Waiter on Wheels - Coursework Example

 Acknowledgement It has been a great learning experience formulating this report. It has helped us understand the process of launching a new product and service. We hope the work done in this connection would improve our research skills and play a significant role in our future ventures. We would like to thank…. EXECUTIVE SUMMARY WAITER ON WHEELS aims to provide high quality food to our customers at the spot, with the most convenient ordering and payment system. Our business is half service and half product. Customers will place an order by either calling or sms-ing us on our numbers, telling us their exact location. Our job will be a speedy delivery! We are catering to those people who cannot manage to go out and have lunch during break hours. Wherever and whenever our customers need us, we will be one phone call away and we aim to provide our customers with delicious, healthy and hygienic food at moderate to low prices. THE BUSINESS We take great pride and care to provide you with the best food and great experience in our quick service business. The purpose to start this service is to serve people of new era with a different and the most competitive style. The prime purpose is to generate profit by providing superb customer services. Our aim is to provide the hygienic and delicious tastes that the customers have never tasted before. MISSION STATEMENT "Change the way, food is served” THE MARKET Market segmentation Our business is initially going to cater to the commercial market of London. This segment can be effectively reached and served. Target Market Our target market is all the consumers of London who prefers to stay put and have their food delivered to them on the spot. It can be both due to shortage of time or absence of conveyance. BUISNESS OBJECTIVES To generate profit by providing superb customer services. To be the leader in providing quality food items that fit into a balanced diet. To expand our business to cater to the market in other cities of England. Key to Success There are three major ways in which we will create an advantage over our competitors: Product identity, quality, and novelty Hygienic ingredients and good packaging Good sales attitude BUSINESS GROWTH Our business Waiter on the Wheels falls under the category of ‘Question Mark which means it has great market growth potential but its market share is still low. We need to invest in it to make it star. MARKET ANALYSIS The management team of Waiter on Wheels made sure that the R & D department carries out a market analysis for the ample understanding and comprehensive view of the characteristics of the target market, their and needs and wants. THE first step done to analyze the market and get a better marketing idea, a small survey was conducted. This survey was conducted to test the possible success of the launch of our service WAITER ON WHEELS. The questionnaire comprised of 10 questions this time and covered the areas of 4 P’s of marketing mix i.e. Product, Price, Promotion and Placement. Sample: The margin of error and confidence level was kept in mind while choosing the sample size. 1. Would you like to stay and have your food delivered to you during break hours? -YES -NO 75% would like to avail the service 25% would not like to avail the service 2. How many times would you avail our service in a week? 2.5% will take our meal once in a week 19% will take our meal 2 times in a week 27.5% will take our meal 3 times in a week 5.5% will take our meal 4 times in a week 45.5% will take our meal 5 times in a week 4. Would you like to become our club member and enjoy membership benefits e.g. discounted prices? -YES -NO 70% would enjoy our membership 30% say no to our membership facility 5. Would you like to avail our service for special occasions like parties and get-togethers? - YES -NO 82.5% would like to avail our service on special occasions 17.5% are not interested in our service on special occasions 6. Which do you prefer with meals? - Salad - Dessert 65% prefer salad with meal 30% prefer dessert with meal 5% prefer both (salad and dessert) with meal 7. Would you like your food delivered on the spot or have a fixed point of delivery? -On the spot -Fixed point 80% wanted to have food deliver service at the spot 20% prefer a fixed point from where they get the food deliver service 8. Which is more important to you? - Quality -Quantity - Service 70% wants quality from our food delivery service 5% wants quantity from our food delivery service 17.5% wants quick delivery service 7.5% wants all of them (quality, quantity, fast deliver service) 9. Time of service should be: LUNCH 1:00 pm – 2:30 pm 1:30 pm – 3:00 pm 70% like to have our service at (1:00pm-2:30pm) 25% like to have our service at (1:30pm-3:00pm) 5% are not satisfied with the timing of delivering service After the findings were analyzed and we became more aware of our consumers and also consumption, we went on to know more about out consumers and the behaviors that they may exhibit. MARKETING PLAN SWOT ANALYSIS Strengths Delivery of food on the spot Menu reflects demand for fresh and healthy food. Use of non-traditional channels. Staff training is structured and designed to assure rapid start-up and success. Convenience is an important factor oh this service Weaknesses Lack of trust of general public about order placing and then finally get their desired food item Opportunities Continue to Grow Business in the whole country Update advertising and promotion Improve Customer Service Model. Continue to revise and refresh menu offerings. Develop more partnerships with best restaurants of the city and deliver food items at reasonable delivery rates Threats Food contamination Competition. Bird Flu Business and marketing strategy We are providing value proposition more for less. This means will provide more value like hygienic food and good service against economical price. We are providing them membership offer, we will offer them discount and we will also provide them special meals at special occasions and parties. Promotion Promotion will be done by following two methods. 1. Advertising: We will advertise our products by brochure, banners and placard. We will also advertise by hosting a fan page on face book initially. 2. Sales Promotions: People will be given incentive to buy for sale promotion; we will offer our customers membership cards. Using membership card they can enjoy benefit of temporary reduction in price. We will also give benefits to our sales men. If they exceed the target we will give them bonus. Sales and Distribution Strategy We will employ sales personnel who will deliver the food and also act as the primary marketing channel. The type of the sales persons would be commissioned or telephone solicitors. Management plan and Financial plan  Break even analysis Investment: 2 scooters = 15,000*2 = 30,000 Kitchen/appliances = 15,000 Total investment = 45,000 Fixed cost: Salaries (chief / deliverymen) = 16,000 4 partners salaries (20,000*4) = 80,000 Variable cost: Utilities = 10,000/ month Petrol = 6,000/ month Packaging + groceries = 10, 66,000/ month Total cost = fixed cost + variable cost = (16,000 + 80,000) + (10, 66,000 + 6,000 + 10,000) = 11, 78,000 / month Variable cost / unit: V/C = 16,000 Days = 20 Units / day = 1,000 / units Units / month = 20,000 / month 16,000 = 0.80 / unit variable cost 20,000 0.80*1,000 = 800 / 1,000 unit’s variable cost Fixed cost / unit: F/C =96,000 Days = 20 Units / day = 1,000 / units Units / month = 20,000 / month 96,000 = 4.8 / unit fixed cost 20,000 4.8*1,000 = 4,800 / 1,000 unit’s fixed cost T/C per unit = F/C per unit + V/C per unit = 0.80 + 4.8 = 5.60 Or Unit cost = variable cost + fixed cost Unit sales = 0.80 + 96,000 20,000 = 5.60 Target return price = unit cost + desired return * invested capital Unit sales = 5.60 + 0.20*45,000 20,000 = 6.05 Break-even volume = fixed cost Price – variable cost = 96,000 6.05 – 0.80 = 18300 units Two-year cash flow forecast Year 1/month Year 2/month Receipts 65,000 85000 Payments Utilities 10,000 10,000 Petrol 6000 6000 Packages/ Groceries 60,000 60,000 Total Payment 76,000 76,000 Net Cash Flow (11000 ) 9000 Opening Balance (12000) 8000 Closing Balance 1000 1000 Two-year profit & loss forecast Year 1/month Year2/month Sales 75,000 85000 Costs of Good sold 60,000 62000 Gross Profit 15000 23000 Operating Expenses Salary 12000 16000 Petrol 6000 7000 Telephone 2000 2500 Depreciation 750 750 Total Expenses 20750 26250 Net profit before tax 5750 3250 Income Taxes 2000 2000 Net profit after tax 3750 1250 Two-year balance sheet forecast Balance Sheet Waiters On Wheels Year1 Year2 Assets Cash on hand 6,000 8000 Cash in Bank 12,000 14000 Account receivable 2000 4000 Fixed Assets Equipment and Fixtures 6,000 8000 Total Assets 26000 34000 Liabilities Current Liabilities Account payable 6000 8000 Notes payable 8000 1000 Total Current Liabilities 14000 18000 Long term Liabilities Mortgage Payable 6000 8000 Net Worth 6000 8000 Total Net worth and liabilities 26000 34000 All figures are in £. Assumptions: The financial picture of the business is quite encouraging.  We aim to heavily invest our own assets in the business to pay off the credit from the bank. Our credit line will of course be supported by our assets. We assume a fairly high-growth and acceptance of our business in London, given the lack of competition.   We assume that there would be no changes in technology to make our products immediately obsolete.  We assume access to equity capital and financing sufficient to maintain our financial plan as shown in the tables. We expect our profits to keep increasing over the next two years, as we establish a loyal customer base and acceptance of our business. References: Siciliano, G (2003), Finance for Non-Financial Managers. McGraw-Hill Verzuh, E. The Fast Forward MBA in Project Management.Wiley Baker, M (2004), ‘Marketing:Crit Persp V4’ Routledge. Kinnear, H, (1983). Principles of marketing. Scott Foresman. Hodgetts, R. Management: Theory, Process and Practice. W.B. Saunders Company Sweska, S (2009). BCG Matrix. Business and Finance. Luther, M (2001). The marketing plan: How to Prepare and implement it. AMACON. Westwood, J (2002). A practitioner Guide to Marketing Plan. Korgan. Cooper, S (2004). The One day Marketing Plan. McGraw Hill. Read More