Matt Boden Scott Clark

Stephen Coldicott Chris Cox

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Company Overview

• Small well-established company• Operating in drinks vending industry (B2B)• Complete drinks vending package• £4.8 million annual turnover• Operating in three divisions:– Commercial– Public– Industrial

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Financial Performance

• Favourable Sales growth from years 1-4• Reducing Gross Margins (%) and (£)• For example:

In year 1 the company was selling far less than they are currently but making moreprofit!

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Sector Overview

• COMMERCIAL– Sales declined by 14% over last 5 years– Poorest performing in terms of revenue

• PUBLIC– Sales increased by 36% over last 5 years

• INDUSTRIAL– Sales increased by 23% over last 5 years– Sales more than triple that of any other sector

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Market Analysis

• UK VENDING MARKET:– Coffee & Cold drinks experience rapid growth– Social & Political trends towards healthy lifestyles

Education Healthcare

– Ethical tea and coffee boost sector value– Smoothies 513% growth from 2003-08

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Competitor Analysis

• UK VENDING MARKET:–Selecta largest vending company in Europe

Bunzl Vending Services AutoBar Manchester Vending Services

– Complete packages of benefits – Vending Machine Support

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Product Development

• Changes in vending machine• Broadening the product range• Changing the coffee range• Changes in cup design

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Customer Choice FactorsCOMMERCIAL PUBLIC INDUSTRIAL

Price

Reliability

Quality/Taste

Price

Availability

Reliability

Quality/Taste

After-sales Service

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Recommendations

COMMERCIAL PUBLIC INDUSTRIAL

Changes in vending machine x x xBroadening product range x xChanging the coffee range xChanges in cup design x x x

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Strategic Objectives

Operational Objectives

1. To achieve 5% increase in total sales within the next 5 years

2. To increase market share by 30% over the next 10 years

3. To increase Profits by 10% within the next 5 years

1. To introduce 5 "healthy lines" to 30% of our customers within the public sector within the next 3 years

2. To increase the number of clients within the industrial sector by 5% over the next 3 years

3. To introduce 4 "ethical tea and coffee" lines to 20% of our customers within the commercial sector within the next 3 years

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Financial Forecast

• New product range and machines resulting in increased sales• Savings on coffee and cups improving gross

margins (% and £)• Gross Margin (£) projected to increase by

£322,000 over next 2 years.

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Future Forecasts

• text

I have lots of choice…Why should I buy from CupCo?