Business Plan on "New Business Plan"

Business Plan 18 pages (4846 words) Sources: 4

[EXCERPT] . . . .

Marketing Plan: Green 2U…

Marketing Plan

"Marketing Plan: Green 2U Natural/Organic/Local Business Catering"

This proposal will develop a marketing model for a sustainable, local/natural/organic catering company which would cater mainly to business functions. The market for such offerings is currently wide open and creating a business that supported and mirrored environmental goals and missions of businesses is a foundational need in the community, especially for those who find it difficult to find quality healthy food offerings at work. Many businesses are currently researching and adopting sustainable goals as part of their overall business missions and this would add another piece to the puzzle, as they would then be able to say they support their mission in a global manner, rather than seeking non-sustainable options for event catering. Despite the lagging economy the local/natural/organic food market is growing and this business model, associated with strategic analysis seems feasible. If a marketed solution meets or exceeds expectations and develops a moderate to low cost quality alternative to fast food options it is likely that the business will build itself.

II. The Challenge

Many people are becoming aware of the fact that local/natural/organic foods are better for you, better for the environment and yet are often hard to come by especially in the work environment. This business would cater to other businesses and seek partnerships with both small and large businesses to feed employees with self serve options that qualify as local/natural and/or organic specifically for events, rather than small ala cart daily options. All orders would be placed 24 hours prior to need and one week for larger events including more than 20 participants. The development of local/natural/organic food alternative businesses has been on the rise despite the downturn in the economy. People seem to care more and more about such issues as sustainability and local logistics and have environmental goals and standards as aspects of their business models. This business would allow the business world the opportunity to stand by this practice by reducing waste produced from food options at work as well as allowing individuals exposure to healthier regional and local offerings of products that are made by like minded companies who also have sustainable business models. The product would also be offered at comparable prices to medium range cost catered options that do not offer the sustainability model and be only slightly more expensive that cheep unhealthy options currently available on demand. Currently the options for sustainable food are limited for catered events in this region and such an offering would likely engender a great deal of response from consumers. Repeat customers will be gained by providing quality, good tasting options that are local/natural/organic and are served and displayed in a manner that supports sustainability and has a transparent sourcing function, which will likely help create lasting partnerships with other local providers as it becomes a win/win situation of mutual advertisements to a broad market of people who are likely to have the ability to afford to choose such options for future events and daily consumption outside of work. Finally, regarding the general reasoning behind developing a business around local/natural/organic food has to do with my personal desire to further the cause of sustainable agriculture and consumerism. (Halweil, 2003, p. 20)

A local/natural/organic delivery only catering company is the business of choice due to the fact that all that is physically needed is suppliers, customers and an adequate commercial kitchen and a transport system. Staffing would be minimal and offerings would include all fresh made and many handmade products, including some made onsite with ingredients from local sources and others sourced from other local/domestic sustainable businesses. Marketing would initially include a large number of direct mailers, with sources located via a local listing of sustainable businesses first and then a broader mailer to all local businesses with greater than 10 employees. I would seek a partnership with local providers including a local bakery, local produce sellers and some overnight shipments of local/domestic organic meats and cheeses. The spread would also respond to the growing vegetarian demographic as vegetarian options would be available to those who so choose them. All sauces and condiments will be hand made by the business and commercially sealed, so they may be stored from season to season and distributed with paired offerings or sold independently at partner retail locations. Partnerships will be transparent and will offer both higher sales and distribution for suppliers and awareness of product source, to provide reciprocal supplier demand. Descriptive source and composition details will accompany all products and will be set up with the product by the deliverer. Offerings will be limited to a sandwich/wrap self make bar that includes many individual options, all noted with source and contents, including partner logo labeling and short logistics descriptions of each ingredient. Salads will also be part of the package and will include portions per size of group, i.e. green salad will be part of every spread and dressing offerings will be company made and come in two-three varieties, a pasta salad will be optional or based on party number, another fresh seasonal chopped vegetable salad will also be optional or based on party size and be tossed with seasonal company made dressing, depending on order size and/or optional/seasonal ordering. Finally, the menu will include organic easy to eat desserts, such as whole wheat spice cake or organic brownies. The company will produce fresh salad greens from a rooftop hydroponics greenhouse garden, while most other produce will be provided by local growers. Servings will be offered in family style with serving dishes being attractive and reusable, rather than disposable and will be picked up by the deliverer at the close of the event. The serving utensils and dishes will be 100% post consumer recycled products and will also be collected by deliverer at the close of the event unless the company has the ability to recycle such products themselves.

The cost per plate service will be 10-15 dollars depending on the service spread, plus 10% gratuity for delivery and on site limited service. (compared to much less healthy alternatives at between 6-8 dollars per plate with no service and higher end catering at between 18-25 dollars per plate plus 18% gratuity) The strategic goal of the business would be to offer on average 15 spreads per month of 20-150 plate services per event. With this goal the business will meet its break even goal of 150,000 in sales within the first year, making the break even point for the year at 33 weeks, see break even analysis, appendix 1. Marketing costs for the first year will be incurred in web development as well as direct mailers and printing of source material placards. With a total estimated expenditure of $10,600 for marketing included in the expenditure $67,000 estimated fixed expenses for the year. Transportation will be on a long-term lease, to reduce costs and the building lease will be limited in need as the site requires only the infrastructure for a small commercial kitchen, no retail space and only a limited number of external parking spaces, with one doc site for delivery of goods and event loading, as most orders will be placed by phone or via the web and confirmed via phone. The site will also have a flat accessible roof with the ability to support a 20/15ft hydroponics rooftop garden greenhouse. The system will require prepayment via credit card for service, at the time order is confirmed, ensuring payment for expenses prior to service delivery. Cancellation reimbursement will not be possible in full unless cancellation occurs 48 hours prior to event delivery.

III. Situation Analysis

Company Analysis

Goals: To provide natural/organic/local quality mid range catering service to local businesses. To do so with sustainable business strategies that meet the desire of many businesses to ally their own sustainable goals with best practices in a holistic manner.

Focus: Local businesses with 10 or more employees needing catering services that meet overall sustainable goals of business.

Culture: Businesses and their employees that seek sustainable but lower cost rewards to improve their company culture in line with their goals to be more environmentally responsible.

Strengths: Sustainability with only limited investment to meet a niche market in organic/natural and local food provision for businesses seeking to tailor their sustainability goals holistically in their offerings.

Weaknesses: Limited knowledge of catering business and research and development for organic/natural/local sustainable food including hydroponics green rooftop production. Competition from cheaper yet less healthy catering options for large gatherings.

Market Share: The market share for this niche business is expected in its first year to be about 5% of catering and 1% of overall alternative offerings. Increased market share will be expected in the following year with a growth rate of 1% per year for the first three years in both markets.

Customer Analysis:

Number: There are approximately 2,000 businesses in the local area with a staff of ten or greater. Of those there are 535 with direct known interest… READ MORE

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