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MARKETING PLAN !Submitted by:

Annie O’Brien Geoffrey Gingerich

Jagmeet Chahal Olga Jovnyruk

Sachi Gurudanti Sara Anderson

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!TABLE OF CONTENTS

Serial No.

Topic Page No.

1. Overview of Company

3

2. Situation Analysis 4

3. Market Overview 7

4. Product/Service Offerings

14

5. Marketing Strategies 17

!!6. Marketing Mix 20

7. Market Share and Sales

Forecast

24

8. Contingency Plan 26

9. References 30

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OVERVIEW OF COMPANY !FÜD is a start up meal delivery service proposed to launch in January 2014. FÜD provides Torontonians with fresh, healthy and home like meals, delivered to their doorstep. With a large number of office workers, people living away from home and the growing health consciousness among the people of Toronto, we realized the need for a regular healthy food service in the city. Our meal plans cater to office workers, students, and those in between without ready access to the comfort, familiarity and nutrition of home-cooked food. Along with options for vegetarian or non-vegetarian, our customers can choose their meal plan based on their appetite and budget. Each meal offering is customized to the individual customer’s dietary and medical needs. Additionally, keeping in mind Canada’s cultural diversity, our menu options include a range of flavours catering to the diverse ethnic milieu, inviting all those with a healthy appetite to enjoy our home-cooked meals. !The founders of the company are 6 Humber College, Marketing Management students, namely: !

• CEO - Sachi Gurudanti • CMO - Geoffrey Gingerich and Jagmeet Chahal • COO - Annie O’Brien and Sara Anderson • CFO - Olga Jovnyruk

VISION STATEMENT!FÜD has been developed with a clear vision to ensure that corporate workers and students have the option to eat healthy, while not sacrificing their time during the day. Doing so by providing home-cooked, healthy meals to their offices, home and educational institutions.

MISSION STATEMENT!To be the leading provider of a hand-delivered midday meal for corporate workers and students alike; a meal that is both home-cooked and healthy, all the while being affordable.

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!!SITUATION ANALYSIS

!PORTER’S 5 FORCES !1. BARGAINING POWER OF CUSTOMERS: LOW

Our meals are of high quality, they’re healthy, tasty and reasonably priced. Customers can pick their meal plan based on their budget and willingness to spend. Therefore, there is a low customer bargaining power.

2. BARGAINING POWER OF SUPPLIERS: HIGH

Our suppliers provide us with raw materials such as meat, vegetables, fruits and other condiments. There are high chances of suppliers increasing their prices but with large number of supplier options available in the market, it reduces the threat.

3. THREAT OF SUBSTITUTES: MEDIUM

There are a number of substitutes in the market such as the other tiffin services as well as restaurants that serve healthy food and those that deliver.

4. RIVALRY IN THE INDUSTRY: MEDIUM

FÜD’s rivals consist of restaurants serving healthy food, restaurants that deliver, cafeterias, as well as all other existing tiffin services in Toronto. However, our meals, packaging, timely delivery and reasonable prices give us an upper hand in the market.

5. THREAT OF NEW ENTRANTS: HIGH

As this is relatively a new concept in Toronto, once we are established, it might attract a lot of new entrants into the market.

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!!SWOT ANALYSIS !

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STRENGTHS !• Healthy, low calorie yet good to

taste food; • Food is prepared in a hygienic

environment; • High quality food; • Well trained chefs who can

prepare all cuisines; • Reasonably priced, well-planned

and efficient supply chain and logistics.

WEAKNESSES !• Since we’re a start up, we’re not

established yet; • Lack of awareness about the

concept and FÜD.

OPPORTUNITIES !• Untapped market with very few

existing tiffin services; • Growing health and calorie

consciousness among people; • Large number students in

Toronto; • Large number of people living

away from home; • Increasingly hectic lifestyles

of people. !

THREATS !• Existing, established tiffin

services in Toronto such as Tiffinday;

• Restaurants serving healthy food and providing delivery;

• All restaurants providing delivery.

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!PEST ANALYSIS

1. POLITICAL

There are a number of government policies and regulations that need to be followed while establishing any food related service in Toronto such as the food and drugs act, human resource regulations, food safety policies, environmental public health, etc.

2. ECONOMIC

Canada’s Gross Domestic Profits (GDP) is growing at the rate of 2.8% as of 2014 (Canada's GDP growing at 2.8% pace, 2014). The gross margin for the Food Services and Drinking Places subsector was 55.3% in 2011 (Food Services and Drinking Places (NAICS 722): Financial Performance Data). 65.2% of the food services in Canada have a profitable business (Food Services and Drinking Places (NAICS 722): Financial Performance Data). These statistics show how Canada’s economy is growing rapidly and provides positive economic conditions for FuD. !3. SOCIAL

Canada is a culturally diverse country with people of different religions and nationalities. 3.2% of the population are Muslims, 1.5% Hindus, 1.4% Sikhs and 1% Jewish. FuD takes these diversities into consideration while planning the meals by providing food of all cuisines, keeping religious constraints in mind.

4. TECHNOLOGY

!Canada is highly developed in the technology sector. Everyone is now dependent on technology such as the Internet, Ipads, mobile phones, etc. Keeping this in mind, FÜD has developed its own website that allows online payment and meal selection, making the lives of Torontonians easy. FÜD also has its own app that allows you to track your meals and view your schedule.

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MARKET OVERVIEW The Greater Toronto Area’s food preparation & delivery market is at its early stage. Entering into the Canadian market, FÜD would face direct competition from companies like Tiffinday and Essential Meal Delivery. These companies offer healthy diet foods at a moderate price but channel their market strategy towards people wanting to lose weight. Area restaurants are our indirect competitors. Such restaurants include inexpensive diners, casual and family oriented restaurants, as well as takeout and fast food. Our competition does not include upscale, adult-oriented restaurants since such restaurants are only limited to special occasions. !The FÜD market is primarily in Downtown Toronto and the surrounding Greater Toronto Area. To set themselves apart, FÜD offers reasonably priced meals with an attractive eco-friendly packaging. We will be primarily focusing on young professionals and students and our secondary target market will include those people who don’t have time or access to healthy meals. Initially, the major quota of our customers will be busy, working class professionals and students between the ages of 18-34. It will be of great advantage in future to offer our healthy food services to the largest growing population of senior citizens (Ontario Population Projections update 2012 – 2036). !Our indirect competitors usually compete on perceived convenience, atmosphere and the most important - price. They are successful in convincing their customers that eating out at a restaurant is an affordable “treat” that is pleasant and easier than preparing meals at home. The time it takes for all customers to get ready to go to the restaurant, order a meal, eat and get back is barely the satisfaction it claims. With the introduction of FÜD to Downtown Toronto & GTA region, our goal is to revolutionize the way people look at cooking convenience. The price tag attached to our Mini & Regular meals is far less than the price range of meals in the restaurants, while providing quality meals at the same time. Our revolutionary “cooking convenience” occurs in two ways - cooking our meals at a time set by the company so that we are ready to deliver them in advance and providing minimum clean-up at the customer’s house or workplace which saves time as well as energy. !!!!

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!!MARKET SEGMENTATION

FÜD will focus on two definite target populations: !1. Students - This group of target population is generally busier than others with their split time between college & work and mainly includes students who live away from home. Toronto is a big hub for international students coming from different countries to study in its various designated institutions. These students live by themselves and struggle with time & abilities when it comes to cooking meals and usually spend most of their money eating out or ordering for food, which costs them much more than it would if they took FÜD’s services. !2. Office workers - There is a huge need of healthy food services for this group as professional careers as well as hectic schedules come against the need for healthy & tasty meals. This group is always competing against time with their busy work situations. Due to their short lunch breaks, this group usually orders takeaway food from down the street or nearby restaurants close to their workplace. !TARGET MARKET SEGMENT

FÜD is for everyone, but we’ve chosen our target market of young professionals & students between the ages of (18 – 34) based on the fact that there is a huge demand for our services among these people. Students have busy schedules and do not have the time to make nutritious meals and usually have their lunch at a fast food or take away restaurants. Young professionals are short on time during their lunch hours and wind up eating out and spending a lot more. Our nearly inexpensive, easy, and fun, healthy meals will highlight our marketing strategy for our target populations. !!FÜD’S COMPETITIVE ADVANTAGE

• Timely delivery everyday between 12PM and 1PM • Option of viewing the menu and picking your meal days at the beginning of the month • Mobile application to track your meal, make payments and view schedule • New menu each day without any repetitions in a month • Meals of all cuisines including Indian, Chinese, Italian and Canadian to name a few • All halal meat • Surprise Friday: Every Friday customers get a surprise in their box such as a dessert, fortune

cookie, etc.

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• Option of 2 meal plans based on appetite and budget • Two subscription options !

MARKET ANALYSIS

Market research indicates that a new wave of American cuisine is emerging, as there is a greater demand for food that is more authentic (Euromonitor International, 2014). Looking at the trend globally, such is evident across different markets, as individuals are looking for something exotic yet comfortable (Euromonitor International, 2014). The “better burger” trend in the US, UK and France is an excellent example, which is predicted to wash over Western Europe, Japan and India as consumers demand greater quality food (Michael Shafter, EuroMonitor International). Therefore, the ability to provide a food service with premier quality products is essential to success in the current market. Likewise, market research indicates a growing desire to live healthier and ultimately eat healthier as a result(Euromonitor International, 2014). Such had initially enticed US consumer’s in the early 2000s, as concerns about obesity, heart disease and inadequate diet came to the forefront of American consumers’ concerns(Euromonitor International, 2014). Thus, as economic growth recovers in the US, consumers are less concerned about their financials and have regained focus on the “Will to Health” trend impacting healthy shopping and foodservice preferences (Euromonitor International, 2014). Therefore, consumers are seeking fresher foods and expecting fresh, natural and organic ingredients in their meals, which has translated to the growth of health-oriented food-service outlets (Euromonitor International, 2014).

Furthermore, due to the health-conscious consumer trend, volume sales of fresh food in Canada and the US are expected to continue to grow (Euromonitor International, 2014). The packaged “fresh” sector such as prepared salads grew by 9% in 2013 in value terms and 3% in volume terms; while fresh-cut fruit grew by an extraordinary 30% in value terms and 19% in volume terms during the review period (Euromonitor International, 2014).

As a result, consumer foodservice in Canada registered positive value sales growth in 2013, with the improved growth performance continuing to reflect the health and wellness inclinations of higher-quality food and menu development (Euromonitor International, 2014). Fast food outlets have adapted to the consumer landscape by developing new concepts, which involve the cultivation of upscale menus (Euromonitor International, 2014). Therefore, many leading foodservice chains have been successful in 2013, with foodservice giants such as: MacDonald’s, Subway, Tim Hortons, Starbucks and A&W adding more outlets in high-density areas (Euromonitor International, 2014). However, with a highly saturated market, limited property availability, as well as changing consumer preferences, foodservice operators must be more responsive than ever before (Euromonitor International, 2014).

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Fast food chains in Canada have been expanding affectively through multi-faceted strategies (Euromonitor International, 2014). Health and wellness is having a major impact on branding and positioning, as Canadians are modifying their daily diet and leaning towards healthier options away-from-home and on the go (Euromonitor International, 2014). The increase in juice/smoothie bars, with a projected 1% CAGR in transactions and 2% CAGR in terms of value sales in 2013, indicates Canadians demand for health and convenience (Euromonitor International, 2014).

In addition, market analysis has indicated that many price conscious Canadians have responded to the economic downturn by turning to meal preparations at home more frequently, and planning their household food shopping in advance more often (Euromonitor International, 2014). Nevertheless, the increasingly hectic consumer lifestyle pace has continued to drive changes in dining-out habits, as Canadians are looking for convenience from foodservice outlets, rather than preparing meals at home. The Canadian Restaurant and Foodservices Association (CRFA) states that: “From breakfast to dinner, Canadian consumers are making the switch from a traditional meal schedule to one that is fast and flexible” (Euromonitor International, 2014).

MARKET RESEARCH

In order to understand consumer preferences of meal components, price and acceptance of the service, we conducted a market research with 40 respondents. Following were the results: !!

� !Based on a market research conducted by FÜD, 73% of respondents indicated that they bring their lunch from home, 50% indicated purchasing it at the cafeteria, 33% bought take-out and 20% had fast-

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food or do not eat lunch. Therefore, FÜD has great potential to infiltrate any of the indicated categories and to gain market share. !

! !58% of respondents indicated being conscious or very conscious of their health, falling in line with the “Will for Health” trend and Fud’s healthy food options. !

! !Based on our response, where 40% of individuals outlined a preference of a lunch containing a “main dish, side, soup and drink” and 45% indicating a preference for a “main, salad, soup/side”, FÜD has opted to go with a standard meal containing an appetizer, salad, main dish, side and a drink/soup, as well as a moderate meal (“mini meal”), containing a main, salad and a side. Therefore, we are catering to 95% of our respondents’ needs. !

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! FÜD’s price range fits well with 85% of respondents who indicated spending $5-$15 for lunch. !

! As a total of 83% of respondents indicated that they have difficulty in deciding what/where to eat for lunch, FÜD has an extraordinary opportunity to cater to this indecisiveness and provide individuals with an ease-of-mind. !

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! As 91% of individuals surveyed stated that they would be or maybe would be interested in a lunch delivery program, a niche in the market is evident. Also, as 33% stated that “yes” such would be of a convenience to them, and 58% reporting “maybe”, FÜD has an immense opportunity to sway the “maybe” respondents and capitalize on the positively perceived individuals.

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!PRODUCT / SERVICE OFFERING

!FÜD, our meal delivery service, will cater to corporate workers and students who are looking for an easy and healthy alternative to fast-food delivery in the Greater Toronto Area. !Our ordering and delivery service will be rooted in a pre-paid monthly subscription basis via an online profile, signing up for bi-weekly or monthly payment periods. The menu will be posted at the beginning of each month, giving customers a chance to see what they can expect throughout the weeks ahead. With service from Monday through Friday, FÜD offers two different subscription options, between our Heavy or Medium user. The Heavy user receives FÜD every weekday for the entire month, while the Medium user decides which 3 days a week they would like the service. Delivered between 12PM and 1PM, each meal will consist of a protein, a vegetable/salad, and a starch. The meals will be prepared daily by members of our team in our distribution centers located in Toronto. To ensure that each meal is delivered on time and ready to enjoy, our service will employ a number of small delivery vehicles for dispatch. In addition, a mobile app will allow the user to track their meals delivery. Before delivery, each meal will be packaged in an environmentally friendly and microwavable

container, allowing the customer to reheat their food at work/school if need be. FÜD prides itself on lending a hand towards the environment; each meal delivered by FÜD will be packaged in a reusable, microwavable container, making it convenient for our users and good for the environment. !!Our meals will be available for lunch, delivering to offices and post secondary institutions. Meals will be available in two sizes: !

Mini Meal: Salad, Main, and Side = $11.50 !Regular Meal: Appetizer, Salad, Main, Side and Drink/Soup = $14.99 !

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We care about our customers; hence we take their dietary needs and allergies into consideration while planning their meals. When signing up for the subscription, the customer has the opportunity to enter in their dietary restrictions, these entries will automatically be added to their customer profile, allowing our systems to register their restriction each time a meal is being prepares. We allow the customization for restrictions including vegetarian, vegan, gluten-free, dairy allergy, nuts, and religious restrictions (pork, beef, kosher). Our subscription-based options will allow our customers to receive their requested meal at their chosen corporation or schooling institution, anywhere in the city. In the event that a customer knows they will be missing a meal, they have the option to cancel 24 hours in advance in order for the price to be deducted from the next month’s subscription. !SAMPLE MENU

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CHANNEL STRATEGY !FÜD’s raw materials such as meat, vegetables, fruits, condiments and spices are purchased from local wholesale markets such as Toscana for meat and Augusta Market for fruits and vegetables. All meals are prepared in one central kitchen for all the customers after which, it is labeled and handed over to the delivery personnel who transport the meals in the delivery vans to the different customer locations including some homes, offices and university/college residence.

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MARKETING STRATEGIES

MARKETING OBJECTIVES !

1. Increase Brand Awareness 2. Develop Customer Loyalty 3. Top of Mind

MARKETING STRATEGY !FÜD’s main goal is to enter the market and position itself as a meal delivery service that provides consumers with a healthy and easy way to do lunch. It should be primarily aimed at young corporate workers, as well as university student; both targets who find themselves looking for a healthy way alternative to eating-out/delivery, but who do not always have the time to make a decision. As this is a startup company, the target market will remain narrow, due to the consideration that there are limited funds, as well as a low customer awareness of the company.

STRATEGY

As a new market offering, FÜD will rely on a strategic marketing communications mix to generate interest and loyalty among our target demographics. The product launch will coincide with a multi-faceted guerilla marketing campaign targeting online video aggregators (YouTube, Vine, Devour), Social Media (Facebook, Instagram, Tumblr) and “Pop-Up” lunch kiosks outside major financial and academic institutions in the City of Toronto. The launch campaign will encourage our target market to “Take Back Lunch” by signing petitions and providing contact information; generating a database for direct marketing initiatives for future tactics within the sales pipeline. In succession with the 8-12 week guerilla campaign – a fully integrated promotional campaign will be launched, targeting web, radio and print/billboard advertisements at targeted times and in specific neighbourhoods within Toronto. Our marketing objectives in relation to this strategy is to generate awareness and attract clients to our website and mobile app. The awareness campaign is intended to generate interest and fascination, encouraging the potential client to visit our website or mobile app for more information. !TACTICS

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This detailed, multi-stage promotional campaign is intended to generate conversation among business professionals and students through viral marketing strategies and eventually unfold into a large-scale integrated marketing communications approach. Each stage will require various tactics to elicit the required response and generate large-scale awareness. !Stage One: Guerilla / Viral Campaign (Eight – Twelve Weeks) !• In the theme of a coup or revolution, FÜD will infiltrate the daily life of potential customers

through a number of high traffic touch points including Facebook, Instagram, Twitter, Vine and Tumblr. In addition to these digital channels, FÜD advertisements will appear in print/billboard locations in public spaces, transit stops i.e. Subways, and ZOOM/Nowad interactive billboards commonly located in shopping malls (Eatons Centre), public washrooms (City Hall, Office Buildings, Universities) and stadiums (ACC, Rogers Centre, Varsity Stadium).

• The Viral/Social Media campaign will focus on a “rallying” theme inviting potential clients to sign a petition to “Take Back Lunch” – providing contact information for potential direct marketing and promotions.

• The objective of this tactic is to generate awareness and funnel potential clients towards our online and mobile content to learn more about the service. !

Stage Two: Integrated Marketing Mix (Four Weeks – Intensive) !• After generating a satisfactory level of awareness and accumulating a database of potential clients

through various guerilla tactics, a series of targeted radio and web based advertisements will be released. Radio commercials will play during major commuter intervals i.e. 6am-8am and 4pm-6pm. Billboard advertising will be present within the financial district and within proximity to major academic campuses. Web based banner ads will target business news websites, social media sites and popular interest pages.

• This stage will involve a direct marketing campaign – relying on the contact information provided in Stage One. Interested clients will be invited into our Trial membership and invite friends and coworkers to participate in exchange for discounts and promotional rates.

• The objective of the integrated campaign is to communicate brand relevance as well as persistence and reliability. This campaign will make specific reference to price – stating the 14.99 price tag as an essential brand element. !

Stage Three: Sustained Print and Online Advertisements !

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• Upon the completion of the 8-12 week promotional launch and 4 week integrated marketing campaign, FÜD will release a series of informational web-based commercials while maintaining strong digital, interactive and print marketing campaigns.

• The sustained campaign will rely on established brand elements such as the “Take Back Lunch” slogan and introduce a series of humorous online commercials. The intention of the sustained campaign will be to push potential clients further down the sales funnel towards a subscription. !

OTHER PROMOTIONAL TACTICS

• Providing one free lunch or samples to employees of partnered companies so that they can taste and experience the service, which could lead them to subscribe to FÜD.

• Downloading the FÜD smartphone app, entering into FÜD contests on Facebook, Twitter and Instagram will coincide with a 10% off promotion for One-Month subscriptions.

• Signing up as a community of FÜD followers or placing bulk orders for multiple employees in the same office, building or address will also be eligible for discounts, promotions and preferential public relations campaigns. !!

PUBLIC RELATIONS

• Sending out press releases to the print media • Beyond our commitment to providing a healthy and satisfying lunch, FÜD will participate with

local food banks and charities to ensure that nothing gets wasted. Cancelled meals or excess food will be donated to the cities local charities, shelters and food banks. FÜD is committed to putting people first – our commitment to “Take Back Lunch” extends beyond the professional setting. Should a meal get cancelled, FÜD users can select to have their meal delivered to a person or charity in need to guarantee that no lunch is wasted. !

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!THE MARKETING MIX

!Attracting, engaging and sustaining our customer base will rely on a highly coordinated marketing approach unique to our product and service. We intend to engage our customers at every touch-point whether they are placing their order, greeting our delivery staff or enjoying their well-prepared meal. Within each stage of the Business to Client relationship, FÜD is committed to maintaining a consistence brand image communicating the tenets of our service – convenience, reliability and satisfaction.

Our Product !FÜD is a new lunch delivery service providing freshly prepared and nutritious hot meals to offices, schools, institutions and organizations across Toronto. Our service is designed for professionals, students and all those who desire healthy meals but lack the time or expertise to prepare them. FÜD delivers lunch daily from Monday to Friday to locations across the City of Toronto, between the hours of 12pm and 1pm. Whether you are eating at your desk while working through tough deadlines or enjoying your meal in the campus quad – FÜD will give you the nutrition and satisfaction to finish your day strong. The true benefit in this service is the hassle-free and carefree process of receiving your lunch. A FÜD subscription makes your lunch a meal to look forward to without any time wasted or travel needed. !PRODUCT VARIETY/SIZES/SERVICES

The menu offerings for FÜD lunch delivery are the most exciting aspect of the service. For every day that our clients subscribe to the service, they will receive a unique dish prepared fresh daily by our in-house Chefs. FÜD offers both Mini Meals and Standard Meals depending on the appetite and budget restrictions of our individual clients. We design our meals to include a broad spectrum of nutrients, flavours and textures to ensure that your lunch is healthy and exciting every day of the week. The Regular Meal is typically composed of a Protein (Chicken, Fish, Beef, Pork, Legumes, Soy, Other), a Starch (Potato, Rice, Grains, Seeds, Roots Vegetables) and a Vegetable/Salad (Cruciferous Vegetables, Hearty Greens, Legumes, Salad Greens) while the Mini Meal consists of a Salad, Main/Protein and Starch/Side. !

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On each day of the week, FÜD will prepare a single menu to be prepared fresh and delivered to all of our clients in Toronto, taking into consideration the individual dietary preferences of specific clients. The menu will be made available at the beginning of each month allowing our clients to identify any discrepancies with their specific dietary needs. !!BRAND NAME

The name FÜD is a play-on-words including the Germanic umlaut (pronounced “ewm-lowt”) over the letter U which signifies the pronunciation of long vowels such as “oo”, as in “food”. The umlaut lends itself to the branding of FÜD, as a differentiating brand element identifying the brand name as a symbol to be used on all marketing materials. The FÜD logo will be present on all marketing materials including our takeout containers, cutlery, napkins, delivery trucks, delivery personnel, and branded FÜD merchandise. Our brand image is designed to target the busy lunch crowd who desire speed, health and reliability when choosing their lunch. Meeting these essential demands are the focus and pride of FÜD’s brand equity objectives. !QUALITY/DESIGN/PACKAGING

Our experienced and highly trained in-house Chefs source the best protein and produce available, favouring products from Ontario and Canada whenever possible. This ensures that our customers are receiving all the nutritional benefit of locally sourced produce while supporting Provincial and National agriculture. Our customers will prefer our meals to other takeout, catering or delivery options based on the ease and convenience at which their lunch time meal will arrive at their desk. Packaged in our proprietary containers designed to keep meals warm and liquids contained, your FÜD lunch will arrive intact and ready to enjoy upon arrival. Even for those too busy to stop and eat or saving the meal for later - the FÜD containers are microwavable, dishwasher safe and fully recyclable – making FÜD a convenient choice for all lunch time schedules. !Price !Finding an inexpensive and satisfying lunch is increasingly difficult within the chaos of the restaurant and fast food market in Toronto. FÜD is here to simplify that hour of the day when convenience, health and nutrition should be your focus. FÜD offers two meals daily – The Standard Meal and The Mini Meal. With your free subscription to FÜD based on bi-weekly or monthly commitments, you will receive The Standard Meal for $14.99 or The Mini for only $11.50 per meal including the cost of

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delivery. The pricing structure of a FÜD subscription does not change, so customers can expect to pay the same rate for every meal, every day. !This pricing model is intended to attract our target market of business professionals, young professionals and students that increasingly rely on paid subscriptions in various facets of their life. Paying for your lunch will not require any cash transaction, paperwork or time-consuming application. The payment plan is completely transparent and accessible online and through your smartphone via the FÜD app. These two methods will allow our clients to connect their preferred payment method to their account (Credit, Debit, PayPal, ApplePay) and enjoy a hassle-free lunch. The payment structure is based on bi-weekly and monthly subscriptions during which the client will select how many meals they wish to receive, on which days of the week they wish to receive them and apply any discounts or promotions available. The client will then be charged after the meal is delivered on their preferred day. !FÜD is positioned to satisfy the nutritional demands of working professionals in office buildings, institutions and other organizational structures in which time is a precious commodity. FÜD offers a corporate program for companies, offices and institutions with a community of FÜD followers among their ranks. The corporate rate includes discounted meals, preferred delivery, communal catering options and other promotions to encourage our corporate clients to embrace our commitment to speed, reliability and nutrition. With FÜD, our clients can “Take Back Lunch” and enjoy the speed and convenience of our service in the comfort of their workplace or office.

Promotion !FÜD is offering the ideal lunch delivery service for Office Workers, Professionals and Students in downtown Toronto. Our promotional strategy is highly focused in the methods we have chosen to connect with, attract and engage our desired customer base. The FÜD promotional strategy relies on an integrated communications mix such as those mentioned under marketing strategies (page 6), to catch the attention of our target market in a number of engaging and creative ways. !• Increase and establish awareness within the first year by connecting and developing a relationship

with our target market. This will be done through methods of direct marketing, social media marketing, such as Facebook, Instagram, Twitter, and LinkedIn, as well as guerilla marketing tactics.

• FüD plans to attract new customers by offering free meals/samples to company employees, which would encourage them to subscribe to our services.

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• To show our appreciation for users, we have developed promotional tactics to reward and sustain our loyal customers.

• Creating a sense of community through Instagram, Facebook, and other social media sites, where consumers can share their experiences with the brand.

• With our precise and streamlined branding, we would like to become the first service that comes to mind when consumers in the GTA think of lunch. We hope to do this through media and brand exposure, and word-of-mouth promotions.

Place!DELIVERY / TRANSPORT

Delivery is the heart and soul of the FÜD business model. Getting your lunch to your desk within our guaranteed time frame is no simple task. The execution of this task however is the essential component of our brand equity that FÜD will rely on to attract and engage loyal customers. FÜD will operate with proprietary delivery vehicles – small vans and cars displaying the FÜD logo will traverse the City of Toronto between 11am – 12:59pm to get your lunch to your place of employment within our guaranteed arrival window. The delivery service will carry a strong branded message, as our vehicles will be highly visible around the downtown core. Third party delivery services i.e. Hurrier or Taxi parcel deliveries, may be utilized in extreme cases however our proprietary fleet of delivery personnel will operate exclusively under FÜD management. The cost of delivery is factored into the price of the meal, therefore our clients will receive their meal without hidden costs or gratuities. !COVERAGE/SCHEDULE

Considering the time sensitive nature of our service and commitment to reliable deliveries, FÜD will only offer our lunch delivery service within specified regions of the city. FÜD will guarantee lunch between 12-1pm – delivered to prearranged destinations within office buildings, institutions and professional facilities within Toronto. The delivery time and location of the individual lunches will be fully visible via the FÜD smartphone app – so you can track your delivery down to the minute. Each client will be given a unique user ID with his or her name and ID listed on the packaging. !!!!!

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! !!!!!!!!!!!!!!!!!!Clients located within the dark green delivery region will enjoy full access to the reliability and service of FÜD. The regions indicated by the light green delivery boarders are slated for service expansion as the user base expands. The essential delivery zone will contain all clients south of St.Clair Ave, East of Keele St, West of Victoria Park with coverage extending right to the lake. !LOCATIONS/INVENTORY

FÜD will operate out of one central kitchen/transportation facility located in downtown Toronto. Possible locations include the Entertainment District (John St. & Adelaide), Trinity Bellwoods (Bathurst St. & Queen St. W.), Financial District (Portland & King St. W) and St. Lawrence (Front St & Jarvis). From these proposed locations, we believe our delivery personnel will have the most efficient access to our core client base, guaranteeing on time and well planned delivery.

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MARKET SHARE AND SALES FORECAST

When analysing the “100% home delivery/take-a-way” category, pizza delivery companies must be analysed as direct competition, holding an overwhelming amount of the category’s share equity. Domino’s Pizza is at the top of the leaderboard in Canada with 12.9 per cent of shares in 2013, with Little Ceaser’s Pizza holding 11.1 per cent in 2013 and Pizza Hut Express maintaining 8.1 per cent (EuroMonitor, 2014). However, 41.0 per cent of the “100% home delivery/take-a-way” category remains under “Other”, indicating an immense opportunity to implement the non-pizza dominated categories (EuroMonitor, 2014). Furthermore, chained foodservices obtained 74.4 per cent of the Canadian “100% home delivery/take-a-way” market in 2013, whereas independently owned foodservices obtained 25.6 per cent (EuroMonitor, 2014).

!FÜD aims to obtain 60 per cent of it’s sales from “Standard Meal” users (which sign up for the foodservice for the maximum 5 day per week period). 40 per cent of our sales will be acquired from moderate subscribers opting for the “mini-meal” for a minimum of 3-4 days per week. The standard meal will generate $300 in sales per month for every subscriber ($14.00 per meal) while the “mini-meal” will generate $250 per month for each subscriber at $11.50 per meal. The trial session will have a $25 surcharge at $180 per month at $14.99 per meal for the Standard Meal and $138 per month for the Mini Meal at $11.50. After taking into consideration the price of food ($3.50/meal), packaging ($0.75), delivery ($1), wages/labour ($1.50), $6.75 of sales are fixed costs. Therefore, $8 of the $15 sale is profit.

As a result, FÜD forecasts to acquire 100 customers (60% Standard meal users and 40% Mini-meal users) in the first 2 months of business, resulting in approximately $71,432 in sales; 250 customers in 6 months resulting in $355,860 in sales; and 500 customers after 18 months resulting in $2.1 million in sales.

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! ! However, marketing costs for the initial launch and gorilla campaign of our company are projected to be fairly expensive. Our Facebook Ads will cost $100/day for 6 weeks resulting in $4,200 for the initial campaign (Ad Set Cost & Budgeting). Twitter will consume $120,000 per day for promoted trends resulting in $720,000 for a promoted trend once a week for our 6 week campaign (https://business.twitter.com). LinkedIn will be allocated a budget of $30/day, where we will want 10 clicks each day to cost no more than $3/click (www.linkedIn.com). Therefore, LinkedIn will require $1,260 for our 6 week gorilla campaign. The cost of flyers will be $0.02 per flyer for 3,000 flyers, requiring $60; a 4-week media campaign for TTC advertisements (per panel) for AA stations will cost $2,000 and $2,400 for the 100 copies of the TTC standard Interior Advertisement for a 4-week media campaign (Flack, 2010). Lastly, on campus ambassadors (approximately 25 ambassadors) will be paid $10.50 for 10 hours to promote our brand, resulting in a cost of $2,625. Therefore, a budget of approximately $732,545 will be required to launch FÜD’s marketing strategy.

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CONTINGENCY PLAN Main Goal: Maintain business operations !Critical Business Functions: 1. Acquiring fresh/packaged food products and product packaging 2. Operating staff: chiefs, delivery workers 3. Location to prepare food for distribution 4. Successful marketing strategies !Risk Analysis: 1. A lack of sufficient food products or packaging for the food is detrimental to a foodservice industry.

Such a risk can result from an untrustworthy supplier, untimely delivery, poor scheduling, inadequate inventory maintenance, environmental catastrophes (drought, flood, hurricane), political concerns (i.e. war threatening tariffs and trade among nations).

2. Operating staff such as: suppliers, wholesalers, distributors, truck drivers are vital in ensuring the food is delivered to the processing location and prepped for distribution. Chiefs and delivery workers are essential in ensuring the food is prepared and delivered to our customers in a timely and professional manner. Risks such as: car/truck problems, extreme weather conditions (snowstorm, tornado, etc.), illness/epidemic, or death are potential threats to the operating staffs’ success.

3. A clean, sanitary and organized location is essential for preparing the meals that will be delivered to our customer each day. Potential location threats include: fire, flood, pest infestation, robbery/vandalization, and an incapability to pay rent on the location.

4. Successful marketing strategies are essential as they generate awareness and bring in new customers, which is critical for a start up company. Marketing strategy threats may include: death/absence of marketing manager and/or marketing team, insufficient funds, extremely negative PR, misinterpretation of customer needs and/or STP. !

Time Frame: 1. Very high priority: take action in 1-2 days 2. High priority: take action in 2-3 days

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3. High priority: take action in 2-3 days 4. Moderate priority: take action in 7-30 days (depending on circumstance) !Risk Management: 1. In order to avoid shortage of food supplies or packaging, multiple food suppliers and distributors

need to be on hand in time of crisis. Therefore, forming strong relationship with numerous product management chains is essential in case a back-up must be called in during a time of emergency. Maintaining proper inventory and checking inventory correctly is very important. Maintaining a proper supply (including an emergency supply of not perishable goods) may be a good way to prepare for the worst. Likewise, ensuring that the menus are thoughtfully created and orders are for supplies are put in within a sufficient time period will alleviate risks.

2. Properly training our operating staff is important and always ensuring that we are recruiting, hiring and/or training new employees to better our future. Ensure employees undergo proper training and an internal sense of the brand is established within the company, where employees and suppliers care about the company and it’s success. Likewise, ensuring that all 6 founders of the company are properly trained in all areas of the company, and are able to step in at any time is important. Likewise, holding multiple chief positions, as well as having potential back-up chiefs that can be called on in times of trouble will alleviate risk.

3. Make sure the location is clean, hazard-free, and safe at all times will protect the company. Investing in insurance, and a security system can be a great risk management strategy. Furthermore, having a back-up location that can be rented out temporarily in case of troubles is critical.

4. In the case that the company’s marketing strategies fail and the company is not functional due to our lack of success, a different targeting approach will be taken. FÜD will have to rethink our STP and re-segment ourselves. Although still relying on the main values and core branding outlined above, we will position ourselves to a different niche market. Instead of targeting young professionals/ corporates and students, we will refocus on the maturing population (ages 65+), who are unwilling or incapable of making their own lunches. To assist the drastically growing aging population in Canada, we will provide a service that creates ease of mind, convenience, reliability and a healthy meal alternative to a niche that is very much untapped. Likewise, we will conduct market research to better understand our target market and cater our menus, time of delivery and price-point to their needs. Therefore, retargeting, and repositioning will be a primary contingency plan for FÜD, where alternative marketing strategies will be taken to meet the different target market (i.e. television campaigns, less digital, print, etc). !

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REFERENCES !1. (Canada's GDP growing at 2.8% pace, 2014) 2. (Food Services and Drinking Places (NAICS 722): Financial Performance Data). Retrieved from

https://www.ic.gc.ca/app/scr/sbms/sbb/cis/benchmarking.html?code=722&lang=eng 3. (Welcome to Tiffinday!). Retrieved from https://www.tiffinday.com/ 4. (Toronto Healthy, Organic & Paleo Meals | Essential Meal Delivery (Essential Meal Delivery Home

Page Comments)). Retrieved from http://www.essentialmealdelivery.com/ 5. “Ad Set Cost & Budgeting”. (2014). Retrieved from www. Facebook.com/help 6. "Analytics". (2014, January 1). Retrieved from http://www.portal.euromonitor.com.rap.ocls.ca/

portal/analytics 7. "Help Centre”. (2014). Retrieved from www.linkedIn.com 8. “Solutions". (2014, April 3). Retrieved from https://business.twitter.com/solutions/grow-followers 9. “Statistics". (2014, January 1). Retrieved from http://www.portal.euromonitor.com.rap.ocls.ca/

portal/statistics/rankcountries !!!

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