Gluten-Free Food Truck Jenna Eastman, Daniella Comito, Shreve Cameron & Yikun Liang.

Gluten-Free Food

TruckJenna Eastman, Daniella

Comito, Shreve Cameron & Yikun Liang

Agenda

Situation Analysis Gluten Free Food Truck

Mobile, convenient food vendor Markets gluten free and healthy meals and

snacks Quick, easy, quality food Advocates healthy eating, eco-friendly,

recyclable packaging Targets customers of all ages, backgrounds

especially for the health conscious and those with a gluten allergy

Industry TrendsFood Trends

Less cooking Baby boomers – quick and easy options Gen Y – gourmet, ethnic, spicy, adventurous palette Three meals a day with in between snacks “Prescriptive Eating”

Gluten free is healthier Indicator of higher quality Helps to address hyperactivity/autism Gluten allergy/intolerance Celiac disease

Technology Gen Y : early 20’s young professionals Ordering Online, instant delivery Paying via smart phones Social media

A way for customers and businesses to communicate and share information

Be aware of food truck timings and locations

(Packaged Facts, 2011) (Sloan, 2012) (Myrick, 2011)

Resources

Easy to start but difficult to maintain Truck : $30,000 -$80,000 Permits Food Storage

“Gluten-free food truck is a great idea for a mobile food truck because there is not that many of them and healthy eating is now a trend which should attract a lot of people.”

Five Forces AnalysisThreat of Entry Low•Will not attack other food businesses•However, food businesses can be a threat if they catch up with similar trends

Threat of SubstitutesModerate•Not many gluten free trucks offered•However, there are other gluten free, vegan, low calorie options elsewhere

Degree of Rivalry:High•Health conscious, convenience, price right is very competitive

Bargaining Power of BuyersModerate to High•Food businesses are fighting to appeal, and attract customers•Lack of switching costs for customers

Bargaining Power of Suppliers•Moderate•Switching costs are low•Finding low prices for higher quality

• jenna put something here TT.TT…

SWOT AnalysisStrengthsMobile ConvenienceSmall staff, with minimal trainingAlready prepared foodCommunity building business

WeaknessesThe size of the truck, no kitchen spaceOnly Gluten-Free offers limited optionsNo sit down area, always grab and goNo consistent location, difficult for advertising

OpportunitiesGeneration Y likes thing to be easily accessibleAdvertising TechnologyAdd locations easilyMany suppliers, choose prices of food“Free From” Trend, gluten-free is become very popular to those even without allergies

ThreatsParking RegulationsWants varying food on a day to day basisEconomic recession, leading to people wanting to eat inHealth RegulationsCooking Technology

Marketing Goals Expand locations; acquire three or more

permits for different locations Sell 3,000 smoothies in one year to see if

this new product is profitable Break even on initial investment Expand awareness by creating a website Sign up to participate in at least five

events around the Boston area

Marketing Strategy

Target Market

Points of DifferenceGluten-Free: Meals are healthy and

appeal to people with allergies.Options: People can get full meals,

or just grab snacks and beverages.Small Portions: This satisfies the

small portion trend, people are eating smaller meals.

Positioning Statement“For the active, urban-goers, who need a quick and healthy meal or snack, the Gluten-Free Food Truck is the place for that convenient food or beverage that will give you energy and have you feeling great because it’s made with non-gluten ingredients.”

Marketing ProgramProduct Strategy

- A traveling truck that offers gluten-free foods 

- Providing quick and tasty meals & snacks  - It brings convenience since it comes to you  - Quick because it is located on the street 

Benefit Message “The Gluten Free Food Truck is a quick, affordable, and tasty food provider that comes to you!”

- Healthy Food Choice! Leaving you feeling good with energy 

- Giving you a cheaper/lunch snack option  - Making meals easier and more

convenient  - Satisfying the new trend to eat smarter 

Price Strategy - Standard markup pricing strategy was

used to determine the price that we wanted our  products to be sold at

- The standard market up pricing strategy will ensure that we are pre-setting a profit margin and applying a cost to the products 

- After SMP was used to determine the costs of the products target profit pricing was employed in order to balance revenue and cost when setting the prices for the food truck products 

Price Strategy for Smoothies

Variable cost per unit (UVC): $2 Fixed costs (FC) per yr. for smoothies: $12,

000 Expected unit Sales of Smoothies: 3, 000 Desired markup on sales: 10% 

$12,000/3,000 = 4  41/1-10% = 6/.9 = $6.66 

Distribution Strategy: Market Coverage Strategy Mobility is a major advantage for the

this new business. We are able to focus on a small area with a large customer base which will ensure that this business will be successful 

Being on time and full stocked for when the food rush comes each day 

Distribution Strategy: Channel Design

Direct customer service Marketing advantage to target several

locations because it is a mobile business Targeting Longwood Medical area

because there is a large target audience- college students, high school students, and business professionals 

Marketing Communications: Media & Advertising Different communication mediums such as

Facebook, Twitter, and other social media websites will be an affordable and efficient way to gain brand recognition 

These mediums will ensure that our business will get noticed via people reposting and commenting on our Facebook page and links that are related to our products 

Social media is a great way to advertise and market a business but other forms of advertising can also help gain recognition as well - newspaper ads, pamphlets, and direct mail will also be implemented

Marketing Communications: Trade and Sales Promotion Trade and sales promotion will lean on

communication media for brand awareness 

Press Release to inform potential customers in Boston, specifically Longwood area 

Promotional deals within the first couple months of the launch of the Gluten Free Food Truck

Monitoring & Control: Goals 9/1/12 - 12/31/12 = obtain truck that is entirely

equipped with all necessary permits  1/1/13 - 3/28/13 = design menu, gather

ingredients, and implement social media awareness 

4/1/13 - 5/15/13 = get cleared by fire department & health inspectors 

5/15/13 - 9/1/13 = start business in permitted areas in the city & hire employees 

9/1/13 - year 2 =  update truck, update menu, continue to use social media to gain as much recognition as possible 

Evaluation and Control Set goals to maintain progress  Created a SWOT analysis to prepare for

any threats or weaknesses that could put a halt in the business 

Anticipated any problems that could go wrong with the truck such as technical issues… planning ahead is key in order to prevent any upcoming issues 

Financial Projections

Financial Statements Fixed Costs: $12,000/10%= $120,000 Total Variable Cost: 3000x$2/(10%)=

$60,000 Total Revenue: 3000x$6/(10%)=

$180,000

Breakeven Point Units: 2,553.2 Breakeven Point Revenue: $171,064.4