Marketing Plan

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MARKETING PLAN
Prepared for:
DANG! Fancy Southern Grub
Prepared by:
Stephen Warren
12/01/2014
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© Copy right In2010. All rights reserved. Protected by the copyright laws of theUnited States & Canada and by international treaties. IT IS ILLEGAL AND
DANG! Fancy Southern Grub Marketing Plan 2
Table of Contents
Statement of Confidentiality & Non-Disclosure .......................................................................................3
EXECUTIVE SUMMARY.....................................................................................................................4
1.1 Industry Analysis.................................................................................................................6
1.2 Sales Analysis ..................................................................................................................21
1.3 Competitive Analysis .........................................................................................................21
1.4 Customer Analysis ............................................................................................................38
1.5 SWOT Analysis.................................................................................................................41
2.0 OBJECTIVES..........................................................................................................................42
2.1 Corporate Objectives.........................................................................................................42
2.2 Marketing Objectives.........................................................................................................42
3.0 MARKETING STRATEGY.......................................................................................................43
3.1 Market Segmentation Strategy ...........................................................................................43
3.2 Targeting Strategy.............................................................................................................45
3.3 Product Life Cycle .............................................................................................................49
3.4 Potential Strategies ...........................................................................................................50
3.5 Core Strategy ...................................................................................................................53
4.0 MARKETING PROGRAMS .....................................................................................................55
4.1 Marketing Mix ...................................................................................................................55
4.2 Loyalty Programs ..............................................................................................................58
4.3 Customer Service & Support..............................................................................................58
4.4 Market Research...............................................................................................................58
4.5 Personal Selling ................................................................................................................59
4.6 Trust and Credibility ..........................................................................................................59
5.0 IMPLEMENTATION PLAN ......................................................................................................60
5.1 Product Design and Development ......................................................................................60
5.2 Marketing & Sales .............................................................................................................61
6.0 PERFORMANCE EVALUATION AND MONITORING ...............................................................64
6.1 Monitoring Ad Campaigns..................................................................................................64
6.2 Sales Analysis ..................................................................................................................65
6.3 Profit and Loss Statements ................................................................................................66
6.4 Meeting Schedule .............................................................................................................66
7.0 FINANCIAL INFORMATION.....................................................................................................67
7.1 Financial Capsule .............................................................................................................67
7.2 Financial Assumptions.......................................................................................................67
7.3 Budget .............................................................................................................................67
7.4 Sales Projections (3 years) ................................................................................................69
8.0 CONTINGENCY PLANS ..........................................................................................................70
8.1 Symptoms of Failure .........................................................................................................70
8.2 Alternative Strategies ........................................................................................................70
8.3 Potential Problems and Solutions .......................................................................................70
APPENDICES ..................................................................................................................................71
Bibliography .....................................................................................................................................73
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Statement of Confidentiality & Non-Disclosure
This document contains proprietary and confidential information. All data submitted to Texas A&M
University is provided in reliance upon its consent not to use or disclose any information contained
herein except in the context of its business dealings with DANG! Fancy Southern Grub. The
recipient of this document agrees to inform its present and future employees and partners who view
or have access to the document's content of its confidential nature.
The recipient agrees to instruct each employee that they must not disclose any information
concerning this document to others except to the extent that such matters are generally known to,
and are available for use by, the public. The recipient also agrees not duplicate or distribute or
permit others to duplicate or distribute any material contained herein without DANG! Fancy
Southern Grub's express written consent.
DANG! Fancy Southern Grub retains all title, ownership and intellectual property rights to the
material and trademarks contained herein, including all supporting documentation, files, marketing
material, and multimedia.
BY ACCEPTANCE OF THIS DOCUMENT, THE RECIPIENT AGREES TO BE BOUND BY
THE AFOREMENTIONED STATEMENT.

EXECUTIVE SUMMARY
In the United States today, the restaurant industry comprises of roughly “550,000 restaurants
with combined annual revenue of more than $400 billion” (SBDCNet, 2012). Within this industry,
there is a sector gaining in market share, comprising of roughly one percent of the total yearly
revenue: the Street Vendors Industry. The value of consumer time, coupled with the consumer’s
demand for fresh, high-quality local food, will continue to apply pressure on the restaurant industry
to offer fresh meals for those on the go. The Street Vendors Industry comprises of traditional street
vendors, mobile food preparation vehicles, and industrial catering vehicles that target consumers
who do not have time to dine at a traditional restaurant. This industry has establishments that are
engaged primarily in the preparation and serving of meals as well as snacks for immediate
consumption.
The Food Trucks industry “has only grown in strength over the past five years and is one of the
best performing segments in the broader food-services sector” (IBISWorld, 2014). The industry has
seen a remarkable rise beginning in 2008, just as the recession hit, “as hundreds of new vendors
recognized changing consumer preferences favoring unique, gourmet cuisine;” cities such as
Portland, Austin, and Los Angeles “sought to differentiate themselves by crafting laws and creating
areas specially designed for mobile food trucks” (IBISWorld, 2014). DANG! Fancy Southern Grub
is poised to garner a sizable piece of this growing marketing over the next 5 years.
Mission The Dang! Fancy Southern Grub Company’s mission is to bring the fastest and tastiest
food at value that our customers will appreciate over other local businesses and food trucks.
Local Objectives Be the cleanest, best tasting, food truck with sales that remain both profitable
yet affordable to our customer base.

1.1 Industry Analysis
1.1.1 Market Characteristics
Industry
Appetite in the United States, like its population, is constantly changing. Foods once popular are
rarely eaten today; foods once only limited to the imagination are now reality. As the United States’
population grows “wealthier, older, more educated, and more ethnically diverse” than in any
previous period in American history, “demographic changes are likely to become more pronounced
[over] the next 20 years,” fostering demand for “new food products, new packaging, more
convenience, new delivery systems, and safer and more nutritious foods” (Blisard, Lin, Cromartie, &
Ballenger, 2002). By 2020, the U.S. population is projected to add “between 50 and 80 million
people;” based on this increase, “U.S. food expenditures are projected to rise 26 percent between
2000 and 2020” in which this increase is projected to “boost food sales of supermarkets, restaurants,
fast food outlets, and other retail food establishments by $208 billion” (Blisard, Lin, Cromartie, &
Ballenger, 2002).
As a result, answers to questions such as “how population growth, an aging population, ethnic
diversity, other demographic trends, and income growth will affect future food choices and how the
food system will respond to such changes” are variables of increased importance (Blisard, Lin,
Cromartie, & Ballenger, 2002). Further, societal changes such as “rising incomes, longer workdays,
and a growing tendency for both spouses to hold full-time jobs, are widely credited for the rise in
away-from-home expenditures of all types” (Blisard, Lin, Cromartie, & Ballenger, 2002).
In the United States today, the restaurant industry comprises of roughly “550,000 restaurants
with combined annual revenue of more than $400 billion” (SBDCNet, 2012). Within this industry,

there is a sector gaining in market share, comprising of roughly one percent of the total yearly
revenue: the Street Vendors Industry. The value of consumer time, coupled with the consumer’s
demand for fresh, high-quality local food, will continue to apply pressure on the restaurant industry
to offer fresh meals for those on the go. The Street Vendors Industry comprises of traditional street
vendors, mobile food preparation vehicles, and industrial catering vehicles that target consumers
who do not have time to dine at a traditional restaurant. This industry has establishments that are
engaged primarily in the preparation and serving of meals as well as snacks for immediate
consumption.
The industry is heavily concentrated in urban areas, “particularly in the central parts of large
cities.” thriving in cities such as L.A, Portland, New York, Austin and San Francisco (Ehrlich, 2010).
Further, websites dedicated to the locations of mobile food trucks have come online in many of
these cities. According the IBISWorld, the industry is most heavily concentrated in the Far West, the
Great Lakes region, the Mid East (which includes New York), and the South East (Ehrlich, 2010).
History
The shift in public perception towards food trucks, from denigrated ‘roach coaches’ to a pop
culture phenomenon, is the result of two interrelated factors: economics and social media. In the late
2000s, at the start of the economic recession, food trucks began to emerge as customers demanded
quick, inexpensive, and healthier meals.
French sociologist Pierre Bourdieu specifically talks about class-related tastes, arguing that
tastes in food depend on the idea each class has about the effects of food on the body.
Bourdieu describes the eating habits of the working class and the professions, with the
former being ‘more attentive to the strength of the body than its shape, and tend to go for
products that are both cheap and nutritious,’ while the latter opts for ‘products that are tasty,

health-giving, light, and not fattening.’ Likewise, the quality of food in food trucks has also
improved—no longer are these trucks serving defrosted, instant meals, but gourmet food
prepared by former chefs of upscale restaurants (Seo, 2013).
A change in the landscape of American food culture had begun; “with their relatively low
marketing and operational costs, food trucks proved to be extremely prosperous” (Seo, 2013).
Within a few years, “the business solidified as a lucrative venture that chefs lauded as being more
rewarding and financially feasible than maintaining brick-and-mortar restaurants” (Seo, 2013).
Moreover, the economic landscape of the restaurant industry changed with the Great Recession,
increasing the difficulty for entrepreneurs wanting to start and operate a conventional restaurant.
With financing extremely difficult to secure, coupled with slow industry growth and fierce
competition, the risks became greater than in years past. In response, many aspiring entrepreneurs
and restaurateurs chose to launch food truck businesses instead.
However, economics only partly explain the transformation of the food truck business. The food
truck phenomenon “owes much of its success to the explosive growth of social media, smartphones
and other mobile technologies” (Intuit, 2012). It is no coincidence that the boom in the food truck
industry coincides with the social networking explosion, especially that of Facebook and Twitter.
The gourmet food truck “owners’ savvy use of social media serves as a classic example of how
entrepreneurs can harness technology to promote their business and communicate with their
customers in an authentic way” (Intuit, 2012). Social media marketing “has enabled food trucks to
interact directly with their customers to foster a sense of community and to create brand loyalty”
(Seo, 2013). Also playing an important role in the food truck boom are mobile payment systems,
such as Intuit’s GoPayment, which enable food trucks to accept credit cards.

Owners use tablets and other handheld computing devices to take orders and manage business
operations. Cellular data networks connect food trucks to their suppliers and, of course,
smartphones help food trucks communicate with their customers.” (Intuit, 2012)
Market Size & Growth
The Food Trucks industry “has only grown in strength over the past five years and is one of the
best performing segments in the broader food-services sector” (IBISWorld, 2014). The industry has
seen a remarkable rise beginning in 2008, just as the recession hit, “as hundreds of new vendors
recognized changing consumer preferences favoring unique, gourmet cuisine;” cities such as
Portland, Austin, and Los Angeles “sought to differentiate themselves by crafting laws and creating
areas specially designed for mobile food trucks” (IBISWorld, 2014). While the recession slowed the
growth on the broader food-services sector between 2008 and 2009, the Food Trucks industry
boomed as consumers looked to maximize disposable income. As a result, “industry revenue has
increased at an impressive annualized rate of 12.4% over the five years to 2014” (IBISWorld, 2014).
Gourmet food trucks are a growing enterprise as well; over the past four years, “these upscale
meals on wheels have motored into major cities from San Francisco to Miami;” according to the
National Restaurant Association, “these mobile eateries generate about $650 million in revenue–
about 1 percent of total U.S. restaurant sales” (Intuit, 2012). At one time, food trucks, or ‘roach
coaches,’ were simply mobile canteens that brought food to sell to construction sites or other places
where laborers gathered for lunch. Since around 2008, however, food trucks have become more
widespread, offering myriad types of cuisine, ranging from grilled cheese to lobster, and catering to
office workers in urban areas; “by one estimate, total revenues of food trucks across the country
were $630 million in 2011and a billion dollars by 2012” (Wallsten & Rhyan, 2014).

Market Potential& IndustryForecasts
Food trucks will expand geographically over the next several years. Currently, most operate in
college towns and major cities. Over time, their range will expand to smaller communities and
suburban locations. Emergent Research “expects food trucks to generate between 3 and 4 percent
of total restaurant revenue–about $2.7 billion–by 2017, a fourfold increase from 2012” (INTUIT,
2012). In other words, “food trucks are not a fad but a viable market segment with significant
competitive advantagesover quick-serve, fast-food and take-out food vendors” (INTUIT, 2012).
Food trucks will also “gain share in catering and special events, such as weddings, corporate
gatherings and sporting events” (Intuit, 2012). Conversely, “successful food trucks will also expand
by opening brick-and-mortar locations… This is already happening and the numbers will accelerate
as more entrepreneurs and businesses use food trucks as incubators to test and develop new food
and restaurant concepts” (Intuit, 2012).
Levelof Competition,Dominant Players,Presence ofConglomerates
 The Street Vendors industry is highly fragmented with over 80% of enterprises being owner-
operators with no employees; of those firms in the industry that do have paid staff, most
employ four people or less (IBISWorld, 2014).
 There are no major players in the industry with a market share of 5.0% or greater
(IBISWorld, 2014).

 In 2014, IBISWorld estimates that the top four players in the industry account for well under
5.0% of available market share, providing the industry with a low level of concentration
(IBISWorld, 2014).
 While food trucks operate all-day and late into the evening, it is estimated that they generate
about two-thirds of their revenue during the day and before dinner. This indicates that food
trucks compete primarily with fast, quick-service and take-out food. Relatively speaking, they
do not have much market impact on traditional full-service restaurants (Intuit, 2012).
 Competition will increase as large brands and existing restaurants launch food trucks. About
26 percent of quick-service chains are interested in getting in on the act, according to the
National Restaurant Association. Major brands such as Chick-fil-A, Burger King and TCBY
have already added food trucks with a growing number of brick-and-mortar restaurants
expected to hit the road (Intuit, 2012).
 The food truck industry also has relatively low costs of entry and exit when compared to
traditional brick and mortar restaurants, which creates a dynamic environment with very
high turnover of new trucks (Wallsten & Rhyan, 2014).
Market Trends
Within the Food Trucks Industry, “demographics, consumer tastes, and personal income drive
demand” (SBDCNet, 2012). Recent trends are as follows:

 From 2007 to 2012, the combined forces of evolving consumer tastes, the recession, and
slow economic recovery have produced slower growth in fast food business revenues. Most
of the slowdown was felt during 2009 when revenues retreated by 4.3%, however, revenue
growth returned in 2010 (1.8%) and 2011 (1.3%) and is forecast to rise 1.1% in 2012
(SBDCNet, 2012).
 With less money to spend during the recession, and continued caution during the slow
recover, consumers are eating out less frequently. When they do eat out, they are more likely
to choose lower cost solutions. In the past, this may have meant choosing fast food
restaurants. More recently, food retailers are offering more appealing easy to prepare home
dining solutions. General health concerns over fast food also are steering customers to
healthier options and health-oriented quick service restaurants(QSRs) (SBDCNet, 2012).
 Market research supports this trend, showing the number of fast food restaurants fell by
0.3% since 2007 to 263,944 in 2012, while employment at QSRs has averaged annual
declines of 0.6% over the same period, reaching an estimated 3.5 million employees in 2012
(SBDCNet, 2012).
 Despite these headwinds, IBISWorld identifies several positive trends that should help boost
fast food industry revenues by 2.2% in 2013. At the macroeconomic level, these trends
include a slowly improving economy, gradual labor market improvement, and building
consumer confidence leading to more spending on eating outside the home. IBISWorld
predicts that consumer spending will increase by 3.3%, on average, over the next five years
(SBDCNet, 2012).

 Another positive trend forecast is for QSRs to creatively address the health concerns of their
customers with alternative menu it ems, such as fresh salads, chicken burgers, and pasta.
Some fast food operators also may open entirely businesses around these alternative menu
concepts, but co-locate them with existing stores (SBDCNet, 2012).
 Another positive source for revenue growth is in specializing menus. With existing
operators, this can be similar to McDonald’s foray into the specialty coffee market. Some of
these new menu it ems can be low-cost, high-prof it additions to a stable product mix that
improves location profitability (SBDCNet, 2012).
 There are also significant opportunities for fast food operators in new ethnic food segments.
Mexican food is one commonly cited example, but the recent popularity in Food Trucks
underscores the opportunity (SBDCNet, 2012).
 Taken together with the general improvement in macroeconomic conditions, these positive
trends should power an increase of 1.9% in fast food industry revenues, possibly reaching
$186.2 billion in five years, according to IBISWorld (SBDCNet, 2012).
1.1.2 Trends and Drivers
Food trucks’ success reflects a combination of many powerfulconsumertrends:
A hunger for quality, value and speed. Those are the top three attributes consumers look
for in quick serve or fast-food restaurants, according to the National Restaurant

Association’s 2012 Restaurant Industry forecast. Food trucks often outperform traditional
quick-serve and fast-food restaurants in all these areas (Intuit, 2012).
An appetite for fresh and local food. According to the Hartman Group, a food research
and consulting group, “fresh is the cultural shift toward all things healthy, real, pure and
special.” Most gourmet food trucks use fresh, local food to differentiate themselves from
traditional quick-serve, take-out and fast food (Intuit, 2012).
An affinity for local. Consumers increasingly are supporting nearby businesses. Buying
from and supporting local merchants sparks a sense of belonging and being part of the
neighborhood. The personal interaction between diners and food truck owners often
transforms transactions into meaningful relationships (Intuit, 2012).
A desire for small and sustainable. In addition to supporting local activities, the appeal of
food trucks counters the conventional wisdom that bigger is always better. Going beyond
being a small, local business, most gourmet food trucks stress their use of sustainable food
sources and practices (Intuit, 2012).
A need for speed. The fastest-growing part of the restaurant industry over the past few
years has been the fast casual or quick-serve segment, such as Chipotle. These restaurants do
not provide full table service, but offer a higher quality of food and a better atmosphere than
traditional fast-food establishments. Food trucks also serve this segment, providing time-
challenged customers easily accessible, quality food and the fast service they require (Intuit,
2012).

Major Drivers ofChange
 Economic indicators
 Food cost pressures
 Government legislation
 Obesity
 Millennials drive usage
 Locations
 Shifting U.S. demographics
New CategoriesofProduct Users
$14,131,848,180 Total household spending on breakfast and brunch at fast food restaurants
 …busiest people are the biggest spenders on breakfast at fast-food restaurants—workers
and parents. Householders of prime working age, 35 to 44, spend 39 percent more than
average (SBDCNet, 2012).
 …Married couples with children at home spend 38 percent more than average (SBDCNet,
2012).
 ….Hispanics spend 31 percent more than average on breakfast at fast-food restaurants
(SBDCNet, 2012).
 …Households in the Northeast outspend the average by 26 percent (SBDCNet, 2012).
$42,853,554,670 Total household spending on lunch at fast-food restaurants
 …Workers and parents are the best customers of fast-food lunches (SBDCNet, 2012).
 … those aged 25 to 44, spend 20 to 33 percent more than average (SBDCNet, 2012).
 …and account for 44 percent of the market. Married couples with children at home spend
55 percent more than average on lunches at fast-food restaurants (SBDCNet, 2012).
 …Asians spend 29 percent more than average (SBDCNet, 2012).

$42,383,459,840 Total household spending on dinner at fast-food restaurants
 …Families with children are the biggest spenders on dinners at fast-food restaurants.
Householders ranging in age from 25 to 54 spend 19 to 37 percent more than average
(SBDCNet, 2012).
 …and account for 71 percent of the market. Married couples with children at home spend
67 percent more than average on dinner at fast-food restaurants (SBDCNet, 2012).
 …Single parents, whose spending approaches average on only a few items, spend 8 percent
more than average on fast-food dinners (SBDCNet, 2012).
 …Asians spend 19 percent more than average on fast-food dinners (SBDCNet, 2012).
$13,317,339,400 Total household spending on snacks at fast-food restaurants
 …Parents are the best customers of snacks from fast-food restaurants. Householders aged
25 to 44, most with children, spend 27 to 47 percent more than the average household
(SBDCNet, 2012).
 …Married couples with children at home spend 60 percent more than average (SBDCNet,
2012).
Demand Cycles & SeasonalityEffect
Business in the restaurant industry is known to fluctuate. The frequency of diners eating out may
increase or decrease dependent upon the economic climate; moreover, seasonal changes can also
have an impact on customer traffic to restaurants. Mobile food trucks require access to a large
quantity of pedestrian traffic in which to garner the revenue needed to stay in business.
Understanding the demand cycles help to hedge against slower months and better plan for the ebbs
and flows of the restaurant industry.
During holiday seasons, customers are more likely to eat at home, as they typically spend more
time with family and prepare meals at home. Further, customers tend to cut back on unnecessary
spending during the holidays as they use their disposable income on holiday shopping. It is

estimated that “61 percent of restaurants notice a decline in patrons during a seasonal holiday or
major event;” this “decline in patrons or business can be as much as 20 percent” (Higuera, 2014).
However, in many instances, quick food restaurants have an opportunity to thrive while dine-in
restaurants struggle. This is mainly due to a hectic schedule in which patrons grab a quick meal
between entertaining family and friends or shopping for presents.
The winter months can have an adverse effect on business as cold weather—and even snow or
ice—deters customers from eating out. However, in the southern regions—where many food truck
vendors are thriving—weather conditions are not as severe as those in the north. Nonetheless, fewer
customers are still a real concern as colder months encourage patrons to stay home and cook or eat
in their office during lunch breaks.
During the summer months, moreover, the restaurant industry tends to thrive. In many cities,
tourism tends to increase during these months, and the warmer climate fosters more outdoor
activities as locals and visitors venture outdoors. With the increase in tourism, the hotel industry
also sees an increase in traffic; as such, restaurants and street vendors located in or around busy
hotels notice a dramatic increase in business. Further, “some restaurants hold events during the
summer months, such as outdoor music and other fun entertainment, which is likely to draw
customers and increase sales” (Higuera, 2014).
1.1.3 Legal, Political & EconomicFactors
According to IBISWorld Industry Analyst Andy Brennan, “The industry will face various
challenges over the next five years, most crucially regulatory hurdles, which have restricted the
industry's growth over the past five years” (PRWEB, 2014). Brennan goes on to say, “Despite strong
industry-wide performance, some operators have been held back by city regulations, increased

competition and low profit margins” (PRWEB, 2014). Governing laws differ between cities with
respect to food trucks, with most laws specifying particular hours of operation and location
restrictions. Further, citywide regulations that “impede mobile vending operations… include public
property bans, restricted zones, proximity bans, and duration restrictions (McConnell, Common, &
McFarland, 2013).
 The industry competes directly with the broader food-services sector, and some brick-and-
mortar establishments that pay taxes have lobbied against the industry (PRWEB, 2014).
 Parking laws and other city ordinances are still evolving in many cities to catch up with the
industry’s transformation. Industry associations will need to work closely with city
governments and other restaurateurs to resolve these issues if food trucks are to play a
bigger role in the country’s food services sector (PRWEB, 2014).
Regulations are grouped into four policy areas:
 Economic activity: this policy area provides insight into aspects of food truck regulation that
could potentially enhance economic development, and looks at specific processes that can be
barriers to market entry. Two areas of regulation that impact economic activity–streamlining
and permit costs (McConnell, Common, & McFarland, 2013).
 Public space: mobile vending takes place on both public and private property, but public
property presents a unique set of challenges. With the rapid expansion of food trucks, there
is increased demand for limited space, which increases the likelihood of conflicting interests
and encroaches upon the ability of stakeholders to maximize the advantages that public

space can offer. Time constraints, proximity rules, and geographic limitations related to
density are examined here (McConnell, Common, & McFarland, 2013).
 Public health: this is one of the most basic concerns regarding mobile vending. All
stakeholders realize the need for comprehensive regulations around sanitation and food
safety. These issues should be addressed within a regulatory framework that is cost-efficient,
thorough, and results in a streamlined process for all stakeholders (McConnell, Common, &
McFarland, 2013).
 Public safety: public safety is a key reason why many cities began regulating food trucks.
Regulations examined here include private property, vending near schools, and pedestrian
safety(McConnell,Common,& McFarland,2013).
1.1.4 Sociocultural Factors
 …rapid growth of Hispanic and Asian populations in the U.S., which will continue to drive
demand for more ethnically diverse foods, including spicier flavors (SBDCNet, 2012).
 …large Millennials and Boomers demographics will influence restaurant foods. Based on
NPD Crest information, the younger age group will provide a boost to juice/specialty
drinks, and more brands will continue to shift their marketing dollars toward this
demographic… (SBDCNet, 2012).

 …foodservice operators are smart to offer greater menu variety to meet Millennials’ interests
(SBDCNet, 2012).
 “Millennials will overtake Baby Boomers as the most sought-after target for restaurateurs in
the coming years,” said Bonnie Riggs, NPD restaurant industry analyst. “This is the time to
reach them to build their loyalty. It’s important to understand that Millennials are not a one-
size-fits-all generation and their needs and wants are varied” (SBDCNet, 2012).
 …older Baby Boomer consumers are expected to contribute to the growing popularity of
coffee, fish/seafood items and breakfast foods (SBDCNet, 2012).
1.1.5 Technological Factors
The worlds of food and technology have increasingly become entwined. The perceptive food
truck owners’ use of “social media serves as a classic example of how entrepreneurs can harness
technology to promote their business and communicate with their customers in an authentic way”
(Intuit, 2012). Social media marketing “has enabled food trucks to interact directly with their
customers to foster a sense of community and to create brand loyalty” (Seo, 2013). The use of social
media by food truck entrepreneurs “is unique from other businesses because of the mobile nature of
the industry, and Twitter, Facebook and other tools provides a way to broadcast their location”
(Wallsten & Rhyan, 2014). The use of social media sites—such as Twitter, Facebook, and
Pinterest—is an imperative for growth and differentiation in this industry.
Also playing an important role are mobile payment systems, such as Intuit’s GoPayment, which
enable food trucks to accept credit cards. The use of tablets and other handheld computing devices
in which to manage business operations and to take orders creates efficiency, which cuts costs and

adds to the bottom line. Staying current on the latest technological advances is crucial to gain an
edge within this industry and garners a completive advantage. That is, “cellular data networks
connect food trucks to their suppliers and, of course, smartphones help food trucks communicate
with their customers” (Intuit, 2012).
Moving forward, “mobile payment options (which Intuit offers) will be one force in
expanding food trucks beyond big cities and college campuses, notably the suburbs” (Hepler, 2012).
It is important to keep current on all mobile payment technologies in which to cut operations costs and
increase margins.
1.2 Sales Analysis
Refer to section 7.4
1.3 Competitive Analysis
1.3.1 Competitive landscape
Fast Food
Consumers demand quick and convenient meals; “they do not want to spend a lot of time
preparing meals, traveling to pick up meals, or waiting for meals in restaurants” (Jekanowski, 1999).
As a result, most consumers rely on fast food. Knowing this, “fast food providers are coming up
with new ways to market their products that save time for consumers” (Jekanowski, 1999). For
example, “McDonald’s currently has outlets inside nearly 700 (out of 2,374) Wal-Mart stores across
the United States, and almost 200 outlets in Chevron and Amoco service stations” (Jekanowski,
1999). These arrangements allow consumers to “combine meal-time with time engaged in other
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activities, such as shopping, work, or travel,” which is the idea that “shapes the growth strategies of
most firms in the industry”—strategies that can be characterized by this passage from the 1994
McDonald’s Annual Report (The Annual):
McDonald’s wants to have a site wherever people live, work, shop, play, or gather. Our
Convenience Strategy is to monitor the changing lifestyles of consumers and intercept them
at every turn. As we expand customer convenience, we gain market share (Jekanowski,
1999).
The accelerated rate at which the fast food industry continually adds fast food outlets is as much
a “reflection of consumer demand for convenience as it is a reflection of demand for fast food
itself:” expanding the number of outlets “increases accessibility, thus making it more convenient for
consumers to purchase fast food” (Jekanowski, 1999). Most notably, much of the expansion in
recent years has been in the form of “satellite” outlets, similar to those mentioned above. These
outlets tend to be “smaller in size, with little or no seating capacity, and are often in nontraditional
locations, such as office buildings, department stores, airports, and gasoline stations; locations
chosen specifically to maximize convenience and consumer accessibility” (Jekanowski, 1999).
Supermarkets
As most fast food chains emphasize the factor of convenience, coupled with lower prices—
thereby “offering a narrow range of menu items, which are usually based around ‘hand-held’
foods”—such firms as “Boston Market, Koo Koo Roo, and Kenny Roger’s Roasters are blurring
the lines between fast food, casual dining, and supermarket foodservice” (Jekanowski, 1999). By
expanding food menus to include “fully prepared, multi-course meals for eat-in or carry-out,” these
firms promote a ‘home-cooked’ image whereby such entrees as “ham, meatloaf, roast beef, and

baked chicken, along with numerous vegetable choices,” positioning themselves to compete with
fast food firms and full-service restaurants for the time-constrained healthy conscience consumer
(Jekanowski, 1999). Intended to eliminate a consumers’ need to cook at home, Home Meal
Replacements (HMR’s) provide a wider variety of high quality foods to which are as convenient and
affordable as fast food (Jekanowski, 1999).
Supermarkets are capitalizing on the popularity of HMR meals by increasing the quality, variety,
and promotion of their HMR offerings in which the HMR design focuses on an easily reheated meal
using an oven or microwave at home, and may be stored in the refrigerator for 3 to 4 days without
significant reductions in quality (Jekanowski, 1999). This aspect provides an advantage over
traditional fast food offerings, which usually requires the immediate consumption of a meal for the
best quality and taste. Although supermarkets tend to be more inconveniently located as many fast
food outlets, “consumers clearly enjoy the quality and variety of many of their prepared meal
offerings” (Jekanowski, 1999). Additionally, the average trip to the grocery store per week by the
consumer amounts to 2.2 trips, which grant consumers ample opportunities to regularly purchase
HMR meals; thus, vastly becoming a “major competitor to traditional fast food” (Jekanowski, 1999).
Full Service Restaurants
Full-service restaurants tend to “offer more varied menus and dining amenities” than fast food or
fast casual establishments, but also lacks convenience (Stewart, Blisard, Bhuyan, & Nayga Jr., 2004).
However, to provide more convenience to the consumer, full-service restaurants “could both open
more outlets and offer more variety/dining amenities at each establishment;” in 2001 for instance,
“full-service restaurants were offering 31.6 percent more items on their menu than in 1997”
(Stewart, Blisard, Bhuyan, & Nayga Jr., 2004). Full-service restaurants were also expanding the scope
of their services, which include new options for takeout. In short, “full-service restaurants may try to

capture the growing demand for varied menu items among consumers who also remain time-
starved” (Stewart, Blisard, Bhuyan, & Nayga Jr., 2004).
Although spending for fast food has been shown to increase in conjunction with the number of
hours worked by a household manager, dining at a full-service restaurant, by contrast, can take as
long as preparing, eating, and cleaning up after a meal at home. Thus, “there is neither a clear
theoretical nor empirical relationship between a household's demand for food at full-service
restaurants and its time constraints” (Stewart, Blisard, Bhuyan, & Nayga Jr., 2004). The specific value
to the consumer appears to be the expanded menu options, specifically those items in which
healthier meal options are offered. Further, “this restaurant industry segment experienced the largest
drop in sales volume following the economic decline in 2008, according to the National Restaurant
Association” (Akers, 2014).
Quick Service
This segment includes fast-food chains and casual restaurants, of which offers buffets and take-
out service. Similar to that of their full service counterparts, they feature menus centered on a
particular type of food, such as American or sub sandwiches. Customization is offered at some
restaurants, and meals are typically prepared in front of the customer. Most quick service restaurants
“prepare meals immediately after a customer places an order,” with serving times usually within
minutes, and prices relatively inexpensive; moreover, “food may be consumed off-premises, at a
customer's home or work location” (Akers, 2014).
Eating and Drinking Place
This segment includes caterers, food truck vendors, and refreshment stand vendors. Typically,
meals served by these establishments are consumed on-site. For example, a food truck may prepare

and serve meals for patrons at an outdoor festival or a catering company may prepare and serve
meals for consumption at a company sales convention.
Retail Host
Located inside gas stations and grocery stores; typically, these are “franchises of major brands,
such as specialty coffee or fast-food chains” (Akers, 2014). Some convenience stores “are replacing
franchises with their own quick-service restaurants and menu items;” these locations “give
convenience and grocery store customers the option of freshly prepared meals that are reasonably
priced” (Akers, 2014). Customers usually do not consume the food on-site. In the last few years,
“the retail host segment experienced some of the restaurant industry’s solid growth” (Akers, 2014).
Levelof Competition,Volatility, & Competitive Barriers
The Food Trucks Industry is a sector of the restaurant industry that experiences moderate to
fierce competition—depending on the region. That is, competition is at its highest where mobile
locations are limited due to regulatory restrictions. Further, this sector is still in its early growth
phase, and it is projected to grow exponentially in the next five years.
DANG! Fancy Southern Grub specializes in BBQ and this food truck primarily serves the Dallas
Fort Worth metroplex. In the Dallas Fort Worth metroplex, there are 10 food trucks that offer
BBQ; thus, competition his high within this market.
 The Food Trucks industry exhibits a low level of concentration due to the highly fragmented
nature of the industry. New enterprises have entered the industry at a faster rate, causing the
industry to become more fragmented. IBISWorld anticipates this trend to persist in the
upcoming years as mobile food vending becomes popular in less saturated regions (PRWEB,
2014).

Food trucks must face many barriers in order to break through and find success. These include
overcoming a lack of physical location, meeting governmental regulations, finding a way to achieve
operational efficiencies, and meeting the needs of mobile consumers. While some food truck
operators have found unique ways to solve these issues, they are often the problems keeping these
mobile restaurateurs awake at night (Mintel Group Ltd., 2013).
PotentialSources ofCompetitive Advantage
 A potential competitive advantage is to improve operations by streamlining the menu in
which to be best at the few things. Through limiting the number of menu items served, it
helps to better track ingredients and fosters a more sustainable operation.
 Better positioning equates to a competitive advantage: “Continuing to build the food truck’s
presence offline and online… improves the business’s growth potential and positions it
against the rising number of competitors” (Zirker, 2013).
 Consistency is another potential competitive advantage. By keeping a consistent schedule,
this helps to increase customer following. This is done by being in the same space at the
same time, every week, and then letting customers know about the day’s location on Twitter
and Facebook.
 Leveraging the truck’s off hours also gives operators an opportunity to differentiate their
business. Some food trucks have developed additional streams of income by booking private
events when the truck is not scheduled to be anywhere else (Zirker, 2013).
 Becoming an expert at individual municipalities’ regulations will also give new food-truck
operators a competitive advantage, the experts say. Local regulations have proved to be one
of the biggest challenges food-truck owners have faced since the trend exploded (Zirker,
2013).

 By offering superior service, this results in a critical competitive advantage. Large companies
have advantages in purchasing, finance, and marketing. Small companies can offer superior
food or service.
1.3.2 Key Players
The Competition
DIRECT COMPETITORS
 HORNS N SNOUTS
Service Offering: BBQ, Sandwiches
Size: one truck
Brand Equity: 5 Facebook Likes; 170 Twitter followers; Brand awareness is low.
Strengths & Weaknesses: A recent winner of the Northwood Church Food truck
Competition. The food truck is professional and well designed with advertising and
branding on sides and front. However, this company is not very active on Twitter,
and does not have their route schedule posted on their website, which makes it hard
for customers to find them. Further, this truck is not connecting with potential
customers on a real time basis. Their social media usage lacks anything to be desired.
Financial Resources: This truck likely does around $80k to $100k in revenue a year,
mostly relying upon catering business for most of their revenue.
 THE BUTCHER’S SON
Service Offering: American Classics, BBQ, Southern
Size: 2 trucks

Brand Equity: 4,800 Twitter followers; 6,545 Facebook Likes; Recognized in The
Dallas Observer, Eater, QSR, Entrée Dallas, OHHEYDALLAS, Social Hospitality,
Side Dish, Nation’s Restaurant News, Eat Street, and Dallas Business Journal.
Strengths & Weaknesses: This food truck has high brand awareness, a sizable
number of customer loyalists, and excellent customer reviews. This truck is also a
gourmet food truck and has a national brand affiliation with Johnsonville Sausage.
This truck is also very active on Twitter and Facebook, which is a crucial component
for success. Further, their association with Johnsonville Sausage garners a large
distribution network, likely increasing profit margins and lowering food costs.
However, the menu is bulky and there is no clear branding message, other than their
affiliation with Johnsonville Sausage. Further, their website does not include prices
or a route schedule.
Financial Resources: This truck is not a million dollar operation; however, their
revenue is likely to be between $250.000 and $500,000 a year.
 FRED’S TRUCK WAGON
Service Offering: BBQ
Size: one truck
Brand Equity: 18,500 Facebook likes; 1,200 Twitter followers; 4 ½ Stars on customer
reviews; Brand awareness is high due to its brick-and-mortar locations; customer
loyalty is moderately high.
Strengths & Weaknesses: Their brick-and-mortar locations help to increase customer
visits to their food truck. The website has a schedule that is clearly labeled, with
times and street corners. Menu is posted clearly on the website, however prices are

not listed. Moreover, this business is not active on social media daily, limiting
customer interactions and also limiting customer expansion.
Financial Resources: Backed by three brick-and-mortar locations, with revenue likely
between $1 Million and $2 Million.
 OINKNMOO BBQ
Size: 1 truck
Brand Equity: 1,075 Twitter followers; 111 Facebook Likes; Recognized in The
Dallas Observer, Featured on Travel Channel's BBQ Crawl, reviewed on Thrillist
and CraveDFW; high brand awareness and actively engaging potential customers in
which increase this awareness.
Strengths & Weaknesses: This food truck has high brand awareness, a sizable
number of customer loyalists, and excellent customer reviews. This truck is also very
active on Twitter, which is a crucial component for success; this business also
interacts with potential and current customers in real time, connecting with each
customer. Further, the website includes a detailed schedule on locations and time as
well as a detailed menu. Daily specials are tweeted out to their followers, actively
engaging the customer. The one weakness is that pricing information is not included
on the website or on social media.
Financial Resources: This truck is not a million dollar operation; however, their
revenue is likely to be between $250.000 and $500,000 a year.
INDIRECT COMPETITORS
 THE LAB FOOD TRUCK

Service Offering: BBQ, Burgers, Seafood, Cajun, Soul Food
Size: 1 truck
Brand Equity: 470 Facebook likes; 648 Twitter followers; Brand awareness is
moderate; customer loyalty is low to moderate.
Strengths & Weaknesses: Very active and engaged on social media. Locations are
tweeted out to followers as well as posted on Facebook. Further, this truck is active
every day, actively pursuing customers by rotating between a few locations.
However, menu and prices are not listed on social media and this business does not
have a website. Branding is confusing and product identity absent.
Financial Resources: Typical small business with low to moderate financial resources.
 ROCKN’ RICK’S
Service Offering: American Classics, Burgers, Seafood, Cajun, Salads
Size: 1 truck
Brand Equity: 3,607 Facebook Likes; 1,144 Twitter followers; Brand awareness is
moderate; customer loyalty is high.
Strengths & Weaknesses: Very active and engaged on social media. Locations are
tweeted out to followers as well as posted on Facebook. Further, this truck is active
every day, actively pursuing customers by rotating between a few locations. Schedule
is posted on website and their blog is current and presents relevant information
regarding business activities. However, prices are not listed on social media or
website. Branding is confusing and product identity absent.
Financial Resources: Typical small business with low to moderate financial resources.

SUBSTITUTES
 Arby’s
Size: Corporation; over 1,000 locations
Brand Equity: Customer awareness is high; customer loyalty is low to moderate
Strengths & Weaknesses: Multiple locations is a convenience for the customer. Price
of meals are low relative to non-fast food restaurants. However, the food is not fresh
or healthy.
Financial Resources: Company revenue in the Billions; million dollar advertising
campaigns.
 Wendy’s
Service Offering: BBQ, Sandwiches, Burgers
Size: Corporation; over 1,000 locations
Brand Equity: Customer awareness is high; customer loyalty is low to moderate
Strengths & Weaknesses: Multiple locations is a convenience for the customer. Price
of meals are low relative to non-fast food restaurants. However, the food is not fresh
or healthy.
Financial Resources: Company revenue in the Billions; million dollar advertising
campaigns.
POTENTIAL ENTRANTS
 Bodacious BBQ
Size: 1 brick-and-mortar location

Brand Equity: Customer awareness is low to moderate; customer loyalty is low to
moderate.
Strengths & Weaknesses: Quality of food is high; fresh and cooked to order meals.
However, brand awareness is low to moderate. Social media activityis weak.
Financial Resources: Typical small business with moderate financialresources
 Outlaws BBQ
Size: A couple of locations
Brand Equity: Customer awareness is moderate; customer loyalty is low to moderate.
Strengths & Weaknesses: Food is prepared fresh. However, quality and taste of food
get moderate reviews from customers.
Financial Resources: Typical small business with moderate financialresources
RELATED PRODUCTS
 Dickey’s BBQ
Size: 100s of locations across the country
Brand Equity: Customer awareness is high; customer loyalty is moderate to high.
Strengths & Weaknesses: Quality of food is moderate to high; fresh and cooked to
order meals. However, franchise locations invite inconsistencies in the product.
Financial Resources: Revenue in the Millions
 Spring Creek BBQ
Size: Over 20 locations across Texas

Brand Equity: Customer awareness is high; customer loyalty is moderate.
Strengths & Weaknesses: Quality of food is moderate to high; fresh and cooked to
order meals. However, customer satisfaction reviews indicate inconsistencies in the
product and customer service.
Financial Resources: Revenue in the Millions

1.3.3Key Players vs. Your Company
TABLE 2. Main Competitors
Direct
Competitors
Market
Share
Product
or
Service
Description
Product
or Service
Features
Strengths Weaknesses Marketing
Strategy
Aggressiveness Threat
Level
THE
BUTCHER'S
SON
< 1% BBQ Food
Truck
High Brand
Awareness
Bulky Menu; No
Clear Branding
Message
Social
Media
Medium Medium
Fred’s Truck
Wagon
< 1% BBQ Food
Truck
Menu, Prices &
Route Schedule
on Website
Poor Social
Media Marketing
Social
Media
High High
OINKNMOO
BBQ
< 1% BBQ Food
Truck
High Brand
Awareness, Active
Social Media
Marketing
No Pricing on
Website or
Social Media
Social
Media
Medium High
Indirect
Competitors
The Lab Food
Truck
< 1% BBQ, Cajun Food
Truck
Active Social
Media Marketing
Menu & Prices
not posted; No
Website
Social
Media
High Low
Rockn’ Ricks < 1% American
Classics
Food
Truck
Active Social
Media Marketing
Menu & Prices
not posted;
Inconsistent
Brand Message
Social
Media
High Medium
…
Substitutes
Arby’s < 5% BBQ Fast Food Convenience,
Low Meal Prices
Food not Fresh;
Not Healthy
National
Campaign
Medium Medium
Wendy’s < 5% BBQ,
Burgers
Fast Food Convenience,
Low Meal Prices
Food not Fresh;
Not Healthy
National
Campaign
Medium Medium
…
Potential
Entrants
Bodacious
BBQ
< 1% BBQ Food
Truck
Quality, Fresh
Food
Brand awareness
is low
Mailers Low Low
Outlaws BBQ < 1% BBQ Brick &
Mortar
Quality, Fresh
Food
Low Customer
Loyalty; Poor
Customer
Service
Mailers Low Low
…
Related
Products
Dickey’s BBQ < 5% BBQ Brick &
Mortar
Customer
awareness is high
Product Quality
Inconsistencies
Mailers Low Medium
Spring Creek
BBQ
< 5% BBQ Brick &
Mortar
Quality, Fresh
Food
Poor Customer
Service
Mailers Medium Medium
…

1.3.4Competitive Advantage
 Social Media Marketing
o In the Food Trucks Industry, the location of operations change every
day; thus, schedule updates—with times and location—in real time,
using social media sites as Facebook and Twitter, is critical to success.
DANG! Southern Fancy Southern Grub uses Twitter and Facebook
to update customers on business activities multiple times a day.
Compared with its competitors, DANG! Southern Fancy Southern
Grub is more active on social media than are all others in the
marketplace.
 Signature Homemade BBQ Sauce
o DANG! Southern Fancy Southern Grub uses its signature
homemade BBQ sauce in all of its products. No other BBQ food
trucks in the Dallas/Fort Worth marketplace offers a unique
proprietary sauce.

 Signature Homemade Chips
o DANG! Southern Fancy Southern Grub is the only food truck in the
Dallas/Fort Worth marketplace that offers fresh homemade chips,
prepared fresh daily.

 CustomerLoyalty
o Those who have tried DANG! Southern Fancy Southern Grub
immediately becomes hooked. Based from customer reviews,
customers come back because DANG! Southern Fancy Southern
Grub offers a unique BBQ product that others do not offer. This is
mainly due to its proprietary homemadeBBQ sauce and chips.
 CustomerService
o Realizing that customers can go anywhere to eat, DANG! Southern
Fancy Southern Grub takes pride in going the extra mile for
customer satisfaction. This customer focused element gives DANG!
Southern Fancy Southern Grub a huge competitive advantage.
1.3.5 StrategicGroup Map
FIGURE 1. Strategic Group Map
HIGH
LOW
Price/Quality
Customer Service Orientation
LOW HIGH
Outlaws BBQ
The Lab Food
Truck
The Butcher’s Son
Fred’s Truck Wagon
Oink N Moo BBQ
Wendy’s
Arby’s
Spring Creek BBQ
Dickey’s

1.4 Customer Analysis
1.4.1 Segmentation Dimensions
The Food Truck Consumer – By Day
 Speed of service and health are important at breakfast
 Lunch consumers less likely to order fried sides or desserts
 Portability matters when it comes to snacks
 Mediterranean foods popular at dinner
 Late-night consumers are social
The Food Truck Consumer – By Gender
 Women perceive food trucks to be unclean or unhealthy
 Men value portability
The Food Truck Consumer – By Age
 Millennials are price sensitive and like variety
 Despite higher incomes, Baby Boomers prefer to eat at home or at restaurants instead
The Food Truck Consumer – By Income
 Low-income consumers prefer fried sides, not too concerned with variety
 Middle-class consumers have trouble locating food trucks easily
 Cuisine type is important to affluent consumers
The Food Truck Consumer – By Race
 Whites seek food trucks that are easily accessible
 Blacks enjoy traditional American fare
 Asians prefer a variety of cuisine types, as long as they are authentic
The Food Truck Consumer – By Hispanic Origin
 Hispanics rely on word-of-mouth and provide reviews
The Food Truck Consumer – By Region
 Northeasterners skew healthy in their item selection
 Midwesterners are concerned with price and portability
 Southerners are well-suited for combo meal deals
 Westerners are interested in ethnic cuisine

1.4.2 Target Market
Demographics
 Age: From 18 to 34.
 Gender: Appeal to both genders.
 Social status: Successful, motivated, and well educated.
 Ethnicity: All people.
 Income: Have a disposable income.
 Social class: Middle to upper class.
 Millennials
Psychographics
 Lifestyle: Fast paced, always on the go, and health conscious
 Attitudes and beliefs: Food trucks are a good place to eat.
 Perceptions: Food trucks are the new and cool trend.
 Personality: People who feel they are young, fun, and are looking for the newest trend.
 Adopter category: Early adopters starting off and then early majority once established.
1.4.3 ForecastedChanges
Future Target Customer Needs
 Successful recent tactics to drive traffic and boost profits include beverage loyalty programs,
promotions to build off-hour demand for specialty drinks, an influx of new and non-
carbonated options, and offerings that appeal to the aging population. Finding new ways to
promote beverages will continue to be a successful strategy for restaurants (SBDCNet,
2012).

 Social media will be important in stimulating consumer trial and restaurants will use
discounts, loyalty and other programs to convert these consumers into regular customers
(SBDCNet, 2012).
Future Buying Behavior
 The fastest-growing part of the restaurant industry over the past few years has been the fast
casual or quick-serve segment, such as Chipotle. These restaurants do not provide full table
service, but offer a higher quality of food and a better atmosphere than traditional fast-food
establishments. Food trucks also serve this segment, providing time-challenged customers
easily accessible, quality food and the fast service they require (Intuit, 2012).
Future Changes in Market Segments
 IBISWorld predicts that consumer spending on meals away from home will increase by
3.3%, on average, over the next five years (SBDCNet, 2012).
 Food trucks will expand geographically over the next several years. Currently, most operate
in college towns and major cities. Over time, their range will expand to smaller communities
and suburban locations.
 Emergent Research “expects food trucks to generate between 3 and 4 percent of total
restaurant revenue–about $2.7 billion–by 2017, a fourfold increase from 2012” (Intuit, 2012).

1.5 SWOT Analysis
TABLE 3. SWOT
STRENGTHS
- Cost structure / efficient production process
- Culinary know how
- Very good reputation
- Superior product
- Highly qualified workforce
- Customer Service
WEAKNESSES
- Little financial resources
- Poor brand awareness
- Inexperienced in navigating political system
- Lack of relationships with key industry members
OPPORTUNITIES
- Emerging markets
- Growing demand
- Changing customer tastes, specifically that of the
younger generation of millennials
- New product uses
- New regulations
- New distribution channels
THREATS
- New competitors entering market
- National chains with prior branding entering
market with their own food trucks
- New regulations
- Market saturation

2. OBJECTIVES
2.1 Corporate Objectives
CorporateObjectives
 The Dang! Fancy Southern Grub Company’s mission is to bring the fastest and tastiest food
at value that our customers will appreciate over other local businesses and food trucks.
Local Objectives
 Be the cleanest, best tasting, food truck with sales that remain both profitable yet affordable
to our customer base.
2.2 Marketing Objectives
2.2.1 Short-term(upcomingyear)
 Acquire 25% of the market share within the first year of operation
 Marketing blitz within the first year to reach newspaper, local internet ads, radio stations,
flyers, and pamphlets.
 Establish a base of customer loyalty with at 33% minimum repeat customers weekly
 Integrate customer satisfaction and suggestions into future development to achieve 90%
satisfaction within the first year
 Gain at least 100 new clients per day in the first quarter
 Maintain cleanliness standards to maintain 90% and above on all food inspections with no
major violations
2.2.2 Long-term (3 to 5 years)
 Acquire 60% of the market share by year 4

 Become the top selling and grossing food truck brand in our market in year 5
 Build strong ad awareness over next three years
 Make our brand synonymous with a fast, tasty, and affordable lunch option
 Increase profit margin by 15% by the end of year 3
 Maintain customer loyalty base with 50% repeat customers weekly
3. MARKETING STRATEGY
3.1 Market Segmentation Strategy
 GeographicSegmentation
Geographic segmentation is segmenting customers based on geographic area, such as city,
country, ZIP code, metropolitan statistical areas, time zone, etc. A survey done by the
National Restaurant Association about people who visited a food truck found “Consumers
living in the West (29 percent) and Northeast (24 percent) were much more likely than those
in the South (15 percent) and the Midwest (9 percent) to see a food truck parked in their
community this summer” (Stensson, 2011). While the South has some catching up to do in
numbers this shows that there is a market in the area for Dang! Fancy Southern Grub and a
lot of room for growth, which means more customers.

 Product-UserSegmentation
Product-user segmentation is segmenting customers based on product usage. This can be
based on the amount and/or consumption patterns of a product category or brand. The
National Restaurant Association survey also found in their 2011 survey “nearly six out of ten
(59 percent) would be likely to visit a food truck if their favorite restaurant offered one, up
from 47 percent just one year ago” (Stensson, 2011). This shows that people are becoming
more aware of food trucks and are more likely to buy food. Thanks to social media the old
perception about the food truck industry is changing. This is good for Dang since this
should help increase consumption of their product.
 Lifestyle Segmentation
Lifestyle segmentation is segmenting customers based on their lifestyle. This type of
segmentation can be based on many different areas in a person’s life. For instance this
segmentation can include values, beliefs, attitudes, perceptions, leisure activities, sports
interest, media usage, political views, etc. With this type of segmentation we are concerned
with the thinking of millennials which is our target market. Millennials are the type of people

who want things done fast because their life is moving at a quick pace. At the same time they
want food that is health because they are more concerned and educated about their health.
 Main Market Segment
The main market segment Dang! Southern Fancy Grub will focus on is lifestyle
segmentation. We are interested in how the millennials are living and why they make their
choices. This will help use to understand them and marketing to them on a more personal
level. By understanding someone on a more personal level you can make sure your
advertisement will actually have an effect on the person. You are also area of what you
should not put out on your site because you can offend the customer. A political quip you
think is funny may not be funny to several of your customers, which means you may have
just lost those customers. Keeping customers is not just about serving great food you also
have to make the customer happy and feel comfortable about coming to your truck.
3.2 Targeting Strategy
The targeting strategy used by Dang! Southern Fancy Grub will be target marketing, meaning we
are going after a certain segment with a tailored offer. We plan to do this through the use of social
media. Dang! Southern Fancy Grub is focused on serving the millennials, which are 18 to 34 year
olds. The marketing will be done with different social media applications, including Facebook,
Twitter, Linked In and other social media tools. The social media area is continually growing with
new applications and this area is always changing with updates. “Some social media experts put the
number of applications available today at more than 100 if you’re counting bookmarking sites, blog
publishing tools, the Ustreams, and the Nings of the world” (Smith, 2010). While not all of these
applications will apply to the marketing efforts of Dang! Southern Fancy Grub, it does provide

several avenues for the company to pursue. With the use of social media, the company will be able
to stay in constant contact with its customers.
We decided against mass marketing and differential marketing because of the cost hindrance.
Trying to run ads on TV, the internet, or print up flyers are all costly and are not guaranteed to reach
potential customers. “The average millennial checks his or her smartphone 43 times and spends 5.4
hours on social media per day” (Taylor, 2014). Since we are focusing on the millennial’s who have
the largest presences on social medial application, using social media to advertise seems the logical
and cost effect way to go.
3.2.1 Target Market
The target market for Dang is the millennial generation. Since our advertising relies on the use of
social media, the millennials are the best groups to reach. As mentioned above, this group of people
spends around 5.4 hours on social media per day. The millennial’s world is quick paced so they have
become accustom to moving at a quick pace. They want everything fast but they want these items to
be made with high quality. They are also health conscious, so they want healthy, good food fast as
well. Below is a breakdown of the millennials based on several different areas.
Demographics
 Age: From 18 to 34.
 Gender: Appeal to both genders.
 Social status: Successful, motivated, and well educated.
 Ethnicity: All people.
 Income: Have a disposable income.
 Social class: Middle to upper class.

Psychographics
 Lifestyle: Fast paced, always on the go, and health conscious
 Attitudes and beliefs: Food trucks are a good place to eat.
 Perceptions: Food trucks are the new and cool trend.
 Personality: People who feel they are young, fun, and are looking for the newest trend.
 Adopter category: Early adopters starting off and then early majority once established.
Consumption patterns
 Buying motives: When the customers are hungry or thirsty.
 When, where and how they buy: The customers have to buy at the food truck location
around lunch time and dinner time.
 How often they buy: They can buy lunch or dinner.
 Types of important buying situations: The customer’s lunch time and break times.
Marketingand Brand dimensions
 Openness to marketing: Open to marketing because they want to try new things.
 Familiarity with brand: Are willing to try new things based on others recommendations.
 Brand loyalty: Have a strong brand loyalty as long as the service and quality meets their
expectations. A survey of 2,000 millennials about brand loyalty found “Some 64% of
Millennials say they feel at least as much brand loyalty to their favorite brands as their
parents do to their own favorite brands” (Nanji, 2014). This shows that once this group of
people likes something they stick with that brand.
 Customer satisfaction: Want the food quickly but made with high quality and care.

 How they choose between competing brands: Varying reasons, but a main reason is price.
The survey done by Nanji also found that 62% said value or price, 53% said friend
recommendation, 47% said reputation, and 35% said quality as well as several other reasons
seen in the chart below (Nanji, 2014).
 Do they select a product based on brand or product attributes? Both brand and product
attributes can affect the selection decision. Millennials have a strong brand loyalty as seen
above. However, they are also looking for the next best things based on several categories as
seen above.
Nature of your relationship with customers
 Face-to-face, telephone, Internet, mail: Face to face and social media.
 Closeness of the relationship: Close so people will want to come back.
 How often is their feedback requested? Always, feedback will help us grow and meet their
needs better.

 How often do you communicate with them? Dang! Fancy Southern Grub will be in contact
with customers everyday so as to always stay current with market feedback.
3.3 Product Life Cycle
 Pioneering stage
o Dang would enter the Dallas marketing in the pioneering stage. There are some food
trucks in the Dallas area but it is not overflowing with competition. The advertising
used in this stage is mainly focused on social media, as we are trying to appeal to the
younger generation. With different social media applications, we would show and
explain exactly what Dang! Fancy Southern Grub has to offer. We will let people
know what types of food are offered and why it is better than any other restaurant or
food vendor in the area.
 Competitive stage
o During the competitive stage, Dang will still use social media to advertise. Using
social media, Dang! Fancy Southern Grub would retain their original customers and
try to bring in new customers. We would continue to seek out the best and most
popular social media apps available. During the competitive stage, more time and
effort will have to be put into monitoring the different sites; this will help us keep
out customers because they will be up to date on the newest information and always
know our location.
 Retentive stage
o During the retentive stage, we will continue to use social media to reach out
customers. Out regular customers will be used to this method of contact. We will

always try to get new customers, since new people will always be joining social media
sites. With social media, we will continue to reinforce what is great about the
company. The advertising used in this stage simply reinforces or reminds customers
of the qualities and acceptanceyour product is already recognized for.
3.4 Potential Strategies
3.4.1 StrategyFormulation
There are three main strategies of focus. There is the differentiation strategy, cost focus strategy,
and the differentiation focus strategy or niche strategy. Each one of these strategies offers Dang!
Fancy Southern Grub a unique perspective on how to do business. The product, place, and
promotion are the same for any strategy. Dang! Fancy Southern Grub has a set menu for when it
opens. The menu can change in the future as new food is added but the food will always revolve
around southern grub. The place is subject to change as we try to find the best place for the truck
and which area will give us the most access to our customers. The customers will always be aware of
our location through social media. The promotion is the same for any strategy, we are using social
media. It is a way to save on cost and keep in constant contact with our customers. Price is the only
element that would have to be changed between the strategies. Using the differentiation strategy and
the niche strategy the price and stay the same. If we were to use the cost focus strategy then we
would have to consider cutting cost somewhere to lower our prices.
 Differentiation Strategy
o This is a marketing strategy which involves differentiating your company from
competitors. This can be done by highlighting key variables such as price, quality,
features, customer service, etc. It is always important for your company to stand out
from the competitors. While there is not an overflow of food truck vendors in

Dallas, it is never too early to start separating yourself. Eventually more food trucks
will enter the market and the strategy may have to be tweaked but we would still
stand out from any new competition.
 Differentiation Focus Strategyor Niche Strategy
o The niche marketing strategy will focus on a very distinct, sometimes small and
possibly overlooked market segment. We are focusing on marketing to the
millennials through social media. While this is not an overlooked group, it is distinct
and small. Millennials view things differently than past generation. They are always
on the moving and want items quickly and high quality. They are also more health
conscious than previous generations. They food truck is able to meet their needs
with quick, healthily, and high quality food.
 Cost Focus Strategy
o This type of marketing strategy involves offering a basic low-cost product to a small
market segment, which would be the millennials. Everyone wants to pay the least
amount possible for anything they buy. This is seen in the survey done by Nanji
where 62% of the people interviewed looked at price when choosing a brand (Nanji,
2014). At the same time of wanting items for a low price, they want the items to be
of high quality. However, this is hard to do sometimes because in order to lower
prices something else in the company has to either be lowered or possibly cut as well.
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3.4.2 StrategyPros & Cons
Strategy #1: Differentiation Strategy
Pros:
 Using this strategy Dang! Fancy Southern Grub would stand out for the competition. We
would show everybody what is great about the company and why they should eat at this
establishment.
 As new vendors show up you will have already have made your position know and standing
out for the new vendors could just require a few changes.
Cons:
 A con of using differentiation strategy is you are trying to appeal to everyone. Dang! Fancy
Southern Grub would not solely be focusing on the millennials.
 The changes that have to be made in order to keep standing out could be costly and/or time
consuming.
Strategy #2: Differentiation Focus Strategy or Niche Strategy
Pros:
 Dang! Fancy Southern Grub would be able to focus on the millennials, which is the target
market, with the full effort of their promotion.
 Dang! Fancy Southern Grub would be able to save time with their promotion because the
company would not have to create as many types of promotion areas. The company can
keep a steady and similar stream of promotion with the millennials.
Cons:
 Dang! Fancy Southern Grub could be missing other groups of people who would like the
type of food served. These people would have to find out by word of mouth.

Strategy #3: Cost Focus Strategy
Pros:
 Dang! Fancy Southern Grub would have lower prices than competitors would, which is a
strong consideration for many people.
Cons:
 In order to lower prices, Dang! Fancy Southern Grub would have to cut cost in some area of
the company. This could mean serving food with lower quality or having less staff which
means the wait time increase.
 Sometimes having to low of prices can have the opposite affect and make people wary of
buying from your company. People will wonder about what they are getting and may decide
to go elsewhere.
 Trying to lower prices without losing quality can hurt the company’s bottom line.
3.5 Core Strategy
Dang will use the differentiation focus strategy or niche strategy. This way we are able to focus
the promotional effort directly on our target market. While doing this we may miss some other
potential customers, we would rely on word of mouth of the millennials we serve. This strategy will
help us save time in our promotion because we will not have to think of an advertisement to fit
several different groups. This strategy is steady and strong method and will stay that way well into
the future. As the food truck industry matures in Dallas we will stay focus on our niche strategy of
appealing to millennials through social media. Social media is always changing so we will have to stay
on top of the newest app that is being used. By using the social media apps we will use several types
of marketing within the niche strategy. Dang! Fancy Southern Grub will work at maintain a steady
growth of customers through the use of digital marketing and creating relationship with their

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