Small Business Management – BU-3000
March 3, 2013
Frank’s Enterprises for Express Foods, Inc. is a small food service company that was open in 1997 in California. Frank’s specialized in fast food for company owned portable carts in high density urban office locations. The board of director approved for them to borrow $1 million dollars from three different banks in order to improve and expand their marketing and the distribution of their six cart business in Los Angeles. They estimated their ROA to be 243 percent in three years after they pay back their loans.
Frank’s Redhots was estimated to have 2000 in sales in order to reach $3 million with a net of $212,500 (7.1%). Their sales were expected to reach $12 million with net earnings of $1,280,100 (10.7) by the end of 2002. They have 6 contracts with the option of obtaining 24 more with locations in downtown Los Angeles for year round food service. These averages generated an average of $300,000 in annual sales. Frank sales have grown to $1.8 in three years with net earnings of $128,900 (7.2) with just a single cart.
Business Positioning Strategy Product positioning strategies are numerous, and the selection of one over another is crucial to how your company will market its products or services. Selecting the wrong strategy can cost lost time and a scarce marketing budget. The ramifications of a wrong choice will also probably adversely affect your business's bottom line. Taking a logical approach in selecting a positioning strategy can ensure a good choice (1). Frank’s Redhots sells quality hot dogs and ready to eat luncheon to business in high-traffic locations. Frank’s is considered as being the best place to have quick lunch because they have the cleanest carts, hygienic servers, purest and freshest products, and best values. Their prices are set to a premium which reflects their vending machine and they’re also known for it fun personality which promotes their business, and offer specials every week. Each of their carts have a sign saying “Frank’s Redhots-Satisfy yourself for $2.00! You deserve it. Their message is targeted to all of their potential customers who wants an inexpensive hot dog. The message they send in regards to their hot dogs being high in fat is intended for the one’s that indulge in eating a lot of hot dogs. Their hot dogs aren’t high in fat, but high in quality and all natural with no harmful preservatives. They make it a point to let customers know what they’re indulging in and the rest of their menu of healthy and reasonable priced food.
Marketing Strategy What is the difference between a marketing strategy and a marketing plan? It's important to understand that there is a difference and that difference can impact how you market your business and whether or not it is successful (2). Frank’s was created to attain the leadership in mobile cart serving units in the large businesses areas. They also target upscale, office workers looking for the fast, convenient, portable breakfast and lunch meals. Each cart costs about $20,000.00 that’s able to hold enough food to serve about 200 to 250 meals a day. Frank’s differentiates his business from other business by stating that his products provides high nutrients, 100% all natural, no artificial ingredients, colors, additives, or preservatives. They have a big concern for the environment by having biodegradable, recyclable containers/wrappers and tie ins, and their service to be no question asked money back guranteed, and professional trained personnel. Their product is priced with a slight premium over competitive offerings whether all natural or not. Their promotional activity included free samples and daily specials to help ensure that their customers know that they’re getting the high quality product with prompt and courteous service in…