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Business Plan for Asian Corner
- 1. Asian Takeaway Weidi Shi (9668531), Wen-Yuan Tsai (9673927), Baihui Xie (9649049), Shengjun Xi (9678001), Yifang Zhou (9637604) Asian Corner Source: Google Images, 2015
- 2. Outline • Market Background • Business Overview • PEST • Competitors • SWOT • Corporate Strategy • Marketing & Financial Objectives • STP • The Marketing Mix • Financial Implications • Operational Considerations • Controls and Evaluations 2
- 3. Students of UoM Who Like Asian Food Students of UoM who are In A Hurry Asian Restaurants Takeaways Want Asian Food & In A Hurry Demand Supply Fast, Authentic & Cheap Asian Takeaway – Asian Corner Market Background Increasing Asian students, increasing demand for cheap & diversified food GAP 3
- 4. Business Overview Asian Corner is an Asian takeaway van located next to the Learning Commons of The University of Manchester. The major attraction of the van is that it provides various Asian food with student-friendly price. 4
- 5. Business Overview • Asian Corner will be an Asian takeaway van located next to the Learning Commons of The University of Manchester. • The major attraction of the van is that it provides various Asian food with student-friendly price. • Operation Hours: 9am-3pm on weekdays Mission: • Save customers’ queuing time for meals • Become the 1st choice of authentic Asian takeaway for UoM students 5
- 7. Political/Legal • Cooperating relationship between UK & China Political Stability • General Food Safety, Food Hygiene, etc. Related Regulations • Tax • Insurance • Registration • Waste Management Others (Manchester City Council, 2015) (Manchester City Council, 2015) (GOV.UK, 2015) 7
- 8. Economics • Rank 8th out of 189 countries in Ease of Doing Business • Inflation rate (- 0.1 in Oct 2015) The UK • Average income projected to rise by 1.6% in Manchester Manchester • The UK has the Largest street food industry in Europe • Increasing market value of street takeaways Street Food (Euromonitor International, 2015) 8
- 9. Social • The UK’s population is getting more diverse Population • Projected to grow by 23% over 2013-2018 in the UK Sales Growth • Nearly 69% of consumers are interested in trying foreign dishes that they have not tried before Consumers (Lanschützer, 2014) 9
- 10. Technology • Pre-ordering apps • Notification apps Launched Apps • WIB machines and home scanning device were launched to different target customers • AdSmart technology helps customized adverts Hard & Soft Ware (Mintel, 2015) 10
- 11. Competitors No Direct Competitor Many Indirect Competitors 11 (Google Maps 2015) Competition Zone
- 12. Competitors Asian Restaurants Takeaways Supply Competitors Asian Restaurants: Red Chilli FoodOnCampus: Café at The LC Fast Food Chains: McDonald's Self-Brand Takeaways: Babylon Others (Cafés, Bars): Kro BarOthers 12
- 13. Competitors Category Representative Av. Price (£) Number Food onCampus Café at The LC 5 18 Fast Food Chains McDonald's 5 2 Self-Brand Takeaways Babylon 3.5 2 Asian Restaurants Red chilli 7 1 Others Kro Bar 6 5 5.3 28 Main Indirect Competitors: Within 5-minute walk to LC (Foodoncampus 2015; Google Maps 2015) 13
- 14. SWOT Analysis 14
- 15. Strengths • Easy to startup • Location advantage Our Business Our Product 15 •Authentic: Asian Street food •Low price: lower than competitors' •Time-saving: within 5 minutes
- 16. If there is an outdoor Asian takeaway on campus, which will be your most preferable location in the following map? (multiple choices) Answer Response % Near the Learning Commons 27 57% Near Alliance Business Building 15 32% Near University Place 23 49% Near Whitworth Park 9 19% None of the above 1 2%
- 17. Strengths • Easy to startup • Location advantage Our Business Our Product 17 •Authentic: Asian Street food •Low price: lower than competitors' •Time-saving: within 5 minutes
- 18. How long are you willing to wait for outdoor takeaways? (multiple choices) Answer Response % Within 1 minute. 8 17% 1-3 minutes 20 43% 3-5 minutes 23 50% Over 5 minutes. 7 15%
- 19. Strengths • Easy to startup • Location advantage Our Business Our Product 19 •Authentic: Asian Street food •Low price: lower than competitors •Time-saving: within 5 minutes USP
- 20. Weaknesses • Easily influenced by weather conditions, etc. Instability • Cash only • No delivery service • High cost if authentic ingredients Operational Limitation • Products may be imitated Low Competitive Threshold 20
- 21. Opportunities • More Chinese students, more Asian population in Manchester in the next 10 years Asian Population • Manchester consists of 24.3% young population (20- 29) Young Generation • Projected to grow by 23% over 2013-2018 in the UK Sales of World Food (Lanschützer 2014) (Manchester City Council 2015) (Manchester City Council 2015) 21
- 22. Threats • Nearby restaurants provide home deliveries Competitors • Technology development Convenient Apps • “Rain City" - consumers tend not to buy at the outdoor van Unpredictable Weather (Mintel 2015) (The Guardian 2014) 22
- 23. Corporate Strategy Cost Leadership Differentiation Cost Focus Differentiation Focus Cost Differentiation Source of Competitive Advantage Scope NarrowBroad (Porter 1985) Authentic Asian takeaway Niche Market: Students of UoM who like Asian food & time- conscious 23
- 24. Corporate Strategy Cost Leadership Differentiation Cost Focus Differentiation Focus Cost Differentiation Source of Competitive Advantage Scope NarrowBroad (Porter, 1985) 24
- 25. Financial Objectives Break even 10-15% profit 25
- 26. Marketing Objectives Objectives Measurement Market Share 5% (end of 2nd year) Field research Repeat Purchase 50% Track the loyalty cards (returned loyalty cards/total *100%) Brand Awareness 70% of UoM students’ Surveys 26
- 27. STP 27
- 29. 29 Targeting 3. Thinking of takeaways, which of the following are you willing to try (multiple choices)?
- 31. Targeting Students of UoM Who Like Asian Food Students of UoM who are In A Hurry Like Asian Food & In A Hurry Demand 31 Location Competition Zone Competition Zone Within 5-minute walk to LCPrimary Secondary Secondary
- 32. Targeting – A Typical Customer UoM Student 19-30 Interested In Asian Food Time Conscious Price Conscious Make Prompt Decisions Within 5-minute walk to LC 32
- 33. Positioning Expensive Cheap Common Authentic CloseFar Away Fast Slow Speed, Distance, Scarcity, CostUSP: Fast + Close + Authentic + Cheap 33 (Learnmarketing 2015)
- 35. Product 35
- 36. Place 36 37% 20% 31% 12% which will be your most preferable location in the following choices? Near the Learning Commons Near Alliance Business Building Near University Place Near Whitworth Park
- 37. Place Wing Hing Long & Worldwide Foods Asian Corner Customer Upstream Downstream 37
- 38. Price Value-based Pricing: Consistent with the student perceived value (￡4.70) Competition-based Pricing: Average lower than ￡5.00 Take cost into consideration 38
- 39. Promotion 39 During semester Long vocations 10% student discounts 3 for 2 Seasonal promotions: • Existing customers: Loyalty cards • Others: Free snacks & product trial 7% 47% 16% 13% 16% 1% Which kinds of promotional activities will attract you? Loyalty card 10% student discount 3 for 2 Free snacks by liking Facebook page or Wechat Occasionally special treats Others
- 40. People Recruiting Training Teamwork 1 manager 2 cooks 1 customer assistant 40
- 41. Financial Considerations Break-even Point (Good) 41
- 42. 2 Year Cash Flow 2016Q1 2016Q2 2016Q3 2016Q4 2017Q1 2017Q2 2017Q3 2017Q4 Total Cash Inflows $46,288.00 £58,420.60 £46,238.42 £50,673.25 £70,386.89 £76,245.15 £67,190.17 £72,223.59 Total Cash Outflows £31,413.00 £33,952.98 £24,595.57 £27,460.75 £43,130.54 £36,270.98 £26,900.02 £28,731.27 Net Cash Balance $14,875.00 £24,465.62 £21,642.85 £23,212.49 £27,256.35 £39,974.17 £40,290.15 £43,492.32 Good 2016Q1 2016Q2 2016Q3 2016Q4 2017Q1 2017Q2 2017Q3 2017Q4 Total Cash Inflows $34,192.00 £36,921.40 £23,616.02 £21,441.25 £29,519.69 £28,459.62 £17,233.83 £15,456.77 Total Cash Outflows £31,413.00 £33,952.98 £24,595.57 £27,460.75 £43,130.54 £36,270.98 £26,900.02 £28,731.27 Net Cash Balance $7,891.00 £9,100.82 £2,087.65 -£1,929.91 -£4,199.58 -£910.17 -£5,832.19 -£8,775.94 Bad £23,212.49 £43,492.32 -£1,929.91 -£8,775.94 42
- 43. Profit and Loss Statement Profit and Loss Statement Good 2016 2017 Cash Flow from Operating Activities Net Sale £ 130,636.80 £ 155,312.64 Cost of Good Sold £ 55,209.60 £ 65,638.08 Payroll £ 37,728.00 £ 37,728.00 Rent £ 11,857.60 £ 11,857.60 Utilities & Telephone £ 1,500.00 £ 1,400.00 Insurance £ 1,024.12 £ 1,024.12 Miscellaneous £ 1,230.00 £ 1,200.00 Maintenance & Repairs £ 1,000.00 £ 800.00 Payroll Tax £ - £ 7,449.29 Supplies £ 2,208.66 £ 2,650.40 Taxes & Licenses £ 381.00 Total Cash Flow from Operating Activities £ 18,497.82 £ 25,565.15 Cash Flow from Investing Activities Business Start-up Cost £ 10,000.00 £ - Total Cash Flow from Investing Activities £ 10,000.00 £ - Cash Flow from Financing Activities Loans £ 5,285.33 £ 5,285.33 Total Cash Flow from Financing Activities -£ 5,285.33 -£ 5,285.33 Beginning Cash Balance £ - £ 23,212.49 Net Increase/Decrease in Cash Flow £ 23,212.49 £ 43,492.31 43
- 45. Controls and Evaluations Financial Clearance Consumer Complaints Regular Meeting Quality Control 45
- 46. Controls and Evaluations 46 Canopy Trash Bin • Training • Insurance Additional Ingredients • Market Research • Events
- 47. References 47 Arion McNicoll. (2014). The coolest things technology has up its sleeve in 2014, CNN, [Online]. Available from: http://edition.cnn.com/2014/01/15/tech/innovation/the-coolest-things-technology-2014/ [accessed: 11 November 2015] Bethany Wall. (2014). Limited Service Restaurant (LSR) Specialty Shops - Snacks, Beverages & Desserts, Mintel, [Online]. Available from: http://reports.mintel.com/display/680514/ [accessed: 11 November 2015] Equality and Human Rights Commission (2010). A critical review of the use of stop and search powers in England and Wales, [Online]. Available from: http://www.equalityhumanrights.com/sites/default/files/documents/raceinbritain/ehrc_stop_and_search_report.pdf [accessed: 11 November 2015] FoodOnCampus. (2015).Find Us (The University of Manchester). [Online]. Available from: http://www.foodoncampus.manchester.ac.uk/find-us/; http://www.tastemcr.com/menus/ [accessed: 17 November 2015] Google Images. (2015). Asian Food [Online]. Available from: https://www.google.co.uk/search?site=imghp&tbm=isch&source=hp&biw=1366&bih=614&q=asian+food&oq=asian+food&gs_l=img.3..0j0i30l2j0i12i24j0i24l2j0i12 i24j0i24l3.2486.5042.0.5224.11.10.1.0.0.0.126.763.8j2.10.0....0...1.1.64.img..0.11.764.wDBOuFtVvac [accessed: 19 November 2015] Google Maps. (2015).The University of Manchester [Online]. Available from: https://www.google.co.uk/maps/place/%E6%9B%BC%E5%BD%BB%E6%96%AF%E7%89%B9%E5%A4%A7%E5%AD%A6/@53.4668498,- 2.2360724,17z/data=!3m1!4b1!4m2!3m1!1s0x487bb18e8861a121:0x7cb93350c67efb3c?hl=zh-CN[accessed: 17 November 2015] GOV.UK, (2015). UK-China Joint Statement. Available from: https://www.gov.uk/government/news/uk-china-joint-statement-2015 [accessed 22 October 2015] GOV.UK, (2015). Food premises approval (England) Available from: https://www.gov.uk/food-premises-approval [accessed 1 December 2015] HEIDI LANSCHÜTZER. (2014). World Cuisines - UK, Mintel, [Online]. Available from: http://academic.mintel.com/display/694299/?highlight [accessed: 11 November 2015] Learnmarketing. (2015). PERCEPTUAL MAPPING/ POSITIONING MAP. [Online]. Available from: http://www.learnmarketing.net/perceptualmaps.htm [accessed: 19 November 2015] Manchester City Council, [Online]. Available from: http://www.manchester.gov.uk/info/200088/statistics_and_census/438/public_intelligence/3 [accessed: 11 November 2015] Porter, M.E. (1980). Competitive strategy: Techniques for analyzing industries and competitors. New York: The Free Press. Trading Economics, (2015). UK Stays in Deflation for 2nd Month. Available from: http://www.tradingeconomics.com/united-kingdom/inflation-cpi [accessed 2 December 2015] The Guardian, (2015) UK inflation is negative again, but what does this mean for consumers? . Available from: http://www.theguardian.com/money/2015/nov/17/uk-inflation-negative-consumers-borrowers-debt [accessed 2 December 2015]
- 49. 49 Appendices • We run our own business, we are self employed • Keep records of business’s sales and expenses • Send a self assessment tax return every year Sole Trader
- 50. 50 Appendices • Businesses involving handling meat, fish, egg or diary products, must be inspected by local council • Register 28 days before starting business Registration for food business
- 51. 51 Appendices Taxes • ￡2,500 or more in untaxed income • Savings or investment income was ￡10,000 or more before tax
- 52. 52 Appendices • Must remove food waste and other food rubbish where food is present • Bins must be containers that can be closed • Have adequate facilities for storing and disposing food waste and other rubbish Waste Management
- 53. 53 Appendices Competitors 1. First inspired by Ebi – Products, Locations… 2. Field Research - Google Maps - On-site Observation - Not perfectly flawless
- 54. 54 Appendices More detailed information about food preparation • 1. All dishes except noodles (soaked) are cooked meal. If the cooked meal has been sold out, since vegetables have been chopped and cooked, meat pies and meat paste have been cooked as well, it's also very quick to wrap them up or fry. (87.5% / 2:16, cooked) • 2. As for drinks, soybean milk has been cooked everyday morning before starting the business. • 3. Apart from the chef, there is also a customer assistant in van.
- 55. 55 Appendices
- 56. 56 Appendices Credit card service & Delivery service • 1. All dish is under 5 pounds, and average price of a set is 5.06(10% student discount included ) • 2. This is not our USP. Using our weakness to compete with competitors' strength is not wise. On the inital phrase, concentrating on developing the USP is more important.
- 57. 57 Appendices Ice cream van in front of Manchester Museum
- 58. 58 Appendices Bad Cash Flow Statement Q1 Q2 Q3 Q4 Year 1 Q1 Q2 Q3 Q4 Year 2 10,000.00$ 7,891.00£ 9,100.82£ 2,087.65£ 10,000.00$ 1,929.91-£ 4,199.58-£ 910.17-£ 5,832.19-£ 1,929.91-£ 24,192.00£ 29,030.40£ 14,515.20£ 19,353.60£ 87,091.20£ 31,449.60£ 32,659.20£ 18,144.00£ 21,288.96£ 103,541.76£ 34,192.00$ 36,921.40£ 23,616.02£ 21,441.25£ 97,091.20$ 29,519.69£ 28,459.62£ 17,233.83£ 15,456.77£ 101,611.85£ 256.03£ 256.03£ 256.03£ 256.03£ 1,024.12£ 256.03£ 256.03£ 256.03£ 256.03£ 1,024.12£ 1,321.33£ 1,321.33£ 1,321.33£ 1,321.33£ 5,285.33£ 1,321.33£ 1,321.33£ 1,321.33£ 1,321.33£ 5,285.33£ 10,224.00£ 12,268.80£ 6,134.40£ 8,179.20£ 36,806.40£ 13,291.20£ 13,802.40£ 7,668.00£ 8,997.12£ 43,758.72£ 330.00£ 300.00£ 300.00£ 300.00£ 1,230.00£ 300.00£ 300.00£ 300.00£ 300.00£ 1,200.00£ 2,964.40£ 2,964.40£ 2,964.40£ 2,964.40£ 11,857.60£ 2,964.40£ 2,964.40£ 2,964.40£ 2,964.40£ 11,857.60£ 250.00£ 250.00£ 250.00£ 250.00£ 1,000.00£ 200.00£ 200.00£ 200.00£ 200.00£ 800.00£ 9,432.00£ 9,432.00£ 9,432.00£ 9,432.00£ 37,728.00£ 9,432.00£ 9,432.00£ 9,432.00£ 9,432.00£ 37,728.00£ -£ -£ -£ -£ -£ 4,683.63£ -£ -£ -£ 4,683.63£ 642.24£ 578.02£ 520.21£ 468.19£ 2,208.66£ 770.69£ 693.62£ 624.26£ 561.83£ 2,650.40£ 381.00£ -£ -£ -£ 381.00£ -£ -£ -£ -£ -£ 500.00£ 450.00£ 350.00£ 200.00£ 1,500.00£ 500.00£ 400.00£ 300.00£ 200.00£ 1,400.00£ 26,301.00£ 27,820.58£ 21,528.37£ 23,371.15£ 99,021.11£ 33,719.28£ 29,369.78£ 23,066.02£ 24,232.71£ 110,387.79£ 7,891.00$ 9,100.82£ 2,087.65£ 1,929.91-£ 1,929.91-£ 4,199.58-£ 910.17-£ 5,832.19-£ 8,775.94-£ 8,775.94-£Net Cash Balance Taxes & Licenses** Utilities & Telephone Loans* Cost of goods sold Miscellaneous Rent/Lease Maintenance & Repairs Total Cash Outflows Insurance Cash Flow Statement The Asian Corner Two year quarterly, 2016-2017 Bad 2016 2017 Beginning Cash Balance Cash Inflows(income) Cash Sales Total Cash Inflows Cash Outflows(Expenses) Payroll Payroll Tax Supplies
- 59. 59 Appendices Bad Profit and Loss Statement Cash Flow from Operating Activities Cost of Good Sold Payroll Rent Profit and Loss Statement Bad 2016 2017 Utilities & Telephone 103,541.76£ 36,806.40£ 43,758.72£ Maintenance & Repairs 87,091.20£ 37,728.00£ 37,728.00£ 11,857.60£ 11,857.60£ 1,500.00£ 1,400.00£ 1,024.12£ 1,200.00£ 800.00£ Net Sale Payroll Tax Insurance Miscellaneous 5,285.33£ Cash Flow from Investing Activities Business Start-up Cost Total Cash Flow from Investing Activities Supplies Taxes & Licenses Total Cash Flow from Operating Activities 1,024.12£ 1,230.00£ 1,000.00£ -£ 6,644.58-£ 4,683.63£ 2,208.66£ 2,650.40£ 381.00£ 1,929.91-£ 8,775.95-£ 10,000.00£ -£ Cash Flow from Financing Activities Loans Total Cash Flow from Financing Activities Net Increase/Decrease in Cash Flow Beginning Cash Balance -£ 1,929.91-£ 1,560.71-£ 10,000.00£ 5,285.33-£ -£ 5,285.33-£ 5,285.33£
Editor's Notes
- Good morning, everyone! (smile) I’d like to thank you all for being here today, for the next 20 minutes you will be introduced to Asian Corner, our business plan for Asian takeaway.
- My name is Daphne Tsai, and I will take you through the market background, business overview, and PEST analysis. My group members here, Baihui, Ema, Weidi, and Yvonne will follow on elaborating more details.
- Now, there are many students in the University of Manchester who likes Asian food, however, on campus, the nearest place they could go to is the Chinese restaurant, the Red Chili, it would be costly and also time-consuming. There’s another group of students who are time-driven, and would mostly choose to have takeaways rather than going to restaurants. When these two groups overlap, this is where we come in (smile) We will provide fast, authentic and cheap Asian takeaway.
- Our business, which will be named Asian Corner, is a van located next to the Learning Commons, providing various Asian food. Although it seems quite a challenge, there has been a precedent for it. We’ve been encouraged by the ice cream van located right in front of the Manchester museum.
- Our mission, (pause) is save customers’ queuing time for meals And (another pause), to become the 1st choice of authentic Asian takeaway for 19-30 year-old UoM students.
- We’ve done some long term macro environment analysis on factors that our business should take into account.
- First of all, President Xi’s visit to the UK indicates a cooperating relationship between the two countries, as both countries agree to cooperate on increasing the opportunities for young people for education and tourism Meanwhile, according to the Manchester city council, UK has very strict regulations on food, when setting up a business with food exceeding 25% of the trade, food premises approval need to be applied, we’d need to follow general food safety, food hygiene, failure to meet the rules could result in a fine or termination of business. Moreover, there are also taxes, insurance, registration, and waste management issues.
- For the economics, UK is ranked the 8th out of 189 countries in the ease of doing business. The inflation rate has gone below zero in Oct, which means UK is actually in deflation, indicating prices for products and services are decreasing. Narrowing it down to Manchester, the GDP is projected to increase by 1.6% over 2014-2019. Alternatively, the UK has the largest street food industry in Europe, with increasing market value on street takeaways.
- Looking at the social trends, the population in UK is getting more diverse, most significantly on Asian and African growths. World food sales in UK have seen growth by 32% over the past few year. 7 out of 10 consumers, which is around 69%, are more interested in trying foreign dishes that they have not tried before. And among those 69%, one third even claim that they are willing to try spicier food. These factors will impact Asian Corner’s marketing decisions.
- Lastly, lifestyles have been pretty tech-centric, as well as always-on-the-go culture and frugal living concepts. Numerous apps are available for consumers, such as pre-ordering app, notification apps, just to name a few here. Hardware and softwares are also introduced to the market. WIB machines, short for (Warehouse in a box) is a fully automated, web-based store that allows consumers to purchase through its touch screen interface, and pick up their purchase conveniently 24/7 at the chosen machine. With Sky AdSmart, different ads can be shown to different households watching the same programme. Technology factors will impact Asian Corner as our business is not tech-savvy. Next, my group member, Baihui will carry on with competitor analysis.
- We use four roads to form a closed area – four grey lines as shown on the screen. All competitors are located in it.
- They can be further divided into 5 categories according to the current supplies on the market.
- I’m Ema. After elaborating the PEST and competitor analysis, here comes the SWOT analysis. The first part is about our strengths.
- The first strength is about our business. Because we don't need too much investing fund or technology support, it's relatively easy for us to start up. Additionally, according to the results of our questionnaire, we will place our van next to the Learning commons, which is nearer to our consumers than most of our competitors. The second strength as well as our USP is offering diverse authentic Asian street food at a competitive price in a time-saving way. More specifically, let’s see the three points separately. Well, the first feature is being authentic. As Daphnee said, more British people are willing to try new foods. What’s more, 1 in 9 people complain that the Asian food in supermarkets are not authentic. So, Asian Corner satisfy the need by offering authentic Asian street food! The second feature is the competitive price, which is lower than that of our competitors. Last feature is the queuing time.
- The first strength is about our business. Because we don't need too much investing fund or technology support, it's relatively easy for us to start up. Additionally, according to the results of our questionnaire, we will place our van next to the Learning commons, which is nearer to our consumers than most of our competitors. The second strength as well as our USP is offering diverse authentic Asian street food at a competitive price in a time-saving way. More specifically, let’s see the three points separately. Well, the first feature is being authentic. As Daphnee said, more British people are willing to try new foods. What’s more, 1 in 9 people complain that the Asian food in supermarkets are not authentic. So, Asian Corner satisfy the need by offering authentic Asian street food! The second feature is the competitive price, which is lower than that of our competitors. Last feature is the queuing time.
- We will offer food within 5 minutes which is acceptable for our consumers proved by the questionnaire. The 5-minute limit can be guaranteed by our food preparation, because 80% of our food is ready meals, and 15% has been semi cooked.
- Most importantly, we will put great efforts on integrating the three features together so as to achieve our USP, because only adopting any one among these three features separately won’t bring us the competitive strength.
- Of course, we have some weaknesses. The first point is the instability. That is to say, our business is easily to be influenced by weather conditions, such as rainy days, windy days or cold days. Secondly, in order to keep our cost as low as possible, we neither provide credit card service, nor the delivery service. Apart from this, it’s relatively hard to achieve a balance between purchasing authentic ingredients and keeping our cost as low as possible. What's more, because of the low competitive threshold, our business is easy to be imitated by competitors. Therefore, making full use of our USP and building up our reputation among consumers is our priority. Though the product can be easily copied, customer experience in Asian Corner is hard to be copied. What’s more, to some extent, the location strength can overcome this weakness.
- As for the opportunities, due to the corporation between China and the UK, there is an increasing trend of Asian population as well as the Chinese students in Manchester in the next 10 years. That is to say, our target market is becoming larger. Moreover, we already have a relatively large potential market. Our task is to consolidate the current market share and increase gradually, steadily and strategically. And it's projected that the sales of world food is going to increase by 23% in the following 5 years in the UK.
- When it comes to the threats, we have to mention our competitors. Even thought most of our competitors offer home delivery service, the home delivery is not important for our Asian takeaway. You know, it’s not wise to use our weakness to compete with competitors’ strength. In addition, due to the technology development, several convenient Apps were launched, which are beneficial for lowing cost and increasing the repeat purchase. Lastly, as we all know, Manchester is a rain city. Therefore, consumers tend not to buy food outdoors when the weather is bad. This is all about SWOT analysis. Then Becky will explain our corporate strategies.
- Porter’s Generic Strategies Asian Corner definitely is not cost leadership due to the small size and poor bargaining power, where as the product is distinctive in the market. The target market is clear and specific – only students in UoM and they are fond of Asian food + time-conscious.
- The 28 competitors plus Asian Corner are regarded as the whole market. Field research refers to on-site observation in each competitors to record their sale volume, then we compare with it. The survey about brand awareness is about asking students whether they can recognize or remember Asian Corner.
- Now let’s move on to the marketing strategies. First of all, the STP.
- People have different preferences toward flavors of food. In the university: some student like British food; others like different kinds of exotic food.
- Among all the segments, we are going to target students who are fond of Asian food.
- More specifically, let’s look at this diagram again. Our primary targeted customers are the students here, who like Asian food and whose daily activities mainly happen in the area within 5-minute walk to LC Our secondary targeted customers re the students who like Asian food and students who are in a hurry; their daily activities mainly happen within the competition zone.
- A typical customer of ours should look like this.
- We use this positioning map to show how we are compared to our competitors. Four criteria are used, namely speed, distance, scarcity and cost. We have an integrated competitive advantage – best balance among the 4 criteria.
- The selection of menu is based on the result of surveys (there is a list of Asian food and participants are asked to vote for their favorite ones)
- Asian Corner is a van next to Learning Commons. The real life example – ice cream van outside the Manchester Museum means the idea is practical. This place witnesses a numerous students passing by everyday, indicating great business potentials.
- 1. There are 2 suppliers: Wing Hing Long (a Chinese supermarket to provide exotic ingredients) and WorldWide (provide common ingredients like potatoes).
- Competition-based pricing is the principle of pricing, so the average price for per meal of Asian Corner is lower than competitors. It is important to take customers’ opinion into account, so the price need to be consistent with their perceived value - 4.70 pound (from survey). Estimate the cost to make sure we can make profit.
- Due to the limited cash flow and small size, promotions are mainly sale promotion. 2 dimensions are used here: seasonal and new/existing customer.
- the manager can supervise the operation, whereas the customer assistant is responsible for selling and serving food.
- This financial Plan is based on observation research into similar businesses nearby University of Manchester, and our cost estimates obtained for equipment, rent, payroll, loan and other operating expenses. Our break-even analysis shows that Asian Corner need sales 4089 meals to reach break even at the first quarter of first year.
- Two year cash flow comparing with healthy business and negative cash balance
- our profit and loss projections for the first two years. Asian Corner will become profitable early in the first year, with net profits continuing to rise as sales increase.
- Equipment :Asian Corner will need in the initial startup: Firstly, rent a takeaway food van during the first four years of operation. Secondly, all kinds of kitchen supplies, food packaged packaging paper or biodegradable packing boxes, Consumables, Food Prep Equipment, Food raw material storage boxes, office supplies Insurance : Asian Corner legally required having these insurance: 1) help employees pay national insurance to qualify for certain benefits including the State Pension. 2) Employer’s liability insurance, protect employees if they are injured in the course of their work or fall ill. 3) Public liability insurance, cover members of the public be hurt because of Asian Corner’s business.
- 1. winding up everyday after 4 pm to keep a healthy business cash flow 2. We take record of the complaints/service failure/product failure every day, which will be discussed and tackled on each Monday regular meeting. 3. Manager will hold a regular Monday internal meeting every week to solving problems 4. we use first in first out ingredient and food material concept to control our food quality
- 1. We provide canopy in front of our van for consumers to avoid getting wet 2. We prepared addition ingredients and food material to let chef to cook extra meals for consumers 3. Training employee for fire safety at the beginning of their work 4. Asking regular customer for advice or having some food activities to attract attention. 5. Trash bin around our takeaway van,