Transcript Threat of Entry

Gluten-Free
Food Truck
Jenna Eastman, Daniella
Comito, Shreve Cameron &
Yikun Liang
Agenda
Situation Analysis
Marketing Goals and Strategy
Marketing Program
Financial Projections
Situation Analysis
 Gluten
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Free Food Truck
Mobile, convenient food vendor
Markets gluten free and healthy meals and snacks
Quick, easy, quality food
Advocates healthy eating, eco-friendly, recyclable
packaging
Targets customers of all ages, backgrounds
especially for the health conscious and those with
a gluten allergy
Industry Trends
Food Trends
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Less cooking
Baby boomers – quick and easy options
Gen Y – gourmet, ethnic, spicy, adventurous palette
Three meals a day with in between snacks
“Prescriptive Eating”
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Gluten free is healthier
Indicator of higher quality
Helps to address hyperactivity/autism
Gluten allergy/intolerance
Celiac disease
Technology
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Gen Y : early 20’s young professionals
Ordering Online, instant delivery
Paying via smart phones
Social media
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A way for customers and businesses to communicate and share
information
Be aware of food truck timings and locations
(Packaged Facts, 2011) (Sloan, 2012) (Myrick, 2011)
Resources
Easy to start but difficult to maintain
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Truck : $30,000 -$80,000
Permits
Food
Storage
“Gluten-free food truck is a great idea for a mobile
food truck because there is not that many of them
and healthy eating is now a trend which should
attract a lot of people.”
Five Forces Analysis
Threat of Entry
Low
•Will not attack other
food businesses
•However, food
businesses can be a
threat if they catch
up with similar trends
Threat of Substitutes
Moderate
•Not many gluten free
trucks offered
•However, there are
other gluten free,
vegan, low calorie
options elsewhere
Degree of Rivalry:
High
•Health conscious,
convenience, price
right is very
competitive
Bargaining Power of
Buyers
Moderate to High
•Food businesses are
fighting to appeal,
and attract
customers
•Lack of switching
costs for customers
Bargaining Power of
Suppliers
•Moderate
•Switching costs are
low
•Finding low prices for
higher quality
• jenna put something
here TT.TT…
SWOT Analysis
Strengths
Mobile Convenience
Small staff, with minimal training
Already prepared food
Community building business
Weaknesses
The size of the truck, no kitchen space
Only Gluten-Free offers limited options
No sit down area, always grab and go
No consistent location, difficult for advertising
Opportunities
Generation Y likes thing to be easily
accessible
Advertising Technology
Add locations easily
Many suppliers, choose prices of food
“Free From” Trend, gluten-free is
become very popular to those even
without allergies
Threats
Parking Regulations
Wants varying food on a day to day
basis
Economic recession, leading to
people wanting to eat in
Health Regulations
Cooking Technology
Marketing Goals
 Expand
locations; acquire three or more
permits for different locations
 Sell 3,000 smoothies in one year to see if
this new product is profitable
 Break even on initial investment
 Expand awareness by creating a website
 Sign up to participate in at least five
events around the Boston area
Marketing Strategy
 Demographics:
Gen X and gen y,
mostly students and
workers in the
urban area.
 Psychographics:
Consumers value
being healthy and
have an active
lifestyle.
Target Market
Current Market:
Students and
workers in the
urban area that
are outside of their
buildings walking
around in need of
a snack or meal.
Potential Market:
Tourists and
pedestrian or
future new
locations; College
campuses outside
of the city,
Cambridge,
Fenway and
Newbury St.
Points of Difference
 Gluten-Free:
Meals are healthy and
appeal to people with allergies.
 Options: People can get full meals,
or just grab snacks and beverages.
 Small Portions: This satisfies the small
portion trend, people are eating
smaller meals.
Positioning Statement
“For the active, urban-goers, who need
a quick and healthy meal or snack, the
Gluten-Free Food Truck is the place for
that convenient food or beverage that
will give you energy and have you
feeling great because it’s made with
non-gluten ingredients.”
Marketing Program
Product Strategy
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A traveling truck that offers gluten-free foods
 - Providing quick and tasty meals & snacks
 - It brings convenience since it comes to you
 - Quick because it is located on the street
Benefit Message “The Gluten Free Food
Truck is a quick, affordable, and tasty food
provider that comes to you!”
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Healthy Food Choice! Leaving you feeling
good with energy
 - Giving you a cheaper/lunch snack option
 - Making meals easier and more convenient
 - Satisfying the new trend to eat smarter
Price Strategy
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- Standard markup pricing strategy was used
to determine the price that we wanted
our products to be sold at
- The standard market up pricing strategy will
ensure that we are pre-setting a profit margin
and applying a cost to the products
- After SMP was used to determine the costs
of the products target profit pricing was
employed in order to balance revenue and
cost when setting the prices for the food truck
products
Price Strategy for Smoothies
 Variable
cost per unit (UVC): $2
 Fixed costs (FC) per yr. for smoothies: $12, 000
 Expected unit Sales of Smoothies: 3, 000
 Desired markup on sales: 10%
 $12,000/3,000
=4
 41/1-10% = 6/.9 = $6.66
Distribution Strategy: Market
Coverage Strategy
 Mobility
is a major advantage for the this
new business. We are able to focus on a
small area with a large customer base
which will ensure that this business will be
successful
 Being on time and full stocked for when
the food rush comes each day
Distribution Strategy: Channel Design
 Direct
customer service
 Marketing advantage to target several
locations because it is a mobile business
 Targeting Longwood Medical area
because there is a large target audiencecollege students, high school students,
and business professionals
Marketing Communications:
Media & Advertising
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Different communication mediums such as
Facebook, Twitter, and other social media
websites will be an affordable and efficient way to
gain brand recognition
These mediums will ensure that our business will get
noticed via people reposting and commenting on
our Facebook page and links that are related to
our products
Social media is a great way to advertise and
market a business but other forms of advertising
can also help gain recognition as well newspaper ads, pamphlets, and direct mail will
also be implemented
Marketing Communications:
Trade and Sales Promotion
 Trade
and sales promotion will lean on
communication media for brand
awareness
 Press Release to inform potential
customers in Boston, specifically
Longwood area
 Promotional deals within the first couple
months of the launch of the Gluten Free
Food Truck
Monitoring & Control: Goals
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9/1/12 - 12/31/12 = obtain truck that is entirely
equipped with all necessary permits
1/1/13 - 3/28/13 = design menu, gather
ingredients, and implement social media
awareness
4/1/13 - 5/15/13 = get cleared by fire department
& health inspectors
5/15/13 - 9/1/13 = start business in permitted areas
in the city & hire employees
9/1/13 - year 2 = update truck, update menu,
continue to use social media to gain as much
recognition as possible
Evaluation and Control
 Set
goals to maintain progress
 Created a SWOT analysis to prepare for
any threats or weaknesses that could put
a halt in the business
 Anticipated any problems that could go
wrong with the truck such as technical
issues… planning ahead is key in order to
prevent any upcoming issues
Financial Projections
Financial Statements
 Fixed
Costs: $12,000/10%= $120,000
 Total Variable Cost: 3000x$2/(10%)=
$60,000
 Total Revenue: 3000x$6/(10%)= $180,000
 Breakeven
Point Units: 2,553.2
 Breakeven Point Revenue: $171,064.4