Student Market Report-2

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Contents ● ● ● ● ● ● ● ● ●

Cover Table of Contents Company Overview Operations Market and Marketing Strategy Financial Summary Advertisement Future plans for the company Reflection

1 2 3 4 5-6 8-9 10 11-12 12

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Company Overview “Nocha Nacho” is a store selling Mexican snack called “Nachos”, founded by 11th grade Economics students. The dish composed of tortilla chips topped with melted cheese and meat, and is also often eat with salsa sauce, a typical tomato-based sauce of Mexican cuisine that has a little bit of spice. Our purpose is to introduce this dish to the teacher and students during the MUIDS student market 2017 and provide the best quality and taste of our food to the customers. We offer pork to the customer instead of beef in meat selection due to the religious restrictions among the student who can not eat beef. Our store’s strategy is to make the Nachos affordable to everyone and that we also create our brand logo and poster as a source of advertising our store. We also use the strategy number 9 as we set price at the 29 baht in order the make the price look lower than 30 baht. Our store is located in between the center of the market, which is the good location that the customers will gather around. The store vision is to provide a unique experience through the taste of Nachos that the customers can enjoy surrounded by varieties store.

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Operations Our store has one menu with additional choice of toppings that customers can add to the Nacho. We sell the cheese Nacho as the main menu and we also provide additional toppings including extra cheese and pork. Customers have to order the cheese nacho then they can add either more cheese or pork based on their preferences. We also offer tomato salsa sauce to give more flavors to the nachos. We set an affordable price for our nachos using the technique of odd prices using number 9. Our Nachos has low costs making it gives high profits to our store since it is easy to make and only need simple ingredients. Pricing ● Original Nachos: 29 baht ● Nachos with Extra pork and cheese: 39 baht

Management Decided the product ⇒ List down all the ingredients/raw materials needed ⇒ appointed the money collector ⇒ buy the ingredients ⇒ prepare the product ⇒ sell it to customers

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Market and Marketing Strategy Description of Market Our student markets this year is teeming with variety stores such as Italian soda, meatballs, brownies, milk tea, fish balls, bread and much more. The customers include MUIDS students and teachers. The market will start after the Orchestra band finished the show and that everyone could come downstairs to taste and buy different type of food. Mostly, each store provide the unique foods, as well as selling with their own unique strategies in order to achieve their goal. What we can see about their strategy is the differentiation in product, decoration price, advertisement and service. Our product, Nachos, is a grab-to-go product which does not require lots of process on preparing food, it takes only a few minutes so that our target is the teenager who want something fast and delicious.

Target Market Nocha Nacho focus on our friends and others MUIDS students in 10th, 11th, and 12th graders who want to try on new taste of food and something fast with quick bite. Furthermore, among the other stores, we are the only one who serve Mexican food, so that we fill the gap of new taste and unique of food because some of the people didn’t even know Nachos, but they have it for the first time at the student market.

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Competitive analysis From the survey we took on the date of student market, our record show that the product that were sell in the market including shaved ice, bubble tea, coconut ice cream, Korean spicy noodle, BBQ, brownies, Italian Soda, meatball, Christmas Snack, French fries, Rotee, and some other drink stores. The strength of the other store is that some of them decorate the store in a way that represent their product, for example, the christmas store, they dress in christmas theme and this can grab the customer attention to come to buy the product. The unique of the food is also some of the store’s strength, as if it is the only store that provide that type of food, customers didn’t have to decide between two stores. Many store also advertise to the School Line group before the market start or tell the teacher to come to try the product in advance, this way after the Orchestra band done, the customers can come forward to buy the products as if they already know what they want to buy from the advertisement they have seen before. Also some product can be provided very quick such as ice cream, snack, drink and this way, the customers can grab foods or drinks very fast. However, some weakness is that some stores sell the drink that similar to one another, and this might affect their customers whether to buy which store. Also some products need time to cook, such as Korean noodle, toasted bread, Rotee, and this can delay the selling down or the customer need to wait too long. The market strategies that was shown during is that they have different kind of promotion that grab the customers attention, for example, Manee-mee-sen provide the lucky draw as if the customer is lucky, they will get free cheese for their korean noodle. Also if you buy one piece it’s this price, but once you buy more, the price is lower. Overall, many store use the strategies that very effective including promotion, decoration, differentiations, and services.

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SWOT Analysis ● Strengths -

Price: cheap when compared to the average store

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Uniqueness: we are the only store that offer mexican food

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Efficiency: easy to prepare (doesn’t require lots of process to cook)

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Advertisement: attractive poster and strong ads on social network

● Weaknesses -

Didn’t provide enough products to sell, as we underestimated the amount of customers

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Communication between cashier and chef still too slow and misunderstand sometimes

● Opportunities -

Some students and teachers who never try or know nachos before

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People prefer mexican snack

● Threats -

Some people may not satisfy with Mexican taste

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Financial Summary Income Statement Price (THB)

Amount

Student Market (THB)

Revenue Sales of Regular Nacho

29

15

435

Sales of Nachos with extra cheese and pork

39

28

1,092 1,527

Total Revenue

1,529

Expenses Tortilla Chips

70

10

700

1 kg of pork

42

3

126

Cheese

139

2

278

Tomato (TM sauce)/pack

25

2

Lime (TM sauce)/pack

39

2

Onion (TM sauce)/pack

25

1

Cilantro (TM sauce)/pack

17

1

50

25 17

Salt & pepper (TM sauce)

Free

-

Paper plate/pack

100

2

Total Expenses

98

0 200 1494

9

35

Net Income * TM sauce = tomato sauce

Financial Reconciliation Starting Capital (​฿) (250x8)

2,000

Expenses (​฿)

1,494 Remaining

506

Revenue (​฿)

1,529

Ending Capital (​฿)

2,035

Liquidation

2035 8

= 254.375 Baht

Return on Equity Net Income ​(​฿)

35

Starting Capital ​(฿​ )

2000

Initial Investment

250 ฿​ / person

Return on Equity

35 250

x100​ = ​14%

Overall performance Notwithstanding, Revenue is quite low and it is not meet our expectation for the reason that we did not have enough materials to satisfy the demand of customers and be able to get more profit. The expenses is probably too high because we purchased pricey tortilla chip and cheese which common price is quite high compared to others brand e.g. lays etc. Still, we still got 35 baht profit and we are second team that sold out. We also won the 2nd place for student choice, which represent that most of the customers are satisfied with our food.

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Advertisement Nocha Nacho advertise our product via social media as it’s one of the effective channel to communicate with the customer swiftly and easily because people will receive the information immediately after they see the poster. For instance, Line, Instagram, Snapchat, as well as Facebook, are very trendy among teenagers. Once someone post the story on Snapchat or instagram, the others will receive the announcement really fast as many of them is on the applications continuously. To conclude, advertisement through social media is a good way to communicate with the customers during this time because it’s fast and can share very easily.

Future Plans for the Company

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There are lots of customers who interested in our product because of the

unique product and their taste. From the feedback from the customers, there are positive comments and negative comments about the company. Start with the positive comments, we impressed them with the style of food: The mexican food, as well as the taste of our product. The negative comments are the cashier wasted too much of their times, we weren’t served an equal amount of food for everyone, and we didn’t prepare enough product. For the future plans for the company, we firstly concern about the price of the product which involved the lesser income from what we expected, we use a ‘ended with number 9 price’ strategy to grab people attentions like we previously did and it worked. We set the started price of the product as 29 Baht and if the customer want to add more cheese and pork for additional, it costs 10 Baht extra but it appeared that we set the price too low, so the first required improvement is to

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increase the cost of the product. Secondly, we underestimated our product which lead to an unexpected huge number of customers and a small number of our product. We need to prepare more amount of the product which further, we will match the amount of thing in each serve with the price as well before publishing the official price, because in the previous sell, we set the price too low and we give them more amount of product than we gain from them. Thirdly, we will manage our cashier systems more dedicatedly, we will set a record person separated from the money collected person so we didn’t waste so much of theirs time. We are successful in the advertisement, we use social network and a poster to attract customer which we will do it continually.

Reflection The main goal for this project is to enhance lots of skills that are important to life such as communication, presenting, problem solving etc. At the beginning, we have communicate and express our idea on the good that we want to sell in student market. It took more than 1 week to choose what we going to sell until it comes to the conclusion to sell nachos. The reason why we chose it because it is popular among teenagers and it is different from others group; which provide the uniqueness to our group. During market fair, we had a lot of queue and we realize that we are out of ingredients. On the other hand, before the fair, we thought that our ingredient will be enough and remain after the fair, however, nachos are sold out very fast than our expectation. One of the main reasons that nachos are sold quickly is the advertising, we used social media to advertise our product and it went very good and our product is not complicate to prepare so that it didn’t take much time. This project helps us achieve a lot of ability and experience that we can

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not get in the classroom, also teach us the lesson and error that we could improve in the future. Finally, this project is reveal to MUIDS eslo which is strategic learners and innovative thinkers by reason of we learn to analyze, evaluate and solve many problems without wasting time.