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CONTENTS

4
5
6
7
10
11
13
14
16

Our Group
Executive Summary
Why Fruits in Food?
Organization Background
Vision, Mission, Values, Company / Working Culture, Business Model

Product & Services


Industry Analysis
Porters 5 Forces, PEST Analysis

Market Analysis
Competitors Analysis
Market Research

20
21
25
26
27
31
35
38
40
43
44
45

Strenghs, Weaknesses, Opportunities


and Threats
Marketing Strategy
TAPP, UVP, Differentiation, Product, Pricing, Promotion, Place

Customer Relationship Management


Brand Positioning
Market Positioning
Market Positioning Statement, Marlet Positioning Map

Marketing Communications Plan


IMC Plan, Media Calendar

Operation Plan
Facilities, Hours of Operation, Employee Training & Education, Food
Production, System, Organizing & Staffing, Cost, Floor Plan

Organization Structure
Financial Budget
Tangible Assets, Breakeven Analysis, Profit & Loss, Breakeven Point,
Return of Investment

Milestones
Contingency Plan
Appendices

OUR GROUP

EXECUTIVE
SUMMARY

Kresna

Florenzo

Michael

Tina

Melts will be a restaurant for health conscious people serving delicious western
foods within an affordable price range. This restaurant will be located in Bugis,
the central area of Singapore. Many educational institutes like Singapore
Management University, Nanyang Academy of Fine Arts , Lasalle are located in
this area. The main targeted customers are the students from these institutes.
Melts will offer a wide range of western foods with a unique combination of
fresh fruits for flavorings. The speciality of the food is that fruits are compulsory
ingredients in every dish and will be used for extra flavorings and not just for
garnishing. Melts claims to offer 100% MSG free food to its customers. In
addition, Melts also provides a friendly customer service experience that
customer will surely cherish.

ORGANIZATION
BACKGROUND
Why fruits in food?

We eat few times each day. Sometimes we eat when we are hungry and
sometimes just because we feel like it! There are so many types of food we can
eat and we have to make the right choices to stay well nourished. According to
health promotion board, Singaporeans are recommended to eat 2 servings of
fruits and vegetables daily. There is no food that can provide all the nutrients for
body needs. Hence one needs to eat a wide variety of food, all in moderation and
in the right balance. Vegetables are usually eaten as part of the meal in Singapore
culture whereas people often have to make a conscious effort to remember to
include fruit in their meal. Many people do not have the habit of including a fruit
after a meal. The habitual food choices can either promote health or increase
the risk for developing chronic lifestyle related diseases such as diabetes,
hypertension and high blood cholesterol. Researches have shown that regular
intake of fruits and vegetables keep the body healthy and reduce the chances of
lifestyle diseases. Although they do not look elegant on the plates, nevertheless
their health benefits cant be ignored.
Melts offers an easier way to have a balance food without compromising on the
test. We offer a combination of food and fruits in all our dishes. In addition, our
foods are also 100% MSG free; a healthier meal with juicy flavored western food.
One can enjoy the fruity flavor in every kind of dish that we serve. Now, why
Melts choose fruits for flavoring? Fruits contain a variety flavors such as sweet,
sour and bitter. In addition to flavor, they also add color and textures to food.
Fruits are also low in fat, calories and cholesterol-free. We believe that by using
fruits, we can create fabulous cuisines. Not only the taste but also the nutrients
inside the fruit will be good for our customers. It will be a healthy alternative to
many who cant give attention to their diet and health. We believe we can take
care of their health and their taste buds equally alike.

We are starting our restaurant with a brand new concept of a unique blend of
western foods with fresh flavor of fruits. Its basically a casual dining restaurant
establishing mainly for students like university goers, keeping in mind the
affordability. Melts will offer wide range of western foods uniquely blend with
fresh fruits, served smoky and fast.

Vision
Revolutionize how people taste food

Mission
To give 99% customer satisfaction, encouraging customers to cut down on their
MSG intake and to educate people that food taste can be enhanced by adding
fruits

Values
The Customers
We treat our customer as the top priority and ensuring to serve the best food
to every customer
The Employess
We believe employees are our best assets and each have their own strength so
everyone has to respect each other and work as a team.
The Partners
We treat our partners as friend in doing all the business by giving them the
fairest business deal.

Business Model
Food and Beverage industry is enduring and continues to bring new colors and
flavors. In this vast industry, we put ourselves in the table-dining market and
categorized as casual dining, which means we are a normal restaurant and can be
enjoyed by everyone.
Although the competitors in this industry are numerous, we do have unique
characteristics that almost none of them offers anything like us. Our closest
competitors are Hans and Fish & Co., which is the choice of young people to
eat and relax. Their restaurants are located near our outlet as well. However we
believe that we will be able to attract the health conscious students and those
who would like to try out something different.

10 ways to love our business :


1. Love what we are doing
2. Love our foods
3. Love our employees
4. Love our partners
5. Love our competitors
6. Love our vision
7. Love our brand
8. Love our teamwork
9. Love our restaurant
10. Love our customer

We cooperate with local suppliers to provide fresh meat, vegetable


and fruit daily in order to serve perfect food to customers.
The cost required in running this business quite big, the rental
cost per month and renovation inncluding daily stocks of ingredients.

Partners

We love our business. We do everyting with love. Starting from preparing the
food with love and until serving the food to our beloved customer. Everyone in
our restaurant love their job and treating each other with love as well.

Food and
Fruit Supplier

Retail
Revenue

Revenue

Franchise
Revenue (est.
2015)

Melts
Restaurant

Cost

Company / Working Culture

The concept that we offer to prospective customers is a unique combination of


food with fruit devoid of MSG. As it is located at Bugis Junction, it is easier for
our target market, the students aged between 17-28 years old, to enjoy our meal
in between their shopping. Moreover, we will give special discounts to them to
encourage them to come often.

We believe the chances of being successful are far greater if we love what we do.
Our activity culture :
We have monthly dinner event
We celebrate every staff birthday
We celebrate every festives season by dressing up and restaurant decoration

Rent
Salary
Raw Material (Stock)
Utilites
etc.

Customer

Customer
Management

PRODUCTS &
SERVICES

INDUSTRY
ANALYSIS

Porters 5 Forces
Threat of New Entrants
Threat of new entrants into the F&B market within Singapore is high as there
are few proprietary product differences and the cost to enter the market is
relatively low. It is assumed that skilled employees would be bit difficult to
get. Numerous strong brand identities restaurants do make it more difficult to
enter and succeed within the marketplace, however, We have a specialty that
is different from all the restaurants, which is free of MSG, because we use the
fruits as flavorings
Bargaining Power of Buyers

10

Singapore consumers is spolit for choice ,they can choose what type of food
restaurant they want to go to, from the traditional Chinese food, Malay, Indian,
Peranakan, Japanese, Korean and many more. However, location and type of
food may reduce this bargaining power. Restaurants most likely would not
doing well in remote areas. Hence, our restaurant will be located in crowded
area so it is easier to access. As for the food, our restaurant offers MSGfree foods and nowadays, there are a lot of people who start to avoid such
unhealthy foods, therefore we have some possibilities to attract this group of
people.

Our restaurant is assigned a single word Melts to refreshment its themes. It is a


western name and thus shows that the restaurant primarily serves western food.
Although this is a western restaurant, the similarity ends here as we serve dishes,
which will not be found in other western restaurants. Using of fruits in our dishes
make them healthier and taste different from the rest.
We have a strong emphasis on the taste of the food and we believe that this is
the strongest differentiation compared to other competitors. One of our key
innovations is the fruit-melt sauce. The sauce can be made up of one fruit or
combination of many fruits. With this special recipe MSG can be completely
avoided. Our guests not only find the dishes mouth-watering, but they will find
it healthier than the food served by our competitors. We believe that the health
conscious public will get attracted to our food sooner or later.
Our signature dish is the Honey orange beefsteak. We strive to give our
customers the unique yet tasty combination of fruits that suitable to be eaten
with the steak and other original western dishes in our restaurant.
Daily fresh ingredients is a must to ensure the quality of food is above our
restaurant standard. We hire trained chefs to give the best taste of the food and
to avoid unnecessary faults such as burnt, half-done and improper food portion.

Threat of Substitutes
Our primary target audience is university or college student. To serve them
well, we set a nice colorful ambience yet not too far to avoid kiddy ambience.
The main theme of our restaurant is Casual. We hope our restaurant can be a
comfortable and relaxing hang-out place, where students can spend some of
their time for having lunch or dinner while reducing their tiredness from studying
for several hours at school or institutes.
As we realized that our customer might be tired, we strive to give a good service
by having polite waiter/waitress and hygienic dining place. Nevertheless, a quick
service is also what we want to give. However, it is not the top priority. Our top
priority is to serve customer with smile and politeness without exaggerating it,
also to avoid false order and other mistakes that may occur during customer
serving. With this quality, we believe our restaurant would grow as a place where
people can enjoy every aspect in our dining place.

Instead of dining in a restaurant, customers can also choose to dine at home as


its more cheaper to cook by themself but the modern lifestyle makes people
have less time,resources, and ability to cook for themselves. Bringing food for
lunch to school or the workplace is not common in Singapore; hence the chance
of eating out is high. At least one meal of a day is eaten outside.
The industy of our business is F&B. The F&B industry is growing at an
exponential rate. The F&B sector contributed S$1.91 billion or 0.74% to
Singapores Gross Domestic Product (GDP) in 2008. There are 5,939
establishments in the F&B sector that generate some S$5.56 billion dollars
for the economy. In total, they hire 82,551 of Singapores workforce. The
cosmopolitan environment has also attracted many foreign culinary talents to
set up establishments, bringing with them new and interesting F&B concepts.
This has contributed to the quality lifestyle that Singapore offers to both
locals and visitors also bringing strong competition to the Food and Beverage
industry in Singapore. These are research on Porters 5 Forces and PEST
analysis.

Bargaining Power of Suppliers


There are many suppliers in Singapore. That makes the bargaining power of the
suppliers low. Large number of supplier makes none of them can set a higher
price. Thus, this large number of suppliers help us to get the supply for our
restaurant easier.
Determinants of Rivalry among Existing Competitors
The F&B industry within Singapore is growing rapidly, allowing room for
competition. The competition among the restaurants in SIngapore are strong.
The more specialized the restaurant, the less the threat of competition. While
our restaurant specialized on flavoring by using fruits.

11

PEST Analysis

12

Politic

Social

Singapore is one of least corrupt countries in the world besides Denmark and
New Zealand. Since the day Singapore officially gaining sovereignty on 9 August
1965, its politics has been dominated by the Peoples Action Party (PAP). Under
the leadership of the PAP, Singapore possesses a distinct political culture such
as authoritarian, pragmatic, rational and legalistic. Singapores power structure is
highly centralized, characterized by a top-down style.

As one of the worlds most densely populated countries, Singapores annual


population growth rate for 2010 was 1.8%, includes resident foreigners. While
having varied language, culture, and religious heritage, Singapore has English
as national language and also Chinese, Malay, Tamil as official language. English
is the language of administration and also is widely used in the professions,
businesses, and schools.

Singapores economic growth and political stability were maintained by


the paternal guidance of the PAP. Thus, instead of politicians, Singapore is
administered by bureaucrats in a meritocracy where power is gained through
skill, performance, and loyalty to the nation and its policies.

English was mandated by the government as the primary language used at all
levels of the school systems. Enrollment at public universities of both full-time
and part-time was 72,710 and 80,635 for polytechnics in 2009. While 24,846
students was owned by The Institute of Technical Education for basic technical
and commerce skills. Overall, countrys literacy rate is 96.3%.

There is a dominance of government-controlled companies in the local economy.


In spite of its powerful position, the Singapore government has maintained
a clean and corruption-free image. Moreover, rifts within the leadership in
Singapore are rare. The mode of decision making is by consensus and the style of
leadership is collective.

Economy
Singapore has high GDP in 2009 for $182.23 billion while annual real growth rate
was 1.8% in 2008 and -1.3% in 2009. Gross Domestic Product per capita was
$36.537 as achieved in 2009. Singapore has no natural resources at all. On the
other side, 0,5% of GDP was under agriculture products such as poultry, orchids,
vegetables, fruits, and ornamental fish. As for manufacture, this kind of electronic
products and its components, petroleum, machinery and metal, chemical and
pharmaceutical, etc. took 19.5% of real GDP.
There are some major markets such as Malaysia, Indonesia, Hong Kong, Germany,
France, China, United States, and Japan. Singapore imported aircraft, crude oil
and petroleum, electronic components, radio and television receivers, motor
vehicles, chemicals, food/beverages, irons, and electricity generators worth $245
billion. There are some major suppliers as well such as Germany/France, Malaysia,
United States, China and Japan.

Technology
Almost all of Singaporean possesses mobile phone as a handy communication
device. Though one should be enough, it appears that some group of people like
businessman or business woman owns 2 mobile phones for their purposes.
The world technology has spread around Singapore and it is unlimited as long
as one can buy it. More hardware such as personal computers and laptops is no
more a limitation to working people only. Students are now own their laptops;
carry it everywhere they want to go. Moreover, internet device also available on
a small USB drive called broadband, which lets all people surf internet wherever
they are. This technology of communication in Singapore is not something at left
behind than other developing and hi-technology countries.
As the conclusion, Singapore has a high rate of income and growth rate per year.
On the other side, Singapore is one of least corrupt countries in the world. Many
cultures and races such as Chinese, Malay, and Indian, mixed into one society
while having English as the national language. Speaking of people of Singapore,
Singaporeans are up-to-date in the growing technology. With this analytical
statement as our base, we believe that we can open, succeed, and grow our food
and beverages business in Singapore.

MARKET
ANALYSIS

The 2,106 restaurants in Singapore represent 35.4% of all F&B establishments


and a total number of 34,200 workers are hired. Restaurants made the largest
contribution to the sectors value added. Singapore F&B scene has been
transforming itself over the years.
The current trend of F&B in Singapore mostly are developing in Tanglin Village,
Rochester Park and Sunset Way. These places become new destinations
for dining and entertainment in Singapore. Home to upmarket and trendy
restaurants, wine bars, clubs, pubs, gourmet shops and other F&B establishments.
These new zones are also popular for F&B businesses to develop and launching
new concepts in Singapore.
F&B products have short lifespan and the strong competition has made it an
imperative for businesses to innovate quickly to cater to changing consumer
tastes. Chocolate bars, beer and mussels bistros, hand-pulled noodle restaurants,
molecular gastronomy and bistro-bars are just some of the new additions to the
food scene.
In recent years, many restaurants emphasise on growing their customer service.
Businesses are investing in training and development of their staff, setting
service standards and auditing service levels to differentiate themselves from
competitors just to keep customers coming back for more. Service quality is
proven important for a restaurant to success.
Singapore grown F&B establishments have been more aggressive on exporting
their brands abroad through franchising and joint ventures, and even setting up
wholly owned outlets in countries like China, Hong Kong, Indonesia, Malaysia,
Thailand, Vietnam and even Dubai. Their success is already paving the way for
other F&B businesses to make their mark abroad.
We estimated some of the barriers that we will face to enter this market.
Customer may need some time to accept our food because it is a new food
development. However, we believe that our food wont be rejected by the market.
According to our market research many youngsters like to try new kind of food
and there are getting more and more people are aware of the ill-effects of MSG.
Getting employees for F&B business is the another barrier that we will face
because working in restaurant is considered a tough working job in Singapore.

13

Competitors Table Analysis

COMPETITORS
ANALYSIS

No

Hans
14

Hans restaurant sells mixture of western and local asian food. The layout of the
restaurant is designed like a cafe. Outdoor seats also available in some outlets.

Fish & Co.


Fish & Co. began its operation in 1998. It was founded by two partners- Ricky
Chew and Lamert Yeo. Fish & Co. is about fish, fish and more fish. They specialize
in fresh delicious fish dishes and also dish out delectable seafood goodies like
prawns, mussels and oysters.
Fish & Co. developed on two new concept other than their restaurant which is
Fish & Co. Express and [F.I.S.H]. Fish & Co. Express offers seafood fast food
and burgers while [F.I.S.H] offers all-you-can-eat salad bar.
The unique way of serving food in a pan was an inspiration drawn from the
simple practices of South Africa fisherman; who caught seafood fresh from the
seas and cooked them immediately in the pan.

Billy Bombers
Restaurant with the feel of the 40s-style California diner deco.Serving old
American fare such as gourmet burgers with chunky American Fries which are
main staple of that era. There is also an Italian corner where they serve diners a
wide range of Pasta. Besides the A-la carte menu, they also have daily set meals,
Chefs specials, Happy Hour & Tea time promotions. Billy Bombers is famous for
the big portion of serving.

Fish & Co.

Billy Bombers

Features

Mixture of western and local food

Fish & Chips


Seafood in a pan concept

Hamburger
American Dining

2.

Benefits

Comfortable cafe layout

Affordable seafood

Large portion of serving

3.

Package

Normal serving
Comfortable environment

Special serving by using pan


Enough size of serving

Retro red and blue setting


Large portion of serving

Pricing Strategy

Hans

Fish & Co.

Billy Bombers

1.

Price Range

S10-$15 per person


Middle slightly lower

$20-$30 per person


Middle price range

$25-$30 per person


Middle slightly higher

2.

The Offerings

Seasonal Promotion Meal

Mint sweet freebies


Lunch Promotion

Lunch Promotion

3.

Customer Perception

Normal quality food with value price


Bad customer service

Good service and nice food


Will buy again

Satisfy with the large portion

No

Opened in 1980 Arcade at Collyer Quay, the Hainanese family-owned business


has grown from a small food counter to a profitable 20-outlet chain today. Hans
business is divided into two category, Hans restaurant and Hans Cafe 7 Bakery.

Hans

1.

No

The analysis of competitors is done according to the proposed location. There are
lot of restaurants in Bugis area that sell food at similar price. From the products
and services that they provide, we choosed three of them as our competitors
which is Hans , Fish & Co. , and Billy Bombers.

Product Strategy

Place Strategy

Hans

Fish & Co.

Billy Bombers

1.

Location

National Library building


Near Bugis MRT Station
More than 20 branches located all
around Singapore

Bugis Junction
Near Bugis MRT Station
Other 15 branches located all around
Singapore

Bugis Junction
Near MRT Station
Other 6 braches in Singapore

2.

How is it sold

Self service

Full table service

Full table service

No.

Promotion Strategy

Hans

Fish & Co.

Billy Bombers

1.

Who are their customer

Age range 15-40


National Library goers
University student
Working people
Secondary school student

Age range 21-35


Working people
Univesity Student
Family

Age range 21-35


Working people
Family

2.

How they get customer

ATL
Word of mouth

ATL
Facebook
Membership
Word of mouth

ATL
Word of mouth

3.

Promotion mechanics

Current Promotion :
Seasonal Promotion on Christmas

Current Promotion :
Happy Lunching Set Meal

Current Promotion :
1 for 1 lunch special

Despite of the strong brand or long history that our competitors have, we have
our own way to compete with them. We are using fruits as the replacement of
MSG and giving the best warm and friendly service to every customer.

15

How often do you go out for a meal with


your friends a week ?

MARKET
RESEARCH

1-2times
3-4times
5-7times

Research done by quantitative method. We get positive result from 9 simple


questions. All of the answers are supporting the business that we will set up.
Here are the results of the research ( Proof of the survey can refer to appendices
on page 81 ) :
Are you male or female ?

How much are you willing to


spend for a meal in a restaurant?

What is your age range ?

Do you like to try new kinds of


food ?

Result of the survey is very satisfying and rewarding us in building this restaurant.
The survey correspondents mostly are accordance with our target market age,
with age from 17-28 years old. Their monthly allowance are enough for them to
have a meal in a restaurant, with the result of 23% below $300 and 23% above
$600 per month.

16

Male
Female

How much is your monthly


allowance ?

below 17
17-19
20-22
23-25
above 25

What type of food do you like ?

below $10
$11-15
$16-20
above $20

What do you think of the usage of


MSG in food ?

Yes
No

Would you want to eat dishes cooked


without MSG, but instead of using
fruits for flavoring?

Western and Japanese food are the most popular cuisines among all, where each
topping the survey with 31% of the votes. With this result, we believe that the
popularity of western food will boost our business to success.
Almost all of the response show that they at least eat a meal outside once every
week. This results are quite positive for our survey.
Half of them agreed to pay $ 11 - $ 15 for a meal in a restaurant, where this price
range is within our restaurant price range also. 95% of them willing to try new
foods and 63% of the correspondents are aware of the ill-effects of MS. Again,
the results are beneficial for our restaurant.

below $300
$300-399
$400-499
$500-599
$600 and above

Western
Chinese
Japanese
Thai
Others

Bad for Health


Good Taste
Just Fine
Nevermind
Others
Skip

Yes
No
Maybe

Eventually, 67% of the result show that they would like to try the food without
MSG and cooked by using fruits as the flavoring, which can be interpreted, more
than 20 people can be our regular customers and more than 5 people will try the
food at our restaurant.

17

18

Bad Effect of MSG

Benefits of Eating Fruits

More people are aware of the ill-effects of MSG today. Researches shown that
MSG causes a range of dangerous side effects, while nowadays almost every
food product in the market contains MSG inside it. MSG is used around the globe
in soups and broths, sauces, gravies, and flavoring and spice blends. MSG is
also present in a variety of processed foods such as canned and frozen meats,
fish, poultry, vegetables, and ready-to-eat food plates, dressings, ketchup,
mayonnaise, soy sauce, sausages, snacks, some processed cheeses, soup
powders for instant noodles, etc. Although the harmful sill-effects, MSG has
become a normal ingredients to enhance food flavor these days.

Fruits and vegetables are some of the healthiest and best tasting foods. They
are low in sodium and calories, and most are fat free. Reach for blue, purple,
green, white, yellow, orange, and red fruits and vegetables for your meals and
snacks. They help your body get the vitamins, minerals, fiber, and other natural
substances it needs to stay healthy.

Some side effects and disorders of consuming MSG are headache, allergies,
strokes, brain Tumors, high Blood Pressure, difficulty of breathing, diabetes, chest
pain and many more other health problems.
Certain ways to eliminate the intake of MSG such as check a product label to
avoid product with MSG in the ingredients, asking restaurants do they serve
dishes that contains MSG. However these doesnt ensure us of not consuming
MSG, because some manufactures are trying to hide their usage of MSG with
labeling their product No MSG or Healthly Low Fat.
This result push up the success rate for our restaurant. We offer food with 100%
free of MSG. Customer will save up the trouble to check products label or asking.
We assure of providing 100% free of MSG food.

In recent years, per capita consumption of vegetables has increased. This


shows that more Singaporeans are beginning to adopt healthy lifestyle. Health
Promotion Board recommend that, we should eat 2 servings of vegetables and
2 servings of fruit each day. Enjoying a variety of fruit and vegetable gives us
unique nutritional and health benefits. Eating a diet rich in fruit and vegetable
will give us lower risk of many diseases. Health Promotion Board also encourage
people to include fruit and vegetable in their meal by providing several
suggestion on how to sneak fruits inside meal such as vary the cooking method,
adding fruit to stir fried meat dishes, steam or stew fruits to make a dessert,
blend fruit in ice cream or any dessert.
Our business concept is quite similar with the suggestion on vary cooking
method. This shows that our cooking method by using fruits as the flavoring is
not impossible. We believe that fruits can be the replacement of MSG to enhance
food flavor.

19

STRENGTHS,
WEAKNESSES,
OPPORTUNTIES
AND THREATS
(SWOT)

MARKETING
STRATEGY
We love our business
Good team work
High knowledge of recipes

20

Strength

Young , passionate and open


minded

Lack of experience

We show our love to our restaurant business by executing a good teamwork


within our staff as well as having high knowledge of recipes and we are openminded as we are young and passionate

S W

Weaknesses

In this new business, we aware of our limited funds and business experience
deficiency

Opportunities
We realize that there are more people aware of ill-effects of MSG although
younger generation like to spend money and experiencing new foods.

Threat
We are aware of the increasing operating cost and the difficulties to recruit staff
for our F&B business while there are a lot of competitors as well.

More people aware of illeffects of MSG


Younger generation like to
spend money

T
Operating cost increasing
Difficulties to recruit staff for
F&B business
Lot of competitors

Younger generation like to


experience new foods

21

Limited funds

Melts is targeting on these customer profile:


The student : more and more youngsters have developed healthy eating
habits. Some also go through a health food phase while in college.
The health conscious person of any age or sex : includes anyone on a
restricted or prescribed diet or those who have committed to a healthy diet.
Curious and open-minded : Through marketing and word-of-mouth, people
will seek out a new experience and learn that nutritious food can be tasty,
fun, convenient, and inexpensive.
However, the main targeted customer is the student age range from 17-25 years
old. Students with high knowledge are more concern about their health condition
while they are also curios and open-minded

Target Audience Personal Profile ( TAPP )


Michelle is 21 years old. She is a skinny girl who currently studying Graphic
Design in Lasalle. Michelle belongs to a middle class Chinese family. She lives in
Toa Payoh HDB flats. She loves to hangout with her friends on weekends around
Bugis and Orchard. Michelle never care on what food she eats. She just loves to
try different kind of dishes. Food hunting is her must-do activity. Being stylish,
trendy, and carrying modern gadget such as iPhone 4 is her lifestyle. She
normally read U-weekly magazines. Michelle likes to watch cookery program.

Unique Value Propositioning (UVP)

Pricing

We offer the most unique food without MSG by using fruits as the main
flavoring, at affordable student price with friendliest services.

We set our meal price from $10-$15. Medium price range which is affordable for
student.

Differentiation
In creating a new restaurant, we believe that we should have our difference
from the existing competitors in the market. Therefore, we have a very clear
difference in the products that we sell to consumers and we also provide a
better service, and also in other matters.
In terms of food quality, Fish & Co. quality is fine but they are still using
MSG in their food, while Hans quality is not that good and they use a lot of
unhealthy flavoring ingredients. Therefore, we provide western food that is
cooked without the usage of MSG but we are using fruits as the flavoring
instead. We intend to provide a more natural flavor food.
Other things, related to the quality of food. We ensure that all foods are clean
and fresh. We definitely will not use fruit, meat or other ingredients that are
not good or fresh.
22

In terms of customer convenience, our competitors have more priority to the


capacity of the restaurant, in another sense, they dont consider about the
comfort and privacy of consumers by providing a little distance between the
table. Meanwhile, we provide the level of comfort and privacy of customer
better than our competitors with a wider distance between the table,
although it will reduce the capacity of our restaurant, but we believe that
consumers comfort is one of the most important thing that a restaurant
should provide.
Another difference of our restaurant is related to the service that we provide
to consumers. All things, from coming to the restaurant, served by staff,
placement of seating, food ordering, until payment is all done in the consumer
table, so there is no self service program. In this industry, indeed not a few
restaurant provide this kind of service, but we realize that most of restaurant
that implement this kind of service are classy restaurant, while Hans, one of
our competitors still provide self-service in their restaurant.
Our restaurant manager is ready to serve any customer at any time, because,
our restaurant manager not just sitting back inside the office. Thus, any
customers who would like to express their complaints, our restaurant manager
will be available.

Promotion
Product
The food product we are selling is western food. Our exclusive signature dish
specially created by the chefs is Honey Orange Beef Steak.
Main Dish
Beef, Chicken, and Fish Steak ( Served with different kind of fruit sauce )
Pasta
Baked Rice
Baked Spaghetti
Fish & Chips
Pizza
Beef, Chicken, and Fish Burger
Starter
Garlic Bread
Chicken Wing
French Fries
Onion Ring
Hashbrown
Beverage
Tea
Lemon Tea
Green Tea
Fruit Tea
Coffee
Cappuccino
Ice Water ( Free Flow )

Soup & Salad


Soup of the day
Salad

Latte
Mocha
Fruit Juice
Smoothies
Milkshakes
Soft Drink

However these are just the menu range on the starting of the business, as the
business goes on, our chefs will develop more interesting dishes.

Promotion / marketing communication of this restaurant will be conducted


throughout the year 2011 and it is divided into 3 phases (per 4 months). The
funds budgeted approximately $ 200,000 is taken from the initial capital, the
details that associated with the promotion or marketing communication can be
found on Marketing Communication Plan on page 31.

Place
Bugis Junction
200 Victoria Street
Singapore 188021
Owned by CapitaLand
We choose this place because
this are is high crowded.
According to the CapitaLand
website, Bugis Junction annual
shopper traffic in 2009 reached
36.4 million. Below are list of
some reasons why this place is
choosen
1. Located in the downtown core of Singapore with direct access from the
Basement level to the Bugis MRT Station. Bugis MRT station will also be the
interchange to the Downtown Line in future. This makes the place easier to
acces and customers dont need to walk far to our restaurant.
2. Singapore Management University (SMU) ,Lasalle, NAFA , Raffles Design
Institure, and other school located near this area as we are mainly targeting
University students who are coming to this area for school.
3. Bugis Street, Bugis Village and Iluma located opposite the street. Many of
shopping places located in this area which will attrcat more crowd.
4. National Library located across the street. Most of our targeted customer,
university student, always go to library to do research for their school
projects.
5. Many shopping places, restaurants and food courts are available in this area.

23

National
Library
Bugis
Junction

Lasalle

CUSTOMER
RELATIONSHIP
MANAGEMENT

MRT

25

24
NAFA
Bugis
Junction

National
Library
Raffles
Institute

SMU
Artfriend

We manage our relationship with our customer by launching a membership


program. The membership is applicable to any customer if they dine above $50.
Some benefits for membership :
1. Discount 10% for total bill. Special 15% discount for student.
2. Birthday month treat. Vouchers will be given to the customer. Each voucher
is valid for $1. The amount of voucher they will get is the same as their age.
Example : 19 years old will get 19 vouchers.
3. 365 days membership discout even it is Public Holiday.
Other than membership program, our outlet manager will be around all the
time in the restaurant so that customer able to give any feedback or complain
anytime. Feedback, Suggestion and reservation for seat also can be done online.

BRAND
POSITIONING

MARKET
POSITIONING

Market Positioning Statement

We dedicate to teenagers and young adults who are studying and dare to try
something new, as our restaurant offers them the most unique food with natural
fruit flavorings that are free of MSG, at affordable student price.

High Price

Brand DNA
Category
26

Melts is a casual restaurant serving foods in fruity flavor.

27

Character
Melts aims to be a unique and friendly restaurant.

Market Positioning Map

Benefits
Tasty food and enjoyable experience of our brand new recipes

Promise

Low
Quality

Only we delivers unique food by adding variety of fruits as the main flavoring,
that created by our chef and guaranteed with no usage of MSG

Credibility
Recipes are made by our trained chef by using fruits as the flavoring and
ensuring there is no MSG inside the food

High
Quality

Our restaurant : Melts


The price we offer is equivalent to
Hans, which can be categorized as
affordable but we provide quality
food is better than Hans, while
Fish n Co. offers a higher price on
the menu, but have better quality
than Hans.

Competitor : Fish & Co.

Difference
We create combination of fruits and food

Competitor : Hans

Low Price

High Price

High Price

29

28

Small
Portion

Large
Portion

In terms of price, we have positioned our


restaurant together with the "Han's", but the
portion of food, we give more than "Han's"."Han's"
serves food with a small portion, but the price
is quite high. "Fish n 'Co." offers a more than
adequate, it's just the price is quite expensive.

Low Price

Low
Touch

High
Touch

Low Price

In terms of quality of service in the restaurant, we


put ourselves as the best of all competitors. We
try to provide the best for the customer. Starting
from the placement of seating, reservations, until
payment is all done at the customer's desks. There
is no self service in the presentation. Manager
Restaurant also ready to serve customers who may
need assistance or complaints anytime.

MARKETING
COMMUNICATIONS
PLAN(IMC PLAN)

Wide Selcetion

The Marketing Communication Plan design of our restaurant which is divided into
3 phases.

1. The first phase (Jan-Apr 2011)


Objective
Create awareness to let people know about our restaurant and encourage people
to try our food

Design Message

30

Unique Value: No MSG, Food Unique Combination


Feature: Honey Orange Beef Steak

MSG

Natural
Food

Media Selection
Advertising : Print media ( Magazine : IS Magazine, Catalog, Juice )
Outdoor Media : Bus Stops and MRT ( Bus Stop in Bugis and Orchard area
and MRT door ads on Bugis and City Hall MRT Station )
Brochures / Flyers

Budget
Our restaurant : Melts

Competitor : Fish & Co.

Low Selection

"Han's" and "Fish n 'Co." is not a barrier for us


in terms of food choices and the authenticity
of the taste of the food itself. We provide a
variety of menu choices and provide a sense
of natural origin with no MSG in it. While both
are still serving food with flavor and have a
few menu options.

Estimated SGD 100,000


We allocated $ 100.000 for the campaign in this first phase. We aim to introduce
this restaurant to the public by introducing the difference of our restaurant, we
are selling food that is cooked with fruits as the flavoring and there is no MSG
added inside the food. Besides introducing our restaurant, we also presenting our
special signature dish, Honey Orange Beef Steak.

Measurement
Competitor : Hans

Targeted 30-50 customers per day on weekdays and 50-70 customers on


weekends

31

2. The second phase (May-Aug 2011)

3. The third phase (Sept-Dec 2011)

Objective

Objective

Encourage regular customers to come back

Design Message
Launch loyalty program and a special offer (National Day)

Media Selection
Sales Promotion : coupons for 15% off
Internet : Web site and Facebook fan page
Direct Mail
32

Budget

To attract new customers and increase sales

Design Messages
New dishes and a special offer (halloween and christmas)

Media Selection
Sales Promotion : coupons for 15% off
Advertising : Print Media ( Magazine : IS Magazine, Catalog, Juice )

Budget
Estimated SGD 40,000

Estimated SGD 60,000


The purpose of the second phase is to remind and encourage regular customers
to come back often and patronize our restaurant. In addition, this campaign
could also attract potential new customers. Funds needed at this stage is lower
than the first stage, because we believe our restaurant is getting known in the
market. Coupons and direct mailer is the primary campaign in this phase. Website
and Fan Page on Facebook (social networking) are also built. The messages in
this second stage are offering a loyalty program and special offer on Singapore
National Day.

Measurement
Estimated total 100 of customers will sign up in this 3 month time

Third stage can be considered as an additional campaign, after the two pervious
campaign we believe our restaurant is being recognized in the market. On this
stage, we are targeting to increase the number of new customers and sales. The
budget allocated is slightly decreasing comparing to the last campaign due we
are only using coupons and magazines. Messages to be delivered was almost the
same with the two previous campaign, special offers and several new menu.
Three stages of this marketing are estimated to increase the popularity of our
restaurants, although impressed simple and not too much. Budget prepared
is SGD 200,000 for the third-phase campaign in 2011, through advertising,
brochures, sales promotion, Internet, and direct mail.

Measurement
Targeted 50-80 customers per day on weekdays and 80-100 customers on
weekends

33

OPERATION
PLAN

Facilities

The restaurant located inside Bugis Junction. Total amount of space estimated
around 185m2.. The reason of choosing the current location because Bugis
Junction is located near the train station. Bugis is one of the location that
student will go, either its going to school, library, or shopping.
The restaurant renovation will be simple yet colorful. Each color represents
for fruits color and our passionate to the business. Total of 40 seats in the
restaurant.

Media Calendar
Media
34

Phase 1
Jan

Feb

Mar

Phase 2
Apr

May

Jun

Jul

Hours of Operation

Phase 3
Aug

Sep

Oct

Nov

Dec

The restaurant will open daily at 11am to 10pm on weekdays and 10am to 12pm
on weekend and public holiday.

Magazine ( IS Mag )
Magazine ( Catalog )
Magazine ( JUICE )
Bus Stop Ads
Train Ads
Brochures/Flyers
Sales Promotion ( Coupon )
Website
Facebook Fan Page

Employee Training & Education

Employee will be trained when they are hired. The training will cover on the
operational duties, our restaurant background and the latest information about
the restaurant. Food safety training begins the first day an employee arrives for
work, with an orientation to our standards.

Food Production

Food will be prepared only in the kitchen. The kitchen will be cleaned everyday
to ensure the high standards of sanitary. The supply of ingredients will be
replaced daily and checked by the kitchen staff to ensure the quality and
freshness of the ingredients. Companies that supply food products to Melts
must have a number of food safety programs in place.

System

Maintanance of equipments in the restaurant will be done monthly to ensure


the safety of every employee.

35

Floor Plan
Organizing and staffing

36

Branch Manager
Open and close the restaurant, estimate how much food and beverage
will be used, place order with suppliers, purchase and track all the
inventory and equipment, arrange for maintenance and repair of
equipment, oversee the food preparation, checking the quality and
size of the servings. Manager resolve customer complaints about food
or service. In addition, manager make sure that kitchen and dining
areas are cleaned. Manager are responsible for recruiting and hiring
new kitchen and serving staff. They train new staffs and oversee their
training hours. Manager also schedule staff work hours, making sure
that peak dining hours are covered. Managers total cash and charge
receipts at the end of each day and they deposit them in the bank
account.

Bartender
Prepare all drinks also develop and create new drinks recipe.

Head Chef
Direct the preparation, seasoning and the cooking process. Supervise,
train, and observe chefs and kitchen staff. Determine how food should
be presented, create decorative food displays, instructing chef in
preparation, cooking, garnishing, and presentation of food. Head chef
responsible for hiring and training new chef. Head chef also create new
recipes for menu.

Cleaning Service
Responsible for restaurant cleanliness and dishwashing.

Chef
Assist the head chef in preparing food. Check the quality of raw and
cooked food products. Involve in developing menu together with head
chef.
Kitchen Staff
Helping the head chef and chef to prepare ingredients that will be used
for cooking, check the deliveries of fresh food and all the ingredients
for quality everyday, and ensure the cleanliness of kitchen including all
the equipments and utensils.

Waiter / Waitress
They serve customer from they come in and leave the restaurant. List
the customer orders and deliver the orders to customer. Clean up
the table when customer leave. Waiter and waitress greets and serve
every customer. They have complete understanding of menu items and
explain it to customer if they have any question.
Cashier
Responsible for taking payments from customers, making change, and
giving receipts. They answer telephones and take reservations for seat.

37

Cost
Product items
Product Items

Cost per
month

Utilities

$ 3.200

Rent

$ 18.000

Salary for
all staff

$ 23.562

Raw Materials
Advertising

Cost per
month

Office Supplies

$ 250

Telephone Fee

$ 250

Printing

$ 200

Internet

Uniform

$ 400

$ 10.000

Insurance of Fire

$ 300

$ 5.000

Halal License

$ 975

99

Chief
Executive

ORGANIZATIONAL
STRUCTURE

Business/
Development

Franchise
Manager

Operation

Marketing
Manager

Branch
Manager

Human
Resources

Finance
Manager

Supervisor

Training
Manager

Accountant

Service
Staff

Trainer

Chief
Executive
Chef
Business/
Development

Operation
38

Staff

Branch
Manager

Marketing
Manager

Chef
Staff

Human
Resources

Finance
Manager

Trainer

Accountant

R&D
Manager

Staff

Staff

Kitchen
Staff

R&D
Manager

Staff

Organizational chart illustrates the composition department in the next 3-5


years, both in the restaurant business and operations itself. We are starting the
business with a simple chart for the operational part. We only have a Branch
Manager along with his staffs, Finance and Human Resources. Marketing part was
just the standard, to prepare and administer the purposes of advertising for this
restaurant.
Along with the development of this restaurant, we will expand by adding more
staff and establishing a Research and Development (R & D) department to
develop new recipes together with our chefs.
Brand franchising is targeted in 3 to 5 years time. At that time, franchise
department will be formed to organize and direct the franchising.

Kitchen
Staff

Service
Staff

39

FINANCIAL
BUDGET

Breakeven Analyis
Jan - Jun
2011

---

Tangible Assets
Tangible Assets
40

Jul - Dec
2011

Jan - Jun
2012

Jul - Dec
2012

224.500

Equipment and
Office Automation

4.650

Kitchen Equipment

33.630

2011 IMC Plan

200.000

Total $

462.780

Jul - Dec
2013

Total

Sales Turnover

211.332

359.264

538.897

808.345

1.050.848

1.261.018

4.229.704

Variable Cost

336.541

399.463

455.532

547.594

577.273

681.060 ( $

2.997.463 )

1.232.241

Cost

Renovation

Jan - Jun
2013

This is the estimated amount of revenue and expenditure in


general. After 3 years running our business successfully we will get
the desired profit of amount $ 1,232,241.

Initial Capital and


Fixed Assets
Cost
Balance Working
Capital

650.000

($

462.780 )

187.220

We started up our business with an initial capital of $ 650,000.This money will be


spent to cover various initial expenses such as renovation cost of that selected
place,buying restaurant equipments etc.Among the whole amount according
to our IMC plan we are spending in the first year(2011) $ 200,000 for marketing
expenses. The remaining amount of the initial capital i.e $ 187,220 can be used to
cover the lack of running business within the first year.

Profit & Loss


Although we suffered losses up to $ 165.408 in
the very first year, but still the loss amount can
be covered with the rest of the initial capital.
But starting from the second year (2012), we will
started gaining profits from the sales.

...
Sales Turnover

2011
$

2012
570.596

Variable Cost

($

736.004 ) ( $

Profit ( Loss )

($

165.408 )

2013

1.347.242

2.311.866

1.003.126 ) ( $

1.258.333 )

344.116

1.053.533

41

MILESTONES

Breakeven Point
2.5 years
Total Sales Turnover
2.5 years
Total Variable Cost

2.968.686

($

2.316.403 )

650.000

Initial Capital
Breakeven $

2.283

After 2.5 years our total sales turnover is estimated


$ 2,968,686. After 2.5 years of running business the
estimated total variable cost will be $ 2,316,403. We will
get our expected gross profit after subtracting the total
variable cost from the amount of total sales turnover $
652,283. If we again subtract the gross profit amount
from the initial capital $ 650,000 we can able to get our
break even amount $ 2,283.

1st year
(2011)

2nd year
(2012)

3rd year
(2013)

4th year
(2014)

5th year - ...


(2015 - ... )

Prelauch

Establishing
Brand

Establishing
Brand

Establishing
Brand

Expansion

Location

IMC
Promotion
Special event
Brand awareness

Expansion of Business
Department

Expansion of business
(2nd outlet)

Franchise
Location
Selling Structure
etc.

Return On Investment
42

...

2011

2012

Initial Capital
Profit ( Loss )
ROI

2013

$ 650.000
($

165.408 )
-

344.116
47%

1.053.533
62%

Sourcing for supplies


Ingredients for
product
Condiments
Budget/Costing
Finance
Organization Planning
Staff Employment
Developing Food Menu
Investors
Planning for IMC

Expansion of
Operations Department

Expansion of business
(more outlets)

43

CONTINGENCY
PLAN

APPENDICES

Lack of Income / Target Audience Doesnt Being Attracted


In case of having financial loss in the first weeks or month, CEO should take
responsibility whether to hire a new manager for a better store management, use
last finance to spread out brochures, start some discount or promotion coupons,
or re-face the restaurant image (logo, building color, or dishes) to get more
attraction as the last resort.
44

Negative Customer Feedbacks (Food or services)


When food matter becomes the main point of the negative customer feedback,
CEO should take decision to:
Get a new recipe or new concept of food, if taste of the restaurant speciality
itself is the negative part
Hire new chefs, if food quality is the negative part (e.g. inconsistency in food
proportion, dishes not well-done cooked, foul-taste (too salty, too sour, too
sweet, etc)
Get new food suppliers, if ingredients quality is the negative part (toughmeat, reek meat, unpleasant taste of meat or veggies)
When Service matter becomes the main point of the negative customer
feedback, CEO should take decision to:
Fire unmannered waiter/waitress, if they are impolite to customers, to show
strictness of restaurant rules to the rest of the worker and hire the new one
Re-train waiter/waitress, if they get too much errors in taking order
Swap cashier person with someone who is better in math, if there are always
false count of money
Fire lazy waiter/waitress who dont want to serve customer who just come
in to the restaurant or behave improperly in front of customers while taking
orders or on standby.

Losing Against Neighbour Competitors


When it comes to this matter, action that should be done before too late is to
change restaurant location where there are fewer competitors.

Accident
Following are nasty accidents that may take casualties, caused by human
negligence:
Gas tank explosion
Short-circuit
Burning building caused by external factors
In this case, company should close for some time while repairing the building
and refurnish it. As this takes a lot of company budget, if the fund is really low,
company may like to open in other place in a smaller building to re-gain the loss.

Internal Problem : Corrupt Employee


Expel will be applied to any rank of employer in the restaurant company that
shows incompetency in the workplace. The instant punishment includes this kind
of incompetency:
Time corruption (up to 10 times)
Company Financial corruption
Bribes (giving and receiving)
Harassment towards other employee
Threatening other employee

47
59
65
81
89

45

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