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The Salad Bar
Background
The introduction of Healthy salads by The Salad Bar is in a response to the rising cases of obesity in the country associated with eating unhealthy foods in fast food restaurants. Healthy salads are basically made from fresh farm produce such as lettuce and juices from fresh fruits will also be made, instead of the milkshake served in other fast foods outlets. Water will also be available at the convenience of the customers. The production and selling of the products shall take after the model of other restaurants such as In-n-out Burgers. Owing to the limited capital, the salad Bar will begin with a single restaurant with a plan to establish a countrywide presence in five years.
By introducing these salads, The Salad Bar is looking forward to replacing the already existing market for fast foods with salads. Following this, customers will conveniently access healthy foods in any location in the country. As a result initial survey of the market indicates that the market for the new products exists. According to Jeffrey and French (1998), fast foods consumption and lack of exercise result in obesity and overweight situations (p.277). The combined effect of the healthy nature of the food, the favorable prices and the convenience in accessing the products will lead to increase in sales. The strength that the company has is convenience, and the strong product offered. The weaknesses include low capital and unreliable employees. The opportunities include favorable market, recovering economy, excited consumers and lack of stiff competition. The potential threats are the unpredictable economic situation, indecisive customers and financial instability.
Note that the current in research in the food industry indicates that parents as customers in this industry play a critical role in determining what is eaten by their children. Therefore, the development of advertisement plans would be tailored to focus more on attracting parents as customers for these salads. In addition, other adverts would target old people as most of them are on diet while others prefer natural foods with less fat. Therefore, these groups would form the major targets of the adverts which would be run on television, radio and the internet, especially on blogs.
The adverts would run for a period of two weeks before launching these salads on the market. This is meant to create awareness among consumers and to assist them to realize and understand the need for healthier foods in their diet. Thereafter, these adverts would continue running, except that this time they would be on a less frequent basis; first to bring customers to an attention that there are healthy foods and to remind them on the places where these foods are found. Another area of focus would be on prices.
On the other hand, outdoor promotions would also be important in the marketing of these foods. For instance, front-door promotions of actual food outside supermarkets, hypermarkets, etc. In consistency with this, the customers who visit these places would be able to visits the promotional stalls and taste these salads. As a result, these consumers would be presented by an opportunity to make their decisions on these foods based on facts in regard to the actual tastes of these foods.
The advertisements and promotions of these foods are expected to increase the customer base of these products on the market. Notably, the creation of awareness of products among customers has been found to increase sales of products. In consistent with this, the promotion of these foods is expected to create a customer base. Furthermore, these promotions and adverts would alleviate the place of these foods in the market. On the other hand, these adverts and promotions are expected to increase sales and revenue in the short run. Therefore, these adverts and promotions should be run for the first three months as the market for these products is established. This would ensure a firm establishment of these products in the market as well as increase the revenues during this period. Additionally, this would also attract more customers to shift their buying behaviors towards spending their money on healthier foods.
The items to be covered by the promotion are convenience, health and efficiency of the service. The foods served are low in carbohydrates and fats and include the following: organic and raw fruits, fat and grease free meats, fresh real fruit shakes, greens such as lettuce, vegetables such as green beans, snap peas, radishes, broccoli, avocadoes, tomatoes cucumbers, zucchini and carrots. Healthy meats such as lean beef, cooked shrimp, tuna and chicken breast will also be included. In addition, lemon juice, salad dressing and clear drinking water will be served if desirable.
The expected net income for the first year of trading is 63,161. The net purchases for the year amounted to $61,000. Note that these were projected figures and they were expected to go higher or a little lower after the launching of the product in the market depending on the success of promotions and the advertisement campaign which was being carried out. In this respect, it was important to enhance the advertisement and promotional campaigns which were being carried out.