Fressen Catering

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Catering Company Business Plan

Strategy and Implementation Summary

Fressen Catering will gradually gain market share in the kosher catering market by leveraging its competitive edges. These edges are superior attention to detail and innovative nouveau cuisine kosher meals. The edges that Fressen will leverage are areas that have been ignored in this market for some time now. These competitive edges coupled with a targeted advertising campaign and networking will be Fressen's game plan for increasing their market share.

5.1 Marketing Strategy

Fressen's marketing strategy will be based on developing visibility among Philadelphia's kosher community.  This will be accomplished through two ways. The first method is a targeted advertising campaign.  Advertisements will be placed in various Jewish newsletters. There are a couple of Philadelphia-wide newsletters. Additionally, Fressen will advertise in a few Synagogue-specific newsletters. These advertisements should yield a decent amount of service inquiries since they are fairly targeted toward the target population that utilizes kosher catering.

The other marketing strategy which is less formal is a networking campaign among the Philadelphia Jewish population.  Susan has been an active member of the Philadelphia Jewish community for five years.  While the Jewish population is of decent size, numbering around 200,000, it is a fairly close knit community where people tend to know each other.  Susan will leverage her contacts within the Jewish community to raise awareness for her catering activities.  While the networking might not cast as large of a net as advertisements will, it costs far less and the relationships that it builds will be far stronger because of the trust relationship that has already been established.

5.2 Competitive Edge

Fressen Catering's competitive edge is its attention to servicing customers and inventive approach to kosher cuisine. Fressen's customer attention differentiates them in the world of kosher catering which is dominated by several companies that have plenty of demand.  The consequence of market demand is a decreased pressure to accommodate customers. Fressen is approaching the market as if there was significant competition between the different service providers.  By making customer satisfaction a priority, over time, local customers will come to appreciate the attention that their needs are given and form a long lasting relationship with Fressen Catering.

Fressen's other competitive edge is their nouveau cuisine approach to kosher food. Traditionally, kosher food has remained stable and unimaginative for a long time.  Most people believe that there are large compromises that must be made when serving kosher. These compromises need not be made however, and Fressen is changing these misperceptions.  Just because there are strict rules regarding the types of foods that may be used and the way it must be prepared does not eliminate creativity.  Fressen is taking their knowledge of nouveau cuisine and creating inventive, colorful, and delicious kosher alternatives.

5.3 Milestones

Fressen Catering will have several milestones early on:

  1. Business plan completion.  This will be done as a roadmap for the organization.  This will be an indispensable tool for the ongoing performance and improvement of the company.
  2. Kitchen and office set up.
  3. The first catering job.
  4. Profitability.
Milestone Start Date End Date Budget Manager Department
Business plan completion 1/1/2001 2/1/2001 $0 ABC Marketing
Kitchen and office set up 1/1/2001 2/1/2001 $0 ABC Department
The first catering job 1/1/2001 3/1/2001 $0 ABC Department
Profitability 1/1/2001 12/1/2001 $0 ABC Department
Totals $0

5.4 Sales Strategy

Fressen's sales strategy will use a combination of superior customer attention and a comprehensive repertoire of dishes for the menu to turn information seekers into customers.  Susan recognizes when a prospective customer calls to get information about Fressen, it is Susan's main opportunity to turn them into a customer.  She will do this by spending as much time on the phone as necessary. 

Another benefit that Susan will leverage to develop sales is her comprehensive menu.  In addition to all of the traditional kosher dishes, Susan will offer many innovative nouveau cuisine kosher items that she has developed over her years spent in the culinary industry.  An innovative available menu should be seen as a large benefit.  There is no intuitive or logical reason that people who adhere to kosher are any less adventurous when it comes to food other than the fact that they have been raised that way.

5.4.1 Sales Forecast

The first month will be used to set up the kitchen and office.  There will be no sales activity during the first month. The second month will see a few catering jobs, but still will not be a significant source of income. Months three and four will see a steady increase in sales. Word will have gotten out from the advertising as well as networking that Fressen is the new kosher caterer in town and offers a very high-quality service. Throughout the year it is forecasted that sales will incrementally grow in size until profitability is reached toward the end of year one.

Sales Forecast
Year 1 Year 2 Year 3
Middle class $83,017 $170,992 $183,774
Upper class $95,422 $196,543 $211,234
Total Sales $178,439 $367,535 $395,008
Direct Cost of Sales Year 1 Year 2 Year 3
Middle class $24,905 $51,298 $55,132
Upper class $28,627 $58,963 $63,370
Subtotal Direct Cost of Sales $53,532 $110,261 $118,502

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