The business is planned to market hot dogs and other food-related items to lovers of fast food. The goal of the company is to “sell good food fast.” We can provide the best possible fast comfort food by making whatever products at home and fresh regular. Like every food company faces direct and indirect competition, Hot Dog City workers need to work to provide each customer who comes through the door with the best possible meal. How to optimise profits and to make reasonable use of resources when the sales are strong is one of the biggest challenges facing Hot Dog City.
This plan focuses on the company’s growth strategy, indicating how it will expand on established customer partnerships and create new goods and services for unique niches of consumers.
The goal is to open a hot dog/hamburger restaurant in the Chicago downtown business district. Three main places compete across the entire area, which has thousands of people every business day. Many restaurants have similar food but few in direct competition. The key is to have fast, good food. Instead of relying on processed food, anything, and everything that can be made fresh will be. All paper goods used will be “green” with little to no plastics used.
By utilizing social media, making the food as tasty and “healthy” as possible, working with speed to recognize the limited lunchtimes that patrons have, we will make a desirable product. This industry has excellent margins, and if you work to keep your overhead low, there is tremendous profit potential.
Hot Dog City is an upcoming family business in the second year of operation located in Washington DC in the USA. The company aims to provide quality products and services, as well as maintaining good customer relations. The organization deals in the production and sale of the readymade to eat food, scorching dogs. It also provides catering services for events.
Products and Services
HDC features good fast food and a variety of hot beverage products. HDC will offer a range of coffee and espresso products, all of which come from the coffee beans imported from Colombia. The company’s staff will also do whatever it takes to ensure that the clients are adequately served to the finer details like knowing a regular client’s tastes and preferences. The food products are made from scratch daily as much as possible, and those processed products are of the best quality possible.
As a means of product differentiation, HDC ensures that their products are fresh whenever they are served. The product differentiation strategy will work because it seeks to make the best for the client to have in any case. Most grills sell food products that have been are prepared before each day’s start. What this means is that it will either lose the flavor due to the exposure to air or due to the chemicals that will be used to preserve the preprocessed products. There is an owner on-site at all times to ensure quality in the preparation and delivery of food and coffee.
Also, there is one owner responsible for sourcing and procuring the best and freshest products on a daily and weekly basis.
As a fast comfort food company, Hot Dog City has grown to be a top-quality, fast food, and quality catering service producer. This family-run business operates on a full-time basis and turns out to be a popular and busy restaurant.
The Marketing Environment
- Direct and indirect competition. Direct competition for this type of food is scant. There is one restaurant within two blocks that has a comparable menu. More than ten other foodservice restaurants within the same two-block area offer diverse different ethnic menus that do not directly compete with Hot Dog City. With more people venturing into the food business, there is continual turnover in the foodservice spots in the close neighborhood. The only saving feature is that there are limited spaces to house restaurants within the business district. Due to the massive volume of people that come into the area every day to work and eat, the indirect competition is not as fierce.
- Economic forces. Many food companies invest very little in promotional budgets because of the local market’s nature in the business district area. This is because of their desire to cut expenses. This is short-sighted as potential customers pass by not knowing the extent that the restaurant may cater to their needs and wants. It becomes hard for them to receive customer recognition and appreciation, therefore, leads to low sales. In addition to marketing, offering specials to induce potential customers to try our products will help bring first-time customers in the door. Once they try our food, we hope they will like it enough to keep coming back. We base this on quality, diversity of food production, and cost/value.
- Legal and regulatory body. They put more emphasis on licenses and medical reports (Luther, William M 257). Legislation laws charge Food companies highly on work permits and get restrictions on employing people with the right medical words, which are supposed to renew yearly. The purpose is to offer clean, healthy food products. By strong efforts on cleanliness and sanitary practices, we indirectly encourage customers to return. They notice more than you would realize that you use gloves, wear hats, and keep a clean place.
Since it focuses on service and quality, Hot Dog City has implemented a niche differentiation strategy effective in the diverse marketplace. Our ability to make different quality products quickly has contributed to strong annual returns. Our target markets consist of food enthusiasts and office workers in the area, and individuals/businesses with events that require catering services.
Marketing and Sales Objectives and Performance
Hot Dog City employees offer appropriate customer service to clients and hold a high degree of professionalism in their workstations. Once an order is made, a customer moves to the cashier to make a payment, where they meet our principal salesperson. His job is more than to take the money; it is to make sure that our customer leaves with a smile on their face and their food needs are met. He also gives discounts and other free samples to enhance the customer experience and get them to try different items on our menu. Hot Dog City has a company-specific basis to market its products. The company has a vital repeat business factor. There are very few customers that are less than happy with their food selections. By the staff being sensitive to customer feedback, we encourage repeat business even if purchasing other or new food selections.
Fast Food Business Marketing Strategies
Target market 1: Office workers in the area surrounding the business premises and visitors to the downtown business district looking for a great hot dog or hamburger. With thousands of people walking past the intersection where the business is located each business day, our goal is to get them to stop in and try us.
Target market 2: party enthusiasts and event planners.
By marketing ourselves to all the local offices and businesses, we have a food setup enticing with excellent services that guarantee us to earn subsequent catering events.
Products. Hot Dog City provides fast-quality food products sold on the premises and has outside catering services. We work to exceed customer expectations consistently and are speedy, responding to customer demands to anticipate our customer’s needs. These attributes and menu are challenging for any nearby competitor to duplicate, thereby giving Hot Dog City a competitive advantage.
Pricing. Hot Dog City provides quality products at reasonable prices. According to (Luther, William M 156), a company should be sensitive to its products’ price elasticity and overall consumer demand. Having margins that allow us to have lower price points among all indirect food competitors in the area, we ensure visits from repeat customers at least once per week.
Distribution. Hot Dog City uses direct marketing tactics that focus mainly on social media. This is proving to be practical as well as cost-effective in producing results. Since our primary products are hot dogs and other fast food items, we strive to have quick sales and delivery service to nearby customers.
Promotion. Since a substantial majority of Hot Dog City events create customer demand, the bulk of promotional expenditures tends to focus on marketing to these customers. Also, new product development and continually improving service keep up customer interest.
Since Hot Dog City’s current and future products require some adjustments to match customer needs, it is essential to organize the marketing function through market segmentation. It will allow Hot Dog City to focus its marketing efforts on our target customer segments’ specific wants and needs. The customer groups are the food consumer group and the catering service group. Both parts will have a sales manager who is responsible for marketing the company products.
These marketing changes will enable Hot Dog City to become more flexible and creative in meeting customer needs. The changes will overcome any potential lack of diversification in the company’s product lines and customer base. It will also give the company a better opportunity to monitor competitor activities and stay competitive.
Proposed Management Structure
An organizational structure explains how activities like coordination, supervision, and task allocation are directed towards achieving company goals. Hot Dog City needs to be flexible, innovative, efficient, and caring to gain a long-term competitive advantage. The organizational structure provides the foundation of operating procedures and routine operational tasks. It also determines who participates in the decision-making process and how their views affect the company’s actions.
Hot Dog City should adopt a bureaucratic management structure. This kind of management has a certain degree of standardization and stresses on speed, precision, and lack of ambiguity. The roles and responsibilities of every employee from top to bottom should be clearly defined. For example, order takers should be limited to serving food and clearing the tables. This will also lead to operational efficiency as the employees become professionals in their area of expertise.
The business should also establish a hierarchical structure of management, ranging from senior executives to managers, all the way to the subordinate staff. Decision making should be passed from one level to another. Authority and information should flow from top to bottom, and the operational process should be closely monitored.
Another requirement of the bureaucratic structure is respect for merit. This will help in putting strict subordination and reduction of friction from the staff. Care is also expected for everyone working on the premises with high regard for top management, and each employee should perform their duties with a high level of professionalism.
Product (or Service) Design and Development Plan
These are the special deals put together to secure more customers and return lost customers to you. Hot Dog City offers discounts to customers in the form of meal deals, daily specials, and free food samplings. This creates motivation to try HDC food products, and the customer turns out increases due to these promotions. You also get to implement and test out new product offerings to see if they work. This will also create anticipation or buzz for new product offerings.
Hot Dog City marketing needs to be examined to promote the business to current and prospective customers. The company depends on printed menus with coupons to reach out to the customers as its central marketing platform. This material alone is not enough; therefore, the business needs something more like a website and social media access to its customers. A website is accessible and gives a platform for clients to provide their feedback and opinions. It also offers a chance for the business to market itself online, thus gaining more attention from its customer base.
A strong referral program can revolutionize the firm’s success (Luther, 2011). For example, if each customer refers a new customer, the customer base would grow continuously. The business can, when it asks customers for referrals, give rewards. Frequent dining and referral bonuses will cost food only and create new and repeat business. You also build customer demand since customers will look forward to obtaining rewards and trying to hit levels. They will frequent your establishment more, as well.
The management has a clear outline of the promotional expenses they expect to incur and the desired results regarding sales, new customers, and profits. Since the company’s goal is to gain a 30 percent gross profit margin, it has its complete financial projections necessary to achieve that goal. The predictions may not be entirely accurate, but they are used to identify the promotional expenses and the costs associated with other strategies that will give the highest return on investment.
Because Hot Dog City’s current and future product offerings will require some modification in operations, it is necessary to organize the marketing function by customer groups. This will allow the company to focus its marketing efforts on the needs and specifications of the target customer segment and identify the product offerings desired by its customers. Hot Dog City has organized its marketing efforts into the production group, the business to a business group, and consumer product licensing group. Each group will have a sales manager who controls the management and marketing to help promote catering events and identify and build new locations.
Activities and Responsibilities
All implementation activities should begin at the start of the next financial year. Some of Hot Dog City’s president’s responsibilities include delegating and monitoring the following tasks and objectives:
- By April, develop a marketing information system to monitor customer order and reorder patterns and measure customer satisfaction. The sales manager is responsible.
- By May, develop new product offerings and advertise and promote them to existing customers and potential customers. The business analysis team is responsible
- By September, implement a customer satisfaction survey to determine the number of customers who repeat and in what frequency since the beginning of the financial year. The marketing director is responsible.
Outsourcing is a business practice that companies use to reduce costs and improve efficiency by shifting tasks and jobs to contracted persons for a specific period (Bragg, 2006). Since Hot Dog City has no expert in IT, it had to hire an expert to handle the task of designing a website for the business and refining its cash register and information system. This will cost less for the company than employing a full-time employee.
Another outsourced function is tax preparation. A trained accountant prepares the company’s tax returns, having been given the pertinent financial records. However, the company must be selective in with whom it entrusts with such responsibilities to avoid errors that could lead to severe penalties and interest costs. Outsourcing makes meeting such filing deadlines much more comfortable as it reduces employee workload and increases improved output.
HD Chart of Accounts
There will be two-income accounts: food sales and coffee sales. These two tables will contain information about the deals that have been made in the different sections and, consequently, the revenue that has been generated during a specific period.
There will also be two accounts of the cost of goods sold; grill ingredients and coffee supplies. These tables will contain information about the ingredients bought for food preparation and the stores that are also accepted for making the coffee. These tables help analyze production costs and consequently evaluate their profit margin (Aaker & Adler, 1984).
The last account would be the standard expenses accounts, which contain tables of expenses that the organization faces in its production. Several versions could be included here; lousy debt, insurance, and advertising, among others. This helps estimates the miscellaneous expenses that the company pays for. This allows the company management with future decisions in cutting down costs and thus effectively running the business at low prices.
Cash Flow Year 1
Cash flow year 2
Internal controls, among other roles, are there to protect the company’s assets and personnel. Separation of responsibilities, appropriate authorization procedures, inventory and asset management, effective record keeping and reporting practises, and independent monitoring are the components of a proper internal control programme. The good record keeping and recording method is one of the most suitable ones to be introduced in Hot Dog City.
By keeping proper documents about the business’s equipment, the appropriator can prove that, indeed, the equipment in the subject belongs to them (Anandarajan, 2004). The equipment used for food preparation is state of the art, and only several restaurants have it. This exclusivity is in itself security since proving ownership guarantees getting most of the equipment back in such events like theft. The documentation of the systems in use and their operation process is enough to ensure that the other systems’ other users use it the most effective way possible. If the users know how to use the set systems, then errors would be reduced, and in such cases, of course, wearing and tearing because of misuse would not be a problem. A person who sets the grill’s heat too high every time could destroy the system faster than it would wear out under normal conditions. With the system documentation, it is also possible to troubleshoot the system and repair it in the case of malfunctions. Since the documentation gives the layout of the system and how it works can provide pointers to where the problem could be in the functionality and what to do to repair it.
There should also be limited access to the inventory. The business’s main product is on the list; there are several reasons why the stock should be protected. One of these is that there is a chance that it could get spoilt. The quality of the meat used in the company can be altered by such factors as the temperature it is exposed to and any extreme conditions. If the people who are not wary of such elements are allowed access into the inventory room, they might not take the required care and eventually lead to the destruction of the products. This is not good for business, and if it happens repeatedly, it might mean the company cannot sustain its business operations and would soon be out of business.
The process of thorough system documentation takes a lot of time and precision and might be opposed because it stands to change the organization’s working culture. There is no way that the job can be avoided, and the culture change will have to occur. However, describing the roles of those involved in the process would increase responsibility and accountability such that the job will get done anyway. It is not difficult to control those accessing the inventory since the inventory is in an enclosed area that would make it easy to monitor and measure customer traffic.
The regulatory environment will also be taken into account and followed as part of the business’s operation. This is important as the company grows and it obtains more locations. This means bringing in more investors to help raise capital and get qualified personnel to help run more extensive operations. One of the most violated regulations is the Sarbanes-Oxley Act, which seeks to protect the investors by providing accurate information that would be reliable. HDC will adhere to the specifications of this act. To ensure that the company violates the show at no time, different people will handle the accounting through several processes to ensure accuracy and integrity in HDC’s financials. These processes are in effect to reduce the number of errors in the accounts of the business and consequently provide more trustworthy and reliable financial information about the company.
As the business grows and more people become involved in different roles, the original shareholders will cash out to a certain level and take appropriate management roles. The goal is to make the business run with more than three people at the management chain’s upper echelon. New talent will want equity as part of their compensation package.
This will also make the business less reliant on the three original shareholders. The exit strategy is such that each of the original shareholders will convert to investors and, as stated above, have an appropriate management role if necessary or desired.
Evaluation and Control
Performance Standards and Financial Controls
A comparison between the financial expenditure and the plan goals will be in the final report. The following are the suggested performance standards and financial control.
- Each project team is expected to report all financial expenditures for their segment of the project. The marketing manager will also get A standardized reporting form.
- The marketing manager is responsible for adhering to the project budget and reporting to the company president every week.
- New product offerings will frequently be evaluated to find out whether they are profitable.
Monitoring procedures should be developed for activities needed to bring the marketing and sales plan to fruition. They include,
- Project management function will evaluate the implementation and sales plan by developing time requirements and budget expeditions.
- There will be a Comparison of actual and planned activities every week during the first implementation phase. The company president will receive the rep
- Aaker, D. A., & Adler, D. A. (1984). Developing business strategies (Vol. 200, No. 1). Wiley. Anandarajan, M. (2004). Business intelligence techniques: A perspective from accounting and finance; with 18 tables. Berlin [u.a. Springer.
- Bragg, S. (2006). Outsourcing (1st ed.). New York, NY: John Wiley & Sons.
- Cuppett, W. T., & American Institute of Certified Public Accountants. (1996). Developing business plans. New York, NY: Management Consulting Services Division, American Institute of Certified Public Accountants.
- Drury, C. (2001). Management accounting for business decisions. Thompson Learning.
- Luther, W. (2011). The marketing plan (1st ed.). New York: AMACOM.
- Luther, William M. The Marketing Plan. 1st ed., New York, AMACOM, 2011.
- Westwood, John. The Marketing Plan Workbook. 1st ed., London, Kogan Page, 2005.
- Winston, W., Stevens, R., Sherwood, P., & Dunn, J. (2013). Market Analysis (1st ed.). Florence: Taylor and Francis.