BUSINESS PLAN FOR RECRUNCH

Abstract

Food is a basic need of every human being, even all living beings. People consume foods as relieving hunger, to increase energy in the body, or to survive. Because of that, making food and beverage industry becomes promising industry in Indonesia. One kind of food that is quite popular in Indonesia nowadays is snack. This can be seen from the many brands and types of snacks in the market. Although food and beverage industry has a promising prospect, Indonesian traditional food is still unable to compete with international food in Indonesia. According to the Indonesian culinary expert, William Wongso (2015), people still identifies the Indonesian traditional food with unhygienic things. Director for Community Empowerment of Tourism Destination Ministry of Tourism, Oneng Setya Harini (2016), also said the issue of hygiene needs to be improved so that Indonesian traditional food can develop and compete well. In addition, the packaging also must be made attractive with competitive prices. With this, Recrunch aims to make a kind of food that is popular and improve Indonesian traditional food. Recrunch is a snack product that is made of rice without preservatives and inspired by Indonesian traditional snack “rengginang”. Although Recrunch is not the first product that brought this idea, Recrunch makes some innovations in order to be different from other competitors. This product consists of 7 flavors: chocolate, strawberry, rendang, curry, tom yum, chicken teriyaki, and pizza. The flavors have been selected because those are a famous food in some countries; Indonesia, India, Thailand, Japan, and Italy. Recrunch products will be packed with attractive and colorful packaging; packaged in a pillow-pouch with a different color packaging for each flavor. The target market of Recrunch products are teenagers aged 12-21 years old who live in big cities in Indonesia with price offered is quite affordable; Rp 14,000 for the savory flavor and Rp 16,000 for the sweet flavor. The places chosen to sell these products are retail stores, distributors/resellers and online (marketplace). Recrunch uses online and offline methods to promote these products, such as endorsement, giveaway and food exhibition. The production process of Recrunch is also always maintained and monitored so that the product will have a good quality. The total capital required to build this business is Rp 170,000,000 (one hundred seventy million rupiah). This capital will be used for building costs, marketing, production, and more. Recrunch has projected in the end of the first year with total gross sales Rp 533,020,000 and net profit Rp 71,255,800; these numbers will increase every year. The projected break-even point will be in 10 months with return of asset (ROA) amounting 32%, 52%, 44% and return of sales (ROS) amounting 14%, 28%, 30% for 3 years. With high return of asset (ROA) and return of sales (ROS) that always increase, it can be proved that Recrunch has no trouble on the finance side. In addition to the financial statement, this business plan also consists of milestones activities, assessment of risks and growth strategy for the future.