Chef vending mpp

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<ul><li> 1. January 2003This sample marketing plan has been made available to users of Marketing Plan Pro,marketing planning software published by Palo Alto Software. Names, locations andnumbers may have been changed, and substantial portions of text may have been omittedfrom the original plan to preserve confidentiality and proprietary information.You are welcome to use this plan as a starting point to create your own, but you do nothave permission to reproduce, publish, distribute or even copy this plan as it exists here.Requests for reprints, academic use, and other dissemination of this sample plan shouldbe emailed to the marketing department of Palo Alto Software at marketing@paloalto.com.For product information visit our Website: www.paloalto.com or call: 1-800-229-7526. Copyright Palo Alto Software, Inc., 1998-2002</li></ul><p> 2. Confidentiality AgreementThe undersigned reader acknowledges that the information provided by_________________________ in this marketing plan is confidential; therefore, reader agreesnot to disclose it without the express written permission of _________________________.It is acknowledged by reader that information to be furnished in this marketing plan is in allrespects confidential in nature, other than information which is in the public domain through othermeans and that any disclosure or use of same by reader, may cause serious harm or damage to________________________.Upon request, this document is to be immediately returned to _________________________.___________________Signature___________________Name (typed or printed)___________________DateThis is a marketing plan. It does not imply an offering of securities. 3. Table Of Contents1.0 Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12.0 Situation Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 2.1Market Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . 32.1.1 Market Demographics . . . . . . . . . . . . . . . . . . . . 42.1.2 Market Needs . . . . . . . . . . . . . . . . . . . . . . . . 42.1.3 Market Trends . . . . . . . . . . . . . . . . . . . . . . . . 52.1.4 Market Growth . . . . . . . . . . . . . . . . . . . . . . . . 5 2.2Industry Analysis and Distribution . . . . . . . . . . . . . . . . . . . . 6 2.3Market Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 2.4SWOT Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72.4.1 Strengths . . . . . . . . . . . . . . . . . . . . . . . . . . 72.4.2 Weaknesses . . . . . . . . . . . . . . . . . . . . . . . . . 82.4.3 Opportunities . . . . . . . . . . . . . . . . . . . . . . . . 82.4.4 Threats . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 2.5Competition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 2.6Products Offered . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 2.7Keys to Success . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 2.8Critical Issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . 103.0 Marketing Strategy . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . 103.1Mission . . . . . . .... . . . . . . . . . . . . . . . . . . . . . . 103.2Marketing Objectives ... . . . . . . . . . . . . . . . . . . . . . . 103.3Financial Objectives . ... . . . . . . . . . . . . . . . . . . . . . . 113.4Target Markets . . . ... . . . . . . . . . . . . . . . . . . . . . . 113.5Positioning . . . . .... . . . . . . . . . . . . . . . . . . . . . . 113.6Strategies . . . . . ... . . . . . . . . . . . . . . . . . . . . . . 123.7Marketing Mix . . .... . . . . . . . . . . . . . . . . . . . . . . 123.8Marketing Research . ... . . . . . . . . . . . . . . . . . . . . . . 124.0 Financials 13 4.1Break-even Analysis . . . . . . . . . . . . . . . . . . . . . . . . . 13 4.2Sales Forecast . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 4.3Expense Forecast . . . . . . . . . . . . . . . . . . . . . . . . . . . 145.0 Controls15 5.1 Implementation . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 5.2 Marketing Organization . . . . . . . . . . . . . . . . . . . . . . . . 16 5.3 Contingency Planning . . . . . . . . . . . . . . . . . . . . . . . . . 17 4. Chef Vending1.0 Executive SummaryIntroductionChef Vending (Chef), LLC is a family start-up business that specializes in importing vendingmachines and commercial food and beverage equipment from Spain. Chef will penetrate thevending industry with innovative, first to market, high quality vending machines. Chef willestablish our own vending routes in the Southern and Central Florida region. Chef also plan toparticipate in the $321 billion food and beverage industry by supplying high-quality innovativeequipment. With the establishment of one strategic alliance with a national brand name in eitherof their vending lines, Chef expect to easily exceed the financial forecasts.The CompanyChef Vendings mission is to be the leader in introducing innovative, quality vending machines andrestaurant equipment to the market. Through close customer contact and excellent relationships,Chef will meet the needs of the customers.Chef Vending, LLC, is a privately-held Florida corporation and maintains an office and a smallwarehouse in a mixed-use area of North Miami Beach, Florida.Three of the four investors in the company have full operational responsibility. Mauricio Ordonezand Javier Palmera, the co-founders, have both entrepreneurial and industry experience. CharlesMulligan brings operational management, marketing, and financial skills to the operation.The ProductsChef Vending will have two product lines, each for the various markets it serves. The vendingproducts line will include the unique Sandwich Express machine, a Fresh Orange Juice machineand the Multi-line Dispenser. The restaurant equipment products will be toasters, espressomakers, and fresh juice squeezers.Most of the products, such as Sandwich Express are innovative machines that have functions andadvantages not found in todays common vending machines, thus providing Chef Vending acompetitive advantage over more established competitors.Chef plans to aggressively enhance the existing line in the future. The immediate plans are toinclude a larger model of Sandwich Express that will offer a greater variety of sandwiches, and amore diverse product line, such as pizza. Other products are in the exploratory phase.Chef is also pursuing supplier relationships with large nationally-branded juice and sandwichmanufacturers, to customize the machines to their products. This would enable Chef Vending tosupply machines to national companies and allow them to brand the machines with their productlines.The MarketRevenue from U.S. vending consumable merchandise was $24.5 billion in 2002, an increase of4.9% over 1998, according to the Automatic Merchandiser magazines State of the VendingIndustry Report in August 2000. Small companies, with sales of less than $1 million, accountedfor 5.8% of the market and had projected sales for 1999 of $1.35 billion. Three quarters of allvending operators are classified in the small category.Within the industry, snacks and cold beverages are the largest product segments and these twocategories are the driving force of the industry. The food category grew at a rate of 7% last year,according to the Automatic Merchandiser. Cold storage machines grew at an even moreimpressive 42% in 2001, with this growth coming at the expense of shelf-stable products.According to the National Restaurant Association, revenues from restaurants are expected toreach $321 billion in 2001. This is a large and healthy industry in our economy, and suppliers tothis industry are expected to benefit from this growth. Page 1 5. Chef VendingAll of this indicates that a fast moving, innovative company that can introduce enhanced productsto vending machine/restaurant equipment customers stand to gain significant market share in arelatively short time span.Chef Vending will market its machines to three distinct market segments including; distributors,branded sandwich and juice manufacturers, and end users. For the restaurant equipmentbusiness Chef will focus on restaurants and hotels and equipment supply companies.Financial ConsiderationsThe company has an initial start-up cost of approximately $157,000 of which $125,000 will comefrom a ten year SBA loan. Short-term borrowing will provide Chef with an additional $2,500 andthe rest will be provided by investment capital.Annual Sales Forecast $3,000,000 $2,500,000 $2,000,000End users $1,500,000Distributors $1,000,000 $500,000$0 2003 20042005 Table 1.0: Sales ForecastSales ForecastSales2003 20042005End users$1,098,780 $1,543,221$1,934,887Distributors $439,512 $617,288$773,955Total Sales$1,538,292 $2,160,509$2,708,842Direct Cost of Sales2003 2004 2005End users $439,512 $617,288 $773,955Distributors$175,805 $246,915 $309,582Subtotal Cost of Sales$615,317 $864,204 $1,083,537 Page 2 6. Chef Vending2.0 Situation Analysis Chef Vending is in their first year of operation. Their products have received strong demand from initial contacts with end users and distributors. Marketing will be critical to generate significant demand for the products. The basic market need is for high quality, innovative vending machines as well as restaurant equipment.2.1 Market Summary Chef has captured good information about the market and knows a great deal about the common attributes of the target customers. This information will be leveraged to better understand who is served, their specific needs, and how Chef can best communicate with the customers. Target Markets End users DistributorsTable 2.1: Target Market Forecast Target Market Forecast Potential CustomersGrowth 200320042005 2006 2007 CAGR End users5%2,457 2,580 2,7092,8442,986 5.00% Distributors 4% 353637 38 40 3.39% Total 4.97%2,492 2,616 2,7462,8823,026 4.97%Page 3 7. Chef Vending2.1.1 Market DemographicsThe profile for Chef Vending consists of the following geographic, demographic, and behaviorfactors.Geographics The immediate geographic target is the Southeast United States. A 750 mile radius is in need of the products. The total targeted population is 2,492.Demographics End users and distributors. The distributors are typically $ million plus revenue businesses. The end users typically have at least 30 employees in their company. The distributors serve higher end restaurants. The end users are looking for a higher quality vending machine product instead of thecurrent, not healthy, poor quality product machines currently available.Behavior Factors The end users have high regard for their employees and are looking for a way to offerthem a high quality food product. The distributors are tired of the current limited selection of high quality equipment and arealways on the lookout for new and innovative equipment to add to their product line. The target customers are looking for a way to differentiate themselves from theircompetitors, and unique products are one useful way of doing this.2.1.2 Market NeedsChef Vending is providing its customers with a wide selection of innovative vending machines andrestaurant equipment. Many of the products have first to market features not found oncompetitors equipment. Chef seeks to fulfill the following benefits that are important to theircustomers. Innovative features- there are lots of vending and restaurant equipment on the market,customer demand innovation as a competitive edge. High quality machines- Equipment is expensive and customers cannot deal well with downtime when equipment needs to be repaired. High quality food products- Vending machines are not normally synonymous with highquality food products. Chef Vending is changing this perception. Page 4 8. Chef Vending2.1.3 Market TrendsGrowth rates in both the vending industry and the restaurant industry remain strong. This growthis fueled by the changes in the workplace and workforce that are causing workers to consumemore of their meals away from home. Away from home food sales are expected to increase by53%, according to NAMA.As more and more consumers eat away from home, the demand for higher quality is alsogrowing. Vendors are now offering a full line of packaged frozen meals in their machines. Marginswill increase as premium prices are being placed on branded, high-quality products.Demographic trends are affecting the industry. A large group of young adults, who mainly grewup on fast food, have emerged as an economic force. This groups perceptions on fast food,technology, and vending, will have a positive impact in the vending business. Furthermore,overall population growth rates, and immigration trends particularly, will also have a tremendouseconomic impact on the vending industry. Much of the growth in both of these areas will be in theSoutheast, where Chef Vending is poised to capitalize on these trends.Market Forecast3,5003,0002,5002,000End users1,500 Distributors1,000 500 0 200320042005 200620072.1.4 Market GrowthStudies by Automatic Merchandiser reflect an industry growth rate of approximately 4.8% overthe last five years, matching the overall growth of the U.S. economy. Page 5 9. Chef Vending Target Market Growth 5.00% 4.00% 3.00% 2.00% 1.00% 0.00% End users Distributors2.2 Industry Analysis and Distribution The U.S vending industry is divided into three main segments:1. Operators- Companies that buy and place vending machines on their routes, sell the product and service the machine, and range from small family businesses to large national companies.2. Manufacturers- Companies that manufacture machines for sale to operators.3. Distributors- The link between the manufacturer and the operator. Supplies the market with both machines and products for operators. The food and beverage industry is divided into similar segments:1. food and beverage Establishments- This segment covers the entire spectrum of bars and restaurants.2. Suppliers- Companies that supply the establishments with all of their food, paper, and equipment needs.3. Supply Houses- Acting as a distributor, these firms supply an area with their required supply needs. Distribution in the vending industry typically runs through a distributor. These distributors will carry a brand of machine for sale in a defined geographic region. In some instances, manufacturers sell direct to operators or end users. Another form of distribution is to be a supplier to a nationally branded company. Similar distribution patterns are established in the food and beverage industry.Page 6 10. Chef Vending2.3 Market Analysis Revenue from U.S. vending consumable merchandise was $24.5 billion in 2001, an increase of 4.9% over 2000, according to the Automatic Merchandiser magazines State of the Vending Industry Report in August 2000. This figure includes both machines and products. Small companies, with sales of less than $1 million, accounted for 5.8% of the market and had projected sales for 2001 of $1.35 billion. Three quarters of all vending o...</p>