The document analyzes a proposed business venture to provide healthy lunches to elementary school students in London, Ontario. The partners plan to invest 10 hours per week each and expect $36,000 over 10 months. Key issues include a lack of attention since the partners are full-time students contributing part-time, and a lack of sufficient funds as the partners only have $25,000 but $40,000 is needed. The document performs a SWOT analysis and recommends lowering costs over time through economies of scale, increasing variety and administrators, and more promotional activities targeting parents.
2. CASE SYNOPSIS
This case is all about analyzing the
2marketing, operating and financial
aspects of the business venture to
determine the financing requirements
before making a decision as how to proceed with
the new venture
As they are are student so they are able to
invest 10 hr a week each & expect $36000 for
10 months
Key Issues
Lack of attention – as partners are
full time universty students they are
contributing as partime in business
Lack of funds- partners having total
capital $25000 where capital
required to initiate such business
$40000
Cost of offering $5 per unit is
appearantly high in comparison of
peer groups offering between $2.59-
$3.99
Healthy lunch
service for
school going
youngster
with Easy delivery
London,
Ontario
$ 5 per
lunch
Website
Fundraising
fair
Promotional
package
MARKETING MIX
PLACE PricePRODUCT Promotion
COMPETITION ANALYSIS
Major competitors-
1. Lunchables (Kraft)
2. Lunchmates (Schneiders)
3. Smart Lunch (Schneiders)
TARGET GROUP
Health conscious working
families
children in elementary school
U N I V E R S A L B U S I N E S S S C H O O L
3. Weakness
Budget Restraints
Limited knowledge
about the business
OPPORTUNITIES
Health conscious
families
Increasing family
incomes(by
13.6% between 2001 to
2005)
THREATS
Dual-monthly hot lunch
programmes
Strong competition from
established brands
Low price of packaged lunches-
$2.59-$3.99
RECOMENDATIONS
Lower cost after first year of operation ,by increasing the no. of school
that helps to achieve economies of scale and conclusively cost goes
down for per unit.
Increase the variety of lunches and Hire More administrators.
More Promotional Activity and Advertisements Targeting Parents.
STRENGTH
Healthy food choices
Flexibility for parents &
children
Variety of choices
Easy delivery
SWOT ANALYSIS
FINANCING
Initial investment-$25,000 Compensation-$6000
Total Market Share
No of elementary School-
154
Avg. Students-400
Total No of students-61,600
U N I V E R S A L B U S I N E S S S C H O O L