FIVE-YEAR MARKETING PLAN
ICHIBAN SUSHI, LLC.

Table of Contents
1.0 Executive Summary ................................................................................................1
2.0 Company Description ..............................................................................................2
3.0 Strategic Focus and Plan .........................................................................................4
3.1 Mission ...........................................................................................................4 3.2 Goals ..............................................................................................................4 3.3 Core Competency ..........................................................................................5
4.0 Situation Analysis ...................................................................................................7 4.1 SWOT Analysis .............................................................................................7 4.2 Competitors in the market .............................................................................9 5.0 Product-Market Focus............................................................................................9 5.1 Marketing and Product Objectives ..............................................................10
5.2 Target Markets .............................................................................................10 5.3 Points of Difference .....................................................................................11 5.4 Positioning ...................................................................................................12
6.0 Marketing Program .............................................................................................12
6.1 Product Strategy...........................................................................................12
6.2 Target Market Strategy.................................................................................12 6.3 Advertising and Promotion. .........................................................................13
6.4 Word-of-Mouth / In- Restaurant Marketing.....................................................13
6.5 Sales Strategy................................................................................................14
7.0 Financial Plan and Data .........................................................................................15
Table: Forecast Sales ................................................................................16 Table: Balance Sheet ................................................................................17 Table: Cash Flow .....................................................................................18
8.0 Implementation Plan .............................................................................................19
9.0 Evaluation and Control ..........................................................................................19

1.0 Executive Summary

We, as business owners, have a financial commitment in the success of this restaurant. Our intent is to have a definitive business, financial, and marketing plan that not only serves our need for capital financing, but also is utilized as our daily business roadmap. We have taken all precautions to validate our business and financial models, focusing on realistic projections. We have accomplished this as follows:

(1). Our financial model is based on industry facts, not optimism. Ours costs are based on reality in the industry and practical experience with similar ventures. We have taken a collective look at all figures to make solid business estimates.

(2). Our business concept is “Everything is for our consumers”. We think customers’ satisfaction is the most important factor in our business. Instead of building up a business operation theory, our business is built to service demand derived from consumers.

(3). A buffered financial plan that ensures adequate capitalization. A contingency buffer is included in the start-up cost to ensure the business in not under financed, as well as giving the business adequate funding to sustain it in the first six months of startup.

(4). A solid Risk Mitigation Plan. We have evaluated traditional and non-traditional risks associated with Restaurant failure and accounted for them directly in the business plan. Instead of dismissing the risks, we have identified valid mitigation strategies for each.

Since the demand for healthy food such as Japanese sushi increased dramatically recently, Ichiban Sushi will improve the food quality at the same time cut down the costs in order to catch up with the market opportunity and compete with the closest competitor in the industry.

2.0 Company Description

Ichiban Sushi LLC., is a unique chain restaurant in the Japanese cuisine industry, which offers high quality food with reasonable price and decent dining environment. The restaurant has 3 special features over another Japanese restaurants: the environment, the food, and the operating hours.

The Environment

Most of the customers come to Ichiban Sushi because of the superior environment over other restaurants. The whole environment is quiet, not crowded, and with traditional Japanese music inside. All the decoration materials come from Japan, which can make the customers feel like that they are in Japan.

Every chain restaurant has a dining area more than 5,000 square feet and can provide seating for more than 200 patrons. In addition, parking is available, free and convenient.

The Food

Ichiban Sushi is focused on servicing traditional Japanese food, such as Kaiseki Cuisine. The food materials as well as the dressing are fresh, originally from Japan.

The restaurant offers customers variety, offering multiple dining and entertainment options within a single establishment. There is a special section on the menu that customers can customize what kind of food they want to order. This special menu division will broaden our appeal and meet our customers’ demand on every visit.

The Operating Hours

Our restaurant only opens from 4:00 PM to 11:00 PM, seven days a week, and only services dinner. Running just 7 hours a day can reduce unnecessary labor cost.

3.0 Strategic Focus and Plan

This section covers three aspects of corporate strategy that influence the marketing plan: (1) the mission, (2) goals, and (3) core competence of Ichiban Sushi.

3.1 Mission

Ichiban Sushi will be a palatable restaurant, combining excellent atmosphere and delicious food. The mission is to have not only a great food selection, but also efficient and superior service. Customer satisfaction is our paramount objective.

Ichiban Sushi will be the best restaurant which has comparatively high reputation among white-collars or gold-collars.

Employee welfare, participation, and training are equally important to our success. Everyone is treated fairly and with the utmost respect. Our employees will feel a part of the success of Ichiban Sushi.

3.2 Goals

Ichiban Sushi’s objectives for the next five years of operation include:

• Keeping food costs at less than 35% of revenue. • Improving our Gross Margin since Year 1. • Keeping employee labor cost between 37-39% of total sales. • Remaining a large, high-end chain restaurant with high quality food and service. • Averaging sales between $1,200,000 - 1,500,000 per year. • Promoting and expanding the Ichiban Sushi restaurant concept in the area. • Expanding our marketing and advertising in the United States and in the neighboring suburbs to increase our customer base. • Achieving a profitable investment return for investors for Years 2 - 5.

3.3 Core Competence

(1). Unique Dining Environment: The creation of a exotic and fine dining atmosphere will differentiate us from the competition. The restaurant will stand out from the other restaurants in the area because of the unique design and decor.

(2). Product quality: Great food, great service. Every employee has to be able to speak both English and Japanese, and be trained strictly at least one month before they can work independently.

(3). “Do-It-Yourself Menu”: The menu will appeal to a wide and varied clientele. Customers can customize our menu features regional specialties according to their thoughts. For example, a customer from Thailand likes spicy sashimi and we can provide the customer with spicy dressing.

(4). Employee Retention Focus: Employee retention and development programs will be a primary focus and success platform for this business. Through these programs, we will be able to draw seasoned and elite professionals and build a committed work force. We have budgeted for a stock option program to subsidize a lower salary base. This lowers our immediate overhead and attracts quality staff.

(5). Cost Control Focus: We will control costs at all times, without exception. Cost Control will be an integrated function of the restaurant from the onset. Cost control is about managing the numbers - interpreting and comparing the numbers that impact the bottom line. 80 percent of the success of a restaurant is determined before it opens. Our focus is to reduce the cost of goods sold as well as the labor cost to meet our profit margin goals by managing the following crucial elements of cost: Purchasing, Receiving, Storage, Issuing Inventory, Rough Preparation, Service Preparation, Portioning, Order Taking, Cash Receipts, Bank Deposits and Accounts Payable. We will use of this business plan to track actual costs against our forecasts in managing the business.

Due to intense competition and the increasing passion for Asian cuisine in the market, we must look for ways to differentiate their business to achieve and maintain a competitive advantage. We are going to expand our business to another regions and do more research on American customers' eating habit, taste as well as the consuming ability.

4.0 Situation Analysis

This situation analysis starts with a snapshot of the current environment in which Ichiban Sushi finds itself by providing a brief SWOT (strength, weaknesses, opportunities, threats) analysis. After this overview, the analysis probes ever-finer levels of detail in competitors.

4.1 SWOT Analysis

Figure 1 shows the internal and external factors affecting the market opportunities for Ichiban Sushi. In the company’s favor internally are its strengths of an superior environment, excellent food, and reasonable price. Favorable external opportunities include the increasing appeal of Japanese food, the strength of the upscale market for the company’s products, and the good catching of American customers’ consuming habit.

Figure 1. SWOT Analysis for Ichiban Sushi
|Internal Factors |Strengths |Weaknesses |
|Environment |Large, superior, and luxurious decoration |High cost of decoration materials |
|Offerings |Unique, delicious, high-quality, reasonable |Many lower-quality, lower-price competitors in the |
| |price products |industry |
|Personnel |Good work force, little turnover, employee |Due to the tough one-month training, there will be a|
| |loyalty |huge gap if an employee leaves |
|Finance |Excellent growth in sales revenues |Profit margin is not high enough |

Figure 1. SWOT Analysis for Ichiban Sushi (continued)
|Eternal Factors |Opportunities |Threats |
|Consumer |Upscale market, stable; Fast-growing desire |Comparative high price limit the consumer group. |
| |for Japanese food | |
|Competitive |Expand brand awareness |More and more competitors want to enter the market. |
|Economic |Consumer income is high and they are willing |High food material costs lower down the net |
| |to pay higher price for Japanese cuisine. |operating income |

Among the unfavorable factors, the main weakness is the high food material costs relative to its competitors in terms of the depth of the available finance resources, variable products and personnel. Threats include the danger that high price would limit the total number of customers come to the restaurant and the competition from another competitors.

4.2 Competitors in the Market

The expected sales of the Japanese cuisine market are over $1 billion annually. On average, consumers order five to seven servings and spend $100 in Ichiban Sushi each time. The main competitor in the local market is Pacific Ocean. This restaurant has grown in popularity over the years, and has gained popularity among the local residents. The average price is much lower than Ichiban Sushi, thus, it can attract more customers and the group of people are not just limited to white-collars and gold-collars. Blue-collars as well as college students also like to dine in the restaurant. However, since Pacific Ocean only has 3,000 square feet, it is smaller, and crowded than Ichiban Sushi.

5.0 Product-Market Focus

This section describes the five-year marketing and product objectives for Ichiban Sushi and the target markets, points of difference, and the positioning of Ichiban Sushi.

5.1 Marketing and Product Objectives

Ichiban Sushi's marketing intent is to take full advantage of its brand potential while increasing sales revenue and cutting down the costs. These are detailed in four areas below:

• Current markets. Current markets will be grown by expanding brand awareness, sales volume and repeat purchases in the industry. • New market group of people. Ichiban Sushi will attract more customer groups such as blue-collars if the restaurant lowers the price. • Food service. Food service will include all of the traditional Japanese cuisine and sauces. Sales are expected to increase by 20 percent at the end of the first year. • New products. Ichiban Sushi will expand its current existing product lines into new ones, according to the research of American customers’ consuming habit.

5.2 Target Market

Ichiban Sushi intends to cater to a wide customer base. We want everyone to feel welcome and entertained. We have defined the following groups as targeted segments that contribute to our growth projections: • The Business Person • Couples • High-End Singles

These particular market segments are 25-45 years old, have disposable income, and are seeking upscale, trendy, and comfortable restaurant options. They are likely to spend more on experiences they perceive as unique, cosmopolitan, and sophisticated. They are also the most open to trying something new, foodwise, and will embrace our fusion cuisine.

5.3 Points of Difference

The "points of difference" makes Ichiban Sushi unique relative to competitors fall into two important areas:

• Unique taste and convenience. No known existing competitors can offer high quality Japanese food that raw materials are directly from Japan. Products sold in Ichiban Sushi are well-prepared. • Taste trends. Healthy food which contains enough nutrition but low calories is quite popular in the United States.

5.4 Positioning

Ichiban Sushi will position itself as a high-end and luxurious restaurant in the market. When mentioning about Ichiban Sushi, “high quality food”, “an authentic Japanese cuisine restaurant “ as well as “tasting” will come into consumer's minds.

6.0 Marketing Program

6.1 Product Strategy

Ichiban Sushi’s product strategy will focus on Japanese food. The menu will cover all of the Japanese flavors. Normal dining will have Appetizer and Entrée selection, and special items after dining. We also offer alcohol listing, such as Japanese Sake.

6.2 Target Market Segment Strategy

The Business Person: They work hard all day and often stay overnight in a strange city. They need a competent establishment that helps impress clients and prospects. Afterwards, they want to relax and use the money they are making (or is expensed by their company). They spend the most on drinks, food and tips. Ichiban Sushi’s cosmopolitan flair and comfortable atmosphere will be perfect for sophisticated business people.
Couples: The restaurant will have an intimate, romantic, enticing adult atmosphere that suggests “date”. Ichiban Sushi will be the best date location.
High-end Singles: We will attract them with our comfortable atmosphere and layout. Our excellent food and service will confirm them the feeling of being in a foreign country.

6.3 Advertising and Promotion

Our advertising plan and promotion aimed at business people, singles and couples directly through local publications such as newspapers, newsletters and public announcements. Consumers can get coupons through printed materials and will be encouraged to visit our website to have a look at the flash media introduction that highlights the restaurant, past happenings, upcoming events and our dynamic menu. Management recognizes the key to success at this time of initial opening is extensive media promotion. This must be done aggressively in order to accomplish our service goals.

6.4 Word-of-mouth/In-Restaurant Marketing

• Restaurant Night: Every first Monday of the quarter, we will have a special evening for restaurant people. A perfect night for the local area’s restaurant owners, chefs and staff to get together to discuss the market and food trends. • Monthly Dating Connection: With the increasing appeal of Internet and speed dating, the restaurant will offer a monthly dating night. Customers can get extra food and beverages under the romantic dining environment. • Brochures: Make a brochure, containing interior pictures of our restaurant, menus and prices.

6.5 Sales Strategy

Ichiban Sushi’s sales strategy requires consistently high quality food, service, speed, and atmosphere. We can accomplish this by:

• Hiring employees who genuinely enjoy their jobs and appreciate unique offerings • Continually assessing the quality of all aspects mentioned above, and immediately addressing any problems • Interacting with our customers personally, so they know that their feedback goes directly to the owners • Evaluating food choices for popularity, and keeping favorites on the menu as we rotate seasonal foods and specials

7.0 Financial Plan and Data

The Financial Plan includes: • Sales Forecast • Cash Flow Statement • Balance Sheet

Five-year Sales Forecast for Ichiban Sushi, LLC. shows below:

Table: Sales Forecast
|Sales |Year 1 |Year 2 |Year 3 |Year 4 |Year 5 |
|Total Sales |$1,073,769 |$1,211,088 |$1,279,204 |$1,341,260 |$1,406,670 |
|Total Cost of |$298,758 |$322,240 |$329,289 |$336,048 |$342,762 |
|Sales: Food | | | | | |
|Total Cost of |$72,657 |$76,167 |$77,687 |$79,228 |$80,835 |
|Beverages | | | | | |
|Direct Cost of |$371,416 |$398,407 |$406,976 |$415,276 |$423,597 |
|Sales | | | | | |

Table: Balance Sheet
|Assets |Year 1 |Year 2 |Year 3 |Year 4 |Year 5 |
|Cash |$172,276 |$189,815 |$236,095 |$322,479 |$441,206 |
|Inventory |$37,839 |$39,175 |$38,109 |$38,843 |$39,608 |
|Other Current Assets |$73,311 |$73,311 |$73,311 |$73,311 |$73,311 |
|Total Current Assets |$283,426 |$302,300 |$347,514 |$434,633 |$554,125 |
|Long-term Assets |$65,000 |$65,000 |$65,000 |$65,000 |$65,000 |
|Accumulated Depreciation |$6,500 |$13,000 |$19,500 |$26,000 |$32,500 |
|Total Long-term Assets |$58,500 |$52,000 |$45,500 |$39,000 |$32,500 |
|Total Assets |$341,926 |$354,300 |$393,014 |$473,633 |$586,625 |
|Liabilities and Capital |Year 1 |Year 2 |Year 3 |Year 4 |Year 5 |
|Accounts Payable |$58,194 |$59,713 |$61,398 |$63,097 |$65,315 |
|Long-term Liabilities |$252,228 |$204,456 |$156,684 |$108,912 |$61,140 |
|Total Liabilities |$310,422 |$264,169 |$218,082 |$172,009 |$126,455 |
|Paid-in Capital |$440,000 |$440,000 |$440,000 |$440,000 |$440,000 |
|Retained Earnings |($427,209) |($428,496) |($359,869) |($275,068) |($153,375) |
|Earnings |$18,712 |$78,628 |$94,801 |$136,692 |$173,546 |
|Total Capital |$31,504 |$90,131 |$174,932 |$301,625 |$460,171 |
|Total Liabilities and |$341,926 |$354,300 |$393,014 |$473,633 |$586,625 |
|Capital | | | | | |
|Net Worth |$31,504 |$90,131 |$174,932 |$301,625 |$460,171 |
|Sales |Year 1 |Year 2 |Year 3 |Year 4 |Year 5 |
|Cash Sales |$1,073,769 |$1,211,088 |$1,279,204 |$1,341,260 |$1,406,670 |
|Cash Spending |$298,758 |$400,788 |$429,828 |$431,128 |$432,728 |
|Bill Payments |$601,114 |$724,989 |$745,324 |$765,976 |$792,442 |
|Spent on Operations|$1,000,702 |$1,125,777 |$1,175,152 |$1,197,104 |$1,225,170 |
|Long-term |$47,772 |$47,772 |$47,772 |$47,772 |$47,772 |
|Liabilities | | | | | |
|Principal Repayment| | | | | |
|Cash Spent |$1,048,474 |$1,193,549 |$1,232,924 |$1,254,876 |$1,287,942 |
|Net Cash Flow |$25,295 |$17,539 |$46,280 |$86,384 |$118,727 |
|Cash Balance |$172,276 |$189,815 |$236,095 |$322,479 |$441,206 |

Table: Cash Flow

8.0 Implementation Plan

The strength of our management staff positions us for success. We have assembled a team that embraces different disciplines, accomplished professionals with expertise in all areas of the business, including marketing and restaurant management.

9.0 Evaluation and Control

We are committed to our concept and its viability. We step into this venture with confidence and the success of our respective prior business efforts. In the event that our venture cannot achieve profitability and retire the encumbrances, we will first attempt to sell the operation and use the proceeds to clear all outstanding balances.