team2_vfood marketing plan 15.12

8/3/2019 Team2_VFood Marketing Plan 15.12

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Food Solutions for Vending Machines

Marketing Plan

13/12/11

Team 2

Seydi Afin nlEmirhan Akdemir

Cansu Acar

Melodi Trkili

Onur entre

Engin yidoan


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Table ofContents

Target Market.................................2

Product Design..4

Price........6

Distribution Channels10

Promotion.11

Competition.....13

Sales Strategy......15

Appendix16


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TargetMarket

Our target market can be evaluated from two perspectives. First one includes the onewho buys our food called our potential consumers. Even though we are not directly

selling to them, their main characteristics and needs shape our business. In order to

become a strong and sustainable player within the market, we need to fulfill their needs.

Moreover, we can convince our buyers with a strong reference to our ability to capture

the consumers market.

The second perspective involves the ones who buy our vending machines which are

called our potential customers. They are the ones who are operating our vending

machines by paying their initial investments to our company. To be sustainable within

the market, we need to have maximum number of customers and also we need to build

up good relations with them.

1. ConsumersAs is it mentioned in the previous plan, our target market is the young population

that needs to have quick, cheap and good quality meals during their breaks or

short spare time. They have limited budget due to the fact that their income

comes either from their family or their newly started job. As long as they are a

member of Y generation, they are concerned about bad effects of the growing

world. Following to that they have just started to care about their health. Due to

the fact that they usually feel busy in their lives, they are lacking time.

In order to have a deeper insight about our target group to determine it in a more

precise way, we have conducted a survey that investigates Eating out Habits of

our potential consumers. The survey responses can be seen in detail in Appendix

B.

75 people participated to the survey; 66 of them were students and 64 of them

are 19-25 years old. 56 participants emphasize that they are paying more than 50

TL for eating outside each week. Opposed to previous concerns, the potential

consumers are spending a lot of money on eating outside. Even though mostly

they are eating outside at least once a day, 53 participants say that they would eat

more often if they had a chance to buy cheaper foods in the same quality.

Moreover, 43 of them say they would eat more often if they had more accessible

food service. Depending on the results most important criteria to decide where to

eat is having a delicious meal, the second important one is fast service and the

third one is healthy foods. Price and accessibility comes afterwards. And


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surprisingly the popularity of the place is the least important factor that affects

consumer decision.

Since there is a great potential to capture the market that consists of people

whose willingness to buy will increase with lower prices (71% of population) and

more accessible food service (57% of population), after conducting a deeper

research we believe that our positioning of providing cheaper, faster and more

accessible healthy foods will fulfill the needs of our target population.

All in all, our main target market is students aged 19-25, spends most of their

time out, have income of less than 1000 TL per month and needs to eat fast, cheap

and healthy foods. The primary market can be taken as the number of young

people who study in universities in Turkey. The number is approximately 2

million 87 thousand students[1].

2. CustomersWe firstly target the potential customers who have already bought and operated

vending machines in the past due to the fact that their intention to buy new types

of vending machine will be more than regular businessmen. The second target

group is the members of OID (Otomat ve letmecileri Dernei) who are already

interested in vending machine business. The third target group of customers is

business entrepreneurs who are interested in new and innovative opportunitiesfor the current markets. We can also classify them as the ones who participate the

prestigious business fairs.

As it is explained briefly, we are selling MacQuick vending machines to our

potential customers and they are making profit by selling vending machine foods

to potential consumers. Therefore the buying decision is made on two levels. The

purchase is made by our distribution channels which will be mentioned in detail.

Once selling the vending machine to our customer, our relationship is not ended.We also provide after selling service including filling in the machine process.


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ProductDesign

Our product design includes the design of MacQuick vending machine and the design ofthe output of the vending machine as named MacQuick macaroni:

MacQuick Vending Machine

Our product MacQuick is designed with the reflection of our mission To provide

cheaper, faster and more accessible healty foods.

Figure 1.The basic design of MacQuick

In order to give the perception of cheapness, we designed it as simple as possible. 5

components provide user friendly and modest appearance to our product:

1. The MacQuick Case: The big case is colored with orange which increases thecraving for food and at the same time simulates enthusiasm and creativity. It

will attract the young segment with its energetic appearance. There is a big

logo on the case with the motto of fast & healthy & macaroni, which we


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believe help to invite potential consumers to our product. The height of the

case is a little higher than a long person which we estimate to be 2 meter. The

width of the vending machine is approximately 1.5 meter that allow having

enough space for bowl and output slot. The depth of the machine is around 1

meter so that there can be enough space for making the macaroni and keepingthe ingredients.

2. Payment Case: It helps consumer to pay for the product before choosing thetype of the macaroni. The payment case is green which symbolizes restfulness

so that it will relax the consumer and courage to pay more. The payment

options are with money and with credit card.

3. Bowl Slot: After payment, the bowl will drop from the slot. The consumerwill take the bowl to place it to the Output Slot. The frame of the Bowl Slot is

white symbolizing pureness and hygiene in order to raise trust perception on

consumers.

4. LCD Screen: The most important feature of this part is to be user friendly.Because the consumer should not think it is too complicated to order the

macaroni. This is part is surrounded by red frame which means action,

courage and confidence that will encourage consumers to have the product.

5. Output Slot: Output Slot is also white to give the idea of end product is cleanand hygienic. After selection of the options, the machine will start to make the

food and following to that the consumer will take it from the output slot.

MacQuick Macaroni

The macaroni has 5 different ingredient options including ham, chicken, sausage, corn,

and peas. After paying the required price, the consumer can add up to 5 ingredients to

the plastic bowl. The appearance of the macaroni will be like:

Figure 2. The appearance of the macaroni


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Price

Since the competition is really tough within the food industry, the pricing strategies is

really important while considering the consumers decision dynamics. In order to

determine the most effective pricing strategy we have used 4 different methods and

compared them. They are basically Floor Pricing Strategy, Cost Based Pricing

Strategy, Competitor Based Pricing Strategy and Price Discrimination through

Different Segments:

1. Floor Pricing Strategy:In order to determine what can be the possible lowest price, we have calculated

the specific price that will not bring any profit. It appeared to be 2 TL:

EXPENSE

COST NUMBER TOTAL COST

Machine Purchase 6.000 TL 1 6.000 TL

Service 200 TL 12 2.400 TL

Ingredients 1.200 TL 12 14.400 TL

Renting 500 TL 12 6.000 TL

Total Expense 28.800 TL

Table 1. Expenses in Floor Pricing Strategy

INCOME

PRICE VOLUME TOTALSelling 2 TL 14400 28.800 TL

Total Income 28.800 TL

Total Profit 0 TL

Table 2. Income in Floor Pricing Strategy


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2. Cost Based Pricing Strategy:The basic principle of cost based pricing is to determine the whole cost

elements and a level of profit; and following to that estimate the costaccording to the financial results. Based on two levels of profit, two different

average selling prices are obtained for a bowl of macaroni as it follows:

If the average price of o bowl of macaroni is 3 TL and the number ofsold bowls is 40 per day, the profit is on an acceptable level with

14.400 TL:

EXPENSECOST NUMBER TOTAL COST






Table 3. Expenses in Cost Based Strategy

INCOMEPRICE VOLUME TOTAL

Selling 3 TL 14400 43.200 TL


Total Profit 14.400 TL

Table 3. Income in Cost Based Strategy


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If the average price of o bowl of macaroni is 4 TL and the number ofsold bowls is 35 per day, the profit is on a more satisfying level with

21.600 TL:

EXPENSECOST NUMBER TOTAL COST






Table 4. Expenses in Cost Based Strategy

INCOMEPRICE VOLUME TOTAL

Selling 4 TL 12600 50.400 TL


Total Profit 21.600

Table 5. Income with Different Selling Price

3. Competitor Based Pricing Strategy:One of the most important differentiations of our product is that we offer

quite cheap products compared to our competitors. Because of that, it is really

significant to build up that perception on the eyes of our customers.

The price range of having an appropriate meal at a restaurant can be taken as5 TL to 20 TL. If a basic fast food restaurant is considered the price of having


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an average menu is approximately 8 TL. The cheapest options for students

appear to be canteens and cafeterias and the range is usually between 4 TL

7 TL.

In the most appropriate case, we want to offer 3 TL for a bowl of macaroniand 0.5 TL for each ingredient that the MacQuick offers so that the consumer

can eat a meal with starting from 3 TL and probably the average payment will

be 4 TL(with 2 ingredients). In that situation, consumer thinks that it is much

cheaper than buying the product from a restaurant or a caf. At the same time,

it is not more expensive than buying from canteens or cafeterias.

4. Price Discrimination through Different Segments: Middle Segment (Students): This segment is our main segment which

represents the young generation which is aged 18-30. They are mainly

students that require the value propositions we offer. Their willingness to

pay is lower than the willingness to pay of higher segment.

Higher Segment (Non-Students): This segment is our secondarysegment that includes potential consumers which have an age over 30.

Since their willingness to pay is more and their other options are higher

priced than the other options of middle segment, we can charge higher

price to them.

Basing on the 4 different pricing strategies:

For the lower segment: The price of a bowl of macaroni is 3 TL and theprice of each ingredient is 0.5 TL

The price appears to be lower than our competitors in lowsegment.

According to cost based calculations, it brings a good level of profit. For the higher segment: The price of a bowl of macaroni is 4 TL and the

price of each ingredient is 0.5 TL

The price appears to be lower than our competitors in highsegment.

Basing on the calculations of lower segment, it will bring evenbetter profit.

For the selling price of each vending machine, we used cost based calculationsand also took the prices of our competitors into consideration. According to the

financial calculations, the price of 6.000 TL provides us required profit at the

moment (See Appendix A).


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Distribution Channels

Since our product is Make to Order, meaning we produce our products according to

orders that come from our customers we do not need to manage the delivery and sales

of large amount of products. After reaching the potential customers via selling force of

our company, the distribution channels do not play a significant role. It will have a cost

saving effect according to the price waterfall effect as well. On the other hand, we have

still evaluated all possible distribution channels.

1. E-Commerce: The most appropriate distribution channel is e-commerceoption for our company since we directly get the orders from the customers

and follow the whole process of delivery. We also promote our products onour website so that random come ins can also purchase our product. In order

to have an e-commerce system, the website will be improved by our

Commercial and Advertorial Designer Onur entre. We are planning to have

a corporation with shipment companies. According to that our cost will be

based on the shipment cost of the company for each vending machine.

Primary research shows that the price for vending machine is approximately

300 TL. This option is more advantageous than the others while considering

the cost issue and effectiveness.

2. Retailers: We are not cooperating with them since we do not need to sellmasses at the beginning and producing according to order. The positive side

of the agreement with retailers is that we could spend less afford on selling

our product to the potential consumers.

3. Distributers, wholesalers: Since our product is Make to Order, we do notneed to have a linkage between customer and our product all the time. We

will only appear in some business fair to show our products to our potential

customers. The positive side of the agreement with distributors andwholesalers is that we could spend less afford on shipment process and also

selling our product to the potential consumers.

4. Tele Shopping: Our customer target group is a very specific so that we do notneed to pay a lot of money to appear on the television and reach all potential

people. Because of that we did not choose to have tele shopping. If we had a

chance to have Tele Shopping as a distribution channel, we could reach higher

volume of people and also gain the attention of non-target customers.

However, Tele Shopping do not contribute a lot compared to its cost.


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Promotion

As new entrepreneurs, our promotion strategy is based on reaching the most importantpotential buyers while investing least money possible.

a. Advertising:i. Brochures and Catalogues: OID (Otomat ve letmecileri Dernei)

represents the primary targets to sell our MacQuick since they are

the people who are already interested in vending machine

business. We will make a catalogue involving the photos and

features of our product and send them to the each member of OID.

ii. Web Page: Our webpage will be a direct advertising method for ourcompany. The customers can go in to page and learn about the

details of the product, buying procedures and after selling services.

The website will also provide direct selling feature.

http://ge402.bilkent.edu.tr/vfood/

iii. Banner Ads: On the OID webpage, we will have banners that directwebpage users to our webpage so that our secondary target group

can easily be aware of our vending machines.

b. Personal Selling:Personal Selling is really important for our company. Because we believe

that the oral communication with potential buyers of our product with the

intention of making a sale will provide us to show beneficial features and

profit opportunities of our product. The personal selling helps us to focus

on developing a relationship with the potential customer which we think

is significant in order to increase awareness of the product even they donot buy after the personal selling activity.

c. Sales Promotion:We plan to give free after selling service to customers who buy our

vending machine in the first one month. The free service contains the

service person that will control the machine and full it up each day.

Normally this service costs 200 TL each month per machine. It will last for

half year so that new vending machine buyers will save 1200 TL.


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In order to encourage one customer to buy more than one vending

machine, we offer more discount for the each vending machine extra they

buy. For the second vending machine, they can buy it with 10% (600 TL)

discount. For the second vending machine, the price is 15% (750 TL)

discounted. If a customer buys more than 4 vending machines, the price is25% (1200 TL) discounted.

d. Public Relations:We are planning to be a sponsor of a summit for entrepreneurs of OID so

that we can introduce our product. By doing so, we will have a chance to

take a part in the bulletin of their association. Moreover if we make the

activity more extensive and attractive, we can take part in different

entrepreneur magazines. We will put quite much afford on public

relations in order to gain PR Coverage.

e. Exhibitions:We are planning to participate to the biggest food category exhibition of

Turkey, called 20th World Food Exhibition in 6-9 September 2012. We

see the high potential of reaching our second and third target groups

which are previously defined as the ones who are the members of OID but

have not bought a vending machine yet; and the ones who do not have

that much idea about the vending machine business but going after new

investment types.

f. Guerilla Marketing:We will operate 2 of the vending machines and place them in the crowded

places that we can reach our target group. On the sides of the vending

machine, two advertisement posters will be placed with the motto of Do

you like your MacQuick? Do you want to operate it as well? and the

contact information.


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Competition

The competition is evaluated from two perspectives. One of them is direct competitors which are

basically vending machine producers. The other ones are the indirect competitors that serves

the same need of consumers as we do.

Due to the confidentiality issues, the market shares of competitors are not open to public

articles. According to the deep research which is made via internet and published articles, there

are no main players in the market. Instead of that, there are many players such as Vending

Solutions Turkey, Bravo Automats, Turkvend, Coskun Automat, Basak Automat, Macgal

Automat As a result of that, the competition is quite on the same line that creates a big

advantage for us as a new player. However on the other hand, it provides the same advantage for

potential entries to the market in the future. In order to avoid such a situation, we need to

become a strong player within the market in near future.

Indirect Competitors

As long as our product is directly about food category, there are too many substitutes

that can be threat for our competition. Depending on the location of the vending

machine, each service and each product that offers food service generates our Indirect

Competitors. The major Indirect Competitors are defined as follows:

1. Cafes:Since they are offering delicious foods and one-to-one relationships, cafes can be

one of the most threatening competitors within the competition. Ourdifferentiation point compared to this segment is to provide cheaper and faster

food service.

2. Fast Food Restaurants:Our common feature with restaurants is to provide faster food for customers,

which is an emerging trend in the whole Europe. As they also offer cheaper price,

the competition is quite tough. We want to position ourselves in a better value

point in the Value Map by presenting better perceived performance in terms of

healthiness of foods.

3. Kiosks:The main advantage of kiosks is accessibility. They can be on the every street,

every corner etc. Today, many of the kiosks offer hot sandwiches, toasts and

different types of fast foods as well as snacks and drinks. Kiosks also offers faster

and cheaper food compared to cafes. According to that, it is the toughest player

for our vending machine. We need to differentiate our product with lower price

due to the fact that we do not employ any manpower, and with higher

accessibility in the high potential points.


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Direct Competitors:

Since our product is a vending machine that presents food solutions, all vending

machines that offers a king of food are our direct competitors. In order to analyze the

direct competitors in a deeper manner, the food vending machines are grouped as

follows:

1. Vending Machines with Warm Food:

There are various types of warm food vending machines such as macaroni, french

fries and pizza vending machine especially in foreign countries such as Germany,

Japan and United States. They are quite preferable compared to others as they

can serve warm foods as restaurants do. In other words, their main competitive

advantage is their taste which is closer to the restaurants. To illustrate the

vending machines in use today, cooks macaroni instantly so it is served hot and

within 2 minutes. Since we will not cook the macaroni in the machine instantly,

we must do it in 30 seconds at most so that our product can differentiate itself by

being faster. There are also vending machines which offer different kinds of food

such as French fries or pizza. They also offers user relatively quick food. Since

they are mostly cooks instantly and inside of the machine their process time

varies between 45 seconds and 3 minutes which may be considered long time for

a vending machine. Again, the serving time of our macaroni vending machine will

be what makes our product favored.

2. Vending Machines with Snacks:

Snacks vending machines are one of the most common vending machines in the

world. They basically offer biscuits, chocolates, chips etc for consumers. They

appease the hunger for a while and give taste pleasure. Their main advantage is

their price is usually lower than the supermarkets. Our competition is not

directly related, but as they offer tasteful snacks in a shorter service time, they

can be more preferable for consumers who are in tight time.

3. Vending Machines with Cold Sandwiches:

The vending machines with cold sandwiches offer different types of sandwiches

to consumers. The types are usually with ingredients such as tuna fish, salami,

cheese etc. The producer creates different types of sandwiches by having

different ingredients. Their main competitive advantage compared to restaurants

is being cheaper, faster and more accessible. Since they are also in the cold food

solutions category by claiming to have healthier food compared to other direct

competitors and fast food restaurants, they are one of the most critical

competitors. Our main superiority is being more customized as we let the

customer to choose the ingredients of the product.


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Sales Strategy

The sales force one of the most important aspects of our company. Since our product is

an innovative one that has not taken place in the market before, the selling strategy that

determines the whole components of selling force has a significant impact. For the first

three years, we are planning to divide the workload into 6 existing people, namely Afin

nl, Cansu Acar, Melodi Trkili, Onur entre, Emirhan Akdemir and Engin yidoan in

our company. The CEO Afin nl will organize the trainings and sales motivation days

for the first three years. Other members will be responsible for specific events,

organizations and business fair to be sales representative. Our company will rent 2 cars

that will help the sales representatives to reach their target places easily.

For the first three years, the sales objectives are 40, 50 and 60 per year. For the

following years, our sales aim is to double the number of sales each year. Therefore weneed to recruit new sales people. Cansu Acar and Melodi Trkili will be the coordina tor

of sales team. They will be responsible of evaluating performance measures and training

the team. The trainings will be hold during a weekend. The trainers will be Emirhan

Akdemir and Engin yidoan to give brief information about the technical part and after

selling service options; Afin nl to give an idea about the vision and mission of the

company; Melodi Trkili to explain the sales methodology and the marketing strategies

of our company.

We aim to recruit people who have already experienced in a selling department of a

company. Cansu Acar will be responsible of recruitment process. The goal is to recruit 3

people for the 4th year and 3 people for the 5th year.


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References

[1] niversitede Okuyan renci Says Yzde 70 Artt 2011. Eokul-meb.com.

December 2011.
http://www.eokul-meb.com/universitede-okuyan-ogrenci-sayisi-yuzde-70-artti-2011/http://www.eokul-meb.com/universitede-okuyan-ogrenci-sayisi-yuzde-70-artti-2011/http://www.eokul-meb.com/universitede-okuyan-ogrenci-sayisi-yuzde-70-artti-2011/http://www.eokul-meb.com/universitede-okuyan-ogrenci-sayisi-yuzde-70-artti-2011/


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APPENDIX A

EXPENSE

COST NUMBER TOTAL COST

Product EquipmentsArduino Uno 60 TL 1 60 TL

6 x Stepper Motors 60 TL 6 360 TL

Internal Metallic Components 150 TL 1 150 TL

Bill Validator 520 TL 1 520 TL

Electrical Components(Motor drivers, sensors)

60 TL1 60 TL

Keypad 10 TL 1 10 TL

LCD 10 TL 1 10 TL

Steel Case 90 TL 1 90 TL

Cooling System 180 TL 1 180 TL

Per Vending Machine 1.440 TL

Ordered Vending Machine 40 57.600 TL

Marketing

Brochures 3 TL 1000 3.000 TL

Banner Ads 400 TL 5 2.000 TL

Exhibition 1.000 TL 3 3.000 TL

Sponsorship 7.000 TL 1 7.000 TL

Total Marketing Expense 15.000 TL

OperationsRental of the Factory 3.500 TL 12 42.000 TL

Office Rent 0 TL 12 0 TL

Salary of Managers 1.000 TL 72 72.000 TLSalary of Employees 1.000 TL 24 24.000 TL

Other Expenses 1.000 TL 12 12.000 TL

Total Operations Expense 150.000 TL

TOTAL EXPENSES 222.600 TL

Table 6. Budget Calculations for Optimum Selling Price


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INCOME

PRICE VOLUME TOTAL

Sales 6.000 TL 40 240.000 TL

Service 200 TL 480 96.000 TL

TOTAL INCOME 336.000 TL

TOTAL PROFIT 113.400 TL

Table 7. Budget Calculations for Optimum Selling Price


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APPENDIX B

Table 8. Survey Responses, conducted wit 75 people.

Response

Percent

Response

Count

renci 88.0% 66

renci deil 12.0% 9

2. Ltfen yanz belirtiniz

Response

Percent

Response

Count

18 ve alt 1.3% 1

1925 ya 85.3% 64

2630 ya 8.0% 6

3040 ya 0.0% 0

40 ve zeri 5.3% 4

3. Aylk gelir dzeyinizi belirtiniz

Response

Percent

Response

Count

500 TL alt 21.3% 16

500750 TL 17.3% 13

7511000 TL 29.3% 22

10012000 TL 18.7% 14


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3. Aylk gelir dzeyinizi belirtiniz

20013000 TL 6.7% 5

3000 TLnin zerinde 6.7% 5

4. Ortalama olarak ne sklkla dardan yemek yiyorsunuz?

Response

Percent

Response

Count

Gnde 1 kez veya daha ok 38.7% 29

Haftada 4-6 kez 36.0% 27

Haftada 1-3 kez 21.3% 16

Ayda 2 veya 3 kez 2.7% 2

Ayda 1 kez veya daha az 1.3% 1

5. Hangisini daha ok tercih ediyorsunuz?

Respons

e

Percent

Response

Count

Restaurant 44.0% 33

Fast Food 28.0% 21

Kantin veya Yemekhane 24.0% 18

Bfe 1.3% 1

Dier (Ltfen Belirtiniz)2.7% 2

6. Bunlar tercih ederken sizin iin aadaki faktrler ne kadar nemlidir? (Sralaynz)


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7. Haftada darda yemek yemee ortalama ne kadar para harcyorsunuz?

51 TL100 TL 42.7% 32

100 TLnin zeri 32.0% 24

8. Darda daha ucuza ve ayn kalitede yeme ansnz olsa daha sk yer miydiniz?

Response

Percent

Response

Count

Evet 70.7% 53

Hayr 29.3% 22

9. Size daha yakn bir yemek yeri seeneiniz olsa ve ayn kalitede yemek sunsa darda daha sk yermiydiniz?

Response

Percent

Response

Count

Evet 57.3% 43

Hayr 42.7% 32

team2_vfood marketing plan 15.12

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