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Use the attached documents for instruction and guide to the paper. 

This Marketing Plan section is apart of a Business Plan, the sections is "Target Market and Segmentation"  Please see attached doc for business plan and further instruction and guide "Everything needed is in attached documents". All parts of the question MUST BE ANSWERED AND ****ORIGINAL WORK****.  This is a Business Plan on a Drone Fast Food Delivery System/Service. Must include ONLY recent (2013-2016) cited references, must be Graduate level writing and a minimum of 2-3 pages including any graphs/flow charts etc, APA format.





Introduction.........................................................................................................................Page 2


Industry Review..................................................................................................................Page 2


Regulation Review and Legal Concerns.............................................................................Page 4


Competitive Analysis..........................................................................................................Page 6


SWOT Analysis..................................................................................................................Page 8


Conclusion..........................................................................................................................Page 12


References..........................................................................................................................Page 14 Introduction


The Chow Chopper is a company that aims to deliver fresh food in minutes with care via state of


the art drone technology to the Portland, OR community. Currently, there are very few


companies offering food delivery via drones and both and Walmart are initializing


similar services in various cities. This company is different from competitors in that it will


specialize in the Portland locality and offer restaurants an option to deliver food faster than ever


before right to customer?s doorstep or to a location unreachable via car delivery. People want


their food fast and to get on with their day. The Chow Chopper is the solution. This on demand


delivery service provides customers fresh food in less than 30 minutes. Our drone delivery


service will deliver from local restaurants in an eco-friendly delivery container to your




designated delivery point within the Portland area. This gives our customer an eco-friendly


option to get their takeout rather than driving, saving our customers precious time, and


decreasing air pollution emissions. Chow Chopper is unique because it will be the first local


delivery service of its kind in the Portland area. Our delivery service caters to customers who are


environmentally conscious and want another resource for getting their breakfast, lunch or dinner


quick fast and in a hurry. Industry Review


Unmanned Aerial Vehicles, UAV?s, are about to change our lives. They are being used all


around the world. Some examples include, energy companies using them to inspect power lines


in the United Kingdom, Japanese farmers using them to spray crops, and the United Arab


Emirates is working on a prototype to deliver government documents [Gui15]. In the United


States, UAV?s are being used in a variety of industries from real estate to construction.


The first UAV created were mostly for the military. This industry required big budgets and


cutting edge specs. For instance, MQ-9 Reaper, which is a UAV used in battlefields, cost about


$12.5 million [Kay13]. The second UAV?s were created for children and hobbyists. This


industry had low budgets but enjoyed the advantages of using UAV?s [The16]. The UAV?s for


children and hobbyist prices ranged from $100 to $5,000 according to the level of technology


that the UAV was equipped. Both of these industries used some ideas in the advances of


technology to create both UAV?s for military and toys. The Chow Chopper is the drone we have


designed to deliver fresh food in minutes with care via state of the art drone technology to the


Portland, OR community. The cost for drone usage in delivering food is $50,000. The benefit 2 Page |3 CHOW CHOPPER INDUSTRY ANALYSIS


for starting the Chow Chopper Company is it has the advantage of being one of the first to enter


the market for this purpose. Currently we only have a dozen companies approved to operate


drones commercially in the United States resulting in low competition and the ability to acquire


more local businesses. This is a great opportunity for the Chow Chopper to set the standards for


food delivery via drone technology and establish a reputation in the industry that will inspire


others to follow. 3 Page |4 CHOW CHOPPER INDUSTRY ANALYSIS Regulation Review and Legal Concerns


For the business to operate the business must adhere to all the licensing policies from various


departments of the City of Portland and or State. The first we have to ensure that we register our


business with;


1. Office of Management & Finance Revenue Division will confirm and authorize us to


collect any city sales tax. So that we comply with all Portland City sales tax on food


and beverages we need to register our business in such. Everyone doing business in


Portland or Multnomah County is required to register. (Revenue Division ? Office of


Management & Finance ? the City of Portland)


Portland Bureau of Transportation (PBOT) for the following;


2. Parking Permits City Code 16.20.220; in order to designate specific locations around


the City of Portland to mark delivery locations our customers can pick up their food


delivery, we must adhere to PBOT Central City Plan District including any ordinance


restricting vending may not occur within 250 feet of any public library or park


grounds, any stadium or grounds. (Department of Transportation, The City of


Portland 2016)


3. Signs & Other Permits Title 32; Signs, A-Board and Banner; any signage, or


advertisement around the City of Portland we must file the appropriate permit request


through the Development Services Office and Portland Bureau of Transportation.


Despite the beauty associated with this modern day delivery system we intend to use, there are


also some challenges associated with the same. One of the limitations is with the Federal


Aviation Authority (FAA). The Federal Aviation Authority has made it mandatory to register




owned drones that is purchased and weighing over 55lbs. In addition, the FAA has enforced pilot


requirements including our pilots passing an initial aeronautical knowledge test at approved FAA


knowledge testing centers, they must also be verified by the Transportation Safety


Administration (TSA)


The complete list of requirements are as follows;


First-Time Pilot


To become a pilot you must: (Federal Aviation Administration ? Unmanned Aircraft Systems) Be at least 16 years old Be able to read, speak, write, and understand English (exceptions may be made if the


person is unable to meet one of these requirements for a medical reason, such as hearing


impairment) Be in a physical and mental condition to safely operate a small UAS Pass the initial aeronautical knowledge exam at an FAA-approved knowledge testing


center Pilot certificate Requirements Must be easily accessible by the remote pilot during all UAS operations Valid for 2 years ? certificate holders must pass a recurrent knowledge test every two


years Existing Pilots ? What to Expect


Eligibility: Must hold a pilot certificate issued under 14 CFR part 61 Must have completed a flight review within the previous 24 months Remote Pilot Certificate Requirements Must be easily accessible by the remote pilot during all UAS operations


5 Page |6 CHOW CHOPPER INDUSTRY ANALYSIS Valid for 2 years ? certificate holders must pass either a recurrent online training course


OR recurrent knowledge test every two years Other issues we may incur are our drones could be at risk in the hands of untrustworthy


customers who may damage them or hack their systems and use them to their advantage leading


to losses for the company. The introduction of drones in the market for food delivery will make it


possible for food to be delivered even to places where some road condition gets worse, and they


become impassable in inclement weather. They will also make it possible for food to be


delivered in much less time and help to avoid the compensation costs experienced earlier when


foods used to get cold on delivery by use of road transport. In conclusion, the use of drones to do


business will be the most efficient and reliable means for food delivery. Competitive Analysis


Direct Competitors


A complete competitive analysis shows that there are no direct competitors at this time.


Currently, in the Portland area there are no restaurants or fast food chains that provide drone


delivery as an option nor are there drone delivery businesses in this area. All the restaurants in


this area offer the standard dine in, carry-out and car delivery options which makes The Chow


Chopper a unique business opportunity. The world of unmanned aerial vehicles is improving


daily with drones that now come equipped with cameras and the ability to carry cargo (AlleyYoung, 2015). The companies currently testing and using drone delivery are limited to online


retail stores such as Amazon, Walmart and Google however that does not pertain to hot food


delivery (French, 2015). The UAV delivery services being offered by companies such as 6 Page |7 CHOW CHOPPER INDUSTRY ANALYSIS


Amazon are for items typically purchased on their website such as clothes or household goods


but not specifically for food. While Amazon is said to be ?experimenting with a restaurant


delivery service in Seattle? there is no evidence showing that they will use unmanned aerial


vehicles to do so (Demmitt, 2015). The restaurant industry has yet to fully embrace the concept


of drone food delivery which is why taking full advantage of UAV technology and cornering this


market in a small localized area such as Portland can be the start of a ground-breaking change for


the restaurant industry. Possibilities are endless and The Chow Chopper intends on tapping into


these prospects.


Indirect Competitors


Although there are currently no direct competitors in the food delivery market in terms of the use


of unmanned aerial vehicles, there are many driving delivery services that pose potential threats.


Companies such as Grubhub and UberEats provide delivery options to restaurants that do not


typically offer the option to deliver food orders. Customers can get their favorite foods from any


restaurant with the help of these delivery service companies. Though a relatively new concept,


companies like Grubhub are established and have been in use for a few years now. Currently,


Grubhub is the nation?s leader in online and mobile food ordering. They provide customers with


the ability to ?order directly from more than 44,000 takeout restaurants in over 1,000 U.S. cities?


which is why it is just as important to consider our indirect competitors as it is to consider our


direct competitors (, 2015). The Chow Chopper must differentiate itself amongst all


competitors alike and the best method to establish itself is by appealing to the customers? needs


and wants in regards to food delivery. One of the most difficult aspects with our new idea will be


transitioning customers, who are comfortable using Grubhub, UberEats or traditional driving


delivery services to using an unfamiliar option like drone delivery. People are hesitant when




trying new things therefore The Chow Chopper must demonstrate exactly how it will supersede


all other delivery options. Customers want quick service, low cost and good food with no hassle;


The Chow Chopper can provide all of this and more by removing delivery drivers and using


drones to get food to their customers quicker than ever. To win over customers The Chow


Chopper must outperform the current competition and prove that it is a reliable and efficient


delivery service. SWOT Analysis




Chow Chopper is uniquely suited to offer restaurants an option for food delivery that is unlike


any other currently offered. According to the NPD Group, the average customer purchases 127


meals annually at restaurants for consumption elsewhere, compared to 81 meals annually at a


restaurant[Nat15]. The percentage of adults who are likely to use delivery from a full service


restaurant ranges from 52-68% depending on how frequent they are restaurant patrons, and over


half of all consumers purchase takeout once a week or more, utilizing home delivery 45% of the


time [Nat15]. What this data tells us is that the market for restaurant delivery is strong and an


entrenched part of the way Americans consume restaurant food. Given that takeout and delivery


split the market relatively evenly, we want to capitalize on saving restaurants and customers time


between food preparation and consumption by using drones to take food immediately when


prepared to the customers? location. This reduces time from production to delivery by allowing


the company to send the food out immediately when the order is complete without hiring internal 8 Page |9 CHOW CHOPPER INDUSTRY ANALYSIS


delivery personnel. For end user customers, they get their food faster than if they went and


picked it up themselves.


Chow Chopper is a strong concept due to its revolutionary use of brand new drone technology to


reduce delivery time for restaurants and deliver food to a precise location marked by customers.


It specializes in restaurant delivery, thus focusing on providing the best service to local


restaurants in the Portland area, providing true local service, and adjusting to customer needs


quickly since we are designed specifically for this purpose. Our delivery isn?t a part of some


giant corporation, but a commitment to improving restaurant customer service.




There are weaknesses to conducting restaurant delivery via drones. Chow Chopper is a small


business serving the Portland area. Should growth opportunities arise quickly or large


companies take over market share, Chow Chopper may not have the capital to outpace that


growth. Additionally, delivery time is paramount to competing in this sector. If the company is


unable to provide delivery service faster than car delivery and/or cheaper, it will be difficult to


gain market share. A potential weakness is the pending and continual development of drone


regulations in localities and by the FAA for nationwide drone use. Any change in these results


unfavorable to this type of business and could be potentially disastrous. Another challenge is the


effect of weather on drone delivery systems and their navigational components, which is an area


that is still under development. Restaurants would have to adapt from having a person pick up


the order from the restaurant to an employee placing the order in a designated drone delivery


container. This requires training and even simple actions can present a barrier to hiring Chow


Chopper for their food delivery needs.






Chow Chopper is uniquely suited to take advantage of brand new drone technology and the


unveiling of new FAA regulations that allow for business use of drones. The restaurant delivery


business is a growing sector, and according to the National Restaurant Association (NRA) 2015


Restaurant Industry Forecast, America?s 365,000 independent restaurants sell about $70 billion


in takeout food a year, and the percentage of online orders continues to increase. Also, 3 in 5


consumers order delivery or takeout once a week [Nat15]. The food delivery service market is a


growing sector enabled by application technology that allows users to order food with their


cellphone for quick delivery. The biggest opportunity for a drone-based food delivery company


is the ability to deliver to remote locations and get food to the customer faster than a car could


while avoiding any effect of traffic on the time to deliver.




There are a number of competitors and large companies testing drone delivery systems, such as


UberEATS, Grubhub, and EAT24 to name a few [Don151]. Grubhub uses mobile application


technology to connect customers with a restaurant?s online ordering mechanism and contracts out


delivery to drivers. UberEATS uses its driver network that has been delivering people for years,


to swing by and pick up your takeout for you. As this sector develops and the legalities are


sorted out around drone technology, these companies will have the capital to invest in a drone


option and will likely seek to either contract drone delivery, which would benefit Chow Chopper


or directly compete in the drone takeout delivery business. Another potential threat is the


expansion of large companies planning to leverage drone delivery for their own products, such as, moving that ability into the restaurant delivery sector.




OTHER Drone delivery via the Chow Chopper would revolutionize restaurant food delivery by


offering takeout delivery faster than current methods to any location that can be set with a GPS-enabled device.


Obstacles to overcome to successfully operate include navigating FAA regulations,


finding an appropriate delivery vehicle, training restaurant staff to properly use the


delivery system, and the small scale of Chow Chopper restricts its operations to the Portland area.


Opportunities abound in the growing food delivery sector as more and more Americans eat restaurant food and are constantly seeking ways to save time.


Threats to the Chow Chopper can come from numerous large companies and the alreadyoperating car delivery services that provide online ordering and relatively fast delivery


via ground vehicle. RISK MANAGEMENT PLAN


Risk is inherent in any new endeavor and drone delivery is no exception. In fact, there are


numerous aspects of this business that must be taken into consideration. First, one must consider


the risk of success. What are the specific factors that must be planned for and maximize to


ensure Chow Chopper succeeds in this competitive market?


The possibility that drone food delivery will dramatically reduce delivery times for restaurant


food to customers is high. Given that, there are programs and processes that Chow Chopper can


put in place to increase the risk that their delivery is faster. These include an integrated


application that provides ordering and location services so that all orders arrive exactly where a


customer selects and a drone is dispatched immediately to the delivering facility.




Other risks exist that would negatively affect Chow Chopper, and they must be planned for and


mitigated. This could include FAA regulations that negatively impact our ability to do business.


Mitigation efforts will be undertaken to lobby the FAA for favorable laws, ensure a presence in


local government to provide drone operators perspective to any local ordinances, and to submit


waivers for any ruling that would curtail our operations. Additionally, employees must operate


drones within current guidelines, and because of this there is always a risk of FAA violations.


Chow Chopper will mitigate this through the use of a comprehensive training program and


annual reviews to test employees? knowledge of regulations.


Delivery errors could also negatively affect consumer satisfaction and must be reduced to the


maximum extent practical. The delivery application must be simple to operate and be


continually adapted to better suit the needs of customers.


Risk is inherent in any new venture, but with integrated planning solutions, and the ability to


adapt and overcome any obstacle, Chow Chopper can lead the charge in delivery efficiency. Conclusion


Chow Chopper is a revolutionary new concept, and one that brings with it the possibility for fast


delivery of restaurant food to the customer, no matter where they may be. With any new


technology, growing pains and challenges can be anticipated, planned for and risks of all types


mitigated through detailed analysis and execution. The restaurant delivery sector has undergone


rapid transformation since the advent of application-based order and delivery systems. Chow


Chopper is another step in that evolution, taking existing ordering technology and adding the


efficiency of drone delivery, effectively reducing delivery times and increasing the flexibility of 12 P a g e | 13 CHOW CHOPPER INDUSTRY ANALYSIS


current delivery systems. Of course, this company does not exist in a bubble and many


companies compete in this sector and will attempt to maximize their own market share. Anytime


a new idea is introduced, running with it is a risk. With Chow Chopper, success would


revolutionize food delivery and create a new standard for convenience and speed of delivery. References




Guillot, C. (2015). Drone's Eye View. Planning, 30-33.


Kay, R. (2013, December 4). Drawbacks of Delivery Drones May Outweight the Benefits.


Retrieved from Forbes:


The Drone Revolution is Coming. (2016). Trends Magazine, 17-23. Portland Bureau of Transportation, City of Portland ? Parking Permits ? City Code 16.20.220




Revenue Division, Office of Management & Finance ? The City of Portland ? New Business


Registration (


Unmanned Aircraft Systems ? Become a Pilot




Alley-Young, G. P. (2015). Drone (Unmanned aerial vehicle). Salem Press Encyclopedia,


French, S. (2015, December 15). Drone delivery is already here - and it works. Retrieved July


20, 2016, from


Demmitt, J. (2015, August 26). Amazon expands Prime Now into Portland, will deliver food


from local groceries. Retrieved July 20, 2016, from 14 P a g e | 15 CHOW CHOPPER INDUSTRY ANALYSIS


Overview. (2015). Retrieved July 20, 2016, from


Barnburry, D. (2015). Drones: Designed for Product Delivery. DMI .


Elzweig, B. (2015). Civilian Commercial Drones Are Coming; Are We Ready? Southern Law


Journal, 161-177.


Fenn, D. (2015, August 31). The (Almost) Complete Guide to Food Delivery Services.


Guth, D. J. (2016). Restaurants Take a Chance on Tech-Based Food Delivery. Crain's Cleveland


Business Vol. 37 Issue 10.


Logic Manager, Inc. (2016, July 17). Risk Assessment Template. Retrieved from Assessment Best


Practices and Free Download:


National Restaurant Association. (2014/2015). Takeout and Delivery. Restaurant, Food &


Beverage Market Research Handbook.


Wehrspann, J. (2015, April 21). What You Didn't Know About Drones. Farm Industry News


Exlusive Insight. 15 P a g e | 16 CHOW CHOPPER INDUSTRY ANALYSIS 16


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