Marketing Finial Examination: Take Home Final Exam.

Student name: John William Service Unite: Department of Biomedical Engineering of Yuanpei UniversityStudent number: 941064Date: 2008/06/05

Examination Questions Notice:

The exam is created using Word and power point illustrations. You are to turn in the report (hard copy) and a CD ROM. The due date is June 5th.

The final exam covers the creation of a curbside restaurant selling rice balls (fan tuan shao che). For the exam, you are to act as a consultant to the independent owner and operator of the curbside restaurant. You are delivering a report to the owner and operator that will cover the following key points.

1. Marketing Plan (see Appendix 1). Adapt sections for the marketing plan detailed in the appendix as you see necessary to help your client.

2. You will need a pricing analysis and a break-even calculation. The client specifically needs to know the price range for the very simple menu selection. The menu consists of rice balls (two varieties) and drinks (three types – coffee, tea, soy bean milk). For the coffee and tea, there is an option to add milk.

3. You will have to state the assumptions about the market demand and the pricing. However, the pricing of the product should reflect ease of calculation and quick service for handing out the change. Thus, the pricing point should be $50 NT for rice ball and a drink. Your promotion should focus on a combination of drink and rice. However, if the customer only wants a rice ball or just a drink then you will also sell single items. Single item price is assumed to be $25 NT. You are expected, as a minimum, to calculate profit and break-even.

4. Then quality of the merchandise is assumed to be name brand. For example, I-Mei milk, Kenyan home ground fresh coffee made correctly with a nice machine, good soy bean milk, you will co-brand and demonstrate these high quality ingredients.

5. A Key aspect of the project is to emphasize co-branding with quality products,

higher levels of sanitation, uniformity in delivery (business process), and better service. Image, curbside store design, signage, and uniform must be well defined.

6. The description of business processes is very important to help the small curbside retailer differentiate the store.

Marketing Finial Examination: Take Home Final Exam.

Student name: John William Service Unite: Department of Biomedical Engineering of Yuanpei UniversityStudent number: 941064Date: 2008/06/05The first file (Word file) Answer:Topic:

The Study on the Marketing Analysis of the Curbside Restaurant of Rice Balls.

John WilliamStudent number: 941064

Department of Biomedical Engineering of Yuanpei University

Abstract

How to run a business well? Special in the business world, what kind of method can help salespersons and sales managers to arrive good marketing strategies with get good effects for assisting their companies. It’s always cause business man to thinking. In the semester we have a nice chance to understand how to make a rule for write down the final exam reports of marketing by the topic: “the marketing analysis of the curbside restaurant of rice balls”. I deeply appreciate Dr. Trappey Charles V. to give us this chance to make report for figure out marketing plan method. In the study I follow Dr. Charles’s restricted conditions to analyze the curbside restaurant of rice balls. The restricted conditions are in the below: 1. The case study I need “a pricing analysis” and “a break-even calculation”. The client specifically needs to know the price range for the very simple menu selection. The menu consists of rice balls that are two varieties and drinks that are three types – coffee, tea, soy bean milk. For the coffee and tea, there is an option to add milk. 2. The case study I have to state the assumptions about “the market demand and the pricing”. However, the pricing of

the product should reflect ease of calculation and quick service for handing out the change. Thus, the pricing point should be $50 NT for a rice ball and a drink. My promotion should focus on a combination of drink and rice. However, if the customer only wants a rice ball or just a drink then I also sell single items. Single item price is assumed to be $25 NT. I am expected, as a minimum, to calculate profit and break-even. 3. Then quality of the merchandise is assumed to be name brand. For example, I-Mei milk, Kenyan home ground fresh coffee made correctly with a nice machine, good soy bean milk, I co-brand and demonstrate these high quality ingredients. 4. A Key aspect of the project is to emphasize co-branding with quality products, higher levels of sanitation, uniformity in delivery (business process), and better service. Image, curbside store design, signage, and uniform must be well defined. 5. The description of business processes is very important to help the small curbside retailer differentiate the store. According to Dr. Charles’s restricted conditions and I referred “Gray Armstrong and Philip Kolter, “Appendix 1 Marketing Plan “, Marketing an introduction, eight edition, Person/Prentice Hall, page mp1~mp9. ” to get 13 steps in the studying for write down the final exam report that is the marketing analysis of the curbside restaurant of rice balls. I hope the case study will give the curbside restaurant some marketing suggestions to promote the market share of the curbside restaurant of rice balls and good revenue.

Keywords: curbside restaurant of rice balls, break-even, marketing plan

Introduction

As a consultant, I need to do a good market plan to provide direction and suggestions for the new marketing case of curbside restaurant of rice balls. With a detailed marketing plan, the plan of studied case, I will be better prepared to launch new products that are two varieties rice ball and drinks that are three types – coffee, tea, soy bean milk. Curbside restaurants or stands always direct to sell their merchandise, but they almost haven’t a whole plan to manage their business and never analyze marketing process. I use marketing plan to guide their direction and outline their business. Though curbside restaurant is a small business, if their have a good marketing plan, they still have a good beautiful future and good benefit. In the study the competitors are 7-11 convenient stores and traditional curbside restaurants. 7-11 convenient stores have many difference kinds’ rice balls and drinks for breakfast, but their foods always cold test and bad chewing. The pricing of a rice ball and a drink are about $70NT that is more expensive than the merchandises of the curbside restaurant

of rice balls of entrusted analysis. The pricing point of the curbside restaurant of rice balls are $50 NT for a rice ball and a drink for breakfast. In the traditional curbside restaurants they have same foods about $40NT, but their breakfast taste not good and they always have public hygiene problem and drink is so light. The entrusted business gave me a chance to assist the business to make good future by a marketing plan. Unlike a business plan, which offers a broad overview of entrusted business’s mission, objective, strategy, and resource allocation, the marketing plan has a more limited scope. The study serves to document how the curbside restaurant strategies objectives will be achieved through specific marketing strategies and tactics, with the customer as the starting point. Suppose a marketing plan calls for selling 100 rice balls and 100 drinks per day. The kitchen of the curbside restaurant must be gear up to make that many material of rice balls, the boss must have funding available to cover the expense, the curbside restaurant is to have only boss. It hasn’t hire staff, and so on. The market plan is to guide implementation effectively; every part of the plan has been described in considerable detail. The curbside restaurant is post advertisements with both of rice ball and drink manufacture process in the front o of the stand. Merchandise category is pricing on the board that are suspended in front of the stand. The curbside restaurant uses good auto machines for make good rice balls and makes good drinks storage by coffee and soil bean milk machines with refrigerator containers. The equipments of stand is drew down as shown in Figure 1.

Keep Warm Drink Container Auto rice ball machine and soy bean milk machine

Coffee drinks rice balls meat powder

Co-brand milk(fresh) Material of rice balls Advertisement

Figure 1. The outline of the curbside restaurant of rice balls in the case study

Yo-Yo! Breakfast Curbside Restaurant

Price boards

Marketing Plan Method

According to Gray Armstrong and Philip Kolter Marketing Plan Method by 13 steps in the below:

1. Executive summaryThis section summarizes the main goals, recommendations, and points as an

overview for senior managers who must read and approve the marketing plan. Generally a table of contents follows this section, for management convenience.2. Current marketing situation

In This section, marketing managers discuss the overall market, identify the market segments they will target, and provide information about the company’s current situation.3. Market description

By describing the targeted segments in detail, marketers provide context for the marketing strategies and detailed action programs discussed later in the plan.4. Benefits and product features

Exhibit 1 clarifies the benefits that product features will deliver to satisfy the needs of customers in each market segment.5. Product review (Write down the table of Segment Needs and Features/

Benefits of products as shown in Table 1)The product review should summarize the main features for all of the company’s

products. The information may be organized by product line, by type of customer, by market, or (as here) by order of product introduction.

Table1. The Table of Segment Needs and Features/ Benefits of productsTargeted Segment Customer Need Corresponding

Feature/BenefitA

BC

a1a2…

…

6. Competitive review(Write down the table of “Selected Competing Products and Pricing as shown in Table 2)

The purpose of a competitive review is to identify key competitors, describe their market positions, and briefly discuss their strategies.

Table 2. Selected Competing Products and PricingCompetitor Model Features PriceCompetitor ACompetitor B

… … …

7. Distribution review In this section, markets list the most important channels, provide an overview of

each channel arrangement, and mention any new developments or trends.

8. Strengths, Weaknesses, Opportunities, and Threat Analysis (SWOT Analysis)(Write down “SWOT Analysis Table” as shown in Table 3)

StrengthsStrengths are internal capabilities that can help the company reach its objectives

WeaknessesWeaknesses are internal elements that may interfere with the company’s ability to

achieve its objectives.Opportunities

Opportunities are external elements that the company may be able to exploit to its advantage.Threats

Threats are current or emerging external elements that may possibly challenge the company’s performance.

Table 3. SWOT Analysis

Internal Capabilities

Strengths(S)

Weaknesses(W)

S1.S2.S3.…

W1.W2.W3.

External Capabilities

Opportunities(O)

O1.O2.O3.….

S1&O1S1&O2S1&O3S2&O1S2&O2S2&O3S3&O1S3&O2S3&O3

…(correlation for Marketing strategies)

Threats(T)

T1.T2.T3.…

…(correlation for Marketing strategies)

…(correlation for Marketing strategies)

Concentric Circles Method to explain “Marketing Core”PEST+8PMarketing Core

Figure 2. Marketing Core

Marketing Core, as shown in Figure 2:1. Expenditure:( behavior/tendency/fashion)2. Customers: ( Market Target)

9. Objectives and issuesThe company’s objectives should be defined in specific terms so management can

measure progress and, if needed, take corrective action to stay on track. This section describes any major issues that might affect the company’s marketing strategy and implementation.

Core

Price

Place

Product

Promotion

Political / Laws

Economic

Social / Culture

Competition

Physical Facility

Process Management

Personality

Public Relations

a. First-Year Objectivesb. Second-Year Objectivesc. Issues

10. Marketing Strategy – Marketing Mix

Marketing MixThese sections summarize the broad logic that will guide decisions made about the

marketing tools to be used in the period covered by the plan.

a. The primary consumer targetb. The Secondary consumer targetc. This segment can be described demographically by age(__ to __) and some status.

A. PositioningA positioning built on meaningful differences, supported by appropriate strategy

and implementation, can help the company build competitive advantage.B. Product StrategyC. Pricing StrategyD. Distribution StrategyE. Marketing Communication StrategyF. Marketing Research

Management should explain in this section how marketing research will be used to support development, implementation, and evaluation of strategies and action programs.G. Marketing Organization ( Drawing down the Marketing Organization)

The marketing department may be organized by function, as in this sample, by geography, by product, or by customer ( or some combination).

--Chief Marketing Officer--Sales Manager, Advertising Manager, Promotion Manager--Regional Sales, Advertising Analyst, Promotion Analyst

11. Action Programs [Scheduling]

Action programs should be coordinated with the resources and activities of other

departments, including production, finance, purchasing, etc.

12. Budgets [break-even calculation]

Budgets serve two main purposes: to project profitability and to help managers plan for expenditure, scheduling, and operations related to each action program.

13. Controls

Controls help management asses results after the plan is implemented, identify any problems or performance variations, and initiate corrective action.

Products—“Rice balls and Drink” Manufacture processes

A. Rice Balls Manufacture Process.

Manufacture Process:

When we prepare for making rice balls, we need to make rice stick. The rice ball

products are as shown Figure 3.

Step 1. Pick up a clean plastic film, and put some suitable rice with some You-Tiao,

meat powder, vegetables, scrambled eggs, and ham stick into the rice.

Step 2. Put the materials on the plate of auto rice ball machine. The food machine will

make some beautiful rice balls by mold.

Step3. Roll up a film of laver with some sesame on the surface of rice ball. It has been

taste delicious.

Materials of Rice balls:

1. Sushi Sticky Rice

2. Meat Power

3.You-Tiao

4. Vegetables

5. Sesame

Notice:

1. Sushi Sticky Rice cooking before, it needs to soak water one hour.

2. Rice mix with vinegar, a little of sugar and salt.

Figure3. Rice balls products

B. Drink Manufacture Process.

Manufacture Process:

The drinks of curbside restaurant “Yo-Yo!” of rice balls are different than other breakfast store drinks, because drinks are made by fresh material and famous co-brand products.

Products:

Drinks (three types – coffee, tea, soy bean milk)

1. Coffee—Using Kenyan home ground fresh coffee bean with co-brand “I-Mei” milk to make coffee by a nice coffee machine. It is been storage in the “Keep Warm Drink Container”. When customers want a cup of coffee, the boss will make a hot coffee immediately. It has distinctive fragrance to attract more customers. Because the boss uses these quality ingredients and co-brand materials, so the coffee has public

praise. The coffee drink product is as shown Figure 4.

Figure 4. coffee drink product

2. Tea-- Using co-brand “TenRen black tea” to make good tea. It is been storage in the “Keep Warm Drink Container”. The tea uses “Ta-Ji-Ling famous black tea” because it suite customers taste and has strong tea fragrance, and different general breakfast store-low quality black tea. The black tea product is as shown Figure 5.

Figure 5. Black tea product

3. Soy Bean Milk—Use “organic soy beans” to make 100% pure soy bean milk. It has very smooth and suitable taste. The soy bean milk has been made by a soy bean milk machine in the kitchen. It is stored by “Keep Warm Drink Container”.

Customers are very like drink it because of “100% pure and fresh”. The soy bean milk product is as shown Figure 6.

Figure 6. Soy bean milk product

Marketing Plan of the Study Case

1.Executive summary

“Yo-Yo!” Breakfast Curbside Restaurant is preparing to launch products that are rice balls (two varieties) and drinks (three types – coffee, tea, soy bean milk), the menu, in a maturing market. Despite the dominance breakfast foods leader other competitors’ products, we can compete because our products offers a fresh and delicious tasting with hygiene manufacture processes, and we have a value-added price. We are targeting segments in the students and HsinChu science park employees, taking advantage of opportunities indicated by higher demand for “ rice ball and coffee” like in every morning.

The primary marketing objective is to achieve first-year HsinChu Science Park market share of 3 percent with a set of breakfast (a rice ball and a drink) of $50NT. The primary financial objectives are to achieve first-year sales revenue of $500,000NT, keep first-year losses to less than $50,000NT, and break even early in the second year.

2.Current marketing situationMarket Description

Yo-Yo! Breakfast Curbside Restaurant enters the now mature breakfast market. It prepares two months to study and research the environment of HsinChu Science Park. It locates on Guang-Fu road and in front of Tsing Hua University. Many breakfast restaurants open in Tsing Hua city. The breakfast restaurants have more than 10 on the Guang-Fu road. But their breakfast food taste is not good, because they down the cost to promote their profit. For example, coffee taste is so light, and they are not focus on hygiene. “Yo-Yo!” wants to gain market share in this breakfast market. Yo-Yo! must carefully target specific segments with features that deliver benefits valued by good morning breakfast customers.

Product Review

The main product of Yo-Yo! Breakfast Curbside Restaurant, rice ball and coffee, offers the following standard features:

a. Fresh and Pureb. Hygienec. Special Tastingd. Famous materials of Co-brandinge. Strong Smellf. Distinctive Fragranceg. Good looking Packing Cuph. Give some Nice Tissuei. Keep Warm/Hot Drinkj. The Manufacture Processes have been post to knowk. Using Auto-machine to make Rice Balls

Table 4. Segment Needs and Feature/Benefits of Yo-Yo! Breakfast Curbside Restaurant’s productsTargeted Segment Customer Need Corresponding FeatureA. Students (consumer market)

Instant making productsFresh and pure drinkNice feedbackNice looking PackingHygieneCheap

Teams: a, b, g, h, k

B. HsinChu science park employees (consumer)

Instant making productsFresh and pure drinkNice feedbackNice looking PackingHygieneStrong drink tasteKeep warmKnow manufacture processFamous material of co-branding

Teams: a~k

First year sales revenues are projected to be $500,000NT, based on sales of HsinChu Science Park market. The pricing of the product reflects ease of calculation and quick service for handing out the change. Thus, the pricing point should be $50 NT for rice ball and a drink. We promotion should focus on a combination of drink and rice. However, if the customer only wants a rice ball or just a drink then we will also sell single items. Single item price is assumed to be $25 NT.

Competitive Review:

Competitor A:

General Breakfast Curbside Restaurants have some products, but their products are not hygiene, they made rice ball by hands, and their materials of rice ball haven’t use co-brand materials. Milk is bad quality. Coffee smell is light and hasn’t strong fragrance. The cup is used by plastic and no keep warm. Some time hot to take a couple of coffee! No any advertisement on the cup for company brand. But their price of products cheaper than “Yo-Yo!”. For example: a rice ball and a drink are $40NT. If they are not stands, their rent fees are high cost.

Competitor B:

7-11 convenient stores have some products, but their products are expensive than “Yo-Yo!”. Rice balls are cold and expensive and a rice ball price is $35NT. A cup price of

coffee in 7-11 convenient stores is $40NT. If customer wants to buy a set of breakfast, the customer needs pay $75NT for a breakfast. “Cold!”, ”Expensive!”, and “Convenient!” are customer’s feeling for the products of 7-11 convenient stores.

Selected competing products and pricing is as shown in Table 5.

Table 5. Selected Competing Products and PricingCompetitor Model Features PriceCompetitor A

Competitor B

Cheap Model

Expensive

1. Products is cheaper2. No good quality3. No using co-branding

material4. No good response5. Hygiene is bad

1. Products is expensive2. So-so quality3. have brand4. Products haven’t good

tasting5. Convenient & Instant6. Hygiene

$40NT(for a rice ball and a drink)

$75NT(for a rice ball and a drink)

3. Strengths, Weaknesses, Opportunities, and Threat Analysis (SWOT Analysis)

Yo-Yo! Breakfast Curbside Restaurant has several powerful strengths on which to build, but our major weakness is lack of brand and products awareness and image. The major opportunity is demand for rice balls and drinks that deliver a number of valued benefits, and we focus on several factors that hygiene, middle price, quality, and good response. We also face the threat of competitors form some consumers choose low price products of competitors. We are as well as downward pricing pressure, but quality resolutely is the most important in the market segment. Table 6 summarizes Yo-Yo! Breakfast Curbside Restaurant’s strengths, weaknesses, opportunities, and threats as shown in below. We consider every terms of SWOT by “Marketing Core” of Figure2 .

StrengthsS1: We have management experience and market plan to support us. (Methods)S2: We have transparent manufacture process to give customers to know. (Manufacture process)S3. We have co-branding material to make good foods and drinks—co-branding with quality products. (Materials)S4.We have good auto machine to make rice balls and drinks (Machine)S5. We have a good consultant for plan dynamic variance environment and market. (People)S6. We have higher levels of sanitation.S7. We have better service—good response, keep warm drinks, and nice tissue, etc.

Weaknesses

W1: The cost of products is not cheaper than competitors’ products. (Price)W2: We haven’t other promotion path. (Promotion)W3: Uniformity in delivery --business process. (Process)W4: We control all manufacture processes of foods, but it spend a lot of time. (Time Cost)W5: The material cost of products is more expensive, because co-branding. ( Co-branding)W6: The cups of drink surface have advertisement for our brand, but it cause cost become higher than competitor’s cups. (Advertisement Cost)

Opportunities

O1: Oil price become higher than before, so more motorcycle customers will pass through our stand. People buying chance will be promoted. (Customers)O2: Yo-Yo! Breakfast Curbside Restaurant has a good quality breakfast and drink, so student will know it. (Good response)O3: Sanitation Laws and certain limits will have been attention. (Laws)O4: On Guang-Fu road we have enough customers to run business. (Customer Resource)

Threat

T1: Traditional breakfast restaurants have cheaper price at the same products. (Price)

T2: 7-11 convenient stores have brand products at same products, and they have strong promotion and supporters. (Supporter)T3: Business entrance gap is not high. (Threshold)T4: Traditional breakfast restaurants’ equipments are simple than us. (Machine)

Table 6. SWOT Analysis

SWOT Analysis

Internal Capabilities

Strengths(S)

Weaknesses(W)

S1.S2.S3.…

W1.W2.W3.

External Capabilities

Opportunities(O)

O1.O2.O3.….

…(correlation for Marketing strategies)

…(correlation for Marketing strategies)

Threats (T)T1.T2.T3.…

…(correlation for Marketing strategies)

…(correlation for Marketing strategies)

4.Objectives and issues

We have set aggressive but achievable objective for the first and second years of market entry.

1. First-Year Objectives

During Yo-Yo! Breakfast Curbside Restaurant’s products initial year on the market, we are aiming for a 3 percent share of HsinChu Science Park market of breakfast.

2. Second-Year Objectives

Our second-year objectives are to achieve a 6 percent share based on sales of same products and to achieve break-even early in this period.

5.Marketing Strategy – Marketing Mix

a. The primary consumer target

Students and HsinChu science park employees, etc. (Lower- and Middle-income professional)

b. The Secondary consumer target

Business man, bosses, and professors, etc. (Upper-income professional)

c. This segment can be described demographically by age (17 to 65) and some status.

d. Positioning

Eating the product differentiation, we are positioning the Yo-Yo! Breakfast Curbside Restaurant’s products as fresh, pure, hygiene, special tasting, strong smell, distinctive fragrance, good looking with packing, good quality, and nice feeling taste. The marketing strategy will focus on the high quality and middle pricing. It’s differentiating between traditional breakfast curbside restaurant and 7-11.

e. Product Strategy

The menu of products consists of rice balls (two varieties) and drinks (three types – coffee, tea, soy bean milk). For the coffee and tea, there is an option to add milk. We will sell them in first year. Building Yo-Yo! Breakfast Curbside Restaurant’s product’s brand is an integral part of our product strategy. The brand and logo (Yo-Yo! Drink! Fresh & Hygiene!) Will be displayed on the product and its packaging, and reinforced by its prominence in breakfast marketing campaign.

f. Pricing Strategy

Yo-Yo! Breakfast Curbside Restaurant’s product will be introduced at $50 NT

for rice ball and a drink. Our promotion should focus on a combination of drink and rice. However, if the customer only wants a rice ball or just a drink then you will also sell single items. Single item price is assumed to be $25 NT. We are expected, as a minimum, to calculate profit and break-even. The pricing analysis and a break-even calculation will discussion in next section.

g. Distribution Strategy

We have uniformity in delivery (business process) in the first year. Our channel strategy is to use selective distribution marketing Yo-Yo! Breakfast Curbside Restaurant’s product through well-know convenient stores, online breakfast restaurant, and chain stores cooperation in second and third year. We will add channel partners until we have coverage in all major Hsinchu city markets and the product is included in major breakfast catalogs. We will also investigate distribution through chain stores system. In our channel partners, we will stronger co-branding effect. We will also arrange special trade terms for convenient stores possibility.

h. Marketing Communication Strategy

We will reinforce the brand name and the main points of product differentiation. Research about customer’s behavior, advertising will appear on the board of the stand. To attract customer attention and encourage purchasing, we will offer many colorful posts about co-branding information.

i. Marketing Research

Using research we are identifying the obvious features and benefits that out target market segments value. Feedback from marketing research, surveys, and focus customer’ behavior it will help up to sell the breakfast products. We are also measuring and analyzing customer’s attitudes toward competing brand and products. Brand awareness research will help us determine the effectiveness and efficiency or our products and posts. Finally we will use customer satisfaction studies to gauge market reaction.

j. Marketing Organization ( Drawing down the Marketing Organization)

Yo-Yo! Breakfast Curbside Restaurant is one staff who is the boss service. No organization in the first year!

Pricing Analysis and a Break-Even Calculation

Hypothesize: We sell 100 rice balls and 100 drinks for one day, and 24days working per month.

$50NTx100x24=$120,000NT(monthly)$120,000NTx12=$1,440,000NT (Yearly)---Revenue (Yearly)

Fixed costs monthly Yearly(2007)Stands(Cart)—second

hand cart$500NT $6,000NT

Light $1,000NT $12,000NTGas $1,000NT $12,000NT

Kitchen equipments(rice cooler, ice box, basic kitchen tools, woods,etc..)

$250NT $3,000NT

Signage $100NT $1,200NTAuto food Machines

(Coffee machine, soy bean milk machine)

$1,000NT $12,000NT

Sum Fixed costs $3,850NT $46,200NT

Variable costs monthly Yearly(2007)Bag of rice

($145NT/kgfor make 100 rice balls)

(Sell 100 rice balls per one day)

($145NT x24days(monthly)

$360NT $4,320

Co-branding meat powder ($2NT/per one rice ball)

$4,800 $57,600

(Sell 100 rice balls per one day)($2NT

X100X24days(monthly)Co-branding coffee and

break tea($3NT/per a cup) (Sell 100 cups per one

day)$300NTX24days(monthly)

$7,200 $86,400

Vegetable, egg, Yo-Tiao, (materials of rice ball)

($1NT/per one rice ball)($1NT

X100X24days(monthly)

$2,400NT $28,800

Other cost $1,000NT $12,000Sum Variable costs $15,760NT $189,120

Sum $19,610 $235,320

Fixed costs monthly Yearly(2007)Rent 30,000 360,000Power and water expense 2,375 28,500Variable costs monthly Yearly(2007)Salaries 107,825 1,293,900Product cost 57,310 687,720Other cost 1,168 14,020Sum 198,678 2,384,140

Fixed costs+ Variable costs= $235,320NT (yearly)

Sales amount=$1,440,000NT (yearly)

Net profit=$1,204,680NT (yearly)

$1204680NT/($50NT)=24094 sets (“a rice ball and a drink”) (yearly)

24094/12=2008 sets (monthly)

2008/24=87 sets (break-even point)-----(day)

If Yo-Yo! Breakfast Curbside Restaurant want to arrive break-even point, then the boss need to sell 87 sets( a set is a rice ball and a drink).

Conclusion

In the study the description of business processes is very important to assist the small curbside retailer differentiates the store. I deeply appreciate Dr. Trappey Charles V. to give us this chance to make report for figure out marketing plan method. In the study, we give some assumption in the cost of pricing analysis, and the result is shown: If Yo-Yo! Breakfast Curbside Restaurant wants to balance in break-even point, then the boss need to sell 87 sets in every day.

Reference

1. Gray Armstrong and Philip Kolter, “Appendix 1 Marketing Plan “, Marketing an introduction, eight edition, Person/Prentice Hall, page mp1~mp9.