Mr. Handy

Mr.Handy is a street snack business that combines foods and beverages in a unique and functional packaging. Street snack is ready-to-eat snack sold by hawkers in the public places or streets. This new type of snack is generally eaten between meals. Street snacks in Indonesia are adopted from Asian countries, such as Hong Kong, China, Japan, and Korea, which commonly sold in mall or shopping centers. Mr.Handy’s competitive advantages are Mr.Handy’s products that can be grasped with just one hand, practical, easy to carry, and sold at affordable prices. Foods offered are chicken fillet, chicken skin, french fries, and hashbrown, meanwhile for the beverages, Mr.Handy offers lemon tea and blackcurrant. Foods will be seasoned with Mr.Handy’s special seasonings. The growing snack business in Indonesia, especially Jakarta, becomes one of the backgrounds in choosing to start this business. There are some data that proves its growing, such as snacks sales increased by 10-15% in 2011 (Gabungan Pengusaha Makanan Minuman Indonesia), increased in snacks consumption by 7% in 2011 (Euromonitor), and also there is a new need for practicality (Nielsen). These data show management that there are chances to run Mr.Handy. In addition, management’s passion, business knowledge, and entrepreneurial capitals, are also strengthen management to run this business. The high level of competition requires Mr.Handy to have a competitive advantage. Management chooses ‘differentiation’ as Mr.Handy’s competitive strategy. This strategy is consistent with the broad target market, which is upper middle class, between 13 to 35 years old, and differentiation competitive advantage. Mr.Handy’s product’s differentiation lies in their food packaging because the packaging is specifically customized by the founders. The food packaging design has been registered to the HAKI, to increase the barriers to entry for competitors who want to imitate Mr.Handy’s product. Mr.Handy has opened the first outlet at West Food Court, Mal Artha Gading, North Jakarta, on July, 29th 2013. In the first year, Mr.Handy will focus on penetrating the market to build Mr.Handy’s brand awareness. In the following years, Mr.Handy will focus on developing products and implementing ‘Mr.Handy goes party’ program to anticipate market saturation. Mr.Handy will also developing the market if the results of the feasibility analysis is considered feasible. The initial investment required is Rp80.000.000,00, with a ROI of 68,19% in first year. Mr.Handy sets a goal to earn a net income of Rp54.555.832,00 in a year and a payback period analysis within 8,05 operating months. In five years running, the NPV of business is projected to reach Rp792.251.768,74, with an IRR of 91,67%.