4. Market Distribution
Appetite Catering will distribute its service in the city by establishing outlets within the metropolitan area. To do this Appetite Catering will hire floors/spaces in 2 different areas of Dhaka. Those are Banani and Dhanmondi. There will be two kitchens, all the delivery will be made from there. Delivery will be done by vehicles to different part of city. Vehicles will be collected by purchasing and hiring. The distribution will completely depend on the orders that we will get. We will also serve people by offering food from our outlets. Anyone can have our service anytime in our outlets. Consumers who don’t have much time to have food in home will be major part of this.
5. SWOT Analysis
SWOT stands for Strength, Weakness, and Opportunities & Threats. A scan of the internal and external environment is an important part of the strategic planning process. Environmental factors internal to the firm usually can be classified as strengths (S) or weaknesses (W), and those external to the firm can be classified as opportunities (O) or threats (T). Such an analysis of the strategic environment is referred to as a SWOT analysis.
The SWOT analysis provides information that is helpful in matching the firm's resources and capabilities to the competitive environment in which it operates. The following diagram shows how a SWOT analysis fits into an environmental scan:
Strengths
Our firm Appetite Catering’s strengths are its resources and capabilities that can be used as a basis for developing a . Examples of such strengths include:
Appetite Catering has license of its own brand name, unique menu. If any other catering firm pirates our brand name or menu or any other things that will be straightly prohibited.
In our catering business we have selected a strong brand name, “Appetite Catering” actually ‘Appetite’ means hunger, test, need to eat, desire for food. We matched our brand name properly with the meaning. We provides the best test and to fill the stomach to make good judgment with its meaning.
- Favorable access to distribution networks
One of the most important things in any business is distribution channel / network, which we have got very strongly. Our suppliers are committed to us to deliver fresh and hygienic supplies. We will have our own vehicles to deliver the orders. We also have created good understanding and commitment with some rent-a-car companies to deliver our foods, so there is no single cause to hamper our delivery system.
Weaknesses
The absence of certain strengths may be viewed as a weakness. Our firm has some weakness also.
- Lack of necessary outlets
Recently we have only two branches in this Dhaka city, which is really very little in number to capture the whole Dhaka city. Still now we are operating our catering business in Dhaka city only, for the limitation of capital we can not spread our catering service in the other major cities of the country.
- Relatively high cost structure
We are providing the best food and great test, that’s why our price is little high then others, though it is not for all menus but, for some special menus. But with the gradual growth of our sales, we will try to make a cheap rate for our valuable customers.
Opportunities
The external environmental analysis may reveal certain new opportunities for profit and growth
- An unfulfilled customer need
Though we are providing a menu with a lot of options to customer, but still now we have some backlash in it. We could not provide all of the items as customer needs.
- Arrival of new technologies
Arrival of new technologies has shown us new opportunities. By these new and developed technologies we can provide more items and more foods in possible shortest time.
- Removal of international trade barriers
Because of border barriers it is quite difficult for us to do business in foreign countries. If the governments of different country can make an argument about boarder less trade, then we can go to foreign countries to capture new markets.
Threats
Changes in the external environmental also may present threats to the firm. Our catering firm is also not out of this.
- Shifts in consumer tastes away from the firm's products
Change in consumer tastes has shown as a threat. Due to fast foods and western food culture our customer are loosing their tastes and shifting from our local product to more diversified products. It has become more difficult for us to cope with the change of cosumers’ choice.
- Emergence of substitute products
Emergency of substitute products creates a problem. Due to this problem our value delivery system is facing some new problems.
Some new government regulations have made new difficulties. Use excess of food color and animal fat is now banded. Though we prefer to use chemical as little as possible but these regulations have created extra pressure by enforcing not to use some necessary chemicals also.
- Increasing price of raw materials and supplies
Rapidly increasing of supplies has made some new threats to us. Since the price is increasing, we could not provide foods to our customer in low price. Relatively our food price will increase and to keep customers loyal will become difficult.
6. Marketing Plan
Market Positioning
Appetite Catering has developed positioning statement for both target customer segments.
Business Customers:
Appetite Catering is the brand that offering convenient reliable delivery of delicious launches and refreshments for business meetings and gatherings at local corporations and institutions.
Social Consumers:
Appetite Catering is the brand that offering upscale food, flexibility and quality service to the civic minded Dhaka residents.
Product
Appetite Catering created recipes and cost-out manus for three product lines; buffet dinner, business launches and food for meetings. Customers can choose a comprehensive menu with signature items offers consistently and seasonal items introduced to keep the menu option fresh and exiting.
Place
Appetite Catering is an off-premise catering company. Typically, social customers host events in a private residence or small event hall or community center. Business and institutional customers tend to hold events in workplace premises in locations such as conference rooms. The menus will be prepared at a commercial kitchen and transported via local delivery services. Appetite Catering arrange and serves food as directed by the customer.
Price
Appetite Catering has two pricing strategies. The first is to offer high-end catering service that combines top quality food with professional service. Offering for this market include dinners and buffet service. The second pricing strategy is to offer a corporate catering menu, designed for business customers seeking launches and food services for meetings. These menus will offer diverse items that are step up from traditional regular sandwich fare. Below is Appetite Catering’s price structure.
For comparison, the information below lists catering rates and guidelines.
Promotion
Catering business is a very personal business in which relationship is the key to get customer. These networks are vital because consumers are looking to hire a catering farm that has been recommended or preferred by event managers or institutions. During the first 3 years Appetite Catering will focus on creating brand awareness which lead to product trial, to do achieve this goal Appetite Catering will depend on word of mouth and strategic alliance.
Marketing Communication Strategy
Appetite catering will enforce the brand name and main points of product differentiation, high end service in a lower price. Appetite Catering will advertise on pulsing basis to maintain brand awareness. We will advertise on newspapers and provide leaflets and banners in several areas. As catering business in mostly depends on word of mouth Appetite Catering will initially provide huge discounts in events to spread the name of the company.
7. Financial Plan
For the success of our catering marketing we have estimated and prepared a budget which indicates the costs that are going to be occurred in the upcoming year. Our budget is basically made for the indication towards the cost minimizing and proper use of the capital. This budget will lead us towards the success if we can keep our cost within the budget. So, proper implication of budget is mandatory for this success of our business. Before preparing a budget, the rational and logical applications are necessary, so that the budget could be utilized properly. First we have decided that we will start our business with the amount of 20 lacks Tk. Capital. This take is funding by the owner of the company. But from this 20 lacks Tk. 5 lacks taka have been borrowed from the bank as a loan, which in eventually a liability for our company prospective. Here’s the estimated budget of our catering marketing:
Break Even Analysis:
Break-even point is the point from which a company starts to make profit. So, it is very important for every organization to calculate the Break-even point. In our catering marketing we had to analysis the Break-even point. Our initial cost is very high so it very much tough to reach in the Break-even point. We have analysis many things to estimate the breakeven point. The steps are:
- Unit Cost = 90 + (1762880/30000)
= 148.76
= 149
- We want to have 25% profit so
Mark Up Price = 149 / (1-.25)
= 198.66
= 199
- Contribution Margin = (199-90) / 199
= .55
= 55%
- Break-even Sales = 1762880 / .55
= 3205236 (Thirty two lacks five thousands two hundred thirty six)
- Break-even Volume = 1762880 / (199-90)
= 16173
So, we can achieve Break-even point in,
(16173 / 2500) = 6.4692 = 6.5 months
We can show the Break-even point of our company through a graph which shows the point from which our company will start to gain the profit.
Break-even analysis
8. Competitors
In any business competitor is an important external factor. In our catering business our Appetite Catering Service has got a lot of strong competitor in this Dhaka city. Our main competitors are Fakhruddin Baburche, khana Khajana, Muslim Catering service, Salam Catering service, Bikrampur Catering service & Kamal Hossain Catering service. There also a lot of catering firms, which are not so much famous & large like those one.
The main menu is almost same for every catering firm, but the difference is catering firms try to fill their menu with some new items, which may bring new flavor and tests. In these cases we have also brought some new items with new tests.
And almost 80 percentage of our items have some specialty, which is differentiating us from others. For instance more or less every catering service has an item of ‘Shahi. Kacchi Biriani’ but, in spite of this we also have Pakistani Basmoti rice’
We have made our firm special in timing sector, every catering service are committed to deliver their foods with in 12 hours, but we have committed to our customer to deliver foods within 8 hours. Though it is an expensive strategy but we have chosen this to capture the main market share.
One of the most important things in business is capital. Our giant like competitors has got huge capital. To compete with them we have also raised our capital by borrowing money from Bank.
Publicity is very important for any public related business. We did not notice any huge & effective advertisement program of any of our competitor. We have taken this advantage; we made some advertisement at news paper and banners.
These are the strategy, how we are competing with our competitors and making difference from others.
In Bangladesh Catering services may be classified as below:
1. Top class caterer
2. Middle and upper middle class caterer
3. Low priced caterer
Top class caterer: Top class catering services are provided by the five star and four star hotels. Their services are being availed by the rich people of the society and generally during important official program, events, seminar, symposium etc. Sometimes wedding programs are also arranged by the wealthy people in these hotels and catering services are availed by them. Competitions faced by these catering services are for delicious, hygienic and high quality food. Competitive price in the menu is also one of the factors in selecting the caterers.
Middle and upper middle class caterer: Middle and upper class people take the catering services from the three star hotels for renowned private caterers like Fokhruddin caterers and catering services provided by International conference Hall and big community centers like Bangladesh China Friendship Centre, Shenakunjo, Darbar hall, officers club, ladies club etc. Competition faced by these caterers depends mainly for the comfortable accommodation, parking facilities and of course quality of food and price of their competitors.
Low priced caterer: low priced catering services are availed generally by the common people and low salaried employees. These services are being provided by the restaurants, general community centers and private small caterers. Competitions among them lie in respect of pricing mainly in the menu or items of food.
9. Conclusion
Catering services should cover all sections of people. Because, purchasing power varies depending on income and living standard of different groups. This also depends on the locality where the particular groups of people are lived. Therefore, standard of catering should be based on locality, income and the section of people as well as their living standard.
