The Introdution To Food Industry Marketing Essay

The Introdution To Food Industry Marketing EssayFood is a basic need and viands for thought service manufacturing provide always continue in demand. This industry includes ingest ho utilise ups, dissolute foods, and cafeterias, catering opportunities, food carts, food trunks and the like.Filipinos love to eat. This love for food and eating is the major reason why the food industry has flourished well in the Philippines and why you imparting see a lot of restaurants and fast foods scattered both oer the country. These fast foods and restaurants can be topical anesthetic or international.Filipino food is considered as a unique mixture of Eastern and Western cuisines that mirrors the history of the country. It includes plates and formulation procedures from countries like China, Spain, Mexico and the United States. Even although Filipino food has been influenced by Eastern and Western countries, what makes it unique is the history, the society that introduced and adapted it and the people who accepted it into their homes and restaurants.Filipinos are not just into good food but the heart dining experience, good food is just a part of it. It is the way we feel when we are at bottom a fast food or restaurant. How it feels to dinner out with family or friends or even when youre by yourself. When choosing a restaurant or a fast food, customers usually check for the cleanliness of the place, freshness of the food, watched over premises, enough parking area, the mood, design and land of the place, and for some restaurants, even the music. The physical and emotional response is a resolve of all these factors. These can make the whole dining experience take better.A recent study shows that due to economic crisis, customers or consumers think that when it comes to food shopping, preparing and dining. They are not for weight loss or just eating out at fancy restaurants but they choose what they eat for wellness. They want to a greater extent nutrition for their money and are more conscious of it.INTRODUCTION OF FAST FOODFast food is food, which is ready and rund quickly at outlets called fast-food restaurants. A restaurant is an organization that serves ready food and beverages on t up to(p)s set for individuals, pair or bigger groups, to be consumed primarily on the location. Restaurants serve a wide garland of food at a particular cost given on its menu card for on or off the place consumption. These include eating establishments where consumers are served at walkup or make away ordering counters for either on or off twist consumption.However, most good restaurant serve food at tables to their consumers for on-premises consumption. Many of the restaurant duress, contribute improved their annual gross sales many times over, well away from the limits of the tables they can served each day, by contribution hot well packed meals through free home delivery service on orders placed through a telephone call. It is multi-billion pes o businesses that continue to grow up quickly in many countries.A fast-food restaurant is a restaurant characterized both by food which is supplied quickly after ordering, and by smallest service. The food in these restaurants is often cooked in mass in advance and reserved hot, or reheated to order. Many fast-food restaurants are part of restaurant chains or license operations, and standardized food are shipped to each restaurant from central locations. In to age world, going to a restaurant has more to do with socialise then to just having a snack.Only a few decades reverse restaurants were specially target families, which situation does not hold true today. Nowadays, even children regularly eat out with their friends, on their own. Therefore, restaurants are not just about food of ambience. On a worldwide level, they are an important supplier to the miserliness while on personal levels it provides us with a place to easily connect with others.OBJECTIVESTo set up an existence a sa fortunate local fast food outlets and get a market share in Philippiness fast food industry.To make FRHANP frya destination spot for malls.To poke out into a number of outlets by near years, and sell the franchise to neighboring metropolitan cities.Mission Our main goal is to be one of the most successful fast food outlets in Philippines, starting with one retail outlet located inside a major shopping mall as a market tester.Our main focus will be serving naughty-quality food at a great lever.COMPANY SUMMARYWhat is FRHANP Fries?FRHANP Fries sellsgastronome fries in a conewith achoice of paste. We use the concept of Belgian Fries, where the fries are all made from fresh potatoes and deep- hot up twice. Our outlet also provides excellent and friendly customer service to deport the ambience of fun, energetic and youthful life way of life.Youthful and fresh surroundingsWe will re-createsuccessful establishments, such(prenominal) as Jamba Juice and Starbucks, which represent th e majority of our core target market, between 18 to 35 years of age. Our inclose will lark display cooking of our featured Fries from cutting to frying. Our customers will also be able to read our in-house brochures in regards to all knowledge about Fries and our featured sauces as well as other products like burgers and shakes. Our storehouse will be decorated with fast food setting, such as a bright counter and display menu on the wall.Quality FoodEachstore willoffer nothing but freshly fried Belgian fries, sandwiches, Burgers, Shakes and variety of unique blend sauces, all served with old-fashioned home-style care.Open EverydayOur store is open everyday from 10 am to 9 pm.Variety, variety, varietyA different selection of burgers and sandwiches will be featured every three months and we will also change our Indian soda flavors and shakes to co-occur with our fries.Start-up SummaryThe retail outlet will be rented at one of the target location shopping malls. Our preference is S pace A, for the main reason of stretching larger traffic.Startup requirements will be financed through owner investments. http//www.bplans.com/fast_food_restaurant_business_plan/images/3ea7e45235fa4bd5ad6f924765b00e74.pngStart-up RequirementsStart-up ExpensesRs.Kitchen and Fixtures1144800Furniture and Interior874500Legal159000Rent795000Packaging and Stationary450500Contingencies222600Total Start-up Expenses3646400Start-up Assets0 bullion in Required2650000Other sure Assets0Long-term Assets0Total Assets2650000Total Requirements6296400ProductsWe want to focus only on selling fries. Alcoholic drinks will not be sold in our outlet, as FRHANP Fries promotes a healthy and positive Philippino lifestyle. Instead, we will offer Idian Soda and Sandwichesto complement the fries.The dips for Belgian style fries can also be served with sandwiches, theyare available in more than 20 flavorsPesto Mayo Traditional SambalSatay pulp Korean BBQTeriyaki pulp naughty Chili pulpThai Chili Ketchup Garl ic DipCreamy Wasabi MayoRoasted black pepper MayoLava CheeseBlack Pepper pulpCurry KetchupBarbecueJalapeno KetchupCaribbean IslandsCompetitive ComparisonFARHANP Fries has several advantages over its leading competitorsWe expect a high degree of enthusiasm and offer a fun store with friendly staff that reflects the companys youthful and energetic culture.Supporting merchandise items that support the companys brand building.Our fried potato is made 100% fresh, compared to most fast food outlets that use frozen fries.Our dipping pulp is also made fresh without preservatives.Our innovative packaging will be more entertaining than our competitors. come withCleanValueMerchandisingHang OutSimpleFreshCoolPop CultureFAHANPyesyesyesyesyesYesyesyesMcDonaldsYesYesYesYesYesNoYesYesKFCYesYesNoYesNoNoYesNoSubWayYesYesYesNoYesYesNoNogross revenue LiteratureFARHANP Fries will use advertising and sales programs to get the word out to customers.1500 color brochures to be distributed throughout destin ation shopping mall and facilities in-store, cinemas, area eateries, information during the grand opening.Half page powder store reviews in Philippiness lifestyle magazines that advertise the presence of the outlet.SourcingFresh potatoes will be delivered weekly by our distributor directly from the India . We also have an agreement withCompany to exclusively manufacture our Shakes and signature sauces.Future ProductsFor now, we will focus on selling fries and signature shakes, burgers and sauces. However, as we grow further, we will add impudent categories to our menu, such as Belgian Sandwiches and Buffalo wings.In the future, our growth strategy will be offering the franchise of our brand to food entrepreneurs in the Philippine region.Value MealSales of FRHANP Fries will not only generated from the selling of its famous Belgian Fries, but also will be generated by the conception of an innovative package menu called the value meal. It primarily consists of a combination of our fe atured Belgian Fries, sandwiches and Indian soda at greater value than selling at individual items. Further customization could be done by selling a bigger size of fries called Uber FRHANP to attract price afflictive customers.Market Analysis SummaryConsumer expenditures for fast food in Philippines rise during the end of the year 2012, followed by the recovery of Philippiness economy. The increasing number of new establishments such as fast food franchises, fancy restaurants and foodie bakeries around Philippines has shown a significant growth in this sector. Food spending is around 56% of total consumer expenditures in Philippines, and consumerspending on leisure and recreation made up of 13% of total consumer spending.Amuch broader appeal exists for weekend slots because those are the days when most of our core target market enjoys the mall going activities.Age Youngsters, single, currently enrolled in college and high school.Family unit We will also appeal to families (young fa milies) with children. sex activity We will target both sexes, with a slight skew for males due to their lower attentionto dietary concerns.Income We will appeal to the medium income individuals and to all in the lower medium income bracket.According to a recent public accompany of people 15 45 years old, 80% of those interviewed like fast food. 90% of them like fast food on a regular basis, and 10% of them claimed that they like fast food very much, or love fast food. The survey also provided the following particular reasons for the increasing popularity of fast foodPeople have 52 weekends and three long holidays a year. Most of Philipino love to windowpane shop, and when they do strolling around the shopping district, they need a quick bite to accommodate their activities.White-collar workers in offices have stopped bring lunch, and enjoy chicken, hamburger, pizza or other fast food joints in the vicinity.Parents give more money to kids and students to buy lunch. Fast food is na turally their first choice, because of the brand building effort that heavily targets their age group.Eating out still remains as Philippinos common habit of life. They do not perceive fast food is a luxury,and they enjoy it by bringing their family, especially if they have smaller kids, in the environment of the western-style fast food outlets.Marketing StrategyOur strategy is base on serving our markets well. We will start our first outlet as a market tester that could become a model of the expanding number of outlets in the future. Concentration will be on maintaining quality and establishing a strong identity in the local market.A combination of local media and local store marketing programs will be utilized at each location. Local store marketing is most effective, followed by print advertising. As soon as a concentration of stores is established in a market, then broader media will be explored. By providing a fun and energetic environment, with unbeatable quality at an accept able price in a clean and friendly outlet, we will be the talk of the town. Therefore, the execution of our concept is the most critical element of our plan. set StrategyOur pricing strategy is positioned as generic, representing that 200 INR is the average consumer spending for a snack or light lunch in Philippines. supplement the volume of fries, Indian Soda, Sandwiches, Burgers and signature style sauces to be sold, we are serving the majority of Philippino.Management SummaryThe initial management team depends on the founders, with teeny-weeny back-up. As we grow, we will take on additional help in certain key areas. Part of our basic philosophy will be able to run our executive management as a knowledge sharing fellowship. We will not add additional overhead until absolutely necessary. This will mean that the initial staff support team will have to work extra. By doing this, we will keep our overhead as low as possible, allowing us to adequately staff our outlets. This will a lso allow us and future business partners to recoup investments as quickly as possible and enjoy a higher return.At present time, FRHANP Fries is being owned by its 6 founders.Management TeamFRHANP Fries is currently the creative idea of its hexad founders. As the company is small in nature, it only requires a simple organizational structure. Implementation of this organization form calls for all four individuals to make all major management decisions in addition to monitoring all other business activities.As we expand into multiple locations, each location will have a primary site coach-and-four.Organizational StructureFuture organizational structure will include a director of store operations when the store locations exceed four units. We hope that this individual will come out of the ranks of our stores management. This will provide a supervisory level between the executive level and the store management level. Possible positions might be added at a later date include marketing manager, purchasing manager, controller, human resources, RD and administrative support team.Personnel PlanOur initial employees willinclude twocashiers, two cooks and two bike boys per location, with one of each on the premises during open hours. This is considered an nonsuch personnel number for a food outlet the size of our own. Each employee will work for 38-40 hours per week.Personnel Plan (Approx.)Personnel planYear-1Site manager0cashiers1,90,800Cook1,52,640Bus boy1,24,020Total people12Total payroll4,67,460Start-up FundingCurrently, the company is owned by the original 6 founders, who each will contribute Rs.30,60,000 for the same amount of share, 25%. This will more than cover start-up requirements, and provide the business with a cash pillow to use for expansion over the first year.Start-up FundingStart-up Expenses to Fund36,46,400 Rs.Start-up Assets to Fund26,50,000Total Funding Required62,96,400AssetsNon-cash Assets from Start-up15,90,000 money Requirements from Start-up 26,50,000 currency Balance on Starting get a line37,53,600Total Assets79,93,600Liabilities and bullyLiabilitiesCurrent Borrowing0Long-term Liabilities0Accounts Payable (Outstanding Bills)0Other Current Liabilities (interest-free)0Total Liabilities0CapitalTotal Planned Investment42,40,000Loss at Start-up (Start-up Expenses)(36,56,400)Total Capital1,83,60,000Total Capital and Liabilities37,53,600Total Funding44,00,000Projected Profit and LossAs the Profit and Loss shows,FRHANP Fries will run at a profit or loss for the first year, using up some of the cash reserves initially invested by the founders. As sales increase, we will expand into new locations to aggressively spread brand recognition. This increase in visibility will allow us to take up less expensive locations off of Orchard Road, while maintaining our flagship operation, the first store, in aprime spot.http//www.bplans.com/fast_food_restaurant_business_plan/images/ae0e382ef4e34aa6b836c9db8ae7becb.pngWe recommend using Bus iness Plan Pro as the easiest way to create graphs for your own business plan.Year-1 (Rs.)Sales1,47,95,639Direct Cost of Sales32,83,721Other Costs of Sales0Total Cost of Sales32,83,721Gross Margin1,15,11,971Gross Margin %77.81%ExpensesPayroll46,74,600Marketing/Promotion5,30,000Depreciation0Rent92,22,000Utilities1,35,150 refreshing location setup13,25,000Total Operating Expenses1,58,86,750ExpensesProfit Before Interest and Taxes(4374779)EBITDA(4374779)Taxes Incurred0Net Profit(4374779)Net Profit/Sales-29.57%Projected Cash FlowThe following chart and table show the Projected Cash Flow for FRHANP Fries.http//www.bplans.com/fast_food_restaurant_business_plan/images/bb9ce2d1db1244898fee2612c6fa41d6.pngYear-1 (Rs.)Cash ReceivedCash from trading operationsCash Sales14,795,639Subtotal Cash from Operations14,795,639Additional Cash ReceivedSales Tax, VAT, HST/GST Received0 upstart Current Borrowing0New Other Liabilities (interest-free)0New Long-term Liabilities0Sales of Other Current Assets0 Sales of Long-term Assets0New Investment ReceivedSubtotal Cash Received14,795,639ExpendituresYear-1Expenditures from OperationsCash Spending4,674,600Bill Payments12,946,045Subtotal Spent on Operations17,620,645Additional Cash SpentSales Tax, VAT, HST/GST Paid Out0Principal refund of Current Borrowing0Other Liabilities Principal Repayment0Long-term Liabilities Principal Repayment0Purchase Other Current Assets0Purchase Long-term Assets0Dividends0Subtotal Cash Spent17,620,645Net Cash Flow(2,824,953)Cash Balance35,928,647Projected Balance SheetFRHANPs project company balance sheet follows.AssetsYear 1 (Rs.)Current AssetsCash35,928,647Other Current Assets0Total Current Assets35,928,647Long-term AssetsLong-term Assets0Accumulated Depreciation0Total Long-term Assets0Total Assets35,928,647Liabilities and CapitalCurrent LiabilitiesAccounts Payable1,549,826Current Borrowing0Other Current LiabilitiesSubtotal Current Liabilities1,549,826Long-term Liabilities0Total Liabilities1,549,826Paid-in C apital42,400,00Retained Earnings(36,46,400)Earnings(4,374,779)Total Capital34,378,821Total Liabilities and Capital35,928,647Net Worth34,378,821