Wok to Walk: Marketing Plan Proposal

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Executive Summary

This paper attempts to prepare a complete marketing plan for the purchase of a franchise of a small fast-food chain named Wok To Walk. Franchising is a method of marketing products and services where the franchisors grant the franchisees the privilege to carry out business in the name of the franchisor. The franchisor imposes obligations that the franchisee has to follow in the franchising business. There are different types of franchising like manufacturing franchising, commercial franchising, service franchising, etc. The concept of Wok To Walk franchising we are planning to acquire is mixed franchising where franchising is acquired for both the products and services. Wok To Walk started as a totally special proposal in the fast-food industry. Geneva in Switzerland is the location selected for franchising Wok To Walk. Geneva is a popular location in Switzerland where the business model of franchising if practiced would be feasible. The feasibility study carried out in Geneva in Switzerland for Wok To Walk franchising is profitable because Geneva is a popular location in Switzerland. The paper discusses the situation analysis, market segmentation, target market, marketing research, marketing mix, implementation and control. The paper also discusses the financial plan including sales forecasts, marketing costs, break-even analysis, and margin of safety.

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Situation analysis

Situation analysis is an important part of the marketing plan of Wok To Walk. The situation analysis in Geneva in Switzerland helps in analyzing the conditions of the industry. The economic environment of Wok To Walk can also be understood using this. Customers, competitors, costs, etc. are some of the factors that are considered while performing the situation analysis of Wok To Walk. In the Wok To Walk sector, the demands of the customers, their satisfaction, economic impact, etc. are very important for situation analysis. The situation analysis will help to set up the extent and activities of the food industry. Knowing the requirements of the visitors will help in collecting the necessary information that can be used in the future. Wok To Walk provides fresh and delicious food to the customers. Quality food is provided at the fast food outlet and contains items of all ranges from simple to complex. Competition from the competitors can be a problem for the company. New goods and inventions can attract customers in Wok To Walk. Wok To Walk tries to obtain a large turnover using less number of staff. The locations of the fast-food restaurant have been cost-effective. Here the location is Geneva in Switzerland. In this restaurant, the customer can select the food in their choice that is according to their taste and likes. The food is preparing in front of the customers so that they can prefer the quantity of the ingredients putting on the plate. They are ready to prepare the food for the customer at their need at any time moreover the food is available at a reasonable price. As it obtains the food items very freshly in this restaurant always there is very rush here. Wok To Walk provides good and fast service to the customers.

Marketing Objectives

Franchise means a permit that allows a person or a business to purchase products or services of another company. Several policies have been implemented to maximize the promotion of the fast-food business to the proper markets. The objectives should give supervision for all decisions which includes capital, human resources, and market promotion. Equally important is the objectives must be assessable statements as to what the business wishes to achieve within a certain time. The different marketing objectives of Wok To Walk are:

  1. Finding out target markets.
  2. Knowing the demands of the consumers in the fast food services.
  3. Making the consumers aware of the marketing offers in fast food service industry.
  4. Selling the foodstuffs which are of superior quality
  5. Keeping the customers happy with different varieties
  6. Customers are allowed to choose their own meals by walking into the kitchen.
  7. To provide plain and mouth-watering meals to customers.
  8. To supply food at reasonable prices for all customers.
  9. To adopt such marketing measures which are cost-friendly.
  10. To obtain the franchise at a reasonable cost.

Marketing objectives of the fast-food outlet were determined while buying the franchise of the Wok To Walk in Geneva in Switzerland. The objective was to cater to the customer’s needs and tastes so that the franchising business is a successful venture. The main objective was to influence as many consumers as possible because the company already has goodwill and so the need was to maintain it and develop this franchise of Wok To Walk for better business.

Market research

The idea of Wok To Walk is a really special proposal in the rapid service market. The food offered by Wok To Walk is very clean, delicious and, healthful foodstuff and it is cooked before us and serves within a small time. It is an emerging field so a lot of competition has been facing. Marketing research is an essential part of every organization. It helps to understand the particular marketing condition faced by the food industry. Every organization possesses a research department to carry out the research activities as well as for getting knowledge about customers’ perception about the product in the target marketplace. It consists of the regular recognition, gathering, examination, and delivery of knowledge for making judgments and awareness about the target market. Proper market research helps to identify the target group Geneva in Switzerland. Customers play a major task in marketing research. Marketing research activities help to understand and forecast and identified the trends in the market. Market research for the Fast Food Industry needs to find information on the various methods of the delivery of services. Such as chain café, home delivery, online purchasing, internet purchasing, etc.…and also it is necessary to collect information regarding the segmentation of the market, size of the market, and expansion of the market in the US, UK, and other international areas. Family internet users are emerging so the demand for online purchasing and internet purchasing increasing most of them are prefer to purchase the services on this basis. The market for fast food we can define as a sale of a different variety of food for our instant use. The market sizes of the fast-food industry are divided on the basis of the whole guests by the persons to the location of the fast-food services destinations. It also occupies the use of fast food by the individual as well as the numerous purchases by particular visit. Sometimes the individual may purchase any kind of drink along with the foodstuff on the spot it is also measured as one deal. The marketing research process helps to identify the market segment for the food services as well as the marketing mix of the particular services. If any company or any persons pretend to buy any franchise for the fast-food items it is necessary to understand the needs and wants of the target market. It is necessary to understand the conditions in the marketplace before adopting any franchise over there. Because lifestyle, spending habit, etc.… of the peoples are different from country to country. Ex. US and UK peoples spend more money to consume fast food items but some of the countries are not ready to spend much money on the consumption of food items. This is the reason for America that we can see that the large level of per capita income and the high volume of usage of fast food. This will help to recognize the importance’s fast food services in the US. Different variety of food products are offered by fast-food services. Fast food services like Berger, pizza, etc… Are emerging like anything in the US and all. Before buying any franchise for the fast-food service industry it is necessary to carry out the market research process to identify the various information in the particular destination such a lifestyle, culture, customs and all.

Following steps are used for the marketing research

Define the problem and research objectives

Service organizations must define the problems in detail. Based on this, the researcher must develop the objective of the research undertaken. If the profit level of the existing service offered by the service firm is not satisfied, the firm chooses some new technique to introduce the tourism service to the target customers. The problem of the research study is related to the problem of product offering or the service offering etc… Here the problem is associated with purchasing a franchise for fast food services. Wok To Walk service industry is ready to offer small-cost products with high branding. Here customer wants to buy the franchise in Geneva in Switzerland. After defining the problem associated with the opening of a new franchise next step is to develop the plan for the further activities.

Develop the research plan

Once the problem, as well as the research objective, has been developed next task is to develop a well-organized plan for collecting information for various aspects. It is necessary to plan cost estimation and to understand the environmental conditions prevailing in the global market. Customers’ expectations about the particular product must be considered before developing the research plan for offering the products in the target market. The customer is the king of the market. So, the customer’s preference is necessary to introduce the new product offering to its target market. Customers assess the product based on its quality. So, researcher must gather data for developing the research plan. All the geographical, as well as environmental conditions, have been properly noticed before develop any research plan.

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Collect the information

It is the most important step in the marketing research process. Data are collected through both primary and secondary methods. The survey method is also used to collect information to getting knowledge about customers in the market. We use mainly secondary data source that helps to know the buying behavior and motivations of the consumers. The secondary data collection method helps us to reduce the time as well as the price need for the data collection. Information about the global Market helps the researcher to understand the buying behavior of the customer in that region. Both Primary and secondary data collection method has their own positive and negative side. Primary data is directly collected from the customer. It is collected through a questionnaire, well-structured interview, and survey method.

It will help to understand the customer preferences about the products and services so that the customer can develop the foodstuffs with the customer’s preferences. But the secondary data are which is already collected for some other purpose and is used for references. For secondary data’s journals, magazines, catalogue and all.

Analyze the information

After the collection of information from the markets, the next step is to analyze information to get relevant information. Once the data is analyzed researcher puts that data into a tabular form. This helps easy identification of the problems as well as other relevant matter necessary for the research undertaken. Cross tabulation is the widely used information analysis method. Preparation of data includes the confirmation data, coding data, controlling the data, etc.… Once the data is analyzed gives much importance to information that focuses on instant market requirements. And to see the stability of data in the present market. Data about residents in the particular region, age group, sales volume, etc.…must be gathered to get the necessary information about the choosing market.

Present the findings

After collecting the information about the given market and competition in the market provide it is in a well organized way to decision making authority of the organization. The entire research process will become a waste if a finding of the data analysis is not correctly presented. The research reports these findings that are appropriate to make a marketing decision. All the steps in the marketing research process are related to each other so if any small mistake in any of these steps will affect the entire marketing research process. Gathered information assists the decision-maker to make a good decision. So, it must be easily available and explicable to the authority of decision making. The fast-food industry requires to geographically place themselves. Moreover, the customer should visit desired places and find out the limits such as rivers, transportation facilities, etc.…

The Social Status of the desired location is to be identified before adopting the franchise over there.

Market segmentation

Market segmentation for the fast-food industry has benefited both providers and purchasers. It will help to help to increase customer loyalty as well as good Followings are some of the ways used to segment the market. “The market is broken down into four segments: Quick Service Restaurants (QSR), Takeaways, Mobile & Street Vendors and Leisure Locations” (“Fast food global industry”) QSR provide meals without any table services so that the customers can visit the places and consume their food items. Takeaways are another type of segmentation that offers newly arranged fast food items for instant use so the type of segmentation helps to a good amount of revenue. Mobile & street vendors’ segmentation provides foodstuffs with individual halt or offers the less amount of food through a vehicle. Leisure locations offer food services for current usage with the capacity of the spare time channel like movies; pictures…

Market segmented the following ways also. A market comprises of consumer’s heterogeneous group. It is important to identify consumers who possess similar needs and wants and group them. Segmentation of the market is one of the accepted methods to achieve market with service enclose. Every market consisting of people with different traditions, the standard of living and fiscal environment. So, the segmentation is a process of isolating diverse marketplace into a segment. Service organizations must be segmenting their marketplace before providing services to their target market. Collection of the correct basis for isolating the market is very much necessary. So, the service organization will consider the following areas for the market segmentation. Such as service uniqueness, the necessity of facilitating the particular service, monetary and other property for the collection, etc.… segmentation of the market arranged on the basis of customers replies and customers personalities. The personality of the customer is associated with its geography (marketplace separated on the basis of nation, provinces, district, etc.…) demographic (marketplace separated on the basis of maturity, family unit, revenue, job, etc.…), and psychographic area (marketplace separated on the basis of significance, faith, the character of a person, etc.…) customers reply is associated with the excellence, worth, connection with the services, etc. In fast food, industry Wok To Walk Geneva in Switzerland is segmented on the basis of socio-fiscal category, geographic category, demographic category, and psychographic category. Socio-fiscal category of the visitors decides their expenses behavior. So, this perceptive we can buy the franchise that area enclose to match the requirement of the diverse segment in the marketplace. Ex. some persons are spending more money on fast foodstuffs while others spend money on household items. Segmentation on the basis of demographic category consists of raising the tour activity on the basis of gender, job, approach in the target market, etc.… Segmentation on the basis of geographic category consisting of the places that the target marketers are interested to visit for consuming fast food items. It means if the particular location is attracted by the customer, they are more interested to visit over there again and again. Segmentation of the fast industry on the basis of psychographic category means to split the market on the basis of the character as well as the life pattern followed by the visitors in the market. Some people are more interested in consuming food so such persons are given much importance’s visit the places like Singapore and all to consume the foodstuffs.

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Target Market

The fast-food business can succeed only if the number of consumers increases. Here the location of the fast-food industry is Geneva in Switzerland. Target market means finding out the entire set of potential consumers from the entire inhabitants, which may constitute several sections, and then gratifying the desires and requirements of each section. Changes have to be brought in the marketing approach. Conventional marketing ways have to be replaced by modern approaches. Fast food business for opting the new franchisee in Geneva in Switzerland is targeting young children because they consist a significant demographic to them since they possess a high purchasing power and they control the buying powers of their parents’ judgment to buy certain products and they are going to become the future generation consumers. The fast-food business is spending a large number of finances on advertisements for children. In the present days, parents don’t mind spending a huge amount to buy new products for their kids because of the system of nuclear families and double incomes since both the parents are working in most of the families. The goods and services have to be planned according to the desires and requirements of the customers. Business promotion is powerfully based on market segmentation and target marketing. Market segmentation is a method wherein, the present or potential customers are taken and put into different groups with like tastes, named as market segments and the most hopeful section is called target market and creating strategies that can convince the special desires of the target markets. There is no single method for dividing markets into different segments. The criteria for dividing markets may be the age of the consumer, locality, demography, way of life, etc. While finding out the target markets, concern must be given to present and upcoming probable sales of every section, the sum of competition of each section, the capacity to convince each segment, the price of servicing, and the section’s role in achieving the overall business objectives. Marketing aims that add to the achievement of the general industry objectives should be recognized for all target markets. The objectives must be in quantitative language, should indicate the target market, and must also point out the period within which the goals must be attained.

Marketing mix

Product

The food offered by Wok To Walk is very clean, delicious and, healthful foodstuff and it is cooked before us and serves within a small time. The product offered is rice noodles, egg noodles, different varieties of juices (pineapple, apple, orange, etc..,) hot sauces and all. Various types of services are also offered to its customers. (Home delivery online purchasing etc…) All these products and services provide various competitive benefits. The first advantage is that it offered a product with more cheese contents and using fresh ingredients. Another advantage is that it is target to both youths, children’s and middle-income groups. Services mean anything which capable to satisfy the basic need of the individual. Each product comprised a bundle of attributes which are connected to if any new product or services is provided in the target market it is necessary to consider the customers’ outcome, management of communication, type of service is offered, service offering facility, etc… Marketing research helps to get a basic idea about type as well as the quality of service /product expectation of the consumers. The term product is often associated with the product mix. It is necessary to concern all stages of the product or service undertaken like the introduction phase, growth phase, maturity phase, and all so that it will help to solve all the problems associated with each stage.

Promotion

Promotion of any product /service represents the various view of communication in the marketing activity. Promotion in the case of service is different from the promotion activity of the product. It helps to generate positive as well as negative reactions to the product. The fast-food industry is mainly promoted through Publish Media, TV, broadcasting, internet, leisure program, etc.… Publish Media comprise ad in a news term paper, magazine, etc.…these ads provide the various information regarding the type of services as well as the product by the destination of the fast-food services. Promotion through the TV media consists of the ad through different states and global channels. This type of organization is usually bound with various tourist places. Promotion of the product offered by the fast-food industry is to be decided on the basis of strategy related to improvement, publication, sales improvement, etc… Therefore, a good promotion strategy should be adopted to give an idea about the product in the target market. A proper promotion strategy should be adopted to capture the customers or to generate a positive reaction about the service in the mind of the target customers.

Place/distribution

The place is adopted in this marketing plan is Geneva in Switzerland. It is one of the important marketing mixes of the product because the success of the product and services offered mainly depends on this. Wok To Walk mainly serving products through the straight channel. This will help particularly big markets attract more customers. Home delivery, online purchasing, internet shopping, etc… Are the other types of distributions adopted by the Wok To Walk-on line shopping help to attract more customers particularly women’s and all.

Pricing

Price of the fast-food industry product and services is determined by subsequent to the cost occupied are analyzed together with the concealed expenses, the profits level of the possible consumers in the marketplace sector, the number of competitors obtainable in the segment market. The price of the fast-food product comprises the asset made in the developing fast food industry. Pricing is one of the marketing mixes of the product which influence purchasing decision process of the consumers pricing of any product to be undeniable to the consumer. Many of the time consumers of the product connect the price of the product with its quality of the product. So, we can see that price of a particular product is largely depends upon its quality. If the firm sells its product at a high price it helps the firm to make huge earnings in a small time like if the firm sells its product at a lower price it leads to fighting with the competition. The organization can also fix the price of the product on the basis of the demand in the given target market. Price discrimination is one of the important factors affecting the profitability of the firm. Some of the seasonal times food is offered with less price it is on the basis.

Implementation and Control

Gantt chart

The Gantt chart is also known as the bar diagram. This chart helps to demonstrate the plan for the project undertaken. Gantt chart also demonstrates the beginning and finishing time of each activity of the project. It is one of the commonly accepted methods for arranging the various activities of the project. Every firm is using Gantt charts for arranging the aim at a particular period. The Gantt charts are calculated to demonstrate the criteria that are to meet generally aim in a definite phase. Gantt chart helps us to understand the time taken to complete each phase. Gantt chart for this paper is shown below:

Task: Starting Finishing
1 Idea Generation 03.03.2010 06.03.2010
2 service selection 06.03.2010 18.03.2010
3 Protecting the service ideas 18.03.2010 30.03.2010
4 Business analysis 30.03.2010 18.04.2010
5 service expansionto other areas 18.04.2010 29.04.2010
6 Commercialization 29.04.2010 05.05.2010

Responsibility matrix

The team has put in total efforts in discovering a method for providing services to the target market. Resources were discovered and searched for the project. Human resource safety measures were also considered. The new product development process (idea generation, screening, etc.) was properly done in the responsibility matrix. The main reason for this type of matrix is to recognize early on the duty of the persons who will be assigned to do the assured portions of actions.

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It is one of the major tasks at the time of making the market plan.

Resources and Assignments Start Finish
Project Manager 03.03.2010 05.05.2010
present industry practice 03.03.2010 04.03.2010
plan for Questionnaire 04.03.2010 08.03.2010
appearance of findings 16.03.2010 17.03.2010
Human resource Plan 17.03.2010 23.03.2010
interactions plan 23.03.2010 01.04.2010
stage evaluation 01.04.2010 02.04.2010
Post execution evaluation Report 19.04.2010 21.04.2010
Project Planning Head 03.03.2010 05.05.2010
Interviews 03.03.2010 05.03.2010
planned Questionnaire circulated 09.03.2010 10.03.2010
assembly Questionnaire information 10.03.2010 11.03.2010
Summary 11.03.2010 16.03.2010
WBS & Gantt Chart 17.03.2010 23.03.2010
Phase Review 01.04.2010 02.04.2010
Post execution evaluation Report 12.04.2010 15.04.2010
Project execution Head 15.04.2010 17.04.2010
Phase review 26.04.2010 29.04.2010
Financial Plan 29.04.2010 02.05.2010
Risk Analyst 17.03.2010 23.03.2010
Risk plan 17.03.2010 23.03.2010
Training Team Member 1 17.03.2010 30.04.2010
appraisal of possible candidates to be trained 17.03.2010 28.03.2010
carry out Training 07.04.2010 30.04.2010
Training Team Member 2 17.03.2010 30.04.2010
grounding of training unit 07.04.2010 27.03.2010
carry out Training 07.04.2010 30.04.2010

Summary

Wok To Walk is an emerging fast food industry and it offers different variety of food to increase the trade as well as to attain more customers. The success of this industry is mainly through its promotion mix and the target customer. The business must pay attention to the people who wish to accept their services rather than focusing on the whole population and must expand marketing activities that will help to attain their industry objectives. Changing lifestyles of the people have to be considered while developing services. Wok To Walk offers a wide variety of foodstuffs fresh ingredients. The food offered by the Wok To Walk is very clean, delicious and, healthful foodstuff and it is cooked before us and serves within a small time. Before opening a franchise in any of the areas it is necessary to conduct marketing research and also to identify the target market for the successful delivery of the services. Therefore the franchise purchased in Geneva in Switzerland would be beneficial.

Importance of financial plan in Wok To Walk

Financial planning is a must for all organizations. A financial plan is done to prepare a budget in which the finance needed for various expenses are allocated and arrangements for the receipt of revenue from possible sources are judged. A fast-food outlet like Wok To Walk provides both products and services. The task of financial planning is dependent on various factors like the assessment of the business environment of the industry. The financial plan should be developed keeping in mind the available resources to the firm and also cost of each of the resources should be identified. The risks associated with the business should be kept in mind while preparing the financial plan. A franchise that is buying the franchise of Wok To Walk needs to consider some very important aspects. Some important aspects which Wok To Walk franchise has to offer are that the franchisee will have to conduct the business of the fast-food outlet smoothly in a simple manner. For acquiring the franchise of Wok To Walk the franchisee will have to maintain the cost of food at low prices while ensuring the supply of fresh quality food ingredients. The franchisee doesn’t need to have prior experience in handling a fast food outlet. The franchisee has the liberty to use their own financial ideas to promote the growth of the fast-food chain and has complete freedom in decision-making. The franchisee has to pay the Wok To Walk franchisor three types of fees at the time of buying a franchise. For acquiring the right of marketing goods and services of a franchisor an entry fee should be paid by the franchisee. The entry fee paid is dependent upon the location where the franchisor grants franchising rights to the franchisee. The second type of fee is in the form of royalties which is for the backing provided by the franchisor in the form of advice etc. The third type of fee is in the form of advertising charges which will be beneficial to the whole industry and can be used in brand promotions etc. The cost of franchising a business is very less than starting one’s own business so franchising is a very profitable business venture. The estimated budget is $200,000 for the project. The entrepreneur puts in an initial investment of $100,000 and the rest he plans to arrange through a business loan. Borrowing is required in the franchise business for the purpose of acquirement of the business site and maintenance of the premises like renovations etc. loans can also be borrowed for the purpose of maintenance of inventory, stock, etc. A franchisor guides a franchisee in the procurement of bank loans and provides the necessary help. It is difficult to forecast the earnings of a franchise deal without considering the location and the competition in the market. In the financial plan, the period-wise productivity chart and operating profit chart should be prepared for a better understanding of the Wok To Walk franchise. The bills of the Wok To Walk should be carefully verified and revenue management practices should be implemented. A summary of start-up expenses needs to be prepared while buying the franchise of Wok To Walk. Purchase of food materials, payment of employee salaries, advertising, etc. are also costs that need to be taken care of in purchasing the franchise of Wok To Walk in Geneva in Switzerland. Since Wok To Walk has a success record in other parts of the world like the UK, USA, therefore, the new franchise purchased in Geneva would be beneficial. Financial planning in Wok To Walk starts from making arrangements for the availability of capital investments for the premises of the food outlet, installation of new technology management information like phone and computer systems, etc.

Some Important Assumptions

Some important assumptions made are that Wok To Walk will be providing both products as well as services with products. Customers were given both of the choices and they can opt for the option which is more feasible for them. Advertisement costs will be shared by all the franchisees so much advertising expenditure is not needed because Wok To Walk has already established itself in the market. The financial projections are made for three financial years.

Credit sales are there for selected customers. The sales forecast, marketing costs, break-even chart, and margin of safety have been done on assumptions taking into consideration two menu items with service delivery. In the Excel sheet sales forecast, marketing costs, break-even analysis, and margin of safety have been calculated. It is estimated that the total fixed costs of the firm are $ 60000 and the variable expenses are according to the separate products and services of Wok to Walk. It is assumed that Wok to Walk will be employing 120 personnel at the beginning and will be providing the requisite training to the manpower. The assumption is that the entrepreneur himself will be acting as a trainer in order to reduce the training costs that need to be paid to a trainer from a training agency and he will himself be restaurant general manager. The range of the franchisee’s salary will be decided by the profits and losses in the business because he is the owner of the business. The Manpower requirement in Wok to Walk at various levels are restaurant team members (35), kitchen workers (40), delivery boys (10), customer relations executive (25), supply chain personnel (10), etc.

Works Cited

“Fast food global industry.” Barath Book Bureau, 2004. Web.

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