Forget about forgetting about the ketchup

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Forget about forgetting about the ketchup Powered By Docstoc
					                  Forget about forgetting about the ketchup.
Because the Kethcup Holder makes take- home dinners, to-go snacks and drive-through
meals more convenient, more accessible, more personalized and much cleaner, too.
The Ketchup Holder is an open-topped french fry container made in carton format.
Made of a wax-coated paperboard in five-ounce capacity size, the front wall of this
carton features a foldable pouch, in which can ketchup be stored.

This pouch is formed by a perforation-attached face-wall, and with accordion-style
sidewalls. By pulling a tab extending from the top horizontal wall, the pouch can open to
form the Ketchup Holder, and ketchup can be conveniently placed within this pouch for
easy access.
Not only is it easy to access the pouch, but the pouch makes it easier to access the desired
and desirable condiments, as well, and in any environment of use. Taking your burger
and fries back home or over to the office? No need to smear your fries all about the table
top in a tiny blob of ketchup. Eating your meal behind the wheel as soon as you leave the
drive-through window? No need to take a risk of messing up your car seats, and no need
to feel forced to eat your fries without any ketchup due to this inconvenience, either.

Americans are purchasing foods to- go much more often nowadays, and mainly for the
convenience. The Ketchup Holder can further this convenience, and don’t you forget
about it. Because now your company could have the opportunity to make these
provisions that Americans want. Please read on to learn more about the Ketchup Holder.
                                 Features & Benefits
                                         Of
                        The Ketchup Holder
Features
·   Open-top french fry container
·   Made of wax-coated paperboard
·   Of 3 ¾” x 2 ” x 4 ” size and 5 oz. capacity
·   Foldable pocket with accordion-style sidewalls placed on front- face of container
·   Perforated strip to seal pocket prior to use
Benefits
·   Stores condiments directly upon the containers of food items
·   Makes condiments easier to access
·   Prevents waste and spillage when used while driving
·   Improves speed of floor traffic in using facilities
·   Improves speed of drive-thru service
·   Provides more efficient control of condiment serving sizes
·   Eliminates circumstances of condiment waste and resultant costs
·   Allows determination of full cost-of-sale without reliance on broad estimates due to
    vast variation in condiment use
·   Gives consumers the efficiency and speed of service that they want
·   Provides image of service priority and convenience
·   Can be used upon various containers for many different types of foods and beverages
·   Makes inventory and ordering of condiments more controlled and efficient
                                  Pertinent Manufacturing Industries
                                                 Of
                                  The Ketchup Holder
 SIC                                Industry                 Companies     Annual Sales
2656                        Sanitary Food Containers            133         $3.025 billion

The Ketchup Holder can be made by many companies in this SIC 2656 industry.
Moreover, these companies already have all necessary equipment, as well as the
necessary customers that purchase their related product line. There are also many
companies in other industries that make such goods as a secondary product line.

The following chart shows the recent sales history of the Sanitary Food Containers
manufacturing industry:


                       Manufacturer Sales of Sanitary Paper Products

                   $3.10
                                                        $3.024              $3.025
                                                                  $2.997
                   $3.00
                                     $2.960 $2.974
   In $ Billions




                   $2.90


                   $2.80


                   $2.70   $2.671


                   $2.60
                           1997       1998      1999     2000      2001      2002

Source: U.S. Economic Census

Sales for these companies grew 13.25 percent in this six- year period. Please note that
material costs have reduced about $140 million in the past few years, and that labor costs
have reduced about $40 million. As a result of these cost reductions, profits for this
industry grew even more than gross sales (18.83 percent) in this same six- year time
period.
                                           Wholesale Industry
                                                  Of
                                 The Ketchup Holder
  SIC                                Industry                  Companies   Annual Sales
5113                    Industrial & Personal Service Paper      6,215      $27.006 billion

The Ketchup Holder can be distributed with other similar items, such as disposable cups,
plates and utensils for commercial use that this Industrial & Personal Service Paper
wholesale industry sells to its clients of restaurants and similar service industries.

The following chart shows the recent sales history of the Industrial & Personal Service
Paper merchant wholesale industry:


                                      Wholesale Sales of
                              Industrial & Personal Service Paper

                                          $29.425
                    $29.50

                    $29.00

                    $28.50                                                 $28.356
    In $ Billions




                    $28.00
                                                       $27.587
                    $27.50   $27.359
                                                                 $26.890
                    $27.00

                    $26.50

                    $26.00
                              1999         2000         2001       2002     2003



Source: U.S. Bureau of the Census

Wholesale sales of this industry rose 3.52 percent in last recorded five-year period, and
the Ketchup Holder can help this industry to continue its recent rebirth.
                                              Retail Industry
                                                    Of
                                  The Ketchup Holder
  SIC                                Industry                     Companies   Annual Sales
5411-01                            Supermarkets
                                                                     94         $4.132 billion
(part)                      exceeding 65,000 square feet

These particular retail environments that small businesses rely on for commercial
supplies can carry the Ketchup Holder, as well, to meet the needs of such clientele.

For example, supermarkets of this size and intent (such as Sam’s™ and Costco™) serve
small businesses with a wide variety of supplies, merchandise and equipment. The
Ketchup Holder can be provided to these businesses through this particular retail avenue,
and the following chart shows its recent sales history:


                            Retail Sales of Commercially-Providing
                                Grocery Stores (65,000+ sq. ft.)

                    $4.20                                                     $4.132


                    $4.00
                                                       $3.922
                                                                     $3.897
    In $ Billions




                                          $3.807
                    $3.80


                             $3.611
                    $3.60



                    $3.40
                             1999          2000            2001      2002      2003


Source: U.S. Bureau of the Census and ZapData (estimates)

Annual sales of this class of stores grew 14.42 percent in this time period.
                                         Potential Need
                                              For
                          The Ketchup Holder
       The Ketchup Holder can help restaurants respond to consumer demand.
·   Sales in restaurants of all types have dramatically increased in recent years. Today,
    over 40 percent of all money spent on food goes to restaurants, averaging over $1,000
    per person every year on meals away from home.
·   Americans spend about $80 billion every year on fast food and take-out meals alone,
    indicating that it’s the convenience in such dining options that consumers want most.
    And the Ketchup Holder can join this field of growing sales by its offering of
    improvement to the convenience.
·   The Ketchup Holder directly stores a primary condiment directly on the container of
    the food item it complements. By offering this sought-after convenience directly upon
    the container of a sought-after food item, the Ketchup Holder will definitely be
    sought after by restaurant consumers.
    The Ketchup Holder can help boost side-item sales to drive-through customers.
·   Restaurants can’t succeed on main course sales alone. Side items maintain the
    financial security of restaurants due to their high profitability in comparison to the
    much lower mark-up that main courses can achieve.
·   Serving french fries can actually produce more profit than hamburgers. In fact,
    without such side items, the level of profit per sale can be strikingly low, and almost
    too low for a food service establishment to get by.
·   This circumstance creates a difficulty for restaurants with prominent to- go and drive-
    through sales, however. Sales of side items to drive-through and to- go customers are
    substantially reduced, and due to the inconveniences these customers hope to avoid.
·   Consumers find it too inconvenient to enjoy french fries while driving, and because
    they have no convenient place to store the ketchup. And if consumers can’t enjoy
    their fries they way they want to, they simply won’t order them.
·   The Ketchup Holder can provide these consumers with the convenience they need
    that allows them to enjoy their french fries they way they want. It conveniently stores
    the ketchup directly within a pouch upon the fry container itself, and without placing
    a risk for mess within their vehicles.
·   And by offering this convenience that allows consumers to enjoy their foods they way
    the truly desire, restaurants can improve their sales of these very profitable items.
       The Ketchup Holder can help improve consumer traffic at reduced costs.
·   Many establishments provide individual serving packs of condiments for the
    convenience in speed of service, but this convenience can be costly at times.
    Employees too often provide unneeded quantities of condiments to meet what has
    become and unestablished quantity need.
·   The Ketchup Holder can establish a serving-size norm for these establishments,
    allowing them to provide the speed of service desired, but with established and
    consistent costs that suffer no variability.
Sources: National Restaurant Association and Restaurant Spending
                                 Potential Consumer Base
                                            Of
                          The Ketchup Holder
The Ketchup Holder can be used by practically all types of food service establishments.
Those that are well known for serving carry-out items and products that must be hand-
held by consumers would have need for this new product most, however, and can be
considered a primary target market.
    SIC                       Industry                 Companies         Annual Sales
5812-0201                 Concessionaires                 1,612             $2.558 billion
5812-0302           Carry-Out Only Restaurants            5,754            $907.9 million
5812-0306               Drive-In Restaurants              4,202             $1.798 billion
5812-0307          Fast Food Restaurants (Chain)         44,051           $62.557 billion
                       Fast Food Restaurants
5812-0308                                                 4,406             $1.725 billion
                           (Independent)
               Total Primary Market                       54,233          $69.546 billion

Of course, there are still very many other food service categories that can easily utilize
the Ketchup Holder due to their specialized product lines, ratios of carry-out business
and/or required speed of service.
    SIC                      Industry                   Companies        Annual Sales
5812-0205                 Soda Fountains                    172             $16.3 million
5812-0301                Box Lunch Stands                   140             $37.2 million
5812-0303                   Chili Stands                    164             $38.6 million
5812-0309                    Food Bars                      212             $46.6 million
5812-0311                Hamburger Stands                  2,350          $694.9 million
5812-0312                 Hot Dog Stands                   1,646            $67.8 million
5812-0314                   Snack Bars                     1,161             $604 million
5812-04               Lunchrooms & Cafeterias              7,266           $2.435 billion
5812-9901                     Buffets                      2,275           $2.087 billion
5812-9902                      Cafes                      14,877             $3.15 billion
5812-9904               Chicken Restaurants                4,895           $2.098 billion
5812-9907                     Diners                       4,219           $1.279 billion
              Total Secondary Market                      39,377         $12.554 billion

Opening this market further is the wide number of other companies that are well known
to include carry-out food items as secondary product lines.
    SIC                      Industry                  Companies         Annual Sales
5411-02                 Convenience Stores               61,778           $62.259 billion
5541                        Gas Stations                 67,053          $115.193 billion
               Total Tertiary Market                    128,831          $177.452 billion
Sources: U.S. Bureau of the Census and ZapData
                                   Potential User Base
                                           Of
                          The Ketchup Holder
Potential users of the Ketchup Holder should also be examined, not only to identify their
needs, but to exemplify the potential of this new product and its desire by a large and
largely-spending consumer group.

                     U.S. Consumers of
        Applicable Food and Beverage Establishments
                                By Demographic Share
                                           Fast-Food, Take-Out and Concessionaires
                                         Breakfast          Lunch          Dinner
                                           By Age
             Under 25                      5.77 %           4.75 %          5.25 %
             25 to 34                     21.44 %          22.41 %         22.08 %
             35 to 44                     27.44 %          30.02 %         29.18 %
             45 to 54                     23.94 %          21.89 %         23.09 %
             55 to 64                     10.51 %           11.9 %         10.75 %
           65 and Older                    10.9 %           9.03 %          9.64 %
                                         By Income
            Under $15k                     9.73 %           8.85 %          9.01 %
            $15 to $25k                    9.41 %           7.61 %          8.92 %
           $25k to $35k                    10.7 %           9.98 %          9.94 %
           $35k to $50k                   16.86 %           15.2 %         15.61 %
           $50k to $75k                   24.55 %           24.7 %         23.64 %
          $75k to $100k                   13.19 %          12.61 %         13.04 %
            Over $100k                    15.57 %          21.04 %         19.83 %
                                        By Ethnicity
              White                       83.13 %          84.21 %         83.99 %
              Black                       11.18 %          10.27 %         10.65 %
             Hispanic                     12.95 %          10.63 %         10.73 %
              Other                        5.69 %           5.53 %          5.36 %
                                     By Household Type
      Married, No Children                23.47 %          24.67 %         23.75 %
     Married, With Children               33.97 %          38.01 %         37.14 %
          Single Parent                     9.8 %           9.01 %           8.9 %
              Other                       32.76 %          28.32 %         30.21 %
     Total Annual Spending             $10.36 billion $25.478 billion $43.959 billion

Sources: Third Wave Research, ZapData and Consumer Expenditure Surveys
                               Cost & Price Estimates
                                        For
                       The Ketchup Holder
All estimates for the possible costs and prices of a new, yet-to-be-manufactured item are
very difficult to estimate. This difficulty is due to potential variations in the costs of
initial materials, the rate of production for the item, and its initial consumer demand.
There could also be substantial variation in costs of different formats of the device. As a
result, these estimates are very difficult to comprise.
Moreover, research on estimated costs and prices is very restricted so as to avoid
improper disclosure of the Ketchup Holder while still in these beginning stages.
In order to provide further detailed information for consideration, however, such
estimates should be offered. The “Best Estimate” enclosed within is primarily based
upon pricing of similar products (when possible) by this applicable manufacturing
category, current cost of necessary materials, and average value added for the applicable
manufacturing industry.
These estimates are subject to change and are enclosed only to offer a preliminary means
of evaluation of product value for the Ketchup Holder. Of course only you, the
manufacturer, could properly determine the costs and prices.
The estimates on potential costs and prices for the Ketchup Holder in bulk production, as
in for restaurant use, throughout the line of distributors, could be:
                                 Low Range            Mid Range            High Range
Materials Cost                     $24.50               $29.50               $35.25
Manufacturer’s Cost                $41.50               $49.75               $59.75
Wholesale Price                    $71.25               $85.50              $107.00
Supplier’s Price                   $98.00              $118.00              $140.00

Please note: these broad estimates are based on packages of one thousand (1,000)
Ketchup Holder cartons of five-ounce (5 oz.) volume size, and does not include the costs
of any condiments or appendages to be placed within the storage units.
REMINDER: It is extremely important to remember that the above costs and prices are
only estimates. Actual costs and prices can only be determined by manufacturing
companies with a good understanding of their own production capabilities and by
suppliers and outlets, based on the final prices offered to them.

				
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