Business Plan for Food Stall Research Proposal Example | Topics and Well Written Essays - 2250 words

Business Plan for Food Stall - Research Proposal Example They expect to draw weekly from the expected profits at the rate of ' 600 each per week or '1,800 weekly for all of them. Consequently, they made inquiries on the food they will sell, the pricing thereon, and the cost of sales as well as the operational expenses they expect to incur. The marketing strategy and program of the venture is simple. The target market is those who will be entering the games area who watch the games. They are expected to buy their snacks or for some their entire meals. It is expected that substantially most of the people going to the games will be buying their snacks which will consist of sandwiches, soft drinks, chips, or bottled water. The product line that is intended to be sold are burgers, bottled water, soft drinks, and chips. These will be available in the stalls, and some are to be sold by one of the two sales assistants who will be peddling the items inside the stadium ad around the area. There will be a variety of burgers to be sold. The mix of burgers will depend on the weekly experience of the sales which will be the basis of the purchases to be made. Nonetheless, the partners have estimated the volume of sales by kind of product line. It is only in the variety of the burgers that decisions have to be made on a weekly basis. The main product expected in the venture is the sales of burgers where the price per piece is '1.50 against a cost of '1.20 each. This is a margin of 25% of cost. The other three products are to be sold at cost. Pricing Strategy The pricing is based on the margin based on the variable cost. Considering that the main product is burgers the pricing is to add a mark-up on the cost at the rate of 25% only on the burgers. There are no mark ups on the other three lines. Below is the price, cost and margin for each product: (All in pound sterling. Assumed that there are 100 pennies per pound sterling) Product line Price per piece Cost per piece Gross margin % of margin Bottled water .20 .20 0 0 Soft drinks .50 .50 0 0 Chips .50 .45 .05 10% Burgers 1.50 1.20 .30 25% The pricing of the water soft drinks and chips do not carry any mark up. It is expected that the grant will cover up for the "no mark-up" and to subsidize the operational costs to be incurred during the games. This policy though means that the burden to cover the operational costs is on the sales of burgers. This policy will only be during the games. After the games it is expected that the venture will continue but with margins on the sale of all products to be sold. Product cost strategy The venture will merely purchase the items to be sold. This will be done by entering into contract of supply from reliable suppliers for the duration of the games. Since the burgers are perishable items there is a need to be keen on the preferences of customers on the kind of burger and to order these items accordingly. Spoilages are expected to be incurred and therefore have to be minimized by closely analyzing the sales for the previous week. The other products are packed or bottled so there is no danger of spoilage. However, in the case of the bottled drinks there is a need to stock a few items for the day. Promotions The venture will embark on some advertising posters around the Olympic grounds