Executive Summary Mama Love’s Kitchen catering is a family owned and operated soul food catering company that serves the greater Wichita, Ks market. Mama Love owns the business while sons Robert Love and Reggie Love manage it. Mama Love’s offers decorative, colorful, and home cooked food options as well as desserts for those with a taste for a great down home meal. The services provided are parallel to none in the soul food catering market which is almost none existent. Many have preconceived notions about soul food, thinking it is only bought and sold to African American customers, these assumptions are incorrect and there is a great demand for soul food for many nationalities. Mama Love’s catering will penetrate the soul food market with exuberant life. Mama love skills to develop creative catering methods are placing them at the forefront soul food catering industry. Mama Love’s advanced skills in the industry with owning a restaurant gives them the best chance to earn profitability by the first week. Situation analysis Mama Love’s Kitchen catering is a branch off from Mama Love’s Kitchen Restaurant. Great marketing is going to be 1 intricate in the success and profitability of this business. Mama Love’s offers great down home foods catering to an array of events including weddings, parties, and mass social events. Mama Love’s is looking to create a market where one does not exist. The market need is high quality, exceptional, creative, and decorative soul food catering, servicing the greater Wichita population. Mama Love’s will meet the large demand with creative innovative ways in preparing and serving soul food meals. Mama Love’s possesses an abundant amount of information about our market. Mama Love’s will diligently work and process information to find ways to easier understand our target market, their needs and what we can do to improve our service. Target Markets Target Middle class customers Upper class customers Other 2 The pie graph above represents our target market. In researching the target market we have learned that in the year 2000 Wichita had a population of 344,284. Being in the year 2007 it is estimated that there are 120,000 more people. 45% of the chart is middle class customers; this is where majority of our market is. While upper class customers make up 35% of our markets. While the rest of the community holds the last 20%. Geographic Our immediate target market is the greater Wichita, Ks area with a population estimated to be 464,000. A 50 mile geographic area for catering services. Our target market population is 53,248. Demographics Families Household income over 48,000 Churches Market Needs Mama Love’s Kitchen Catering is very interested in learning and catering to market needs. Creating a market and knowing market needs is difficult, ye t Mama Love’s feels they have found several points of concentrated interest. 3 Selection: Wide array of soul food menu items. Equipment: Top of the line in order to keep food fresh and warm when traveling long distances. Customer Service: Unparallel service catering to the customers every need with undivided attention. Pricing: Mama Love’s vows to have intense competitive pricing with all catering companies Trends With introducing a new market, there are no trends that directly relate to our soul food catering market. Yet the catering market has developed trends that may indirectly or directly help Mama Love’s develop their catering service. Food Quality: Mama Love’s is a quality organization. Catering high quality food is our main priority. High quality food will produce better soul food which will increase revenue. Creativity: Mama Love’s as well as other catering services have improved catering by applying new and creative ways in preparing and serving food. Catering has transformed eating simple meals into extravagant and lavish dining experience. SWOT Analysis 4 Strengths Strong community ties because of Mama Love’s Kitchen the restaurant. Customer Service Great Food Great Customers Have catered parties to test the market Customer allegiance Weaknesses Limited marketing and financial resources No professional Family owned and operated only limited employees schooling Opportunities Penetrating a none a nonexistent market The ability for franchising Threats High cost of foods Economy taking a dive Other soul food catering services trying to penetrate the market 5 Employee wages High liability insurance Product Focus Points of difference What sets Mama Love’s Kitchen Catering apart from others is their relationship with the customers. Our great food is secondary to the great customer service that we try to display and provide. Soul food is rarely sold by caters because everyone does not know how to prepare it well. Our unique decorations and creative preparations of meals place Mama Love’s Kitchen Catering at the upper echelon of the catering food market. Position of product Mama Love’s Kitchen Catering Serving the greater Wichita area is a soul food catering service. Weddings, parties, church conventions, and meetings are venues Mama Love’s entertain. Soul food often gets misconstrued as black people food rather it is food that originated in the south and should be considered as southern food. Collard greens, macaroni and cheese, brisket, ribs, cornbread, roast, chicken are all key ingredients in making great soul food. Mama Love’s will need a base location in order to cook for our customers, located in old 6 town Mama Love’s is in the heart of the community and city. Our wide selection of food allows us to benefit our customer and supply there needs. The service provided is fairly expensive but, for what a customer receives it is very affordable. Mama Love’s has a plan on how to execute these objectives. We would like to have repeat customers from Mama Love’s Kitchen Restaurant, increase prices by 30%, put the competition to rest with excellent service as well as food. Mama Love’s has a strategy of providing availability and accessibility in greater Wichita. Mission Mama Love’s Kitchen Catering mission is to provide stellar customer service, with excellent soul food. Mama Love’s is in the catering business for longevity. Our service is parallel to none and plan to progress into the future with service that surpasses all in the catering market. We plan to corner and owned the soul food catering market, and will do what ever it takes to achieve this. Set Marketing Program Mama Kitchen Catering has developed a marketing mix very strategically. The marketing mix consists of the basic functions product, price, promotion, and place or distribution. 7 Product: Our product is preparing and serving good soul food with innovative and creative culinary works. Price: Mama Love’s pricing is catered actually to the amount of people in the group for one collective charge. We have another avenue to charge parties of 10 or more which is having them pay per plate. Promotion: Mama Love’s Catering will go further and more in depth with the promotion of the catering services, more so than the restaurant did. Extensive advertisement through the restaurant with signs, flyers, and discount cards. Promotion outside will consist of going to the local churches with flyers. Radio promotion is essential because it helped so much in the advertising and promotion of the restaurant. Our key to promotion is to not over saturate ourselves with customers that we can not satisfy with stellar customer service. Place/ Distribution: Mama Love’s intends to cater only the greater Wichita, Ks area. Mama Love’s will distribute our food and services quickly with top of the line vans to transport the food in a timely manner. Budget 8 In developing a budget it is key that as a business that we a lot extra money for unplanned occurrences. Mama Love’s Kitchen is fortunate to have a restaurant that has eighty percent of the equipment needed to help the catering business get started. Therefore Mama Love’s Catering does not need to have an enormous budget. Our budget of $100,000 should be plenty. Our budget is based off purchasing two 2007 vans fully equipped with enough room to move large amounts of food. Our contract with the company in which we have received these vans allows us to purchase these vans every three years at the lowest market price which will save us approximately $20,000. Catering hot plates and utensils are essential and having a good relationship with the distributors through Mama Love’s Kitchen we received a discount of 50% and purchased these appliances for $8,000. With our overhead of employee wages, gas, promotion, decorations, and food our total is $ 37,000. With all these expenses it brings our total $ 85,000. Staying 15,000 under budget will prove to beneficial it gives us room to breath through the first month of business. Staying under budget also allows Mama Love’s the opportunity to take care of emergencies and unplanned mishaps that go along with being in business. First year Forecast 9 First Year Forecast 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0 The graph indicates our first year forecast. While promoting our catering service the first months will start slow and pick up during the summer months. As we grow in clientele and build a relationship with community along with our company visibility after the first year business should become pretty consistent. As we become more efficient in the catering business our expenses should depreciate while are revenue should increase. The Break Even Point The break even point from Mama Love’s Kitchen Catering is $ 7,100 a Monthly. Sources Of Capital 10 Mama Love’s Kitchen Catering has quality investors. Their knowledge from previous investments with Mama Love’s Kitchen Restaurant has made them willing to invest. Anne Tarvey and Jacob Croowle are Mama Love’s investor and have potential to receive 28% return on invest annually. Through diligent accounting and high sales Mama Loves plans to repay debt with seven year time span. 11