Full Belly Noodles: Never Leave Hungry
Hope E. Cassady
Strayer University
Professor Jean Gordon
MKT 500: Marketing Management
Executive Summary
The Full Belly Noodles pasta company currently serves the city of Paris, Illinois and its metropolitan neighbors as the only fresh pasta company within a hundred miles. The company is a small family-owned operation which is still run by the first generation owner. Full Belly Noodles sells fresh packaged pasta to local area grocery store chains.
While Full Belly Noodles currently has no plans to relocate their operation they do have a loyal customer base. Each year for the past 5 years the company has seen a steady growth in sales of more than 15%, with the holiday months of October, November, and December being the highest grossing months. One of the major challenges facing the company is how to manage the sluggish sales during the months of June and July and increase their sales and overall profit margin during these two months. Another challenge that they face is increasing its staff. While the company has 5 employees throughout the year the busy season requires Full Belly Noodles to increase their staff to 10 in order to keep up with the increased sales and distribution.
Daily operating cost for the store including salary and overhead plus profit is $973.00, which means that Full Belly Noodles must sell 355 bags of noodles each day. With distribution in the 62 stores each store must average sales of 6 bags each day not including the on-line sales. Currently monthly expenses of $11,570, with a net income of $34,125.00 Full Belly Noodles has an average monthly profit of 34%.
In evaluating and reviewing the company and their overall strength and weakness, this plan will focus on how to provide growth strategies, in order to address how they can meet their current and growing customer demand during the holidays, remain in their current location, overcome the scheduling barriers, and increase sales during the...