Business Plan BonChon free essay sample

A Short History of BonChon Its Existence in Indonesia : BonChon is a Korean casual-fast food restaurant that specialized in chicken. BonChon is a restaurant which provide a healthy fast-food for their customer. They can be said as healthy fast-food restaurant because : They don’t use broiler chicken They use the sweet natural fruit extract seasoning They never put the chicken in freezer They never brush the chicken with machine, they hand brush each chicken to perfection They always wash their chicken using specially filtered water After 2 years existence in Indonesia, now BonChon has 14 stores that separated in Indonesia (Jakarta, Bali, and Surabaya). BonChon already accepted by Indonesian people and being one of the top fried chicken in Indonesia with other fried chicken restaurant like Mc’donalds, Lotteria, KFC, AW,etc. When entering the third year in Indonesia, BonChon want to make new experience for Indonesia and developed the market range from A and B class to A to C class with new menu set creation. Diagnosis Environment Analysis A. BonChon SWOT Strength Natural healthy fast food Interesting cozy place Unique secret seasoning Ways of presenting the food Weakness Stores aren’t located at the strategic place Lack of promotion Small portion Opportunity New chicken seasoning in Indonesia, so make people interested and want to try that Indonesian people habits to eat fast food Booming of the Korean’s Culture in Indonesia, so people can easily accept BonChon Threat Not as well known as the other fast food restaurants Lost in branding (if BonChon be compared with another fast food restaurants) Indonesian people awareness about their health, they don’t really care about their food’s healthiness B. Customer Analysis BonChon target customers are : Segmentation : Bonchon divided the market by the income : A class for person with income more than Rp5. 000. 000 B class for person with income between Rp3. 500. 000-Rp5. 000. 000 C class for the person with income less than Rp3. 500. 000 Targeting : Bonchon choose to make a product for A and B class with their product. Positioning : Bonchon make the restaurant with classy design for the restaurant and high healthy food with juicy flavour. Based on our observation BonChon target customer is person with AB Class because of some reason : The price at BonChon is quite high and fit with them Design of the restaurant is classy BonChon provide healthy food where the AB class aware with, the C class not very aware with the healthy food From our observation and desk research we got that AB Class customer at BonChon is mostly from family customer rather than from individual customer. So,BonChon’s main focus is to provide customer with high quality and healthy food with good services for the customer satisfication. C. Competitor Analysis 1. Mc’Donnalds Market Position : They cover many customer levels in the market. They have a breakfast menu for the workers, a children package playground for the kids, another that they have a cheap menu for the C class. Market position Mc’Donnalds is the restaurant with comfortable place for hang out, fun place for kids (have kid’s playground), and 24 hours restaurant. Strength Have many strategic stores Have a good branding promotion Cover many customer levels Weakness They don’t really concerned about their product’s taste 2. Lotteria ­Ã‚ ­ Market Positioning : Lotteria’s market positioning is to make restaurant with clean environment, good and fast service, an high quality food. Strength Big Portion Chicken with a special seasoning Weakness Store’s design not very attractive Not very good at branding and promotion Current BonChon Markets Objectives Entering the third year in Indonesia, BonChon wants to create new experience for their customers and develop the market range from A to B class to A to C. So BonChon want to make new menu set creation that can provide the C class at BonChon. With a budget of Rp. 50,000,000 in 3 months,we must market,advertise,and promote this new menu set creation. Plan BonChon need the new set creation menu that provide the C class customer. To make this new set menu,first we decided to devide C class to some segment by ages. After we targeting the 15-20 years old’s segment as our target market which is the students and college students. So we posisioning our new product as the low cost set menu for students and college students. After we know our market,we need to know what the student and college student needs. So we used questioner method to find out what is students and college students needed. Data On Monday, November 11th 2013 we have given questioner to 100 volunteers. Our questioner contains 5 questions that has purpose of each question. These are our result of our questioner : 1. How many times do you go to Shopping Mall? First, as we know BonChon Chicken has 14 stores around Jakarta, Surabaya and Bali. All of the stores were established in Shopping Mall. Therefore, we have to know how many times people go to Shopping Mall in a month. If we know about the college student’s frequency go to the shopping mall, we can predict how many potential loyal customer of our segmentation target (college student). After that, we can decide how important the location in the Shopping Mall. Based on he questioner, we know that most of college student go to the shopping mall at least once a week. Even, 69% of college student go to shopping mall at least twice a week. We guarantee, most of them will get the lunch or dinner in the shopping mall. Therefore, if BonChon Chicken can make equilibrium demand with the college student, they will be the loyal customer for BonChon Chicken. To take their loyalty, BonChon need strategic location. It can increase the awareness of brand BonChon Chicken to take lunch or dinner. And how about the location of BonChon Chicken right now? 2. How much the average price do you often spend for lunch / dinner while you go to the Shopping Mall? After we know about the college student’s frequency go to the Shopping Mall, we have to know how much money they spend to get their meal. By this question, we can assume the normal price they want to spend for a meal and how much that we should put the price for our new product. Based on the chart, we can conclude that college student often spend IDR 35. 000 – 50. 000 for their meal. Actually, the price supply which is given by BonChon Chicken match with the consumer’s willingness to pay. According to this assumption, if BonChon makes a product whose price about IDR 20,000 which is lower than average price, it will be a great deal and increase the profit. College student who is one of member of Class C will get more consumer surplus and they will prefer to choose BonChon rather than the other fast-food restaurant. We believe that since the first time BonChon was founded, BonChon create itself as one of premium fried chicken restaurant. Therefore, we don’t want to break the image even when BonChon want to make an innovation to reach the C class. We guess IDR 20,000 is the best price for BonChon’s menu to reach the C Class without break its image as the premium fried chicken restaurant. 3. What is your favourite menu at fastfood? As we know that a fast food restaurant is providing many kind of foods, like chicken, ice cream, burger, salad, french fries, etc. To make a new menu creation, we should know which menu is the most favorite one. From the result from our questioner, we knew that the most favorite product that customers want from a fast-food restaurant is chicken. So, we conclude that we need to make a new menu that consists of chicken. Another reason why we choose a new menu that consist of chicken is because we see that BonChon has specialty in chicken menu, so BonChon’s specialty is match up with the customers’ needs, and we believe that it will be a great opportunity for the new menu creation. 4. What is your priority scale when you choose to buy a meal in the fast food restaurant? Please give score from 1 – 7 to each sector. ( 7 = very important ) This chart is telling about customer vaue that customer need and 3 restaurant compared with the customer value. We get the customer value from the 100 quistioneir and the point of 3 restaurant is from our team’s opinion based on observation and desk research. We sure, to make a great innovation we have to understand the customer value also the competitive advantage of our company and competitor company. We choose McD and Lotteria as the competitor of BonChon Chicken because of some consideration. First, as we know Lotteria and BonChon Chicken have a major similarity which provide Korean fried chicken, so it’s very obvious that Lotteria is a competitor for BonChon Chicken. After that, we choose McD as the other competitor because McD is the most famous fast-food in Indonesia. Not only in Indonesia, McD is the most famous fast-food in the world. We believe by choosing McD as the competitor, BonChon Chicken can learn many things such as McD’s competitive advantages and also how they accomplish the customer value. Based on the result from 100 volunteers, we know the fact about the customer priority scale. Most of the customers consider 3 things to choose their meal, that are Price, Taste, and Hygiene. They need meal with low price, taste good and hygiene appearance. Indonesian customer doesn’t give big attention to healthy factor when they want to get meal in a fast-food restaurant. Talk about BonChon, we think BonChon has good taste, very hygiene appearance but can’t provide cheap price. In the other hand, McD just has standard taste, standard hygiene factor, but it can provide cheap price. These factor make BonChon can’t beat McD as the fast-food restaurant. If we want compare BonChon Chicken with Lotteria, the taste of Lotteria is not good as BonChon. But Lotteria can provide lower price than BonChon with the portion more than BonChon Chicken. We could say that BonChon Chicken and Lotteria lie in the same position. If we want to make a new menu for C Class, we have to press the variable-cost but still provide the customer value. Therefore we have arranged the new menu that focused in 3 most important customer value, that is price, taste, and hygiene. We will reduce the healthy factor in BonChon Chicken because it isn’t considered as the important factor. 5. What is the most effective social media that give you many information about Food Beverage After we understand about the customer value and try to create new menu based on the customer value and characteristic of BonChon Chicken, we have to know the way to promote our new product. We can do promotion with conventional ways or with social media effect. The conventional promotion can be done by using banner and backdrop. Besides that, we will also promote this product by social media promotion because of the effectiveness of social media in Indonesia. As we know, social media is one of the easiest way to affect Indonesian. There are many kind of social media in Indonesia, such as Twitter, Instagram, Path, Facebook, etc. Because we want to promote the product not only with conventional ways, we must know about what is the most famous social media for college student. Based on the result of our questioner, we knew that Instagram take the first place, Path as the second, and Twitter at the third place as the most effective social media to share the newest info about food and beverage. First, we want to use Instagram and Path as the social media promotion. But later we realize that Instagram and Path just compatible with iOS and Android system, so we rearrange the plan and we choose Instagram and Twitter as the social media to promote the new menu. By choosing Instagram and Twitter,we can expand the promotion, because is not only for iOS and Android users. The social media promotion will be done by photo competition which is explained in other part (4P). Questioner’s Conclution From our questioner, we got some conclusions : Student and college student have a high frequency to eat at mall They usually spend Rp35. 000-Rp50. 000 at the mall for their food The favourite product at fast food restaurant is chicken Student and college student’s priorities for fast food are the price, taste, and higiency The top social media for promoting the fast food are instagram, path, and twitter. From that data we know that, the new menu that the student and college student’s needs is: The price is under Rp35. 000-Rp50. 000 The taste is good The product’s higiency must be good The information about the new product promoted from instagram, path, and twitter Product â€Å"BonChon Chicken Wrap Set Menu† Bonchon Chiken Wrap Set Menu consist of BonChon Chicken Wrap and soft drink. BonChon Chicken wrap is a rice with some slice of chicken flesh and chicken skin mixed up with BonChon’s special sausage and wrapped with the creepe. When we bite this BonChon Chicken Wrap ,we will get the juicy, crunchy, and delicious in a bite. We set this menu because of the result of our questioner. This menu consist of 3 most important factor for C Class that are cheap, good taste, and hygiene. We can guarantee that the variable cost of our new menu is lower than the value meal menu of BonChon Chicken. Therefore we believe if BonChon Chicken sell our product, BonChon will get more revenue than before. We don’t talk too much about the hygiene of the process to make Chicken Warp because we sure that BonChon Chicken has good standard about hygiene Price We could say, even with only Rp20. 000 customer can get this BonChon Chicken Wrap with soft drink. We have calculated the variable cost and the profit will be get by the seller. The variable cost of Chicken Warp is : Creepe:Rp 1,500,00 Chicken Skin + Chicken Flesh (100g):Rp 4,000,00 Rice:Rp 2,000,00 Additional Seasoning:Rp 2,000,00 Rp 9,500,00 It prove that the variable cost of our new menu is lower than the other but still has great taste. Because of the calculation, we could state the price of our menu is Rp 20,000 include the soft drink. Place This Bonchon Chicken Wrap Set Menu will be sold at all BonChon’s Store at Indonesia Promotion We use 2 ways to promote our BonChon Chicken Wrap Set Menu: 1. Event Twitter and instagram photo competition We make weekly event for 3 month that use twitter and instagram as our tool, we challenge the customer to post their photo at BonChon store with our BonChon Chicken Wrap Set Menu. They must follow us at twitter or instagram and post their photo with has tag #BonChonChickenWrap , as the reward we give them 1 free mochi ice cream. Every week we choose the most attractive photo from instagram and twitter, the one who win will get money as the prize. We choose social media as our marketing tool because in Indonesia, the social media effect is strong so using social media will be the most efficient and low cost marketing way. YouTube video competition We also make a 3 months event. We use youtube as our tool, we challenge the customer to make a music video about our BonChon Chicken Wrap Set menu. At their movie must promote our BonChon Chicken Wrap Set menu. At the end of the month we will choose the best movie (we decide the winner from the quality) , and 3 most favourites movie (We decide the winner from the likes). We choose youtube’s video competition because it’s low cost and efficient. The participant will help us at promoting our BonChon Chicken Wrap Set Menu for getting the likes for their video.