Final Exam
Marketing Plan: Rice Balls
9631510
謝依璇
National Chiao Tung University
II
CONTENT
EXECUTIVE SUMMARY ............................................................................................ 1
CURRENT MARKETING SITUATION ...................................................................... 1
Market Description ................................................................................................ 1
Product Review ...................................................................................................... 3
Competitive Review............................................................................................... 3
Distribution Review ............................................................................................... 4
MARKETING STRATEGY .......................................................................................... 4
Positioning ............................................................................................................. 4
Product Strategy ..................................................................................................... 4
Pricing Strategy ...................................................................................................... 4
Distribution Strategy .............................................................................................. 5
Marketing Communications Strategy .................................................................... 5
Marketing Research ............................................................................................... 7
ACTION PROGRAMS ................................................................................................. 8
Short-term .............................................................................................................. 8
Medium-term ......................................................................................................... 8
Long-term .............................................................................................................. 8
BUDGETS ..................................................................................................................... 8
1
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 product in 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.
2
Table1 Segment Needs and Feature/ Benefit of the “fun-fun rice balls” rice balls
Targeted Segment
Customer Need
Corresponding Feature/Benefit
Engineers in Hsinchu Rapid
The production process of rice balls
Science-based
is simple and can quickly to complete
Industrial Park
one, so that engineers can save time
cost and rapid get meal.
Feel eat enough
Many Asians feel that only eat some
rice-food in a meal, they will feel eat
enough. Rice balls provide this
function.
Convenient
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
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.
Feel eat enough
Many Asians feel that only eat some
rice-food in a meal, they will feel eat
enough. Rice balls provide this
function
3
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.
4
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,
efficient, healthy, 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
5
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.
6
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. (Figure1and 2)
Figure1 “fun-fun rice balls” dining car in business
7
Figure2 “fun-fun rice balls” dining car in closed
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.
8
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
9
NT$25,000 and variable cost are 50% revenue.
Table 2 Fixed Cost & Variable Cost list
Fixed Cost
Road side stands
Variable Cost
NT$10,000
Rice ball material
Signage
1,000
(rice, pickles, egg,
Awning
1,000
ponder meat, fried
Gas Bottle/Lighting
2,000
bread stick)
License
2,000
Uniform
4,000
Cooking equipment
5,000
Total
NT$25,000
Total
50% revenue
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),
10
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$75,000

52,500/75,000=X/24→X =16.8 ≒ 17 (days)
(52,50/75) ×2(units)＝1,400 ( units) (comprise a single and a combo)
Figure3 Break-even
We can calculate how much profit at end of year one. The profit in one year is
NT$ 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
2
Monthly variable cost＝
＝ 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