be introduced into the candy mixture. Since sweets are no longer handmade and
started to be mass-produced, they were available for the first time to all people.

Industry Growth:

On the U.S. market, confectionery sales amounted to nearly 35 billion U.S. dollars in 2014 and
are expected to reach 38.9 billion U.S. dollars by 2019. In 2014, about 39.2 percent of all U.S.
candy products were sold through supermarkets, followed by convenience stores and drugstores.

Competitive Nature of the Industry:

The confectionary market is a very competitive field. There are many major companies who are
already known for selling popular, mainstream candy. Consumers have become accustomed to
the idea of purchasing candy from basic everyday superstores, especially when wanted in bulk.

Current Industry Trends and Opportunities:

Many companies in the candy industry have the mindset that bigger is better. They also
understand the importance of packaging.

Target Market Segment

The key market segments for candy stores in the greater Atlanta area are residents with an
affinity for candy and people who want to eat sweets. In particular, children who want to spend
money to eat new and delicious candy. Demographic profiles conducted by our survey say that
children between 5 7 and 10+ eat the most candy, combined together thats 73% in America.

Primary Target Market

Our target market would be primarily kids. In a neighborhood there are at least 2 kids for every
one adult. At least half of those kids will want to buy candy. We can find a location near kid
attractions and schools. Considering that our prices are not too high, a lot of young people will
be able to afford purchasing our candy, even kids.
 Secondary Target Markets
The Plug would also target those purchasing candy for special occasions such as Valentines Day,
Mothers Day, Easter, etc. Our secondary target market would also include the elderly. It is a
scientific fact that the elderly always have a clear bowl in the center of the table full of some type
of candy. In most cases they have butter scotch, which is one flavor we will produce. They also
always purchase sweets for kids, such as their grandchildren.

Competitive Analysis
Kilwins good selection of candy, poorly trained employees
Lolli Bop Sweet Shop professional, certain pastries taste bad
Sugarfina creative design, overpriced
ITSUGAR great candy, overpriced
River Street Sweets create your own candy, now expanding
Indirect companies like Walmart and Local Gas Stations can sell the same candy for less.

Staffing Job Descriptions

At The Plug we focus on a fun and friendly atmosphere while also providing our customers with
an unforgettable shopping experience. We look for employees who will always be ready to work
with a smile on their face and a smile in their heart.
Candy Stocker- responsible for filling each candy container with the respective candy as well as
refilling containers throughout the day. Must have customer service experience. Pay rate -
$6.50/hour.
Customer Consultant responsible for greeting customers at the door and directing them to their
candy of choice as well as answering any questions necessary. Must have customer service
experience. Pay rate - $7.55/hour.
Store Manager responsible for overseeing the daily operations in the store and managing
employees. Address any problems which employees, customers and products. Responsible for
administration of payroll and benefits. Must have a Bachelor Degree in Management/Business
Marketing. Pay rate - $11/hour.
Staffing Compensation & Benefits
Candy stocker hourly wage: $6.50/hour
Customer consultant hourly wage: $7.55/hour
Store Manager- $11.00

Benefits
45% off on all merchandise
15% off as family discount
Health insurance
1 week vacation each year

Marketing
Marketing Communications
Primary Message:
Our primary message is that no matter what age you are no one can deny that they like candy.
So come on in because our candy shop is the most delicious and exhilarating shop and is full of
the tasty candy.

Secondary Message:
Our secondary message is that our shop wont be like any other candy shop. Our shop is crazy,
innovative, and one of a kind.

Message Delivery
Advertising
We will put up billboards, candy vehicles, and ads during popular shows showing off our candy.

Sales Promotion
On certain days, holidays, and birthdays we give special offers on candy that our customers find
popular.

Public Relations
We will surprise the public by giving them free candy. We will also having candy comparisons
exhibits between our candy and other companies.

Business Startup & Operating Cost

One-Time Start-Up Costs

1. Initial Renovation & Deposit for Building 8000.00
2. Office furniture 3,000.00
3. Computer hardware and software $650.00
4. Setup, installation and consulting fees 1,000.00
5. Business cards and stationery $425.00
6. Decorating and remodeling $400.00
7. Fixtures, counters, equipment & Installation $500.00
8. Starting product inventory $800.00
9. Deposits with public utilities $300.00
10. Legal and other professional fees $415.00
11. Business licenses and permits $300.00
12. Advertising and promotion for opening $350.00
13. Signage $250.00
14. Rent & security deposit (2 months rent) 2,200.00
15. Operating Cash $600.00
16. Other $0.00
________
__
$19,130.0
Subtotal
0

Monthly Expenses
17. Salary of owner-manager (amount you need to pay yourself) 2,000.00
18. All other salaries, wages, & commissions 6,000.00
19. Payroll taxes or self-employment tax 150.00
20. Rent 1200.00
21. Equipment lease payments $0.00
22. Advertising (print, broadcast and Internet) 200.00
23. Postage & shipping costs 100.00
24. Supplies (inks, toners, labels, paper goods, etc.) 150.00
25. Telephone 150.00
26. Utilities 115.00
27. Internet connection 70.00
28. Website hosting and maintenance 50.00
29. General business insurance 115.00
30. Business vehicle insurance 0.00
200.
31. Health insurance
00
32. Interest & principal on loans & credit cards 0.00
300.
33. Candy Inventory
00
34. Legal and other professional fees 30.00
35. Franchise fee 0.00
36. Miscellaneous 100.00
________
__
Subtotal 10,830.00

Calculate total start-up funds

Estimate the number of months needed to find customers and get
37.
established

Monthly expense for 2 months 21,660.00

One time start-up expense 19,190.00

________
__
Total Startup Costs 40,850.00
 Executive Summary

The Plug candy shop is a prominent candy store that is going to be based in metro Atlanta. The

business is organized as a General Partnership consisting of three partners. Each partner controls

a different sector, each with separate responsibilities. The three partners have decided to share

the overall costs and profits equally. We plan to open up several different shops in Atlanta over

the next few years, and hopefully realistically speaking we will start up another shop out of state.

We have already found a building to lease for our first shop which will be the headquarters for

our business. It is located at Atlantic Station in Atlanta, Georgia, with a price that is affordable

and worth the investment. The Plug will produce and manufacture most of the candy internally,

however we will have candy from other brands such as Mars, Nestle, etc. We will be as

inventive as possible and strive to release a new flavor/candy every 2 weeks to keep our

customers happy and to increase business.

At the opening we start out by place many advertisement signs on different exits on the highway.

We will also pass out flyers and for the first few days we will stand outside and hand free

samples to attract customers. We will try to maximize our efficiency and cross train all of our

employees to maximize profits and to ensure employee productivity is high. We are well aware

of our strengths and weakness and will work vigorously to beat all odds.

We aim on selling affordable candy that still allows a high profit margin. We will have

economical prices considering that we are aware that the majority of our market will be kids.

This is why we will increase advertisement primarily to kids. We are also aware of our top

competitors, and strive to create better candy that is cheaper and tastier. We will also make it a

point that people of all ages are welcomed to try our candy, we will do this by promoting
different types of candy, and even those that are gluten free as well as candy made with Splenda

for diabetics. On special holidays we plan on having different types of advertisements and sales.
Work cited:
Lindell, Crystal. NCA: U.S. confectionery market to grow $6 billion in 5 year. Candy Industry,
22 October 2014.

Pacyniak, Bernie. Special Report: New product development making manufacturers invest.
Candy industry, 9 December 2016.
 Business Plan Evaluation Rubric
Not Does Meets Exceeds Points
Demonstr Not Expectations Earned
Evaluation Item ated Meet Expectations
Expecta
tions

Executive Summary
0 1-5 6-10 11-15
Convinces reader that business is
sound and has opportunity for success

Company Description

o Basic Description
o Vision & Mission Statement 0 1-5 6-10 11-15
o Legal form of ownership
o Business Objectives
o Location & Facilities
Industry Analysis

o SWOT Analysis 0 1-5 6-10 11-15

o Market Segments
o Competitive Analysis
Marketing

o Market Research
o Target Market 0 1-5 6-10 11-15
o Marketing Communications
(advertising, sales promotion and
public relations)
Operations

o Organizational Structure 0 1-5 6-10 11-15

o Staffing (job descriptions,
compensation & benefits, sample
schedule)
Financials

o Start-up costs
0 1-3 4-7 8-10
o Estimated sales & Profits
o Cash flow projections

Clear and concise project with logical

arrangement of information and a
consistent theme 0 1-3 4-7 8-10
Correct grammar, punctuation, and
spelling

Creativity 0 1-2 3-4 5

Total Points /100

Penalty Points

Late Project, Plagiarism -

Excellence Points

Going over and above the

expectations of the project
+

FINAL POINTS