RETAIL BUSINESS

PLAN PROJECT
Natalie Brasch
Aramark Dietetic Intern 2015-2016

Outline
Overview
Statement of Purpose
Mission Statement
Business Objectives
Company Summary
Market

Market

analysis
Market Segmentation
Target Market

Strategy
Marketing

strategy
Resource review
Financial data

Evaluation
Conclusion

Overview

A business plan was developed to implement a retail marketing strategy

in a hospital cafeteria

When formulating the current business plan, the following tasks were
performed:

Exploration of the Main Line Health (MLH), Bryn Mawr Hospital (BMH), and
Aramark mission and culture
Market analysis
Development of a marketing strategy
Financial planning
Recipe selection and nutritional analysis
Resource selection, including ingredients, equipment, and labor
Implementation and evaluation of a promotional event

Statement of Purpose
Purpose: To design a promotional event at Bryn
Mawr Hospital that utilizes an emerging food
trend to meet needs of clientele that are not
currently met by our cafeteria.
Identify an emerging trend in food service
Identify missed opportunity for maximum
profitability
Maintain alignment with the combined mission
of Main Line Health and Aramark

Mission Statement
Mission of Main Line Health:
To provide a comprehensive range of safe, high-quality
health services, complemented by related educational and
research activities, that meet healthcare needs and
improve the quality of life in the communities we serve.
Mission of Aramark:
To deliver experiences that enrich and nourish lives.
Cohesively, both mission
statements focus on improving the
quality of life of those served.

Business Objectives
GOAL #1: To increase retail sales during
cafeteria lull with a health-focused promotional
event at Bryn Mawr Hospital
GOAL #2: To increase % of total daily sales
contributed during cafeteria lull with a healthfocused promotional retail event at Bryn Mawr
Hospital

Company Summary
Bryn Mawr Hospital (BMH)
Nonprofit community teaching hospital
Established in 18931,2
319 beds1,2
In 2014:
14,935 admissions
1,415 fulltime employees
39,389 volunteer work hours1,2
U.S. News & World Report named BMH one of
the best hospitals in the Philadelphia area in
20121,2
1.
2.

Bryn Mawr Hospital. Main Line Health Web site. http://www.mainlinehealth.org/brynmawr. Published 2015. Accessed October 23, 2015.
Bryn Mawr Hospital Facts- FY 2014. Main Line Health Website. http://www.mainlinehealth.org/oth/Page.asp?PageID=OTH008904. Published 2015.
Accessed October 23, 2015.

Company Summary
ARAMARK
Maintains a management contract with all Main Line Health facilities
Has partnered with BMH since 2000
Patient food service
Retail
Vending
Catering services
Environmental services
Uniforms
Mailroom services
Strives to Design and Deliver3
Offering:
CUSTOMIZED RETAIL DESIGN
CONCEPT DEVELOPMENT
STRATEGIC RETAIL BRAND PARTNERSHIPS
that provide innovative solutions tailored to fit each unique hospital
3. MarketConnect Research Findings for the Main Line Health System. Aramark Corporation. April 2010.

Market Analysis
Researching the market:
1.
2.

3.

4.
5.
6.

Research emerging trends in food service

Research competing food service
establishments
Gain insight into caf clientele from retail
manager
Review current items available in the cafeteria
Review current sales patterns in the cafeteria
Gain insight into caf clientele from customer
close-up survey

Market Analysis
Emerging trend in food service: SPECIALTY BEVERAGES

Smoothie industry is growing4

Annual growth of 2.9% between 2010-2015

Growing need for convenient, healthy snacks
Consumers seek options for customization

Declining sales of soft drinks, sugary

juices and beverages

Top reasons for drinking smoothies5

Fruit intake
Natural ingredients
Convenience
Soda replacer

4. Juice and Smoothie Bars in the U.S.: Market Research Report. IBIS World Web Site.
http://www.ibisworld.com/industry/juice-smoothie-bars.html. Published May 2015. Accessed
October 23, 2015.
5. Smoothies: Consumer Knowledge, Attitudes, and Beliefs Around the Nutritional Content of Smoothies. SafeFood Research. https
://www.safefood.eu/SafeFood/media/SafeFoodLibrary/Documents/Publications/Research%20Reports/9354-Smoothies-AW_web-FIN
AL-030309.pdf

Market Analysis
Local competitors

Wawa
Starbucks
McDonalds
Subway
Dunkin Donuts
Zos Kitchen

Market Analysis
Market Comparison: Beverage Prices
BMH

Starbucks

Wawa

Dunkin
Donuts

Smoothie
King

McDonalds

Competitor
Average

Coffee
(12oz)

$1.19

$1.85

$1.35

$1.89
(14oz)

--

$1.15

$1.56

Fountain
soda
(16oz)

$0.89

--

$1.25

--

--

$1.69

$1.47

Bottled
soda
(20oz)

$1.49

--

$1.89

$1.79

--

---

$1.84

Bottled
milk (8 oz)

$1.19
(16oz)

$1.95

$0.79

$1.69

--

$0.99

$1.36

Smoothie
(12oz)

??????

$4.25

$2.99

$3.29
(16oz)
2.47

$5.29
(20oz)
3.17

$2.79

$3.13

SWOT analysis
Internal
Factors

Positive

Negative

Strengths
Convenient location
Visibility of nutritional information
Safety and sanitation standards
Variety of hot menu options, packaged
snacks, GF options
Great soups
Parking lot workers, Wawa closure add
to cafeteria traffic
Daily combo offerings + a la carte
Complimentary chips/pickle w/
sandwich
wrap option at deli
Variety of payment options
Great customer service
Large, loyal customer base
Low prices compared to competitors
Health and Wellness brochures and tips

Weaknesses
Lack of visibility to outsiders
Lack of marketing to outside
customers
Lack of appeal to outsiders
Staffing shortages
Limited salad bar offerings (small
variety of proteins)
Limited to Aramark recipes
Limited social media presence
Less convenient than competitors
(lacking delivery, call-ahead, online
ordering options)
Limited financial resources
Limited branding

SWOT analysis
External
Factors

Positive

Negative

Opportunities

Threats

Compete with additional local

offerings
Respond to emerging trends
to advertise menu items
(social media)
Change in customer
preferences (nutrition, ethnic
cuisine, specialty drinks)
Weaknesses of competitors
(lacking customer service,
high prices, unskilled labor)
Online or call-ahead ordering
of deli and grill sandwiches
Mobile payment options

Competitors may lower prices or

increase offerings
Number of employees that bring lunch
from home may change
Completion of parking lot construction
and Wawa renovations will cause a
decline in cafeteria traffic
Staffing issues (finding and hiring skilled
labor, paying competitive wages)
Possible increase in prices of raw goods
Weather conditions
Potential cafeteria remodel
New and changing barriers to
developing social media presence
(client contract terms, cost, staff
availability, lack of skill)

Market Analysis

Lull in cafeteria sales was identified between breakfast and lunch

rush (9:30am-12:00pm)
Lull presents a window of opportunity for increased profitability

Market Segmentation
Customer Close-Up Survey

Surveys and samples were distributed on October 20, 2015

64 surveys were completed and returned

Market Segmentation
Customer Close-Up Survey

Customers of the BMH cafeteria are 35-49 years old (38%) and female (69%)
Age

Gender

30

50
45

25

40
35

20

30
Number of Participants

15

Number of Participants

25
20

10

15
10

5
0

0
19-24 25-34 35-49 50-59

60+

Female

Male

No Answer

Market Segmentation
Customer Close-Up Survey

86% of customers of the BMH cafeteria are hospital employees, 25% are nurses
Relationship to BMH

8%

2% 3%

2%

Employe
e
Visitor

Department

Other; 11% Director, Manager; 14%

Administrative/Clerical; 14%

Physician; 6%

Student
Voluntee
r
86%

Other

Patient Services; 11%

Nursing; 25%

Support Staff; 11%

Technical; 8%

Market Segmentation
Customer Close-Up Survey

Frequent shoppers:
38% of customers purchase food in the cafeteria 4-5 times weekly
34% purchase food in the cafeteria 2-3 times weekly
Spending averages:
38% of diners spend $4-5 during each visit to the cafeteria
19% spend $5-6 per visit
17% spend $2-3 per visit

How many times per week do you purchase food in the BMH cafe?
30
25
20
Number of Participants

15
10
5
0
0-1

2-3

4-5

6-7

Number of times per week

7+

Market Segmentation:
Customer Close-Up Survey

Focus on an Emerging Trend in Food Service:

Specialty Beverages

38% of customers purchase specialty beverages 2-3 times per week

The majority purchase from Wawa, Starbucks, and Dunkin Donuts.

79% consume specialty beverages

as snacks
50% as an AM snack
29% as a PM snack

21% consume beverages as

meal replacements
16% as an AM meal replacement
5% as a PM meal replacement

Market Segmentation:
Customer Close-Up Survey

Focus on an Emerging Trend in Food Service:

Specialty Beverages
72% of customers would be very likely to purchase specialty beverages on-site

Target Market

The planned event promotion will be scheduled during a

morning sales lull

The planned event promotion will target customers of the

BMH cafeteria who are morning purchasers of specialty
beverages.

Aligned with the mission of Main Line Health and Aramark to

PROVIDE A HEALTHY AND NOURISHING
ENVIRONMENT, the promotional event will offer a nutritious
alternative to competitors specialty beverage offerings.

Business Objectives
Objective I: The promotional event will increase total sales
by 5% between 9:30-11:30am compared to total sales
average between these hours for all preceding Thursdays in
October.
Morning sales goal: $610.71
Objective II: The promotional event will increase % of total
daily sales contributed between 9:30am-11:30am by 5%
compared to average % of total daily sales contributed
between those hours for all preceding Thursdays in October.
% daily sales goal: 19.69%

Marketing Strategy
Retail manager posted flyers
throughout the cafeteria one
week prior to the event
Food service employees
communicated the event to
customers
Sampling took place one
week prior to increase
interest in and familiarity with
the product

Marketing Strategy
Promotional signs:
Ingredients and nutrition facts
Comparison between the BMH
smoothie and competitors smoothies

Clear plastic packaging

communicated quality, texture,
freshness, and color

Resource Review
Employee Resources

Contributing Employees:
Kelly Concannon
Greg Shaw
Tom Payne
Marc McGoldrick
Heidi Church-Underwood
Fernando Figuero
Hatem Eldoronki
Kyle DiVito
Natalie Brasch
Job Tasks:
Assessing sales data to develop goals
Making pricing recommendations
Choosing recipes
Ordering materials
Set-up, break-down, manning of station

Resource Review

Equipment Resources

1 blender
6 oz. spoodles
Refrigerator
Mirrored ice bin (catering)
Dome lids, $91.67/case, 1000/case
Plastic cups, $72.11/case, 1000/case
Straws, $69.23/case, 25 boxes/400 count

Food Resources

Bananas, market price

Frozen mango chunks, 20lb box, $39.86
100% apple juice, $12.76/case, 96 cups/case
Dannon low-fat 1% vanilla yogurt, $12.76/case, 16x32 ounce
Frozen Strawberries, $17.19, 10lb box

Resource Review
Financial
Resources

Event
Budget:
$171.23

Resource Review
Financial
Resources

Breakeven
Point: 39
SMOOTHIES

Resource Review
Financial
Resources

Breakeven Analysis Summary

Breakeven
Point: 39
SMOOTHIES
FC(SP-VC)=Breakeven Point
$18.91($2.95-$2.47)= 39 smoothies

Evaluation

Goal #1: Increase retail sales during cafeteria lull with a healthfocused promotional event at Bryn Mawr Hospital--- NOT MET

5% increase in total sales between 9:30-11:30am on October 29 th when compared to the

average of all preceding Thursdays in October
Needed to meet goal: $610.71 total sales
Actual sales: $552.90, $57.81 less than target

It would have taken sales of 20 additional smoothies to reach Goal #1.

Goal #2: Increase % of total daily sales contributed during cafeteria

lull with a health-focused promotional retail event at Bryn Mawr
Hospital--- NOT MET

5% increase in total daily sales occurred between 9:30am-11:30am when compared to

average % of total daily sales during this timeframe for all preceding Thursdays in October
Needed to meet goal: 19.79% daily sales
Actual % daily sales: 18.05%, 1.74% less target

Evaluation

Possible reasons for not meeting goals:

Limited advertising
Limited timeframe
Completion of Wawa renovation occurred the week prior
to promotional event loss of customers
Price mark-up
Current

promotion priced at 19% mark-up

May require mark-up of >30% for future success

Location visibility
Limited choice of flavors
No options for customization

Evaluation
On a positive note

Several customers verbalized post-event that they would be interested in a consistent

smoothie station in the BMH Caf
Compliments were made about the smoothie flavor and texture both during and after
promotional event
Customers verbalized that they would be likely to purchase smoothies again in the future
Several customers came back for a second smoothie during station duration
Customers stated that they intentionally came to the caf for a smoothie after their
coworkers mentioned the smoothie station

Future considerations:

Additional flavors/ options for customization

Smoothies that are made-ahead and placed in coolers daily
Longer station duration
Customers can plan ahead
Customers can become familiar with purchasing options for smoothies

Flavors should be assessed for sales success and customer satisfaction

Conclusion

It is clear that current customers have an

interest in specialty beverages.
The current promotional event concept may be
useful in the future to improve sales and
increase healthy offerings in the BMH cafeteria.

Thank You!

Any
Questions?