Tilt the Business towards Biscuits
Introduction
We found the solution for off season problem. Now, Big Bottom Market owners can touch the difference. By focusing on food products offered by Big Bottom Market, we found that the store menu is characterized by colorful verity of food. Especially, a signature item Big Bottom biscuits. The biscuits are home made, and credited to one of the owners’ mother who supervises personally on making them. The biscuits offered with different flavors and shapes earned the customers’ admiration and provided relatively high percentage of the store sales during the peak season. Using our competitive advantage, we can introduce our unique product to other food stores and restaurants. From this standpoint,
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Adding 5 percent discount to our cost structure will motivate new customers and keep our profit at the same level by increasing quantities sold.
Target market. We are going to target an area with different sales trend during our off season. Focus on area with positive sale trend during the fall season. For example, the American Football season starts on September to December followed by Basketball season which start on October and finish by April. Focusing on area which has plenty number of sport clubs and restaurants would enhance the likelihood to success applying this solution.
Implementation
The road map to implement this solution is described as step by step process. It shows how we can enhance our profitability, shows how our capital structure would change when we apply this method, and shows guidelines how to bring this idea into execution
Profitability. As a beginning we can start deal with five different restaurants to introduce our biscuits into their menus. Depending on available data, we can recover 60 percent of the $20,000 short in sales during the off season. In addition, we can keep distributing theses biscuits during the high season as a second source of income. According to an article based on the National Restaurants Association and Deloitte LLP report in 2010, we found that food industry profit margin represents around 20 percent of the overall sales. This means, our $20,000 sales the peak season results $4,000 profit weekly basis. The food
The purpose of this memo is to offer a recommendation in the restructuring of Interstate Bakeries. This advice has been initiated at the request of company CEO James Elesser so that he can better ascertain which option, filing for bankruptcy or seeking further mergers and acquisitions, would be the best direction to take to counteract flailing profit margins. This is an independent recommendation made from researching the company’s financial history as well as the company’s product portfolio and market segments.
Companies strive to choose not only the best marketing channels, but also the best profitable channel. A profitable channel can promote and successfully sell out of a product that might not otherwise turn a profit for their producers (New Charter University 2015). “The calculations from the cost accountant for the retail segment accounts were 60 percent of sales, and for the foodservice segment accounts were 40 percent. The cost accountant believes that both channels are profitable. The accountant also believes that the company achieves an overall average gross margin of 60 percent on its sales (Bowersox, D. J., Closs, D. J., Cooper, M. B.,
Krispy Kreme’s revenue increased every year between 2000 and 2004, from $220m to over $665m. Along with growing revenues, the operating and net profit margins also increased every year. The operating margin increased from just under 4% in 2000 to over 15% by the end of 2004 and the net profit margin increased from just under 3% to over 8% during the same time period. The ROA and ROE though the time period were relatively steady at an
Further research was required to add further value to the understanding of the UK biscuit market. A greater understanding of buyer’s behaviour is needed, and this will help to identify the segments that exist within the market.
I would encourage customers to look to the future for savings and expect a display of appreciation for their loyalty to the company with a price that cannot be beat. With our customers given 15 cents off what Fuller’s customers paid in the past over the next
Once you have made a plan of the value stream, work with the team to explore for accuracy and areas of opportunity by outlining the process, lessons learned and problems
In order to expand the business we need to do a marketing campaign to attract more customers. (Suppliers is not an issue for this marketing campaign)
The Target Marketing is generalizing segment or segments to sell a product and/or service. Companies use target marketing to reach the consumer and find certain marketing factors, which allow the company to develop a marketing plan (Prdic, 2016). Target markets are broken down just like segmentation but more specific such as: the age, lifestyle, and buyer powers. Target market is a key element in a market plan. Companies can determine the factors of a market plan from a target market such as: price, promotion, and distribution.
For London Biscuit Berhad, the net profit margin in year 2012 is 5.43% and for the year 2013 is 5.2%. This means that this company has $0.05 net income for every dollar of sales for the year 2012 and 2013. London
Instead of building a business around a preconceived concept, we conducted market research and built a concept around our consumers. Our market segmentation identified the following key drivers as areas of opportunity to serve D’Shuk Café customers with home delivery of D’Shuk Café collection of menus. The main target market is quite simple because we focusing of a regular local resident customer base. D’Shuk Café really concern and response to increased for quality food with fast service of home delivery. This is a recognition that many of the customers prefer to just use home delivery service because they do not have the time to cook themselves. Nowadays people have busy lifestyles that ask for something fast that
For this particular business Beach front lane of brownsbay is considered as great location as there is a huge foot traffic and the locality is fond of eating at dine-in places instead of eating anywhere else and also spent more on eating outside rather than cooking by themself. Thus, it is estimated that the business will grow exponentially and by creating niche market in the hospitality industry, the sale of the business during the very frst year will be over $180,000 while maintaining a gross margin of around 82%. The business will gain competitive advantage due to its unique concept and having take out and training of desserts by chefs.
• Decrease infrastructure costs by utilizing a more specialized, third-party staff. • Experience cost-savings during the 2nd year, but face increased expenditures during 1st year. • Maintain availability and performance through SLAs with the vendor. • Ensure a smooth transition through a formalized change-management program. • Mitigate risks by documenting procedures and improving employee awareness.
Implementing this strategy requires unique resources and skills. It incorporates different organizational arrangements, control procedures, and inventive systems.
The results from the data collected from 11 food businesses, using a questionnaire developed by the author to address the research question, are presented below.
Biscuit is the one of the oldest bakery snack item, consumed by all age groups. It is a product with better shelf life and one of the most liked bakery product by the urban as well as rural consumers. In India biscuit industries are pegged at 3,000 crores of which the unorganized sector accounts as much as 35 %. India is the one of the largest biscuit producer country in the world and last few years have witnessed substantial increase in the consumption of ready-to-eat snacks including biscuits (Kar et al., 2012). The growth of bakery industry is about 10 % per annum and the products are increasingly becoming popular in all sections of people (Indraniet et al., 1997). Nice eating