Running Head: MARKETING PLAN OF A CURBSIDE RESTAURANT

Marketing Plan of A Curbside Restaurant

9631503
National Chiao Tung University

Contents
1. EXECUTIVE SUMMARY..........1
2. CURRENT MARKETING SITUATION........1
2.1 Market Description.......1
2.2 Product Review...................2
2.3 Competitive Review.........3
3. OBJECTIVES AND ISSUES..........4
3.1 Short-Term Objectives (less than one year)....4
3.2 Long-Term Objectives (more than one year)...........5
3.3 Issues........5
4. MARKETING
STRATEGY....5
4.1 Positioning.......5
4.2 Product Strategy.......6
4.3 Pricing Strategy....6
4.4 Place Strategy.......6
4.5 Promotion Strategy ......6
4.6 Marketing Research......6
4.7 Marketing Organization.......6
5. BUDGETS...................7
6. CONTROLS.........7
7. APPENDIX 1.......8
8. APPENDIX 2...............9

List of Tables
Table 1. Selected Competing Products and Pricing...4

List of Figures
Figure 1. Our logo......1
Figure 2. Break Even Point...........7
Figure 3. Our curbside stall..........8
Figure 4. Our design of apron and hat........8

MARKETING PLAN

1. EXECUTIVE SUMMARY
I am preparing to launch a curbside stall to sell rice ball. Our rice ball curbside stalls
name (brand) is Vital Power () Rice Ball. Because breakfast is a vigor source in one day,
eating the breakfast can help people be clear-headed and response quickly. And we focus on
using fresh, nutrition and healthy materials to make our products. Having our rice ball is not
only good to health but also have more power to do things. Therefore, we name our stall Vital
Power. Despite there are many competitors in this market, we can compete because our
product offers a combination of features at a value-added price. We are targeting specific
segments in the consumer. The primary financial objectives are to achieve first-year profit of
$424800, and break-even early in 21 days. Figure 1 shows our logo. And our designs of
curbside stall, apron and hat are show in Appendix 1.

Figure 1. Our logo.

2. CURRENT MARKETING SITUATION

Because it is low to enter the threshold, more and more people are entering this domain
to sell the rice ball. We have to find some ways to compete in this market.
2.1 Market Description
Now because the idea rises to keep in good health recently, everyone is more concerned
about his health gradually. Therefore, we aim at this point to use fresh, nutrition and healthy
ingredients to make our products.
Recently, a news report said that eating the breakfast can help people be clear-headed
and response quickly. For this reason, the market has this opportunity for me to sell the
breakfast-rice ball.

MARKETING PLAN

Our primary consumer target is high school, college, and graduate students, and our
secondary consumer target is people who go on duty and inhabitant around the region who
want the rice ball to bring energy to let them pay attention on their work.
2.2 Product Review
Our rice ball offers the following standard features:
(1) To make the rice ball have to use glutinous rice to be formed oval-shaped. (Before our
plan to open our curbside stall, I have ever been to ask other seller, he said that to make
the rice ball cant only use Chi-Shang Rice (the general rice we have), because the
mouthfeel of rice ball is not good.) Purple Rice (black glutinous rice) has abundant of
vitamin A, vitamin E, iron and protein; it is nutritious and especially good to eyes
maintenance. And co-branding rice with Purple Rice which grows in pollution-free
Guangfu Township in Hualien County, the most famous purple rice brand in Taiwan.
Therefore, our rice of the rice ball uses the mix of Purple Rice and glutinous rice.
(2) We have two popular flavors to choose, sausage and tuna. And our basic ingredients are
powder meat, salt brown egg () and fried bread stick.
(3) We have three types of the drinks, coffee, tea and soy bean milk. For the coffee and tea,
there is an option to add milk.
(4) Co-branding sausage and powder meat with Shin-Don-Yang which provides the quality of
the sausage and powder meat, and tuna with famous can AGV () Tuna Slice which
is made by using precious longtail tuna () that have abundant "DHA", and soy
milk and fried bread stick with Yong-He Soy Milk () which provides the fresh
and clean soy bean milk and fried bread stick, and eggs with CAS organic eggs (
), and coffee with GuKeng () coffee and is made with a nice machine, and tea with
Assam black tea () made in Sun Moon Lake () which is the famous
Taiwans black tea, and milk with Weichuan () Linfongying () milk which is
more fresh, pure and delicious.

MARKETING PLAN

First-year profit is projected to be $424800. During the second year, we plan to make
more options of our varieties of rice ball.
2.3 Competitive Review
Currently, key competitors include:
(1) Sanco Sanco is a store type which offers high level ingredients and more flavors of rice
ball, and more options of their products. Their store is very clean. Their products are
different from traditional rice ball, they are toward Japanese type. Their packing is fine. A
distinguishing feature of their rice ball is that their rice balls all have to be baked. Because
this step, the customers have to wait more time to get their products. And finally their rice
ball is covered with a baked laver. Their price is higher than others and the rice balls size
is smaller than traditional type.
(2) Goosex2 Onigigiri Goosex2 Onigigiri is a store type which offers high level ingredients
and more flavors of rice ball, and more options of their products. Their store is very clean.
Their products are different from traditional rice ball, they are toward Japanese type. And
finally their rice ball is covered with a baked laver. Their packing is fine. Their price is
higher than others and the rice balls size is smaller than traditional type.
(3) Pirate Pirate is a store type which offers improved traditional type rice ball. Their most
special feature than traditional type is that they dont use fried bread stick in their rice
ball. They use a pork chop, pickled vegetables and powder meat. Their rice balls size is
big. Because they are in the traditional breakfast store which is in a night market, they
dont emphasize clean and sanitation. Their price is more than other traditional rice ball.

Despite this strong competition, Vital Power Rice Ball can carve out a definite image
and gain recognition among the target segments. Our popular taste, and emphasizing clean
and sanitation, we let our customers have the cleaner and nutrition products and a happier

MARKETING PLAN

buying experience than other curbside retailers, and the lower price and faster than other
stores. Above-mentioned are the critical points of differentiation for competitive advantage.
Table 1 shows a selection of competitive rice ball products and prices.

Table1. Selected Competing Products and Pricing

Competitor
Sanco ()

Features
Toward Japanese type, different from

Price
$35~$60

traditional rice ball, packing is fine, more

flavors of rice ball, and more options of
their products, their rice balls all have to be
baked and is covered with a baked laver,
price is higher.
Goosex2 Onigigiri ()

Toward Japanese type, different from

$35~$55

traditional rice ball, packing is fine, more

flavors of rice ball, and more options of
their products, their rice ball is covered
with a baked laver, and price is higher.

Pirate ()

Improved traditional type, they dont use

fried bread stick, they use a pork chop,

Upper
than $45

pickled vegetables and powder meat, size

is big, price is higher.

3. OBJECTIVES AND ISSUES

3.1 Short-Term Objectives (less than one year)
During Vital Power Rice Balls initial year on the market, we are aiming total first-year

MARKETING PLAN

profit of $424800.
3.2 Long-Term Objectives (more than one year)
We plan to add flavors to five varieties. We retain two basic types, and add three
innovative types. These three new types are retained or canceled according to customers
reaction, and the products cost and profit every month. If customers can accept and we find
out the cost is low and profit is high, and we will retain this flavor. If customers reaction is
high, but the profit is not high, and we will also retain this flavor with the idea of quick
returns and small margins. And finally, we can find the flavors the public favor.
3.3 Issues
Because it is low to enter the threshold, more and more people are entering this domain
to sell the rice ball. We have to find other innovation to improve our stall to compete with
them. More and more competitors offer multiple flavors of their rice ball. Therefore, we plan
to increase flavors in the future. Maybe we can offer two basic flavors and three innovative
flavors. According to customers reflection, we change and improve our flavors. Finally, we
can find the best flavor to customers.

4. MARKETING STRATEGY
Vital Power Rice Balls marketing strategy is based on a positioning of product
differentiation. Our primary consumer target is high school, college, and graduate students,
and our secondary consumer target is people who go on duty and inhabitant around the region
who want the rice ball to bring energy to let them pay attention on their work.
4.1 Positioning
Having our products differentiation, we are positioning our products as the happier and
can carry energy to customers. We let customers have the cleaner and nutrition products and a
happier buying experience than other curbside retailers, and the lower price than other stores.
Our products can not only bring happy to customers but also health. Therefore, the marketing

MARKETING PLAN

strategy will focus on health, delicious, happy buying experience of customers and lower
price.
4.2 Product Strategy
Our products, including all the features described in the earlier Product Review section.
We will plan to sell more varieties of the rice ball during the following year. Building the
Vital Power Rice Ball brand is an integral part of our product strategy. The brand and logo
(Our logo is used a colorful sun means vigor) will be displayed on its packaging, and
reinforced by reputation marketing () with customers in the introductory marketing
campaign.
4.3 Pricing Strategy
The price is $50 NT for a rice ball and a drink. Single item price is $25 NT.
4.4 Place Strategy
Well set our stall around the schools and office buildings, such as near National Cheng
Kung University, etc.
4.5 Promotion Strategy
We have not yet established a brand or image in the marketplace. We will address this
area with promotion which is reinforced by reputation marketing with customers.
4.6 Marketing Research
Using research, we are identifying the specific features and benefits that our target
market segments value. Feedback from experimental (to sell a trial flavor), questionnaires,
and personal interviewing (direct interviewing with our customers) will help us develop the
more varieties of flavors. We are also measuring and analyzing customers attitudes toward
competing brands and products. Finally, we will use customer satisfaction studies to gauge
market reaction.
4.7 Marketing Organization
There is only one person, me, to be the boss of Vital Power Rice Ball. I have good

MARKETING PLAN

management knowledge from NCTU and I can bear hardships and hard work, therefore, I
think I can endure everything in the future.

5. BUDGETS
We assume we open 6 days per week, and there are 24 days per month. Our fixed cost is
$24000, and cost per rice ball (combo) is half of revenue. We assume there are 5 bad days
and 19 good days in a month, and bad day sale is 20 units, good day sale is 100 units. Combo
is 50% and DRK or RB is 50% of bad day sale and good day sale. Interest rate is 5% per
year. Therefore, we have to sell 42 combos per month to cover the loan in the first year. We
need 21 days to meet the break-even point, and have to sell 1,344 units in these days. And
total first-year profit is $424,800. Figure2 shows the break-even point. (See Appendix 2.)
Total Revenue
$

Break Even Point

Total Cost
Total variable Cost

50,400
25,200
0
1,344
Figure2. Break
Even Point.

Total Fixed Cost

Sales volume

6. CONTROLS
We are planning tight control measures to closely monitor quality and customer service
satisfaction. This will enable us to react very quickly in correcting any problems that may
occur. Other early warning signals that will be monitored for signs of deviation from the plan
include monthly sales and monthly expenses. We are developing contingency plans to address
fast-moving environmental changes such as new competition.

MARKETING PLAN

APPENDIX 1

Figure 3. Our curbside stall.

MARKETING PLAN

Figure 4. Our design of apron and hat.

MARKETING PLAN

APPENDIX 2
Fixed Cost:
Road Side Stand
10,000
Signage
1,000
Anning
1,000
Gas Bottle/Liquate
2,000
License
2,000
Apron (2) and a hat
3,000
Cooking equipment or Cooking tools 5,000
Total

24,000

Assume:
6 days per week 24 days per month; Interest = 5% (per year)
Price:
Single Rice ball $25, Drinks $25, Combo $50
Business Loan:
Monthly fixed cost = ($24000 1.05) /12=2100 (loan)
$210050=42
We should sell 42 combos per month to cover the loan in the first year.
Assume:
Cost per rice ball (combo) 1/2 revenue
Bad DaySale 20 units
Good DaySale 100 units

50% Combo
50% DRK or RB
50% Combo
50% DRK or RB

Q1: How long to break even?

10

MARKETING PLAN

Bad Day
Combo

Bad Day
RB or DRK
(10*50+10*25)*5 = 3750
(50*50+50*25)*19 = 71250

Good Day
Combo

Good Day
RB or DRK

(3750+71250) * (1/2) *12 (months) = 450000 (Total variable cost per year)
24000*1.05 = 25200 (Total fixed cost per year with interest)
If it becomes break even after X years, then
X*12* (3750+71250) = X*450000+24000*1.05
X=0.056 per year, 0.056*365=20.44
We need 21 days to meet the break-even point.
Break-even point: Y (sales volume)
Weighted-average contribution margin of one unit sale: 0.5*25+0.5*12.5=18.75
Total Fixed cost = 24,000 (1+5%) = 25,200
18.75*Y= 25,200; Y=1,344
We can sell 672 single rice balls and 672 combos to break even.
Break even Sales: 672*50+672*25= $50,400
Total Revenue
$

Break Even Point

Total Cost
Total variable Cost

50,400
25,200
0
1,344
Q2: How much profit at end of year one?

Total Fixed Cost

Sales volume

(3750+71250) *12 =900000 (total revenue per year)

900000-25200-450000=424800 (profit at the end of year one)

11