Centro Escolar University – Makati

Nutrition and Hospitality Management

Product Development and Presentation

Fat House

Presented By:

de Belen, Kharen Vianne C.

Mindanao, Don Darius T.

Candoy III, Oliver W.

Chapter 1

Company Name

Classmate Company

Company Description

Classmate Company will provide the customers a “safe, healthy and delicious

food” with “proper service with a smile.” This company were passionate about great

food, so they can create their own menu full of fresh & finest ingredients for the

customers to enjoy.

Mission

To provide each of our customers with the most satisfying burgers.

To ensure that each customers receives prompt, professional, courteous and

friendly service.

To maintain a clean, comfortable and well- maintained premises for our

customers and staff.

To thank each customers for the opportunity to serve them.

Vision

Classmate Company will continue to be the only choice of individuals by having

the best & mouth-watering burgers.

Objectives

Offer our customers a superior product, at a low price, and provide customer

service that is second to none.

To promote a profitable and sustainable business activity that meets the

customer’s needs.

To increase the company's market share

To gain the competitive edge.

To increase the company's role in relations to social responsibility.

To provide excellent customer service

Brand Name

FAT HOUSE

Logo

Chapter 2

Concept and Product Development

Type of Product

Goods

Product Category

Innovative

The Product: Burger

Burger patty. The Fat House offers 100% Angus Beef, 100% Beef, Fish and

Chicken Fillet. You can choose to have from one to three decks of patties

Buns. The Fat House has over 3 types of buns, the poppy seed, vegand and

brioche.

Cheese. No limit on how many cheeses you can put on your burger! We have

an assortment of cheeses to choose from. Take your pick from classic cheddar,

to bleu cheese, mozarella or garlic cream cheese.

Basic and Premium Toppings. This is the part where you get creative! The Fat

House offers a total of 12 different kinds of basic and premium toppings, it’s

entirely up to you to pick which ones will go into your burger. The selection of

toppings includes everything from bacon, to mushrooms, to chili con carne and

different types of onions; you can come up with hundreds of combinations! The

Fat House makes sure that all our toppings are organically grown; you can be

sure that none of what you’re eating is processed, even the patties! You can

also be sure that you get generous servings of your toppings on your burger.

Sauce. No burger is complete without a special sauce, and The Fat House

offers more than ketchup for you! Take your pick from steak sauce, buffalo

sauce, and bbq sauce, among others.

SWOT Analysis

Strengths:

Serves a lot of burgers that is typically not available in other fast food restaurant.

We are able to give really good customer care.

There are lots of varieties to choose from not like the other fast food or

restaurants

You can create your own burgers.

Weakness:

We only have one branch.

Opportunities:

Growing marketWe could improve our sales by producing more advertisements

on their products.

We could also open new branches in major city all around the worlds and some

rural areas.

Growing number of Burger enthusiasts

Threats:

A slump in the economy

The entrance of other service providers into The Fat House.

Faces threat from other major burger fast food restaurant such as McDonald's,

Zark’s, Burger King and Wendy's. McDonald's produced the highest percentage

sales among the three which is a threat. The cost to produce the burger during

inflation and lack of sales puts Fat House in a tough spot and other burger fast

food restaurant could take advantage to advertise new product and hence raising

their sales.

Concept Development

“Fat House” series the best of American cuisine. The most affordable burger in town!

Burger, or hamburger, is the name given to a grilled beef patty that is served in a bun,

along with condiments like ketchup, bacon, mushroom, steak sauce, mayo, buffalo

sauce, pesto, lettuce, tomato, onion, cheese, etc. With time, other ingredients, like

potato, vegetables, and chicken, have started replacing the beef in the patty. Burger is

a very popular fast-food of almost all the kids as well as college-goers. However, very

few have every thought about the history and origin of the delicious patty.

Competitor’s Analysis

These restaurants have concentrated on low prices and quick service to get

customers in the door. Also, they market heavily towards children and families as a

fun, safe place to eat.

Uniqueness of the Product

The uniqueness of this product is you can make your own Burger. Just list down the

topping, sauce, bun and cheese in a listing paper and enjoy making your own Burger!

Build your own Burger

BUN + PATTY + SAUCE + TOPPINGS + CHEESE

Chapter 3

Pricing

Pricing is the process of determining what a business will receive in exchange for its

products. Pricing to promote a product is a very common application.  It is an important

strategic issue because it is related to product positioning. Before the product is

developed, the marketing strategy is formulated, including the target market and

product positioning. There usually a tradeoff between product quality and price. The

price charged for products and services is set artificially low in order to gain market

share. Once this is achieved, the price is increased.

Price Determination

There are many ways to price a product and factors affecting in pricing a product. You

have o consider this factors in determining your price. First, your cost, this includes

fixed and variable costs associated with the product. Next your profit, somewhat

related to your costs, you should always consider how much money you are trying to

make above breaking even. This is business after all. The market demand, high

demand aimed to make your service more expensive. Conversely if there's hardly any

work around, you'll need to cheapen up if you want to compete. Environmental factors,

evaluate like your competitor action, understand legal constraints, etc. The marketer

needs to be aware of its competitive position. Also your service, what you provide for

our clients will also make a big difference to your price tag. This varied from the type

and level of service you provide. And lastly, your target clients, it often varies for

different people.

Costing

Product costing is the process of tracking and studying all the various expenses that

are accrued in the production and sale of a product, from raw materials purchases to

expenses associated with transporting the final product to retail establishments. You

need to accurately determine the costs incurred in producing the goods and services

that your company provides. Product Costing helps a company know the costs

incurred by its products in order to successfully manage its product portfolio. The

product cost accounting business process calculates cost of goods manufactured or

cost of goods sold broken down by each step of the production process. To launch a

product, there likely is at least a basic understanding of the cost involved otherwise,

there might be no profit to be made. The unit cost of the product sets the lower of what

the firm might charge, and determine the profit.

Detailed Pricing Strategy

Pursue the objective of quantity maximization by means of allow price. It is most

appropriate when:

Demand is expected to be highly elastic; that is, customers are price sensitive

and quantity demanded will increase significantly as price declines.

Large decreases in cost are expected as cumulative volume increases.

The product is of the nature of something that can gain mass appeal fairly

quickly.

There is a threat of impending competition.

As the product lifecycle progresses, there likely will be changes in the demand curve

and cost. Such as, the pricing policy should be reevaluated over time.

Pricing objective depends on many factors including production cost, existence of

economies of scale, barriers to entry, product differentiation, rate of product diffusion,

the company's resources, and the product's anticipated price elasticity of demand. To

set the specific price level that achieves this objective pricing method is necessary:

Set the price at the production cost plus a certain profit margin.

Set the price to achieve a target return-on-investment.

Base the price on factors such as signals of product quality, popular price points,

and what the customer perceives to be fair.

Base the price on the effective value to the customer relative to alternative

products.

Product Costing

Choose a Patty:

100% Angus Beef P95.00 Beverage:

100% Beef P85.00 Soda In-Can P30.00

Pork P70.00 (Coke, Royal, Sprite, Pepsi)

Chicken Fillet P70.00 Bottled Water P20.00

Fish Fillet P55.00

Choose a Bun:

Poppy seed P20.00

Oatmeal P10.00

Brioche P10.00

Choose a Topping:

Bacon P20.00

Caramelized Onion P10.00

Chili Con Carne P25.00

Pepperoni P20.00

Onion Rings P15.00

Sautéed Mushroom P10.00

Choose a Sauce:

Steak Sauce P30.00

Buffalo Sauce P30.00

Marinara Sauce P30.00

BBQ Sauce P30.00

Teriyaki Sauce P30.00

Garlic Mayo P20.00

Choose a Cheese:

Mozarella Cheese P20.00

Bleu Cheese P20.00

Cheddar Cheese P20.00

Garlic Cream Cheese P20.00

Packaging

Chapter 4

Place and Distribution

Chapter 5

Promotional Activities

T.V Commercials

Flyers

Tarpaulins

Promotional Activities

Promotion refers to marketing activities that create awareness of your business and/or

product. These activities get the word out so potential customers know what you have

to offer. The type of promotional activities you choose helps to create and affirm your

company image. Determine who your existing customers are, and define the target

market you want to reach. Know what you're truly selling, which is probably not only

your product or service, but also an intangible such as status, self-enhancement, or

peace of mind. These have been called the secret motivators of sales. Once you

determine the intangible benefits of your product or service, you'll have a clearer

sense of who else offers that intangible and what advertising approach and image you

need in order to compete successfully.

T.V Commercials

Television offers your message sight, sound, motion, color and all the special effects

you can afford. It is a powerful medium with sensual impact. TV ads are intrusive in

nature. The viewer does not have to be actively involved to receive your message.

Most TV is viewed at home. People feel safe at home and they aren't exposed to what

others think. However, to advertise on TV, you must produce a spot or pay to use one

produced by someone else. Production fees on top of the cost of air time makes TV

spots cost prohibitive to many advertisers. Messages get "zipped" as viewers click to

other channels and "zapped" as viewers mute them or turn them off.

Flyers

Advertising using flyers is a cost effective way of delivering your product or services to

your potential customers. Ad flyers are usually handed out on the street, near LRT or

MRT stations, wherever there are lots of human traffic. Almost all of us have been

handed an ad flyer at some point especially at malls. It’s not uncommon for someone

to accumulate handfuls of ad flyers just by strolling in the mall. Most flyers being dis-

tributed in malls are about various food promos and agents selling real estate. Your ad

reaches lots of people, many of whom see it repeatedly as they travel regular routes.

However, it's hard to reach a specific audience. You might be able to target a neigh-

borhood, but can't be more specific than that and it's hard to measure its effectiveness.

Tarpaulins

Advertising is a type of persuasive message that is designed to motivate consumers to

buy a product.  The advertising industry uses specific techniques to appeal to their tar-

get audience. Tarpaulins are usually big and splashy messages attract attention. Using

this medium you must be short and to the point. It has impact and eye-catching but

your creativity is inhibited by space limitation and it may become weathered and van-

dalized.