滿飯全席 Curbside Restaurant
National Chiao Tung University
Faculty of Business Management
Final Report
“Fan Tuan Shao Che”
滿飯全席
Marketing plan for curbside restaurant selling rice balls
Student
Damian Huba 9600426
Supervisor
Prof. Charles V. Trappey
June 2008
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滿飯全席 Curbside Restaurant
Contents
1. Introduction………………………………………………………………….. 3
2. Executive summary………………………………………………………….. 3
3. Business overview…………………………………………………………… 4
a. Market description
b. Product description
c. Competitive review
d. Distribution process
4. SWOT analysis………………………………………………………………. 6
5. Marketing strategy…………………………………………………………… 7
5.1 Short term…………………………………………………………………7
a. Positioning
b. Product Strategy
c. Pricing Strategy
d. Distribution Strategy
e. Promotional Activities
5.2 Long term…………………………………………………………………9
6. Forecast and financial analysis……………………………………………….10
7. Evaluation of results………………………………………………………….13
8. Appendixes………………………………………………………………….. 13
a. Appendix 1 – Presentation of co-branders
b. Appendix 2 – Cup design
c. Appendix 3 – Curbside restaurant design
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滿飯全席 Curbside Restaurant
1. Introduction
This marketing plan is hypothetical start-up for curbside restaurant. The restaurant
is selling typical Taiwanese breakfast called 飯糰小吃 (fan tuan xiao che) from the stand
situated in certain points of the Hsinchu City. In the following parts this marketing plan
will focus on development of the product, goals, strategies and financial analysis.
During research the name for the brand was discovered. After consultation with
Taiwanese I decided to put a name “滿飯全席” (man fan chen xi), what means “full
meal”. The sound of this name is close to “滿漢全席” (man han chen xi), what means
very delicious food for emperors in old time. Some Taiwanese were asked about the new
brand name and they answered that it is funny and they almost always related it to
delicious food.
In the following parts Man Fan, the name of the curbside restaurant, will be used.
2. Executive summary
Man Fan is a new curbside restaurant, in the first year lead by one person, which
is going to offer a traditional breakfast in street corners of Hsinchu City. The menu
consists of rice ball (fan tuan) and three available drinks such as soya milk, milk tea and
coffee with milk. Our main aim is to create good, high quality rice balls and drinks that
will be perceived by customers and society as a healthy, delicious and fresh made.
Therefore all of the products we use to prepare rice balls and we sell are branded. Cobranding is one of another goal that we want to reach for the future cooperation.
The primary marketing objective is to achieve break-even point just after two
months and to finish the year with the annual revenues that exceeds NT$400.000. The
detailed financial analysis is described in the sixth part of this report.
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滿飯全席 Curbside Restaurant
3. Business overview
a. Market description
Potential market consists of consumers who are willing to eat out traditional rice
balls for the first or second breakfast, purchasing the product on the way to university or
driving to work and tend to patronize higher quality food. Student and workers are two
main targeted segments chosen because of customers’ needs, loyalty and their quantity.
Hsinchu City has big Science Park and adjacent two big universities and that creates
possibility to get huge market share.
The food market in Taiwan is in a mature level but there is still niche among tasty
and healthy products. Consumer can chose from different variety of night markets where
they can find a lot of snacks, but it is difficult to find traditional rice balls that answer to
customers needs. To get to know people’s needs we developed the list of needs of our
targeted segment (Table 3.1).
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滿飯全席 Curbside Restaurant
Table 3.1 Segment needs and benefits of traditional rice balls
Targeted
Customer Need
Corresponding Benefit
segment
Students and
 Healthy food
Workers
 Prepare rice balls and drinks only from
branded, healthy and well known
products
 Fast and convenient
 Selling in the convenient location from
sheltered stand friendly to motorbike
drivers even in a rainy days; fixed and
easy price (NT$25 and NT$50) so there
will be no problems with change
 Warm, fresh and delicious
 High quality wooden boxes that keeps
warmth for a long time, fridge and
every day fresh prepared food.
 Appearance or presentation
of food
 Selection
 Customize well designed and clean
curbside restaurant
 Refers only to three most desirable
drinks offered in our menu
 Customer service
 Focus on client and his needs to
impress them with the level of attention
that they receive.
 Competitive pricing
 All products will be competitively
priced relative to comparable
convenient stores
Source: Self development
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滿飯全席 Curbside Restaurant
b. Product description
Man Fan will produce homemade rice balls from the high quality products with
the old recipe purchased from experienced in doing fan tuan people. The brands we are
going to cooperate are well known on the market. The list below presents first developed
contacts with well known suppliers that we discovered on the market (Appendix 1):
e. Soya milk – Wei Chiuan
f. Fried bread sticks – Hsin Tung Yang
g. Milk - Rui-Sui Fresh Milk
h. Coffee – Nescafé Gold
c. Competitive review
There are some individual competitors on the market with a little bit cheaper and
low quality rice balls and convenient stores that sell rice ball with higher price. It makes
us unique in combination of high quality rice balls for reasonable price lower than in
convenient stores.
d. Distribution process
Distribution of our products will be held by the Guang Fu Road, close to night
market so cars, motorbikes and pedestrian can stop to pick them up very fast or eat on the
spot.
4. SWOT analysis
The following briefly SWOT analysis captures the key strengths and weaknesses within
the curbside restaurant, and describes the opportunities and threats that is facing Man Fan.
Strengths
Strong relationships with suppliers that offer high-quality ingredients.
Friendly name associated to food, so that can attract people.
Excellent staff, in a first year one person, who is highly trained, prepared, very customer
attentive and knows perfectly the marketing strategy.
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滿飯全席 Curbside Restaurant
Great curbside restaurant space that is bright, hip, clean, and located in a perfect location,
close to the night market with big amount of people passing by every day.
High-quality rice ball and drinks offers that exceed competitor’s offers in quality,
presentation, and price.
Good organization of production and transportation process.
Co-obranding with well known producers.
Weaknesses
Man Fan name lacks brand equity.
A limited marketing budget to develop brand awareness.
Lack of experience in the market.
Opportunities
Market in mature level with no awareness about existence of Man Fan.
The future ability to prepare our products on demand that will decrease the price of
production and increase incomes.
The society becomes rich and spend more money on healthy food.
Threats
Competition from other curbside restaurants in the night market.
Possibility of copying our idea by other entrepreneurship.
External factors influencing disposable income spent on eating out.
Factors influencing the raise of products components from our co-branders.
5. Marketing strategy
The marketing strategy is mainly based on some key points such as differentiation on the
market, cooperation with well known brands and good organization of production and
transportation process. As our goal we want to achieve a big market share that in a long
term will allow us to register our brand and spread Man Fan, not only in Hsinchu City,
but in whole Taiwan.
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滿飯全席 Curbside Restaurant
Our primary business target is students and workers in Hsinchu City. As we defined
before their needs, we’re going to try to respond to them. The marketing strategy is
divided into two parts short term strategy that includes the first year, and long term
predictions over one year.
5.1 Short term
a. Positioning
Using uniqueness of our curbside restaurant and offered products we want to look
different in the eyes of customers. Distinction from other rice ball providers and
competitors is made to reach broaden market segment. It is targeted to students and
workers and the marketing strategy will focus on the fresh and full of energy rice balls
with tasty drink, that makes the customer feel full and happy at the beginning of the day.
b. Product strategy
All features of the product were mentioned before in “Product description” section. Rice
balls will be sold from the high quality wooden box, which keeps them warm for the
operating hours. Client will receive plastic bag branded by Man Fan bag with fan tuan
inside. Drinks will be served in special motorcycle friendly cups (see Appendix 2 for cup
design).
The long term vision is that during cooperation some contacts with co-branding
companies will be developed so we could minimize the cost of branded bags. It can be
reached in lieu of putting their logos on our curbside restaurant and packages.
c. Pricing strategy
The “cost plus mark-up strategy” will be used. To set our price we are not looking at the
market to look for the price, but we look at our own cost structure. The revenue we want
to make is average 50% of the profit, no matter if it is only rice ball or rice ball with drink.
This price is not out-of-line with customer expectations, because competitors such as
convenient stores have higher price and lower quality. Audience should perceive this
product as a healthy and well made for reasonable and simple price.
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滿飯全席 Curbside Restaurant
There are only two prices NT$25 for one rice ball and NT$50 for one rice ball and drink.
It makes it easier to give the change and to not to have a lot of deal with dirty money.
In the long term we see possibility to make a deal with our products suppliers so the
profit will be higher, but the price will stay the same.
d. Distribution strategy
The first year of operating the only one channel of distribution will be used – our
curbside restaurant (see Appendix 3). The working hours will be from 7.00 – 11.00 when
the first and second breakfast is eaten. All of the products will be ready to sell, just need
to be put into the package.
e. Promotional activities
Curbside restaurant will have some information about the products, pictures, and calories
so it makes awareness of bought product. Rice balls main slogan that appears on the
product will be “start your day the right way”. It refers to the nutrition of our products, its
freshness and delicious taste.
Promotional activities have as a main goal create close relation with customers and try to
make client satisfied after purchasing and eating our products. For example we are going
to remember as much names of our customers as possible. It will influence positively on
word-of-mouth marketing that primarily we are going to base on. The information about
new brand will be spread among our present friends to attract them also.
The second part of our promotional activities will be the Internet. Entering forums Man
Fan brand will be promoted by location and tasty fan tuan.
Long term promotional activities include registration of brand, promotion by advertising
on internet and other media, support of some events to make higher awareness of Man
Fan brand, etc. The future studies of Man Fan will show what exact promotional
activities will be used.
5.2 Long term
As the overview of long term predictions for next year key points were developed:
a. Development and investment of saved money
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滿飯全席 Curbside Restaurant
b. Possible investments:
Creation (copy) of another stand or stands with the same rules (second-year
objective: network of 10 curbside restaurants)
Product diversification from rice balls to another typical Taiwanese dish (just in
other curbsides)
Studies about market share (how to acquire new) and upgrade of marketing plan
Creation and registration of own brand
More strict collaboration with co-branders (higher discounts, advertising for
advertising – we put their logo on our stands so they put logo in their shops)
Limitation of co-branders (to be less depending from them)
New promotional aspects
Minimization of total cost as a result of experience
Preparation of rice balls to order for hotels, restaurants, and other places
6. Forecast and financial analysis
Our stand will be located in strategic points which are close to universities and
main roads where usually employees pass while going to work.
As it was defined before the menu is very simple and there are two choices:
a. fan tuan
b. combo: fan tuan + drink (soya milk, milk tea, coffee with milk)
The first option costs NT$25 and the second one NT$50. Taking in consideration fixed
and variable costs our studies shown that the revenue equals to around 50% of the price,
giving in the first case NT$12.5 and in the second NT$25 of revenue.
Our assumption is that we shared days for good and bad. In a good day we should sell 50
fan tuan and 50 combos and in a bad day 10 units of each. The loan in amount NT$25000
is taken at the beginning to cover all of the fixed cost of opening our curbside restaurant.
Having this simple information the following price model was created.
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滿飯全席 Curbside Restaurant
Referring to the model we created into the class we can define our break-even point as a
cross cut of total cost (fixed cost plus variable cost) and revenue cost (look at the chart
below):
Figure 6.1 Break-even point analyses, self development, June 2008
Calculations:
1. PRICE
-
Bad day
We count the profit for bad day
10 x 12.50 = 125
10 x 25
= 250
125 + 250 = $375 profit in a bad day
In one month we have 5 bad days so:
$375 x 5 = $1875 profit/month
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滿飯全席 Curbside Restaurant
-
Good day
We count the profit for good day
50 x 12.50 = 625
50 x 25
= 1250
625 + 1250 = $1875 profit/day
In one month we have 19 good days so:
$1875 x 19 = $35625
-
Total
In one month the profit is: 35625 + 1875 = $37500
In one year the profit is: 12 x 37500 = $450.000
$450.000 - $25000 (fixed cost) = $425.000 profit/year
2. QUANTITY
1 unit = $25 revenue
So monthly we have:
For bad day: (10 units + 10/2units) x 5 days in month = 75 units/month
For good day: (50 units + 50/2units) x 19 days in month = 1425 units/month
Monthly in total: 1500 units with revenue $25
3. BREAK-EVEN POINT
Profit in one month: $37500
Loan: 25000
Break-even point: after around 1.5-2 months (we have to remember about
additional material cost, maybe branding, different license or other unexpected
costs)
From the calculations we obtain results that our break-even point will be reached in
around 2 months. Taking in consideration some abrupt expenses such as damages, etc. we
are aware that the process of reaching break-even point could be moved in time up till 3
months.
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滿飯全席 Curbside Restaurant
7. Objectives and evaluation of results
We are planning close observation of customers and in following months try to customize
product that better response our customers’ needs.
8. Appendixes
Appendix 1 Presentation of co-branders
i. Soya milk – Wei Chiuan
j. Fried bread sticks – Hsin Tung Yang
k. Milk - Rui-Sui Fresh Milk
l. Coffe – Nescafé Gold
Appendix 2 Cup design
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滿飯全席 Curbside Restaurant
Features:
1) Size: 8oz. coffee cup with lid
2) Designed with a double wall
3) Material: single PE coated
4) Used for packing drinks, especially hot coffee
5) Different sizes available
6) With or without handle sleeves, with lids
Manufacturer
Taizhou Signal Daily Necessities Co., Ltd
Street Address : No.80-82, East Hengjie Road, Huangyan, Taizhou , Zhejiang , China
City : Taizhou
Province/State : Zhejiang
Country/Region : China
Webpage: http://signalpaper.en.alibaba.com/
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滿飯全席 Curbside Restaurant
Appendix 3 Curbside restaurant design
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