January 6, 2009
Business Plan of Yummy Instant Noodles
1. Summary
As our slogan-Yummy Yummy, we hope our customers can just enjoy eating our
noodles; and “Yummy Yummy” is the first imagination of eating experience for them.
They don’t need to worry about any other troubles in their life when they eat our
noodles. How can we do it? First, we use organic components, which including
organic flour, organic vegetables, to make our noodles, we also use new technology to
reduce the percent of preservatives, and our concept is to let customers feel safe.
People don’t want to eat instant noodles just because they think instant noodles are
unhealthy, some parents warn their child: “if you eat too much instant noodles, you
will become a mummy! Because there are lots of preservatives in instant noodles!”
But our noodles are absolutely without this question. In the other hand, our noodles’
price is also cheap; customers don’t need to worry about economic problems either.
Safe and cheap are our main concepts.
We are a new company, so we don’t have good market share yet. And we cost lots
of money on organic food and new technology, so the content of one cup can’t be
very much, but our flavors are still abundant. Our main customers are women, and
the market is still on north Taiwan, we plan to explore our noodles to south Taiwan
first, and then china will be the first station of oversea market. How to add the
content of one cup and let all the people like our noodles, is our target in the future.
Our company did very good job to appeal adult customers because our noodles is
health and flavors is abundant. The main customers are child in the traditional instant
noodles market, but we have lots of adult customers today, especially women. We
think organic food is the key success factors; we will keep it and explore our noodles
to the world in the future.
2. Vision
Now the competition on the instant noodle market is very completely. Since we are
still a new brand to the customer, our product market share is still small. In the
future, we will try to increase our product market share. Our objective of the product
market share is about 25%. There are two main strategy of expand the product
market share. First, our price of the product is very cheap. Second, we use the
Organic noodles and ingredients to break the tradition concept of instant noodles.
And hope it can develop a new consumer market for those who take care of their
health.
Besides the domestic market, we will also export our product oversea, and the first
station is China. We plan that in 2011, our product market share in china will be
15%.
3. Market analysis
(1) The consumption of instant noodles in Taiwan is very huge, on the 12th in the world.
(2) There are a variety of instant noodles in Taiwan, some of theme come from Korea,
Japan, Thai Land, or Southeast Asian even Europe. The flavor of Japanese instant
noodles is salty, Korean instant noodles is spicy because of kimchi, Thai and
Southeast Asian instant noodles added lots of spice are also spicy. But the chief sales
volume is Taiwan local instant noodles above 95%, the reasons include of price and
flavor. The imports of instant noodles have to add the freight and customs duties, in
addition to the flavors are not all accepted by Taiwanese.
(3) The market of instant noodles have been declined for four years in Taiwan, because
there are more and more substitutes for instant noodles and the high immigration,
that lead the total retail sales volume to the lowest last year about eight hundreds
and eighty million. The domestic market of instant noodles is on the highest point in
2003, the year retail sales volume almost exceeded 10 billion, compared to last year
the market of instant noodles had been declined 12% in the past four years.
Moreover the sales volume decline 1% to 2% every year effected by the fast and
variety food in convenient stores and the immigration to China. The medium and
high price instant noodles are declined the most among others, that is the chief
cause led the total sales volume to decline.
(4) Market share rate: 1.Uni-President 45% 2. Wei-Lih Food 20% 3.Vedan 18% 4.康
師傅 10%
4. Competitive analysis: SWOT analysis
＊ Strength
the price is cheap, flavor is plentiful, the Ingredient is health, the logo is easy to
remember :
First, our noodles is very cheap, we hope let all human eat our noodles, no matter
they are rich or poor. So our design of logo is easy to remember. And there are too
much brand in the market, some of them are too expensive, we think this is wrong.
Some people eat instant noodles, because they don’t have enough money to buy
other food or go to restaurant, we insist to protect those people, in other hand, we
will still keep high quality and variety of flavors. We use organic to make noodles; we
hope people can eat our noodles, and the most important is let them health,
breaking the traditional concept of instant noodles. Our noodles qualified as GMP
standard, Yummy is absolutely good. Except for hot and spicy flavor and beef flavor,
sea food flavor, we plan to make more china traditional flavors in the future.
＊ Weakness
Be comparatively late entering the market make our brand lack of fame. Also it
causes less market share which is the lethal weakness of a brand.
＊ Opportunity
Oversea market, prompt to appeal adult customer, commercial and poster to
advertise
In the future, we will use traditional flavors to explore our noodles to oversea. The
first station is china, and then we will try to design many different oversea flavors to
explore to other countries, like Japan, America, Australia and Africa. We think
organic noodles can appeal adult, in the past, parents think instant noodles is
unhealthy, we believe our noodles can break their concept and let them love it!
Because we are new brand, so we will try to use interesting commercial and poster
to appeal customer, create our opportunity.
＊ Threat
The same trades which get more famous and more market share are the main
exterior threats. Besides, recently, the globe recession seriously make our sales going
descending and influence our development.
5. Strategy
The leading opponents in the market have established fame and more market share
which are their main competitive capabilities. In contrast, they are our fatal competitive
weaknesses. However, the established fame and market share would make them
tending to avoid changing. They are afraid that change may make them losing their
established fame and market share. They just want to hold and share what established,
and reinforce the brand image with their product by avoid changing because changes
are always going along with regular risk. Compare to that, we don’t have that burden.
Our opportunities would be the change. By the variety choices and continuous
innovation in concept and marketing, any kind of change may become our key to
success. Our strategy is: Change, never stop.
6. Product: Yummy instant noodles
A. Flavor:
(1) Hot and spicy curry flavor
(NT 30 / per)
(2) Seafood flavor
(3) Beef flavor
(NT 30 / per)
(NT 30 / per)
B. Ingredient:
The main components of yummy instant noodles are carbohydrate, fat, and
protein.
Yummy instant noodles (raw)
Nutritional value per 100 g (3.6 oz)
Energy 430 Kcal
Carbohydrates
- Dietary fiber
2.4 g
Fat
- Saturated
7.6 g
- Monounsaturated 6.5 g
Protein
Thiamin (Vit. B1) 0.7 mg
Riboflavin (Vit. B2)0.4 mg
Niacin (Vit. B3)
5.4 mg
Folate (Vit. B9)
Iron
Potassium
Sodium
146 μg
4.2 mg
120 mg
1160 mg
1900 kJ
65 g
17 g
9g
54 %
27 %
36 %
37 %
34 %
3%
77 %
One package is 91 g
Percentages are relative to US
recommendation for adults.
C. Containers and packaging:
(1) Cup-type
(2) Bag-type
Yummy company use containers that are mostly made from plastic materials such
as polyethylene, polypropylene and polystyrene. All these materials are regulated by
Taiwan government standards for plastic food containers and packaging.
Only containers and packaging that pass strict materials quality and evaluation
tests are permitted by these standards. For bag-type noodles, pouches are made from
materials such as oriented polypropylene, cast polypropylene, and polyester.
Standards
Heat resistance
There must be no deformation of the empty container 15 minutes after it has been
filled with boiling water.
Thermal insulation
3 minutes after the empty container has been filled with boiling water, the outside
must be cool enough to hold comfortably.
Water resistance
There must be no leakage through the container 60 minutes after it has been filled
with boiling water.
Oil resistance
After 30 minutes immersion of the empty container in a 30% solution of ethyl alcohol
and drying, there must be no trace of corrosion on the container surface.
Resistance to compression
Containers must be able to resist 25 kg of vertical pressure.
7. Marketing and sales
＊ Sales and Marketing strategy
Place
Our strategy of place is that customer can find our product in everywhere. So,
in every physical store, such as hyper-market, convenience store, cosmetic and
medicine store and grocery store, all have our product.
Besides the physical store, in the virtual store customer can find our product,
too. Since online-shipping is more and more convenient and modern people are
busier nowadays. In order to give our customer more convenient and quick
service, our company cooperates with Yahoo, has the virtual stores in 2003. So the
customers don’t have to go outside to buy our product. Just stay in home and
shipping online, “Yummy instant noodle” will deliver to your home.
And our company plan to have television order in 2010, to give customer more
convenient and verify choice to order our product.
＊ Advertisement and Promotions
Advertisement
A. Commercial Films
B. Newspapers, Direct mails, Magazines
C. Endorsement
-Advertisement of asking the young idol to speak on behalf
Ex: Andy ,Jolin ……etc.
Promotions
A. Special Offer
- Celebration for the 2009 coming. Now we have a new special offer-Hot and Spicy
curry, Seafood, and Beef flavor all in one package, only cost you 70
dollars (90
dollars).
B. Special Bonus Points for Great Rewards
-During 2008/12/25~2009/1/25, collect any 5 Yummy Instant Noodle points on the
package and mail back to our company, then you will get the great chance to win
big prizes- ASUS notebook, Giant bicycle, ipod etc!!! <<Don’t hesitate anymore!
Just take actions to rape the chances!! Come on>>
8. Operations
＊ Organizational structure
Yummy Instant Noodles
Partner
Mr.Q
＊ Facilities
Our company has most professional and clean production, all our equipment is
qualified by the government. You can see the below picture is our production
facilities.
＊ Product/service delivery
Because our vision is to spread our product to all over the world. As
a result, we already set “Yummy Instant Noodles” in most big market, convenience
store. That’s quite convenient. However to serve customers in foreign countries and
for the trend of on-shopping, we have “on-line delivery service”. When customers
purchase our product over NT$ 500, we add for free express. Our goal is to serve
customers with the best and most convenient way.
Besides, if you have any further requirement, just feel free to call our service
phone number: 0800-090-818
9. Creating the financials of the business plan
Yummy Instant Noodles
Income Statement
For the Month Ended December 31, 2008
Revenues
Service revenue
Expenses
Rent expense
Salaries expense
Utilities expense
Telephone expense
Total expenses
Net income
$ 1,000,000
$ 22,000
24,000
15,000
1,000
62,000
$ 938,000
Yummy Instant Noodles
Balance Sheet
December 31, 2008
Assets
Cash
Accounts receivable
Advertising supplies
Prepaid insurance
Office equipment
$ 15,000
400
1,000
550
$ 5,000
Less: Accumulated depreciation
Total assets
50
4,950
$ 21,900
Liabilities and Owner’s Equity
Liabilities
Notes payable
Accounts payable
Interest payable
Unearned revenue
Salaries payable
$ 5,000
2,000
100
700
1,300
Total liabilities
Owner’s equity
J. K. Byrd, Capital
Total liabilities and owner’s equity
Yummy Instant Noodles
Statement of Cash Flows
For the Year Ended December 31, 2008
9,550
12,350
$ 21,910
Cash flows from operating activities
Net income
Adjustments to reconcile net income to net cash
Provided by operating activities:
Depreciation expense
Loss on sale of equipment
Increase in accounts receivable
Decrease in prepaid expense
Decrease in accounts payable
Net cash provided by operation activities
Cash flows from investing activities
Purchase equipment
Net increase in cash
Cash at beginning of period
Cash at end of period
$ 245,000
$ 33,000
1,000
(40,000)
2,000
(6,000)
(10,000)
235,000
(100,000)
135,000
20,000
$ 155,000