Marketing Management

Final Exam

Marketing Plan - Rice Ball

Instructor：Dr. Charles Trappey

Students：Marten Tsai

Student No.：952011

Date：June 5, 2008

Introduction

This report consisted of five sections. In the fist section, we discussed our market segmentation and target market. Rice ball is not a new product and there are many existing competitors. A good market segmentation and target market would let our new store run well. In section II, we designed the curbside store, including the name, the logo, the signage, and the uniform. Good impression is very important for customers to visit for the first time and come back again. In section III, the products were illustrated. We introduced our menu and then discovered the cost of our products. In section IV, the business process was introduced, including interior process and exterior process. In section V, break-event was calculated. Finally, conclusions were made in section VI.

Section I Market Segmentation and Target Market

Rice ball is one of traditional Chinese breakfast. Many existing curbside stores sell rice ball in Hsin-Chu. The market segmentation should put in quality products as the exam required. Thus, co-branding was our strategy. As for target market, we focused on the employees in Hsin-ChuSciencePark. They are usually single and busy so that they could not eat breakfast at home.

Section IIThe Store

Store Name

We named the store as Motorcycle Rice Ball. Motorcycle in Chinese slang is used to describe a person that is difficult to deal with. We thought the store name should be easy to memorize so we picked the name.

Curbside Store Design and Signage

Figure 1.1 showed the store and signage. The logo for the store was a smile triangle face. All the rice balls in our store were in the triangle shape. So the smile triangle face stands for the rice ball. Moreover, co-branding was one of our main strategies. Therefore, we put the logo of our material in our store. Finally, a transparent cabinet was used since it could give people the feeling of sanitation.

Figure 1.1 The Store and signage design

Uniform

The uniform shown in Figure 1.2 was decorated with logos and our store name. One pocket was designed in the left side. The clerk could put pen and money there. Moreover, a headscarf was designed in our uniform. Wearing a headscarf would give people the impression of sanitation.

Figure 1.2 The uniform design

Section III The products

The menu of our store was listed in Table 3.1. There were two varieties in rice ball. Customers could choose with pork powder meat or with tuna powder meat. As for the beverage, customers could choose Starbucks coffee, Whittard tea, or soy bean milk. No matter which flavor, rice ball as well as beverage cost you 25 NT dollars.

Table 3.1 The menu

Rice Ball / Beverage
Pork powder meat / Tuna power meat / Starbucks coffee / Whittard tea / Soy bean milk
25 NT dollars / 25 NT dollars

Cost Analysis of Rice Ball

The cost analysis of rice ball was listed in Table 3.2. No matter which flavor, the material cost of a rice ball was 9 NT dollars.

Table 3.2 The cost analysis of rice ball

Cost
Rice / 5
1/4 egg / 1
Vegetables / 1
Miscellanea / 1
Powder meat / 1
Total / 9

Cost Analysis of Beverage

The cost analysis of beverage was listed in Table 3.3. Although the costs were different, we sold in the same price. We may earn less selling Starbucks coffee, but Starbuck coffee may attract more people to visit our store and buy rice ball.

Table 3.3 The cost analysis of beverage

Cost
Starbucks coffee / 12
Whittard tea / 4
Soy bean milk / 5

Section IV The Business Process

The business process was designed in two parts. Figure 5.1 showed the interior process, including purchasing materials, cooking, and reposition. Figure 5.2 showed the exterior process that was how to service customers.

Figure 5.1 The interior process

Figure 5.2 The exterior process

Section VThe Break-event Calculation

In the beginning, we had to decorate the store and buy reposition boxes and thermos cans. The cost was listed in Table 5.1. We would like to list the cost equally in 12 months. Then the break-event in a month could be calculated as Table 5.2.

Table 5.1 The one-time cost

Price
Store decoration / 1000
Thermos can / 2000 x 3
Wood can for rice / 2000
Reposition boxes / 100 x 6
Total / 9600

Table 5.2 Break-event per month

One-time cost / 1200
Utility for cooking / 400
Gasoline / 1400
Total / 3000

From our cost analysis, one rice ball earned 16 dollars and one beverage in average earned 18 dollars. In other words, the break-event point was to sell 88 rice ball and drink per month. Assume the store had 80 customers and sold 65 combo (rice ball + drink) per day, they could earn 50040 dollars in a month if they worked 24 days.

Section VI Conclusion

In our marketing plan, high quality was our market segmentation. And the employees in Hsin-ChuSciencePark were our target market. Servicing one customer earned 34 dollars. We may need more space and more clerks to service more customers in order to earn more.