滿飯全席 Curbside Restaurant

National Chiao Tung UniversityFaculty of Business Management

Final Report

“Fan Tuan Shao Che”

滿飯全席Marketing plan for curbside restaurant selling rice balls

StudentDamian Huba 9600426

SupervisorProf. Charles V. Trappey

June 2008

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滿飯全席 Curbside Restaurant

Contents

1. Introduction………………………………………………………………….. 3

2. Executive summary………………………………………………………….. 3

3. Business overview…………………………………………………………… 4

a. Market description

b. Product description

c. Competitive review

d. Distribution process

4. SWOT analysis………………………………………………………………. 6

5. Marketing strategy…………………………………………………………… 7

5.1 Short term…………………………………………………………………7

a. Positioning

b. Product Strategy

c. Pricing Strategy

d. Distribution Strategy

e. Promotional Activities

5.2 Long term…………………………………………………………………9

6. Forecast and financial analysis……………………………………………….10

7. Evaluation of results………………………………………………………….13

8. Appendixes………………………………………………………………….. 13

a. Appendix 1 – Presentation of co-branders

b. Appendix 2 – Cup design

c. Appendix 3 – Curbside restaurant design

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滿飯全席 Curbside Restaurant

1. Introduction

This marketing plan is hypothetical start-up for curbside restaurant. The restaurant

is selling typical Taiwanese breakfast called 飯糰小吃 (fan tuan xiao che) from the stand

situated in certain points of the Hsinchu City. In the following parts this marketing plan

will focus on development of the product, goals, strategies and financial analysis.

During research the name for the brand was discovered. After consultation with

Taiwanese I decided to put a name “滿飯全席” (man fan chen xi), what means “full

meal”. The sound of this name is close to “滿漢全席” (man han chen xi), what means

very delicious food for emperors in old time. Some Taiwanese were asked about the new

brand name and they answered that it is funny and they almost always related it to

delicious food.

In the following parts Man Fan, the name of the curbside restaurant, will be used.

2. Executive summary

Man Fan is a new curbside restaurant, in the first year lead by one person, which

is going to offer a traditional breakfast in street corners of Hsinchu City. The menu

consists of rice ball (fan tuan) and three available drinks such as soya milk, milk tea and

coffee with milk. Our main aim is to create good, high quality rice balls and drinks that

will be perceived by customers and society as a healthy, delicious and fresh made.

Therefore all of the products we use to prepare rice balls and we sell are branded. Co-

branding is one of another goal that we want to reach for the future cooperation.

The primary marketing objective is to achieve break-even point just after two

months and to finish the year with the annual revenues that exceeds NT$400.000. The

detailed financial analysis is described in the sixth part of this report.

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滿飯全席 Curbside Restaurant

3. Business overview

a. Market description

Potential market consists of consumers who are willing to eat out traditional rice

balls for the first or second breakfast, purchasing the product on the way to university or

driving to work and tend to patronize higher quality food. Student and workers are two

main targeted segments chosen because of customers’ needs, loyalty and their quantity.

Hsinchu City has big Science Park and adjacent two big universities and that creates

possibility to get huge market share.

The food market in Taiwan is in a mature level but there is still niche among tasty

and healthy products. Consumer can chose from different variety of night markets where

they can find a lot of snacks, but it is difficult to find traditional rice balls that answer to

customers needs. To get to know people’s needs we developed the list of needs of our

targeted segment (Table 3.1).

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滿飯全席 Curbside Restaurant

Table 3.1 Segment needs and benefits of traditional rice balls

Targeted

segment

Customer Need Corresponding Benefit

Students and

Workers

Healthy food

Fast and convenient

Warm, fresh and delicious

Appearance or presentation

of food

Selection

Customer service

Competitive pricing

Prepare rice balls and drinks only from

branded, healthy and well known

products

Selling in the convenient location from

sheltered stand friendly to motorbike

drivers even in a rainy days; fixed and

easy price (NT$25 and NT$50) so there

will be no problems with change

High quality wooden boxes that keeps

warmth for a long time, fridge and

every day fresh prepared food.

Customize well designed and clean

curbside restaurant

Refers only to three most desirable

drinks offered in our menu

Focus on client and his needs to

impress them with the level of attention

that they receive.

All products will be competitively

priced relative to comparable

convenient stores

Source: Self development

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滿飯全席 Curbside Restaurant

b. Product description

Man Fan will produce homemade rice balls from the high quality products with

the old recipe purchased from experienced in doing fan tuan people. The brands we are

going to cooperate are well known on the market. The list below presents first developed

contacts with well known suppliers that we discovered on the market (Appendix 1):

e. Soya milk – Wei Chiuan

f. Fried bread sticks – Hsin Tung Yang

g. Milk - Rui-Sui Fresh Milk

h. Coffee – Nescafé Gold

c. Competitive review

There are some individual competitors on the market with a little bit cheaper and

low quality rice balls and convenient stores that sell rice ball with higher price. It makes

us unique in combination of high quality rice balls for reasonable price lower than in

convenient stores.

d. Distribution process

Distribution of our products will be held by the Guang Fu Road, close to night

market so cars, motorbikes and pedestrian can stop to pick them up very fast or eat on the

spot.

4. SWOT analysis

The following briefly SWOT analysis captures the key strengths and weaknesses within

the curbside restaurant, and describes the opportunities and threats that is facing Man

Fan.

Strengths

Strong relationships with suppliers that offer high-quality ingredients.

Friendly name associated to food, so that can attract people.

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滿飯全席 Curbside Restaurant

Excellent staff, in a first year one person, who is highly trained, prepared, very customer

attentive and knows perfectly the marketing strategy.

Great curbside restaurant space that is bright, hip, clean, and located in a perfect location,

close to the night market with big amount of people passing by every day.

High-quality rice ball and drinks offers that exceed competitor’s offers in quality,

presentation, and price.

Good organization of production and transportation process.

Co-obranding with well known producers.

Weaknesses

Man Fan name lacks brand equity.

A limited marketing budget to develop brand awareness.

Lack of experience in the market.

Opportunities

Market in mature level with no awareness about existence of Man Fan.

The future ability to prepare our products on demand that will decrease the price of

production and increase incomes.

The society becomes rich and spend more money on healthy food.

Threats

Competition from other curbside restaurants in the night market.

Possibility of copying our idea by other entrepreneurship.

External factors influencing disposable income spent on eating out.

Factors influencing the raise of products components from our co-branders.

5. Marketing strategy

The marketing strategy is mainly based on some key points such as differentiation on the

market, cooperation with well known brands and good organization of production and

transportation process. As our goal we want to achieve a big market share that in a long

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滿飯全席 Curbside Restaurant

term will allow us to register our brand and spread Man Fan, not only in Hsinchu City,

but in whole Taiwan.

Our primary business target is students and workers in Hsinchu City. As we defined

before their needs, we’re going to try to respond to them. The marketing strategy is

divided into two parts short term strategy that includes the first year, and long term

predictions over one year.

5.1 Short term

a. Positioning

Using uniqueness of our curbside restaurant and offered products we want to look

different in the eyes of customers. Distinction from other rice ball providers and

competitors is made to reach broaden market segment. It is targeted to students and

workers and the marketing strategy will focus on the fresh and full of energy rice balls

with tasty drink, that makes the customer feel full and happy at the beginning of the day.

b. Product strategy

All features of the product were mentioned before in “Product description” section. Rice

balls will be sold from the high quality wooden box, which keeps them warm for the

operating hours. Client will receive plastic bag branded by Man Fan bag with fan tuan

inside. Drinks will be served in special motorcycle friendly cups (see Appendix 2 for cup

design).

The long term vision is that during cooperation some contacts with co-branding

companies will be developed so we could minimize the cost of branded bags. It can be

reached in lieu of putting their logos on our curbside restaurant and packages.

c. Pricing strategy

The “cost plus mark-up strategy” will be used. To set our price we are not looking at the

market to look for the price, but we look at our own cost structure. The revenue we want

to make is average 50% of the profit, no matter if it is only rice ball or rice ball with

drink. This price is not out-of-line with customer expectations, because competitors such

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滿飯全席 Curbside Restaurant

as convenient stores have higher price and lower quality. Audience should perceive this

product as a healthy and well made for reasonable and simple price.

There are only two prices NT$25 for one rice ball and NT$50 for one rice ball and drink.

It makes it easier to give the change and to not to have a lot of deal with dirty money.

In the long term we see possibility to make a deal with our products suppliers so the

profit will be higher, but the price will stay the same.

d. Distribution strategy

The first year of operating the only one channel of distribution will be used – our

curbside restaurant (see Appendix 3). The working hours will be from 7.00 – 11.00 when

the first and second breakfast is eaten. All of the products will be ready to sell, just need

to be put into the package.

e. Promotional activities

Curbside restaurant will have some information about the products, pictures, and calories

so it makes awareness of bought product. Rice balls main slogan that appears on the

product will be “start your day the right way”. It refers to the nutrition of our products, its

freshness and delicious taste.

Promotional activities have as a main goal create close relation with customers and try to

make client satisfied after purchasing and eating our products. For example we are going

to remember as much names of our customers as possible. It will influence positively on

word-of-mouth marketing that primarily we are going to base on. The information about

new brand will be spread among our present friends to attract them also.

The second part of our promotional activities will be the Internet. Entering forums Man

Fan brand will be promoted by location and tasty fan tuan.

Long term promotional activities include registration of brand, promotion by advertising

on internet and other media, support of some events to make higher awareness of Man

Fan brand, etc. The future studies of Man Fan will show what exact promotional

activities will be used.

5.2 Long term

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滿飯全席 Curbside Restaurant

As the overview of long term predictions for next year key points were developed:

a. Development and investment of saved money

b. Possible investments:

Creation (copy) of another stand or stands with the same rules (second-year

objective: network of 10 curbside restaurants)

Product diversification from rice balls to another typical Taiwanese dish (just in

other curbsides)

Studies about market share (how to acquire new) and upgrade of marketing plan

Creation and registration of own brand

More strict collaboration with co-branders (higher discounts, advertising for

advertising – we put their logo on our stands so they put logo in their shops)

Limitation of co-branders (to be less depending from them)

New promotional aspects

Minimization of total cost as a result of experience

Preparation of rice balls to order for hotels, restaurants, and other places

6. Forecast and financial analysis

Our stand will be located in strategic points which are close to universities and

main roads where usually employees pass while going to work.

As it was defined before the menu is very simple and there are two choices:

a. fan tuan

b. combo: fan tuan + drink (soya milk, milk tea, coffee with milk)

The first option costs NT$25 and the second one NT$50. Taking in consideration fixed

and variable costs our studies shown that the revenue equals to around 50% of the price,

giving in the first case NT$12.5 and in the second NT$25 of revenue.

Our assumption is that we shared days for good and bad. In a good day we should sell 50

fan tuan and 50 combos and in a bad day 10 units of each. The loan in amount NT$25000

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滿飯全席 Curbside Restaurant

is taken at the beginning to cover all of the fixed cost of opening our curbside restaurant.

Having this simple information the following price model was created.

Referring to the model we created into the class we can define our break-even point as a

cross cut of total cost (fixed cost plus variable cost) and revenue cost (look at the chart

below):

Figure 6.1 Break-even point analyses, self development, June 2008

Calculations:

1. PRICE

- Bad day

We count the profit for bad day

10 x 12.50 = 125

10 x 25 = 250

125 + 250 = $375 profit in a bad day

In one month we have 5 bad days so:

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滿飯全席 Curbside Restaurant

$375 x 5 = $1875 profit/month

- Good day

We count the profit for good day

50 x 12.50 = 625

50 x 25 = 1250

625 + 1250 = $1875 profit/day

In one month we have 19 good days so:

$1875 x 19 = $35625

- Total

In one month the profit is: 35625 + 1875 = $37500

In one year the profit is: 12 x 37500 = $450.000

$450.000 - $25000 (fixed cost) = $425.000 profit/year

2. QUANTITY

1 unit = $25 revenue

So monthly we have:

For bad day: (10 units + 10/2units) x 5 days in month = 75 units/month

For good day: (50 units + 50/2units) x 19 days in month = 1425 units/month

Monthly in total: 1500 units with revenue $25

3. BREAK-EVEN POINT

Profit in one month: $37500

Loan: 25000

Break-even point: after around 1.5-2 months (we have to remember about

additional material cost, maybe branding, different license or other unexpected

costs)

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滿飯全席 Curbside Restaurant

From the calculations we obtain results that our break-even point will be reached in

around 2 months. Taking in consideration some abrupt expenses such as damages, etc. we

are aware that the process of reaching break-even point could be moved in time up till 3

months.

7. Objectives and evaluation of results

We are planning close observation of customers and in following months try to customize

product that better response our customers’ needs.

8. Appendixes

Appendix 1 Presentation of co-branders

i. Soya milk – Wei Chiuan

j. Fried bread sticks – Hsin Tung Yang

k. Milk - Rui-Sui Fresh Milk

l. Coffe – Nescafé Gold

Appendix 2 Cup design

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滿飯全席 Curbside Restaurant

Features:

1) Size: 8oz. coffee cup with lid

2) Designed with a double wall

3) Material: single PE coated

4) Used for packing drinks, especially hot coffee

5) Different sizes available

6) With or without handle sleeves, with lids

Manufacturer

Taizhou Signal Daily Necessities Co., Ltd

Street Address : No.80-82, East Hengjie Road, Huangyan, Taizhou , Zhejiang , China

City : Taizhou

Province/State : Zhejiang

Country/Region : China

Webpage: http://signalpaper.en.alibaba.com/

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滿飯全席 Curbside Restaurant

Appendix 3 Curbside restaurant design

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滿飯全席 Curbside Restaurant

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