New World Delicatessen (NWD) is an eating establishment focusing on heathy, nutritious, and fast food to the local downtown area.
The New World Deli will be an upscale deli specializing in a combination of fast hot or cold sandwiches and salads plus specific recipes focusing on the Pacific Northwest cuisine.
Based on this distinct menu, New World Deli will follow a differentiation strategy that will provide unique, or hard to find choices to deli patrons.
The keys to success for NWD will be repeat business, an excellent location convenient to downtown businesses and its unique Northwest Pacific cuisine.
The company will be a sole proprietorship owned by Ms. Jane Ericson. Ms. Ericson will be providing £20,000 capital investment and there will be an additional £30,000 raised in short-term loan.
Entering into this market will not be easy, the industry is highly competitive, with periodic overcapacity, low margins, and low entry/exit barriers. In addition, there is a large number of substitutes, and the suppliers to this market have a great deal of power.
In order to overcome these issues, the company has acquired an excellent locality in the downtown area and intends to provide a suitably upscale environment to draw in the company's main target market segment, the business professionals. The company will seek to provide these customers with the maximum number of services to create the greatest sales volume during the company's peak hours of operation.
The company will have a comprehensive marketing, advertising, and promotion campaign that will maximize word-of-mouth marketing and will consist of radio, printed material, billboards and discounts.
The company has planned to offer its products at a slightly higher price than that of its competitors. This is to provide credibility to its clients as an upscale establishment that provides a unique menu. This will also provide the funds to cover the higher than expected operating costs due to the differentiated and expanded menu.
It is estimated that the company will have sales over £700,000 by year three, and maintain a healthy cash flow.
1.1 Keys to Success
Repeat business. Every customer who comes in once should want to return, and recommend us. Word-of-mouth marketing is a powerful ally.
Location. Convenience is essential to us, we need to be close to our market because we are not trying to get people to travel to reach us.
The right food, variety with a Pacific Rim theme, with a price high enough to establish credibility, but not so high as to limit customers.
The New World Delicatessen will be an upscale deli specializing in a combination of fast hot or cold sandwiches and salads plus specific recipes focusing on the Pacific Northwest cuisine.
Based on this distinct menu, New World Deli will follow a differentiation strategy that will provide unique or hard to find choices to deli patrons. This will provide Ms. Ericson with the ability to charge slightly more for its food services than most competitors and return a significant profit.
New World Deli seeks to achieve the following goals:
Cash flow self sufficiency by the end of the first year.
Repay debt from original financing by the end of the second year.
Provide an income for founder-owner with income growth possibilities.