Luke and Olivia have returned from a vacation to Mexico which was a graduation present from their parents. They were both sucessful in pursuing a BSc in International Relations from the University of the West Indies and are now exploring their career options in light of a depressed economy and limited job options. They have always had an interest in culinary and hertiage tourism as well as cultural immersive experiences and during their recent trip they participated in exciting activities such as zip lining, cave diving and exploring Mayan ruins. They enjoyed authenic Mexican cuisine such as Tacos, empanadas, tamales, enchiladas, mole (traditional sauces ) carne adovada ( marinated meat) and birria(spicy goat stew) among others. As a result they gained an awareness that Mexican cuisine embraced a heritage dedicated to maintaining Mexicos indigenous customs and cultural traditions and that authentic Mexican food is derived from a combination of ancient Aztec, Mayan and Spanish traditions. They think there is a gap in the current foodmarket for Mexican cuisine and belive they can launch a business enterprise that caters to this need. They have conceptualized their business venture would be a mobile food truck that will serve Mexican cuisine with a local twist and offer a Trini-Mex experience. They decide to explore this idea and have conducted research to determine if there is a business opportunity in this area. Research Findings The Local Food Sector of Trinidad & Tobago Luke and Olivia did not have the financial resources to undertake primary research so they relied mainly on observation and secondary research. Their main findings are as follows: There is a diverse culinary and social culture in Trinidad and Tobago due to its history and varied ethnic groups present on the island. Indeed, the country has often been described as a melting pot and has seen an explosion on the local food landscape with food offerings featuring East Indian, Chinese, Arabic/Middle Eastern, African, Thai and fast food options. Food businesses on the market have been recently considering health conscious people and there has also been a consistent expansion of the food sector for the last 2-3 years which is positive. Quick and on the go although traditional dining is still a favourite among customers there is a growing preference for grab and go meals after a hectic day of work. As a result, they turn to food trucks, or other fast food outlets. Mobile Applications and Social Media Marketing Food outlets such as Wrap Works and Pita Pit have Apps to connect with their customers. These applications allow their customers to earn reward points for purchases and builds loyalty. There is also an increased reliance on Social Media platforms such as Instagram and Facebook to advertise, connect and communicate with customers. There are five direct competitors that exist which offer similar products and services to the Trini-Mex brand. These are competitors are Maco Taco, Seor Taco, WrapWorks Deli, Mr. Rango, and Chimichanga. The advantages of these competitors are their strong brand in the marketplace, loyal

customer base, experience in operations and good locations. Some identified weakness includes limited menu options, mixed quality and long customer serve times. The indirect competitors of Trini-Mex are those businesses that offer Mexican meal options for customers. These outlets are TGI Fridays, Ruby Tuesdays, Zanzibar, Woodford Caf, Toppers, and Trotters. Some Mexican food items that these indirect competitors offer include quesadillas, salads, burritos, burrito bowls and desserts. The meals of these competitors are much higher in price compared to the direct competitors and they offer a dine in customer experience. Trini-Mex Business Concept Luke and Olivia have decided to establish a mobile food truck called Trini-Mex based on the research they have undertaken. They believe there is a good opportunity to exploit the current growth in the food industry and the customer appreciation for interesting cuisine. They are proposing to configure a mobile food truck branded Trini- Mex in brilliant red and yellow colours and is considering the following: Trini-Mex will be a new and innovative concept in the mobile food truck market and the menu features five delicious items- tacos, burritos, quesadillas, salads and dessert churros. The cuisine will consist of an exciting infusion between Mexican dishes that are seasoned and served with Trinidadian flair, passion and vibe. The competitive advantage will be the creation of signature sauces that would incorporate local fruits such as tamarind, mangoes, pommecytheres, pineapples and sour cherries to add to the MexicanTrini culture theme. The customers will have the option of vegetarian, chicken or beef and for the seafood lovers, fish or shrimp. These menu items afford customers a quick and stress free service experience as it reduces the possible waiting times customers are exposed to at other competitive locations. Since the siblings are based in South Trinidad the proposed location of the Trini-Mex will be along the Cross Crossing eating strip opposite SAPA (Southern Academy of the Performing Arts). This location has 4 food trucks they noted but the food being served is mainly East Indian, Creole, Chinese and Burgers/Hotdogs. Trini-Mex will have an advantage when it comes to attracting customers with these new items they reason. Furthermore, the mobility of the truck will also allow them to be present at events in the southern area such as Upmarket in Naparima College, the Southern Games, food festivals, Carnival fetes etc Trini-Mex will have a mobile application where customers can follow to get notifications of locations and earn customer rewards points as a strategic promotional strategy for the business. Customers can also place their orders from the App. Other promotional activities will include using social media marketing via Facebook, Instagram, Twitter and Snap Chat and offering meal specials and combos at discounted prices on different days. For an experiential marketing experience, they plan to have giveaways on a random day as well as party games, where customers can win prizes and meal discounts. One of the games is Spin the Wheel where a customer will be allowed to spin the wheel and win a free purchase or a discounted offer. They are further thinking to approach celebrities such as Sunny Bling and Jason Williams, otherwise known as JW and Ancil Isaac also known as Blaze who have a large following on social media and listenership on the airways to endorse the meals or take pictures eating the delicious menu items. They have heard that Social media marketing is mainly free so they are not too concerned about their marketing budget. The average price of the menu items ranges from $45 -$75 for a taco, $35-$75 for one salad, $75.- $130. for a burrito, $50.-$95. for a quesadillas and $45 for three dessert churros. The price range has this variance due to the choices of fillings. These prices are in line with what they have seen from their competitors menu items but have been slightly increased since they have incorporated a Trini-Mex twist. While the siblings enjoyed the Mexican cuisine they are not trained in culinary arts so they have decided they will follow renowned Mexican Chefs/Food Bloggers such as Aaron Sanchez and Christo Peron and will immerse themselves in Cooking shows and You Tube Videos to gain more knowledge in this area. They plan to connect with the Mexican Embassy in Port-of-Spain to see if they can source a short order chef or any other resources for them at minimal cost since they estimate it will cost them TT $560,000.00 to start Trini-Mex. They are excited about their unique business concept and are ready to take the Southern market by storm with their Trini-Mex experience.

Questions: 1. Outline a stress test approach that you would undertake to evaluate the business concept of Trini-Mex (20 marks)

2. Luke and Olivia have decided that they would launch Trini-Mex. Describe two (2) problems or challenges that they would face and suggest strategies they can utilize to to ensure the success of this new business enterprise. (20 marks)