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2.6 Product What my business will be is a take-away food stall, which offers homemade, healthy organic soup and bread as well as hot and cold drinks. From the results from my primary research, it showed that 74% would potentially visit my stall therefore this shows that I have a large customer base. My secondary research also showed that the healthy eating sector, which is the sector in which my products will fall into, is to have a 47% increase by 2020 which shows that it is a growing market. This therefore means that it is a good market to get involved within due to there already being interested customers and growth. A brand name is what identifies my stall from another and makes my stall unique and recognisable. I need a brand name to inspire customer loyalty and it allows the customers to give word-of mouth recommendations. In my primary research, I asked what peoples favourite brand of soup was, with Heinz coming out with over three-quarters of the votes. This shows a high brand recognition and following. ‘The Soup Pot’ is the name of my business especially since over 50% agreed that it was the best name for my stall in my primary research. The name of my business conjures up an image of a steaming bowl/pot of soup with a spoon resting inside, which is why I will make that the logo of my business. Logos, identically to brand names, allow people to recognise the business and the product, which is why it is important to have one. This logo will be pictured on my sign as well as on my products packaging and on uniforms. The main product that I intend to sell is soup. After my primary researchI have decided to offer 4 different flavours per day however I will sell Tomato and Basil daily. This is because the results of my questionnaire concluded that most popular flavour soup was Tomato and Basil which means that if I offer that flavour often it will be popular and will draw consumers to the stall. I will then change the other 3 flavours daily. This will be more beneficial for my business as it means there will be less waste, it will be more time efficient. Along with the soup, I will sell bread and hot and cold drinks. The bread will not be homemade when I first start trading as I will not be able to offer as many different varieties, or make large quantities of each type, and it would take up more time. Therefore, I will buy in the breads I will be offering. I have decided to offer 3-5 different breads daily as bread keeps therefore I do not need to sell it all in one day but I will make sure to offer bread rolls daily as that was the most popular type of bread from my primary research. Other popular choices from my market research are Tiger, Baguettes and Sliced white bread. I will also buy in the cold drinks that I will be selling. I will make sure to purchase a range of different drinks, such as water, fruit juice and fizzy drinks. However, I will need to examine the sugar content on the drinks as my stall is for healthy eating. Hot drinks will be dispensed from a coffee machine, which will be installed into the van. This will be more up-market and will then enable me to sell my hot drinks at a higher price as they will be competing with large brands. Selling these items makes my stall most appropriate for lunchtimes, especially as my prices are cheaper than the average prices shown in my secondary research, which were £7.60 for lunchtimes. This means I can attract more customer with my prices which will be cheaper than my other lunchtime competition.Therefore, I am going to open my stall around 10 o’clock in the morning until 4 o’clock in the afternoon. This timeframe covers the whole of the lunchtime trade, which means that I will not lose many customers. This also will allow me time in the morning and evening to prepare and make the new flavours for the next day of selling, therefore making all the products fresh and of a high quality. The packaging which was chosen in my questionnaire for my soup was a cardboard cup with a handle, which meant that customers could avoid burning their hands and the packaging would be biodegradable, which is beneficial for the environment, which could be promoted alongside the organic ingredients. My secondary research also showed that healthy eating was a popular market and that most people buy organic because it is healthier. This therefore shows that I have a large target market. In my market research the top two qualities which people look for when choosing what food to buy was whether it was fair-trade and if the ingredients have been locally sourced. I can achieve this buy regulating what I buy and where I buy it from. I will also be able to advertise that from buying from my stall people are supporting the fair-trade system and also local producers. The first aim which will help me to achieve these aspects would be the aim: “To use superior, quality produce in my recipes.” This will be supported through buying organic, local and fair trade. AO2/3 MB4 Low Clear decisions about product all supported by your primary research. 2.7 Price When asked in my primary research about whether the price was an important factor when deciding their lunch, the majority, which was over three-quarters, stated that it was. The price of my products is a main factor which will draw people to my stall therefore I have to set the right price. On the one hand, if it is too expensive then people would go to lower priced competitors. On the other hand, if I put the price too cheap then people may think that the products are low quality. Another problem would be that I may not be able to generate enough revenue to break even if I do not get the price right. For soup the prices are £3.50, £4.50 and £5.00 for a small, medium and large respectively. I have decided on these prices after completing my primary research. The largest score when answering the question “What do you/would you spend on your lunch?”was the £3-5 bracket therefore I have decided to keep my prices within this price bracket. Secondary research showed that on average that consumers spend up to £7.16-£7.65 at lunchtime. This means that my stall could be considered cheap which means that I could attract a larger amount of customers as more people would be able to afford my products. Another reason for having my starting prices reasonably low is that in the future, should I need to increase my prices, I will be able to without making them extortionate.As my prices are cheaper than my competitors are my pricing strategy is penetration pricing. The aim of penetration pricing is to increase the market of a product and once this objective has been achieved there is then the opportunity to increase the prices. Penetration pricing is usually set lower than the intended established price, to attract new customers. The strategy aims to encourage customers to switch to the new product because of the lower price. Hot drinks will be cheaper than branded coffee shops e.g. Costa and Starbucks. I will be using their prices as guidelines for my own, shaving off around 40p to make sure my stall draws in customers. A normal coffee from Starbuck costs £2.50 (as shown to the right), using this as a pricing guide I will sell my regular coffee at £2.10. AO2/3 MB3 Broad policy explained and specific price decided on with some supporting evidence and justification 2.8 Place Place, which can also be known as distribution, is about how a business gets its products to its customers. I have to make sure that I have my products available at the right place, at the right time with the right quantities. I am selling my products from a stall rather than a shop so I can move with the trade, such as if there was a festival on I would be able to move to meet the demand. The other benefits from selling from a stall rather than in a premise is that customers get to see the goods in person. Interaction with a product is very important for a sale to happen which means that I could potentially sell more from my food van rather than in a restaurant/cafe. It is also very cost effective. This type of selling can be very affordable, especially for start-up businesses, like my own. This is because the extortionate price of rent for high street shops is not included as well as the larger heating and electricity bills. Within my secondary research, I found out that street food and mobile catering is second out of the top 10 for forecasted growth in eating out sectors. This shows that the industry which I intend to enter has a lot of growth potential, especially compared to sandwich bars, another lunchtime competitor, which came joint 9th. I will be placing my Soup stall in the centre of the town of Harrogate. After my secondary research I found that the district has a population 159,000, 75,000 living in Harrogate meaning that with locals alone I could potentially have a large client base. Also working in the middle of town allows me to catch a variety of workers, such as workers in retail, offices, and tourists. Harrogate was also shown to be a very affluent area, as shown in my research which means that higher prices would be able to still draw in customers. The town also brings in a lot of tourism, such as the Yorkshire Show which attracts 130,000 tourists each year. This means that there could be potentially large influxes of customers to my stall. The primary research also showed that the placing of the stall was an important factor for people when decided where to have their lunch. This is because if it is too far away people do not want to make the journey to it. Therefore, I need to make sure that my stall is in the centre, close to shops, offices and schools to make sure that I can get the widest range and amount of customers possible. The distribution of my stall would help me to complete my aim of creating a unique business. This is because if I start up within Harrogate which currently does not have any stalls alike my own then it is unique to that area. Being a one of a kind stall in Harrogate will mean that I will not have any direct competition. AO2/3 MB4 A lot of good different reasons given to justify your method of distribution. Some original research 2.9 Promotion I am aiming to promote my product through advertising. I will advertise my stall firstly on the internet as this was the most popular option on my questionnaire. I could firstly use social media on the internet as it is free, which is useful when I am starting up and doesn’t have unlimited funds for advertising. Websites such as Facebook and Instagram will enable to show what I am offering and allow people to leave recommendations and link and encourage other people to try out the stall. Other benefits of using social media is that social content can indirectly boost links to website content by appearing in universal search results, improving search traffic, which means that more people will see my brand. In addition, you can deliver improved customer service and respond effectively to feedback, which will lead to better communication between the customers and I, which will lead to higher customer satisfaction. A competitor of mine that uses Facebook to promote their business and deals is Soup De Jour. This London based restaurant uses social media to inform people which flavours and topping they are selling that day, and also encouraging people to join in on their discounts and promotions. Facebook has also allowed people to comment and rate the business, giving them 4.9 out of 5 stars, and they have gained 1,421 “likes”, which means that people enjoyed their experiences. The page also shows all the information you need to know about the place such as telephone number, address and opening times. This keeps customers well informed. TripAdvisor is another website online that I could use. It is also free and allows customers to rate my stall, and has become increasing popular over the years. This will then enable me to gain customers and start making money, which I can then use on other advertising tools in the future. Again, Soup De Jour has a profile on TripAdvisor that shows that they have had 22 reviews. The overall rating they have received from their 22 reviews is 4.5 out of 5, which similarly to their Facebook profile, is a good score. Also alike the Facebook profile is information about the location of the restaurant and opening times. Both contain a map that is very useful for customers trying to find where it is. TripAdvisor also allows customers to post pictures from their experience, which is a great way of creating customer interaction and satisfaction. The next popular answer from my primary research was recommendations. I will get good recommendations if I serve high quality, good tasting soup with great customer service, speed and a great location. I could also suggest that customers complete this via TripAdvisor therefore any positive feedback can be seen by the public.This is why I need to make sure that all other aspects of my business are perfect. This type of advertising is also free which is beneficial to my business. Leaflets were also an answer in my primary research question about advertising. Leaflets are a great way of spreading the word about my business, especially since they can be distributed all around the area. They are also quite cheap to produce which would be beneficial when starting up. However, the main negative about using leaflets as a marketing tool is that the public easily dismisses them, which is why I do not think it scored highest in my questionnaire. In my secondary research I look more at what I should be advertising rather than how to advertise my stall. It firstly showed that healthy eating is a large and increasing market. Also when looking at what encourages people to eat organic, organic food being healthier due to it being natural and having fewer pesticides where the most occurring reasons. Therefore, words such as healthy and organic need to be used when decorating and advertising my van. Also back in my primary research, being locally sourced cropped up as an important factor, therefore I should probably advertise the local producer in which I will be getting my ingredients from. Finally, I looked at different promotions I could use to entice people to my stall. In my primary research I asked “Which promotion would you prefer to receive,” followed by a list of options. The most popular option by far was to have 20% off, secondly followed by a loyalty card. Even though 20% off was the most popular option I do not think that my businesses finances could withstand this offer. However, I could entwine this discount with the advantage card to allow people offers after buying/spending certain amounts. It could include other offers such as having a free drink or bread or even higher discounts if it’s a regular. This would encourage people to come back regularly. Promotion will help me meet my aim of being able to survive the first year of selling on the street, as my signs and deals will encourage people to my stall. Another aim of mine which is to use superior quality ingredients will be promoted around my stall which will also be appealing to customers and draw them in, this will lead to sales which will help my prior aim. AO2/3 MB4 Bottom of band. You have made appropriate decisions about all aspects of your business. They are simple and straightforward and reflect the simple nature of your business. In each case there is supporting evidence, which justifies the decision and you explain points logically.