Introduction
Market study helps an entrepreneur to properly plan for his or her business plan. A review of existing business will quickly help an individual to grasp knowledge and identify any other gaps present to fill it. Further market analysis will help a potential entrepreneur to identify potential threats, how existing competitors behave and ways in which the entrepreneur can position himself or herself in the market to initiate profitability. While conducting a market study, the entrepreneur requires looking into a potential market and not the market being served so as to spot potential opportunities that requires his or her services. This paper will aim in conducting a market study within Vancouver Canada to gather information about the work ability of the existing restaurants. The information will assist in commencing anew restaurant that will serve great portfolio customers.
In this study I will divide the market into segments and choose two of the busiest restaurants within the city to collect vital information on the market. This will be followed by a market study that aims in studying behaviours of customers and the nature of existing competition. I will chose a sample size of 100 customers and interview them randomly to gather information about their views and identify the possibility of a gap. Conducting a study within the two restaurants will equip me with market trends. To study the behaviour of customers and restaurant service providers, I intend gather information on fast moving food such as pizza, catering operations, and breakfast and lunch services. The study will include competitor analysis, local neighbourhood, customer frequent Dinner loyaltyand fast moving food.
Competition analysis will involve recording information on the buying patterns .product offering study will entail studying food products, how they are served, the perception of the customers and their taste as well as preferences. In addition the management ability to perform effective marketing and business planning will be my key concern. Apart from the two chosen restaurants we intend to study other hotels within the study to grasp information about their service delivery, products and customer relations.
The opportunities and threats will be identified. Opportunities such as the recent growth of tourism industry within the town will be a forefront reasons to start up a classic restaurant that con handle all kinds of customers. Lack of stiff competition within the city and increasing popularity of restaurants which serve high quality products and services. Some threats which shall be considered while entering the market include lack of barriers to potential entrants. The existing freedom of entry by restaurants within the city has encouraged new competitors to come into the market. Further, bigger restaurants have outcompeted smaller ones due to large economies of scale and market share. Customers attend bigger restaurants than the existing ones. Other threats include recessionary pressures that have greatly reduced secured sources of credit facilities within the town. Lack of enough regulatory measures and suspect able recession within the lines of business have frequent closure of most restaurants businesses.
As a new restaurant entering into the market will be encountered by high initial capital requirements since customers are selective to services and food products offered in the market. This means that for a new entrant to compete freely it must offer high quality products, and emphasize on brand identity. The reduced capital gains profits during the start of the business will be possible and thereby it is necessary to identify other profitable means to encounter losses. The existence of barriers that are initiated by the authorities within Vancouver such as high taxes, high cost of registering business, high cost of patent rights and stringent regulatory means will be other barriers for new restaurants. It is noticed that few restaurant entrepreneurs enter into the market within the city because of high switching costs, difficulties in access to distribution of raw materials and suppliers’ preferences. This will increase costs of operations and hence becoming potential threats.
Some bigger restaurants also offer their services at lower costs due to their large economies of scale. Their relative performance is high and customers within Vancouver have strange behaviours towards services being offered from the existing restaurants. From these observations, the competition will be increased. Further, the restaurants will be substituting other hotels and restaurants. In addition, there exist substitutability in service delivery within the existing restaurants offers platform for product differentiation. The services offered by different restaurants are perceived to be uniquely differentiated even though other seem to be relating and substitute each other. For instance, tea, sandwiches, cookies, smoky, beverages seem to be similar between the two restaurants even though they had differentiated tastes. The buyer propensity to substitute the products being offered by the restaurants is high due to their high switching costs. Due to this reasons and market observations, I am intending to offer high quality services and hygienic food within my restaurants so as to welcome and retain more customers. One of the first ways to do this is to employ chefs and customer handling personnel of high calibre and those who are more knowledge in terms of food preparations and customer handling. Secondly I intend to hire a professional marketer who will initiate stiff marketing strategies hence welcoming new customers into my restaurant. Finally, hygiene within and without the restaurant will be my best policy.
In an attempt to provide high quality products, great flavoured food that will be sold at lower cost as compared to competitors. there is need to open sub-shops next to my restaurant which will offer fast moving food and take away food to customers who would not wait to be served while sited. Café –like tables will be available to enable customers enjoy in their subs. I will imitate fast in preparing customer orders and inexpensive but quality service provision. In addition, I will provide my employees with sound salaries to retain and initiate them feel at work. Finally as discussed earlier cleanliness will be expected from all employees. Tables will be frequently cleaned a soon as a customer leaves as well as kitchen supplies and countertops be maintained with highest stands of cleaning.
