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Premium and Affordable Food Inc
Premium and Affordable Food Inc
AFFORDABLE
FOOD INC
DISPOSABLE ELECTRIC
STOVETOP FILM
Premium and Affordable (P&A) Food Inc. is a Canadian multinational
food and kitchen cookware corporation headquartered in Toronto,
COMPANY Canada. It is the new food company, started in 2021 Currently, it is
the sixth largest food company in Toronto, measured by the
INTRODUCTION revenues. Also, it ranked No.1 Customer favourite brand on the
Canadian Fortune Magazine in 2019.
P&A products include two main categories, food and kitchen
cookware. It produces baby food, medical food, soft drinks, bottled
water, breakfast cereals, soy sauces, coffee, tea, dairy products,
frozen food, snacks, and pet foods. It also manufactures kitchen
cookware, including non-stick pans, seasoning bottles, and kitchen
appliance. P&A has about 100 factories all over the world. Most of
them are located in China. It employs around 40,000 people.
INTRODUCTION
• Cleaning the stove top is a tedious task !!!!
Stand up to 1000OC
Generate over $500,000 in sales by the end of Our ideal customer is between the ages of 25 and 65 who
enjoy a healthy and high quality life. In this age group,
year1
people care about the quality of their life, especially the
Realize breakeven in the first year environment of their kitchen.
In order to lead a healthy life, they are willing to invest on
Increase sales by 100% by the end of year 2
the premium products which helps to maintain their
kitchen clean.
The customers are typically household males and females.
They usually have a reasonable amount of disposable
income.
MARKET STRATEGY
Channel Distribution
online searching
P&A has limited resources and need to manage the engine
Promotion
Currently, there are several companies, including IKEA and SimpleHuman, sell stove top cleaning products.
However, P&A magic film is the only disposable glass stovetop film on the market.
The following tables show the budget on IKEA, SimphleHuman and P&A on advertisement. As shown in the table,
the budget of P&A is the lowest among the three; therefore we should effectively use the financial resources to
reach the desired goal.
Company Networking Advertisement Budget
s
IKEA 20% 80% 4.2million
SimpleHuman 25% 75% 3.2 million
P&A 40% 60% 1.2 million
COST AND BENEFIT ANALYSIS
P&A expect to achieve an increased market share and Annual Expected Costs and Sales 2021
sales of 8.5 million in the first year. The magic film Product Unit Price $ 24.99
project will break even in the first year. Competition Variable Costs Per Unit $ 11.45
Fixed Costs Per Year $ 5,404,600.00
is expected to be based on price, design and functions
Retail Sales Forecast $ 5,000,000.00
of the products. Whole Sales Forecast $ 3,500,000.00
Company Sales Per Unit 340,136
CONCLUSION
Based on an evaluation of magic film market, and P&A’s strengths, P&A will
introduce a magic film to the market. According to the competitive analysis and
cost and revenue analysis, the new produce should be able to reach beak even for
the first year and make profits for the following years.
REFERENCE
www. Statcan.com