Business Plan for Asian Corner

transcript

Asian Takeaway

Weidi Shi (9668531), Wen-Yuan Tsai (9673927), Baihui Xie (9649049), Shengjun Xi (9678001), Yifang Zhou (9637604)

Asian Corner

Source: Google Images, 2015

Outline• Market Background • Business Overview• PEST • Competitors• SWOT• Corporate Strategy• Marketing & Financial Objectives• STP• The Marketing Mix• Financial Implications• Operational Considerations• Controls and Evaluations

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

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.

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

PEST Analysis

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)

(GOV.UK, 2015)

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

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

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)

Competitors

No Direct Competitor

Many Indirect Competitors

(Google Maps 2015)

Competition Zone

Competitors

Asian Restaurants

Takeaways

Supply Competitors

Asian Restaurants: Red Chilli

FoodOnCampus: Café at The LCFast Food Chains: McDonald's Self-Brand Takeaways: Babylon

Others (Cafés, Bars): Kro Bar Others

Competitors

Category Representative Av. Price (£) Number

Food onCampus Café at The LC 5 18Fast Food Chains McDonald's 5 2Self-Brand Takeaways Babylon 3.5 2

Asian Restaurants Red chilli 7 1Others Kro Bar 6 5

5.3 28

Main Indirect Competitors: Within 5-minute walk to LC

(Foodoncampus 2015; Google Maps 2015)

SWOTAnalysis

Strengths

• Easy to startup• Location advantage

Our Business

Our Product

•Authentic: Asian Street food•Low price: lower than competitors'•Time-saving: within 5 minutes

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%

Strengths

Our Business

Our Product

•Authentic: Asian Street food•Low price: lower than competitors'•Time-saving: within 5 minutes

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%

Strengths

Our Business

Our Product

•Authentic: Asian Street food•Low price: lower than competitors•Time-saving: within 5 minutes

Weaknesses

• Easily influenced by weather conditions, etc.Instability

• Cash only• No delivery service• High cost if authentic ingredients

Operational Limitation

• Products may be imitatedLow Competitive Threshold

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 UKSales of World Food

(Lanschützer 2014)

(Manchester City Council 2015)

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)

Corporate Strategy

Cost Leadership Differentiation

Cost FocusDifferentiation

Cost Differentiation

Source of Competitive Advantage

(Porter 1985)

Authentic Asian takeaway

Niche Market: Students of UoM who like Asian food & time-

conscious

Corporate Strategy

Cost Leadership Differentiation

Cost FocusDifferentiation

Cost Differentiation

Source of Competitive Advantage

(Porter, 1985)

Financial Objectives

Break even

10-15% profit

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

Segmenting

British

Japanese

Chinese

Korean

Indian

Middle Eastern

Mexican

Others

Exotic

Targeting

3. Thinking of takeaways, which of the following are you willing to try (multiple choices)?

Targeting

British

Japanese

Chinese

Korean

Indian

Middle Eastern

Mexican

Others

Targeting

Students of UoM Who Like Asian Food

Students of UoM who are In A Hurry

Like Asian Food & In A Hurry

Demand Location

Competition Zone

Within 5-minute walk to LCPrimary

Secondary

Targeting – A Typical Customer

UoM Student

19-30Interested In Asian Food

Time Conscious

Price Conscious

Make Prompt Decisions Within 5-minute walk to LC

Positioning

Expensive Cheap

Common

Authentic

CloseFar Away

Speed, Distance, Scarcity, CostUSP: Fast + Close + Authentic + Cheap

(Learnmarketing 2015)

The Marketing Mix

Product

which will be your most preferable location in the following choices?

Near the Learning CommonsNear Alliance Business BuildingNear University PlaceNear Whitworth Park

Wing Hing Long & Worldwide

FoodsAsian Corner Customer

Upstream Downstream

Value-based Pricing:Consistent with the student perceived value (￡ 4.70)

Competition-based Pricing:Average lower than ￡ 5.00

Take cost into consideration

Promotion

During semester Long vocations10% student discounts 3 for 2

Seasonal promotions:

• Existing customers: Loyalty cards• Others: Free snacks & product trial

47%16%

16% 1%

Which kinds of promotional activities will attract you?

Loyalty card10% student discount3 for 2Free snacks by liking Facebook page or WechatOccasionally special treatsOthers

People

Recruiting Training Teamwork

1 manager 2 cooks 1 customer assistant

Financial ConsiderationsBreak-even Point (Good)

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

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

£23,212.49 £43,492.32

-£1,929.91 -£8,775.94

Profit and Loss Statement

Profit and Loss Statement Good2016 2017

Cash Flow from Operating ActivitiesNet 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 ActivitiesBusiness 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

Operational Considerations

Production

Location

Equipment

Personnel

Supplier

Payment

Insurance

Operational Plan

Controls and Evaluations

Financial Clearance

Consumer Complaints Regular Meeting

Quality Control

Controls and Evaluations

Canopy Trash Bin • Training• Insurance

Additional Ingredients

• Market Research• Events

ReferencesArion 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..0j0i30l2j0i12i24j0i24l2j0i12i24j0i24l3.2486.5042.0.5224.11.10.1.0.0.0.126.763.8j2.10.0....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]

Thank you!

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

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

Appendices

• ￡ 2,500 or more in untaxed income• Savings or investment income was ￡ 10,000

or more before tax

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

Appendices

Competitors

1. First inspired by Ebi – Products, Locations…2. Field Research - Google Maps - On-site Observation - Not perfectly flawless

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.

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.

Appendices

Ice cream van in front of Manchester Museum

AppendicesBad Cash Flow Statement

AppendicesBad Profit and Loss Statement

Business Plan for Asian Corner

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