Marketing Plan

for

Q25/25

Fan Tuan Business

Professor：Dr. Charles Trappey

Student：林靖菊 Irene 962020

2008/6/5

Outline

Summary

Current Marketing Situation

SWOT Analysis

Objectives and Issues

Marketing Strategy

Action Program

Operation procedures

Budget

Control

Reference

SUMMARY

Q25/25 Fan Tuan shop is planning to begin the breakfast business on a curbside nearby the Industrial Park. It is mainly selling rice balls and drinks. Q25/25 is positioning itself for quick service with the food on certain sanitary level. Q25/25 will be the brand to be identified with good handy breakfast offer.

CURRENT MARKETING SITUATION

Almost all the consumers buy the breakfast on their way to work. And they are the salary class who is capable to pay more for a meal comparing to students.

Around the Industrial Park, there are plenty of breakfast stores. They also provide various options for consumers to choose. Some stores are the chains, offering a variety of menu. Customers can order and read the newspapers while waiting for serving. But normally they get the “breakfast smell” after the meal because the stores cook right in front of the stores, next to the counter, without good air conditioning. And if you are in a hurry, finding a place to park your motorbikes or cars and then stepping into the stores to buy, it will take about 5 to 15 minutes to get the breakfast.

In addition, there are some curbside shops existing. Those shops also offer variety choices but the hygiene is the issue to concern. They are quite traditional style, driving a small truck for business.

Convenient stores, such as 7-11, family, provide breakfast food for consumers. But during the rush hours, it isn’t easy to find a parking space at all.

To sum up, we find the target market need a restaurant offering fast service with good sanitation to secure the food quality.

SWOT ANALYSIS

Strengths
  1. Price Q25/25 offers the simple menu with easy calculation price tactic. Fan-Tuan NT$25, drink NT$25 and combination NT$50. It is easy for customers to catch the prices and calculate. It facilitates the prompt service delivery to customers and saves time on the “change”.
  2. Brand and Co-Brand Q25/25 is selling brand while selling each Fan-Tuan and drink. In the meantime, Q25/25 uses good quality products to make Fan-Tuan and drinks. Q25/25 shows all its suppliers brands to help customers understand the food quality.
  3. Good sanitation Q25/25 focuses on the hygiene of the store. Keep everything clean and pay attention to its allocation.
Weaknesses
  1. New comer There are already many options for customers to purchase their first meal in a day. Besides, people are used to stop by their familiar stores to buy. For Q25/25, it is just about to begin to serve the market.
  2. Lack of variety Customers may already be used to the menu with variety. They may want more than that for breakfast.
Opportunities
  1. Busy Lifestyle People now have busy life. Less and less people are willing to get up earlier to prepare and enjoy the breakfast at home. They would rather buy on their way to work. Customers usually are rush to work. They may not have sufficient time for picking what they want for breakfast from complicated menus. During rush hours, it is more difficult for stopping by to get breakfast.
  2. Health Consciousness Though now more and more people choose to eat out, customers concern more about what they swallow in. More and more people are willing to pay more for better quality food to stay healthy.
  3. New Comer A new comer also represents chances because customers probably are getting tired of the food served by all breakfast restaurants in that area. They are looking for something new and willing to try.
Threats
  1. Traffic Q25/25 is a curbside store. The traffic is an issue, especially during the rush hours. It surely increases the risks in the business environment.
  2. Law A curbside shop is illegal. It may get in trouble of police officers or gangsters. Q25/25 should make sure that it is safe to do the business.

OBJECTIVES AND ISSUES

We have set the objectives for the minimum revenue in first and second years it should make.

First-Year Objectives To reach the break-even point.

Second-Year Objectives To collect the money and open the 2nd curbside Fan-Tuan shop.

Issues Our major issue is to establish a good operation procedures for future chain business and build a well-regarded brand name linked with handy and healthy breakfast “Fan-Tuan”.

MARKETING STRATEGY

Q25/25 mainly offers a combination with drink and rice balls. The promotion focuses on ease of calculation and quick service for handing out the change.

  1. Positioning

Q25/25 positions itself in prompt high quality food service. Those, who are rush to the office and looking for pick-and-go breakfast, are its target customers. So the menu must be simple and clear, demonstrating on the front board.

Q25/25 is target on branding business. Including the stand decoration and demonstrations, the core concept is simplicity, vitality and tasty. Using a logo shows vitality and warm greetings. Q represents the good taste of rice and 25 is the number for every kind of food it sells. Show “today’s special” on the ad band in front for promotion. Make the logo stickers to paste on each sold object. See the sticker demo below as figure 1.

Figure 1. the logo sticker

Demonstrating rice ball stuff by putting them into transparent acrylic containers shows the fresh and high quality.

All the service staff should wear uniform, as figure 2. The one who makes rice balls on the spot should wear gloves to maintain the hygiene level and protect him/herself from scalding.

Moreover, a good location is the key to lead successful business. Q25/25 has to find a good place for easy parking. It is a must to do the business on the main street to enter the Industrial Park for capturing more demands.

Figure 2. The uniform

  1. Product Strategy

Q25/25 provides simple menu, Fan-Tuan and drinks only. Customers can pick what they

want to add in the rice balls and what they don’t want from the demo platform Or they can choose the special combination on that day. Three options for drinks, coffee, tea and soy bean milk. To offer a special combination everyday helps to know better the customers’ favor. The promotion offer is provided with limited quantity so that it can be prepared in advance and limited quantity often draws people’s attention. But be sure to keep all the rice balls warm.

For the drinks, using the material with brand to add values, such as UCC coffee, TWININGS tea, home- made soy bean milk etc.

25/25 builds the brand so that everyone thinks of Q25/25 while thinking of Fan-Tuan.

  1. Pricing Strategy

As mentioned previously, Q25/25 positions itself for prompt qualified food service. In order to segment the market, Q25/25 prices its offers NT$50 for a combination and NT$25 for each. In order to encourage customer buy a combination with rice balls and drink. Q25/25 offers special promotion everyday and limit the offer quantity to 50 sets only.

-Monday: Chicken rice ball + Soy bean milk NT$50

-Tuesday: Sea Food rice ball + Tea NT$50

-Wednesday: Buy 2 combinations get 1 drink free

-Thursday: Vegetables rice ball + Soy bean milk NT$50

-Friday: Sausage rice ball + Tea NT$50

Special offer for frequent customers: Q25/25 coupon. Pay NT$500 get 11 coupons. Each coupon is for a rice ball and drink.

ACTION PROGRAMS

The store will begin to service in August of year 2008. Following are the summaries of the action programs for the preparation during next couple months.

June
  1. Market research: Observe the main roads to the industrial park. Notice the rush hours and the transportation. Find the best and available location for the restaurant.
  2. Supply confirmation: Check, compare and analyze the prices and quality of the material for making rice balls and drinks. Understand the cost and make sure the supply will be good.
  3. Equipment purchase: In order to lower the cost, using the used equipment would be the first choice. Find a suitable stall, the cooking utensils and packing material to buy for use.
July
  1. Decoration: Clean the facility thoroughly. Design and decorate the cart properly, see the suggested decoration below figure 3. Light is necessary for early morning and bad weather days.
  2. Operation procedures: Practice every operation procedures. If need to recruit any helpers, must do it within this month. It takes time to train.
  3. Material preparation: All required materials including for rice balls, the drinks, or even the straws and cups for packing, should be ready.
  4. Taste practice: Prepare all the food on the menu and invite as many as you can to taste and share comments for improvement beforehand. Then, prepare some rice balls and drinks with your name cards and ads sheets to visit the companies near by. Have them taste and comments. Most importantly, pass the new open information out. Don’t forget to listen to their comments for final review before open.
  5. Promotion: Print the stickers, the name cards, the promotion strap for special combination each day, the coupons. Design the ads and find the advertising channels to inform the customers your coming.

August

1. Open: Make sure everything is settled. 1~3 days for trial sell is suggested.

Figure 3. The cart of Q25/25

OPERATION PROCEDURES

Step 1. In the evening of the previous day

Purchase required material

Dip rice in water

Step 2. Prior preparation start at 4 am

Clean the cart, operation platform and signage

Cook the rice and make the special 50 rice balls

Make tea and soy bean milk

Step 3. Set the cart out and get ready at 5:30am

Put all prepared stuff in order.

Step 4.Ready for serving at 6:00 am

At least 2 staff to run the store: One for rice ball and the other for making drinks and handing out the package with change if requires.

Step 5. During rush hours from 7:30~9:30 am

Cook coffee to spread the nice smell.

Be sure to wear a smile, greet customers actively.

Walk or run to the front for handing the order to customers in car.

Try best to memorize the faces, names and preference for better service next time.

Step 6. Clean and pack after 10:30 am

Be sure to clean the surroundings as well.

Operation platform allocation

BUDGET

Fixed Cost

-Used Cart: NT$10,000

-Signage: NT$1,500

-Decoration ( light / paint): NT$2,000

-Kitchen equipment and utensil: NT$35,000

(such as rice cooker, ice boxes, acrylic containers, coffee machine etc. )

-Generator: NT$5,000

Total: NT$53,500

Monthly fixed cost

-Site: NT$10,000

-Electricity/gas/water: NT$5,000

-Packing or promotion material: NT$1,000

Total: NT$16,000

Variable Cost

-Rice: NT$250 / 6kgs for about 100balls; NT$2.5/ball

-Stuffed material (egg/ ham/vegetables/meat): NT$8/ball

-UCC coffee: 450g/NT$250; 15g for a cup; NT$8.3/cup

-TWININGS tea: 100g/NT$290; NT$3/cup

-Soy bean: 2000cc/NT$10; NT$1.25/cup

Total variable cost per month: NT$28,526

Price

-Rice Ball: NT$25 each

-Coffee (250cc): NT$25 each

-Tea (250cc): NT$25 each

-Soy bean milk (250cc): NT$25 each

Day Sales Target

-30 combinations ; NT$1,500

-50 regular rice balls ; NT$1,250

-25 coffee ; NT$625

-25 tea ; NT$625

-25 soy bean milk ; NT$625

Total: NT$4,625 per working day; 92,500 per month

Break-even calculation

According to the above assumption, ideally, the store will reach the break-even after 1.14 months.

(16,000+28,526) / (92,500-53,500) = 1.14 month

- Year revenue: NT$1110,000

- Year profit: NT$522,188

CONTROL

During everyday service, it requires to pay attention to customers’ preference and satisfaction. Keep recording the performance, how many rice balls are sold day, how many cups for each kind of drinks etc. Who are the clients, percentage for each sex? Age range? How many of them come back for shopping again? Those are good questions for managing the business. It will help react to what customers need and want promptly and properly.

REFERENCE

Marketing An Introduction eight edition by Gary Armstrong and Philip Kotler

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Marketing Plan.doc