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Gourmet Meats

Gourmet Meats. Business Plan for Balboa Burgers. Agribusiness Venture Management Ray Lei Biancia Rolle Kyle Templeton Dean Serdachny. Client Info. Currently producing lean hamburgers on a small scale (6 animals slaughtered)

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Gourmet Meats

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  1. Gourmet Meats Business Plan for Balboa Burgers Agribusiness Venture Management Ray Lei BianciaRolle Kyle Templeton Dean Serdachny

  2. Client Info • Currently producing lean hamburgers on a small scale (6 animals slaughtered) • Hamburgers are incorporated with special family recipes developed in the summer of 2004 • Sales are driven by word of mouth and family

  3. Industry Info • Beef Consumption In Canada: • After bovine spongiform encephalopathy (BSE) was discovered per capita consumption in Canada actually increased • Before (BSE) 13.5kg/annum per person

  4. Industry Info • After (BSE) 14.2kg/annum per person • A significant portion of the per capita increase was geared to organic and natural beef products • Few competitors in his market currently

  5. Operations Plan Incorporation of: Gourmet Meats

  6. Work Plan and Flow of Work Farms Gourmet Meats Processing Facility Seasoning and Filler Ingredients Freezer Storage Local Grocers Bar/Pubs

  7. Working Capital Planning and Management

  8. Working Capital Planning and Management • Cost of Goods Sold

  9. Working Capital Planning and Management • Total Cost of Goods Sold

  10. Cash Management Minimal requirement necessary Initial investment of $15,000 No large inventories No large capital costs Working Capital Planning and Management

  11. Flexible production More in winter, Less in summer 30 days in average Inventories replenished in 4 days Inventories

  12. Policy 15 days credit Reason Incurring customers Small company Accounts Receivable

  13. Accounts Payable • Larger purchasing options only • Processing fees • Trim cost from Natural Valley Farms

  14. Cash Conversion Cycle • Calculated to be 18 days • Variable with seasonal demand • Low turn around due to production capabilities

  15. Marketing Plan PUSH STRATEGY PULL STRATEGY

  16. Product Overview • The Product • Hamburgers combined with ingredients for flavour • Four different flavours: • Teriyaki • Spice • Honey Mustard • Original • Cajun Maple • Size - 5 oz • Natural - follows current industry regulation standards

  17. Market Objective • Focus on pub and grill market • Target 19-45 year old males • Promote a differentiated product • Push strategy • First step of market penetration • GOAL = Product awareness • Pull strategy for summer retail market • ie) BBQ season

  18. Market Analysis Market Size 36 733 000 lbs of beef consumed in Saskatchewan 14 693 200 lbs of ground beef consumed in Saskatchewan 3 367 330 lbs of hamburger eaten in Saskatchewan

  19. Market Analysis Market Size 3 367 330 lbs of hamburger eaten in Saskatchewan 14 693 000, 4 oz hamburger consumed in Saskatchewan 637 500 burgers/ year sold in non-franchised pubs and grills throughout Saskatchewan

  20. Market Analysis Market Needs Flavour Consistent taste Cooking characteristics: no shrinkage

  21. Customer Analysis Target Market Primarily male demographic Aged 19-45 Blue collar workers Interested in new experiences and new tastes

  22. Competitor Analysis Companies Supplying Pubs & Grills

  23. SWOT

  24. Key Planning Assumptions Beef consumption will not decline dramatically Consumers are looking for a consistent and flavourful product Steady and dependable supply of materials 4. Reliability of manufacturing and distribution channels

  25. Business Proposition

  26. Price Target wholesale price: $1.17/ burger final production/logistic costs Average wholesale cost: 4 oz $0.50-$0.70/ burger 5 oz $0.60-$0.70/ burger 6 oz $0.90-$1.15/ burger

  27. Place Non Franchised bar and grill establishments • Immediate access to their entire customer base • Increased demand for flavour • Ribs, wings • Reduced advertising costs • High traffic • Diverse Crowd

  28. Place Local Grocery Stores and Gourmet Shops • Sask Made Store Internet sales

  29. Promotion To Consumers • Table talkers and posters in establishment • Table talker website promotion • Sponsor beer and burger nights • Taste testing

  30. Financials

  31. Financial Performance

  32. Risk Analysis

  33. Financials Razor thin margins High risk Good profit potential IRR= 70.7% ERR= 48.9% No Dividends early on

  34. QUESTIONS? CAN YOUR BUNS HANDLE OUR BURGERS?

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