Brickman Vending Services Essay Example | Topics and Well Written Essays - 2500 words

Brickman Vending Services - Essay Example The sole trader structure also provides opportunities for claiming taxation advantages associated with business losses. This structure also provides advantages related to the capital gains tax, the sole trader is eligible by law to claim a 50% CGT reduction and the ability to write off expenses for a vehicle utilised for business purposes (Quinn Group 2012). The vending industry in the United Kingdom is valued at ?1.94 billion and there are currently 468,000 refreshment vending machines operating in the country (Research and Markets 2010). In most UK households, vending machine product purchases are representative of approximately 1.9 percent of total household spending on food (Research and Markets 2010). The statistics on the UK vending sales industry are highly favourable for ensuring profitability and revenue growth. Furthermore, total household expenditures on food for families in the UK increased by 5.3 percent in 2010 (Report Buyer 2011). In all respects, the vending industry in the UK represents a very auspicious opportunity for ensuring success of the start-up venture. 2.0 Mission and objectives The mission of Brickman Vending Services is distinctly customer-centric: Brickman Vending Services strives to provide a range of products that focus on serving the lifestyle needs of customers in the United Kingdom. From professionals to busy, on-the-go customers, Brickman Vending provides modernised service delivery and diversity of product for our valued buyers. The business maintains three distinct objectives achievable during the first year of operations. 1. Establish brand recognition for the business to establish a competitive brand presence. 2. Gain five percent of market share in the vending industry in the UK 3. Build market loyalty in the commercial business-to-business environment. 3.0 External market analyses There are approximately 300 vending competitors operating machines in the London region, where Brickman Vending Services will initially launch its vending business. Major competitors include Academy Beverage Company, Amazing Beveridge Company, Evend Ltd. and LTT Vending (Vendingmachine.co.uk 2013). This is representative of only the largest and most recognised vending companies in the London area. Despite the saturated market environment, there are opportunities associated with brand development for Brickman Vending that can serve to outperform the competitive reputations of major rivals. None of the aforementioned competitors maintain a strong brand in the UK, known largely by contractual experience in the commercial sales environment. The business model of vending services is easily replicable by competitors, in relation to the established vending supply network in the UK and the non-differentiated aspects of food products available in vending machines. Nandan (2005) indicates that the only genuine, tangible asset that cannot easily be copied by competition is the brand. After scanning the external competitive environme nt, a lack of brand presence by major competition is advantageous for building a consumer-centric brand personality that can be recalled by customers as a means of differentiating Brickman Vending from competitors. Thompson, Gamble and Strickland (2005) offer the work of Michael Porter regarding the external market characteristics that either serve to improve business position or