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AA Project OnDesigning a food cart

Course Title:MKT 344

Prepared for:Tasmia Ekram (TsE)Lecturer, School of BusinessPrepared by:

NAME IDAshraf Hossain 1220 320 030Md.Mozammal Hossain 1220 774 030Sumaiya Jamal 1130 721 030Nazmul Haque 1210 598 030Faisal Golandaz 1210 803 030

Date of Submission : 27-Dec 2014Introducing....... Puzzle Love at first bite

Executive Summary

This project on Food cart business planning is the part of consumer behavior (MkT344) course requirement. As we are the students of Business studies the report is very helpful for us as the report is giving an overall idea about the food cart business.

In this report we have shown how our food cart can be profitable. Then inside we have discussed about the Ideas of our business, design, and positioning, marketing mix. Then, we try to make a financial analysis on our costing. And finally we have shown our survey analysis with graphs. We have tried to explain the whole business process.

At first we have shown the Ideas which contains our mission of starting this business.Then, we have shown Positioning, Marketing mix, competitive review, market segmentation step by step.And at end of the project we try to give some graph so that you can understand our location and price selection system.

IntroductionA food cart is a mobilefood serviceoperation that generally offers various types of fast food to walk-up customers. It may also be referred to as a mobile kitchen, a food booth, or a foodkiosk. This type of street food is a popular staple in many cities around the world and is rapidly spreading to other locations due to its convenience factor, and the fact that it often represents a great way to get local relatively inexpensive food rather than visiting a chain fast food restaurant. The cart may be self-propelled, as in a food truck or it may be towed by another vehicle. In many cases, a food cart will only offer one particular type of food. Some might serve a few different types of foods, more similar to a rolling restaurant or bakery than a simple hot dog stand. Food carts exist for any meal of the day, with different ones offering selections for breakfast, lunch, and dinner. In many cities, food carts are becoming an integral part of street culture. A food cart often represents an excellent and lucrative business idea. Operating costs are fairly low, and only require the purchase of the food cart, the ingredients for preparing specific dishes, and paying a limited staff; many cities will also require the vendor to purchase a license. This allows them to find built-in clientele without a great deal of advertising costs or effort. Food carts are often found almost every street throughout the Dhaka city and can be found selling food of just about any variety. Food carts come in two basic styles. One allows the vendor to sit or stand inside and serve food through a window. Another uses all of the room inside the cart for storage and to house the cooking machinery, usually some type of grilling surface. The cart style is determined principally by the type of food served at the cart.Ideas We are going to open a food cart on the basis of few ideas. We are making those ideas as our main target that you are going to provide to the customers. Some of the ideas on which we will focus are given below: Offering healthy and fresh food: In recent times, consumers are becoming more health conscious. Before choosing any food item, they look for the foods which are beneficial to their health. Based on these ideas, we are focusing to serve them healthy food. We will serve fresh food to them. Basically, we will prepare food after we get order from the customers. We can assure them not to add any types of preservatives, chemicals or anything which will be harmful to their health. We will use plastic coated transparent large box so that we can keep the food fresh, hot, crispy and out of dust that are coming from road. Providing sound environment: people want sound environment while eating foods. Customers prefer to eat food in the sound environment rather than in a noisy place. So, we will try our level best to provide an environment which is free from sound and dirt. As we are forming our business beside the road, it will be difficult for us to maintain. But if we can provide a room surrounded with glass behind our cart hopefully it is possible to decrease the sound and noises coming produced by vehicles. Providing real taste of the food: Our aim will be offering fresh and healthy food to the customers. For that reason we are avoiding preservatives or other chemicals to keep food fresh and look appealing to the customers. That is why we very much confident to provide the real taste of the food to customers. Serving standard foods at a cheapest rate: We have made our food menu by considering the cost. Because if we dont provide the food at cheap rate. So why should a customer go to a food cart rather than going to a restaurant? By keeping this in mind we will provide food as lower price as possible. At the same time we are also going to focus on the quality of the food. Positioning A company/product/brand must have positioning concept in order to survive in the competitive market place. In Marketing, Positioning is the process by which marketers try to create an image or identity in the minds of their target market for its product/brand/organization. Our main competitors are Candy flaws and Get food. Both are situated in Bashundhara. Some of these food carts can provide good quality product. Maximum food carts do not take advertising or other sales promotion. People learn about those food carts by their name and those names spread among people through their friends, family members or other social group. As we are running a food cart business, our budget is very low. As a result, it will not be possible for us to spend our money for advertising and other sales promotion. So, we have to focus on freshness of food which will very healthy for our customers and sound environment as well in order to make positioning in the mind of the customers.

Target Markets: We will open our food cart in Bashundhara with a margin aiming to serve: Mainly University Students School & College students People working in G.P houseSegmented Target Market: Geographic: Geographically, the target market of food cart should be specifically those areas where there are enough college and university students and it should be nearer for our target market. The total targeted population is estimated to be around approximately 1 lac students scattered around the Bashundhara, Uttara and Baridhara . Demographics: Ratio of male and female consumers should be 1:1 Age: 16- 25. Behavior Factors: For people who wants to lead a healthy life For people who are health conscious.Market Needs: Quality: All products should be given topmost priority and all it should be fresh all day long and to maintain its quality, it should be stored in a cool place. Well-Thought out designs: The packaging should be user friendly and also portable.

Competitive Review: Competitor analysis is essential in building up a marketing plan. Before making a business plan it is very important to know who the competitors are and what is there competitive advantage and pricing strategy by which they attract target customers. A good analysis on competitors gives a better idea about generating strategies for the business. To make a successful marketing plan for our business, we also need to do a competitor analysis because if we look at the target market for our business and the market positioning, we will find out that there are a lot of competitors around for our type of business which is a food cart for people with mid-level income. An analysis on these competitors will help us to move further in our marketing plan. A competitive review is given below:Get food: Get food will be our main competitors. They are specialized in Luchi, Beef chap, Chicken chap, Fried rice, chicken tikka, Hot dogg. They provide good quality foods along with beverage. So our target will be to offer quality foods at a cheapest rate from them.Marketing MixProduct:Breakfast & Lunch item Burger, Hot dog

Snacks Item (available at afternoon and evening) Burger, French fries, Hot dog

Price:01. Regular Burger.. 75tk02. Beef Burger 120tk03. Chicken Burger.. 150tk04. Chesse Burger.......................... 180tk Extra patty 50tk05.Hot dogs. 80tk06.Chicken Ball... 30tkPromotion: We have a very simple promotion strategy for our restaurant which is also very cost efficient. We will print some handbill which we are going to distribute among students in front of their schools and colleges. These schools and colleges are near to our restaurant area. We will also distribute our handbill with newspapers in Bashundhara, Baridhara & Uttara.PlaceOur food cart will be located at Bashundhara, near the G.P house. We choose this place for the convenience of our target market. It is easier for people coming from Uttara and Baridhara.

DesignWe will sell our foods in a mobile cart. The food will be stored in a plate surrounded by glass.There will be food sticker along with price at the top of our cart.

Financial AnalysisFixed Cost

Cart125000tk

Box carries 2000tk (200*10)

Mini fridge 15000tk

Oven 12000tk

Disposable plates 6000tk (2000*3)

Portable power source 12000tk

Others 25000tk

Total 197000tk

Cost of production per day

Regular burger1125tk (75*15)

Beef burger1800tk (120*15)

Cheese burger2700tk (180*15)

Chicken burger2250tk (150*15)

Hot dogs 800tk (80*10)

Chicken ball 300tk (30*10)

French fries 500tk (50*10)

Soft drinks 700tk (35*20)

Total= 8575tk

Total(per month)=257250(8575*30)

Revenues: Cost of production per day

Regular burger2250tk

Beef burger3600tk

Cheese burger5400tk

Chicken burger4500tk

Hot dogs1600tk

Chicken ball 600tk

French fries1000tk

Soft drinks1400tk

Total= 20350tk

Total(per month)= 610500tk (20350*30)

Revenues generated per month: 610500tkCost of production +Cost of business: 64500+257250=321750tkTotal profit per month :( 610500-321750) =288750tk

SWOT Analysis Strength Customized menu: We will offer a customized menu according to the customer choices. They will be able to choose their service model. There will be service model like quick causal service, causal dining table service or take out. The customer will feel more flexible because of the options available in our restaurant. The Location: The location is very suitable for the customers. Especially the young people who are our target market. Our food is located in the Bashundhara area. We will get attractive customer base, which will help us to increase our sale. Staff: The staff will be very well trained, efficient. They will have very good communication skills. They will strive to please the customer.

Weaknesses: Our focus is based on the local market. Limited proportion of expenditure budget is allocated to overseas advertising. A limited marketing budget made it difficult to use other effective marketing tools such as TV, Newspapers, and Magazines to develop brand awareness.

Opportunities: Offering Caf Menu: we can offer caf menu. It will attract our customers for nice caf food items as well. Family Friendly Atmosphere: The atmosphere of our food will be very family friendly. It will be a place where families can come together. It will be a very family friendly environment. Unique type of food Decorate the place

Threats: Few food carts are moving into the Area: Few food carts are opened in the same area. It can be a threat to us. No high fixed cost is attached to our business. So, it is easy to entry and at the same time easy to exit from the market. So a competitor can always come into the business.

Prices Increase Food: The food pricing are rising day by day. If it keeps on rising we may not be able to serve the food at the same rate. And our market may get smaller because of the increased food prices.

Keeping Trained Efficient Staff: After building the efficient and trained staff it is always a challenge to keep them. The staff may be lured to a better wage and better incentives.

Economy: People may get laid off and stop eating because of the economic fall. They may spend less money on eating out which will be a threat for our business.

ConclusionIn this project we planned start a food cart in Boshundara RA. We do survey for this project inside NSU capous. Duget, design, pricing and location all thiese things are as per the market demand. we think htere is good opportunity for us to longe a small business in this area with in a little budget. Many students live in this area as we know look for chief price it may give them an opportunity not to walk. This industry is at growth stage whic may help us earn maximum profit. It may help us to be self employed not to look for partime job. As per the consumer demand we empahasise on both price and test of food. This project should have an impact to be a future entrupnier. Whether you are a home based foodie who is interested in taking their food at home we would say that do not waste your money and affort take a burger from our food cart and "Love at first bite". we are hopefull that we may have successful profitable food cart.

Survey Question 1) Where do you reside- A. Bashundhara B. Uttara C. Baridhara D. Others2) You are _______ Student- A. Undergraduate B. Graduate3) What is your employment status - A. Part-timer B. Full-time C. Self employed D. Only a student4) Do you like to go to food carts- A. Yes B. No5) What's your thought regarding food carts- A. Food cart is not in a convenient place from where I live B. The foods are not fresh C. I dont like the taste of the food D. I dont like the environment E. I would rather say no to food carts6) How many days in a week do you visit to a food cart- A. 1-2 days B. 2-3 days C. 3-5 days D. More E. Never7) With whom do you prefer to go to food cart- A. Family B. Friends C. Boyfriend/Girlfriend D. Others8) When do you prefer to have food outside of your home- A. Breakfast time B. Lunch time C. Evening D. Dinner time

9) How much money you would like to spend at a food cart - A. 25-50 Tk B. 50-75 Tk C. 75-150 Tk D. 150-More Tk10) What foods are popular in your area?(If others, please write)- A. Biriyani B. Chicken Polao C. Hotchpotch D. Fast food E. Chotpoti-Fuska F. Others __________11) What foods are potentially cost effective for you to buy- A. Biriyani B. Chicken Polao C. Hotchpotch D. Fast food E. Chotpoti-Fuska F. Others __________12) Most of people think that street food is always unhealthy and harmful- A. Strongly Agree B. Agree C. Neutral D. Disagree E. Strongly Disagree

13) If food cart were located nearby,I would like to go and order some food there- A. Strongly Agree B. Agree C. Neutral D. Disagree E. Strongly Disagree14) It depends solely on the price of the food whether I would buy foods from there- A. Strongly Agree B. Agree C. Neutral D. Disagree E. Strongly Disagree15) I like experiencing and trying some new and exotic food- A. Strongly Agree B. Agree C. Neutral D. Disagree E. Strongly Disagree16) I am very careful about what I eat- A. Strongly Agree B. Agree C. Neutral D. Disagree E. Strongly Disagree17) I like to taste new foods before my friends do- A. Strongly Agree B. Agree C. Neutral D. Disagree E. Strongly Disagree18) Price is very important when choosing breakfast or lunch items when eating outside- A. Strongly Agree B. Agree C. Neutral D. Disagree E. Strongly Disagree

Survey result analysis

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