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5. Traditional shaved ice is a product that has yielded a considerable profit in terms of cost of production to produce at $0.16. Bao Bing has an average cost of $0.93 Market research conducted in the Free Zone, did surface one shaved ice business on a small scale, "Helados Movil", operated on a moving trolley. Helados Movil consists of a small trolley pushed by one employee. Helados Movil is sold in cups with a price of
$1.75 (large).
Frozen ice creams were also found to be sold at A & R and Rafael Chavez and Son’s in the Free Zone. Each sold ice creams in one regular size at $2.00 each.
Research in Chetumal City, Mexico revealed that shaved ice with no brand name is sold along with other products. Several businesses sold shaved ice with prices ranging from
$1.99 (small), $2.79 (medium) and $2.99 (large).
Research conducted in Corozal Town, Belize, ½ hour from the Free Zone, showed that in some locations shaved ice sold as high as $3.00 for a regular size. However, the majority of shaved ice was sold by the flavor and not necessarily by the size. For example, one flavor was $1.79, two flavors were $2.99, and three flavors sold for $3.99.
5.0 Marketing Plan and Strategy
Marketing: Creating an environment where sales can occur.
~ Unknown
5.1 Objectives
Bao Bing recognizes that the key to success and building a customer base can be
achieved with an aggressive and widespread promotion strategy which we intend to start on our grand opening. Our initial goal is to attract the 25,000 monthly visitors that patronize the Mirage International Plaza. Every year, Bao Bing will invest $2500 in marketing our product. However, we believe that we will be able to build a customer
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base by focusing on our quality and depending on recurring customers and referrals to new ones. After our grand opening, Bao Bing will focus its attention in attracting customers by using referrals from the Casinos. As such Bao Bing intends to invest a lot of time and effort on building a strong business relationship with the Casinos to ensure a recurring number of customers. Both Casinos have already built a strong customer base so we will build a strong partnership with these establishments to build our customer base.
Bao Bing’s marketing objectives:
1. Our focused advertising campaign will position our offering as —“fresh, natural, and healthy.” Our deli as- “cozy and comfortable ambience”
2. Gradually grow our target market reaching to 60% by 2015.
3. Increase sales to approximately $487,000 by 2015 4. Obtain net profit of $185,000 by 2015
5.2 Marketing Strategy
Bao Bing will invest US$5000 for the first 2 years and US$3,000 for year 3 to 5 in its marketing budget. We will promote Boa Bing to potential customers by:
• Promoting our deli with an introductory ½ price on our Grand Day and other special days, like Mother’s Day and Independence Day.
• Flier distribution to consumers in and out of the Free Zone.
• Presence in the local newspapers.
• Attend the annual trade show held in January of every year.
• Partnership with Casinos
Potential Mexican customers are immediately and economically accessible via local magazine readership, through these popular media:
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El Editorial 100,000 monthly circulation
Quintana Roo 50,265 monthly circulation
We plan to advertise in these publications upon entering the Free Zone and periodically thereafter, to build brand awareness. We also plans to build customer awareness
through participation in the local Chambers of Commerce in the Free Zone, co-marketing partners with restaurants, casinos, and partnering with the CFZMA to attract groups visiting the free zone.
5.3 Marketing the Value of Bao Bing
To demonstrate the value of Bao Bing we can:
• Show our customers that we comply with all standards for handling foods. We will display our certifications.
• We can show our clients that our ingredients are supplied on a daily basis to guarantee highest standards of quality.
• Participate in trade shows and display our product to our customers so that they can have a look how our shaved ice is prepared by our expert food handler
5.4 Integrating the internet in our business
Having a web presence is of the utmost importance to Bao Bing because it is a way to communicate with our customers. This will be done by creating a FACEBOOK portal with basic information and pictures about our Deli Shop. Information on our business will be written in both Spanish and English.
The FACEBOOK portal gives a face to what Bao Bing is about. It will provide our address and our products. Our company will load recent post of pictures and provide updates of our product so that our customers can keep updated with what is happening around us. Customers will be able to add us as “friend” and make comments on our product. This interactive tool will offer us feedback, what our customers think about us.
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5.5 Business Partners
At every level of business development, we anticipate a significant jump in business value. Each milestone achieved will give us an opportunity to increase our customer base.
While we simultaneously track competitors, we also track possible partnerships with other companies. Some will want our exquisite deli to offer as part of their menu, others will see value in our strategic relationships. Some strategic partnerships include:
Las Vegas Hotel and Casino: – partners in our promotions and coupons. Casino has a daily raffle or draw for all visitors. Our deli will be featured on specific days of the weak and visitors will be able to win deli treat for their family in the amount of
$25.00US.
Princess Hotel and Casino: – partners in our promotions and coupons. Casino has a daily raffle or draw for all visitors. Our deli will be featured on specific days of the weak and visitors will be able to win deli treat for their family in the amount of
$25.00US.
6.0 Competition
6.1 Competitors
No other business in the Free Zone specifically caters to the shave ice business.
However it is anticipated that prices will be competitive with other businesses who sell cold drinks and ice creams on a smaller basis in the nearby town across the Mexican Border.
The shaved ice business will be new to the Free Zone. One competitor is "Helados Movil" moving cart in the Free Zone. Helados Movil sells shaved ice on a small, one person trolley with limited choices of syrups. Furthermore, because of its facility, they add high-sugar content syrup to the shaved ice. Poor hygiene is also obvious. Other competitors sell frozen ice cream through A & R and Rafael Chavez which also has
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limited selection of flavors. Our competitors are only distributors of the frozen ice cream since their business focus is general merchandising.
Our main competitors that are the most successful in the Free Zone are Helados Movil, A
& R and Rafael Chavez & Sons. Included below is a more complete Competitive Round-Up listing additional strengths and weaknesses details on each of our competitors in the Free Zone
Our top 3 competitors are: