Gurjot Dhaliwal, Kevin Foley, Aaron GladdenSindhaja Giridharan , Ted Kral, & Siddharth KumarGR523 Marketing Management

Table of Contents

List of TablesList of Graphs Executive Summary Objectives Goals Key Factors for Success Company Background Mission Product/Service Customers Competitive Analysis-SWOT Analysis Market Analysis Market Segmentation Distribution Strategy Competition Marketing Strategy Marketing Objectives Positioning Product/Service Strategy Pricing Strategy Promotion Timeline for Implementation-GANTT Distribution Strategy Distribution and Pricing Operating Objectives Proposed Operations Recommendations Quality Management Timeline for Implementation Staffing Requirements

Executive Summary

With todays world, people are always on the go with their busy lifestyles and hectic work schedules, it has now become, more than ever, crucial to focus on personal health. Out of all the elements of a healthy lifestyle, food in the most vital part of the daily routine, a healthy balanced meal can help you reach your personal fitness goals faster. Almost a Free Lunch is a food delivery service that is committed to provide its customer with meal options that are healthy, organic and modified to meet their personal needs.People in the United States are becoming more focused on their diet, with 64% of consumers trying to eat more healthy foods. (Mintel, 2014b). Eating right takes time and people are reporting to have less available time to cook on a regular basis (Mintel, 2014d). While people are spending more on eating out (Mintel, 2015a), they also want to eat healthy this is where Almost a Free Lunch, herein after referred as AFL, come in. AFL is a startup food service company that is making healthy eating easy by delivering nutritious, prepared meals directly to the customers doorsteps. The company targets 18-27 year old males and females, single and married individuals who are looking to eat healthy outside of their homes.While food delivery is not a fresh idea, there are many restaurants, online ordering services and third party vendors that deliver food, but all of them deliver only when you place an order for which the customer has to wait. AFL has found a new innovative way to deliver food to the customer which includes them not having to pay or wait for the food every time. AFL provides the customers with the freedom to specify a delivery time as per their convenience AFL is eliminating this wait time by offering meal plans that will be delivered to the customers doorsteps at a specific time provided by the customer before the start of the meal plan which would ensure on time delivery. The customer also pays for the meal plan before the start of the meal plan, much like a pre-paid mobile phone, where you pay first for the services that you can use in the future. All the food provided by AFL is organic and customers have an options to choose the meals they want and a variety of meal plans to choose from. Meal plans start from one meal per day plans which cost $11.99/meal up to two meals per day which cost $ 9.99/meal.Eating healthy was never so effortless, all a customer has to do is register on the website, select their meal options and pay for the meal plan. Although people already use delivery services, our business will provide them with an option that suits their tiring schedules. Having to balance a busy lifestyles and a healthy physique can be hectic, so our customers will be delighted with the convenience of services we plan to provide.

Company BackgroundMission Statement: Accommodate the different lifestyles of consumers while providing healthy[footnoteRef:0] meal plans customized for individual health/diet goals. Strive to reduce the stress involved with planning daily meals. [0: "Healthy," which is defined by FDA regulation, means the product must meet certain criteria that limit the amounts of fat, saturated fat, cholesterol, and sodium, and require specific minimum amounts of vitamins, minerals, or other beneficial nutrients (Food Label Helps Consumers Make Healthier Choices, 2008; U.S. Food and Drug Administration, 2013)]

Origin of the Company Name / Background: Almost A Free Lunch is a witty name derived from Milton Friedmans famous book entitled, There is no such thing as a free lunch. This term illustrates the point that nothing is free. Even goods and services that are given to a customer for free have to be paid for by someone. In America, the real free lunch is the amount of food wasted and uneaten annually. For example in 2010 the U.S. wasted 31 percent of total food produced or 133 billion pounds (Buzby, Wells & Hyman, 2014). Although this food is not eaten, it is still paid for by consumers through the higher price margins on food products. The founders of Almost A Free Lunch saw this as an opportunity to fight hunger, and generate profits. The way Almost A Free Lunch is able to do this is through their unique subscription style meal plan. Customers sign up on a monthly basis, thus getting the feeling as though they do not have to pay each time they come, and are getting a free lunch. This is similar to a college student going to the dining hall at their own will, forgetting that they have already paid for their entry swipes. Almost A Free Lunch benefits from this process because they are able to forecast how many customers they will get on a given day. This is what separates them from competitors. Traditional restaurants and meal plans typically ayer on the safe side and overestimate how many customers they will have, creating food waste.Almost A Free Lunch is able to tailor the amount of food prepared based on how many subscriptions they have during that given day or month. This ability to eliminate food waste combined with the customers perception that they are eating for free has allowed this delivery service to get off the ground.

Market Analysis

In the post-recession economy, consumers are feeling more comfortable spending money on food outside of the home. Multiple market indicators demonstrate improvement within the dining out market (Mintel, 2014a). About one in eight (12%) consumers who have ordered food from a foodservice establishment in the past month and plan to dine out more often in 2014. Also, 20% of those aged 18-37 plan to order takeout more often and 18% plan to order delivery more often in 2014 (Mintel, 2014a). More than three quarters of consumers who purchase frozen or refrigerated meals and/or side dishes (76%) do so because these items are useful to have on hand when they dont want to cook (Mintel, 2014a). In addition to exercise, 64% of consumers are trying to eat more healthy foods (Mintel, 2014b). One of the possible reasons for consumers indecisiveness on healthy foods in foodservice (those businesses, institutions, and companies responsible for any meal prepared outside the home) is the fact that foodservice still has the stigma of being unhealthy, regardless of what is ordered (Mintel, 2014b). Healthy eating is not a high priority among consumers with less than $50K in income, since they consider restaurant visits a treat, while $100K+ consumers are more willing to try healthy foods (Mintel, 2014b). According to USDA data, yearly totals for away-from-home food sales grew steadily from 2010-12, reaching $629.7 billion in 2012. Meanwhile, at-home sales hit $672.6 billion in 2012. And, the year-to-date cumulative total in October 2014 was $629.1 billion (Mintel, 2015a). Changes in consumption patterns in food (at home) show that at least some consumers are trying to eat more healthy (Mintel, 2014c). When considering what fast casual restaurant to visit, 41% of consumers say fresh ingredients are important to them. Some 22% of US consumers would like help in understanding healthier food options. Gluten-free was the top growing nutritional ingredient claim from 2011 to 2013 (Fajardo, 2014a). Generation X and younger consumers place a larger emphasis on being too busy to cook at home compared to Baby Boomers (Mintel, 2014d). As much as 40% of the food produced in the U.S. goes uneaten, equaling $165 billion worth of food each year (Gerlock & Husted, 2014).

Consumer Adoption Process

Innovators The initial market adoption process is to specify Almost A Free Lunch towards the most influential customers Innovators. They are the first to buy a new product and highly respected in their community, which would create a word of mouth approach to marketing. 56% of people who exercise 6-7 times a week prefer reduced/low/no fat food (Mintel, 2012a). These customers are usually the gym goers who are health conscious and would potentially see noticeable results by either gaining muscle or losing fat.Early Adopters Based on the experience of the Innovators, the Early Adopters are the next in line to try the product. 30% of young singles between the age of 18-24 prefer pre-cooked meals (Mintel, 2012b). This target market would be college graduates that are fresh into the workforce. Owing to lack of time or cooking skills, they tend to prefer someone cook for them (takeout or delivery). Thus, they would be inclined to subscribe to a meal plan from Almost A Free Lunch, and to tell their friends / roommates about the service.Early Majority The next aspect of the initial marketing campaign is to target a continual approach where people adopt the product for convenience. 11% of families tend to dine out because they are too busy to cook at home (Mintel, 2014e) These families form the Early Majority. They are those consumers that avoid risks and make purchases carefully.Late Majority The Late Majority segment consists of those consumers that are skeptical about all purchases that they make. 46% of consumers between the age 25-54 prefer quick and easy, affordable meals that they can pick up prior to work (Mintel, 2015b).Laggards/Gatekeepers Laggards or Gatekeepers are those consumers who are reluctant to make changes and are comfortable with traditional products. Consumers aged above 55, rely heavily on the price while making decisions to eat out (Mintel, 2014f). Since Almost A Free Lunch caters to a niche segment of the consumers, those aged above 55 will form the Laggards or Gatekeepers in the consumer adoption process.

Market Segmentation

29% of restaurant goers choose to get their food delivered and 80% of restaurant goers choose either to go or carry-out from a limited service restaurant (Torres, 2014b). A limited service restaurant is an establishment whose patrons generally order or select items and pay before eating where food and drink may be consumed on premises, taken out, or delivered to customers locations (CHD Expert, 2012).Age On average, 30% of consumers above the age of 18 do not prefer takeout/delivery because of low quality of food. On average, 53% of consumers above the age of 18 believe that dining out is expensive and hence avoid it (Torres, 2014b). In terms of age, younger Millennials (those aged 18-27) are the most likely to have eaten at most of the different restaurant types (Torres, 2014a). Target age group is 18-27.Gender With to go or carry-out, results are similar between genders. Considering the difference in results between to go or carry-out and dine in with men and women, it may be that women do not feel as comfortable dining at a fast-food or fast-casual restaurant and prefer ordering food to go or carry-out (Torres, 2014b). Target market is male and female.Marital Status Married couple spend 3.9%, single men spend 5.2% and single women spend 4.4% of their income on Food consumed at restaurants and other venues outside of home (Mintel, 2012c). Target market is single and married couples.Income 51% of patrons try new restaurants that offer coupons/promotions that help save them money. When restaurant expenditure is less than $50/month, 54% restaurant goers prefer a Limited Service Restaurant. When the expenditure ranges between $51-99, 31% prefer a limited service restaurant (Torres, 2014b). Target market is an individual/family that spends at least up to $100/month on eating out.

Payment method Only 19% of the market used technology such as mobile apps to order and pay for food. The figure is expected to increase to 25%, in 2015 (Fajardo, 2014b). Target market are those individuals who prefer the method of paying in advance or swiping a card.Usage Situation Amongst top drivers for families to dine out, 11% of the base (aged 18+ who are parents with kids aged 17 and under) chooses to do so as they are too busy to cook (Mintel, 2014g). Target market includes families and individuals who prefer not to cook due to busy schedules.Benefits Sought 34% limited service restaurant users make use of the limited service for ordering healthy food. Thus, target market will be families and individuals who are looking at eating healthy food outside of home (Fajardo, 2014b).

Marketing Strategy

Objectives: There are multiple avenues for building channel relationships. Based on market segmentation research produced from Mintel, the primary channels for this product include workplaces with young professionals, gyms/health clubs, and college campuses. The target market is 18-27 year old males and females, single and married who are looking to eat healthy outside of the home (Torres, 2014a; Torres, 2014b).

Budget: Initial Marketing Budget Total= $10,000.

Advertising Message: There is a healthy* alternative to eating out or cooking for yourself. The main goal is to promote the convenience of a delivery or pick up option.

Marketing Strategy:

0-3 months Distribution of car cards (a small cardboard placard for advertising) with information about the product to target the primary channels established (gyms/ college campuses/ and workplace parking garages). The information on these car cards will include the company logo, website, a slogan, pricing, and a potential coupon. Establish a social media campaign which could reach as much as 63% of the target market uses social media regularly by creating company accounts on Facebook, Twitter, Pinterest and Instagram (Mintel, 2010). Posting daily updates about offers, new products and promotional codes will keep the followers engaged.3-6 months Distribute coupons for free samples or a reduced week trial throughout the primary distribution channels established (gyms/ campuses/workplace). By renting a stall at Farmers market the company will establish a presence through free samples and presenting information about the product to the consumers.6-9 months Sponsor a 5k (or marathon) walk/run. A prize or incentive could be given to the top 10% of the runners. Have a knowledgeable employee at different locations (workplaces/gyms/college campuses) to give information about the process/details of signing up for Almost a Free Lunch. While giving out free samples to customers, those who are satisfied/interested can provide their contact information to follow up with more information and subscription options. 9-12 months Create a radio advertisement for the target market to reach 57% of people driving that day (Mintel, 2011). An example of a radio advertisement for the company would be: Do you have way too much on your plate? Working late? Lifting weight? No time to plan for food except for that hot Friday night date. Then let us help with your nutritional fate. The best part is you only have to pay at a monthly rate! So sign up for Almost a Free lunch and well conquer hunger like Alexander the Great!12+ months Construct a TV commercial to reach 39% of the target market, who spend all or nearly all of their TV/video watching on a television screen as opposed to computers or tablets (Mintel, 2011). A blueprint for the commercial idea would be: Do you have so much on your plate that theres not enough room for food? (guy walks in carrying a silver platter with things continuing to jump off the plate such as soccer balls, pets, bosses, exc) Let us clear some space for you. (a man comes on screen in ninja suit and throws knives at things on plate) Here at Almost A Free lunch we understand time is money. So if your grocery bills are tough to swallow, or you find yourself eating with both hands on the clock; then put down the knife and pick up the phone! Here at Almost a Free Lunch, just one payment a month gets you unlimited access to all the day fresh food your stomach can handle. On top of saving countless hours on shopping, cooking and cleaning every night, we also have meal plans tailored to your needs. Give us a call at 1-LUN-CH4-FREE (1-586-244-3733) or visit our website.

Distribution and Pricing

Mission Statement: Accommodate the different lifestyles of consumers while providing healthy meal plans customized for individual health/diet goals. Strive to reduce the stress involved with planning daily meals.Mantra: Healthier life, one meal at a time.Tagline: Eating made simple.

PricingCompetitors prices Golden Corral- $9-$12 per dine-in meal (Golden Corral Prices, 2015) Peapod- $7-$10 delivery fee (product pricing same as in Stop N Shop grocery store (Peapod Prices,2015) Jays Pizza and Ice Cream- Free Delivery with $15 minimum, meals range from $8-$18 (Jays Pizza and Ice cream,2015)Cost to produce (Organic Vegetable Prices,2015) Organic carrots $1 per pound Organic spinach $1.25 per bunch Organic Cauliflower $1.67 per stem Organic chicken breast $7.04 per pound Organic potatoes $0.60 per poundAverage ingredient cost per meal Organic carrots pound $0.25 Organic spinach bunch $0.31 Organic Cauliflower stem $0.42 Organic Chicken Breast pound $3.52 Organic Potatoes pound $0.15Total ingredient cost per meal $4.65Average costs for employees Cook- $10.23 per hour (six meals per hour), $1.70 per meal (Time & Media, 2015). Delivery Driver- $12.58 per hour (five meals per hour), $2.50 per meal (Driver Wage, 2015).

Packaging Food containers- $35.10 per set of 120 24 oz. round containers, $0.28 per meal (Food Containers Cost, 2015).Utilities/Rent (Pace, 2015) First-month rent $10,000 to $12,000 First-month utilities $2,500(Internet, Phone service, electricity, water)Total Cost (estimated 2,016 meals per month) $0.15 per mealTotal Overall Cost $9.28 per mealAccording to the pricing of competitors (mentioned above) and the overall cost to produce each meal:Selling Price $13.99 per mealMonthly Plans 30 meals per month $359.70 per month $11.99 per meal 40 meals per month $439.06 per month $10.99 per meal 50 meals per month $524.50 per month $10.49 per meal 60 meals per month $599.40 per month $9.99 per meal Plans for location: Outside major metropolitan areas including Boston, Springfield, and Worcester. Hours of Operation: 10 AM- 10 PM, seven days a week, 365 days a year (excluding national holidays).

SWOT Analysis

Gantt Chart

Works Cited

Buzby, J., Wells, H., Hyman, J. (2014, February 1). The Estimated Amount, Value, and Calories of Postharvest Food Losses at the Retail and Consumer Levels in the United States. Retrieved April 29, 2015, from http://www.endhunger.org/PDFs/2014/USDA-FoodLoss-2014.pdf

CHD Expert. (2012, August). Full Service Restaurants Vs. Limited Service Restaurants: What's the difference? Retrieved from https://chdexpert.wordpress.com/2012/08/03/full-service-restaurants-vs-limited-service-restaurants-whats-the-difference/

Driver wage (2015, April) Delivery Driver Salary (United States). Retrieved from http://www.payscale.com/research/US/Job=Delivery_Driver/Hourly_Rate

Fajardo, K. (2014a, September). Healthy fare is everywhere - US. Retrieved February 25, 2015 from Mintel Reports database.

Fajardo, K. (2014b, February). LSR: Ethnic Concepts. Retrieved from Mintel Reports database.

Food containers cost (2015, April) Takeout Food Containers. Retrieved from http://www.foodpackagingwarehouse.com/CO-24C.html

Food Label Helps Consumers Make Healthier Choices. (2008, March 27). Retrieved April 7, 2015, from http://www.fda.gov/ForConsumers/ConsumerUpdates/ucm094536.htm

Forest Time, Demand Media (2015, April) The Standard Hourly Wage for Cooks. Retrieved from http://work.chron.com/standard-hourly-wage-cooks-2597.html

Gerlock, G., & Husted, K. (2014, September 22). Food waste in America: A multi-billion-dollar loss. Retrieved February 26, 2015, from http://www.kansascity.com/news/business/article2210462.html

Golden Corral Prices. (2015, April) Retrieved from online http://www.restaurantmenuprices.net/golden-corral-prices/

Jay's Pizza and Ice Cream. (2015, April) Retrieved from http://www.jayspizzamalden.com/

Mintel (2010, December). Emerging Restaurant Concepts Retrieved March 14, 2015 from Mintel Reports database.

Mintel (2011, November). Attitudes to Traditional Advertising Retrieved March 14, 2015 from Mintel Reports database.

Mintel. (2012a). Attitudes Toward Healthy Food - US - June 2012. Retrieved February 25, 2015 from Mintel Reports database.

Mintel. (2012b). Single Lifestyles - US - February 2012. Retrieved February 25, 2015 from Mintel Reports database.

Mintel. (2012c, February). Single Lifestyles. Retrieved from Mintel Reports database.

Mintel. (2014a). Prepared Meals and Side Dishes--U.S.-- May 2014. Retrieved February 25, 2015 from Mintel Reports database.

Mintel. (2014b). Healthy Dining Trends--U.S.-- July 2014. Retrieved February 25, 2015 from Mintel Reports database.

Mintel. (2014c). American Lifestyles 2014: Looking Forward--U.S.-- April 2014. Retrieved February 25, 2015 from Mintel Reports database.

Mintel. (2014d). Families Dining Out--U.S.-- September 2014. Retrieved February 25, 2015 from Mintel Reports database.

Mintel. (2014e). Families Dining Out--U.S.-- September 2014. Retrieved February 25, 2015 from Mintel Reports database.

Mintel. (2014f). Dining Out: The Restaurant Decision-Making Process - US - July 2014. Retrieved February 25, 2015 from Mintel Reports database.

Mintel. (2014g, September). Families Dining Out. Retrieved from Mintel Reports database.

Mintel. (2015a). Dining Out: A 2015 Look Ahead--U.S.-- January 2015. Retrieved February 25, 2015 from Mintel Reports database.

Mintel. (2015b). Breakfast Restaurant Trends - US - January 2015. Retrieved February 25, 2015 from Mintel Reports database.

Organic vegetables Prices (2015, April) wholesale fruit prices, organic and conventional, monthly and annual. Retrieved from http://www.ers.usda.gov/data-products/organic-prices.aspx

Pace, Gina (2015, April) The cost of starting up a Restaurant. Retrieved from http://www.inc.com/articles/201111/business-start-up-costs-restaurant.html

Peapod. (2015, April) Retrieved from view service fees from http://www.peapod.com/

Peter, J. & Donnelly, J. (2013). A Preface to Marketing Management. New York, NY: McGraw-Hill Education.

Peter, J., & Donnelly, J. (2014). A preface to marketing management (Fourteenth ed., pp. 103-136). New York, NY: McGraw-Hill Education.

Torres, G. (2014a, April). American Lifestyles 2014: Looking Forward. Retrieved from Mintel Reports database.

Torres, G. (2014b, July). Dining Out: The Restaurant Decision-Making Process. Retrieved from Mintel Reports database.

U.S. Food and Drug Administration. (2013, January 8). Retrieved April 7, 2015, from http://www.fda.gov/Food/GuidanceRegulation/GuidanceDocumentsRegulatoryInformation/LabelingNutrition/ucm064916.htm

Things for powerpoint: complexity of project, equal talking, pitch slides spanning 25 minutes for the presentation, dress in business attire, Things to cover: Explain business plan: what company is, mission, goals, slide or two for each paper. Second part: Sales company pitch, title slide with contact information what company is, next describe problem you are trying to alleviate and how you can fix, what your solution is, sales model giving what you sell and your value proposition (drop names of companies to strategically align with, or potential future customers), technology slide with your secret and why you are better than competition (whats your magic), demo if possible of your product or service, what competitors products put u most at risk and why you will beat them out (but be respectful to their product), key players of management team: whos your board of directors, CEO rolls, future or current investors, Last slide, next step, ask for money, give out samples.