GlutenFree Food Truck Jenna Eastman Daniella Comito Shreve

Gluten-Free Food Truck Jenna Eastman, Daniella Comito, Shreve Cameron & Yikun Liang

Agenda Situation Analysis Marketing Goals and Strategy Marketing Program Financial Projections

Situation Analysis Gluten Free Food Truck Mobile, convenient food vendor Markets gluten free and healthy meals and snacks Quick, easy, quality food Advocates healthy eating, eco-friendly, recyclable packaging Targets customers of all ages, backgrounds especially for the health conscious and those with a gluten allergy

Industry Trends Food Trends Less cooking Baby boomers – quick and easy options Gen Y – gourmet, ethnic, spicy, adventurous palette Three meals a day with in between snacks “Prescriptive Eating” Gluten free is healthier Indicator of higher quality Helps to address hyperactivity/autism Gluten allergy/intolerance Celiac disease Technology Gen Y : early 20’s young professionals Ordering Online, instant delivery Paying via smart phones Social media A way for customers and businesses to communicate and share information Be aware of food truck timings and locations (Packaged Facts, 2011) (Sloan, 2012) (Myrick, 2011)

Resources Easy to start but difficult to maintain Truck : $30, 000 -$80, 000 Permits Food Storage “Gluten-free food truck is a great idea for a mobile food truck because there is not that many of them and healthy eating is now a trend which should attract a lot of people. ”

Five Forces Analysis Threat of Entry Low • Will not attack other food businesses • However, food businesses can be a threat if they catch up with similar trends Threat of Substitutes Moderate • Not many gluten free trucks offered • However, there are other gluten free, vegan, low calorie options elsewhere Degree of Rivalry: High • Health conscious, convenience, price right is very competitive Bargaining Power of Buyers Moderate to High • Food businesses are fighting to appeal, and attract customers • Lack of switching costs for customers Bargaining Power of • jenna put something Suppliers here TT. TT… • Moderate • Switching costs are low • Finding low prices for higher quality

SWOT Analysis Strengths Mobile Convenience Small staff, with minimal training Already prepared food Community building business Weaknesses The size of the truck, no kitchen space Only Gluten-Free offers limited options No sit down area, always grab and go No consistent location, difficult for advertising Opportunities Generation Y likes thing to be easily accessible Advertising Technology Add locations easily Many suppliers, choose prices of food “Free From” Trend, gluten-free is become very popular to those even without allergies Threats Parking Regulations Wants varying food on a day to day basis Economic recession, leading to people wanting to eat in Health Regulations Cooking Technology

Marketing Goals Expand locations; acquire three or more permits for different locations Sell 3, 000 smoothies in one year to see if this new product is profitable Break even on initial investment Expand awareness by creating a website Sign up to participate in at least five events around the Boston area

Marketing Strategy Demographics: Gen X and gen y, mostly students and workers in the urban area. Psychographics: Consumers value being healthy and have an active lifestyle.

Target Market Current Market: Students and workers in the urban area that are outside of their buildings walking around in need of a snack or meal. Potential Market: Tourists and pedestrian or future new locations; College campuses outside of the city, Cambridge, Fenway and Newbury St.

Points of Difference Gluten-Free: Meals are healthy and appeal to people with allergies. Options: People can get full meals, or just grab snacks and beverages. Small Portions: This satisfies the small portion trend, people are eating smaller meals.

Positioning Statement “For the active, urban-goers, who need a quick and healthy meal or snack, the Gluten. Free Food Truck is the place for that convenient food or beverage that will give you energy and have you feeling great because it’s made with non-gluten ingredients. ”

Marketing Program Product Strategy - A traveling truck that offers gluten-free foods - Providing quick and tasty meals & snacks - It brings convenience since it comes to you - Quick because it is located on the street

Benefit Message “The Gluten Free Food Truck is a quick, affordable, and tasty food provider that comes to you!” - Healthy Food Choice! Leaving you feeling good with energy - Giving you a cheaper/lunch snack option - Making meals easier and more convenient - Satisfying the new trend to eat smarter

Price Strategy - Standard markup pricing strategy was used to determine the price that we wanted our products to be sold at - The standard market up pricing strategy will ensure that we are pre-setting a profit margin and applying a cost to the products - After SMP was used to determine the costs of the products target profit pricing was employed in order to balance revenue and cost when setting the prices for the food truck products

Price Strategy for Smoothies Variable cost per unit (UVC): $2 Fixed costs (FC) per yr. for smoothies: $12, 000 Expected unit Sales of Smoothies: 3, 000 Desired markup on sales: 10% $12, 000/3, 000 = 4 41/1 -10% = 6/. 9 = $6. 66

Distribution Strategy: Market Coverage Strategy Mobility is a major advantage for the this new business. We are able to focus on a small area with a large customer base which will ensure that this business will be successful Being on time and full stocked for when the food rush comes each day

Distribution Strategy: Channel Design Direct customer service Marketing advantage to target several locations because it is a mobile business Targeting Longwood Medical area because there is a large target audience- college students, high school students, and business professionals

Marketing Communications: Media & Advertising Different communication mediums such as Facebook, Twitter, and other social media websites will be an affordable and efficient way to gain brand recognition These mediums will ensure that our business will get noticed via people reposting and commenting on our Facebook page and links that are related to our products Social media is a great way to advertise and market a business but other forms of advertising can also help gain recognition as well - newspaper ads, pamphlets, and direct mail will also be implemented

Marketing Communications: Trade and Sales Promotion Trade and sales promotion will lean on communication media for brand awareness Press Release to inform potential customers in Boston, specifically Longwood area Promotional deals within the first couple months of the launch of the Gluten Free Food Truck

Monitoring & Control: Goals 9/1/12 - 12/31/12 = obtain truck that is entirely equipped with all necessary permits 1/1/13 - 3/28/13 = design menu, gather ingredients, and implement social media awareness 4/1/13 - 5/15/13 = get cleared by fire department & health inspectors 5/15/13 - 9/1/13 = start business in permitted areas in the city & hire employees 9/1/13 - year 2 = update truck, update menu, continue to use social media to gain as much recognition as possible

Evaluation and Control Set goals to maintain progress Created a SWOT analysis to prepare for any threats or weaknesses that could put a halt in the business Anticipated any problems that could go wrong with the truck such as technical issues… planning ahead is key in order to prevent any upcoming issues

Financial Projections

Financial Statements Fixed Costs: $12, 000/10%= $120, 000 Total Variable Cost: 3000 x$2/(10%)= $60, 000 Total Revenue: 3000 x$6/(10%)= $180, 000 Breakeven Point Units: 2, 553. 2 Breakeven Point Revenue: $171, 064. 4