interpret market trends and developments

8/9/2019 Interpret Market Trends and Developments

1/20

Paramjit Singh

Interpret market trends and developments

Assessment task 1


Read case study of Zeldo’s gourmet pasta and answer the following:

1. Use appropriate statistical analysis tools and analyse data to interpret

market trends and developments and their potential impact on the zeldo’s

gourmet pasta business?

Answer---

Demographics & Lifestyle Analysis---according to the information

collected from Zeldo’s gourmet pasta marketing plan; Graceville has a lot

of potential in terms of market growth due to large %age of families,

growing area at 10% per year and increasing household income. Consumer survey----In addition to this, More than 53% people eat out

several times a week which seems good for a growing business. Majority

of people in Graceville prefer high quality and better presentation of food.

Business owner survey — according to annual business reports ;Zeldo’s

gourmet pasta better customer service, family based dine in environment

and competitive price.Impact---Due to the increasing trend of customer’s preference for high

quality food and better skilled service staff Zeldo’s gourmet pasta has

succeeded in winning high customers loyalty.

According to the growth and share analysis data; Zeldo’s gourmet pasta

has increased number of customers. Increase in large %age of dine in

family business in Graceville might be one of the reasons for it.


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Paramjit Singh


Zeldo’s gourmet pasta still lacks brand awareness (a lot of people don’t

know that Zeldo’s gourmet pasta exists) and innovation (individual

customer growth seems very slow according to growth and share

analysis) which has proved to be big drawbacks in terms of business

growth for the restaurant.

2. Perform qualitative analysis of comparative market information as

the basis for reviewing the Zeldo’s gourmet pasta performance.

Answer--- quality analysis of Comparative market for Zeldo’s gourmet pasta.

1. SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis for

business----

Strengths

High Quality ingredients

Quick and quality service Location is bright and clean in

terms of hygiene

Weaknesses

Struggles to continue with the

quality innovation in theirdishes

Take away orders lacks use of

advanced technology such as

online ordering which provides

quality and quick customer

feedback

Opportunities

Increase in number of

customers who prefer quality

over quantity

Better customer service

quality due to well trained

Threats

Competition from local

restaurants that lures

customers with lowering the

prices. Extras like large wine

selection and salads.


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Paramjit Singh


staff in comparison to other

competitors

a number of established

gourmet pasta restaurant

chains coming to Graceville to

increase the competition

In Graceville ,the market trend is going in favour of Zeldo’s gourmet pasta

as the number of customers who prefer high quality ingredients is increasing.

These days for customers; not only the taste is important but also the

presentation of the food plays a major role for choosing. According to the

information provided by the market trends data, the more variety you have in

your menu the more customers will be interested in visiting your restaurant

regularly due to your innovation.

3. Analyse market performance of existing and potential competitors and

their products or services, to identify potential opportunities or threats to

Zeldo’s gourmet pasta. Prepare, plot and interpret the data for visual

presentation select and use tools that are appropriate, for example, excel

spread sheet or similar.

Answer — Competitors---- Due to increase in area growth, increase in number

of peoples eating out and demand for innovation there are a lot of competitors in

Graceville and well-established gourmet pasta restaurant chains who are coming

to Graceville poses threat to Zeldo’s gourmet pasta’s business. Out of national

competitors, Verdi pasta has average ingredients but no creativity while the

pasta mia offers pasta at lower price point.


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Paramjit Singh


National competitors---

Pasta buzz Pasta bite Pasta mia

Threats – variety and

innovation (they allow

customer to assemble their

dish as they wish)

Opportunity — food quality

is average in comparison.

Threats — use of high

quality ingredients

Opportunity — high price

and limited selection of

dishes.

Threats — fresh food with

innovative dishes at low price

Opportunity — excessive

employee turnover in

coparison to our reliable and

honest staff

Local competitors--- Out of locals, niccolo has large selection of wines and

salads but is overpriced and sometimes offers poor service. Peri pasta has

decent pasta selection, cheaper price but quality is inconsistent while Stella’s

has an upscale restaurant with pricey and limited dishes. But their presentation

and good food is much better resulting in a huge market share of 16% becoming

our major competitor while the other competitors have less than 13% of market

share each.

growth rate

Stella's Peri pasta

Niccolo


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Paramjit Singh


Assessment task 2



2. List and analyse the performance data from all areas of zeldo’s

business to determine the success of marketing activities?

Answer---

Break even analysis

Sales 35000 40000 45000 50000 55000

Fixed

costs

25650 25650 25650 25650 25650

Variable

costs

15050 17200 19350 21500 23650

Total cost 40700 42850 45000 47150 49300

profit -5700 -2850 0 2850 5700

Variable 43% 43% 43% 43% 43%

0

10000

20000

30000

40000

50000

60000

1 2 3 4 5

cost

sales

Column1


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Paramjit Singh


These profitability outcomes seems nice in terms of gross profit but

remember that one of our local competitors named peri pasta sells

cheaper than us at $19 with a decent selection but they lack consistency

in quality but Stella’s restaurant are over priced at $25 which gives us an

advantage over them.

Sales comparison of different customer group

The takeaway customer sales and growth seems very slow while the family

customers growth is increasing in a good manner. The problem of poor sales

performance for take away might be due to using phone ordering system for

selling activities in take away food instead of using latest online ordering

technology via internet.

0

5000

10000

15000

20000

25000

30000

35000

40000

45000

2009 2010 2011 2012 2013

individuals

take away

family


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Paramjit Singh


3. List the over-performing and under-performing products and

services to be considered for redevelopment or withdrawal.

Answer —

over-performing products and services---

use of high quality and fresh ingredients

great staff and quick service

bright and clean design

great location of high income people living nearby

enhanced presentation

under-performing products and services---

phone ordering system for selling activities in take away food

lacks brand equity

lack of advertisement

less innovation in terms of food

4. Utilize the forecasting techniques to analyse the market data to

identify existing and emerging market needs.

Answer —

Market research

Live Feedback mechanism allows customer to freely offer constructive

criticism or praise which will help to improve the service offerings as

well as showing zeldo’s commitment to customer satisfaction

Competitive analysis

Become member of a restaurant association to gain access for published

ongoing market research.


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Paramjit Singh


Secondary data

Industry market reports, annual reports, and company brochures are all

good sources of external secondary data. Previous market analysis and

research reports may provide the basis for projections into the future.

Statistical analysis

Market tr ends

It is found out that customer these days are appreciate quality over

quantity as number of customers is increasing; who prefer high quality

ingredients in their dishes.

Market needs

Zeldo’s gourmet pasta business success seems to be the result of

understanding the needs of their loyal as well as random customers. They

must provide wide variety of choice, great customer service, best location

and accessibility as well as competitive prices in comparison to their local

competitors.

Market growth

Global pasta market has reached $10 billion dollars .pasta sales are

assumed to increase at least 10% by the upcoming years. According to

growth and share analysis number of potential customers in every

category has increased for the overall market as well as for the Zeldo’s

gourmet pasta over the past few years.


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Paramjit Singh


Assessment task 3




Final market analysis report for Zeldo’s gourmet

Pasta in Graceville to initiate business

Submitted by — Paramjit Singh


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Paramjit Singh


1. Introduction

Zeldo’s gourmet pasta restaurant will be the leading gourmet pasta restaurant in

Graceville which has huge opportunity in terms for market growth due its

rapidly growing area, high income earning residents and who love to eat outside

people. Zeldo’s gourmet pasta restaurant want to analyse the market trends

,check market growth and know about customer needs with changing trending

in food business to not only initiate their success in Graceville but also to

improvise in future as brand name.

2. Objectives

To analyse market trends

To collect information about specific customer needs

Realise a growth strategy of one store per year

Analyse the data collected and results to solve problems

Make an agenda for action; critical for continuous success and future

profitability

Decrease variable costs associated with food production

Other Objectives

Maintain positive, continuous business growth each month

Increase in number of new customers turning into loyal customers

Generating $45000 minimum in sales per month to reach break-even point

A double digit growth rate for each future year

Reduce overhead per store through disciplined growth


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Paramjit Singh


4. Interpretation of market trends and developments

Market tr ends

It is found out that customer these days are appreciate quality over quantity as

number of customers is increasing; who prefer high quality ingredients in their

dishes. In addition, according to the market trend reports, customers not only

want better quality food but also appealing to their eyes. No matter how tasty

your dishes are; they won’t appeal to customers unless they are well presented.

Last but not the least, large variety in the menu makes a lot of people happy

these days.

Market needs

Zeldo’s gourmet pasta business success seems to be the result of understandingthe needs of their loyal as well as random customers. they must provide wide

variety of choice, great customer service, best location and accessibility as well

as competitive prices in comparison to their local competitors.

Market growth

Global pasta market has reached $10 billion dollars .pasta sales are assumed to

increase at least 10% by the upcoming years. This market growth could be theresult of various reasons such as increase in number of hour’s people has started

working. Due to more work hours, there are increased chances of people eating

outside instead of cooking meals at home. In addition, according to growth and

share analysis number of potential customers in every category has increased

for the overall market as well as for the Zeldo’s gourmet pasta over the past few

years.


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Paramjit Singh


5. Analysis of market trends on potential impact on business and

comparative market information

SWOT analysis

Strengths

High Quality ingredients

Quick and quality service

Location is bright and clean in

terms of hygiene

High quality dishes in terms of

creativity

Weaknesses

Lacks brand quality equity

Struggles to continue with the

quality innovation in their

dishes

Take away orders lacks use

of advanced technology such

as online ordering which

provides quality and quick

customer feedback

Opportunities

Increase in number of

customers who prefer quality

over quantity

Better customer service quality

due to well trained staff in

comparison to other competitors

Threats

Competition from local

restaurants who lures

customers with large wine

selection and salads in

addition to their decent pasta

selection

a number of established

gourmet pasta restaurant

chains coming to Graceville


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Paramjit Singh


Impact---Due to the increasing trend of customer’s preference for high quality

food and better skilled service staff Zeldo’s gourmet pasta has succeeded in

winning high customers loyalty.

According to the growth and share analysis data; Zeldo’s gourmet pasta has

increased number of customers. Increase in large %age of dine in family

business in Graceville might be one of the reasons for it.

Zeldo’s gourmet pasta still lacks brand awareness (a lot of people don’t know

that Zeldo’s gourmet pasta exists) and innovation (individual customer growth

seems very slow according to growth and share analysis) which has proved to

be big drawbacks in terms of business growth for the restaurant.

Competition

National competitors---

Pasta buzz Pasta bite Pasta mia

Threats – variety and

innovation (they allow

customer to assemble their

dish as they wish)

Opportunity — food quality

is average in comparison.

Threats — use of high

quality ingredients

Opportunity — high price

and limited selection of

dishes.

Threats — fresh food with

innovative dishes at low price

Opportunity — excessive

employee turnover in

coparison to our reliable and

honest staff

Local competitors--- Local Competitors like Stella’s, peri pasta and niccolo in

total shares 38% of the market share. Out of locals, niccolo has large selection

of wines and salads but is overpriced and sometimes offers poor service. Peri

pasta has decent pasta selection, cheaper price but quality is inconsistent while


16/20

Paramjit Singh


Stella’s has an upscale restaurant with pricey and limited dishes. But their

presentation is much better resulting in a huge market share of 16% becoming

our major competitor while the other competitors have less than 13% of market

share each.

6. Over and under-rated products and services

over-performing products and services---

use of high quality and fresh ingredients

great staff and quick service

bright and clean design

great location of high income people living nearby

enhanced presentation

under-performing products and services---

phone ordering system for selling activities in take away food

lacks brand equity

lack of advertisement

less innovation in terms of food

7. Utilize forecasting techniques to forecast market needs

Market research

Live Feedback mechanism allows customer to freely offer constructive

criticism or praise which will help to improve the service offerings as

well as showing zeldo’s commitment to customer satisfaction

Customer surveys in form of suggestion card could also be used as a

source of market research


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Paramjit Singh


Competitive analysis

Patronise local restaurants to gather timely information about service

offerings as well as involve in an informal fraternal organisation. Become

member of a restaurant association to gain access for published ongoing

market research.

Secondary data

Industry market reports, annual reports and company brochures are all

good sources of external secondary data. Previous market analysis and

research reports may provide the basis for projections into the future.

Break even analysis

Sales 35000 40000 45000 50000 55000

Fixed

costs

25650 25650 25650 25650 25650

Variable

costs

15050 17200 19350 21500 23650

Total cost 40700 42850 45000 47150 49300

profit -5700 -2850 0 2850 5700

Variable

costs

43% 43% 43% 43% 43%


18/20


19/20


20/20

Paramjit Singh


To position itself as reasonably priced, upscale, gourmet pasta restaurant in

Graceville. Not only we will be providing quality meals but with some new

innovative dishes and a great staff to provide best customer service experience

to win over the Graceville customers. Our main focus will be on the family

customers who live nearby, young professionals who work close to location and

people who prefer to eat food at home rather than outside.

10. References-----

http://marketresearch.about.com/od/Market_Research_Basics/a/Market-

Research-101-Data-Analysis.htm

http://www.b2binternational.com/techniques-tools/statistical-

techniques/correlation-analysis/

http://fyi.uwex.edu/downtown-market-

analysis/#_Market_Analysis_Process

http://en.wikipedia.org/wiki/Turnover_(employment)

http://www.businesstrainingcollege.com/business/How-do-I-Write-a-

Business-Report.htm

http://www.wikihow.com/Write-a-Business-Report

http://www.cifor.org/lpf/docs/Palawan/3_8_Annex%207.%20Market%20

Study%20Report_no%20pics_formatted.pdf
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