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Fast Food Business Plan
The Fast Food Restaurant Business Plan is a comprehensive, formal business plan detailing the launch of a fast food restaurant. The Fast Food Business Plan Table of Contents includes comprehensive sections of a formal business plan in a format approved and expected by loan officers and investors. The business plan can be easily adapted to any type of fast food business.
Fast Food Business Plan Contents
The plan provides methods for forecasting daily customer projections; demographic data that supports the fast food restaurant's detailed financial analysis; fast food menu pricing formulas; a market analysis of the fast food industry; and a concise Executive Summary for a Fast Food Business Plan.
Fast Food Business Plan Detailed Sections
The Fast Food Business Plan is a comprehensive, formal sample business plan detailing the launch of a limited service (carry out and eat in) fast food restaurant.
The Fast Food Business Plan provides the methodology for thorough capital planning and details the cash flow necessary for a fast food business to succeed. The financial forecast provides a month-to-month analysis of the fast food business and shows how the owners will fund and launch the business, planning for sufficient cash flow until the business is projected to break even.
The financial forecast provides a month-to-month analysis and reveals that the owners need $140,000 in start-up funds to launch the restaurant. In the case of this venture, the owners will contribute $60,000 toward start-up capital and secure a loan of $80,000 to complete their required start-up funding.
The plan includes detailed 12-month and 3-year Financial Forecasts for Sales, Profit and Loss, Cash Flow, and Balance Sheet, with complete sections on:
•Menu Pricing Formulas
•Customer Forecast
•Competitive Analysis
•Customer Population and Demographics
•Market Analysis for the Fast Food Industry
•Market Segmentation Analysis
•Financial Forecasts
◦Personnel Plan
◦Sales Strategy and Forecasting
◦Break Even Analysis
◦Profit and Loss Forecast
◦Cash Flow Forecast
◦Balance Sheet Forecast
•Exit Strategy if the Business Fails
•Complete explanations of each section, including Financials.
The Fast Food Business Plan is an indispensible guide to launching and operating a successful fast food business.
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Wednesday, October 7, 2009
Five fast food restaurants that offer something different69
Five fast food restaurants that offer something different69
rate or flag this pageBy 02SmithA
Fast Food
Price: $4.62
List Price: $12.99
Fast Food Nation
Price: $5.90
List Price: $14.98
Fast Food Nation
Price: $7.55
List Price: $14.99
Chew On This: Everything You Don't Want to Know About Fast Food
Price: $3.09
List Price: $9.99
Healthiest Meals on Earth: The Surprising, Unbiased Truth About What Meals to Eat and Why
Price: $14.95
List Price: $24.95
The Food You Crave: Luscious Recipes for a Healthy Life
Price: $15.49
List Price: $28.00
Beneful Healthy Harvest Dry Dog Food, 3.5-Pound Bags (Pack of 6)
Price: $36.88
List Price: $39.96
Real Food for Healthy Kids: 200+ Easy, Wholesome Recipes
Price: $12.40
List Price: $29.95
Fast food restaurants have started to evolve in the last few years. If you look back about 10 or 15 years you would see that almost all of the fast food restaurants had the same basic menu options and very similar layouts. Over time, as more fast food executives and marketers realized that customers wanted more options and things were out of the ordinary, this has been changing. No longer are 99% of the fast food restaurants in America serving a basic combination of a burger fries and a drink. We now see more options in general, and there is an increasing push to improve the health quality of many of the menu items. While most fast food meals still leave a lot to be desired nutrition wise, there certainly has been some progress made.
Today I wanted to take a look at some of the major fast food chains who have made it clear that their business model is to be different than their peers. These are chains which have revolutionized the fast food menu and have had very solid results doing so.
Top 5 Fast Food Restaurants that offer something different
1. Arby's- It is tough to beat Arby's when it comes to the variety of the menu contest. Arby's still has its regular roast beef sandwiches which are very popular, but now it has broadened itself out in a huge way. A customer can order any kind of market fresh sandwich, mozzarella sticks, chicken poppers, and many other new items. In their commercials Arby's makes it clear it wants people to see them as the savior from ordinary fast food. I believe in the past few years the company has done a great job executing this plan.
2. Sonic- Sonic is America's Drive In and it is certainly unique in several ways. The fact that there is no indoor seating, rather just a drive-in area as well as some picnic tables makes it very different from most chains. The menu is packed full of both the ordinary fast food as well as the more recent wraps, salads, and toasted sandwich offerings. Sonic also separates itself in the dessert menu, where its choices are second to none.
3. Chick-fil-a- Chick-fil-a has clearly established itself as a leader in the restaurant business by being different. The commercials with the cows saying "eat more chicken" have been very successful. Chick-fil-a also prides itself on being a company that is closed on Sunday's for religious reasons, which certainly hurts its business on a busy weekend day, but it is popular with many customers as well.
4. Chipotle- Chipotle's CEO calls his company "fast food with integrity." The line has stuck with customers as Chipotle has been growing like weeds in the past couple of years. After this company spun off of McDonald's the business model was questioned, but thus far everything has gone beautifully. The menu at Chipotle is obviously unlike any other fast food chain and it continues to rate highly among consumers in the food quality surveys.
5. McDonald's- It may come as a shock to many to see this chain on this list, but it really does deserve to be here. McDonald's has done a fantastic job in turning their operations around in the last few years, and they owe it to their innovation. The company brought in snack wraps, yogurt parfaits, and premium salads were firsts in the industry. As is often the case McDonald's has benefited very nicely from having the first mover advantage in many of these areas. Burgers and fries are still a cornerstone, but its far from the only thing this restaurant has now.
Certainly fast food is still far from being considered healthy, but there is definitely some progress taking place. I believe the more popularity these unique fast food restaurants and their menus have, the more changes will come in the future.
rate or flag this pageBy 02SmithA
Fast Food
Price: $4.62
List Price: $12.99
Fast Food Nation
Price: $5.90
List Price: $14.98
Fast Food Nation
Price: $7.55
List Price: $14.99
Chew On This: Everything You Don't Want to Know About Fast Food
Price: $3.09
List Price: $9.99
Healthiest Meals on Earth: The Surprising, Unbiased Truth About What Meals to Eat and Why
Price: $14.95
List Price: $24.95
The Food You Crave: Luscious Recipes for a Healthy Life
Price: $15.49
List Price: $28.00
Beneful Healthy Harvest Dry Dog Food, 3.5-Pound Bags (Pack of 6)
Price: $36.88
List Price: $39.96
Real Food for Healthy Kids: 200+ Easy, Wholesome Recipes
Price: $12.40
List Price: $29.95
Fast food restaurants have started to evolve in the last few years. If you look back about 10 or 15 years you would see that almost all of the fast food restaurants had the same basic menu options and very similar layouts. Over time, as more fast food executives and marketers realized that customers wanted more options and things were out of the ordinary, this has been changing. No longer are 99% of the fast food restaurants in America serving a basic combination of a burger fries and a drink. We now see more options in general, and there is an increasing push to improve the health quality of many of the menu items. While most fast food meals still leave a lot to be desired nutrition wise, there certainly has been some progress made.
Today I wanted to take a look at some of the major fast food chains who have made it clear that their business model is to be different than their peers. These are chains which have revolutionized the fast food menu and have had very solid results doing so.
Top 5 Fast Food Restaurants that offer something different
1. Arby's- It is tough to beat Arby's when it comes to the variety of the menu contest. Arby's still has its regular roast beef sandwiches which are very popular, but now it has broadened itself out in a huge way. A customer can order any kind of market fresh sandwich, mozzarella sticks, chicken poppers, and many other new items. In their commercials Arby's makes it clear it wants people to see them as the savior from ordinary fast food. I believe in the past few years the company has done a great job executing this plan.
2. Sonic- Sonic is America's Drive In and it is certainly unique in several ways. The fact that there is no indoor seating, rather just a drive-in area as well as some picnic tables makes it very different from most chains. The menu is packed full of both the ordinary fast food as well as the more recent wraps, salads, and toasted sandwich offerings. Sonic also separates itself in the dessert menu, where its choices are second to none.
3. Chick-fil-a- Chick-fil-a has clearly established itself as a leader in the restaurant business by being different. The commercials with the cows saying "eat more chicken" have been very successful. Chick-fil-a also prides itself on being a company that is closed on Sunday's for religious reasons, which certainly hurts its business on a busy weekend day, but it is popular with many customers as well.
4. Chipotle- Chipotle's CEO calls his company "fast food with integrity." The line has stuck with customers as Chipotle has been growing like weeds in the past couple of years. After this company spun off of McDonald's the business model was questioned, but thus far everything has gone beautifully. The menu at Chipotle is obviously unlike any other fast food chain and it continues to rate highly among consumers in the food quality surveys.
5. McDonald's- It may come as a shock to many to see this chain on this list, but it really does deserve to be here. McDonald's has done a fantastic job in turning their operations around in the last few years, and they owe it to their innovation. The company brought in snack wraps, yogurt parfaits, and premium salads were firsts in the industry. As is often the case McDonald's has benefited very nicely from having the first mover advantage in many of these areas. Burgers and fries are still a cornerstone, but its far from the only thing this restaurant has now.
Certainly fast food is still far from being considered healthy, but there is definitely some progress taking place. I believe the more popularity these unique fast food restaurants and their menus have, the more changes will come in the future.
Healthy Burgers
Concept: Retail
Territory: Australia
Training Provided: Ongoing (initial 6 weeks)
Marketing Support: Metro & regional
Agreement Term: 5 + 5
Number Of Units: +24
Investment Required: $350,000 - $450,000 (exc GST)
Business Established: 2004
Franchising Commenced: 2005
Qualifications Required: Committed, driven and passionate people
About Grill'd (Healthy Burgers)
The Grill’d concept delivers a new, fresh and vibrant approach to what is arguably the most widely appealing food concept in the world – the burger. The Grill’d concept was born when Simon Crowe, the company founder, decided to do something about the lack of a decent, healthy hamburger in the Australian market.
The first Grill’d restaurant opened in the Melbourne suburb of Hawthorn in March 2004, offering quality, fresh, healthy, meal-sized burgers made from 100% beef, chicken breast, lamb and veggie patties. The tremendous success of this restaurant led to the quick succession of additional Grill’d restaurants in Melbourne before interstate expansion commenced late 2007.
There are currently restaurants in operation across Melbourne, Brisbane & Coolangatta, Sydney & Newcastle, and many more in the pipeline. An overwhelming consumer response to the Grill’d model continues to drive growth, fuelled by positive community and media endorsement.
Grill’d is open 7 days for lunch and dinner and offers both in-store dining and take-away. Part of the Grill’d experience is watching the delicious, made-to-order burgers being cooked on the flame grill and ‘dressed’ with fresh toppings. All restaurants are fitted out to the highest standard and provide a friendly, casual and funky environment. The business is run by three operational virtues – friendliness, cleanliness and urgency.
The Grill’d senior management and ownership team is professional and reputable, with extensive marketing, retail and sales experience across small, medium and large sized businesses. The business model has commercial viability and strong consumer appeal, capitalising on the shift towards healthy, great tasting and convenient meal solutions. The success of the concept is now providing an exciting opportunity for enthusiastic, passionate people to join the Grill’d franchise family.
Grill’d places great importance on branding, store design, teamwork, customer service and culture. According to Crowe, “It’s the culmination of our people and our product that set us apart. We are a young, growing company with the momentum and confidence to expand our presence on a national scale. We believe that our franchise opportunity is an exciting one that will firmly secure Grill’d as Australia’s Number 1 premium, healthy burger chain and we are searching for franchise partners who share our values, vision & passion”.
With an aggressive expansion strategy now in place, Grill’d is set to have more than 35 restaurants operating by the end of 2009, providing an exciting opportunity for franchise partners with:
a positive attitude
a willingness to work hard as an owner / manager and to follow the Grill’d guidelines and systems
a strong customer service focus
excellent leadership and communication skills
A background in retail / food / hospitality and previous business management experience is ideal but not essential.
Territory: Australia
Training Provided: Ongoing (initial 6 weeks)
Marketing Support: Metro & regional
Agreement Term: 5 + 5
Number Of Units: +24
Investment Required: $350,000 - $450,000 (exc GST)
Business Established: 2004
Franchising Commenced: 2005
Qualifications Required: Committed, driven and passionate people
About Grill'd (Healthy Burgers)
The Grill’d concept delivers a new, fresh and vibrant approach to what is arguably the most widely appealing food concept in the world – the burger. The Grill’d concept was born when Simon Crowe, the company founder, decided to do something about the lack of a decent, healthy hamburger in the Australian market.
The first Grill’d restaurant opened in the Melbourne suburb of Hawthorn in March 2004, offering quality, fresh, healthy, meal-sized burgers made from 100% beef, chicken breast, lamb and veggie patties. The tremendous success of this restaurant led to the quick succession of additional Grill’d restaurants in Melbourne before interstate expansion commenced late 2007.
There are currently restaurants in operation across Melbourne, Brisbane & Coolangatta, Sydney & Newcastle, and many more in the pipeline. An overwhelming consumer response to the Grill’d model continues to drive growth, fuelled by positive community and media endorsement.
Grill’d is open 7 days for lunch and dinner and offers both in-store dining and take-away. Part of the Grill’d experience is watching the delicious, made-to-order burgers being cooked on the flame grill and ‘dressed’ with fresh toppings. All restaurants are fitted out to the highest standard and provide a friendly, casual and funky environment. The business is run by three operational virtues – friendliness, cleanliness and urgency.
The Grill’d senior management and ownership team is professional and reputable, with extensive marketing, retail and sales experience across small, medium and large sized businesses. The business model has commercial viability and strong consumer appeal, capitalising on the shift towards healthy, great tasting and convenient meal solutions. The success of the concept is now providing an exciting opportunity for enthusiastic, passionate people to join the Grill’d franchise family.
Grill’d places great importance on branding, store design, teamwork, customer service and culture. According to Crowe, “It’s the culmination of our people and our product that set us apart. We are a young, growing company with the momentum and confidence to expand our presence on a national scale. We believe that our franchise opportunity is an exciting one that will firmly secure Grill’d as Australia’s Number 1 premium, healthy burger chain and we are searching for franchise partners who share our values, vision & passion”.
With an aggressive expansion strategy now in place, Grill’d is set to have more than 35 restaurants operating by the end of 2009, providing an exciting opportunity for franchise partners with:
a positive attitude
a willingness to work hard as an owner / manager and to follow the Grill’d guidelines and systems
a strong customer service focus
excellent leadership and communication skills
A background in retail / food / hospitality and previous business management experience is ideal but not essential.
Asian Fast Food Restaurant Business Plan
Fast Food Restaurant Business Plan
1.0 Executive Summary
1.1 COMPANY & INDUSTRY
Nudlez, a Washington Corporation, is in the fast-food service industry. The company has developed a unique business model that reduces overhead by utilizing mobile vending units as opposed to brick and mortar stores. This is a very popular alternative to dining in larger business centric cities.
1.2 PRODUCTS & SERVICES
Nudlez provides high quality, fast-served Asian-styled meals, based on a central theme of noodles. The meals cater for variety and are delivered fresh faster than other noodle-based products. The meals are provided to the consumer initially through mobile Noodle Vending Units (NVU’s), which provide widespread point of sale coverage. The NVU’s are state-of-the-art, complying with health regulations. The first trial NVU was tested in Seattle in July 20XX, receiving great response. The NVU will become a product in itself, as Nudlez expands rapidly through franchising. Nudlez is a globally transportable business.
1.3 MARKET ANALYSIS
Valued in 20XX at $105 billion, the domestic market for “fast” food is large and segmented, with Asian style foods representing 1 of the top 3 choices in Seattle at 35% of the market. Nudlez will initially target central business district (CBD) lunchtime crowds, where high-income earning but time-poor individuals are most greatly concentrated. Shopping malls, university campuses, weekend markets, and local business areas will then be targeted. Event catering and supermarket convenience foods will be markets that Nudlez then diversifies into.
1.4 STRATEGY & IMPLEMENTATION
Nudlez will build brand recognition through its Noodle Vending Units being placed strategically throughout large cities’ business districts. Once brand recognition has been achieved, catering services will be offered, and the Nudlez products will be available in supermarkets. Additionally, Nudlez offers franchise opportunities to help further expand its reach, along with adding an additional revenue stream.
1.5 MANAGEMENT
The owners have significant experience in: the hospitality industry, advertising, and business management. The founder previously owned two very successful Thai restaurants in Seattle but grew tired of paying exorbitant rent hoping customers would turn up each night. His Nudlez concept takes the product to the street!
1.6 FINANCIAL PLAN
Nudlez has strong financials, and is always cash flow positive. Revenues are projected to grow to nearly $58,000,000 by Year 5, with EBITDA totaling $15,000,000. An initial analysis indicates that only 100 meals per day per NVU must be sold to break even. The strong financial plan ensures that the company will be attractive as an acquisition for exit.
1.7 FUNDS REQUIRED & USE
The purpose of this business plan is to raise $1,500,000 from an investor, in the form of a convertible and redeemable note, providing a 32% compound annual return. Nudlez is committed to the rollout of its ‘wok-fresh’ fast food business in 20XX.
2.0 Company Summary
2.1 LEGAL ENTITY & OWNERSHIP
Nudlez is trademark registered. Nudlez Inc. was incorporated in the State of Washington in March 20XX. Nudlez is currently equally owned by Mr. Dan Billings and Mr. Bill Cook. They have already spent over $75,000 in direct costs of product testing and development, and will commit a further $200,000 in 20XX, prior to funds being required from the investor. Both owners will each hold two voting rights on the Board with the investor holding one.
2.2 HISTORY
After running two successful Thai restaurants in Seattle for five years, Dan Billings spent most of the past two years in Thailand looking at business opportunities. While living there he ate almost exclusively as the locals did, from street vendor food outlets. Not only was the food freshly cooked in front of him, but the visual entertainment combined to augment the vibrant street culture. His initial thoughts were, “this is what’s missing from our staid cities in the United States.” Using this as his motivator he began to realize that there were also major commercial benefits to running a fast-food network where the majority of outlets were not restricted to one location. For a start, shop fronts in good locations are expensive. The key to making such a venture successful domestically would be to ensure that the vendor outlets are very hygienic, comply with health standards, serviced by an efficient re-supply network producing consistent meals, with professionalism and quality paramount. He spent considerable time designing a purpose built Noodle Vending Unit. He also moved back to Seattle and renewed his ties in the culinary community to elicit the design of fresh and tasty meals to be served from the NVU. The Nudlez brand was born! Realizing the opportunity to seize a market niche through rapid expansion, the inventor also joined forces with an experienced international business team to develop and implement that initiative.
2.3 FACILITIES & LOCATIONS
During the start-up phase of the business, food sales revenue will come from NVU lunchtime customers in busy Seattle CBD locations. A small office will be setup in Seattle that will serve as the headquarters of the company.
3.0 Products and Services
3.1 PRODUCT DESCRIPTION
The principal product of Nudlez is fast-served, quality, Asian-styled individual meals. The meals are based on a central theme of noodles, but have a flexible degree of customization to suit the purchasers’ tastes. The second, but equally important supporting product, is the mobile cooking unit used to prepare the individual meals. This Noodle Vending Unit (NVU) has been specifically designed to produce the Nudlez meals in the shortest time possible. While Nudlez will own and operate some NVU’s, the bulk of the fleet will be purchased and operated by franchisees.
These two products symbiotically solidify the Nudlez brand name. Nudlez is a state-of-the-art stir-fry noodle street vending system. While Nudlez’s footprint in the three major metropolitan cities in Washington will be underpinned by the NVU fleet and a smaller number of strategically placed Nudlez stores, the aim in year-3 is to diversify the revenue stream by selling the meal product alone in supermarkets for home preparation and consumption.
3.2 FEATURES & BENEFITS
Fast & Affordable Meals
The NVU operator cooks the meals in front of the customer within sixty seconds, using fresh ingredients. As implied by the Nudlez tagline ‘wok fresh’, each serving of noodles is a taste sensation, freshly cooked-to-order and served piping hot in a convenient cardboard pail. Customers are invited to create their own noodle dish following three easy steps: Step 1: Select Noodle Type; Step 2: Add Sauce; Step 3: Choose Protein. Compared to the meals offered by competitors, Nudlez offers a fresh, tasty, nutritious alternative. Nudlez may be slower than some fast food from the point of order, but it is significantly fresher, more nutritious, and almost 50% more profitable.
One secret to the speed of Nudlez meals is that the meats and vegetables are pre-blanched and hygienically sealed in the same pail that the customer eventually receives. The operator simply removes from the fridge, and combines with noodles and sauce in the wok.
Noodle Vending Unit
Each NVU is completely self-contained, mounted on wheels and totally mobile. It is delivered on-site each day by a custom designed mini-van and simply wheeled into position. Stabilizing legs are deployed, the roof pops up and it is ready to go! At the end of the day it is simply wheeled back into the mini-van and returned to base for cleaning and waste removal. Ensuring the speed of the NVU operation is the Nudle-Rac. The Nudle-Rac is essentially a lightweight grid that is packed in the meal production facility with the various meal options. The Nudle-Rac is self-leveling and designed to fit perfectly in the NVU’s fridge.
Each NVU cart is immaculately presented in stainless steel and branded in strong colorful graphics. At night the noodle stand benefits from its own internal lighting. Construction is of the highest quality kitchen-grade stainless steel. It is designed to be versatile for use in just about any place where it is legal to sell food from a temporary stall. In comparison to standard ‘caravan-type’ vendor units, the NVU has major advantages in that it is: cheaper to produce, smaller size for better site access, self-sustaining power (no mains required short-term), easily moved by one person, unique look, hygienic and cheap to service.
3.3 COMPETITION
The range of competitors here spans the market dominants like McDonalds, to sandwich and sushi bars, to ‘vendor’ foods like kebabs. However, when looking for closer similarity to Nudlez’s offering, we arrive at the specialized noodle-based products provided by such companies as ‘Noodlist’. A storefront operation located close to Pioneer Square in Seattle, the meal variety at ‘Noodlist’ is slightly broader. However speed of preparation is significantly slower than Nudlez, necessitating the addition of standard pre-cooked, oily and somewhat bland Asian fare to satisfy the ‘time-poor’ consumers. It is only this time constraint that is satisfied though, as taste and nutrition are compromised. The lack of speed in the fresh cooked Asian fast food market is emphasized by another competitor, ‘Hot Wok’, offering noodle-based meals in the Sea-Tac International Airport, where a sign on the counter informs consumers that meals may take up to thirty minutes to prepare. A captive consumer group is not being exploited here. Nudlez will change that.
‘Wok in a Box’ is an Oregon competitor that intends to open stores in Washington beginning in 20XX. The company currently operates 16 stores in the Pacific Northwest. Market research indicates company revenue for 20XX reached $5 million, representing a growth rate of 78 percent over the prior year. This growth is encouraging to Nudlez, which through the use of its NVU’s and its other competitive advantages will gain broader exposure. The existence of such competitors makes Nudlez an attractive acquisition or merger proposition.
3.4 COMPETITIVE EDGE/BARRIERS TO ENTRY
Unique modality of fast-food availability, with unmatched preparation times
Lower capital costs and overheads and high margin unit sales through broad exposure.
Healthy, fresh, fast, quality, price competitive alternative
New funky, identifiable brand, professional approach and solid management
Aimed at segment of large market not currently exploited by the competition
3.5 DEVELOPMENT
The founders of Nudlez have invested a total of $75,000 in development of the NVU, and plan to spend an additional $200,000 over the next year on development of the second generation NVU. The ‘Generation-2’ NVU is currently under design, maintaining versatility yet improving with the introduction of inventions such as the Nudle-Rac.
4.0 Market Analysis Summary
4.1 TARGET MARKET
With Nudlez, the term “customer” holds two meanings; firstly as a reference to “consumers” who may purchase a meal from a Nudlez point of presence, and secondly as “entities” with an interest in owning a Nudlez franchise. The primary target “consumer” group for the first phase of Nudlez fits the profile of a medium to high-income earner, with a healthy and fresh lifestyle orientation. The first phase of the business plan is about growing brand awareness quickly with customers of this profile. Shortly after growing the brand awareness, as part of the Nudlez rapid growth plans, franchisee customers looking for a self-employment opportunity providing good income relative to the hours worked will be targeted. Institutions such as university campuses will also be targeted as potential franchisees.
The profile will then extend through catering to the customer who is looking for a relatively low cost, value-adding product to support private or corporate events. This customer will be served at both the supermarket (DIY) and event catering levels.
4.2 MARKET SIZE
With sales in excess of $105 billion, the market for fast food is substantial, and the opportunity to build and grow a new exciting product with a strong brand is real. Asian style food represented approximately 35% of this revenue. Although the market is mature with heavy buyer/seller saturation, it is heavily segmented on quality, style, modality and price, presenting opportunity for niche market products such as Nudlez. Customers’ perception of ‘healthier’ is an important value proposition. Nudlez provides this, with the added bonus of serving the meal quickly.
The idea that desirable food could be prepared in a quick fashion appeals to a sizeable portion of the market; those in tourism, people engaged in a commercial capacity, busy homemakers and students. These few examples are indicative of a large and growing collection of “time poor” individuals placing increasing value on every spare moment of their day. Nudlez has the ability to match the ravenous need for convenience with the utility that modern, fast paced lifestyles drive. Nudlez negates boundaries of culture, age and preference, through a daily mission to satiate appetites.
4.3 MARKET TRENDS
Today the contemporary food outlet must maintain its appeal within an increasingly health-conscious market. Worldwide the “diet” continues to gain momentum and this means that products with less appeal to the diet-conscious will suffer reduced success. Entrepreneurs continue to derive extraordinary profits from ‘health-conscious’ ventures, for example ‘Jamba Juice’ (Jamba Juice is a fruit-based snack e.g. smoothies and drinks, which offers a fresh and healthy alternative to the major players’ product. Jamba Juice expects $70 Million in revenue from its 150 stores in 20XX.) Nudlez is designed to make the most of the public’s increasing nutritional conscience.
The economic environment for the successful outlet will take into account the factors and conditions that influence the ability of its target market to afford its product. Consumers today, particularly in business-centric cites, have a relatively high disposable income. Nudlez will be priced competitively with existing alternatives and will strive to attract market share through product differentiation.
4.4 SWOT ANALYSIS
Strengths
Strong product supported by great tasking meals with a strong focus on quality, healthy and competitively priced meals in addition to the speed of producing meals
Strong brand, which has been tested before full implementation. Emphasis on a fund brand culture
Market conditions are favorable with Nudlez offering new niche spark in an otherwise static market
Low development risk as the product currently exists
Easy, low risk growth through short time to market and short time for NVU construction as well as low cost per unit
Transferable business model as a result of similarities in trends and the US culture of street style food vending. Ability to capitalize on brand and concept with expansion through franchise and other market segments
Low management risk due to experienced team and the strong diversification of skills and expertise = holistic results
High gross margins on meal products, which can be maximized by negotiating bulk purchase agreements with wholesalers.
Weaknesses
Defendability of concept as the meal products cannot be patented; this needs to be addressed by building strong brand awareness and establishing copyright on total quality system. Focus also on rapid growth and securing prime sites in target markets
NVU restocking logistics is being addressed through NVU design, which ensures breakeven results for a day’s trade without restocking. Central production facilities also being established to support restocking
Site permits for street vending need to be established before implementation of NVU’s, but also private sites will be secured to reduce exposure to local government issues
Product may be vulnerable to weaken over time, which can be minimized through product innovation and diversification
Opportunities
Niche-specific opportunities through monopolizing niche market by building strong brand awareness and leading the street food vending culture through being vigilant with other vending business opportunities.
Low restriction to NVU operating hours means there can be diversity of venues and access to a very diverse target customer group
Capitalize on diversity of venues and consumer groups to promote and market expansion through event catering and franchise ownership
International expansion to Europe, which has a strong culture for street food vending and pre-prepared meals. Target strategic partner for joint venture, master franchise or sale of Nudlez
Threats
Local government regulations in relation to street vendors means permits secured have minimum life period, however change in this area is slow
Vulnerability to imitation products from competitors will be reduced through rapid development of Nudlez products and brand.
Short-term site permits means the Nudlez brand needs to be diversified through catering, franchise and supermarket placement
Seasonal demand for NVU’s meaning inconsistent returns. This can be minimized through diversifying brand through catering, franchising and a supermarket product line.
5.0 Strategy & Implementation
5.1 PHILOSOPHY
“To forge a new, vibrant, high quality brand in the fast-food sector; to challenge the established market by offering a fresh, tasty and professional alternative; and to build a robust business model founded on high-yield, low capital outlay products.”
It is our vision that Nudlez will expand predominantly through franchising domestically and then to appropriate international markets. It will diversify through catering and product placement in supermarkets. The possibility of trade acquisition or merger also exists.
5.2 MARKETING STRATEGY
Given that the United States is positioned 1st in the top 10 global markets for weekly fast food consumption, the marketing strategy is based on penetrating the market rapidly. This will be achieved by placing the NVU’s in strategic locations where the likelihood of consuming a takeaway meal is extremely high. Expansion of numbers of NVU’s and stores through franchising will ensure that first mover advantage is optimized. The network is supported by an integrated total quality management system ensuring consistency, which will be leveraged in the marketing strategy. Capital outlay for franchisees will be low with owners earning more dollars per hour worked than other franchise options. Expected net profit after tax for franchisees is 20%.
5.3 SALES STRATEGY
The marketing objective of Nudlez is to position itself so that consumers of fast food are confident they are purchasing and consuming a healthy and fresh product, enhanced by the overall delivery experience. The marketing objectives are to:
Rapidly establish a recognized brand through street vendor points of sale supported by a smaller number of strategically placed hardstand stores
Position itself as a fresh, tasty and healthy alternative to traditional fast food
Maintain high gross margins on meal products
Capitalize on the brand through expansion using franchising and product diversification, which will include catering and supermarket placement
Nudlez’s initial strategy will be focused within Washington, commencing in Seattle then within 18 months expansion into Spokane and the Vancouver/Portland metropolis. Beginning with company owned NVU’s and central production facilities, rapid expansion will then be achieved through franchising in all target areas.
5.4 OPERATIONS
NVU production will be outsourced to a manufacturer in Seattle and has been estimated at $12,500 per NVU. Each city will have company owned NVU’s, shops, a central kitchen premises and support kitchens (hubs).
Product Production and Preparation
Raw product has been sourced from selected Seattle suppliers. It is a competitive quality market, with room for a number of suppliers to diversify risk. The secret to Nudlez’ fast delivery to the customer from moment of order is the blanching and preparation process of the raw product at the central kitchen premises and hub sites. This will be overseen by our master-chef teams, adhering to strict health regulations. All ordering, stocking and quality controls will be managed on an in-house computer based system enabling usage patterns to be monitored maintaining ordering efficiency and minimizing wastage.
5.5 NVU Stocking
A unique system for NVU and store restocking, the Nudle-Rac is currently under design. Essentially providing completely removable internal sectioning to the refrigerators to hold the different meals available, it is spring-loaded so that when one meal is removed, the next meal raises to the top for easy access. At the beginning of each day, a franchisee will arrive at their support kitchen where the Nudle-Rac, preloaded with the day’s meals, will be loaded directly into the NVU’s fridge without having to remove the NVU from the van providing an efficient stocking system and minimizing the time meals spend out of refrigeration. For large catering events, support vans will provide additional pre-stocked Nudle-Racs to onsite NVU’s.
5.6 EXIT STRATEGY
It is Nudlez objective to be acquired by another fast food company within five years by posting large revenues and a substantial EBITDA. Additionally, merger options, as well as an IPO may be considered at that time.
6.0 Management Summary
6.1 ORGANIZATIONAL STRUCTURE
Nudlez will be lead by Bill Cook, CEO. He will report to the founders and investors, which will make up the board. The CEO will oversee the CFO, CIO, Food and Human Resources departments.
6.2 MANAGEMENT TEAM
With over 80 years of sector diverse, international strategic and operational combined experience, professionally qualified and with energetic personalities critical to ensuring the Nudlez values, the owners and the management provide the skills to deliver:
Bill Cook has run start-up business operations, with broad management skills
Dan Billings has owned and managed 2 successful restaurants and an advertising firm
David Noor is a financial wiz with broad entrepreneurial appreciation
Angela Gates is not your typical CIO, with a creative flair and eye for efficiency
Sheila Arch brings the important HR skills combined with a marketing bent
Bill Cook - CEO & Director (Systems, Strategy & Finance)
Bill is a Seattle boy, born and bred, with an intimate knowledge of the cultural and niche diversities of Seattle. Originally with an honors degree in Civil Engineering, Bill worked in the Seattle construction industry from the 80’s boom time through the recession of the early 90’s. From there he traveled overseas working in such places as the UK, Bosnia (during the war), Romania and Holland. The bulk of his experience in these eight years centered on strategic management of start-up ventures. These ranged from establishing critical engineering support facilities for the UN in Bosnia, to expending Shell’s retail network across Eastern Europe, to property development ventures in Romania. Bill returned to Seattle in 20XX to utilize this broad strategic experience on home soil, initially focusing on the property sector. Bill has known Dan for over 20 years and quickly assessed the potential of his Nudlez idea, convincing Dan that rapid expansion was key to securing the market niche. Bill graduated his MBA with High Distinction in 20XX.
Dan Billings - Director (Marketing & Food Technology)
After a successful career in advertising culminating in the establishment of his own Seattle based agency, Dan entered the hospitality industry. His first venture, Pad Real Thai, a Thai restaurant and takeaway situated on bustling Pine Street, was an instant hit. An innovative and funky menu, supported with clever marketing (including the use of real Bangkok Pad’s for delivery vehicles) saw the business achieve critical acclaim. Rave reviews in Short Black and Cheap Eats to name a few, were followed by televised appearances on ‘Seattle Weekly’ and Seattle’s Food Lover’s Guide. A second Pad restaurant opened in Bellevue, and was awarded the prestigious ‘Bent Fork” award. Dan sold the Pad enterprise in 20XX to pursue business interests in Thailand. It was here, while enjoying Bangkok’s vibrant street food culture, where the Nudlez concept was born. Dan has a degree in Science from the University of Washington.
6.3 PERSONNEL NEEDS
In the long term, the employee/income ratio will be approximately $125,000 per employee. Nudlez will run a lean operation with an emphasis on sales and food production. In years two and three the sales staff will grow from 20 to 110 people, and the production staff will grow from 12 to 277 people. Administration will grow as needed.
7.0 Financial Plan
7.1 REQUIREMENTS
Nudlez will require $1,500,000 from an investor. The funds will be used primarily for the completion of one central and five suburban meal production facilities. The funds will be expected in two rounds, $750,000 to begin operations, and a further $750,000 seven months later (four months after revenues have commenced).
The investor’s $1,500,000 will be structured as a redeemable note, convertible to 15% shareholding in Nudlez at the end of year-3. Alternatively, redemption can be done at this time providing a return of $3,450,000 (2.3 times investment), equating to a compound annual return of approximately 32%. The end of year-3 is good point for possible investor exit, as decisions on product expansion into supermarkets will be made at this time.
7.2 USE OF FUNDS
Funds will be used to initially finish development of the NVU and to establish fit out central premises in Seattle, including IT infrastructure. 5 hubs and 5 sites will initially be established in Seattle, following that expansion into Vancouver/Portland and Spokane will begin.
7.3 INCOME STATEMENT PROJECTIONS
Nudlez will be profitable by the end of its first fiscal year, as shown in the attached financial statements. The business will grow dramatically in years two and three.
Break Even Analysis
A break even analysis, assuming zero catering and acquisition stores, reveals less than 100 meals per NVU and 150 per store need to be sold per trading day to achieve break even.
7.4 ASSUMPTIONS
Number of average rain days for the 3 cities is 12 per month. This equates to approximately 40% of the month, which we have conservatively applied, despite its low probability. The conservatism also allows for logistics accidents, staff truancy, etc. to arrive at 13 trading days/month for NVU’s. (Exclude catering)
Total employment in the expanded Seattle CBD areas is estimated at over 350,000. Nudlez expects to capture less than 2% of this daily market from CBD NVU’s and stores
Seattle and Portland/Vancouver are similar sized markets, with Spokane being approximately half the size. Revenue estimates reflect these ratios.
Gen-1 and first Gen-2 NVU, testing and development costs totaling around $75,000 already spent by inventor are not included in financials.
First Gen-2 NVU will obtain homologation, meaning that the design has blanket pre-approval with local government, reducing time and cost for individual site permits.
First 10 NVU’s cost $125,000, including homologation.
Wastage is estimated at 15% across all food related product (validated in Seattle trials). This will reduce once the ‘Nudle-Rac’ and associated IT systems are in place
Training, Quality Management Systems and Franchise Operations Manuals will be completed effectively for $220,000 by the end of year 1.
1.0 Executive Summary
1.1 COMPANY & INDUSTRY
Nudlez, a Washington Corporation, is in the fast-food service industry. The company has developed a unique business model that reduces overhead by utilizing mobile vending units as opposed to brick and mortar stores. This is a very popular alternative to dining in larger business centric cities.
1.2 PRODUCTS & SERVICES
Nudlez provides high quality, fast-served Asian-styled meals, based on a central theme of noodles. The meals cater for variety and are delivered fresh faster than other noodle-based products. The meals are provided to the consumer initially through mobile Noodle Vending Units (NVU’s), which provide widespread point of sale coverage. The NVU’s are state-of-the-art, complying with health regulations. The first trial NVU was tested in Seattle in July 20XX, receiving great response. The NVU will become a product in itself, as Nudlez expands rapidly through franchising. Nudlez is a globally transportable business.
1.3 MARKET ANALYSIS
Valued in 20XX at $105 billion, the domestic market for “fast” food is large and segmented, with Asian style foods representing 1 of the top 3 choices in Seattle at 35% of the market. Nudlez will initially target central business district (CBD) lunchtime crowds, where high-income earning but time-poor individuals are most greatly concentrated. Shopping malls, university campuses, weekend markets, and local business areas will then be targeted. Event catering and supermarket convenience foods will be markets that Nudlez then diversifies into.
1.4 STRATEGY & IMPLEMENTATION
Nudlez will build brand recognition through its Noodle Vending Units being placed strategically throughout large cities’ business districts. Once brand recognition has been achieved, catering services will be offered, and the Nudlez products will be available in supermarkets. Additionally, Nudlez offers franchise opportunities to help further expand its reach, along with adding an additional revenue stream.
1.5 MANAGEMENT
The owners have significant experience in: the hospitality industry, advertising, and business management. The founder previously owned two very successful Thai restaurants in Seattle but grew tired of paying exorbitant rent hoping customers would turn up each night. His Nudlez concept takes the product to the street!
1.6 FINANCIAL PLAN
Nudlez has strong financials, and is always cash flow positive. Revenues are projected to grow to nearly $58,000,000 by Year 5, with EBITDA totaling $15,000,000. An initial analysis indicates that only 100 meals per day per NVU must be sold to break even. The strong financial plan ensures that the company will be attractive as an acquisition for exit.
1.7 FUNDS REQUIRED & USE
The purpose of this business plan is to raise $1,500,000 from an investor, in the form of a convertible and redeemable note, providing a 32% compound annual return. Nudlez is committed to the rollout of its ‘wok-fresh’ fast food business in 20XX.
2.0 Company Summary
2.1 LEGAL ENTITY & OWNERSHIP
Nudlez is trademark registered. Nudlez Inc. was incorporated in the State of Washington in March 20XX. Nudlez is currently equally owned by Mr. Dan Billings and Mr. Bill Cook. They have already spent over $75,000 in direct costs of product testing and development, and will commit a further $200,000 in 20XX, prior to funds being required from the investor. Both owners will each hold two voting rights on the Board with the investor holding one.
2.2 HISTORY
After running two successful Thai restaurants in Seattle for five years, Dan Billings spent most of the past two years in Thailand looking at business opportunities. While living there he ate almost exclusively as the locals did, from street vendor food outlets. Not only was the food freshly cooked in front of him, but the visual entertainment combined to augment the vibrant street culture. His initial thoughts were, “this is what’s missing from our staid cities in the United States.” Using this as his motivator he began to realize that there were also major commercial benefits to running a fast-food network where the majority of outlets were not restricted to one location. For a start, shop fronts in good locations are expensive. The key to making such a venture successful domestically would be to ensure that the vendor outlets are very hygienic, comply with health standards, serviced by an efficient re-supply network producing consistent meals, with professionalism and quality paramount. He spent considerable time designing a purpose built Noodle Vending Unit. He also moved back to Seattle and renewed his ties in the culinary community to elicit the design of fresh and tasty meals to be served from the NVU. The Nudlez brand was born! Realizing the opportunity to seize a market niche through rapid expansion, the inventor also joined forces with an experienced international business team to develop and implement that initiative.
2.3 FACILITIES & LOCATIONS
During the start-up phase of the business, food sales revenue will come from NVU lunchtime customers in busy Seattle CBD locations. A small office will be setup in Seattle that will serve as the headquarters of the company.
3.0 Products and Services
3.1 PRODUCT DESCRIPTION
The principal product of Nudlez is fast-served, quality, Asian-styled individual meals. The meals are based on a central theme of noodles, but have a flexible degree of customization to suit the purchasers’ tastes. The second, but equally important supporting product, is the mobile cooking unit used to prepare the individual meals. This Noodle Vending Unit (NVU) has been specifically designed to produce the Nudlez meals in the shortest time possible. While Nudlez will own and operate some NVU’s, the bulk of the fleet will be purchased and operated by franchisees.
These two products symbiotically solidify the Nudlez brand name. Nudlez is a state-of-the-art stir-fry noodle street vending system. While Nudlez’s footprint in the three major metropolitan cities in Washington will be underpinned by the NVU fleet and a smaller number of strategically placed Nudlez stores, the aim in year-3 is to diversify the revenue stream by selling the meal product alone in supermarkets for home preparation and consumption.
3.2 FEATURES & BENEFITS
Fast & Affordable Meals
The NVU operator cooks the meals in front of the customer within sixty seconds, using fresh ingredients. As implied by the Nudlez tagline ‘wok fresh’, each serving of noodles is a taste sensation, freshly cooked-to-order and served piping hot in a convenient cardboard pail. Customers are invited to create their own noodle dish following three easy steps: Step 1: Select Noodle Type; Step 2: Add Sauce; Step 3: Choose Protein. Compared to the meals offered by competitors, Nudlez offers a fresh, tasty, nutritious alternative. Nudlez may be slower than some fast food from the point of order, but it is significantly fresher, more nutritious, and almost 50% more profitable.
One secret to the speed of Nudlez meals is that the meats and vegetables are pre-blanched and hygienically sealed in the same pail that the customer eventually receives. The operator simply removes from the fridge, and combines with noodles and sauce in the wok.
Noodle Vending Unit
Each NVU is completely self-contained, mounted on wheels and totally mobile. It is delivered on-site each day by a custom designed mini-van and simply wheeled into position. Stabilizing legs are deployed, the roof pops up and it is ready to go! At the end of the day it is simply wheeled back into the mini-van and returned to base for cleaning and waste removal. Ensuring the speed of the NVU operation is the Nudle-Rac. The Nudle-Rac is essentially a lightweight grid that is packed in the meal production facility with the various meal options. The Nudle-Rac is self-leveling and designed to fit perfectly in the NVU’s fridge.
Each NVU cart is immaculately presented in stainless steel and branded in strong colorful graphics. At night the noodle stand benefits from its own internal lighting. Construction is of the highest quality kitchen-grade stainless steel. It is designed to be versatile for use in just about any place where it is legal to sell food from a temporary stall. In comparison to standard ‘caravan-type’ vendor units, the NVU has major advantages in that it is: cheaper to produce, smaller size for better site access, self-sustaining power (no mains required short-term), easily moved by one person, unique look, hygienic and cheap to service.
3.3 COMPETITION
The range of competitors here spans the market dominants like McDonalds, to sandwich and sushi bars, to ‘vendor’ foods like kebabs. However, when looking for closer similarity to Nudlez’s offering, we arrive at the specialized noodle-based products provided by such companies as ‘Noodlist’. A storefront operation located close to Pioneer Square in Seattle, the meal variety at ‘Noodlist’ is slightly broader. However speed of preparation is significantly slower than Nudlez, necessitating the addition of standard pre-cooked, oily and somewhat bland Asian fare to satisfy the ‘time-poor’ consumers. It is only this time constraint that is satisfied though, as taste and nutrition are compromised. The lack of speed in the fresh cooked Asian fast food market is emphasized by another competitor, ‘Hot Wok’, offering noodle-based meals in the Sea-Tac International Airport, where a sign on the counter informs consumers that meals may take up to thirty minutes to prepare. A captive consumer group is not being exploited here. Nudlez will change that.
‘Wok in a Box’ is an Oregon competitor that intends to open stores in Washington beginning in 20XX. The company currently operates 16 stores in the Pacific Northwest. Market research indicates company revenue for 20XX reached $5 million, representing a growth rate of 78 percent over the prior year. This growth is encouraging to Nudlez, which through the use of its NVU’s and its other competitive advantages will gain broader exposure. The existence of such competitors makes Nudlez an attractive acquisition or merger proposition.
3.4 COMPETITIVE EDGE/BARRIERS TO ENTRY
Unique modality of fast-food availability, with unmatched preparation times
Lower capital costs and overheads and high margin unit sales through broad exposure.
Healthy, fresh, fast, quality, price competitive alternative
New funky, identifiable brand, professional approach and solid management
Aimed at segment of large market not currently exploited by the competition
3.5 DEVELOPMENT
The founders of Nudlez have invested a total of $75,000 in development of the NVU, and plan to spend an additional $200,000 over the next year on development of the second generation NVU. The ‘Generation-2’ NVU is currently under design, maintaining versatility yet improving with the introduction of inventions such as the Nudle-Rac.
4.0 Market Analysis Summary
4.1 TARGET MARKET
With Nudlez, the term “customer” holds two meanings; firstly as a reference to “consumers” who may purchase a meal from a Nudlez point of presence, and secondly as “entities” with an interest in owning a Nudlez franchise. The primary target “consumer” group for the first phase of Nudlez fits the profile of a medium to high-income earner, with a healthy and fresh lifestyle orientation. The first phase of the business plan is about growing brand awareness quickly with customers of this profile. Shortly after growing the brand awareness, as part of the Nudlez rapid growth plans, franchisee customers looking for a self-employment opportunity providing good income relative to the hours worked will be targeted. Institutions such as university campuses will also be targeted as potential franchisees.
The profile will then extend through catering to the customer who is looking for a relatively low cost, value-adding product to support private or corporate events. This customer will be served at both the supermarket (DIY) and event catering levels.
4.2 MARKET SIZE
With sales in excess of $105 billion, the market for fast food is substantial, and the opportunity to build and grow a new exciting product with a strong brand is real. Asian style food represented approximately 35% of this revenue. Although the market is mature with heavy buyer/seller saturation, it is heavily segmented on quality, style, modality and price, presenting opportunity for niche market products such as Nudlez. Customers’ perception of ‘healthier’ is an important value proposition. Nudlez provides this, with the added bonus of serving the meal quickly.
The idea that desirable food could be prepared in a quick fashion appeals to a sizeable portion of the market; those in tourism, people engaged in a commercial capacity, busy homemakers and students. These few examples are indicative of a large and growing collection of “time poor” individuals placing increasing value on every spare moment of their day. Nudlez has the ability to match the ravenous need for convenience with the utility that modern, fast paced lifestyles drive. Nudlez negates boundaries of culture, age and preference, through a daily mission to satiate appetites.
4.3 MARKET TRENDS
Today the contemporary food outlet must maintain its appeal within an increasingly health-conscious market. Worldwide the “diet” continues to gain momentum and this means that products with less appeal to the diet-conscious will suffer reduced success. Entrepreneurs continue to derive extraordinary profits from ‘health-conscious’ ventures, for example ‘Jamba Juice’ (Jamba Juice is a fruit-based snack e.g. smoothies and drinks, which offers a fresh and healthy alternative to the major players’ product. Jamba Juice expects $70 Million in revenue from its 150 stores in 20XX.) Nudlez is designed to make the most of the public’s increasing nutritional conscience.
The economic environment for the successful outlet will take into account the factors and conditions that influence the ability of its target market to afford its product. Consumers today, particularly in business-centric cites, have a relatively high disposable income. Nudlez will be priced competitively with existing alternatives and will strive to attract market share through product differentiation.
4.4 SWOT ANALYSIS
Strengths
Strong product supported by great tasking meals with a strong focus on quality, healthy and competitively priced meals in addition to the speed of producing meals
Strong brand, which has been tested before full implementation. Emphasis on a fund brand culture
Market conditions are favorable with Nudlez offering new niche spark in an otherwise static market
Low development risk as the product currently exists
Easy, low risk growth through short time to market and short time for NVU construction as well as low cost per unit
Transferable business model as a result of similarities in trends and the US culture of street style food vending. Ability to capitalize on brand and concept with expansion through franchise and other market segments
Low management risk due to experienced team and the strong diversification of skills and expertise = holistic results
High gross margins on meal products, which can be maximized by negotiating bulk purchase agreements with wholesalers.
Weaknesses
Defendability of concept as the meal products cannot be patented; this needs to be addressed by building strong brand awareness and establishing copyright on total quality system. Focus also on rapid growth and securing prime sites in target markets
NVU restocking logistics is being addressed through NVU design, which ensures breakeven results for a day’s trade without restocking. Central production facilities also being established to support restocking
Site permits for street vending need to be established before implementation of NVU’s, but also private sites will be secured to reduce exposure to local government issues
Product may be vulnerable to weaken over time, which can be minimized through product innovation and diversification
Opportunities
Niche-specific opportunities through monopolizing niche market by building strong brand awareness and leading the street food vending culture through being vigilant with other vending business opportunities.
Low restriction to NVU operating hours means there can be diversity of venues and access to a very diverse target customer group
Capitalize on diversity of venues and consumer groups to promote and market expansion through event catering and franchise ownership
International expansion to Europe, which has a strong culture for street food vending and pre-prepared meals. Target strategic partner for joint venture, master franchise or sale of Nudlez
Threats
Local government regulations in relation to street vendors means permits secured have minimum life period, however change in this area is slow
Vulnerability to imitation products from competitors will be reduced through rapid development of Nudlez products and brand.
Short-term site permits means the Nudlez brand needs to be diversified through catering, franchise and supermarket placement
Seasonal demand for NVU’s meaning inconsistent returns. This can be minimized through diversifying brand through catering, franchising and a supermarket product line.
5.0 Strategy & Implementation
5.1 PHILOSOPHY
“To forge a new, vibrant, high quality brand in the fast-food sector; to challenge the established market by offering a fresh, tasty and professional alternative; and to build a robust business model founded on high-yield, low capital outlay products.”
It is our vision that Nudlez will expand predominantly through franchising domestically and then to appropriate international markets. It will diversify through catering and product placement in supermarkets. The possibility of trade acquisition or merger also exists.
5.2 MARKETING STRATEGY
Given that the United States is positioned 1st in the top 10 global markets for weekly fast food consumption, the marketing strategy is based on penetrating the market rapidly. This will be achieved by placing the NVU’s in strategic locations where the likelihood of consuming a takeaway meal is extremely high. Expansion of numbers of NVU’s and stores through franchising will ensure that first mover advantage is optimized. The network is supported by an integrated total quality management system ensuring consistency, which will be leveraged in the marketing strategy. Capital outlay for franchisees will be low with owners earning more dollars per hour worked than other franchise options. Expected net profit after tax for franchisees is 20%.
5.3 SALES STRATEGY
The marketing objective of Nudlez is to position itself so that consumers of fast food are confident they are purchasing and consuming a healthy and fresh product, enhanced by the overall delivery experience. The marketing objectives are to:
Rapidly establish a recognized brand through street vendor points of sale supported by a smaller number of strategically placed hardstand stores
Position itself as a fresh, tasty and healthy alternative to traditional fast food
Maintain high gross margins on meal products
Capitalize on the brand through expansion using franchising and product diversification, which will include catering and supermarket placement
Nudlez’s initial strategy will be focused within Washington, commencing in Seattle then within 18 months expansion into Spokane and the Vancouver/Portland metropolis. Beginning with company owned NVU’s and central production facilities, rapid expansion will then be achieved through franchising in all target areas.
5.4 OPERATIONS
NVU production will be outsourced to a manufacturer in Seattle and has been estimated at $12,500 per NVU. Each city will have company owned NVU’s, shops, a central kitchen premises and support kitchens (hubs).
Product Production and Preparation
Raw product has been sourced from selected Seattle suppliers. It is a competitive quality market, with room for a number of suppliers to diversify risk. The secret to Nudlez’ fast delivery to the customer from moment of order is the blanching and preparation process of the raw product at the central kitchen premises and hub sites. This will be overseen by our master-chef teams, adhering to strict health regulations. All ordering, stocking and quality controls will be managed on an in-house computer based system enabling usage patterns to be monitored maintaining ordering efficiency and minimizing wastage.
5.5 NVU Stocking
A unique system for NVU and store restocking, the Nudle-Rac is currently under design. Essentially providing completely removable internal sectioning to the refrigerators to hold the different meals available, it is spring-loaded so that when one meal is removed, the next meal raises to the top for easy access. At the beginning of each day, a franchisee will arrive at their support kitchen where the Nudle-Rac, preloaded with the day’s meals, will be loaded directly into the NVU’s fridge without having to remove the NVU from the van providing an efficient stocking system and minimizing the time meals spend out of refrigeration. For large catering events, support vans will provide additional pre-stocked Nudle-Racs to onsite NVU’s.
5.6 EXIT STRATEGY
It is Nudlez objective to be acquired by another fast food company within five years by posting large revenues and a substantial EBITDA. Additionally, merger options, as well as an IPO may be considered at that time.
6.0 Management Summary
6.1 ORGANIZATIONAL STRUCTURE
Nudlez will be lead by Bill Cook, CEO. He will report to the founders and investors, which will make up the board. The CEO will oversee the CFO, CIO, Food and Human Resources departments.
6.2 MANAGEMENT TEAM
With over 80 years of sector diverse, international strategic and operational combined experience, professionally qualified and with energetic personalities critical to ensuring the Nudlez values, the owners and the management provide the skills to deliver:
Bill Cook has run start-up business operations, with broad management skills
Dan Billings has owned and managed 2 successful restaurants and an advertising firm
David Noor is a financial wiz with broad entrepreneurial appreciation
Angela Gates is not your typical CIO, with a creative flair and eye for efficiency
Sheila Arch brings the important HR skills combined with a marketing bent
Bill Cook - CEO & Director (Systems, Strategy & Finance)
Bill is a Seattle boy, born and bred, with an intimate knowledge of the cultural and niche diversities of Seattle. Originally with an honors degree in Civil Engineering, Bill worked in the Seattle construction industry from the 80’s boom time through the recession of the early 90’s. From there he traveled overseas working in such places as the UK, Bosnia (during the war), Romania and Holland. The bulk of his experience in these eight years centered on strategic management of start-up ventures. These ranged from establishing critical engineering support facilities for the UN in Bosnia, to expending Shell’s retail network across Eastern Europe, to property development ventures in Romania. Bill returned to Seattle in 20XX to utilize this broad strategic experience on home soil, initially focusing on the property sector. Bill has known Dan for over 20 years and quickly assessed the potential of his Nudlez idea, convincing Dan that rapid expansion was key to securing the market niche. Bill graduated his MBA with High Distinction in 20XX.
Dan Billings - Director (Marketing & Food Technology)
After a successful career in advertising culminating in the establishment of his own Seattle based agency, Dan entered the hospitality industry. His first venture, Pad Real Thai, a Thai restaurant and takeaway situated on bustling Pine Street, was an instant hit. An innovative and funky menu, supported with clever marketing (including the use of real Bangkok Pad’s for delivery vehicles) saw the business achieve critical acclaim. Rave reviews in Short Black and Cheap Eats to name a few, were followed by televised appearances on ‘Seattle Weekly’ and Seattle’s Food Lover’s Guide. A second Pad restaurant opened in Bellevue, and was awarded the prestigious ‘Bent Fork” award. Dan sold the Pad enterprise in 20XX to pursue business interests in Thailand. It was here, while enjoying Bangkok’s vibrant street food culture, where the Nudlez concept was born. Dan has a degree in Science from the University of Washington.
6.3 PERSONNEL NEEDS
In the long term, the employee/income ratio will be approximately $125,000 per employee. Nudlez will run a lean operation with an emphasis on sales and food production. In years two and three the sales staff will grow from 20 to 110 people, and the production staff will grow from 12 to 277 people. Administration will grow as needed.
7.0 Financial Plan
7.1 REQUIREMENTS
Nudlez will require $1,500,000 from an investor. The funds will be used primarily for the completion of one central and five suburban meal production facilities. The funds will be expected in two rounds, $750,000 to begin operations, and a further $750,000 seven months later (four months after revenues have commenced).
The investor’s $1,500,000 will be structured as a redeemable note, convertible to 15% shareholding in Nudlez at the end of year-3. Alternatively, redemption can be done at this time providing a return of $3,450,000 (2.3 times investment), equating to a compound annual return of approximately 32%. The end of year-3 is good point for possible investor exit, as decisions on product expansion into supermarkets will be made at this time.
7.2 USE OF FUNDS
Funds will be used to initially finish development of the NVU and to establish fit out central premises in Seattle, including IT infrastructure. 5 hubs and 5 sites will initially be established in Seattle, following that expansion into Vancouver/Portland and Spokane will begin.
7.3 INCOME STATEMENT PROJECTIONS
Nudlez will be profitable by the end of its first fiscal year, as shown in the attached financial statements. The business will grow dramatically in years two and three.
Break Even Analysis
A break even analysis, assuming zero catering and acquisition stores, reveals less than 100 meals per NVU and 150 per store need to be sold per trading day to achieve break even.
7.4 ASSUMPTIONS
Number of average rain days for the 3 cities is 12 per month. This equates to approximately 40% of the month, which we have conservatively applied, despite its low probability. The conservatism also allows for logistics accidents, staff truancy, etc. to arrive at 13 trading days/month for NVU’s. (Exclude catering)
Total employment in the expanded Seattle CBD areas is estimated at over 350,000. Nudlez expects to capture less than 2% of this daily market from CBD NVU’s and stores
Seattle and Portland/Vancouver are similar sized markets, with Spokane being approximately half the size. Revenue estimates reflect these ratios.
Gen-1 and first Gen-2 NVU, testing and development costs totaling around $75,000 already spent by inventor are not included in financials.
First Gen-2 NVU will obtain homologation, meaning that the design has blanket pre-approval with local government, reducing time and cost for individual site permits.
First 10 NVU’s cost $125,000, including homologation.
Wastage is estimated at 15% across all food related product (validated in Seattle trials). This will reduce once the ‘Nudle-Rac’ and associated IT systems are in place
Training, Quality Management Systems and Franchise Operations Manuals will be completed effectively for $220,000 by the end of year 1.
Tuesday, October 6, 2009
Burger King changing image, decor
Wednesday October 7, 2009
Burger King changing image, decor
CHICAGO: Burger King Corp. plans to swap its generic fast-food feel and bland tiles and tabletops for a vibe that's more sit-down than drive-through.
As part of a plan to be revealed Wednesday in Amsterdam, the company will announce a massive effort to overhaul its 12,000 locations worldwide.
The sleek interior will include rotating red flame chandeliers, brilliant TV-screen menus and industrial-inspired corrugated metal and brick walls.
"I'd call it more contemporary, edgy, futuristic," Chairman and CEO John Chidsey told The Associated Press.
"It feels so much more like an upscale restaurant."
But that comes with an upscale price: The new look is expected to cost franchisees, who operate 90 percent of Burger King's locations, between $300,000 to $600,000 per restaurant.
The company said the new design, called "20/20" at the Miami-based chain, is already in place at about 60 locations around the world.
Burger King expects about 75 more redesigned restaurants to be open by the end of next year.
But it will take years before all its locations are transformed.
Burger King franchise owners are contractually required to update their restaurants after a set period of time, and executives said the redesign will be the primary option for future upgrades.
All new restaurants will be built using the plan.
So far, remodeled restaurants have seen sales climb about 12 to 15 percent, while restaurants that are torn down and completely rebuilt at the same location have seen sales climb by as much as 30 percent, Chidsey said.
Observers say the hip, urban and masculine elements in the redesign may be a hit with Burger King's most loyal customers - young men who frequent the chain known as much for its signature Whoppers and "steak burgers" as its sometimes-creepy "King" commercials.
But some experts are skeptical about whether sales will grow as much as the company claims and how eager franchise owners will be to part with that kind of cash, particularly in a sour economy.
Chidsey said he thinks most franchise owners, who typically own both their restaurant's building and the land, won't have trouble obtaining financing and will be swayed once they see how sales can climb.
Morningstar analyst R.J. Hottovy said the reformulated restaurant could keep diners at the table longer but may not draw in enough extra diners to justify the cost.
"I don't think they'll change their perception," he said. "They're pretty entrenched in their reality."
A group representing Burger King franchise owners didn't immediately comment. Fast-food restaurants typically get almost two-thirds of their business from drive-through or carryout orders.
More appealing interiors could help the company compete with sit-down counterparts that many customers think offer better food and better ambiance.
Ron Paul, president of the food consultant company Technomic Inc., said he thinks the redesign shows just how determined Burger King is to compete with "fast casual" restaurant chains such as Chipotle, Starbucks and Panera, which customers think of as a cut above typical fast food.
"People in the fast-food category are recognizing they've been losing customers to the fast-casual player," he said.
"What this sounds like is an attempt to get that dining-in business back by making it an attractive environment."
They might also help Burger King, the No. 2 burger food chain the United States, stand out from larger rival McDonald's Corp. and other competitors, including regional chains, who've begun to add bigger and better burgers to their menus as they clamor for a share of the growing burger market that's worth $100 billion in the U.S.
"It's a competitive necessity to square up against the competition," Chidsey said.
While the most noticeable changes will be inside restaurants, Burger King executives also plan to update exteriors, too, adding metal canopies and more signs proclaiming "Home of the Whopper."
At the same time, the company is beefing up its value menu, temporarily adding a $1 double cheeseburger to U.S. menus.
And it's also in the final stages of installing new broiler ovens that cut energy use and will let the company roll out new menu items in the future.
On deck is the Steakhouse XT burger, which has a thick patty topped with mayonnaise, fried onions, lettuce, steak sauce, cheese and tomatoes.
It's slated to join menus in February. - AP
Burger King changing image, decor
CHICAGO: Burger King Corp. plans to swap its generic fast-food feel and bland tiles and tabletops for a vibe that's more sit-down than drive-through.
As part of a plan to be revealed Wednesday in Amsterdam, the company will announce a massive effort to overhaul its 12,000 locations worldwide.
The sleek interior will include rotating red flame chandeliers, brilliant TV-screen menus and industrial-inspired corrugated metal and brick walls.
"I'd call it more contemporary, edgy, futuristic," Chairman and CEO John Chidsey told The Associated Press.
"It feels so much more like an upscale restaurant."
But that comes with an upscale price: The new look is expected to cost franchisees, who operate 90 percent of Burger King's locations, between $300,000 to $600,000 per restaurant.
The company said the new design, called "20/20" at the Miami-based chain, is already in place at about 60 locations around the world.
Burger King expects about 75 more redesigned restaurants to be open by the end of next year.
But it will take years before all its locations are transformed.
Burger King franchise owners are contractually required to update their restaurants after a set period of time, and executives said the redesign will be the primary option for future upgrades.
All new restaurants will be built using the plan.
So far, remodeled restaurants have seen sales climb about 12 to 15 percent, while restaurants that are torn down and completely rebuilt at the same location have seen sales climb by as much as 30 percent, Chidsey said.
Observers say the hip, urban and masculine elements in the redesign may be a hit with Burger King's most loyal customers - young men who frequent the chain known as much for its signature Whoppers and "steak burgers" as its sometimes-creepy "King" commercials.
But some experts are skeptical about whether sales will grow as much as the company claims and how eager franchise owners will be to part with that kind of cash, particularly in a sour economy.
Chidsey said he thinks most franchise owners, who typically own both their restaurant's building and the land, won't have trouble obtaining financing and will be swayed once they see how sales can climb.
Morningstar analyst R.J. Hottovy said the reformulated restaurant could keep diners at the table longer but may not draw in enough extra diners to justify the cost.
"I don't think they'll change their perception," he said. "They're pretty entrenched in their reality."
A group representing Burger King franchise owners didn't immediately comment. Fast-food restaurants typically get almost two-thirds of their business from drive-through or carryout orders.
More appealing interiors could help the company compete with sit-down counterparts that many customers think offer better food and better ambiance.
Ron Paul, president of the food consultant company Technomic Inc., said he thinks the redesign shows just how determined Burger King is to compete with "fast casual" restaurant chains such as Chipotle, Starbucks and Panera, which customers think of as a cut above typical fast food.
"People in the fast-food category are recognizing they've been losing customers to the fast-casual player," he said.
"What this sounds like is an attempt to get that dining-in business back by making it an attractive environment."
They might also help Burger King, the No. 2 burger food chain the United States, stand out from larger rival McDonald's Corp. and other competitors, including regional chains, who've begun to add bigger and better burgers to their menus as they clamor for a share of the growing burger market that's worth $100 billion in the U.S.
"It's a competitive necessity to square up against the competition," Chidsey said.
While the most noticeable changes will be inside restaurants, Burger King executives also plan to update exteriors, too, adding metal canopies and more signs proclaiming "Home of the Whopper."
At the same time, the company is beefing up its value menu, temporarily adding a $1 double cheeseburger to U.S. menus.
And it's also in the final stages of installing new broiler ovens that cut energy use and will let the company roll out new menu items in the future.
On deck is the Steakhouse XT burger, which has a thick patty topped with mayonnaise, fried onions, lettuce, steak sauce, cheese and tomatoes.
It's slated to join menus in February. - AP
ChicKing spreading its wings to Malaysia
Published: Tuesday October 6, 2009 MYT 2:09:00 PM
ChicKing spreading its wings to Malaysia
NEW DELHI: ChicKing, a fast growing food chain that is on a global expansion mode, will soon serve its spicy crunchy chicken blend with herbs to Malaysian consumers.
A.K. Mansoor, an Indian entrepreneur who established ChicKing Fried Chicken, has ambitious plans to make it a global brand by opening another 200 outlets by 2012.
Currently, he owns 20 restaurants, mainly in West Asia and India.
"We have decided to open three outlets in Kuala Lumpur before March next year.This is part of our global expansion plan. Malaysia is a good market as fried chicken is popular among Malaysians.
"We will be using local chicken and manpower but the ingredients will come from our two manufacturing centres, in the United Arab Emirates (UAE) and India," Mansoor told Bernama.
The company, headquartered in Dubai, plans to spend about RM400,000 to establish each outlet as a family dinning destination in Kuala Lumpur and later expand operations on the franchise model.
ChicKing was first started in the UAE in 2000 under Banquet Foods International -- part of the Dubai-based Al Bayan Group of Companies -- and quickly established its footprint overseas.
Asked how the company plans to position itself in the competitive Malaysian market, Mansoor said: "We are competitive on pricing and have an established quality brand name.
"Over the last 10 years we have developed our own recipe which is 100 percent halal."
Besides Malaysia, in the region, Singapore and Indonesia are on Mansoor's expansion roadmap.
For fast food consumers, ChicKing also offers a range of delicacies on its menu like crunchy chicken, burger and fish.--BERNAMA
ChicKing spreading its wings to Malaysia
NEW DELHI: ChicKing, a fast growing food chain that is on a global expansion mode, will soon serve its spicy crunchy chicken blend with herbs to Malaysian consumers.
A.K. Mansoor, an Indian entrepreneur who established ChicKing Fried Chicken, has ambitious plans to make it a global brand by opening another 200 outlets by 2012.
Currently, he owns 20 restaurants, mainly in West Asia and India.
"We have decided to open three outlets in Kuala Lumpur before March next year.This is part of our global expansion plan. Malaysia is a good market as fried chicken is popular among Malaysians.
"We will be using local chicken and manpower but the ingredients will come from our two manufacturing centres, in the United Arab Emirates (UAE) and India," Mansoor told Bernama.
The company, headquartered in Dubai, plans to spend about RM400,000 to establish each outlet as a family dinning destination in Kuala Lumpur and later expand operations on the franchise model.
ChicKing was first started in the UAE in 2000 under Banquet Foods International -- part of the Dubai-based Al Bayan Group of Companies -- and quickly established its footprint overseas.
Asked how the company plans to position itself in the competitive Malaysian market, Mansoor said: "We are competitive on pricing and have an established quality brand name.
"Over the last 10 years we have developed our own recipe which is 100 percent halal."
Besides Malaysia, in the region, Singapore and Indonesia are on Mansoor's expansion roadmap.
For fast food consumers, ChicKing also offers a range of delicacies on its menu like crunchy chicken, burger and fish.--BERNAMA
Tuesday, September 22, 2009
Innovative digital campaigns
Saturday September 19, 2009
Innovative digital campaigns
By EUGENE MAHALINGAM
Thinking out of the box to get hits.
EARLY this year, fast food giant Burger King launched an online campaign on Facebook called The Whopper Sacrifice. The concept of the campaign was to “dump” (delete) 10 of your friends from Facebook to receive a coupon for a free Whopper hamburger.
According to reports, 233,906 friends were removed by 82,771 people in less than a week.
Burger King launched the online campaign on Facebook called The Whopper Sacrifice – AFP
And Facebook members even created unofficial groups, offering to let other members add them as friends and then delete them for Whopper Sacrifice purposes!
Facebook had the campaign banned less than two weeks later, claiming that it was a violation of user privacy.
Some observers felt Facebook pulled the plug on the campaign for fear that it would affect its online user traffic.
Whatever the reason, one can’t deny that it was a ‘killer’ campaign, winning many accolades at Cannes Lions this year.
Says Universal McCann chief executive officer Prashant Kumar: “It was a very simple campaign, yet it was so effective. I myself got sacrificed a few times!”
On the local front, a host of online campaigns have been compelling enough to create a huge stir with its respective target audiences.
Prior to the launch of Proton Holdings Bhd’s Exora multi-purpose vehicle (MPV) earlier this year, Universal McCann and creative agency McCann Erickson worked on a digital-based naming contest for the vehicle.
Because the MPV was going to be Proton’s first vehicle with fully homegrown technology, an ultrasound image of a partially complete Exora in a mother’s womb was used to attract participants for the naming contest.
Tiger FC’s website
Needless to say, the month-long campaign that ended in September last year was a hit, attracting 251,763 entries, 84% of which were online submissions while the rest were via SMS.
When the car was finally launched this year, it was almost simultaneously launched on Twitter to capture the fancies of the Twitterati, which comprise some of the leading influencers in Malaysia.
“The campaign was so successful that it even became a case study for social media. The ultra sound photo was used to show that it was Malaysia’s baby. We wanted to cultivate a reaction that Proton was homegrown,” says Prashant.
“The Twitter campaign elicited excellent reactions and even became a case study for social media.”
He adds that Proton spent very little on media in the campaign.
Universal McCann claims that even before the launch of the MPV in April this year, Google had showed 1.5 million links to Exora.
Another digital campaign that was worked by Universal McCann was an online game for insurance company, Axa Affin Insurance Bhd.
Called Turning Point, the online game allowed a person to experience life by managing his or her wealth while balancing it with the quality of the person’s life.
The ultrasound image of Exora.
The game challenges a person to manage their wealth at four different life stages – fresh graduate, newly married, married with children, and golden age, which were represented by four levels in the game.
The aim was to drive relevance among ‘digitally-savvy young white collars, who, unlike their parents’ generation, live in a world that does not save, plan or think about tomorrow. Whoever made the ‘most money’ in the game would be the winner – participants also stood a chance to win cash prizes.
The online gimmick, which was held in 2008, attracted over two million visits in just two months, with over 4,000 participants taking part. Over 10,000 referrals were generated.
Axa Affin’s gross premiums surged over 50% as a result of the campaign.
“People loved it,” says Prashant.
Media Specialists Association president Tan Siang Lin recalls a website that was set up in 2004 to promote Tiger FC, the football marketing platform for Tiger Beer. (The campaign, developed by Grey Direct, won the Best of the Best award at the Direct Marketing Association of Malaysia Awards.)
“What I like about this campaign is it was based on local insight, developed with local craftsmanship, and it will always be attractive to the local audience,” she says.
The website had on it a ‘fantasy league’ that visitors could participate in, contests and online games.
The website had attracted about 100,000 unique visitors and over two million page views in the last two years, Tan says.
She says a successful campaign was one that was unique and different.
“Think out of the box. To get the message out, marketers and agencies need to spend considerable effort conceiving creative and innovative approaches, as well as packaging and distributing that message,” Tan says.
Related Stories:
The rise of digital marketing
Dos and don’ts of digital advertising
Social media make waves
Emergence of online ad networks
Corporates on the Net
Innovative digital campaigns
By EUGENE MAHALINGAM
Thinking out of the box to get hits.
EARLY this year, fast food giant Burger King launched an online campaign on Facebook called The Whopper Sacrifice. The concept of the campaign was to “dump” (delete) 10 of your friends from Facebook to receive a coupon for a free Whopper hamburger.
According to reports, 233,906 friends were removed by 82,771 people in less than a week.
Burger King launched the online campaign on Facebook called The Whopper Sacrifice – AFP
And Facebook members even created unofficial groups, offering to let other members add them as friends and then delete them for Whopper Sacrifice purposes!
Facebook had the campaign banned less than two weeks later, claiming that it was a violation of user privacy.
Some observers felt Facebook pulled the plug on the campaign for fear that it would affect its online user traffic.
Whatever the reason, one can’t deny that it was a ‘killer’ campaign, winning many accolades at Cannes Lions this year.
Says Universal McCann chief executive officer Prashant Kumar: “It was a very simple campaign, yet it was so effective. I myself got sacrificed a few times!”
On the local front, a host of online campaigns have been compelling enough to create a huge stir with its respective target audiences.
Prior to the launch of Proton Holdings Bhd’s Exora multi-purpose vehicle (MPV) earlier this year, Universal McCann and creative agency McCann Erickson worked on a digital-based naming contest for the vehicle.
Because the MPV was going to be Proton’s first vehicle with fully homegrown technology, an ultrasound image of a partially complete Exora in a mother’s womb was used to attract participants for the naming contest.
Tiger FC’s website
Needless to say, the month-long campaign that ended in September last year was a hit, attracting 251,763 entries, 84% of which were online submissions while the rest were via SMS.
When the car was finally launched this year, it was almost simultaneously launched on Twitter to capture the fancies of the Twitterati, which comprise some of the leading influencers in Malaysia.
“The campaign was so successful that it even became a case study for social media. The ultra sound photo was used to show that it was Malaysia’s baby. We wanted to cultivate a reaction that Proton was homegrown,” says Prashant.
“The Twitter campaign elicited excellent reactions and even became a case study for social media.”
He adds that Proton spent very little on media in the campaign.
Universal McCann claims that even before the launch of the MPV in April this year, Google had showed 1.5 million links to Exora.
Another digital campaign that was worked by Universal McCann was an online game for insurance company, Axa Affin Insurance Bhd.
Called Turning Point, the online game allowed a person to experience life by managing his or her wealth while balancing it with the quality of the person’s life.
The ultrasound image of Exora.
The game challenges a person to manage their wealth at four different life stages – fresh graduate, newly married, married with children, and golden age, which were represented by four levels in the game.
The aim was to drive relevance among ‘digitally-savvy young white collars, who, unlike their parents’ generation, live in a world that does not save, plan or think about tomorrow. Whoever made the ‘most money’ in the game would be the winner – participants also stood a chance to win cash prizes.
The online gimmick, which was held in 2008, attracted over two million visits in just two months, with over 4,000 participants taking part. Over 10,000 referrals were generated.
Axa Affin’s gross premiums surged over 50% as a result of the campaign.
“People loved it,” says Prashant.
Media Specialists Association president Tan Siang Lin recalls a website that was set up in 2004 to promote Tiger FC, the football marketing platform for Tiger Beer. (The campaign, developed by Grey Direct, won the Best of the Best award at the Direct Marketing Association of Malaysia Awards.)
“What I like about this campaign is it was based on local insight, developed with local craftsmanship, and it will always be attractive to the local audience,” she says.
The website had on it a ‘fantasy league’ that visitors could participate in, contests and online games.
The website had attracted about 100,000 unique visitors and over two million page views in the last two years, Tan says.
She says a successful campaign was one that was unique and different.
“Think out of the box. To get the message out, marketers and agencies need to spend considerable effort conceiving creative and innovative approaches, as well as packaging and distributing that message,” Tan says.
Related Stories:
The rise of digital marketing
Dos and don’ts of digital advertising
Social media make waves
Emergence of online ad networks
Corporates on the Net
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