Executive Summary The preliminary report conducted shows the different markets into which Health-Nut can enter, the competitors it must compete against, the target market in which they must focus on as well as the buyer behaviour that goes into making a decision/ purchase. These results show a strong sustainability for Health-Nut Takeaway Restaurant to be implemented in to the current market and indicate a positive profit trend for the future. The industry in to which Health-Nut Takeaway Restaurant is entering into is the Healthy Food industry, which is part of the larger industry, Hospitality. There are 3 key competitors in which they must compete against. These are McDonalds, Subway and Frozen Packaged Meals. They must also be aware of other fast food chains such as KFC and Hungry jacks. The Macro Environmental factors that will majorly affect Health-Nut are Obesity, the Global Financial Crises (GFC) and a Decrease in Fast Food advertising. All of which will be an opportunity for the business, except for the GFC. It is crucial that Health-Nut gets all of its Consumer Decision Making Process steps in order and to of a High standard by ensuring its promoting target the Need Recognition and Information Search stages, that its price and product are highly regarded when the customer is evaluating its alternatives and finally that service the service, followed by the product is paramount when delivering the purchase and finally evaluating it. The Target Market that needs to be target is the 18 – 24 year olds age bracket. Considerations that need to be made to this market include: low socio-economic status, time-poor, convenience and a high tolerance to promotion. The objective of Health-Nut should be to posses a total of 10% of its total target market (18-24 year olds) by the end of its full first year of operation. By achieving this percentage they should be well on their way to achieving future expansions/ store openings and long-term profits. Health-Nut Takeaway Restaurant Page i Table of Contents Executive Summary i 1: Introduction 1 2: Industry Definition 2 2.1 Tree Diagram 2 3: Competitor Analysis (overview) 4 3.1 Subway 4 3.2 McDonalds 4 3.3 Frozen Meal Alternatives 5 3.4 Other Competitors 5 4: Macro Environmental Analysis 6 5: Consumer Behaviour Analysis: CDMP 9 6: Market Research 11 7: Market Segments (justification for choice of segmentation) 13 7.1 13 Profile of Segments (table) 8: Suggested Target Market (choice & justification) 14 9: Proposed Positioning Strategy 15 9.1 Perceptual Map 1 15 9.2 Perceptual Map 2 16 10: Proposed Marketing Objective (SMART) 17 11: Marketing Strategies (4 or 7 P’s) 18 12: Conclusion 21 References 22 Appendices 24 Health-Nut Takeaway Restaurant Page ii Introduction The company “Amazing Ideas” have come up with their latest idea to launch at the current market. The proposed idea is to introduce a ‘Health-Nut Takeaway Restaurant’ to take advantage of consumers who are struggling with their weight and are searching for a healthy alternative but also to take advantage of current changing consumer attitudes towards healthy eating. The restaurant is set to target not only the time poor, but also the consumers who are looking to maintain a healthy diet without the burden of having to cook themselves. The purpose of this report is to examine areas of the hospitality industry in which to target by gaining an insight into the healthy food industry, its competitors and the resources and technology available/required to succeed with the new restaurant. The options available to explore this industry include: Competitor Analysis Macro Environmental Analysis Consumer Behaviour Analysis Market Research Market Segmentation Identifying a Target Market Identifying Marketing Strategies Health-Nut Takeaway Restaurant Page 2 – Industry Definition The food industry is one of the hardest industries to define as it can take many different forms. For the purpose of this report, the industry scope will be defined as the ‘healthy’ food industry. This industry sells a broad range of healthy food options including both fresh and pre-packaged meals. Produce is purchased in its raw state before being transformed into healthy meals on the premises. By defining the industry in this way, the company is able to clearly identify and understand both its competitors and its target market. Industry Definition Diagram Hospitality Cafe Restaurant Bar Takeaway/ Fast Food Unhealthy PrePackaged Pasta Fresh Hot Burger Chips Cold Rice Meat Salads Lean Beef Hotel Dine In Healthy Frozen Meals Gaming Fruit Sandwiches Sushi Chicken Figure 2 – Industry Definition Tree Diagram Health-Nut Takeaway Restaurant Page Industry Definition Summary Health-Nut Takeaway Restaurant is in the Healthy fast food industry. This is because it sells a vast array of fresh and healthy food options in a convenient location with fast service. This enables customers to go in and out of the there store within a relatively fast time period, hence the ‘fast food’ industry reference. This of course originates from the much broader Hospitality industry in which Takeaway/ Fast food is simply one section. Health-Nut Takeaway Restaurant Page 3 – Competitor Overview Health-Nut Takeaway has three main competitors in the health food market. In order to be successful in the marketplace, Health-Nut must identify these competitors and implement strategies that will ‘provide greater customer value and satisfaction than its competitors’ (Kotler 2008, page 87). Health-Nut’s major competitors are as follows: 3.1 Subway Fred DeLuca founded Subway in 1965 and in March 2011, Subway stole the fast-food crown from McDonalds with 33,749 stores located around the world, just over 1,000 more than McDonalds (The Australian, 2011). There are 1,254 Subway restaurants open in Australia making them Health-Nut Takeaway Restaurant’s largest threat in this industry. Subway has great brand recognition and their low fat menu, ‘6 grams of fat or less’ subs are popular with consumers all over the world which makes this a huge strength. However, because Subway is a franchise, there are consistency issues between stores as the service commitment of employees are low and turnovers are high. Subway’s dominance in the health sector of the fast-food industry will make it extremely difficult for Health-Nut Takeaway to break into a significant part of the market share. However, Health-Nut Takeaway has an opportunity to capitalise on the consistency of its customer service and employee satisfaction in its store. If Health-Nut Takeaway can implement good customer service strategies, they will build up a loyal customer base and will be able to succeed in the market. 3.2 McDonalds The first McDonald’s store was opened in 1955 by Ray Kroc in Illinois. In 1971, the first Australian McDonald’s store was opened in Yagoona, Sydney. Since then, over 800 McDonald’s stores have opened in Australia making them the second largest fast-food operator in the world with a grand total of 32,737 stores globally. Like Subway, McDonald’s has great brand recognition, which has helped them promote their new healthy choice meal options. The decision to focus on increasing their healthier options is as a result of the current market demand, which would have clearly resulted from lots of market research, again highlighting Health-Nut’s ability to succeed in the current market. One of the major strengths McDonald’s has is that it adapts its menus to reflect the tastes Health-Nut Takeaway Restaurant Page of the different cultures it operates in. This is why the company is so well known all over the world. A weakness that McDonald’s has that Health-Nut Takeaway can use to its advantage is that McDonald’s core product line does not coincide with the trends towards healthier lifestyles for its consumers. Their product line focuses heavily on hot food and burgers rather than salads and healthy meal alternatives. 3.3 Frozen Meal Alternatives Frozen meal alternatives such as Lean Cuisine, Healthy Choice, Biggest Loser, Weight Watchers and Lite n’ Easy pose major threats to the health-food industry, especially Health-Nut Takeaway. Consumers want hassle-free meals and these frozen meal alternatives offer that. The benefit of these frozen meal ideas is that consumers can stock up on them and pull them out when they want them instead of going down to the store or cafe whenever they want something healthy to eat. This idea results in fewer customers that will buy from Health-Nut Takeaway, as it is more convenient for them to buy a few frozen meals. However, unless these frozen meals are on special at the local supermarket, they can be too costly for some consumers. This is where Health-Nut can really focus on delivering good quality healthy food options at competitive prices so consumers are more likely to go and buy a fresh, healthy meals from Health-Nut rather than buying a frozen meal from the supermarket. 3.4 Other Competitors Minor health food competitors that Health-Nut Takeaway needs to be aware of are: * Trios Wraps * Pure & Natural * Go Sushi * Boost Juice * Noodle Box * Nandos * Grill’d * Muffin Break * Other Fast-Food Retailers such as KFC, Red Rooster and Hungry Jacks Health-Nut Takeaway Restaurant Page 4 – Macro Environmental Analysis A Macro environmental analysis is an overview of the external factors, trends and opportunities/ threats that may affect the implementation of the new restaurant. This is important because it allows the organisation to better understand the broad environment that surrounds the operations of the business. An organisation has no control over its macro environment, they cannot act to change the environment but simply react to any changes that occur. This can include changes to any of the following; demographic, economic, natural, technological, political and cultural factors. Factor Cultural Political Trend Obesity (Increase) Fast Food advertising (Decrease) Explain Obesity is an increasing epidemic that is affecting almost 61% of our adult population. (http://www.dailytelegraph.co m.au/lifestyle/australianbureau-of-statistics-reportstates-childhood-obesitycontues-to-rise/storye6frf00i-1225779194783, viewed 12PM,30/03/11) This means that we are consuming too much fatty foods and aren’t exercising properly. The result of this means an increase in Type 2 diabetes and an increased demand for healthier options. Opportunity or Threat Opportunity Laws in place to decrease Opportunity number of ads for junk food targeting kids. The law Children’s Television Standards 2009 (http://www.acma.gov.au/WE B/STANDARD..PC/pc=PC_9 0095) limits the amount of junk food being advertised to kids during peak hours. This means less junk/ fast food is advertised, meaning children are less likely to go for the unhealthy option. Health-Nut Takeaway Restaurant Strategic Implications Product: Healthy Meals Promotion: Calorie Controlled and fast Emphasis should be placed on promoting the benefits of eating healthy and offering their products as a solution to this outcome. Promotion: Healthy food for kids and adults By promoting the healthyness of the food served at Health-Nut, you are enticing parents of children to purchase your food for their kids as well as complying with current laws and regulations. Page Cultural Economic Demographic Exercise and Fitness (Increase) Global Financial Crises (Increase) Time Poor (Increase) A recent increase in weight Opportunity loss shows, new gym openings and weight reducing products available to consumers has seen them become more concious with becoming healthy. This means consumers are looking for healthier alternatives to fatty foods and are leaning towards the companys that offer this option. A decrease in the worlds financial stability, decrease in available jobs and a stock market that is still very unreliable, means that consumers are becoming tighter with their money. This poses a threat for fast food industry as restaurants are less likely to be visited due to less income available for conusmers to spend. This would mean an increase in home cooked meals and decreased profit for organisations in hospitality. Threat Australians are increasingly becoming the most time poor by working longer hours than ever before (http://newsletter.mycareer.co m.au/general/mar07/jobupdate/section/munro.aspx, viewed 1:47am, 28/04/11) This means consumers have less time to cook and prepare meals meaning they are forced to settle for substutes such as fast food. The result of this is an increase in fast food chains and restaurants both healthy and unhealthy. Opportunity Health-Nut Takeaway Restaurant Product: Calorie Controlled Meals Promotion: At Gyms and Supermarkets Promoting Health-Nut’s brand to a target market of consumers looking to lose weight is a must. This can be done by leaving flyers and or discounts at local gyms and near health food supermarkets if possible to help promote the restaurant. Price: Affordable low cost meals Place: Convienient locations Due to higher unemployed and decrease in consumer spending, Health-Nut should ensure they are located around high populated areas to save people from travelling (decrease cost of petrol usage) and should ensure their prices are low enough for all consumers to afford. Product: Healthy Convienient Meals Promotion: Quick and easy. Place: Drive thru The focus should be on promotion to consumers with limited time available and who are searching for a quick meal. The possible option of a drive thru service should also be explored to increase the speed of Page service. Table 1.1 – Macro Environment Analysis Macro Environment Summary The important factors found were adults are increasingly becoming obese with almost 61% of Australians being obese, the number of un-healthy fast food advertising is decreasing by law and the global financial crisis is having a negative effect on consumer spending. Obesity is an important opportunity to target due to consumers increasing need to find and eat healthier food e.g. (Health-Nut Takeaway Restaurant). The decrease in allowable fast food advertising also means for Health-Nut that their competitors will have decreased advertising during key periods meaning more time for Health-Nut to advertise. The global financial crisis also affects Health-Nut meaning they will need to ensure their prices are low enough for consumers to afford on a regular basis. Health-Nut Takeaway Restaurant Page 5 – Consumer Behaviour Analysis Consumers can be analysed in many ways, but their specific buying behaviour can be analysed through the Consumer Decision Making Process. There are five stages in this process including need recognition, information search, evaluation of alternatives, the purchase and finally the post purchase evaluation. These steps can be analysed in greater detail through internal and external factors that the consumer may face when in each of these stages. Decision Making Stage Need Recognition Explanation The consumer has developed a need or want to purchase a meal/ food. It may be through a necessity such as feeling hungry and therefore needing to fulfil this hunger. Information Search Explanation After recognising the need for food, the consumer will search for information on ways to solve their hunger. Personal experience such as previous restaurants may influence the consumer during this stage. Evaluation of Alternatives Explanation When the consumer has decided they will search for a restaurant or fast food takeaway, they Internal Factor External Factor Strategic Implications Psychological: The need to fulfil one’s hunger in order to stay full and satisfied. Personal: The type of canteen provided at a public or private school and whether or not you can afford it. Social Influences: Pressures from friends and family to share their food around. Marketing Influences: Seeing a TV Ad, newspaper article or billboard advertising a particular food or restaurant. The recognition of this need could occur at a place of work, school, university, shopping or even at home. Various promotions surrounding the consumer can aid it developing this need by placing the consumer with the thought of eating the ads particular food. Psychological: The consumer’s willingness to look for shops and food outlets. Personal: Whether or not they are located near a shopping centre or are old enough to drive to a location with more shops. Social Influences: Pressures from family to find a suitable meal for everyone. Pressures from friends to find a suitable location and price. To find the available meals and food available to fulfil the consumer’s need, promotion of Health-Nut food must be available to be seen by all of its target market in order to be recognised. The place of this promotion is also key in order for the consumer to quickly identify their product. Psychological: The type of food the consumer prefers (spicy or savoury, hot or cold) Previous experiences with the restaurant or fast food chain. Personal: Health-Nut Takeaway Restaurant Marketing Influences: Consumers begin to become more aware of TV Ads, Newspaper articles, Radio Ads, Billboard signs and shop promotions. Social Influences: Pressure from friends and family to choose food that suit their taste buds as well. Marketing Influences: TV Ads offering a special promotion/ deal, Flyers offering a Price and Product are the two main considerations the consumer will decide upon when evaluating between alternatives. Depending on the consumer’s budget, a cheaper price may mean a consumer chooses one product over another. But for other Page will weigh up their options from criteria such as price, location, appearance and taste preference. Purchase Explanation The stage in which the consumer actually decides to purchase their preferred meal. Post Purchase Evaluation Explanation After the meal has already been purchased and consumed, the consumer will compare the meal with how it actually tasted with what they thought it would taste like. A satisfying meal may mean repeat purchases and a good word of mouth spread. Whether or not the consumer can afford one alternative over another, whether it is cost efficient to choose one from the other. Psychological: Whether or not they have eaten there before. E.g. they might prefer to eat at a particular store rather than a new one. Personal: The closest available store to purchase their meal to save time and travel. The consumer might also go for the cheapest option. Psychological: The consumer may compare their previous experience to the current one. May be above or below their expectations. Consumers will also form an opinion, affecting future sales. Personal: The consumer may have expected higher standards due to being brought up that way (private school) or it may not have satisfied all the members of their family. discount such as buy one get one free or in store promotions. consumer’s if the meal HealthNut is offering is far superior to other alternatives, they are more likely to receive the sale. This means Health-Nut need to offer superior food and an affordable price. Social Influences: People and Promotion are key Pressure from friends to when it comes to the purchase the food they consumer making their want. Pressure from the purchase. Now that they have family to purchase a decided to enter your store, meal that everyone will the focus shifts to provided enjoy. excellent customer service as Marketing Influences: well as up selling a customer In store promotions such to extras in a meal such as as daily specials or drinks. This allows the lunch deals meaning the consumer be satisfied with the consumer may change service they are receiving their mind at time of whilst also increasing profits purchase. for the company. Social Influences: Friends or Family may have enjoyed their meal meaning the consumer is more likely to enjoy theirs and the same applies for vice versa, creating word of mouth. Marketing Influences: Store reward programs can be used to entice repeat purchases from the consumer. TV Ads can also be used to remind the consumer of their past experience enticing them to return. The post purchase evaluation has two crucial aspects to it, the product and people. The consumer will review the customer service they received. So Health-Nut need to ensure they provide excellent customer service for every customer to ensure repeat purchases. The product itself is also very important. Consumers want meals that arrive in a timely manner, are cooked properly (e.g. not burnt) and that satisfy their taste buds. If these three factors are satisfied at least, the consumers post purchase evaluation should be a positive one ensure repeat business and increase word of Table 2.1 – Consumer Decision Making Process mouth. The seven P’s (Place, Product, etc..) are crucial in determining the needs and outcomes for consumers. Promotion of the business is a necessity if the company first wants to be recognised and considered in the evaluation of alternatives. The people are then important in the overall Health-Nut Takeaway Restaurant Page experience a customer will receive from the business. Excellent promotion and customer service strategies should see a rise in demand and repeat purchases. 6 – Market Research The Marketing Research Process involves four main steps: Defining the Problem and Research Objectives Developing the Research Plan for Collecting Information Implementing the Research Plan – Collecting and Analysing the Data Interpreting and Reporting the Findings For the purpose of this report, only steps one and two will be discussed. Defining the problem and research objectives is generally the hardest step in the marketing research process. It involves finding out how the product or service will fit into the current marketplace. Health-Nut Takeaway must identify its main problems: Is there a viable market for Health-Nut Takeaway Restaurant in the Fast-Food industry? In which locations would the business be most profitable? Is it sustainable over current market trends and future predictions? After the problem has been defined, research objectives must be established. A market research project can have one of three research objectives: Exploratory Descriptive Causal In this report, the research objective that will be used is Descriptive research as it answers questions regarding market potential and the demographic or attitudes of those that may buy the product. The next step is Developing the Research Plan for Collecting Information. It will be developed in the following ways: Conducting Primary Research – Research conducted in specific relation to Health-Nut o Surveys - Surveys could be conducted in metropolitan areas to determine if consumers are looking for healthy meal alternatives and if given the opportunity, would consider Health-Nut Takeaway Restaurant as a viable healthy option. o Observation - In order to identify which locations would be the most successful for the business, observational research should be undertaken. This can include Health-Nut Takeaway Restaurant Page monitoring foot traffic during peak hours to determine whether the business will have an opportunity to reach its market. Locations with heavy foot traffic will give the business the best opportunity to reach potential customers. Gathering Secondary Research – Information that already exists from prior research o Industry Reports – IBIS World o Australian Bureau of Statistics – Health, Food Retailing o Reports from other countries – Lifestyles in America, American Food Industry Health-Nut Takeaway Restaurant Page 7 – Market Segments In the fast-food industry, market segmentation is usually based on the ages of the consumers. Therefore, for the purpose the purpose of this report, age will be used in order to segment the market and identify Health-Nut Takeaway’s target market. The market is segmented into six age groups, with consumers aged 1 8 to 24 being the biggest consumer group with 30% of the total market (Refer to Appendix 1). Closely behind at 22%, consumers aged 14 to 17 have the next largest market for the fast-food industry. Segmenting the market by age is the most logical for this report as the results have all the following characteristics: Measurability – Age can be measured effectively in order to identify a potential target market. Accessibility – Segmenting by age makes the target market easier to reach and serve. Sustainability – By segmenting with age, the company can identify which segments are large and profitable enough to target. SEGMENTATION AGE Under 14 WORK TYPE Students, Unemployed 14 – 17 Students, Part Time/Casual Work 18 – 24 Uni Students, FullTime/Part Time Work 25 – 34 Full-Time/Part Time Work 35 – 49 Full-Time Work 50 – 64 Full-Time/Part-Time Work 65 + Part-Time Work/Retired Health-Nut Takeaway Restaurant BUILD A PROFILE LIFESTYLE Laid Back – Focus is on friends, hobbies and growing up Laid Back Lifestyle – Focused on study, going out with friends or hobbies Laid Back Lifestyle – Focused on study, work, going out or hobbies Busy Lifestyle – Focused on job, possible family commitments, hobbies or going out Busy Lifestyle – Focused on job or possible family commitments More Laid Back Lifestyle – focused on family, job or hobbies Laid Back Lifestyle – Focused on hobbies and family BENEFIT SOUGHT Taste, Image, Experience Image, Variety, Try/Experience Something New, Convenience, Taste Convenience, Price, Nutritional Value, Image, Variety, Taste Convenience, Price, Nutritional Value, Image, Taste Convenience, Price, Nutritional Value, Image, Taste Convenience, Price, Taste, A Little Luxury, Price, Taste Page Action-ability – Segmenting age allows the company to design effective programs that can be used to attract and serve their target market. 7.1 of Segments (table) 8 –Profile Suggested Target Market According to the results shown on appendix one and mentioned previously, the market segment that Health-Nut Takeaway Restaurant should target is the 18 – 24 year old age group. This market has the largest market percentage (30 %) and had the biggest potential for sales and continued growth. This market consists of individuals engaged in full or part time study, apprenticeships, TAFE and full or part time employees. Due to studying or full time work, this market is usually very busy and low on money, therefore in general are looking for food options that are fast, good value and convenient. This group of individuals will often take advantage of meal deals and special promotions e.g. Student deals, lunch time specials (Cheap Tuesdays), etc. Because of their busy nature there is a typical pattern to opt for the quickest, cheapest and most reliable food source available while at work or at university. This is the perfect target age for Healthy-Nut to market at due to its rapidly growing nature and large current market share. Many young people don’t have the time to worry about cooking meals and spending a great deal of time in the kitchen, so they more often than not opt for eating out.– This provides HealthTable 3.1 Market Segmentation groups Nut Takeaway with the opportunity to capture the market. Health-Nut Takeaway Restaurant Page 9 – Proposed Positioning Strategy The ability to place and position yourself within the current market is a must in order for Health-Nut to effectively enter a new market. The positioning strategy outlines who, where and what each of the current competitors offer and how the prospected product (Health-Nut Take Away Restaurant) will vary from its competitors. It allows them to identify areas of weakness in the current market in which they can capitalise on, whilst also maintaining a focus on current market wants. Convenience McDonalds KFC Frozen Meals Health-Nut Red Rooster Sushi Hungry Jacks Value Subway Expensive Trios Grill’d Noodle Box Nandos Size Figure 3.1 – Perceptual Map 1 Continued on next page Health-Nut Takeaway Restaurant Page High in Fats McDonalds Hungary Jacks Red Rooster KFC Affordable Taste Noodle Box Frozen Meals Grill’d Nandos Trios Sushi Subway Health-Nut Figure 3.2 – Perceptual Map 2 Healthy Due to Health-Nut’s target market being (18-24 year olds), the proposed positioning strategies are aimed at targeting this low socio-economic and time poor group. The focus for Health-Nut is to offer a fairly low-cost meal, with convenient locations offering a healthier food option (and in this case calorie-controlled) that offers superior value in the minds of students, school leavers and tradesmen. Of course these meals still need to be appetising to a variety of taste buds so as to not limit their market, but the overall target is for an affordable, healthier alternative to that of the fast food chains. Health-Nut Takeaway Restaurant Page 10 - Proposed Marketing Objective Marketing objectives allow a business to control its marketing plan. For Health-Nut Take Away Restaurant to be successful, SMART objective principals must be applied to assist in the implementation of the business. The objective should be to posses a total of 10% of its total target market (18-24 year olds) by the end of its full first year of operation. This is very realistic due to the unique selling point (healthy fast food) not offered by many organisations and an increase consumer’s interest in healthier lifestyles. It is important that Health-Nut achieves this target if it wishes to create word of mouth within the community and to allow possible expansions by opening more stores across Australia. Health-Nut Takeaway Restaurant Page 11 - Marketing Strategies The elements (P’s) of the marketing mix are the variables marketing managers are able to control in order to best satisfy the needs of their target market. There are 7 P’s for a service (Product, Price, Promotion, Place, People, Process Management and Physical Evidence). For the purpose of this report in relation to Health-Nut Takeaway Restaurant, only 6 of these 7 elements of the marketing mix will be discussed. Product: Figure 4 – 3 Product Levels The core product offering for Health-Nut Takeaway is ‘Healthy Takeaway Food’. This is what the customer is after and actually buying from the business. The actual products are the attributes that are combined to enable the business to deliver the core product offering. (Kotler, 2009, page 270). These attributes are the brand name – Healthy-Nut Takeaway, convenient locations for consumers, packaging that is environmentally friendly, portion-controlled meals and quality of fresh ingredients. Health-Nut Takeaway Restaurant Page The augmented parts of the product are the additional services that Health-Nut Takeaway will offer its customers in order to enhance both the product and the customers’ experience with the business. These include a loyalty program for customers, phone applications for iPhone and Android that will enable the customer to access menus and nutritional information, a website, try-at-home recipes and student specials. These augmented services and benefits will help differentiate Health-Nut Takeaway from its competitors and give the business an edge in the marketplace by going above and beyond just delivering the core product. Price: Health-Nut Takeaway’s target market is 18-24 year olds, who generally are consumers with low incomes. Therefore, prices should reflect this and be reasonable if Health-Nut wishes to appeal to this market effectively – e.g. Under $10 for a meal. As stated in the macro environmental analysis, the current economic climate calls for affordable, low-cost meals. Consumers tend to be under the assumption that eating healthy meals out is far more expensive than their fast-food alternatives and as a result will purchase the fast-food, contributing to the obesity epidemic. Because of this, Health-Nut must price their products to be competitive with their fast-food competitors (competitionbased pricing) to encourage consumers to choose healthy meal options and reduce the obesity crises. Promotion: To create awareness of Health-Nut Takeaway, flyers could be distributed throughout universities and businesses in the same area as Health-Nut Takeaway. Also, by offering special student discounts, lunch-time specials and/or cheap days, the business will be able to promote effectively and as a result, word will spread and the business will be able to bring in more customers. People: To be successful, Health-Nut Takeaway must recruit the right people for the job. They should employ people with customer service experience and/or people who have had previous experience in the food service industry. They need bubbly, friendly staff that will make customers feel comfortable and leave satisfied with the service they received in order for them to return. Health-Nut Takeaway Restaurant Page These employees are the face of the business and if they are not trained and committed to the business’ goals and objectives, then the business will not succeed. Process Management: To ensure consistency and quality in food preparation, Health-Nut Takeaway must implement food-handling processes. Recipes should be developed by health food professionals to ensure customers are getting the healthiest meal options available. Staff will undergo extensive training in food handling and safety, as well as nutrition courses to ensure they are giving customers to most up-to-date, relevant and correct information regarding their menu options and food choices. Physical Evidence: A service is mostly intangible, therefore is it up to the Health-Nut Takeaway to use other techniques and tools to help the customer remember the experience. To achieve this, Health-Nut could hand out business cards with every sale. Another tool they could use to help customers identify with the business is creating a logo that will stand out and/or use signage both inside and outside the store. Health-Nut Takeaway Restaurant Page 12 - Conclusion The viability of the new store opening (Health-Nut Takeaway Restaurant) is very high due to a large percentage of the current market being its target market; 18-24 year olds (30 % total current market) see appendix figure 2. The potential of the new Restaurant is also very high due to the current obesity epidemic, which would see an increase in demand for healthy food as well as an increase in convenient food due to current Australians being time-poor, both of which is part of Health-Nut’s key selling features. With the correct promotional advertising, low cost menu’s and excellent (fast) customer service delivered at every transaction, there is no reason why this business could fail in the current market. Health-Nut Takeaway Restaurant Page References Books Ionescu-Somers, Aileen; Steger, Ulrich 2008, Business Logic for Sustainability: A Food and Beverage Perspective, Palgrave Macmillan – (Chapter 2, Pages 15 – 28) Kline, Professor Stephen 2010, Globesity, Food Marketing and Family Lifestyles, Palgrave Macmillan Hyman, Michael; Sierra, Jeremy 2010, Marketing Research Kit for Dummies, For Dummies Kotler, Phillip; Adam, Stewart; Denize, Sara; Armstrong, Gary 2009, Principles of Marketing, Pearson Education Australia Journal Articles Macarthur, Kate, ‘Fast Feeders Bite Into Casual Dining’, Advertising Age 00018899, 11/1/2004 Vol. 75, Issue 44, Viewed 22 March 2011 Mello, Michelle M, Federal Trade Commission Regulation of Food Advertising to Children: Possibilities for a Reinvigorated Role, Journal of Health Politics, Policy & Law Vol. 35, Issue 2, Pages 227 – 276, April 2010, Viewed 03 April 2011 Food Chemical News, ‘Kids See 21% More Fast Food Ads than in 2003: Study’, Food Chemical News Publishing Vol. 38, Issue 51 ISSN: 0015-6337, 12 November 2010, Viewed 23 March 2011 Industry Reports Rowley, Suzannah 2010, Takeaway Food Retailing in Australia, IBISWorld Rowley, Suzannah 2011, Fast Food in Australia, IBISWorld Rowley, Suzannah 2011, Cafes and Restaurants in Australia, IBISWorld Newspaper Articles Crouch, Brad, ‘Fast-Food Chains to Reveal Meal Kilojoule Count Fat Cost on the Menu’, Sunday Mail, 06 March 2011, viewed 29 March 2011 <http://www.adelaidenow.com.au/ipad/fast-food-chains-to-reveal-meal-kilojoulecount/story-fn6bqphm-1226016460862> Jimenez, Katherine, ‘Subway Rolls the Rest to Triumph in Fast-Food Store Wars’, The Australian, March 09, 2011, viewed 29 March, 2011, <http://www.theaustralian.com.au/news/nation/subway-rolls-the-rest-to-triumph-in-fastfood-store-wars/story-e6frg6nf-1226018014309> AP, ‘Sandwich Chain Outgrows McDonald’s’, The Australian, March 08, 2011, Viewed 13 March, 2011, <http://www.theaustralian.com.au/news/world/sandwich-chainoutgrows-mcdonalds/story-e6frg6so-1226017804937> AAP, ‘Subway takes McDonald’s Fast-Food Crown’, Perth Now (Sunday Times), March 08, 2011, Viewed 29 March, 2011 <http://www.perthnow.com.au/business/news/subway-takes-mcdonalds-fast-foodcrown/story-e6frg2qu-1226017763267> Pascua, Yvette 2010, ‘811 McDonald’s Stores in Australia’, International Business Times, Viewed 30 March, 2011, <http://au.ibtimes.com/articles/44565/20100822/811- Health-Nut Takeaway Restaurant Page mcdonald-s-stores-in-australia.htm> AAP, 2009, ‘Australian Bureau of Statistics Report States Childhood Obesity Continues to Rise’, The Telegraph, Viewed 30 March 2011, < http://www.dailytelegraph.com.au/lifestyle/australian-bureau-of-statistics-report-stateschildhood-obesity-contues-to-rise/story-e6frf00i-1225779194783> Munro, Kelsey, 2007, ‘Aussies Working Longer, Sydney Morning Herald, Viewed 28 April,<http://newsletter.mycareer.com.au/general/mar07/job-update/section/munro.aspx> Websites Doctors Associates Australia, Subway, Eat Fresh 2010, Viewed 03 April 2010 <http://www.subway.com.au/info/franchise_information/australian_sandwich_market/> Adam 2010, Subway SWOT Analysis, Viewed 11 April 2011, < http://www.freeswotanalysis.com/fast-food-companies-swot-analysis/18-subway-swotanalysis.html> McDonalds Our Story, Viewed 11 April 2011, <http://mcdonalds.com.au/about-us/ourstory> Business Teacher, McDonald’s SWOT Analysis, Viewed 11 April 2011, < http://www.businessteacher.org.uk/business-resources/swot-analysisdatabase/mcdonalds-swot-analysis/> Australian Communications and Media Authority, Children’s Television Standards, 2009, Viewed 30 April 2011, <http://www.acma.gov.au/WEB/STANDARD..PC/pc=PC_90095> Health-Nut Takeaway Restaurant Page Appendices Figure 2 – Age Segmentation for Fast Food Health-Nut Takeaway Restaurant Page
Buttercup Food Products is a various kinds of food products business. It will focus with different fast foods like Apple pie, Apple Halua, Apple Biscuit, Mango Pie, Coconut Pie, Plum Pie, and Mango Lime Cream Pie. Buttercup Food Products (BFP) not only a. Brand names. It is an identity for the food lover’s. Buttercup Food Products is a new company of existing products of food industry. In product description part, Buttercup Food Products has studied about product feature, product benefits, proprietary rights and stage of new product development. BFP will produce Apple pie, Apple Halua, Apple Biscuit, Mango Pie, Coconut Pie, Plum Pie, and Mango Lime Cream Pie. The products of BFP have legal and cultural value. BFP targets the people who like to take the taste of different foods. So BFP thinks that the target customer’s are ready to consider our products. The target customer of BFP is middle, upper classes and vegetarian people. BFP has made a marketing plan before launch the product in the market. The parts of the marketing plan of BFP are customer research, target market strategy, channel strategy, market positioning, product strategy, pricing strategy and advertising & promotion strategy. The target market of BFP is Upper middle, upper classes people. BFP will open a Web Site for adverting and selling products to the customer. BFP will also offer customer to buy products by phone call Apple pie, Palm Pie, Apple pie, Apple Halua, Apple Biscuit, Mango Pie, Coconut Pie, Plum Pie, Mango Lime Cream Pie are totally new product in the market. The unique selling proportion (USP) of BFP is Different and Hygienic food for the food lovers. BFP thinks the customers are available but products are not available in the market. BFP will start its business in Centre Park at Gulshan. BFP is a sole trader business. In marketing area BFP need one experienced marketing officer and two sells person need. BFP always wishes to increase sales volume by providing hygiene and quality food. Sales and marketing manager is important employee of BFP. Manpower is the heart production business for making quality food. BFP is a sole trader business. BFP thinks every business is risky. BFP has a plan against risk. Finally we can assure to the customer that all the products of BFP are demandable.
At the present semester, I am studying “Entrepreneurship Development (MGT-360)” as a partial requirement of BBA program. Theoretical knowledge is not enough to get an inside of this subject. Theoretical discussions have sometimes difference with the practical world. In the classroom, I get the opportunity to know the theoretical part of the subject. However, without practical orientation it is somewhat difficult to learn the core concept of an Entrepreneurship Development. This business plan as a course requires many decisions, which are entirely based on practical situations. So my course instructor Ms. Jafrin Farid has assigned me to prepare a business plan on a practical situation about various fruit products, which has given me the opportunity to relate theory in practice as a successful entrepreneur. I were independently formed of the Instructor selected the focus. The submission date of this Business Plan is May 15, 2008.
Immediate purpose of this Business Plan is to practically accomplish the requirements of the Entrepreneurship Development (MGT-360) course prerequisite and as a consequence to learn the formal Business Plan for a new business.
Today’s life growing fast, it is full of demand and expectation. For that there are so much opportunities satisfy the peoples’ demand. This is an overwhelming opportunity for me to work at a part of a professional business field. In this regard I feel honored to prepare a formal Business Plan. In addition to serve this purpose it tries to find out-
To determine how to make a proper Business Plan,
To determine consumers need and
To learn how to be successful in business career
Scope of the Study:
There are lots of opportunities to make new businesses. The raw materials are very simple and available around us. As well as there are demand also. So, I used the scope is to take the opportunities and do a food products business by introducing new food product with different flavor for the people. I have tried my level best to gathering the information regarding this type of business.
It is difficult to include all the information to prepare a proper Business Plan in food products industry by providing different flavor in this short time. There for, I have arbitrarily picked some infamous information and I did not get enough information about that. I have tried to include all the information about the food products business by introducing different flavor in Dhaka city in order to succeed in food business.
Sources and Methods of Collecting Data:
Most of the relevant data and information taken from market survey of customer demand. So to find out enough information for fast food by providing new product and flavor, I have analyzed the customer demand and opportunity of making profit. Then I have collect data from different ways in different fast food centers. I also talked with some people to know about their need and demand. I also collected some information from web area.
General Description of Business:
Buttercup Food Products is a various kinds of food products business. It will offer various types of hygiene and quality foods mainly for middle, upper classes and vegetarian people in Dhaka, Bangladesh. It will be organized as a sole proprietorship business. The target area of it is Banani, Uttara and Dhanmondi and Golshan residential area.
The main objective of BFP is to promote quality products with the objective of setting benchmarks for industry practices. BFP also wants to minimize the unemployment problem in Dhaka city. Though it is a profit seeking company but our main target is to fulfill the customer’s satisfaction and needs. It will focus with different fast foods like Apple pie, Apple Halua, Apple Biscuit, Mango Pie, Coconut Pie, Plum Pie, and Mango Lime Cream Pie.
Brand Name: Buttercup Food Products (BFP).Brand names are more than just a name and symbols. Buttercup Food Products grab the position in consumer’s mind and let the consumer’s feel about the products and its performance. That’s why I select this kind of company name to create a positive and reinforcing image for customers.
Products: Apple pie, Apple Halua, Apple Biscuit, Mango Pie, Coconut Pie, Plum Pie, Mango Lime Cream Pie
Head Office and SalesCenter
Formation of business: Buttercup Food Products is a new company of existing products of food industry. This will provide the existing food in a different flavor. BFP will be established in 2009 as a sole proprietorship business. The owner of the business is Mr. Asif Mahmud. BFP will offer various types of hygienic and quality fast food mainly for upper middle, upper classes and vegetarian people in Dhaka, Bangladesh.
BFP will be an exclusive and entertaining fast food centre; this will provide a nice atmosphere with excellent and hygienic foods. The mission is to have a different food offering and efficient and superior service – customer satisfaction is our paramount objective. BFP will be the fast food centre of choice for a mature and adult crowd, couples and singles, young and old, male or female.
To be regarded as an exclusive First Food centre though products and services.
BFP wants to promote quality and different products with the objective of setting benchmarks for industry practices. Though it is a profit seeking company but our main target is to fulfill the customers’ needs and satisfaction. To fulfill the customers’ needs-
Launching new and specialized and hygienic products and ensuring customers’ satisfaction.
Ensuring sustained and significant growth in sales and profit.
In order to achieve our aspired vision we shall subscribe to the following values-
Quality in everything we do
Transparent and fair in all our dealings
Trust and respect for each other
Share social responsibility
Work as a team
Live up to our commitments
In product description part, Buttercup Food Products has studied about product feature, product benefits, proprietary rights and stage of new product development.
Apple pie is the one dessert that is a tradition at family reunions and social events. It has always been a treat that is appetizing any time of the year. There is no dessert more looked forward to after a good meal than a home made apple pie. Our recipe book will take you through step by step instructions on how to make this out standing, mouth watering dessert. We also include pictures for every step, so that you will find it very easy to comprehend our instructions. This recipe makes a crust from scratch, and is much better than a bought crust.
Why This Apple Pie Is Everyone’s Favorite
Apple pie has always been a dessert that no one can pass up and one that is always welcome. I have tried many apple pie recipes and none of them can stand up to this ones delicious flaky crust or its mouth watering cinnamon flavored filling.
Apple pie American Apple pie:
In cooking, an apple pie is a fruit pie (or tart) in which the principal filling ingredient is apples. Pastry is generally used top-and-bottom, making a double-crust pie, the upper crust of which may be a pastry lattice woven of strips; exceptions are deep-dish apple pie with a top crust only, and open-face Tarte Tatin.
BISCUIT APPLE PIE RECCEIPY
Apple pie and cheese
One combination of flavors common in the nineteenth century and earlier, which were referred to in English novels of the time was apple pie and cheese, by which was meant sharp cheddar cheese. This was because the apple was not always sweet (the leading sweet variety, Red Delicious, was developed in 1868). The sharpness of the cheese combines with the tartness of the apple and so produces an appealing taste. While its popularity has waned as modern pies have become sweeter, some people still enjoy this combination. This combination of tastes is still practiced in Maryland.
Step-1: Wash and peel the apples, then core and chop them using a small knife.
Step-2: Place the apple slices into a pan and sprinkle over 2 oz (50g) of sugar, two tablespoons of water and 3/4 teaspoon of cinnamon.
Step-3: Cook slowly until the apples are soft and ……
Step-4: place into a suitable container and refrigerate for later us
Coconut Cream Pie
Comments: This is a healthy and delicious coconut cream pie recipe, made with a non-gluten crust using organic coconut flour.
Product ingredients and Description:
Apple Slice, Flour, Sugar, , Butter,.
American Apple pie
Apple Slice,Flour, Sugar, Butter,
BASIC APPLE PIE
Apple Slice ,Flour, Sugar, Egg, Butter,
|Apple pie and cheese|
Apple Slice, Flour, Butter, Egg, Sugar.
Coconut Cream Pie
Coconut slice, Flour, Sugar, teaspoon honey Egg, Butter.
Mango Lime Cream Pie
Flour, Sugar, mango puree, fresh lime juice, cream cheese,
Fig: BFP’s product description
Buttercup Food Products is a small house but suitable decorated and simplicity comfort to the guests. It want to provide hygiene & quality food with reliability. Customer will get greater out put because it will never use synthetic harmful color. All the products color of it will be natural. It is committed not to use harmful raw materials to produce the products. All the customer will get Fresh and healthy food from it. It will provide various kinds of apple halua, apple pie and Weeding halua to fulfill the demand of potential customer.
Buttercup Food Products will produce a trade mark for its fast food house that can be able to contain the property’s sign and this sign provides the brand rights of Buttercup Food Products. As I know that no one can use my logo, brand name and copy the center’s name. Though there is no law for the sole proprietorship and partnership but there are some preferences for us.
Stage of Development:
Buttercup Food Products can include with another new flavor, the shape and style. It will try to find out the demand of new product with original products, products improvements, products modifications and new brands. It will follow in their new products development which represented as follow—
MFP’s New Product Development :
Fig: BFP’s new product development
Industry and Market Analysis
In Bangladesh, food industry is continuous to grow. Within the industrial sector, the growth of the food processing industry is particularly important for Bangladesh as this is one of the major industries in terms of contribution to total manufacturing production and employment. Changes in mean capacity realization rates in the food processing industry over the three periods suggest that enterprises in different sectors within the industry recorded only moderate increases in efficiency during the post-reform period. The average rate of capacity realization for this industry increased by only 7 per cent, from 51 per cent in 1981 to 58 per cent in 1991. There is still a substantial unrealized productive capacity in most of the enterprises in the food processing industry. On the average, capacity realization increased most sharply in the fish and seafood sector by 31 per cent from a low mean of 47 per cent in 1981 to 78 per cent in 1991. The reason for this sharp rise may be attributed to the outward orientation of this sector and the need for competition. All the firms in this sector adopted a 100 per cent export orientation approach. The remaining industries showed little or no improvement.
X (Product Differentiation):
The consumers of DhakaCity now spend a whopping 3000 million Taka per year on fast food centre. During the period of 2002 to 2006 the fast food centre market of Dhaka city grew at 40%. This has generated a boom in fast food centre food opening the last five years. People are always wish different types of food with new and desirable flavor. We can change the section of product and market by producing a range of hygiene and quality food with different flavor. Our business is oligopoly organization.
Opportunity and Trends:
Fast foods are major Tiffin food in our daily life for students, travelers and young generation. But some specific time these are used as immediate food especially in many occasions. BFP will produce Apple pie, Apple Halua, Apple Biscuit, Mango Pie, Coconut Pie, Plum Pie, and Mango Lime Cream Pie. The growing number of health conscious people can be a good market for future various kinds of fruit and vegetable juice. As the raw material of the products are available in Bangladesh. Huge amount and various types of fruits are growing in Bangladesh. And the Government is also fear about agro based business and others types of business boom to contribute in national GDP. So, Raw materials and skilled employees are available and BFP thinks intense, reoccurring and detailed training is the cornerstone to success. Technology are also easy to operate and available with reasonable price. BFP will organize Superior building, good quality show room, excellent sitting arrangement, and hygienic environment for infrastructure support.
BFP will start with a suitable footprint ranges from a 300-square-foot kiosk to the 1,500-square foot in-line location. This unit square footage range allows BFP to address a wide range of location formats on a modular basis. The basic module represented by the 300-square-foot kiosk represents the core concepts of business. BFP will start its operation firstly in Golshan area. BFP will produce a wide range of fast food with various fruits flavor which are not available in the market. So, the numbers of competitor are not so high. The direct competitors are Boomers and BambooCastle. The products of BFP have legal and cultural value. On the other hand BFP think there is a great chance of distribution and promotion. BFP will add some extra service like home service delivery by phone call and internet that will be demandable in future. BFP thinks it will get political and legal support for a clear concept that is better for the people and their health. So, BFP will get political and legal environment support. From opportunity analysis BFP think Apple pie, Apple Halua, Apple Biscuit, Mango Pie, Coconut Pie, Plum Pie, Mango Lime Cream Pie flavor and test will get good support from Bangladeshi market especially in Dhaka area. Finally the main trends of BFP are to provide a wide range of fast food with different flavor and reasonable price.
Competitive Environment and Competition:
Fresh and quality fast foods are always demandable. There are many fast foods centre in Dhaka city. All the fast food centers are willing to making more profit. Before starting the operation BFP tried to gather information about some competitor in fast food sector in Golshan Banani, Uttara and Dhanmondi area. The nearest six competitors that BFP found are as follow-
A larger number of firms: Here in Dhaka city there are so many fast food shops operating business. So it increases rivalry because more firms must compete for the same customers and resources. The rivalry intensifies if the firms have similar market share, leading to a struggle for market leadership.
Threat of Substitutes:In Dhaka city there are so many fast food shops operating business. Though they are not proving the same service but they can easily copy the products. So this market is very competitive for BFP.
Suppliers: In the Dhaka city the bargaining power of the suppliers is really high. Because they have other options to run their business.
Buyers: In Dhaka city there are so many fast food shops. So the customer’s have options to choose. That’s why they have the high bargaining power.
Competitive Matrix Chart
Agree completely=5, Mostly agree=4, partially agree=3, Mostly disagree=2, Disagree completely=0.
From the competitor analysis BFP find out some information of competitor’s strength and weakness. The strength and weakness are as follows:
Product services, unique feature, distribution system, packaging and product layout are the strength of Boomers. Advertising is the main weakness of Boomers. On the other hand there is some problem in selecting location.
Product services, unique feature, distribution system and packaging are the strength of BambooCastle. Advertising is the main weakness of BambooCastle. There is some problem in selecting location and product layout.
Target Market and Customer:
Foods are actually delicious for anybody. And when it is fast food that time it is more attractive for young people. These young peoples are basically SchoolsColleges and Universities going student. So, for my target group, I have selected theses young generation as my target customer. Apple pie, Apple Halua, Apple Biscuit, Mango Pie, Coconut Pie, Plum Pie, Mango Lime Cream Pie flavor are demandable for all classes’ people in the society. In this moment there are not single bakeries that are producing fruit pie, fruit halua for vegetarian people. On the other hand no bakeries are providing outstanding quality, service, cleanliness, and home service delivery by using internet or phone call. We hope we will make every customer in every house or area smile. The target customers of BFP are:
Class of Customers
Upper Middle class
Class of Customers
The maximum upper middle and upper classes people seek different food with different taste and flavor. In general, people are likely to accept various types of fast food with different flavor. Firstly, our target is upper middle and upper class consumer in Dhaka city. BFP thinks it will get approximately 100,000 customers per year. And the buying condition will be acceptable for all consumers.
Market Size and Growth:
BFP targets the people who like to take the taste of different foods. The primary customers are upper middle and upper class people. Market survey of BFP conducted that it will get 20-25% customer in beginning time. And BFP wishes it will capture minimum 10% growth rate. Total sales volume can be approximately 400000 units per year.
Market Analysis (Pie)
|The Destination Customer|
The current market trend of this industry was once monopolistic but not anymore. Over the past decade or so this industry has evolved much more than anybody has anticipated.
Over the past few years the rate of potential consumers has increased profoundly specially in the commercial areas. The contemporary habit or lifestyle has forced people to adapt the life style of western society. So the bottom line is more people are prone to go for gift shops whenever necessary.
Target Customer analysis
Upper & middle classes people
Everywhere in Dhaka city
All the products of Premier Cake House will be highly specialized and profitable, that would be capable to fulfill the demand of potential customer.
Upper class and upper Middle class people:
Maximum of upper class and upper middle class people wish to taste the different food. They always desire different kinds of entertaining foods. Though the Apple pie’s is not a familiar food in our country. But the people in Gulshan are ready to take the taste of different flavor. So BFP thinks that the target customer’s are ready to consider our products.
Young people are always like to taste the new and different products. They have the tendency to adopt the new culture. So BFP thinks that the new offering is going to be hit to the young people.
Tourists who are visiting the city:
Gulshan is very important place for business sector. There are more than twenty manpower and travel agency in Gulshan. On the other hand there are many Embassies and private bank in Gulshan area. Many people come to Gulshan for process their VISA and others paper. Many business person come to the bank for transaction. So every day there are many people comes to Gulshan in bank, offices and manpower & travel agency. Sometimes it takes huge time to process their work or many people come from different district. In the lunch time or evening time they wish to eat something. If they find fresh and quality different food then they would be potential customer of BFP.
The target customer of BFP is middle, upper classes and vegetarian people. For sales analysis BFP analyzed the Gulshan area. A common way to estimate total market demand is as follow:
Sales by Yearly
BFP has performed a market diagnostic study and gathered some important information from the market. BFP will provide the necessary product that the consumer wants to get. Various kinds of pie are not providing by any fast food house. So there is a huge demand of this item. BFP has made a marketing plan before launch the product in the market. The parts of the marketing plan of BFP are customer research, target market strategy, channel strategy, market positioning, product strategy, pricing strategy and advertising & promotion strategy.
BFP thinks about customer sincerely and a survey was conducted properly from the customer market. The 80% of upper classes people are ready to buy new products; the young people have the tendency to taste the new food. There are more than 5% upper middle class people who are fond of new food trends. Huge numbers of people wish different kinds of tasty food with different flavor. On the other hand many potential customers are willing to buy products by internet or phone call. And MFP will offer these kinds of facilities. So, MFP think people will be more interested when MFP will start its operation.
Target Market Strategy:
The target market of BFP is Upper middle, upper classes people. These types of customer are very interested to enjoy the taste of new foods. All the products of BFP will be free from harmful chemical. Customer will get different kinds of food with different flavor easily. BFP will open a Web Site for adverting and selling products to the customer. BFP will also offer customer to buy products by phone call. By offering various types of product and marketing variations to segments, BFP hope for higher sales and a stronger position within each market segment.
BFP will provide different types of new food with different flavor in the targeted segment. Apple pie, Palm Pie, Apple pie, Apple Halua, Apple Biscuit, Mango Pie, Coconut Pie, Plum Pie, Mango Lime Cream Pie are totally new product in the market. The unique selling proportion (USP) of BFP is Different and Hygienic food for the food lovers. BFP thinks the customers are available but products are not available in the market. BFP will take care about the quality and variety of new food with different flavor.
Before telling anything about our product strategy I would like to mention few factors that we always keep in mind to make our brand a successful one. We know there is one controllable and two uncontrollable variables exist in marketing. Controllable variable are the elements of the marketing mix. 4ps of marketing mix are Product, price, promotion and place. The proper mixing of these 4ps is very important to survive in the market. The one most important task of marketing people is proper mixing of 4ps.
- Product, price, promotion and place.
- Market/ consumer/ customer.
- Economy, geography, socio/ religion/ culture, technology, ethics, competitive structure.
So, marketing people cannot control those uncontrollable variables which are strongly associating with the business. On the other hand marketing people can strongly control the controllable variable which is 4ps of marketing. Now a day it is not only 4ps but also 4Cs and 4As. These have been shown below:
4Ps 4Cs 4As
Product Customer value Acceptability
Price Customer cost Affordability
Place Customer convenience Access ability
Promotion Customer communication Awareness
Though BFP is going to start with one sales centre but BPF has a plan for expanding the distribution channel. BPF will provide products and services through selective distribution channel.
We know that there are few ways of pricing a product. These are
- Price skimming
- Value pricing,
- Cost pricing
- Market Penetration Pricing
In pricing strategy, BPF will follow “Market-penetration pricing”. Market penetration pricing represents setting a reasonable price for a new product in order to attract a large number of buyers and a large market share. BPF think production and distribution costs must fall as sales volume increases.
Buttercup Food Products is a new company of existing products of food industry. Food industries of our country have made advertise in print media like Magazine, Poster, News Paper and Billboard as well as electronic media also. My company is launching for the first time with a totally new and different product in food market. So my advertisement is to create awareness to my customer in my introducing level. So, I think my advertisement will be better to publish in print media and I will also use News paper poster and billboard near any shopping complex, tourism place, school, college and university to introduce my new innovation and exclusive collection to my target customer.
Promotional tools: Promotion has been defined as the coordination of all seller initiated efforts to set up channels of information and persuasion in order to sell goods and services or promote an idea. There are four types of promotional tools are more emphasis in the marketing process. The different types of promotional tools are mention bellows:
Sales Promotion: Sales promotions are used for increase the sales volume by customer attraction. Here BFP throwing a special offer to the customer. It could be discount offer or it could be the offer of buy one get one free. Consumer –oriented sales promotion is targeted to the ultimate user of a product and includes coupon, samplining, and various point-of-purchase materials. These promotional tools encourage consumers to make an immediate purchase and thus can stimulate short term sales. So I try to use most of the tools regarding sales promotions to attracting my target customer.
Advertising: Advertising is use to inform, persuade, remind in order to gain a response from the target market. As we are new in the market we will go for informative advertising. Advertising is the effective way to pass the product benefits and information to the ultimate customer. Advertising involves mass media that can transmit a message to large group of individuals, often the same time. One advertisement may seek to generate immediate response or action from the customer; another may want to develop awareness or a positive image for a product over a longer period. Advertising can be use to create brand image and symbolic appeals for company or brand, a very important capability for companies selling products and services that are difficult to differentiate on functional attributes. Observing these kinds of facilities I would like to inform my target customer to create awareness my products through advertisement. The way of advertising can be different type. This are-
1. TV advertisement
2. FM Radio
5. Bill board
Publicity:publicity refers to non personal communications regarding an organization, product, service or idea not directly paid for or run under identified sponsorship. It usually comes in the form of a news story, editorial, or announcement about an organization and its products and service. The company or organization attempts to get the media to cover or run a favorable story on a product, service, and cause or even to affect awareness, knowledge, opinion, and behavior. These techniques used to gain publicity include news releases, press conference, feature articles, photographs, films, and videotapes. So I have use publicity as promotional tools to increase my sales and create my product image.
Personal Selling: The final elements of an organization’s promotional mix is personal selling, a form of person to person communications in which a seller attempt to assists and/or persuade prospective buyers to purchase the company’s product or service or to act on an idea. Unlike advertising, personal selling involves direct contract between buyer and seller, either face-to-face or through some form of telecommunications such as telephone sales. This interaction gives the marketer communication flexibility, the seller can see or hear the potential buyer’s reaction and modify the message accordingly. Personal selling efforts can also be targeted to specific markets and customer types that are the best prospects for the company’s product and service. So personal selling is needed for my products selling and also get the customer immediate feedback. Therefore action taking and decision making are very much easier to me.
Slogan of the promotional program:
Slogan or tag line is very important for a particular product. Without a slogan product positioning cannot happen. Through a promotional slogan a product position set into the customer mind. According to product category slogan can be different. There are few examples as follows:
COCA COLA:“Think Globally, Act Locally”.
FEDEX: “Relax. It’s FedEx”.
AIRTEL: “Express Yourself”.
So the customer can make a perception about my product. I am sure that the perception will be favorable. They can understand what kind of food items I provide them.
Buttercup Food Products
My product is mainly food items. So my slogan has made with making a similarity of my products and services. That’s why my slogan is
The reason behind the slogan is, people work hard in whole day and they want refreshment and food to recover the energy. If he takes my various food items of my company he will get refreshment as well his body will fit for working.
That is why my promotional slogan is “Eat, Fit & Become Hit”, which really mean that or relevant to my product category as well it set the product position into the customer mind.
My company produces food products, so there is no time limitation. My business is not depending of time period. Various foods are available in different seasons and I use the seasonal food to produce delicious item. Time period does not affect me a lot.
Promotional Planning Matrix:
Buttercup Food Products
A House of Different, Quality full and Hygienic Foods.
Mango Lime Cream Pie
Central park, Road no#2, Gulshan
BPF has made a plan to operate the production sector. BPF wish it will get much benefit from the operation plan. The operation plan of BPF is started from the purchase raw materials. The operation plan of BPF divided in eleven stages. The stages are as follow:
Fig: Operation Plan of BFP
BPF has selected its Factory, Head office and Sales centre in CenterlPark, Gulshan. Gulshan is very important place. There are many English medium schools, Bank, post office, and many private offices in this road. But Boomers and BambooCastle are not operating their business in this road. Transportation and parking facilities are also a part of great advantages. On the other hand office rent and other expenses are very high. So, expensive office and availability of parking area are the part of disadvantages.
Supply chain analysis:
BFP will use road transportation to buying raw materials and selling products. BFP will involve with entire supply chain management. It represents the managing upstream and downstream value-added flows of materials, final goods and related information among suppliers, the company, resellers and final consumers. It is a vertical job. In quality control, BFP always tries to control the quality and time management. Firstly the head of the cook order to start production. Then the receivers others cook receive the order and start the production. Then the head of the cook and production manager test the quality and evaluate the unit. Finally folding and packaging represents the last step of production or supply chain.
Fig: Supply chain Management
Inventory Management System:
The entire inventory will be use in first in first out method. BFP will be organized a store room for store up the raw materials. Inventory management of BFP can be—
Fig: Inventory Management System
The main raw material of BFP is flour, sugar, and fruit. Senakallyan sangstha will be supplier of flour and sugar. And BRAC will be fruit supplier. BFP will buy essential raw materials according to their demand from karwan bazaar. BFP can contact with Pepsi or IGLOO for strategic partner.
Physical Facilities and Factors:
BFP will start its business in CentrePark at Gulshan. The size of the showroom will be 800-1000sft. The construction of CentrePark is going on. It will be 15 storied commercial building. This building will also provide parking facilities. The environment and the site of this building is suitable place for making good relationship with the customer and making profit.
The office and sales centre is not harmful for the customer and employee. BFP will organize proper lighting and sitting arrangement for the valuable customer. Factory and Sales office will be organized as totally air-conditioned. BFP will provide Z type of comfortable chair and Sofa for the customer in sales centre.
Layout patterns of BFP will be formal, control and divides store into a series. And it will be friendly environment and acceptable for everyone.
In manufacturing layout BFP will deals with product layout, process layout, fixed position layout and functional layout. In product layout sector production will perform by sequence. Process layout will perform according product process function. Layout patterns of BFP will be open spaces in production and sells centre.
BFP needs different types of equipment to produce various types of Pie. BFP will buy all the equipment from the Naogaon Engineering Workshop. BFP has made a contact with Naogaon Engineering Workshop. They are eager to supply all the necessary equipment with reasonable price. The necessary machinery of BFP is Diesel/ Gas and Electric Rotary Rack Oven, Ingredients Mixing Machine, Packaging machine and Cutting machine.
Ingredients Mixing Machine Rotary Microwave Woven
The microwave woven to be mounded is fed into the hopper and a forcing roller forces the dough into the cavities of the molding roller made out of gun metal, uniformly engraved and coated with food grade Teflon. Excess dough is cleared with a knife, which is held by a holder made from tool steel, to ensure uniform filling.
An adjustable rubber roller conveying the discharge cotton web presses it uniformly against the molding roller for perfect transfer of molded pieces from the molding roller on to the web. The adjustable rubber ruler is very important in operation sector.
The purpose of three drives is, speed of the forcing roller influences the density of dough forced in to the molding cavity. The speed of the die roller influences the production speed. The discharge web speed influences the shape of the biscuits produced along the web or across the web.
|1) Power = 440 Volts Phase|
1.5 H.P Motive
|2) Power = 440 Volts 3 Phase|
15. K.W Heating
|1) Machine Weight (Approx.)||1075||1500|
|2) Machine Dimension (Approx.)|
Fig: Power, Weight and Dimension of ingredients machine
BFP is a sole trader business. The managing director is the owner of the business. Managing director can operate in production sector. Manpower is required for Marketing, cook and sales person. So, total sales person needed five people in cooking sector who will also operate packaging and leveling. In marketing area BFP need one experienced marketing officer and two sells person need.
Develop an Organization Chart
Managing Director is the owner and head of the business. The Managing Director of BFP will also take responsibility of production management. BFP always wishes to increase sales volume by providing hygiene and quality food. The managing director will serve his qualified working experience to BFP. For this reason Managing director should be motivated, proficient and truly concern in working area.
Sales and Marketing manager:
Sales and marketing manager is important employee of BFP. Sales and Marketing manager should be experienced in fast food sector at least 5 years. The job responsibility of sales and marketing manager is to increase the sales volume by providing different ways.
Man, Machine and money are the three basic elements of business. Manpower is the heart production business for making quality food. For making quality and hygiene food BFP need a small number of employees. One Production Manager, one Sells and Marketing Manager with two sells person will be administration sector. BFP will start with two skilled and three inexperienced cook. Small number but qualified people are more desirable and worthwhile for more production rather than unskilled large number of people. So, quality should be more preferable than the quantity.
BFP is a sole trader business. The owner of the business will be the director and the director is responsible for operating and production sector. The director will take the responsible of production sector to control the quality. The director is experienced person in fast food production. The director of BFP is also responsible to handling the marketing manager and the head of the cook. The marketing manager has five years experience in fast food marketing sector. The cook is experienced in fast food especially Pie. Others cook are also able to handle the Pie and other production. So, BFP has qualified strength in management, marketing and production area.
Human Resource Management
Mauritius Food Product Company is looking for a young, energetic, smart marketing executive.
Job Title: Marketing Executive
Company Name: Buttercup Food Product
- Responsible for guiding the company in a profitable direction
- Oversee all aspects of the business, from sales and marketing to human resources and accounting.
All employees report directly to the president
- Business degree from any reported University.
- 2 years experience in sales and marketing at food business in Bangladesh
- Excellent financial and management skills
- Strong understanding of English language
- Salary: By Negotiable
Those who can fill the above criteria, please send your CV with a passport size photograph within 30th June 2007. Contract: Mauritius Food Product, 15/A Central park, Road # 2, Gulshan – 2.
Financial plan is very important factor in Business Plan. It is impossible for BFP to start fruitful operation without capital. Capitalization plan is the part of financial plan which bears three functions. Capital required, Capital sources and Loans required are the main part of Capitalization plan.
|Project Management||Tk 0|
|Restaurant Consultant (4 months)||Tk 15,911|
|Architectural Design||Tk 2,195|
|Structural & Plumbing Design||Tk 1,368|
|Mechanical & Electrical Design||Tk 2,155|
|Graphic Design||Tk 1,185|
|Electrical & Structural Engineering Fees||Tk 2,592|
|Design Consultants (Kitchen, Interior & Dining)||Tk 9,119|
|Engineer & Architect Fees||Tk 7,040|
|HVAC (Air Return, Air Ducts, etc.)||Tk 19,250|
|Disposal & Demolition||Tk 4,122|
|Structural Construction (4 Months General Labor)||Tk 52,099|
|Façade (Exterior Construction)||Tk 3,092|
|Plaster (Dry Wall)||Tk 2,061|
|Mill & Metal Work||Tk 8,244|
|Interior Finishes (2500 – 3000 sq. ft.)||Tk 14,538|
|Fire Alarm System||Tk 3,092|
|Security & Phone System||Tk 4,615|
|Liquor Control System – Lease||Tk 0|
|Stools, Chairs, Tables, Uniforms||Tk 38,025|
|POS (Point of Sale System) – Lease||Tk 0|
|Glassware, Flatware, Small ware (Bar & Lounge)||Tk 3,298|
|Glassware, Flatware, Small ware & Supplies (FOH)||Tk 8,298|
|Dishwasher, Ice & Glass washer – Lease||Tk 0|
|Kitchen Equipment Freight Fees||Tk 2,389|
|FF&E Taxes (Taxes on Purchase)||Tk 7,988|
|Capitalized Legal Fees (LLC, Investor Agreements)||Tk 7,080|
|Software: Restaurant/Inventory||Tk 5,500|
|Software: Cost Control||Tk 6,000|
|Impact, Tap & Permit Fees||Tk 3,115|
|Business License & Temp Certificate of Occ.||Tk 1,615|
|Liquor Licenses||Tk 4,615|
|Utilities, Disposal, Tax & Insurance||Tk 9,275|
|Security Deposits (Phone/Elec/Gas/Water)||Tk 6,250|
|Initial Lease Deposits||Tk 6,250|
|Bank & Loan Closing Costs||Tk 6,250|
|Web Site Construction||Tk 5,800|
|Initial Marketing, Training & PR||Tk 19,550|
|Research & Development||Tk 3,050|
|Start-Up Salary (Mngt & Chefs)||Tk 58,050|
|Recruiting (Staff)||Tk 14,550|
|Initial Cleaning Services||Tk 1,000|
|Total Start-up Expenses||Tk 427,209|
|Cash Required||Tk 97,099|
|Start-up Inventory||Tk 27,500|
|Other Current Assets||Tk 73,311|
|Long-term Assets||Tk 65,000|
|Total Assets||Tk 262,910|
|Total Requirements||Tk 690,119|
Income Statement (Monthly):
Pro Forma Statement:
Twelve Month Income Projection Statement:
BFP has made a twelve month income projection statement. The income projection statement shown below:
Sales Tk371, 416
Cost of Goods Sold (80000)
Contribution Margin 291416
Fixed Factory Overhead (85000)
Selling and Administration Expenses (110000)
Advertising and Promotional expenses (30000)
Other Expenses (15000)
Net Income 51416