BUSN319 Marketing Plan Outline

(BUSN319 Marketing Plan Outline)

Marketing Plan for Corner Dogs

Table of Contents

Marketing Plan Outline. 1

Executive Summary. 4

Company Description. 5

Strategic Focus and Plan. 5

Mission and vision statements. 5

Goals. 6

Core competency and sustainable competitive advantage. 6

Situation Analysis. 6

SWOT analysis. 6

Internal Strengths. 6

Internal Weaknesses. 7

External Opportunities. 7

External Threats. 8

Industry Analysis. 9

Competitor Analysis. 9

Customer Analysis. 9

Market-Product Focus. 10

Marketing and Product Objectives. 10

Target Markets. 10

Points of Difference. 10

Positioning. 11

Marketing Program.. 11

Product Strategy. 11

Price Strategy. 11

Promotion Strategy. 11

Place (Distribution) Strategy. 12

Financial Data and Projections. 12

Past Sales Revenues. 12

Five-Year Projections. 12

Organizational Structure. 13

Implementation. 13

Evaluation and Control 13

References. 15

Executive Summary

The proposed business is a hot dog truck seeking to offer both beef hot dogs and vegan hot dogs. It will also offer sausages, snacks, beverages, and soft drinks. The hot dog truck business aims to provide high-quality and affordable products and offer consumers the best experience in the industry. The business goals include being profitable, which is part of its corporate responsibility, competitive, and environmentally sustainable. The hot dog truck business will attain a sustainable competitive advantage through consistent high-quality offerings, promoting innovation in product offering and marketing, providing great customer service, encouraging collaboration among employees, and building healthy relationships with clients. The company will take advantage of the committed management highly experienced employees, limited competition in the area, online commerce, and less startup risk to ensure its success. It will also explore online selling capability, expanding the business chain, changing market preferences for hot dogs, and affiliate relations with suppliers as external points of innovation and business expansion.

The hot dog truck business enters into an expansive industry, with over $19.2 billion in market size. The market is expected to grow by 3.6% by the end of this year, and it is more promising in the future, with healthier options for hot dogs now available. The industry is highly competitive, and the business will consider limited competition in the operation area before startup. The industry has a large customer base, with a high expenditure on hot dogs and sausages. The business can operate in multiple areas due to the large customer base, including busy streets, public parks, around learning institutions and business offices and near entertainment and recreational areas like clubs, bars, and concert places. The marketing and product objectives include offering hot dogs that are delicious, offering consumers a unique experience, ensuring consistent quality, serving customer needs, promoting individual and community health, and offering economic value. The business will differentiate itself from competitors through unique tests and recipes, consistently high quality, incomparable value, great customer service, ceaseless innovation, and embracing social media and online selling. The business also aims to offer cheaper products than competitors. Financial sustainability is key, which will be achieved through effective management and an organizational structure that reduces communication barriers and considers everyone’s perspective in decision-making. (BUSN319 Marketing Plan Outline)

Company Description

The business name is Corner Dogs. The business is a hot dog truck, which is a mobile vehicle that can be operated in different places. The business sells hot dogs, sausages, snacks, and beverages in the streets. The business supplies thousands of US citizens with food every day. Services are quick and easy to access. Operating hours are between 9 am and 9 pm. Generally, the hot dog truck operates in busy areas and streets, around bars and clubs, outside educational institutions, in public parks, and near business offices. Corner Dogs seeks to serve any person in for a quick snack or a simple meal. Typical consumers include office workers, students, tourists, concert goers, bar and club-goers, and anyone in at the operating areas. There are fewer barriers to entry, with the primary one being competition from other hot dog businesses.

Strategic Focus and Plan

Mission and vision statements

The mission of the business is to offer high quality products at an affordable price, the best consumer experience in the industry, and respect for the employees, consumers, the community, and the environment. The vision statement is to be a leader in offering environmentally sustainable hot dog.

Goals

The goals of the business include to make profit, operate a sustainable business, to be a leader in the competitive environment, and serve as an example to the community and other business regarding operating environmentally sustainable business. (BUSN319 Marketing Plan Outline)

Core competency and sustainable competitive advantage

The business aims to ensure consistent high quality, incomparable value, innovative and successful marketing, great customer service, and ensure ceaseless innovation. Other core competencies of the business include promoting collaboration among employees, promoting the right attitude at work and in engagements with clients, build relationships with clients, employees, and partners, inspire others, communicate clearly and effectively, and create accountability. The business aims to get a sustainable competitive advantage through continuous innovation, offering vegan hot dogs, ensuring healthy business-customer interactions, and offering simplicity.

Situation Analysis

SWOT analysis

Internal Strengths

Committed management: The hot dog truck owner is also the manager. The manager is a highly committed to the business, which is critical to its success and continuous improvement.
Highly experienced operator and employees: The business has highly experienced operator and employees in line, which will help it achieve its goals and objectives and be a success.
Limited competition in the operation area: The hot dog industry is highly competitive. However, the business will set up in areas with limited competition, a critical success factor.
High gross margins: Hot dogs business are categorized as business with high gross margins.
Ability to offer products online: The business will adopt online selling and customer engagement, which is a trend for many businesses.
Less startup risk: The risk for starting a hot dog truck is minimal, which encourages entry into the market.

Internal Weaknesses

Competitors can deliver similar offers quickly: It is easy for competitors to offer similar products, making innovation impact short-lasting.
Less barriers to entry: Anyone with interest and money can easily enter the market, increasing competition.
High transportation costs: Operating a hot dog truck in different areas increases transportation costs.
Limited pricing flexibility: Hot dog tend to have a fixed price bracket, and the high competition in the industry limits prices changes.
Lack of permanent personnel: Most people employed as hot dog truck employees are in for side hustle, and it is difficult to find permanent employees.

External Opportunities

Continued expansion of online selling capability: The business will take advantage of the online customer base and digital platforms to sell and engage consumes.
Ability to develop additional chains in form of hot dog trucks: The business can expand by acquiring additional tracks to cover more areas.
Changing market preferences of organic and vegan alternatives of beef hot dogs: Consumers are chasing healthy diets and lifestyles. The business can take advantage of this trend to offer organic and vegan alternatives of beef hot dogs.
Creation of priority products: Priority products allow the business to offer more of what consumers need more, increasing sales and profits.
Affiliate relations with related suppliers: It is easy to take advantage of suppliers who offer consistent deliveries, important for business continuity, through affiliate relations.

External Threats

Changes in regulations: Hot dogs business face changes in regulations, especially food and safety regulations that call for high compliance.
Most products already offered by existing competitors: Existing businesses are already offering most of the products the business intends to offer, including vegan hot dogs.
Increasing insurance costs: The business environment is risker, and security issues, including frequent shootings, increase insurance costs.
Worsening economy with rising inflation: Since last year, Americans are experiencing difficult times due to increasing inflation which raises the price of all items. The worsening economy is not good for business, and every attempt is a risk.
Increase in the price of inputs, causing upward pricing: The upward pricing increase startup cost and cost of product offerings.

Industry Analysis

The hot dog and sausage production industry was at an estimated $19.2 billion market size. The market size is anticipated to grow by 3.6% towards the end of 2022 (IBISWorld, 2021). In the past five years, the hot dog and sausage production industry market size has expanded by an average 2.0% every year since 2017 (IBISWorld, 2021). Compared to other industries, this industry has grown slower that the US economy in general. However, the industry grew faster than the consumer goods and services sector. Per capita meat consumption and increasing competition are the two trends impacting the industry. Majority of hot dogs are still produced using beef and pork. There is a growing trend towards vegan or plant-based hot dogs.

Competitor Analysis

The hot dog industry is a highly competitive one (IBISWorld, 2021). There are well-established chains like the Nathan hot dogs that have occupied a significant part of the market and have established brand loyalty. However, other small chains like hot dog stands, trucks, and kiosks still serve a considerable market size due to their flexibility and availability. Despite the high competition, almost every individual in the US is a consumer.

Customer Analysis

The hot dog market size is large, with Americans spending about $7.68 on hot dogs and sausages (IBISWorld, 2021). Almost everyone is a consumer with little market segmentation. Most consumers are in busy streets, public parks, around learning institutions and business offices and near entertainment areas like clubs and bars. Differentiation by creating unique tastes and recipes and offering additional products like drinks is an approach most business in the sector adopt to establish consumer loyalty. (BUSN319 Marketing Plan Outline)

Market-Product Focus

Marketing and Product Objectives

The objectives of the business is to offer hot dogs that:

Are delicious
Offer consumers with a unique experience
Ensure consistent quality
Serves the needs of all consumers
Promotes consumer good health
Offer economic value

Target Markets

The hot dog businesses targets anyone in need of a quick or simple meal. The business does not restrict its market to particular groups of customers, but it will operate in areas with students, business offices, tourists, concerts, and bars and clubs. The business will also operate in busy streets and public parks with consistent human traffic.

Points of Difference

The business will differentiate from competitors through:

Unique tests and recipes
Consistent high quality
Incomparable value
Innovative and successful marketing, including social media marketing and online selling
Great customer service
Ceaseless innovation

Positioning

The business seeks to occupy the consumers mind as one that offers high quality, tasteful, delicious, and healthy hot dogs. The business targets customers with a lifestyle of quick and simple meals or quick snacks between major meals. The business also targets consumers in need to affordable hot dogs. The product will also position itself in an online space as many consumers continue to appreciate online marketing and selling. (BUSN319 Marketing Plan Outline)

Marketing Program

Product Strategy

The business seeks envisions its hot dogs as moving towards sustainable competitive advantage by taking into consideration current market and industry trends such as appreciation for high quality, but affordable hot dogs, plant-based hot dogs, environmental awareness, flexibility, and the need for complementary products such as drinks and beverages. The business wants to establish a brand loyalty by offering unique customer experiences through unique tastes, toppings, ingredients, and condiments.

Price Strategy

(i) Break-even Analysis

The business will offer competitive pricing for its products. The aim is to offer cheaper products than competitors, but ensuring profitability. The pricing will be affordable, with prices ranging between $1.5 and $ 3 for a hot dog. Cheaper pricing of products can impact profit margins, and it might take longer to break even. However, if affordability attracts numerous consumers, then it will take a shorter time to break even.

Promotion Strategy

The business will leverage widespread internet and social media to promote its products. The business will create an online presence, adopt online promotion tools such as the use of influencers, and engage potential consumers online. It will also adopt other promotion strategies like arranging a party to raise awareness, participating in community events, using direct sales and marketing, designing brochures, and listing the business on directories. Referrals are also a great way to promote the business.

Place (Distribution) Strategy

The hot dogs will be available to anyone in proximity of the hot dog truck, in public places like parks, busy streets, around business offices, academic institutions, and entertainment facilities like bars and clubs. The business will have a website where it can engage with consumers online and serve their orders. Selling direct to customers in various locations will be the primary delivery mode. The business will also partner with vendors like sports complexes, school cafes, grocers, and recreational centers to promote and offer its brand of hot dogs. (BUSN319 Marketing Plan Outline)

Financial Data and Projections

Past Sales Revenues

Item	2021	2020
Total revenues	$ 103,325	$ 101,849
Total costs and expenses	$ 76,153	$ 73,873
Net income	$ 27,172	$27,976

Five-Year Projections

Item	2026	2025	2024	2023	2022
Total revenues	$ 170,600	$ 155,800	$ 126,475	$ 112,750	$ 104,625
Total costs and expenses	$ 75,000	$ 82,160	$ 80,100	$ 77,140	$ 76,180
Net income	$ 95,600	$ 73,640	$ 46,375	$ 35,610	$ 28,445

Organizational Structure

The business will be a sole proprietorship, an unincorporated business with a single owner who is entirely liable to the business capital, taxes, and debts but enjoys all the profit from the business. A sole proprietorship startup cost is low, and establishing and operating the business is simple (Cappellino, 2020). The legal structure is uncomplicated, and operating hours can be flexible depending on customer and business needs. The business will have two employees to help operate the food truck. The organizational structure will be hybrid, with the two employees answerable to the business ownr. Communication and decision-making will be horizontal, but key decisions will be made by the owner.

Implementation

The marketing strategy will be implemented to achieve the overall goal of making the business successful. Implementation will involve executing the developed marketing plan and strategies, including promotion, pricing, product, and distribution strategies. The process will also seek to increase brand awareness, communicating product objectives, identifying target market, and specifying why customers should consider our products instead of competitors’. The implementation will seek to streamline tasks, promote efficiency, and drive business growth.

Evaluation and Control

Evaluation will help ensure the business is achieving its accomplishments. Evaluation will compared the business performance with project outcomes, and offer feedback on overall business state. The evaluation and control is strategic to help determine the effectiveness of the marketing strategy in achieving the business’ objectives and advising corrective measures. Control will be done through contingency strategies formulation and crisis management. Contingency plans will guide adjustment implementations and continuous quality improvement to help the business remain profitable and relevant for the longest time. Crisis management will help address any disruptive or unexpected event impacting business normal operations, consumers, employees, stakeholders, or income sources. (BUSN319 Marketing Plan Outline)

References

Cappellino, A. (2020). How to choose the right business organization form.

IBISWorld. (2021, September 30). Hot dog & sausage production in the US – market size 2004–2027. https://www.ibisworld.com/industry-statistics/market-size/hot-dog-sausage-production-united-states/