Fressen Catering Marketing Plan

1234 S. Highway 191 Philadelphia, PA 23437 (830) 656-7363

Prepared By: Michael Fox Eastern Arizona College Small Business Development Center 615 N Stadium Ave. Thatcher, AZ 85552 (928) 428-8590 Michael.fox@eac.edu

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Table of Contents
Table of Contents.......................................................................................................................................2 1.0 Executive Summary...............................................................................................................................2 2.0 Current Situation....................................................................................................................................2 2.1 Location..............................................................................................................................................2 2.2 Target Market Description..................................................................................................................3 2.3 Market Demographics........................................................................................................................3 2.3.1 Geographics................................................................................................................................3 2.3.2 Demographics..............................................................................................................................3 2.3.3 Behavior Factors..........................................................................................................................4 3.0 Competitor & Issues Analysis................................................................................................................4 3.1 Competition........................................................................................................................................4 3.2 SWOT Analysis..................................................................................................................................4 3.2.1 Strengths.....................................................................................................................................4 3.2.2 Weaknesses................................................................................................................................4 3.2.3 Opportunities...............................................................................................................................5 3.2.4 Threats........................................................................................................................................5 3.3 Critical Issues.....................................................................................................................................5 4.0 Marketing Strategy.................................................................................................................................5 4.1 Mission...............................................................................................................................................5 4.2 Marketing Objectives..........................................................................................................................5 4.3 Target Marketing................................................................................................................................6 4.4 Positioning..........................................................................................................................................6 4.5 Marketing Mix.....................................................................................................................................7 5.0 Budget...................................................................................................................................................8

1.0 Executive Summary

Fressen Catering is a kosher catering company that serves the Philadelphia market. Fressen offers creative, colorful, and unusual food options for kosher, as well as the traditional kosher standbys. The service offerings are quite a change relative to the existing kosher catering market which is quite stagnant. Most people make the incorrect assumption that kosher means ordinary, boring food. This assumption prevails throughout the Jewish community so there is not much demand for new offerings. Fressen catering will inject new life into the kosher catering market, leveraging Chef Susan Cheflly's culinary skills to develop creative new catering options. Susan's advanced skills, industry insight, and a great market opportunity will allow Fressen Catering to reach profitability by month 11.

2.0 Current Situation

2.1 Location
Fressen Catering will be located at 1234 S. Hwy 191 in Philadelphia. This location is ideal because it provides easy access to the community we will serve. It is centrally located and has easy access to all of the major freeway systems in the city. The only negative aspect of the

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location is that the building is not ideal for walk-in business. As the business grows the building may be altered for aesthetic appeal.

2.2 Target Market Description

Fressen possesses good information about the market and knows a great deal about the common attributes of our most prized and loyal customers. Fressen will leverage this information to better understand who is served, their specific needs, and how Fressen can better communicate with them.
Target Markets

Market Analysis Potential Customers Middle class kosher customers Upper class kosher customers Total Growth 2004 2005 2006 2007 2008 CAGR

9%

120,547

131,396

143,222

156,112

170,162

9.00%

8%

80,457

86,894

93,846

101,354

109,462

8.00%

8.60%

201,004

218,290

237,068

257,466

279,624

8.60%

2.3 Market Demographics

2.3.1 Geographics

The immediate geographic target is the city of Philadelphia with a population of 3.5 million. A 60 mile geographic area is in need of Fressen's services. The total targeted population is estimated at 201,000.

2.3.2 Demographics

Families. A household income over $55,000. Jewish.

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2.3.3 Behavior Factors

Attend synagogue a minimum of five to 10 times a year. Practice kosher inside the home. Do not eat out much because of the difficulty of finding kosher meals at restaurants. Appreciate high quality, innovative food offerings.

3.0 Competitor & Issues Analysis

3.1 Competition
There are four other kosher caterers that serve the low to middle end of the market. These caterers compete to some degree on price (due to budget constraints of some clients), more so on service. The quality of the food and the serving of the food are the main areas of service that the caterers compete on. There is one high-end caterer who will compete with Fressen. This caterer, while serving the upper-end market, often does not offer an upper-end service. Their business has been declining over the last few years. People with knowledge of the industry recognize that this company is not a strong competitor because of their overpriced service offerings relative to the service provided. Lastly, one competitor for the high-end market is kosher caterers from New York City. When cost is no object, there are many people that are willing to pay the additional cost of bringing in the caterer from NYC.

3.2 SWOT Analysis

The following SWOT analysis captures key strengths and weaknesses within the company and describes the threats facing Fressen.

3.2.1 Strengths

Strong relationships with many different congregations. Excellent staff who are highly trained and very customer attentive. Superior service offerings. High customer loyalty.

3.2.2 Weaknesses

The struggle to build brand equity. A limited marketing budget to develop brand awareness. The difficulty finding someone with enough culinary skill to support Susan.

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3.2.3 Opportunities

Growing market with a significant percentage of the target market still not aware that Fressen exists. The steep learning curve that kosher food can be creative. The ability to develop many long-term customers because of a close-knit Jewish community.

3.2.4 Threats

Competition from similar service providers in NYC. Local, established competitors that wake up and realize that there is a huge market in Philadelphia. The inherent high cost of kosher food production. A slump in the economy that will decrease customer's budgets for parties.

3.3 Critical Issues

Fressen Catering is still in the speculative stage as a caterer. The critical issues will be handled by:

Taking a modest fiscal approach; expand at a reasonable rate, not for the sake of expansion, but because it is fiscally wise to. Continue to build brand awareness which will drive customers to increase their usage of Fressen as well as be vocal to their friends about the positive experience they had.

4.0 Marketing Strategy

4.1 Mission
Fressen Catering's mission is to provide the customer with the finest kosher catering. We exist to attract and maintain customers. When we adhere to this maxim, everything else will fall into place. Our services will exceed the expectations of our customers.

4.2 Marketing Objectives

1. Maintain positive, steady growth each month. 2. Experience an increase in new customers who are turned into long-term customers. 3. Decrease the market expenses as a percentage of sales.

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4.3 Target Marketing

The target market segment strategy will not be significantly different to address the two groups. Both groups, regardless of income, typically belong to the same group of religious congregations. Therefore, to reach the different groups does not require a distinctly different strategy. What differentiation it will require is different menu offerings are needed to satisfy the different groups. The upper end menu items are simply cost prohibitive for the middle class target segment. Fressen Catering has two distinct target populations: 1. Middle-class kosher clients: This group of people does not have huge amounts of disposable income, recognizes that it is costly to sponsor a kosher dinner party, and is willing to incur the expenses, but will try to minimize them. 2. Upper-class kosher clients: This group has intertwined kosher values throughout their lives and is willing to spend whatever it takes to throw a high-end kosher dinner function. Typically, this group is characterized by a wealthy one income family where the male works and the female does not. The female of the household typically enjoys the planning of these events.

4.4 Positioning
Fressen will position itself as an innovative, high-quality kosher caterer. Philadelphia Jews who keep kosher will recognize the unique, high-quality service offerings of Fressen. Fressen's will leverage their competitive edge:

Fressen Catering's competitive edge is based in their customer attention 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 having a lot of demand is a decreased pressure to accommodate customers. When you have a lot of customers, you have to modify your business plans less to deal with them. 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.

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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.

4.5 Marketing Mix

Product: Fressen Catering will provide Philadelphia with high-quality kosher catering. The catering service will be for weddings, Bar/Bat Mitzvahs, and other assorted parties. As stated earlier in the plan, Fressen will use only the best kosher foods in preparing top quality dishes. Our top notch customer service will be a hallmark of our product. Price: Fressen's pricing scheme is based on a per plate, or per person charge. Depending on the type of food and type of service the customer orders our price will range between $7.95 and $15.00 per plate. These prices are competitive but on the high side compared to competitors. Promotion:

Maintain positive, steady growth each month.

Advertisement in local Jewish newsletters and newspapers Word of mouth advertising at local synagogues Advertisement in local Jewish newsletters and newspapers Word of mouth advertising at local synagogues PR campaign to local papers regarding our customer service As name becomes established focus more on word-of-mouth and PR and less on newspaper advertising.

Experience an increase in new customers who are turned into long-term customers.

Decrease the market expenses as a percentage of sales.

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Place: Fressen serves the greater Philadelphia area in any type of facility. Out location provides outstanding access to all major freeways in the area.

5.0 Budget
We will not complete this section. It is not within the scope of this course.