November 22, 2006

I have this wild idea of putting up a central supply of cooked rice in every major food-courts in the metro.  Aside from the regular P12-per-cup-sized plain rice, here I could initially offer customers different varieties:

1. Pusô or hanging rice (cooked rice wrapped in heart-shaped coconut leaves) – Bisdaks certainly crave for this.

2. Rice-all-you-can for carbo-loaders, with choices of grain quality from NFA to Ganador to Asian rice

3. Specialty rice (such as organic red rice, red yeast rice, etc.) for the diet-conscious.

With these alternative products, food concessionaires may no longer have to worry about cooking rice themselves and the wastage that goes along with it.  There is no special ingredient to cooking rice so they should not be weary of losing their competitive advantage for offering rice-less menus.

Customers would now be given more choices and they need not line up in another queue because these rice alternatives will be made available to them via roving carts.

After a year of operation, I should be able to predict trends on rice demand from every food court using various techniques in product profitability analytics.  I could also develop business relationships with Chinese restaurants so I can supply my unsold plain rice as raw material for their fried rice varieties (yang chow fried rice and the like).  I could also expand my business to be able to cater to major food chains in the country.

I have this wild idea too that this case might come out in our comprehensive examinations in MTM.  Can someone help me draw out my marketing plan for this?  Should I worry about competitive strategies this early?  What technologies should I exploit to achieve the reasonable speed-to-market?  Should I have a rice plantation to ensure constant supply?  Any research and development efforts I should pursue?  What should I do if SM comes out with a competing SM Bonus product?  Do you think this is a feasible venture?


4 Responses to “Ent-rice-preneurship”

  1. ruprup Says:

    what you need to take care of first is the manufacturing-related technologies as to prolong the shelf-life of your rice – cooking, packaging, ingredients, etc. and the other technical feasibilities to reduce spoilage and prevent contamination. especially for large-scale food production, there are certain standards that you need to subscribe to – GMP, HACCP, ISO, etc. to name a few. and this will help you generate the financial considerations. while these may sound o.a., at least technologically e ahead ka na sa mga competitors that would imitate your business. remember, while rice is already staple, you are just offering something new to an existing need. so you can fad this one out. but, just like zagu, e bibigay din yan when everyone is already in this type of business. with the manufacturing churva that you have, you can package, export and probably offer to alternative market – such as fastfoods, convenience stores, big restaurant, etc.

    as for the marketing plan, i am pleased to share to you the 4 A’s of marketing (as opposed to the 4 P’s), which is more consumer-oriented rather than company-initiated:
    1. Acceptability (satisfy consumer needs (product))
    2. Affordability (price) how much consumer is willing to pay
    3. Availability (placement), convenience, and retail price where user needs
    4. Awareness – make known & create demand

    so basically, you may need to understand first the demographics of consumer in a food court setting, say SM, and find out why they eat rice, how many, what type, and what do they want normally for their rice. you need to also check lifestyle – baka kasi simpleng kanin lang ok na sila. kaya additional benefits, while it may be acceptable e hindi naman click for them or medyo di sila willing to pay extra.

    o baka naman the extra service of making lako the rice ala-tokyo-tokyo style e di naman nila keri, unless libre ha. kasi pipila rin naman sila sa bilihan ng ulam.

  2. ericdc Says:

    hey bai… good concept but lots of details or questions. you have to consider that customers don’t just buy the rice. people usually choose the main dish first before the rice and some actually prefer no rice at all. therefore, you need to tie-up with the other concessionares. pricing is also the key factor. and as an add-on for the customers, there has to be a special ingredient that only you can offer in the rice for them to consider. it could be a special slimming ingredient, less-fat factor, less-calorie, less-sugar content, or whatever. something for people to think that eating rice is good and healthy. you can packege it in special forms such as the japanese maki or puso. target a niche market as your specialty.

  3. dwinnix Says:

    thanks for the insights mga bai. maybe instead of a pushing cart, the other way is for the customers to still pay for their rice of choice to any of the food concessionaires as if these were their own merchandise. but i should have a strong IT infrastructure here so i could easily interface the sales from all these concessionaires to my system to achieve online inventory management.

  4. […] tried his entrepreneur creativity by posting ways of selling varieties of cooked rice — https://tmdefinition.wordpress.com/2006/11/22/rice-preneurship/. You’ve got supply challenges now […]

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