EXECUTIVE SUMMARY

A curbside restaurant wants to sell rice ball and three drinks. Because of the main products are rice balls, we names the curbside restaurant
“fun-fun rice balls”. Rice balls pronounce in Chinese language is “fan tuan”. We use the word “fun” that sounds like “fan”, and it can make customers
think of happy things.
Despite there are many restaurant sell rice balls, we will try to offer a unique features at a value-added price. In the initial stage of operation,
we are targeting specific segments in engineers and students who work or study in Hsinchu. The “fun-fun rice balls” also offers a simple, convenient,
healthy, and comfortable rice balls. Through co-brand strategy and some marketing skill, trying to promote its sales and satisfy its customers.

CURRENT MARKETING SITUATION

Market Description

In the rice-food culture, rice ball is one of Taiwan's traditional snacks. There are many restaurant that sale rice balls in their shop. Therefore, to
sell rice balls as the major product, it must have a unique marketing position. Or, customers can easily find the same productin other restaurants, and
easily find a substitute. The “fun-fun rice balls” can set up its rice ball in specific segment. In this segment, customers usually eat out and prefer simple,
fast, and convenient. The store’s initial development of the market range can around the Hsinchu Science-based Industrial Park, National Chiao Tung
University, and National Tsing Hua University. The target market focuses on engineers and students. Table 1 is segment needs and features.
Table1 Segment Needs and Feature/ Benefit of the “fun-fun rice balls” rice balls
Targeted Segment Customer Need Corresponding Feature/Benefit
Engineers in Hsinchu Science-based Rapid The production process of rice balls is simple and can quickly
Industrial Park to complete one, so that engineers can save time cost and
rapid get meal.

Many Asians feel that only eat some rice-food in a meal, they
Feel eat enough will feel eat enough. Rice balls provide this function.

Although the general lunches were usually made by rice, rice

balls can take in hand to eat. That creates more convenient,
more efficient to eat for engineers
Convenient

Students Inexpensive In pricing strategy, a single be priced at NT $25, a combo be

priced at NT $50. This price is not expensive. Students can
afford this price, and is willing to purchase.

Many Asians feel that only eat some rice-food in a meal, they
will feel eat enough. Rice balls provide this function
Feel eat enough
Product Review
The “fun-fun rice balls” sells rice balls and provides tow insistence and three guarantees. It insists on quality of raw materials and product. The
features about guarantees are healthy to eat, hygienic to eat, comfortable to eat.
On quality aspect, it especially cooperates with well-known manufacturers. For example, I-Mei milk, Kenyan home ground fresh coffee made
correctly with a nice machine, good soy bean milk, branded rice, Hsin Dong Yang powdered meat, and so on. The “fun-fun rice balls” uses the
cooperation with the well-known manufacturers to ensure that it gets the best quality of raw materials. In quality control of product, it uses the less-
variety and standard production to maintain the quality of the final product.
On three guarantees aspect, the “fun-fun rice balls” uses higher levels of sanitation and the water is always produced by reverse osmosis. It
also seeks access to safe food certification so that consumers can eat healthy, eat hygienic, and eat comfort.
Competitive Review
The “fun-fun rice balls” is a curbside restaurant selling rice balls. But there are some competitors who own physical store and some other
competitors who also operate curbside restaurant. Some physical store, Lai-lai soybean milk store and Yung-ho soybean milk store for example, not
only sell rice balls, but also sell sesame seed cake, fried fritters, and so on. These kinds of stores offer various foods to customers. Some convenience
stores also sell rice balls to abundant their products. Moreover, there are many mobile curbside restaurants in the market place. They also sell rice
balls. To sum up, “fun-fun rice balls” faces very fierce competition.
Distribution Review
The “fun-fun rice balls” distributes its rice balls through it own independent dining car. It shapes the unique brand image by packaging the
dining car. Then, it didn’t to choose to mix with other channels.

MARKETING STRATEGY

Positioning

We are positioning the “fun-fun rice balls” rice balls as simple, convenient, ehealthy, and clean rice-food. Marketing strategy will focus
on how to make the sale and purchase behavior more simple and efficient. Therefore, we provide the highest quality and healthy food to
customers through the simplification of product select process.

Product Strategy
In the “fun-fun rice balls” menu, there only two flavors rice balls and three types drinks. The drinks include tea, coffee, soy bean milk. The “fun-
fun rice balls” use the less-variety and standard production. Although it provides less choice, it guarantees product quality and health. Its raw materials
and equipments all get from brand or well-known manufacturers, and pass quality control and get the quality assurance.
The “fun-fun rice balls” create a minimalist and quality new rice balls style. It provides an easy and simple choice for eating out people.
Pricing Strategy
The “fun-fun rice balls” provides two flavors rice balls and three drinks. Customers can buy a combo that includes one rice balls and one drink,
also can buy a single that only a rice balls or a cup of drinks. In this pricing strategy, a single be priced at NT$25, a combo be priced at NT$50. It means
any rice balls or drink are priced at NT$25. This is a popular pricing strategy. Either a drink or a rice balls that price NT$25 are reasonable. The combo
price NT$50 that is simple sum up tow product.
It offers generally acceptable prices to consumers. Under less kind of product selection and simple pricing strategy, it creates an easy way to
trade food for fee. Vendor and customers can be more efficient to checkout. This way also can enhance the efficient brand impression on customers.
Distribution Strategy
The “fun-fun rice balls” is a curbside restaurant, and sells its rice balls by its own dining car. In the initial planning, the market area can near
around Hsinchu Science-based Industrial Park, National Chiao Tung University, and National Tsing Hua University. It can arrange to sell rice balls on
different places at different time, and plans rotation projects to connect different customers. Because of seeming dining car as a business place, it can
mobilize easily. We can refer to the sale of rice balls to understand the actual market situation, and try to adjust the market area.
Marketing Communications Strategy
The first way to promote the “fun-fun rice balls” rice balls is co-brand marketing. Because of cooperating with well-known manufacturers to
get the best quality of raw materials, we can use this opportunity to implement co-brand strategy. This strategy can promote “fun-fun rice balls” brand
and make customers trust their product quality.
Co-brand marketing can create the image of high class rice balls, so customers may fell this rice balls is different between others.
The second way is to decorate the dining car into unique style. We can refit the car to fit our design, devise a special logo and a pretty menu, arrange
equipment location, and add the co-brand. When the dining car drives on the road, it is a best advertisement
The “fun-fun rice balls” can hold some promotional activities. For example, customers who buy a combo can get one point. When customers
collect ten points, they can exchange one rice ball and any one drink. This way is try to stimulate customers buy combo not only buy a single product.
Marketing Research
Before operating, we can do the early market research in the three main market areas to understand consumer tastes and to know about the
most favor of rice balls for consumers. The data can help us do the right decision. This decision is about which flavor of rice balls will be sold.
After operating, we can do the market research to understand which area and which time will reach the largest customers. Then, the data can
become the basis for the selling plan.

ACTION PROGRAMS

Short-term

First and foremost task in this term is to develop the three mainly market area, and to consolidate the existing customers. We also need to explore
potential consumers. On the other hand, the “fun-fun rice balls” need to enhance their promotion. It can deliver advertising sheet, design the
company's collective purchase orders, and so on. Try to promote and stimulate consumption. Finally, we expected to get the break-even, and
Marketing Research
Before operating, we can do the early market research in the three main market areas to understand consumer tastes and to know about the
most favor of rice balls for consumers. The data can help us do the right decision. This decision is about which flavor of rice balls will be sold.
After operating, we can do the market research to understand which area and which time will reach the largest customers. Then, the data can
become the basis for the selling plan.

ACTION PROGRAMS

Short-term
First and foremost task in this term is to develop the three mainly market area, and to consolidate the existing customers. We also need to
explore potential consumers. On the other hand, the “fun-fun rice balls” need to enhance their promotion. It can deliver advertising sheet, design
the company's collective purchase orders, and so on. Try to promote and stimulate consumption. Finally, we expected to get the break-even, and
establish the profitable business model.
Medium-term
The “fun-fun rice balls” will plan to participate in the food show in Hsinchu, selling rice balls in holiday market place, and trying to get the
opportunity to report by food TV show. In short, we expect to establish brand awareness.
Long-term
In the long term, we will approve others to join our alliances to create a chain of curbside restaurant. And try the best to make “fun-fun rice
balls” become a strong chain brand, so that other regions can also see the “fun-fun rice balls” dining car drive on the streets.
BUDGETS
In this part, I try to calculate how long to beak even and how much profit at end of year one.
Before calculation, I put the information in order. At first, I list and calculate fixed cost and variable cost (Table2). It indicate that the total fixed
cost are NT$25,000 and variable cost are 50% revenue.
Table 2 Fixed Cost & Variable Cost list
Fixed Cost Variable Cost

Road side stands NT$10,000 Rice ball material 50% revenue

Signage 1,000 (rice, pickles, egg, ponder meat,

Awning 1,000 fried bread stick)

Gas Bottle/Lighting 2,000

License 2,000

Uniform 4,000

Cooking equipment 5,000

Total NT$25,000 Total 50% revenue

 Now we assume the loan interest rate is 5%. In the bad day, it will sell 20 units that include 50 percent probability for singles and 50 percent
probability for combos. In the good day, it will sell 100 units that include 50 percent probability for singles and 50 percent probability for combos. It
will work 6 days pre week and 24 days per month. During 24 days, there are 5 days is bad and 19 days is good.
We can calculate how long to beak-even (Figure3). The answer is that when it sells17 days and 1,400 units, it will get the break-even. The break-
even calculation is:
Break even point → Total revenue = Total cost

The total fixed cost＝NT$25,000×1.05＝NT$26,250

The variable cost =1/2 revenue

 revenue/2＝NT$26,250 → revenue＝NT$52,500

According to the set before two units comprise a single (price NT$25)
and a combo (price NT$50),
the revenue of two units is 25 plus 50 equal to NT$75.
1 month revenue:

{(20/2)×25＋(20/2)×50}×5＋{(100/2)×25＋(100/2)×50}×19＝NT$75,000

 52,500/75,000=X/24→X =16.8 ≒ 17 (days)

Figure3 Break-even

We can calculate how much profit at end of year one. The profit in one year is NT$ 423,600. The calculation is:
In a month
Revenue:

{(20/2)×25＋(20/2)×50}×5＋{(100/2)×25＋(100/2)×50}×19

＝NT$75,000 (per month)

revenue 75,000
Monthly variable cost＝ 2 ＝ 2 ＝NT$37,500
Monthly fixed cost = ($25000 ×1.05) ÷12≒NT$2200

So the profit in a month＝75,000－37,500－2,200＝NT$35,300

The profit in one year＝35,300×12＝NT$423,600