International Marketing Febo Report.docx

47 sales channels our only sales channel initially

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4.7 Sales channels Our only sales channel initially will be sales at the stores themselves. There is the potential to look at getting our products into retail but in order for this to be effective we believe we will need a much larger national footprint so this is not going to be a priority for us in our first 5 years in the US market. 4.8 KPI’s Our primary KPI will be sales and we will evaluate these by product, day and time. We will also be looking at the usage of our loyalty program and redemptions from promotions. GoodBarber’s platform allows us to see a profit estimation directly related to our loyalty program so this will be an important KPI for us. We will use the media monitoring tool Mention to track our brands performance on the social networks and in more traditional digital media. As well as the number of mentions we will be keen to monitor the Sentiment Analysis to check that the mentions and engagements are, in fact, positive. Finally, we will also be looking to the number of competition entrants we receive each month and also the number of sales of our branded ‘Yards’. 5 FINANCIAL STATMENT 5.1 Revenue projections Our plan is to open 39 stores in the span of 5 years. Our locations will be concentrated on the West Coast covering Las Vegas, Los Angeles, San Francisco, San Jose and Oakland. Our initial 5 stores will be launched in Las Vegas, Nevada and we plan on opening additional locations in Las Vegas every year making Las Vegas our premium location. 10
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Fast food chains like McDonalds, Burger King etc. have revenue of $500,000 a year in Las Vegas 4 . Febo is a 24-hour operating business and we expect to have a revenue of 1 million dollars per location for all 5 stores at the end of our first year of operation. Our EBIT out of 5 million dollars in revenue is $757,000, which represents 15.15%. At the end of 5 years, we expect revenues to reach 38 million cumulatively across 39 stores with a EBIT of approximately $6.013 million, making a return of 15.42%. Our biggest revenue is generated from the royalties paid by our franchisees which represents 8% out of the gross sales. We plan on generating 4.5% of the franchises’ gross sales for advertisement and marketing budgets. For the year of our launch (2018), this advertisement budget accounts for $225,000. We estimated a total cost of $239,000 for year 1 making us short of $14,000. The management team decided to invest the $14,000 out of the Febo corporate cash flow to execute a successful launch. 5.2 Income statement We estimate having a revenue (EBITA) of $757 000 for our first year and expanding to over $6 million following our expansion plan. Our costs will primarily come from running our operations and revenues will be generated from the franchisees’ purchase fees, annual royalties and advertising fees, as well as the food inventory sales (see appendix X. Income statement projection 5 years). 5.3 Marketing plan cost Our marketing budget will be allocated within the different initiatives; PR, website and App, social medias, directional advertising and others, with the major portion of the budget will go towards the directional advertising and PR. (See appendix XI for advertising budget – year 1 & appendix XII. Projection revenues from royalty for advertisement)
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  • Fall '12
  • Buss
  • Marketing, Fast food restaurant

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