This article gives a fully complete product proposal template totally for free. This product proposal template can be used by students in order to figure out their own product proposal. This product proposal example is about a sandwich vending machine that brings about some changes to classical vending machines. The product proposal sample is given below;
Product Proposal Template Memorandum
To: Bill Carrager
From: Matthew More
Subject: New Product “Sandwich Vending Machine”
In order to respond to your request, we have made research on a product named Sandwich Machine that will bring a new breath of fresh air to the ordinary vending machines. Sandwich Machine is a practical, easy to use and innovative portable vending machine that makes fresh sandwiches based on the customers’ tastes. The machine offers a high variety of ingredients to the customers. It puts up all the ingredients chosen by the users together and serves both hot and cold sandwiches in a practical way, which is the most impressive property of the product.
Sandwiches are one of the most preferred fast-foods and in most cases people wait in queues to buy sandwiches and thus buying a sandwich becomes a time burden for the customers. Sandwich Machine is a hand and practical way of buying sandwiches compared to sandwich shops, so we expect Sandwich Machine to be a very profitable business operation for us in the ever-growing food market.
This product proposal will be giving information about Sandwich Machine based on the following headings: Features, functions, target customers, benefits, profit margins, cost analysis, market analysis and distribution channels.
Product Proposal Example Features
The features of the machine will be told in the following headings: Touch screen, fresh-keeping system, cooling system, glass-covered display area, storage for bread and ingredients, electrical-supply delivery system and microwave. This part is probably one of the most important parts of this product proposal template.
Touch screen panel is located in upper-right corner of the machine. The panel is 3 cm thick with 15 cm in size and 20 cm width. Basically the customer selects the preferred ingredients of the sandwiches by tapping on the name of the ingredient. The screen has white colored monitor with black borders. When the customer taps on the preferred ingredient, the name of the ingredient turns to red.
The aim of the system is keeping vegetables fresh all the time. Therefore, it is located behind of the machine’s storage unit for the vegetables. The system consists of a 3-holed black rectangle unit where it releases air. It also contains a fan and 2 small tubes full of potassium mineral.
The cooling system is located under the machine. It is 15cm in size and it has 4 cooling fans, 2 in the left side, and 2 in the right side.
Glass-Covered Display Area:
The display area is covered by an anti-heat glass with sizes 4cm thickness, 30cm in length, 40cm width. The glass is covered by Solar Gard Windows Films so it does not get broken.
Storage for Bread and Ingredients:
The storage is located under the machine and above cooling system. The storage is 100cm in length and 100cm in width. The storage also contains the cooling system and fresh-keeping system in it.
Electrical Supply Delivery System:
The system is designed as a combination of a rail system and a human hand which is metallic gray colored and iron-chromium covered stainless steel. The total volume of the hand-shaped carrier is 95cm3 and it weights 2.3kg.
Microwave (Heating System)
The heating system can only be activated if the customer prefers a hot sandwich instead of a cold sandwich. The system is located in the display area and uses the glass as cover for the microwave. The dimensions of the heating system are 30 cm in length, 40 cm width and 40 cm depth.
Product Proposal Sample Functions
The functions of the machine will be told in the following headings: Touch screen, fresh-keeping system, cooling system, glass-covered display area, storage for bread and ingredients, electrical-supply delivery system and microwave.
The ingredients of the sandwich are displayed on the touch screen which is placed on the right-top of the machine. The users of the machine select the ingredients that they want in their sandwiches. When they touch on the name of the ingredient, the name of the ingredient changes its color. Firstly, the customer chooses all the ingredients of the sandwich and whether he wants his sandwich hot or cold. While choosing the ingredients, the machine calculates the total cost of the sandwich simultaneously.
If the user taps on a ingredient by mistake and wants the ingredient to be deleted from his choices, he taps on the name of the chosen ingredient again and the ingredient is deleted from his choices. The same procedure is applied for the hot/cold option as well. After choosing all the ingredients and the hot/cold option, the user taps on “OKAY”, on the touch screen and the machine lists the ingredients and the price on a pop-up screen and asks the user to pay the price.
This system takes care of the ingredients of the sandwich. Vegetables excrete some gases that spoil them. This spoiling process can be overcome by using potassium minerals. Fresh-keeping system releases potassium minerals to the storage unit where the ingredients are kept and thus it keeps the ingredients fresh for a long period of time.
Fresh-keeping system is a cooling system that keeps the sandwich breads in the needed heat levels. The system keeps the breads at 22 Celsius degrees which is the level of heat that the breads can be kept longer without spoiling. The fresh-keeping system blows air into each shelf in the storage unit of the machine so that it keeps the whole storage unit at the same heat level and decreases the spoiling time for the bread.
Glass-Covered Display Area
The preparation process of the sandwich is shown to the user by the machine. The place where the machine prepares the sandwich is covered by a transparent glass and the customer can see the ongoing process. The baking area is placed in the left-top part of the machine. Anti-heat glass is used for this area which does not get hot as the sandwich is being heated and thus it provides security for the users. This anti-heat glass is used to prevent the cases of touching the hot glass and getting hurt.
Storage for Bread and Ingredients
The bread and the ingredients for the sandwiches are stored in the machine. The storage of the machine is placed at the bottom and the back parts of the machine. It is needed to maximize the storage capacity of the machine and the back part is used for this purpose and also by using the back part as storage, we aim to minimize the height of the machine as it can aggravate the usage of the machine.
Electrical Supply Delivery System
This system is used for the delivery of ingredients and the sandwich. It is a single-track rail system that works from the storage to the display area. As the user chooses the ingredients of the sandwich, the delivery system brings the sandwich bread and the ingredients from the storage unit to the display area where the sandwich is being prepared. The delivery system includes a hand-shaped carrier which places the ingredients that are brought by the single-track rail system on the sandwich.
Microwave (Heating System)
Heating system provides us to serve hot sandwiches. Heating system is located inside the display area. It warms up the sandwiches to the optimum heat in 20 seconds. The logic of the heating system is same as an ordinary microwave oven. Target Customers
This part of the product proposal template focuses on target customers of the product.
By this sandwich machine, it is possible to reach a high variety of customers. Our target areas are schools, universities, airports, gas stations, stadiums and malls. There won‘t be any security problems in these areas and we can increase our sales in these type of areas. These areas are crowded, so our company can increase sales smoothly. We will make our advertisements effortlessly. This is beneficial for our company, because we will not put much effort in advertising.
You can click for an example tok essay
Benefits for Customers
The benefits of the product that is aimed to be produced is underlined in this part of the product proposal template.
By this sandwich machine, we would like to serve, quick, delicious and healthy sandwich for our customers. Also, they have opportunity to prepare their own sandwich which is something new and innovative for customers. Customers can prepare their own sandwich according to their wishes. Customers will be able to see preparation of their sandwich, so it would be more healthy and trustable for them. The benefits of the sandwich machine for the customers can be listed as below:
- Healthy and trustable
- No time waste
- Easy access to sandwich
- Low Prices
- Option of paying in cash or credit card.
Benefits for Our Company
This sandwich machine can be placed anywhere that has electricity. It will be useful to put this machine to crowded areas, because this implementation will increase our revenue and by this way it is possible to reach every people. The benefits for our company are listed below;
- Minimizes utility expenses
- Assigns less workers
- Returns Profit
- Provides reputation for our company
Benefits for Manufacturer
This vending machine is not hard to produce for the manufacturer, because our sandwich machine would be similar with other vending machines. Putting the sandwich machine in crowded areas would provide free advertisement for the manufacturer. The other benefits for the manufacturer can be listed as below:
- Simple production
- Provides free advertisement
Properly placed and regularly working SVM can produce 400 sandwiches with full capacity. And it can provide average %100 profit margin. Average SVM can sell 200 sandwiches per day. It means that 500 – 600 TL profit per day. It will cover up all of its cost averagely ten days.
|SVM Machine’s Possible Costs||Possible Cost||Selling Prices|
|SVM Machine||2000 TL||–|
|Rent Pay For Place||1000 TL (Average)||–|
|Average Cost Of a Sandwich||3 TL||5-7 TL|
|Full Capacity SVM’s (400 Sandwiches)||1200 TL (Average)||2400 TL (Average)|
In our research, we found out that the basic vending machines cost 2.000 TL and costs another 500 TL to put the machine in desired locations, except for airports, for which rent is 1.000 TL. For maintenance costs; if the hardware malfunctions the repair cost will be 500 TL, if the cooler malfunctions, the repair cost will be 750 TL. However, the machines have 3 year guarantee period which means all of the malfunctions will be free within given time period. In addition the salaries for workers will be 3.000 TL and there will be 2 workers per 10 machines who are responsible with refilling, collecting income, and delivering the machines.
As for the ingredients; the normal bread costs 3 TL per 7 loaves, as for whole-wheat bread; it is 4 TL for 7 loaves. For meat section salami costs 20 TL per kilo, while pepperoni costs 40 TL, sausage costs 15 TL, and 40 TL for ham. For the vegetables; lettuce costs 2 TL, cucumber costs 1 TL, and corn costs 1 TL. Finally, the cost analysis for the sauces is a bit different from the costs listed above. Until this point, except for the vending machine, all of the products are made by domestic brands. In the sauces, barbecue and honey mustard are foreign brands, therefore, these sauces costs more than other sauces, ketchup and mayonnaise. Barbecue sauce costs 20 TL per kilo and honey mustard costs 30 TL, while ketchup costs 3 TL.
This part of the product proposal template analyzes the market for the product.
Since technology is one of the most demanded elements when it comes to analyzing the things that make our lives simpler and better it is possible to see that new inventions are welcome in new markets. By bringing simple yet useful technology and the food market together the sandwich vending machine is expected to fit this market smoothly. Growing rate of malls and such places also contribute to the profitability of the product. The vending machine can be planted anywhere ranging from public shopping areas to movie theatres and educational grounds. One of the key success factors is the fact that it can be used anywhere and anytime easily, which makes it the perfect product to generate profits. This property of the machine allows the manufacturer to have a very wide spectrum of possible target areas. Since food is one of the most vital matters of human life combining it with simple and brilliant technology is a smart and innovative strategy.
The properties that make it easier and more efficient to distribute the vending machine are given in this part of the product proposal template and they include:
- Production is highly standardized and simple,
- By demand production eliminates unwanted issues,
- The product is designed as a whole one piece product,
- It does not require any special equipment to be carried.
These properties also make the product distributable in various ways depending on where the drop zone is. If the target customer is currently on another continent or considerably far away the shipment will be sent by:
- Sea logistics or,
- Air logistics.
If the customer is at a closer area a much simpler way of logistics tool will be used which is land logistics.
Ingredient shipment process is also very simple; when ingredients are below a certain percentage the machine will notify the company’s storage facility and a team of two employees will deliver and refill the ingredients.
To conclude, we expect, in this product proposal template, the Sandwich Machine to be a very profitable business operation for our company. As shown in the cost analysis and market analysis parts shown in this product proposal sample, the machine will have a low cost of producing and it will be preferred by most customers in the ever-growing food market and thus it will be a very profitable product for us. The manufacturers will be very likely to choose our product as it can be produced simply since it is a modified version of existing vending machines. A broad market analysis and cost analysis is made for the product and we are ready to negotiate with manufacturers about Sandwich Machine. You can contact us from +57959552248 for everything about this product proposal template.
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