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Gourmet to Go

Gourmet to Go

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Published by: Charmagne Ferrer-Lim on Jun 29, 2012
Copyright:Attribution Non-commercial

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05/13/2014

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GOURMET TO GOCASE 7I. BACKGROUND
Gourmet to go is a new concept in grocery marketing. Jan Jones, a hardworking professionalrealized there was a demand in this kind of service. The product is a combination of menu-planning and grocery delivery; a complete
 package of groceries and recipes for a week’s meals isdelivered to a customer’s door 
.
 
TARGET MARKET
 – 
consist of young urban professionals living in 2-incomehouseholds in which individuals have limited leisure time, high disposableincome and a willingness to pay for services.
 
OBJECTIVE
 – 
To develop a customer base of 400 households by the end of thethird year after start-up. This level of operation will produce a new income of about $120,000 per year and provide a solid base for market penetration in thefuture.
 
CAPITAL REQUIRED
- $258,000. Jan Jones will invest $183,000 and willmanage and own the business. The remainder of the capital will be financedthrough bank loans.
II. PROBLEM STATEMENT
This case details the product, manufacturing and packaging, future growth, industry, salesprediction, financial aspect, marketing, sales strategy and management. The central issues of thiscase are whether or not the new business will be prolific and how to expand the business.
 
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III. ANALYSIS/EVALUATION
There is a good notion that the business will flourish. The
strengths
are defined: less time-consuming preparation, lesser hassle in grocery shopping and others. On the other hand there areseveral
weaknesses
such as more expensive products compared to grocery and there is still timeto be consumed in cooking said meals compared to take out counters in restaurants.
Opportunity
is commendable since it is a new line of business with a new trend and if it willcontinue, branches and franchises may be obtained. The concern is that the
threat
may be biggerthan the opportunity. There is a big amount of capital outlay that must be appropriated.
PRODUCT
Hiring of nutritionist as consultant is a plus factor.Meals limited to recipes requiring no more than 20 minutes to prepare.
MANUFACTURINGAND PACKAGING
Business requires only a warehouse-type space for the groceries.Only premium brands will be offered. Less variety on brands.Orders are processed, dinners assembled. All ingredients are labeled.* Included in the packaging are nutritional information andPreparation instructions.
FUTURE GROWTH
Various options will be explored. Expansion can include branches in otherlocations or even future franchising in other cities.
INDUSTRY
Since it is a new idea with its own niche, closest competitor would be grocerystores and restaurants with delivery services.* Some groceries do deliveries for $ 4. But, no assistance inmeal planning
SALES PREDICTION
By end of 3rd year, 2.3 % of target market. And a growth rate of 2.73 % ayear.
FINANCIAL
Various financial statements were provided.
MARKETING
Products will be delivered directly to the customer.
SALES STRATEGY
Advertising, Sales Promotion will offer large discounts to 1st-time customers.Promotion will continue for 6 months of operation

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