Asian Takeaway
Weidi Shi (9668531), Wen-Yuan Tsai (9673927), Baihui Xie (9649049), Shengjun Xi (9678001), Yifang Zhou (9637604)
Asian Corner
Source: Google Images, 2015
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Outline• Market Background • Business Overview• PEST • Competitors• SWOT• Corporate Strategy• Marketing & Financial Objectives• STP• The Marketing Mix• Financial Implications• Operational Considerations• Controls and Evaluations
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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
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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.
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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
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PEST Analysis
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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)
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
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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)
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Competitors
No Direct Competitor
Many Indirect Competitors
(Google Maps 2015)
Competition Zone
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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
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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)
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SWOTAnalysis
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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%
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Strengths
• Easy to startup• Location advantage
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%
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Strengths
• Easy to startup• Location advantage
Our Business
Our Product
•Authentic: Asian Street food•Low price: lower than competitors•Time-saving: within 5 minutes
USP
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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)
(Manchester City Council 2015)
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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
Focus
Cost Differentiation
Source of Competitive Advantage
Scop
e
Nar
row
Broa
d
(Porter 1985)
Authentic Asian takeaway
Niche Market: Students of UoM who like Asian food & time-
conscious
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Corporate Strategy
Cost Leadership Differentiation
Cost FocusDifferentiation
Focus
Cost Differentiation
Source of Competitive Advantage
Scop
e
Nar
row
Broa
d
(Porter, 1985)
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Financial Objectives
Break even
10-15% profit
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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
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STP
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Segmenting
British
Japanese
Chinese
Korean
Thai
Indian
Middle Eastern
Mexican
Others
Exotic
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Targeting
3. Thinking of takeaways, which of the following are you willing to try (multiple choices)?
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Targeting
British
Japanese
Chinese
Korean
Thai
Indian
Middle Eastern
Mexican
Others
ASIAN
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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
Competition Zone
Within 5-minute walk to LCPrimary
Secondary
Secondary
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Targeting – A Typical Customer
UoM Student
19-30Interested In Asian Food
Time Conscious
Price Conscious
Make Prompt Decisions Within 5-minute walk to LC
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Positioning
Expensive Cheap
Common
Authentic
CloseFar Away
Fast
Slow
Speed, Distance, Scarcity, CostUSP: Fast + Close + Authentic + Cheap
(Learnmarketing 2015)
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The Marketing Mix
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Product
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Place
36%
20%
31%
12%
which will be your most preferable location in the following choices?
Near the Learning CommonsNear Alliance Business BuildingNear University PlaceNear Whitworth Park
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Place
Wing Hing Long & Worldwide
FoodsAsian Corner Customer
Upstream Downstream
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Price
Value-based Pricing:Consistent with the student perceived value (£ 4.70)
Competition-based Pricing:Average lower than £ 5.00
Take cost into consideration
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Promotion
During semester Long vocations10% 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 card10% student discount3 for 2Free snacks by liking Facebook page or WechatOccasionally special treatsOthers
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People
Recruiting Training Teamwork
1 manager 2 cooks 1 customer assistant
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Financial ConsiderationsBreak-even Point (Good)
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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
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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
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Operational Considerations
Production
Location
Equipment
Personnel
Supplier
Payment
Insurance
Operational Plan
✔
✔
✔
✔
✔
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Controls and Evaluations
Financial Clearance
Consumer Complaints Regular Meeting
Quality Control
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Controls and Evaluations
Canopy Trash Bin • Training• Insurance
Additional Ingredients
• Market Research• Events
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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]
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Thank you!
Q&A
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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
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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
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Appendices
Taxes
• £ 2,500 or more in untaxed income• Savings or investment income was £ 10,000
or more before tax
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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
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Appendices
Competitors
1. First inspired by Ebi – Products, Locations…2. Field Research - Google Maps - On-site Observation - Not perfectly flawless
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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.
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Appendices
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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.
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Appendices
Ice cream van in front of Manchester Museum
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AppendicesBad Cash Flow Statement
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AppendicesBad Profit and Loss Statement