THE HUNGRY HIPPIE a business proposal
HELLO THERE. NICE TO MEET YOU. are you feeling hungry?
TABLE OF CONTENTS 01/ EXECUTIVE SUMMARY WHY ORGANIC
01 02
02/ ORGANIZATION BACKGROUND Nature of Business Company Name Slogan Vision Statement Mission Statement Value Statement Key Management Team Working Culture
04 04 04 04 04 04 05 05
03/ BUSINESS MODEL
06-09
04/ PRODUCTS & SERVICES Business Concept Products & Services
11 11-13
05/ MARKET RESEARCH Research Method Market Analysis Strategic Analysis
15 16-18 19-33
06/ MARKET STRATEGY Target Market Target Audience Personality Profiles Unique Value Proposition Differentiation (Product) Pricing Location Promotion
35 35-36 36 36 36 37 37
07/ CUSTOMER MANAGEMENT STRATEGY Touch Points Relationship Expectations & Experience
40-41 41
08/ BRAND STRATEGY Brand Name & Story Brand Logo & Slogan Brand DNA
43 43 44
09/ MARKETING POSITIONING Positioning Statement Positioning Factors Positioning of Price vs Organic Percentage Positioning of Appearance vs Plant/Plant + Meat
46 46 47 48
10/ MARKETING COMMUNICATION PLAN Website Plans Social Media Print Media Ambient Adverts Publicity Events Pre-Launch IMC Timeline IMC Timeline IMC Budget
50 51 52 52 53 54 55-57 58
11/ OPERATION PLAN Organizational Chart Human Resource Policies Operation Hours Location Floor Plan
60-61 62 63 63 63-64
12/ FINANCIAL BUDGETING Capital Investment Profit & Loss ROI
66 67 68
13/ CONTINGENCY PLAN
70
14/ BUSINESS ROADMAP Milestones
72
THE BIG ISSUE Singapore, with our vast variety of culinary delights is known as a food paradise. We have restaurants, hawker centres, coffee shops and of course our beloved fast food outlets. As of 2011 alone, statistics show that there are more than 6,500 Food & Beverage (F&B) establishments currently operating in Singapore and this number will likely continue booming in years to come. However, even with so many options, it is still generally hard to find a food establishment that is truly healthy. Often such places are too far away from the masses, making it inconvenient for the public to adhere to their healthy, truly natural food. The inconveniences of these ‘far away‘ healthy food establishments coupled with the convenience and affordability of which to pop into unhealthy food stores such as fast food outlets has contributed to the nation’s expanding waistlines. The latest 2010‘s National Health Survey revealed Singapore’s obesity prevalence rate which came in at 6.9% in 2004, has now risen to 10.8% in 2010. We have not only increased our calorie and fat intake, but we are also not consuming enough whole grains, fruits and vegetables. This trend of increase between 2004 and 2010 is steep and the percentage is still on the rise today.
6
01/ Executive Summary
INTRODUCTION The Hungry Hippie is a bistro and café built around the belief that eating healthy, organic meals can have a significant impact on a person’s health and attitude, as well as the environment. We provide our customers with scrumptiously healthy meals made from 100% natural organic plant and meat based ingredients. Our target audience is focused on young working adults aged between 25 to 40. With Singapore’s ever-growing rate of obesity through the population, the need for accessible healthier food options is critical.
BUSINESS SUMMARY This report presents our business model and the rationalization of our operational plans. It will also include an in-depth analysis and evaluation on the feasibility, challenges and strategies involved in establishing The Hungry Hippie restaurant. Most importantly, we provide an insight of how our values and branding strategies will be incorporated to create a strong brand awareness amongst our consumers.
SALES PROJECTION The Hungry Hippie’s capital investment is $574,100. We will start earning a net profit of $194,729.36 by year 3. We estimated an R.O.I of 34% in year 3.
1
THE HUNGRY HIPPIE
WHY ORGANIC? There is often the misconception that eating organic means going vegetarian. When food is said to be organic, it means that its ingredients are produced based on farming and processing methods that avoid the use of chemicals such as artificial fertilizers and pesticides. Organic food does not just limit itself to vegetables. Meat origin products can also be organic. Animals that produce organic meat, poultry, eggs and diary products do not take antibiotics or growth hormones. Hence, there are no restrictions to what you can do and cook with organic produce. Organic food and products do not come cheap, but knowing the source of the food on your plate is more natural with no of chemicals gives a sense of reassurance that is irreplaceable. In addition, every meal one eats that supports an organic, sustainable farm changes the agricultural world. Organic, sustainable farming is more eco-friendly than conventional ones as it produces much less environmental pollution. This would in turn slowly yet surely help restore our global environment to a healthier, greener state.
2
02/ Organization Background
THE HUNGRY HIPPIE
NATURE OF BUSINESS Food & Beverage (Organic)
COMPANY NAME
The Hungry Hippie
SLOGAN
Eat Healthy, Be Happy
VISION STATEMENT
To influence our customers to be like us! Eat Healthy, Live Healthy, Be Happy.
MISSION STATEMENT
Spreading the love for an alternative healthy lifestyle through: - Real Natural Food - A Green Lifestyle - Accessibility
VALUES
The Hungry Hippie is made up of a team of passionate individuals committed to bring others on our organic revolution with our delicious yet wholesome meals while doing our best to contribute to the restoration of our global environment. Happiness We believe that good food can bring you happiness. What more if the food you’re eating is 100% real and natural. At the same time, we want our customers to enjoy their time while they are at The Hungry Hippie. Openess We welcome anyone with open arms. We have nothing to hide. You can always trust that we only whip up scrumptious meals that are fully organic and of course, good for you. . Togetherness We believe in creating an environment that is friendly, warm and fun. We strive to be more than just a team. We strive to be a family. To watch out for each other, care for each other and go above and beyond not just for each other, but our customers as well. 4
THE HUNGRY HIPPIE FAMILY
The Hungry Hippie management team is a concoction of 4 young and commited individuals. We come from diversed backgrounds ranging from business, sales, graphic and media design, brought together by our love for natural food and the environment.
WORKING CULTURE Our Working Culture is explanatory through our values. Happiness, togetherness and openess. We want to adopt a family centric environment in our business. To accept anyone with open arms and heart, to be a strong Hungry Hippie family unit together with our customers and enjoy life everyday with happiness. We refer to our team as our family as people in a family are much closely bonded together than people in a team. This way, the employees feel a sense of belonging and will in turn show the company their loyalty.
5
We also make it a point to stress to our staff how important it is to be passionate about our food. Any new dish created, will have to undergo strict evaluation of its nutritional values. We will also make sure we taste it first and give our comments before introducing it in the menu. We value each and everyone’s input and freedom of speech is actively practiced in The Hungry Hippie.
03/ Business Model
KEY RESOURCES
organic farmers
organic S IENT INGRED
yoga studios
CH
Restaurant Space
EF
GYMS eat healthy, b
KEY PARTNERS VALUE PROPOSITIONS
CUSTOMER SEGMENT
100% ORGANIC
e ha
ppy
KEY ACTIVITIES
meat!
plant!
buying organic ingredients
The health conscious people SIBIL ACCES
S TA F F T R A I N I N G
ITY
MOOD MEN
CHANNELS
s
d o f mou
S
wo r
food
AD
EVENTS
WEBSITE
REVENUE STREAMS
deliverie
Restaurant
U
th
COST STRUCTURE CUSTOMER RELATIONSHIPS he
frie
$
$
Restaurant Rental
llo !
Variable
SOCIAL MEDIA
n d l y s e r vice
$ S TA F F COS TS
RK
MA
IENTS INGRED $$$$
in-
hou
s e n u t ritio
t nis
ING
ET
TS EVEN
7
fixed
THE HUNGRY HIPPIE
CUSTOMER SEGMENT Demographic (Market) Gender: Any Age: 25 - 40 years old Occupation: Young Working Adults Income: Middle-income level ($2K-$3K) Education: University Marital Status: Any Personality: Passionate about eco-living, health conscious Lifestyle: Healthy Psychographics (Behaviors) Our target audience are health conscious young working adults Willing to take a little extra time and spend a little extra moneyto eat healthy, naturally-grown food He/She knows the health and environmental promise that organic quality food brings Would consciously look for organic labels in grocery stores and be more inclined to buy from socially conscious brands elsewhere
UNIQUE VALUE PROPOSITIONS
At the Hungry Hippie, we pride ourselves at being distinctively 100% natural and organic. It is uncommon in Singapore that organic food establishments are 100% organic. Most are only partially organic. We also set ourselves apart from the competition by having organic meat included into our menu. The Hungry Hippie wants to be accessible to our customers which is why we have chosen Haji Lane as our location. A prime location easily accessible and often patronized by individuals from our specified target market.
The Mood Menu is the brainchild of The Hungry Hippie. Not only do we just want to take care of your body, but your mind and soul as well. Research has proven that there are various types of foods that can help ‘medicate’ undesirable moods. For example, dark chocolate is a great comfort food that can help lower levels of stress. We selected key ingredients with such ‘healing’ properties and developed a menu based on such ingredients.
CHANNELS Awareness: We intend to organize prelaunch campaigns and events to create a hype. We hope that the prelaunch teaser would spread by word of mouth and get the public curious at what The Hungry Hippie is about. Purchase: Customers will be able to locate us through our website. Once we are located, customers are able to purchase our food through our restaurant or through our delivery services.
CUSTOMER RELATIONS The service at The Hungry Hippie will always be friendly. We welcome anyone and want all our customers to feel comfortable and at ease. Feedback is always welcomed through our social media platforms. Customers are able to be updated by getting the latest happenings at The Hungry Hippie through these platforms as well. The Hungry Hippie plans to align ourselves to events that supports our values which is healthy eating and green living. We will participate in or organize such events and invite our customers to join us. One such example is ‘The Color Run’. 8
We will be inviting a nutritionist down to The Hungry Hippie once every four months. This would be an added service for customers who wants a better control of their health and eating habits. The nutritionist will also evaluate and ensure the food we serve are proportionally and nutritionally balanced for our customers.
REVENUE STREAM Our only income would come from the food we sell.
KEY RESOURCES
Our main key resource is our organic ingredients from both plant and animal origins. We would also need a restaurant space equipped with a kitchen and all the necessities, chefs included, in order to be able to cook and serve our food.
KEY ACTIVITIES
The Hungry Hippie’s main key activity is to purchase organic ingredients for our food. Staff training is also a crucial key activity. We want our staff to not only be friendly but also provide impeccable service for the customers. They need to be knowledgable of the nutritional information relating to the food we serve.
KEY PARTNERS
The Hungry Hippie main key activity as mentioned above is to purchase organic ingredients. With that in mind, we plan to seek partnerships with organic farmers - local and international. In the long run, we hope to expand our services to be able to partner with various gyms and yoga studios as an added value to their customers’ workouts. 9
COST STRUCTURES Fixed: Restaurant Space Employees Salaries Staff training costs Variable: Organic ingrdients Marketing campaigns
04/ Products & Services
BUSINESS CONCEPT The concept for this organic café and bistro blossomed from our passion and love for not only real natural food but also the environment. The Hungry Hippie’s products are 100% Organic. We are different than most organic food establishments for having meat included in our menu. We are also best known for our Mood Menu and Digitalized Ordering System that enhances the entire customer experience during their visit to The Hungry Hippie.
a. MOOD MENU At The Hungry Hippie, we not only want to take care of your body, but your mind and soul as well. That is why we introduced the Mood Menu. Research has proven that there are various types of foods that can help ‘medicate’ undesirable moods. For example, dark chocolate is a great comfort food that can help lower levels of stress. We selected key ingredients with such ‘healing’ properties and developed a menu based on such ingredients. The Mood Menu compromises of 3 moods - Sad, Stressed and Tired.
SAD STRESSED TIRED Below is a proposed starting menu for The Hungry Hippie: SAD
11
STRESSED
TIRED
APPETIZERS
Salad / Soup / Bruschetta
MAINS
Wrap / Pasta / Rice
DESSERTS
Nut Based Cake / Fruit Based Cake / Dark Chocolate Brown Rice Ice Cream
BEVERAGE
Fresh Juice / Coffee / Tea
THE HUNGRY HIPPIE
The formula we developed for the mains of the Mood Menu is as follows:
KEY INGREDIENT + TYPE OF MAINS +
(BASIC) In each category, there will be a specified key ingredient(s). These key ingredients are those that research have proven help ‘medicate’ each of the undesirable moods. For example, one possible key ingredient for the Sad category could be asparagus which has anti-depressant qualities. The key ingredient(s) would then be implemented into the type of mains the customer chooses; burger, pasta or rice. The last stage is chose whether to include meat, chicken or seafood into the mains. This would incur additional charges. The vegetable based main is the basic.
b. HUNGRY HIPPIE eMENU
Often than not, efficiency plays a big part in the customer’s dining experience. Prompt service and quick response time for the food to reach the customer is crucial in satisfying today’s customers. Taking that into consideration, we have decided to implement a digitalized ordering system. This systems allows the customers to have the freedom to take as much or as little time to take their own orders without the hassle of flagging down a staff. They can even make multiple orders. If they need any assistance, there is a button implemented to the system that will immediately call for a staff to their table when clicked. 12
The eMenu is just as beneficial for The Hungry Hippie’s management team. These orders would go directly go to the kitchen hence cutting out the staff response time needed to manually process the orders and send the orders to the kitchen. We are also able to accurately track the customers’ orders and record the time taken for the orders to be delivered to their table. This would be good evaluation of how efficient our service is. However, that is not the only feature of having our menu and ordering system digitalized. The Hungry Hippie does not only want to serve tasty healthy food, we want to share why the food on our menu is good for the customers. When one looks through the digital menu and click on a food item, they would be able to look at the nutritional facts of that food item. The final feature of the digitalized system is that we have several original Hungry Hippie games on it. Customers can unwind and have fun playing those games while they wait for the food to reach their table. (See Appendix for screenshots of eMenu prototype.)
c. FOOD DELIVERY SERVICE The Hungry Hippie understands that there are working professionals who are too busy to go out for a proper lunch during their break. We want to ensure that a healthy lunch is still made available for them to have at their office desk which is why we offer food delivery services. Delivery services are made available through our hotlines. At the moment, we are only able to deliver to locations around the vicinity of The Hungry Hippie. Also, calling customers should place their orders an hour before the time they want to eat to allow us to prepare and deliver to their locations. (See Appendix for area of delivery.)
13
05/ Market Research & Analysis
RESEARCH METHODS We have conducted extensive research covering areas like market trends, operating structure and public appeal which gave us conclusions based on credible statistics, interviews and face-to-face surveys.
a. PRIMARY RESEARCH The Hungry Hippie went down to both Raffles Place and Bugis to conduct a face-to-face survey targeted at a specific age group as well as individuals we saw fit as potential customers. The survey questions relates to their dining habits and preferences. The purpose of the survey was to review the public’s appeal of purchasing and consuming organic food as an alternative healthy lifestyle. This gave us a wider perspective to how open young Singaporeans are to healthier food options such as organic food as well as their spending power when it comes to food. The results of these surveys are represented by charts and graphs to better visualize our findings. We have also went down to our competitors namely, VeganBurg and Real Food to get a first hand look at the quality of service, food and ambience they provided. We also conducted interviews with a few of their customers to find out their preference and experiences. Both the survey and interview was done in order to gauge the marketability of our product as well as find out what dining customers are looking for.
b. SECONDARY RESEARCH
The Hungry Hippie conducted a detailed research on our competitors on periodic basis. We reviewed their different marketing approach in terms of products, customer service, business ethics and prices. Apart from that, we searched other sources such as Spire Research online articles and accurate statistics from government sites which we then extracted the relevant data pertaining to our business for our market analysis. 15
THE HUNGRY HIPPIE
MARKET ANALYSIS a. Survey Result The objective of this survey is to find how the eating habits of our target audience are like as well as to guage the marketbility of our products. We gathered 30 responses for this survey. Below shows a pie chart analysis of the survey results.
GENDER
INCOME GROUP 40%
60%
33%
47%
13%
7% Female
S$2000 & below
S$3001 to S$4000
Male
S$2001 to S$3000
S$4001 & above
The result show that only 40% of the males responded to the survey compared to 60% belonging to the female.
Among our respondents, 47% of them earn between the range of S$2501 to S$3000, while the 13% who earn between S$3001 to S$4000 can still be part of our target audience. Only 7% earn S$4001 and above, which is out of our target group.
16
USUAL LUNCH VENUE CHOICE 30%
50%
DINING EXPENDITURE 20%
34%
40%
20%
6% Others (Cafe, Restaurants, etc)
Fast Food Hawker Centres / Foodcourts
S$9 & below
S$16 to S$20
S$10 to S$15
S$21 & above
A majority of 50% of the respondents are accustomed to going to fast food outlets when they dine out for lunch. 30% of the respondents have thier lunch at the hawker centres / foodcourts. The remaining 20% are made up of respondents who go to other forms of food establishments such as restaurants or they go home to eat.
Among our respondents, 34% of them spend S$9 and below each time they dine out. A majority of 40% will spend S$10 to S$15. The remaining 20% and 6% will spend S$16 to S$20 and S$21 and above respectively.
IS HEALTHY/ORGANIC HARD TO FIND?
NAME A PLACE (HEALTHY/ORGANIC)
100%
84%
Yes
Able to
No
Unable to
All of our respondents found it difficult to find healthy or organic food establishments in Singapore.
17
16%
Out of 30 respondents, only 5 were able to name a healthy eating establishment that they either know of or have been to before. A whooping 84% were unable to name one. Out of this percentage, majority of the respondents do not have a proper perception on what healthy food is.
THE HUNGRY HIPPIE
OPT FOR ORGANIC FOOD?
16%
84%
HOW MUCH ARE YOU WILLING TO PAY?
20%
43%
24%
13% No
S$9 & below
S$16 to S$20
Yes
S$10 to S$15
S$21 & above
A whooping 84% of the respondents show that they will opt for a healthier organic meal if such eating establishments are made more accessible.
Among our respondents, only 20% of them are willing to spend S$9 and below. It is comforting to know that the majority of a total of 80% of the respondents are willing to pay S$10 and above for a fully organic meal.
b. Conclusion From these findings, we can conclude that in general, most of the people find that healthy or organic food is not as easily found in Singapore as compared to thier conventional counterparts especially fast food outlets. There are quite a number of respondents though who do not have the proper perception of what can be labelled as healthy food. Yet, given a choice, they would ultimately choose a healthier option to have thier meals. A high percentage of 84% would opt for a healthy organic meal if only located in a prime location where it is easily accessible. When it comes to matters of money, most respondents understand that healthy or organic food would be more expensive than concentional ones. Based on the results, this concludes that these individuals are willing to spend extra money for high quality food that is nutritionally healthier for them.
18
STRATEGIC ANALYSIS a. P.E.S.T
Being well known for its pro-business environment, Singapore has been rated as one of the best places to start a business. Several organizations such as the Inland Revenue Authority of Singapore (IRAS) has been set up to come up with new solutions to help make it easier for businesses to start up in Singapore. The government strives to maintain Singapore as an enterprise friendly country to allow its economy to grow. The government in Singapore is a reliable one, doing an outstanding job to maintain peace and stability in any situation. (Refer to Appendix - p.e.s.t research)
Singapore’s economy is on a healthy growth path and is very stable. The Food and Beverage (F&B) industry plays a vital role in Singapore’s economy. Its vibrancy supports the cosmopolitan flavour of Singapore. Singapore has been ranked alongside Hong Kong and Australia as one of the three major eating capitals in the Asia Pacific region. The industry offers tremendous entrepreneurship opportunities because of its low entry barriers. With more than 6,500 establishments and close to 100,000 staffs, Singapore realized that it has to support the F&B sector. The F&B Capability Development Programme (CDP) was launch in 2007 to encourage the development of innovative F&B concepts, products and processes critical to Singapore’s quest to become a gastronomic capital in the region. Also, the Food Safety Programme for the F&B sector was launched in 2006 to ensure that our local F&B industry is able to demonstrate that the food we serve meets international food safety standards. The National Environment Agency (NEA) has also become stricter with their safety and hygiene standards for f&b establishments in Singapore.
19
THE HUNGRY HIPPIE
In 2012, the Chinese formed the majority at 74% of the resident population in Singapore. Followed by the Malays with 13% and the Indians with 9.2%. The latest 2010‘s National Health Survey revealed Singapore’s obesity prevalence rate which came in at 6.9% in 2004, has now risen to 10.8% in 2010. (Refer to Appendix - p.e.s.t research) The Health Promotion Board (HPB) was set up in hope to promote healthy lifestyles to Singaporeans. HPB engages in ongoing efforts to educate the general public via media campaigns and road shows that focus on how to make healthier lifestyle choices and which feature specific themes such as eating a balanced diet, healthier food preparation, lowering fat intake, reading food labels, and tips on achieving weight loss. These campaigns also encourage physical activity. These campaigns include the ‘Healthier Dining Program’, introduced in 2003 to increase the availability of healthier dishes in restaurants. To encourage patronage of healthy restaurants, HPB runs articles in food magazines and national newspapers and conducts quizzes and competitions. A list of healthy restaurants is published on HPB’s website for the public to refer to.
Singapore is a fast developing country with high-speed internet services. Singaporeans getting more digital and tech savvy. Having realized the potential of technology, many companies are starting to venture digital marketing methods to target and reach a bigger target audience or to enhance a customer’s experience. The Technology Innovation Programme (TIP) was introduced by SPRING Singapore to encourage the development of technology in small medium enterprises by providing them with the right technology platforms and finding experts who will help. One notable solution was the introduction of digitalized menus. (Refer to Appendix - p.e.s.t research) 20
b. INDUSTRY Singapore is widely known as the food paradise of Asia. The F&B industry here is one that is continuously striving. Low entry barriers makes it easier and more attractive to venture into a business in the this industry hence resulting in the steady rise in the number of F&B related businesses that we can evidently see opening in Singapore. Within the F&B industry, organic food, though limited, is not an entirely new trend in Singapore. There is a growing demand for organic food however the number of organic food business ventures is significantly lesser when compared to conventional food businesses possibly due to higher initial cost, import costs, manufacture costs and strict organic regulations.
21
THE HUNGRY HIPPIE
THREAT OF NEW ENTRANTS High • Low entry barriers • Idea easy to replicate Low • High entry costs Singapore well-known for having a business-friendly environment is an ideal place for aspiring entrepreneurs to start-up their business ventures. However, entering the Food and Beverage (F&B) industry is quite tough. Statistics show that there are more than 6,500 F&B establishments currently operating in Singapore and this number will likely continue booming in years to come. This will definitely amount to a fierce competition especially with our established main competitors. To counter and resist the attacks of major competitors, we realized that serving top-notch quality, superb tasting food is just not enough. Consumers today are also becoming more particular at the service provided when they dine out. We plan to create a warm, friendly customer-centric environment and service within The Hungry Hippie. We want our customers to be at ease, unwind, relax and better yet have fun while they have their meals at our establishment. However, being an organic food provider ultimately means higher entry costs. High material and shipping costs are unavoidable. Thus, this could deter new entrants from entering the organic food sector in the F&B industry. The Hungry Hippie plan to lower material and shipping costs by working together with the local organic farms that we do have here in Singapore. We will also import fresh food products from countries in the neighboring region. Only items that are limited in supply within the region will be imported from countries where they are available.
22
BARGAINING POWER OF SUPPLIERS High • Difficult to find local suppliers Low • Many suppliers from overseas • Relatively low switching costs for suppliers in the long run Finding local sources for organic food ingredients is currently hard and very limited in Singapore. Furthermore, there is no way we can substitute our ingredients. A fully organic meal must be made from 100% organic ingredients. This means that our suppliers bargaining power and switching costs will be high at the start. Therefore, we must maintain a good relationship with our suppliers. Setting up medium or long-term contracts with our suppliers is important to ensure mutual benefit. This will also ensure a constant delivery of products and a better price hence keeping the switching costs low. However, the green and eco-friendly lifestyle trend is now rising in popularity. Our consumers will eventually become more educated about the chemicals used in conventional farming and the long-term effects such chemicals will have in the food they eat as well as in their bodies. In the long run, organic food will become the standard of the F&B industry and there would be a decrease in bargaining power in from our existing suppliers.
23
THE HUNGRY HIPPIE
BARGAINING POWER OF CUSTOMERS High • High switching cost • Customers can find substitutes easily Low • Rising consumer demand • Limited organic food prodivers In Singapore, majority of the consumers here are very price conscious, and purchase decisions are often largely based on value for money. Organic food is often more expensive. Therefore, the consumers bargaining power rises aggressively when they are not able to see pass the costs and opt for meals that are more affordable. And because F&B establishments can be found anywhere, consumers can easily reach out to different substitutes in the market. However, nowadays the consumers are looking at ways of living a healthier lifestyle, especially with hectic work schedules and busier lifestyles. Rising disposable incomes and increased awareness about healthier living have increased the demand for organic products, and decreased the demand for genetically-modified foods. In addition, there are limited organic food providers here in Singapore thus, generating low bargaining power amongst our target market.
24
THREAT OF SUBSTITUTES High • Easy to switch to conventional food providers • Organic food being pricier • Only one outlet as of current Low • Limited organic food providers • Company’s competency and knowledge in nutrition and organic food The threat of being substituted is huge. As stated earlier, statistics show that there are more than 6,500 F&B establishments currently operating in Singapore. There is a large number of non-organic food establishments, most of which is more affordable, that the consumers are able to choose from. Home-cooked foods are also means of substitution. Besides, as of current, The Hungry Hippie will only have 1 outlet to begin with. The inconvenience of only having a single outlet may result in substitution as it will be more difficult for the consumers to access our products. However, we cannot discount the fact that there are limited organic food establishments in Singapore. There will be a low threat of substitutes if our consumers are dedicated to buying from socially conscious brands and support the consumption of organic foods. Starting up a venture in the organic food industry means that as a company, we know what we are doing and that we are strict with the sources of our food ingredients. Consumers trust that food from The Hungry Hippie is guaranteed 100% organic.
25
THE HUNGRY HIPPIE
BARGAINING POWER OF COMPETITORS High • Well-known veteran main competitors Low • 100% organic • Meat included in food menu Being a new business venture means that initially, we will not be very visible to our consumers. We face strong main competitors who are well-known and are veterans in the organic food industry thus, there is a possibility of ending up being struck down by these experienced competitors. The Hungry Hippie strategy is emphasizing more on being 100% organic. As of current, there are close to zero competitors that serves 100% organic food. Almost all competitors in the organic food industry serves food that are only partially organic. Also, majority of the competitors serves only vegetarian food. We want to debunk the perception that being organic means eating only plant-based food. By including meat into our menu, we are generating a bigger audience to our products.
26
c. MARKET i. Market Size and Demand The organic market in Singapore began as early as 1990s. In the last 10 years or so, an increasing number of Singaporean consumers began to take interest in healthy food, especially with health scares, such as Avian flu and Severe Acute Respiratory Syndrome (SARS), that have afflicted Asia in recent years. The scares, some involving foods, are making Asian consumers more discerning when purchasing food products. Organic food and drinks have now become popular as they are perceived to be healthier and more nutritious than conventional products. The rising consumer awareness of organic foods coupled with the increase in retail distribution of organic foods and the expanding number of organic food retailers has resulted in the continuous increasing demand for organic food. With this continuous demand, the organic market size has been seen expanding as well. Singapore’s organic food consumption market valued at under S$10 million in 2002 has risen in value to S$68 million in 2008 and growing at 20% to 30% a year. The findings of a recent joint study by Spire Research and Consulting and the S.P. Jain Centre of Management show that organic food consumers are a loyal base of customers, paying premiums of over 100% over non-organic food, recommending organic food to people they know and accounting for close to S$ 70 million in revenues a year. (Refer to Appendix - Market Research) This simply proves that there is a demand for organic foods in Singapore regardless of it costing a more premium price over non-organic ones.information relating to the food we serve.
27
THE HUNGRY HIPPIE
ii. Projected Market Share The F&B market in Singapore is already heavily saturated. However, there is always room for new entrants who are ready for great competition. The total value of the organic industry in Singapore was S$68 million in 2008 with a continuous growth of 20% to 30% a year. Thus, the organic food market is expected to continue to grow rapidly for the foreseeable future. The Hungry Hippie hopes to tap into and capture a small percentage of this large market share and will steadily increase with all the marketing that we have planned for years to come. iii. Market Growth Trends The growth of the organic food industry is linked to the current trend in Singapore of searching for a healthier lifestyle as well as being more aware of the environment and to make the world greener and a better place to live in. As mentioned in earlier segments, one reason for the demand of organic foods is due to the presence of health scares hence the search for a healthier lifestyle. The obesity prevalence rate in Singapore has increased from 6.9% in 2004 to a whooping 10.8% in 2010. It is within this period when the consumption of organic food began rising as organic food was perceived to be healthier and more nutritious than conventional products. Also, there is a rising tide of public awareness over the deterioration of the earth’s environmental state. More individuals are opting to adopt green practices. This would include eating organic food from organic agricultural farms which adopts sustainable farming methods which in turn
would help in the restoration of the environment. iv. Consumer Preference Trends Market research demonstrates that the organic food consumer in Singapore is loyal, less price-sensitive and motivated by a range of considerations. The two defining trends today among Singapore’s educated consumer base are of lifestyle awareness and environmental social responsibility. The global green revolution is gaining momentum and is changing how people consume. Consumers today have become more discerning about what they eat especially when it concerns their health. As these views gain momentum, so does the demand for organic food which is widely perceived to be both wholesome and environmentally friendly. v. Barriers To Entry The organic market within the F&B industry is one that is still growing but there are several potential barriers to entry that still exist. High prices of organic foods might deter consumers from buying organic food. The exceptionally high price premium is because of high import and distribution costs; most organic products are imported overseas. In addition, although awareness is increasing, there are still very few consumers who have a good understanding of what organic foods are and what the production method involves. This low knowledge of organic foods might prevent higher sales of organic food and beverages.
28
d. COMPETITORS There are a few competitors in Singapore but only three have the similar aspects of our business: VeganBurg, Nothing But Green and Real Food, our primary competitors. ii. Primary Competitors Nothing But Green
Real Food
The Hungry Hippie
Eunos, Marina Boulevard, The Grandstand
Circular Road
Clarke Quay, Square 2, Killiney, Penang
Haji Lane
3
2
Unknown
0
None
Classy
COMPANY
VeganBurg
LOCATION
YEARS IN BUSINESS IMAGE/STYLE PRODUCTS
Young, Hip, Green 1. Vegetarian food mainly in forms of burgers.
1. Plant and meat based organic food.
Young, Hip, Green
1. Vegetarian organic food. 2. Sells organic cooking books and ingredients
100% plant and meat based organic food.
2. Only burger buns are organic.
2. Sells organic products as well.
CUISINE
Western Fast Food
Deli & Asian
International
International
PRICE RANGE
S$5 - S$12
S$8 - S$13
S$4 - S$15
S$8- S$25
DELIVERY
Yes
Yes
No
Yes
TARGET MARKET
20 - 35 yrs
28 - 40 yrs
28 - 40 yrs
25 - 40 yrs
ii. Conclusion In conclusion, we noticed that VeganBurg is likely to become our strongest competitor. They are veterans in the organic food industry and pose a prominent threat since they are wellestablished, having a few branches in Singapore. VeganBurg is fully vegetarian. However, only their burger buns are organic. VeganBurg portray themselves as hip, young and fresh which is what we aim to be. Real Food is a strong competitor as well. Just like VeganBurg, they have a few branches in Singapore and even one overseas. Real food also only serves vegetarian meals which are partially organic. Whereas VeganBurg portray themselves as hip, young and green, Real Food gives off a classy image and can often be portrayed as having a strict, no nonsense identity. 29
THE HUNGRY HIPPIE
e. S.W.O.T ANALYSIS
STRENGTHS • High quality organic ingredients • Distinctive on being 100% organic (plant & meat based) • Favorable location • Fun, passionate and committed management team
The main strengths of The Hungry Hippie lie in attracting our consumers with high quality healthy, wholesome food without compromising on taste. We are distinctive on serving scrumptious food prepared using only 100% organic ingredients from both plant and animal origins.
Our company is proud to have a team of fun and passionate personnels that strive to give top quality food and service to the customers. We demonstrate our commitment to employees as well by creating a warm and friendly work environment that reflects our values.
Haji Lane is where The Hungry Hippie calls home. This lane is popular amongst the young people who frequent the quaint boutiques and well-known cafes set up by local designers and young entrepreneurs. Haji lane is easily accessible via Nicoll Highway, public transportation, Bugis or Nicoll Highway MRT station.
30
WEAKNESSES • Small, new business venture • Idea easy to replicate • High start-up cost and managing cost
As a new entrant to the organic food industry, we are small and inexperienced. With only one main branch, we are next to invisible when compared to popular veteran competitors such as VeganBurg and Real Food who each have a number of outlets around Singapore respectively. The organic food business, though small, it is not a new trend in Singapore. Replicating our idea of opening and organic café and bistro can be easily done. This would in turn create more competition for our business. Going organic is a costly decision. Being 100% organic would entail a much higher start-up and managing cost as compared to already high costs if we were just partially organic. Unlike being 100% organic, a partially organic food business would be able to save money since part of their ingredient list are inorganic and therefore would cost cheaper.
31
THE HUNGRY HIPPIE
OPPORTUNITIES • Rising demand for ‘safe’ foods • Increasing awaress for green lifestyles • High start-up cost and managing cost
Singaporeans are being more conscious of what they are eating. It is no longer just about the cleanliness of the food and if it passed food safety inspections. Instead, there is also a demand for a return to simpler, healthier and less chemically dependent food. This has led to the creation of a niche market in the F&B sector: organic food - which is what The Hungry Hippie is selling. Today’s society are becoming increasingly aware of the environment and many have stepped up by practicing a green lifestyle . This creates an opportunity for organic food establishments. By practicing a green lifestyle, the consumers would understand the benefits of organic farming. Every meal one eats that supports an organic, sustainable farm changes the agricultural
world which would in turn slowly yet surely help restore our global environment to a healthier, greener state. As mentioned earlier, being organic would entail a much higher start-up and managing costs. Though this is a weakness, it can also be an opportunity as the costs might demotivate new entrants from venturing into the organic industry which would mean less competition for us.
32
THREATS • Lack of organic food regulations in Singapore • High cost of importing organic ingredients • Higher food cost
Being organic requires strict evaluations and certifications. In the U.S., they have organic certifications such as the USDA Organic Seal. However in Singapore, we have yet to have a proper national organic certification procedure. Hence it would be harder to determine if fresh produce from locally claimed organic farms are truly organic. If The Hungry Hippie’s food is not organic, there would be a breech in our beliefs, ethics and values. This is the biggest imminent threat that could in turn affect and create more threats to our business. There are few sustainable, organic farms in Singapore and organic products do not come cheap here. Most of our country’s organic produce are imported from other countries such as Malaysia and U.S.A. Importing costs can be expensive and this would definitely
33
bring up the cost of the food on our menu. With 100% organic ingredients, our menu price would be higher as compared to conventional food. We could deter customers who are on a budget and opt to have their meals at a cheaper establishment.
06/ Market Strategy
TARGET MARKET i. Demographic (Market) Gender: Any Age: 25 - 40 years old Occupation: Young Working Adults Income: Middle-income level ($2K-$3K) Education: University Marital Status: Any Personality: Passionate about eco-living, health conscious Lifestyle: Healthy ii. Psychographics (Behaviors) The Hungry Hippie’s ideal customer is someone who is willing to take a little extra time and spend a little extra money to eat healthy, naturally-grown food. He or she knows the health and environmental promise that organic quality food brings. The customer knows that organic food tastes as good as, or better, than conventionally grown good, and believes that there does not need to be any difference between eating what is good for the environment and eating what is healthy. This ideal customer would look for organic labels in grocery stores and be more inclined to buy from socially conscious brands elsewhere.
TARGET AUDIENCE PERSONALITY PROFILE (TAPP)
35
Elinur is a 25-year-old female; her income is $25,000 per annum. She works as a creative designer. Her interest is recreation and sports related activities. She likes nature, willing to do a part to protect the environment and love greeneries. She has always have a preference for home cooked meals over convenient fast food outlets as she can have better control of the healthiness of her food. However it is inconvenient for her to prepare home cooked lunch to bring to work and often have to resort to dining out. Our promise of high quality, nutritionally balanced food will attract Elinur in patronizing The Hungry Hippie.
THE HUNGRY HIPPIE
Sean is a 30-year-old male; his income is $30,000 per annum. He works as marketing executive. He comes from a background where majority of his family members suffers from obesity related ailments. Since young, he has been accustomed to eating fast food due to their affordability. Recently, he has taken on a personal quest to live a healthier lifestyle. He spends his free time with recreational activities like running in hopes of joining a marathon soon. Now, he has decided to change his eating habits as well and is constantly on the look out for eating establishments offering healthier food options.
UNIQUE VALUE PROPOSITION The Hungry Hippie is a bistro and café built around the belief that eating healthy meals can have a significant impact on a person’s health and attitude. We truly do believe that organic food is not a gimmick - it is a path to a healthier and more sustainable life. We also believe that customers need not give up good taste in order to eat healthily, as the right recipes can bring the two together.
DIFFERENTIATION (PRODUCT) The differentiation between The Hungry Hippie and our competitors is our food are distinctively 100% natural and organic. It is uncommon in Singapore that organic food establishments are 100% organic. Most are only partially organic. We also set ourselves apart from the competition by having organic meat included into our menu.
We believe customers will accept these higher prices because of the value they place on their health and the environment. If the difference between non-organic and certified organic is only 15%, certain customers who value this difference will accept that extra expense and consider it the price of eating a healthier meal. PRICE RANGE S$ APPETIZERS
8-10
MAINS
17 - 25
DESSERTS
6-7
BEVERAGE
4-5
PRICING We intend to charge prices that are, on average, 15% higher than some bistros and cafés. This is necessitated by the smaller scale of The Hungry Hippie and by the higher quality ingredients that it purchases. 36
LOCATION The ideal location for our business would be in Haji Lane. The age group of those gathered here falls into the criteria our company is targeting. Haji Lane is known to have a trendy, indie vibe which matches The Hungry Hippie’s image. The area is also easily accessible via Nicoll Highway, public transportation, Bugis or Nicoll Highway MRT station.
PROMOTION As a new entrant into this industry, promotion is a key area in our marketing. We plan to stir up curiosity and create an awareness for our brand by first having ambient prelaunch campaigns. Technology has become a very important part of our lives. People have become very tech savvy. Seeing this as an opportunity, the use of social media and websites will help get us the response and awareness we are looking for. Such platforms helps us be more reachable to our customers whereby they can get real-time updates of the latest happenings of the company as well as serves as a communication tool for our customers to give us feedbacks. Apart from the above said methods, we would also have in-house events or even participate in events that supports The Hungry Hippie’s values. We would would invite our customers to join us in such events. This would help establish and retain our fan base.
37
07/ Customer Management Strategy
Just having great tasting food alone is not enough to sustain a customer’s satisfaction during his or her dining experience. This is why our company will focus more on front-line services. The store attendants are our front-line and they represent The Hungry Hippie’s image. Therefore, they need to be adequately equipped with the right set of communication skills and product knowledge. Firstly, a Hungry Hippie store attendant need to project a warm and friendly attitude yet professional attitude towards the customers. They should always serve customers with a smile and offer and provide assistance to them. This will make way for better communications between the customers and staff which in turn will allow the company to receive more feedbacks from the customers. These feedbacks will make way for The Hungry Hippie to improve on our service and better ourselves to meet customers’ expectations further. Secondly, all Hungry Hippie store attendants need to be knowledgeable about our food - from ingredients of what each dish is made up of as well as how the dish is nutritionally good for the customer. Providing accurate information and explaining these details will show the customers that we are credible and passionate about the food we serve.
39
THE HUNGRY HIPPIE
TOUCH POINTS
1. 2. The first step to our consumer touch point is to get seated. Hungry Hippie store attendants will find our customers seats and guide them to get settled down for ordering. These attendants will be always be around to attend consumers if they need help.
4.
The Fourth step: Bon appetit! Our customers will now enjoy the meal we whip up for them with love.
Consumers will then place thier orders using our digitalize and interactive eMenu. They order by the mood they’re feeling. Then on our menu will suggest what will be the best choice of food for their mood condition.
3.
While waiting for food to be served, consumer could engaged in our third touch point, mini gameplay or health fun facts on the ipad so that they don’t feel bored. Or they can just stare blanky at our psychadelic walls.
40
5. Upon finishing thier meal, consumers will click the ‘Call For Bill’ icon on the digital eMenu. A store attendant will bring thier bill to the table where they can make payment at the counter.
6. As they make thier way out of Huungry Hippie, we will offer them a small complimentary snack to show our appreciation for coming down to our cafe. Ending off with well wishes that they will have a good day ahead.
RELATIONSHIPS, EXPECTATIONS & EXPERIENCE At The Hungry Hippie, we strive to build long lasting and strong relationships with our customers. We want them to feel as though they are part of our family. We believe in giving our customers an unforgettable experience and will go the extra mile to ensure they have a good time. Attention needs to be given to our customers the moment they enter; first impressions always makes the strongest impacts. With this, customers will enjoy a wonderful dining experience with us and hopefully through word of mouth, customer traffic and sale volumes will increase. We also believe in making promises we can keep and once a promise is made, we never go back on our word. The customer always expects the best quality fresh and natural meals from us. We will ensure all ingredients will go through quality checks to ensure they are of organic value as well as fresh. This will allow customers to build trust in our products.
41
08/ Brand Strategy
BRAND NAME & STORY The Hungry Hippie Fast-paced and stressful is the society today. We have evolved to be such busy people that convenience is preferred in any situation; inclusive of the food we eat. The Hungry Hippie encourages Singaporeans to slow down for just a few moments in the midst of their hectic lifestyles and consider the healthfulness of what he or she is eating. This daily choice is extremely important both for the individual and for the environment, and we want to help them make the decision that is beneficial for both.
BRAND LOGO & SLOGAN i. Logo Organic food is often portrayed as strict and serious. The Hungry Hippie aims to break away from this image. The logo should reflect our personalities. By our definition, a hippie is one who embraces life to the fullest. He promotes peace, love and happiness, but will definitely sticks up for what he believe in. The term “hippie” instinctively generates a certain image in our mind which is why we went literal and introduced the character “The Hippie” as part of our logo. Brown is used as the main color of the logo. According to color symbolism, brown is a warm color that stimulates the appetite. While it is sometimes considered dull, it also represents wholesomeness, friendliness, dependability, and health. These virtues are ones that The Hungry Hippie lives by. ii. Slogan The slogan for The Hungry Hippie is “eat healthy, be happy”. We believe that good food can bring you happiness. What more if the food you’re eating is 100% real and natural. 43
THE HUNGRY HIPPIE
BRAND DNA i.
Brand Essence Built around the belief that eating healthy, organic meals can have a significant impact on a person’s health and attitude, as well as the environment, we provide our customers with scrumptiously healthy meals. We do not want give up good taste in order to eat healthily, as the right recipes can bring the two together.
ii. Brand Personality The Hungry Hippie is managed by a passionate team of individuals who believes eating healthy can be fun especially if they do so at our bistro and cafĂŠ. We strive to be easy-going, friendly and welcoming as we want our customers to feel comfortable and at ease to unwind, relax and enjoy their time while they are at The Hungry Hippie. iii. Brand Promise Quality is what The Hungry Hippie is strongly associated with. The customer can count on us to deliver the best quality meals made from high quality, all natural ingredients. We promise no usage of preservatives and additives. iv. Brand Attrib ute The Hungry Hippie is credible and trustworthy. The customer can feel assured that the sources we get our ingredients are scrutinized before being purchased to ensure the quality and authenticity of the purity of those ingredients. v. Brand Benefits Dining at The Hungry Hippie guides our customers to a healthier lifestyle and also be part of the cause to maintain a sustainable environment. vi. Brand Audience The Hungry Hippie target market is aged between 25 and 40 years. 44
09/ Marketing Positioning
THE HUNGRY HIPPIE
POSITIONING STATEMENT The Hungry Hippie is a bistro and cafÊ with a casual friendly environment that provides customers with high quality 100% organic food. Unlike most of our organic food counterparts, we are not interested in conforming you to a vegetarian diet. We love our meats too! Only if it’s organic and done right.
POSITIONING FACTORS In the following chart, The Hungry Hippie identifies 4 main areas that we would like to focus and compare against the 3 selected competitors available in Singapore. The 4 main factors that we took into consideration are: price, organic percentage, appearance of the food and if they only serve plant based meals or include meats on their menu.
46
POSITIONING OF PRICE VS ORGANIC PERCENTAGE
These perceptual map above is based on measuring where we stand in accordance to the organic scale and price of our food. The conclusion that can be derived from this is that The Hungry Hippie provides fully organic meals at roughly similar pricing restaurants which are not 100% organic.
47
THE HUNGRY HIPPIE
POSITIONING OF APPEARANCE VS PLANT/PLANT + MEAT BASED
The above perceptual map is based on measuring where we stand in accordance to variety (plant based or plant and meat based) and appearance of our food. The conclusion that can be derived from this is that compared to the only competitor which serves plant and meat based meals, The Hungry Hippie recognizes that appearance is just as important as taste. We make it a point to be very detailed and creative to make the food seem more appetizing and appealing to our customers.
48
10/ Marketing Communication Plan
THE HUNGRY HIPPIE
Devising an Integrated Marketing Communication Plan is the key for businesses to make a brand awareness a success and move forward in the future. It is important for us to get in touch with the people, be it our target audience or just the general public. The primary aim of our plan at this moment is to introduce the existence of our company to the target audience as well as introducing them to what The Hungry Hippie is about and what we can offer them.
WEBSITE PLANS The Hungry Hippie’s website has the dual goal of getting potential customers to visit the physical store as well as be a fan of us. Products cannot be purchased over the website, but a menu with images of all items will be included. • Menu • Location (including map) & hours • Contact information • Jobs page with open positions • Blog articles on organic topics & recipes It is hoped that the growing content about organic food and recipes will increase the website’s visibility for related keywords.
50
SOCIAL MEDIA Social Media is a powerful tool we can use to get our message across to our target market. It is also the quickest and cheapest way to send information. A Facebook fan page for The Hungry Hippie site will be a venue for our customers to get real time updates of the latest happenings at the café/bistro. Blog articles on organic food and recipes that will be featured on the company’s website will be mirrored on the page as well. In a way, the fan-page will have the same goal as the website: to encourage prospects to visit The Hungry Hippie in person. Having the Facebook page will help deepen the connection between existing customers and The Hungry Hippie by providing a means for them to interact with us beyond their visits to the store. For example, our customers will be encouraged to post discussion topics about organic eating/cooking and “living organic,” and to post photos of themselves at The Hungry Hippie. Other social media platforms such as Twitter and Instagram will also be utilized. Another form of social media we will be utilizing is blogs. From time to time, especially during the launch of The Hungry Hippie, we would invite popular food bloggers such as ‘lady iron chef’ and ‘i eat. i shoot. i post.’ to have a meal with us and post about thier experience at The Hungry Hippie. These food bloggers have a large follower base and being featured on their blogs would allow us to reach a larger fan base. 51
THE HUNGRY HIPPIE
PRINT MEDIA Print media is the most classic form of media presentation. This platform might be considered traditional but it is still a reliable form of communication towards the consumers. Many people in Singapore still subscribe to or buy print media. The Hungry Hippie aims to use magazines as a print media platform to communicate to our audience. We would be targeting specific magazines that are aligned to our business such as food and lifestyle magazines. We hope to get such magazines to do write-ups on The Hungry Hippie to introduce us to the masses. This could create an effective impact towards our store.
AMBIENT ADVERTS Creating an interactive ambience in marketing is crucial and a useful form of communication. It is attention grabbing, helping to create a hype or awareness about the brand and thus promote our business. There are many forms of collaterals that can be used as an ambient advertisment. They could exist in forms of games, contests and many more. For The Hungry Hippie, we intend to adopt the usage of a series of both outdoor and indoor advertisments such as placing cutouts of The Hippie character all over the country. (Refer to Appendix - IMC) 52
PUBLICITY EVENTS Publicity event are the best way to increase brand awareness not only to our actual customers about also to the general public. This is the best way to show the masses what we serve. The Hungry Hippie plans to align ourselves to events that supports our values which is healthy eating and green living. We will participate in or organize such events and invite our customers to join us. One such example is ‘The Color Run’. There are also food and beverage events that we as a company take part in like The Food Revolution which supports the movement of real natural foods.
53
THE HUNGRY HIPPIE
IMC TIMELINE Integrated marketing communication (IMC) is a compilation of all the marketing tools that The Hungry Hippie will be using to aid the company in increasing its brand awareness and to also gain more potential customers. Apart from the five year IMC timeline projection, we have also added a pre-launch timeline which will act as teasers for the general public. This will keep them wondering what we are all about and also get them interested in when we launch.
PRE-LAUNCH IMC TIMELINE OCT
NOV
DEC
PEEK-A-BOOK HUNGRY HIPPIE ESCALATOR WEBSITE SOCIAL MEDIA
Often overlooked, pre-launch IMC is the part that happens before the actual start of the operations of the company. It is the best time to get people talking about and anticipating the opening of the company. To do so, we plan on launching our website and social media platforms three months before the estimated month of opening, which is in January of the following year. During these three months, we will be having our ambient advertisments around Singapore. These ambient ads are designed to start creating a brand awareness hype amongst the public.
54
IMC TIMELINE - YEAR 1 JAN
FEB
MAR
APR
MAY
JUN
WEBSITE SOCIAL MEDIA MAGAZINE NUTRITIONIST AMBIENT EVENTS
IMC strategy for year one is relatively simple. All the social medias platform will be up for the access of the mass public, We’ll be having an Opening event where we will be inviting magazine editors and food bloggers to patronize the shop, so as they could write us a review feature in the respective magazines. A nutitionist will be invited to The Hungry Hippie every quarter year to ensure our meals are nutritionally balanced as well as being an added opportunity for customers to consult them about their diets.
55
JUL
AUG
SEP
OCT
NOV
DEC
THE HUNGRY HIPPIE
IMC TIMELINE - YEAR 2 JAN
FEB
MAR
APR
MAY
JUN
JUL
AUG
SEP
OCT
NOV
DEC
WEBSITE SOCIAL MEDIA MAGAZINE NUTRITIONIST AMBIENT EVENTS
IMC strategy for year two will remain as the same as year one, but we will be having more ambient advertisements to promote special menus for festive seasons. From then on, we will commence our participation of events, like ‘The Big Walk’ and ‘The Color Run’ depending on if our consumers are willing to join us. We would also start participating food events such as ‘The Food Revolution’.
56
IMC TIMELINE - YEAR 3 to 5 JAN
FEB
MAR
APR
MAY
JUN
WEBSITE SOCIAL MEDIA MAGAZINE NUTRITIONIST AMBIENT EVENTS
For years 3 to 5 we will be following through all of those strategies we had for the previous years. At this point we will already have a more established foundation of what kind of activities that our consumers will like to join us in. From the on maybe we can plan according. It will still be health and enviromental related events.
57
JUL
AUG
SEP
OCT
NOV
DEC
THE HUNGRY HIPPIE
IMC BUDGET
UNIT PRICE WEBSITE
Host Value Plan: $120/yr Domain Name: $60/yr
COST (SGD) (in-house designer)
$180
-
$0
-
$0
-
$0
AMBIENT ADS
Platform Bugis station Per week $10,000 Circle line $7000 Floor sticker main $7800 Circle line $3000
$32,420
Outdoor Ad License $120 + $90 per sign MAGAZINES
EVENTS
SPH MAGAZINE CLEO $4200; Cosmopolitan $2500 Mens Health $2800; Her world $2580 Most of the events are health and enviroment events that the consumers have to join in their own free will, so the expenses will have to be paid by themselves However, we will set aside $2000 for those events which are organized by us or to use for Hungry Hippie to particitate in events
NUTRITIONIST
$12,080
Average monthly pay of nutritionist $3500 - $5000 Per hour $18 - 26
$4000
$624
$49,304 58
11/ Operation Plan
THE HUNGRY HIPPIE
ORGANIZATIONAL CHART
HEAD CHEF
CHEF
CHEF
60
MANAGING DIRECTOR
ADMIN MANAGER
• Oversees the company’s organizational structure and manages day-to-day operations.
• Handles daily financial records to ensure all finances are properly administered.
• Leads, motivates and develops the staff • Develop strategy and direction for the company
OPERATIONS MANAGER • Takes direction from managing director in ensuring that the business policy and imperatives are being accomplished by the staff.
• Manages the budget for operations, expenses and pricing of food menu • Maintains the company’s pay roll
system
• Prepares the company’s financial reports and ensures that the appropriate financial regulations are met • Oversees employment, staff welfare and training programs to improve and develop staff potential.
• Plan daily operation from the beginning and implementing them after approval from the managing director.
STORE ATTENDANT
• Liase with suppliers (i.e organic farms / providers)
• Meet customers services goals and standards and provide good customer service.
• Provide financial, marketing and human resource advice and guidance to the finance and marketing departments.
DESIGN + MARKETING MANAGER • Come up with the concept and design for any company collaterals and marketing tools. • Handle corporate branding and brand identity • Develop, establish and maintain marketing strategies, advertising and promotional activities to meet the business objectives. • Be the liaison for media and advertising. • In charge of overseeing all the events
• Manage day to day activities
HEAD CHEF • Create the menus • Maintain the kitchen and its chefs • Oversee the proper functioning of the kitchen and the plating of the dishes before it is served to the customer.
CHEF • In charge of all the prepping of the ingredients/raw materials • Keeps the kitchen at its best and makes sure it is clean and hygienic at all times • Oversee the proper functioning of the kitchen and the plating of the dishes before it is served to the customer. • Will do most of the major cooking and plating
61
THE HUNGRY HIPPIE
HUMAN RESOURCE POLICIES a. Salary Employees will receive their salary on the first day of every month, credited into their bank account. Salary is subject to CPF deductions at the applicable prevailing rates by the government. b. Working Hours Main office staff are required to work 6 days a week. Chefs are required to work 6 days a week in shifts and on public holiday. 1 day leave will be given in lieu. Part time staff are require to work 2 days a week in shifts. c. Overtime All employees are entitled to 12 days leave after 3 months of probation.
f. Compassionate Leave Employees are entitled to 1 week of compassionate paid leave and are requested not to come into the office till the end of 1 week. g. Workplace Safety All employees should take measures to minimize accidents in workplace as per the laws and regulations under Workplace Safety and Health Council. h. Termination Notice Based on the table given by Ministry of Manpower, all employees are to adhere to the notice period as stated. LENGTH OF SERVICE
NOTICE PERIOD
LESS THAN 26 WEEKS
1 day
Leave days, which have not been used, will be brought over to the next working year.
26 WEEKS TO LESS THAN 2 YEARS
1 week
Only a maximum number of 30 days can be used each year.
2 YEARS TO LESS THAN 5 YEARS
2 weeks
5 YEARS AND ABOVE
4 weeks
d. Sick Leave All employees are granted 12 days of sick leave and hospitalization leave will be granted as per the duration given by the hospital. e. Maternity Leave Female employees who have been with the Company for a minimum of 90 calendar days prior to the date of confinement, will be entitled to maternity leave. Female employees are entitled to a maximum of 12 weeks paid leave.
62
OPERATION HOURS Monday - Saturday : 10am - 10pm Sunday: Closed
LOCATION The ideal location for our business would be in Haji Lane. The age group of those gathered here falls into the criteria our company is targeting. Haji Lane is known to have a trendy, indie vibe which matches The Hungry Hippie’s image. The area is also easily accessible via Nicoll Highway, public transportation, Bugis or Nicoll Highway MRT station.
FLOOR PLAN Cafe & Bistro Space: 78.97 sqm
Ground floor Seating Capacity: 38 pax
63
THE HUNGRY HIPPIE
AMBIENCE
64
12/ Financial Budgeting
THE HUNGRY HIPPIE
CAPITAL INVESTMENT STARTUP EXPENDITURE
S$
Rental
16,500
Renovation
20,000
Hungry Hippie eMenu Software
10,000
Tablets & Computers
17,600
Food License + Permit
5,600
Delivery Motorcycles
6,800
Company Website
200
Opening Inventory & Equipment
50,500
Cash Register
500
TOTAL STARTUP EXPENDITURE
124,100
WORKING CAPITAL
450,000
CAPITAL INVESTMENT
574,100 RENTAL 14%
INVENTORY 44%
RENOVATION 17%
EMENU 9% LICENSES 2%
TABLETS & COMPUTERS 15%
66
PROFIT & LOSS YEAR 1
YEAR 2
754,970
826,200
937,170
197,948.10
206,550
234,292.50
557,021.90
619,650
702,877.50
Renovation
20,000
-
Rental
55,000
66,000
66,000
Staff Salaries
162,000
178,200
194,400
Staff Training
8,000
6,000
10,000
Part-time staff
34,560
38,016
41,472
IMC
119,728
34,512
20,992
41,480.11
41,997.54
Revenue Cost of Sales
GROSS PROFIT
YEAR 3
LESS OPERATING EXPENSES
Utilities
43,071.42
-
Ingredients
54,600
56,100
57,000
Shipping
24,800
28,200
30,200
1,800
2,160
2,640
Maintainence
3,055.92
3,055.92
3,055.92
Profit Sharing
7,549.70
12, 048.75
39,846.60
514,709.12
466,316.86
508,148.14
619,650
702,877.50
153,333.14
194,729.36
Motorcycle Allowances
TOTAL OPERATING EXPENSES Gross Profit
NET PROFIT/ NET LOSS
67
557,021.90
44,312.78
THE HUNGRY HIPPIE
RETURN OF INVESTMENT (ROI)
7.4% Yr 1
26.7% Yr 2
33.9% Yr 3 68
13/ Contingency Plan
THE HUNGRY HIPPIE
Co n t i g e n
cy
Bu
pla
si
n
s es
In every business, contains risk. No matter how fun loving and caring you are to your consumers, or how friendly and polite you are to your suppliers. The risk of business difficulty are inevitable.
n p e H ungry hip
i
e
Th
In “The Hungry Hippie”, we had carefully planned out our contigencies plan in case of any damaged to the business in terms of reputations or the loss of potetial consumers loyalty. We had set up a series of scenarios providing a solutions to all of the most potential risk we have got for our business. Those risk very well might cripple the fuctioning of the entire business or sent us out of industry.
Improper Food Handling
Shortage of Manpower
In The unlikely events of improper food handling causing consumers to be hospitalized, we will foot all hospital biils along with a formal apology to the consumers family and a press release addressing the issues assuring all measures are taken in order to get the customers back to good health and conditions. All responsiblities and actions will be taken only if proven that it was due to the company’s neligence in food handling that caused the customers to get ill and hospitalized.
The shortage of manpower is a common problem that every business face time to time. Our solutions to this problem is to hire more part timers to rotate around the monthly schedule. Just incase of any last minute changes of schedules from part timers, another part timer could take over straight. We will be consulting agency’s to find us a cook that specialised in the dishes in our business if at any point we are short of kitchen staff to run the show.
Organic Materials
Faulty Equipment
Cost of good is something that is very unstable in the “Food and Beverage” industry, Price inflation and deflations depends on alot of aspect. Basically if a storm or typhoon hits the farm or a outbreak of bovine disease could affect us real bad .Therefore “The Hungry Hippie” will keeping track and predicting change before the worst case scenarios hit our business and we’ll be preparing for higher budgets for ingredients to import and tie down to more suppliers as alternative solutions.
Relying on equipment to work steadily through out its predicted term is very risky. Equipments used on a regular basis faces high tendencies of wear and tear. In this unlikely event, Our chefs will be changing a few ways of cooking after the consultation and acknowledgment of the consumers themselves. Equipment will be replace or repair as soon as possible after being detected faulty so as to minimize the inconveniences of both kitchen staffs and floor staffs of our business.
70
14/ Business Roadmap
THE HUNGRY HIPPIE
Business roadmaps for the “hungry hippie” will show our plans for now and future. What we want to achieve every year. We will be explaining from the start of the business to the later years after, what kind of plans we have for our consumers and how to expand our outlets to make organic food more affordable to the mass publics. We will be covering our plans of having our own organic vegetable farm in the later years so as to be able to reap what we plant. We feel that it’ll be very interesting to eat your own effort. The plans will also reflects our perception toward how the business is going to grow each year. Road Map
Road Map
2 yr 1 yr milestone In year one, our main focus goes full fledge into the set up and renovation of our store front.Build a close relationship with suppliers and find us more organic suppliers for backups in case of rainy days. Create awarness to consumers and hopefully, Have a group of loyal consumers supporting the store.
milestone We will start to be actively involve in Health events and enviromental preserving events as to keep up to one of our core values.Build a close bondings with all of our consumers and spread the habits of healthy living to our follower.Be know by the mass publics and perhaps have a bigger family of stuffs to help out the operation in the shop front.
Road Map
Road Map
3 yr milestone
4 yr milestone
In year 3, we would like to plan for expanding the business to reach out to more of our targeted audiences. we would also like to be our own supplier, having a small farm to grow organic foods ourselves. Maybe our consumers could also join us in growing their own veggies in our farms to make it more interesting for our consumers.
Year 4 onwards, we would like to be well know throughout whole Singapore as a restaurant that caters the healthiest food in singapore.The best dinning expireince our consumers have and the most fun loving caring people you’ll ever met in a restaurant. if our farm is up, we can maybe make our food slightly more affordable to lower income consumers . 72