MARKETING ANALYSIS

The industry for health food while there are several small scale enterprises that target this
market, no one has done so on a large-scale. The opportunity presents itself for local
restaurant chains not only to compete against the franchise businesses such as KFC but to
exploit the niche market for our goods.

Demographic profile
A market survey will be required to obtain a measure of sales/ market share/ potential
profit.

The food concept and product image of Healthy Delights will attract 3 different customer
profiles:
℘ The student -- more and more young people have developed healthy eating habits.
Some also go through a "health food phase" while in Upper Secondary and Tertiary
education.
℘ The health conscious person of any age or sex -- this includes anyone on a
restricted or prescribed diet or those who have committed to a healthy diet.
℘ Curious and open-minded -- "if you try it, you will like it." Through marketing,
publicity, and word-of-mouth, people will seek out a new experience and learn that
nutritious food can be tasty, fun, convenient, and inexpensive.

Demographic Characteristics*
- Population
- Age distribution and median age
- Gender
- Ethnic groups
- Household income distribution
- Marital status
- Dwelling types
- Households with children
- Education
Marketing objectives

Marketing mix
Focusing on the unique aspect of the product theme (healthy, tasty foods) a mix of
marketing vehicles will be created to convey our presence, our image, and our message.

℘ Print media -- local newspapers, local magazines, student publications

℘ Broadcast media -- local programming and special interest shows (e.g. ads during
cooking programs)

℘ Hotel guides, concierge relations, Chamber of Commerce brochures

℘ Direct mail -- subscriber lists, offices for delivery

℘ Miscellaneous -- yellow pages, charity events, flyers

Distributing flyers and coupons and taking an ad in the Yellow Pages are low-cost options.
We will also conduct an opening reception, where we offer samples of some of the foods
our restaurant will serve. We will extend our marketing activities to include billboards and
direct mail campaigns, and advertising on cable TV and local radio stations. When new
customers come in, we will ask where they heard about us so we can determine what kind
of promotions and advertising works best for you.

Read more: Restaurant Marketing Analysis | eHow.com

http://www.ehow.com/about_5232304_restaurant-marketing-analysis.html#ixzz1Hw06oHTq

The marketing effort will be split into 3 phases;

1) Opening – This would include using print and broadcast medias to introduction and
position our restaurant in the minds of mass consumers. At this stage, we aim to peak the
interest in the public and make them aware our an alternative lifestyle of eating. Budget -
$10,000
2) Ongoing -- A flexible campaign (using the above media), assessed regularly for
effectiveness. Budget - $10,000

3) Point of sale – At this point, we aim to train staff regularly to continuously enhance the
customer's overall experience. Word-of-mouth referral is very important in building a
customer base. A sales agent would be hired to directly market our products for daily
delivery or catered functions for our “Catering to Offices Service”.

Supporting marketing programs

We will employ three different marketing tactics to increase customer awareness of Healthy
Delights Restaurant. Our most important tactic will be word-of-mouth/in-store marketing.
This will be by far the cheapest and most effective of our marketing programs.

Word-of-mouth/In-store Marketing

These will include the following:

℘ Specially Invited Guest Function - This will serve the dual purpose of training our
staff and introducing ourselves to the community. The list of individuals we will
invite comes from the Chamber of Commerce. This will be conducted before the
grand opening.

℘ Grand Opening Reception

℘ Localize It Night – This involves inviting local artiste on a specified night once a
month or every two weeks to show their new and upcoming work. This would
mostly likely be done on a Tuesday Night.

℘ Special Occasion Functions – This includes designing a special dining experience for
Christmas, New Years, Valentines, Easter, and Independence etc.

℘ Buffet Night – on a Wednesday night we will offer the ultimate family experience
with a fixed price buffet that includes our best selling dishes.

Local Store Marketing

 ℘ Make a brochure for the large hotels and popular bed & breakfast establishments in
the areas surrounding the restaurant to provide to their guests, containing interior
pictures of our restaurant, menus and prices.

℘ We will align ourselves with a charitable community project such as sponsoring

meals for the elderly in a home or children in a small children home. We will allow
us to contribute to the community in a material way. In terms of the elderly,
word-of-mouth referral is very powerful and particularly amongst the elderly to
both their peers and their extended families.

Local Media

℘ Newspaper campaign - Placing several large ads throughout the month to deliver
our concept to local area.

℘ Direct mail piece - Containing interior pictures of our restaurant, our menu, "Theme
Nights," catering and an explanation of our concept.

℘ Website – this will be designed and launched before the opening of the restaurant.

℘ Target marketing to businesses for regular business lunch and dinner entertaining.

Celebrity Endorsement

℘ Though this cannot guarantee fool-proof success but once coupled the information
gathered our target market, we can select the most appropriate local or Caribbean
celebrity to represent our restaurants image. For example, in terms of the single
mothers who need to be strong and take on multiple roles in the home, we will use
“Wendy Fitzwilliam.” The decision to use celebrity endorsement would not be taken
lightly because this does more than affect market share or sales, it can change the
future of our brand forever.

Competitor Analysis
We will be competing against other segments within the industry such as fast food as well
as more traditional sit down restaurants.

Main Competitors

Our main fast food competitors are Subway, KFC and Burger King. Subway have market
themselves as having very healthy options on their menu. They also used real people such
as Jared Fogle who lost a large amount of weight on the Subway Diet in their marketing
campaigns. These fast food established franchises have the ability to cut prices at will and
also have well established and secured relationships with suppliers. They also now offer
salad options on their menu.

Our main dining restaurant competitors are TGIF, Trotters and Woodford Café. Combined
they cater for our target demographic. Therefore, our marketing activities must be strong
and positioning must vary from our competitors showing that we can offer highly delicious
yet healthy meals for all.

Action plan and timeline

Advertising budgets (Depends on overall budget)

Market Share

Target Market Segment Strategy

For the business market we need to focus on specific companies with specific
opportunities. For individuals we need to lever off word-of-mouth
recommendations, probably depending on business customers.

The business market has the potential of providing large volume sales to the company
during the peak hours of 11 a.m. to 2 p.m., both through small groups of business people
visiting the restaurant and delivery orders. Satisfaction of this group will provide a vital
long-term revenue stream. For the business market, the company plans to do specific target
marketing through flyers, business discounts, billboards, and creating excellent timely
delivery.

For the individual groups seeking breakfast or lunch or take-home meals, it is necessary for
the company to build an effective word-of-mouth marketing strategy. The company will do
this slowly, realizing that much of this will grow from its business market. The company is
also planning to do a number of joint marketing efforts with different societies such as
Cancer by offering sponsorship of flyers and buttons for their various events. This in turn
would help to drive our word-of-mouth marketing efforts.

Market Trends
One of the most important recent trends in eating is the rise of interest in consuming
healthier foods. The best known example of this is the move toward organic foodstuffs.
Healthy Delights realizes that there is a significant percentage of the population that is
demanding more and more naturally grown, organic meats and vegetables and the
company is well positioned to take advantage of this change. We have communicated with
organic growers and suppliers in the Caribbean that will allow the company to take
advantage of this new market need.

Market Needs
As stated before, customers desire fast, healthy food that will appeal to their aesthetic
tastes and is provided in a comfortable atmosphere. In addition, they desire a memorable
dining experience that provides them with the chance to relax in the middle of the day. All
of this needs to be delivered to the customer with the least amount of hassle. Furthermore,
customers will also need a facility that can provide them with delicious, convenient
take-home or take away meals when there is no opportunity to cook at home.

Market Growth

We have no indication of market growth in this market. No statistics are available for the
local food industry in Trinidad. What we do know is that there is growth potential, and
plenty of potential market for the right combination of service, quality and choice.
Service Business Analysis

The restaurant industry is highly fragmented and competitive. Each company within this
field aims to have low capital costs and low margins, which create this high intensity of
competition.

Suppliers have a great deal of power in setting and negotiating the prices of their products
and services to the smaller eating establishments. These companies can set whatever price
they wish to because their products are needed by everyone operating in the food industry.
Furthermore, labor is a supplier in this industry as well, and salaries for such individuals
are well known and not very flexible.

The larger companies often have cost advantages due to economies of scale that allow them
to outcompete smaller rivals.

The barriers to entry and exit are very low in this industry. Switching costs are virtually
non-existent and the costs to entry and exist the market are low. The large number of
competitors in this field including substitutes such as Mcdonald's, Subway Sandwiches, and
Coco's mean that the pricing for such services are very competitive. The only way to have an
advantage in this industry is either a low cost leadership principal applied aggressively to
all aspects of the business or to differentiate the entire eating experience through
better and more unique food and to build up customer relations to a point where the
switching costs are raised.

Other Information:

Market Penetration
Entry into the market should not be a problem. The store has high visibility with heavy foot
traffic all day long. The local residents and students always support new restaurants and the
tourists do not have fixed preferences. In addition, $10,000 has been budgeted for a
pre-opening advertising and public relations campaign.

Marketing Strategy
Focusing on the unique aspect of the product theme (healthy, tasty foods) a mix of
marketing vehicles will be created to convey our presence, our image, and our message.
● Print media -- local newspapers, magazines and student publications
● Broadcast media -- local programming and special interest shows
● Hotel guides, concierge relations, Chamber of Commerce brochures
● Direct mail -- subscriber lists, offices for delivery
● Misc. -- yellow pages, charity events
A public relations firm has been retained to create special events and solicit print and
broadcast coverage, especially at the start-up.

The marketing effort will be split into 3 phases;

1) Opening -- An advanced notice (press packet) sent out by the PR firm to all media and
printed announcement ads in key places. Budget - $10,000

2) Ongoing -- A flexible campaign (using the above media), assessed regularly for
effectiveness. Budget - $10,000

3) Point of sale -- A well-trained staff can increase the average check as well as enhancing
the customer's overall experience. Word-of-mouth referral is very important in building a
customer base.

Future plans and Strategic Opportunities

Catering to offices (even outside of our local area) may become a large part of gross sales.
At that point a sales agent would be hired to directly market our products for daily delivery
or catered functions.

The Competition

There are over two dozen restaurants in the Harvard Square area that sell food at similar
prices. Although this presents an obvious challenge in terms of market share, it also
indicates the presence of a large, strong potential. The newest competitors have made their
successful entry based on an innovative concept or novelty. Abonda will offer an innovative
product in a familiar style at a competitive price. Our aggressive plans of take-out and
delivery will also give us an advantage to create a good market share before the
competition can adjust or similar concepts appear.

Competitor's Profile
Competing with Abonda for the target market are these categories of food providers:

● Independent table service restaurants of similar menu and price structure.

● Chain " " " " "
● Commercial foodservice companies serving students directly.

Independent operators include Grendel's Den, Iako, Bombay Club, Iruna, and The Border
Cafe. Most are ethnic based and will carry at least two similar menu items. Grendel's and
Iruna are long-standing businesses while the others are fairly new. They all are doing very
well.

The major chain restaurants are House of Blues, Chili's and Bertucci's. All are relatively new
but well established and profitable. They have big resources of marketing and/or a specialty
product or attraction (House of Blues is also a live music club). Ogden Foods and Cysco both
service 24,000 Harvard students but their product is not appealing enough to prevent
students from eating out 5 to 7 meals a week. In addition there are two local catering
companies that deliver prepared meals daily to offices.

Competitive Strategy
There are three major ways in which we will create an advantage over our competitors;

● product identity, quality, and novelty

● high employee motivation and good sales attitude
● innovative and aggressive service options.

Abonda will be the only restaurant among all the competition which focuses the entire menu
on healthy, low-fat cooking. Each of the competitors offers at least one "healthy" selection
on their menu. Grendel's Den even has an entire section called "On the Lighter Side" but in
all cases they are always seen as alternatives to the main style being offered. The target
market will perceive Abonda as the destination location for healthy, low-fat cooking.

Once they have tried the restaurant, their experience will be reinforced by friendly, efficient,
knowledgeable service. Return and repeat business will be facilitated by accessable take-out
and delivery options. At the time of this writing all of the competitors offered take-out but
only two (Bertucci''s & Chili's).

Market Analysis Summary

Gabri's focuses on local and tourist restaurant seekers. People that have a desire for good food
and a fascinating atmosphere.
Long Branch is located 50 miles south of New York City and 75 miles north of Atlantic City on
the 'Jersey shore.' The city of Long Branch is in the process of revitalizing. In 2003, the city will
be developing a new look and will be attracting a larger community of affluent residents.
Long Branch tomorrow:
The ocean front district includes five sectors which are identified as:

1. Pier/Village Center (mixed commercial, entertainment & residential),

2. Beach Front North (residential & entertainment),
3. Beach Front South (residential),
4. Hotel Campus (office & hotel) and
5. Broadway Gateway (mixed commercial).

The boundaries for Pier Village are Melrose Terrace to Laird Street, and from Ocean Avenue to
Ocean Boulevard. The developer has broken ground to build 420 residential units, including a
two-tier garage, 100,000 sq. ft. of commercial space, beach cabanas and a restoration of the
boardwalk.
Beach Front North is located above the Hotel Campus and just south of Seven Presidents Park. It
will have 350 residential units, 1,100 parking spaces, and a bike path over an area of 25 acres.
This project, along with Pier Village, will change the face of the city's ocean front for the next
hundred years and provide a major economic boost to the city of Long Branch. 
The influx of permanent residents will provide the city with a legitimate year-round economy.
One to three-bedroom rentals with 850 to 1,200 sq. ft.. will range from $1,000 to $2,500 a
month. The condominiums will range in size from 1,000 to 2,000 sq. ft. and in price from
$200,000 to $400,000; the townhouses, with 1,500 to 2,500 sq. ft., will cost $225,000, to more
than $500,000.
The new, 600-foot pier offers ferry service to Manhattan, New York City. The hotel facility now
hosts 60,000 guests a year and is planning to add a tower with 250 more rooms.
As the city of Long Branch is re-developing, we can see that a fine dining establishment like
Gabri's  is needed here. The city will have much to offer and the people that it draws expect a
place where they will get the best of everything. Gabri's Lounge and Restaurant will offer a new
fine dining concept to the area. The elegant atmosphere, our excellent food and our friendly staff
will stand out and make a name in Long Branch and Monmouth County. We will succeed by
giving people a combination of excellent and interesting food in an environment that attracts
successful people that want to get a little bit more out of life than just the ordinary!
4.1 Market Segmentation
Gabri's Lounge & Restaurant intends to cater to a wide group of people. We want everyone to
feel welcome and relaxed in a cozy atmosphere with a wide and varied menu. It is our goal to
have "something for everyone" everyday on our menu. In looking at our market analysis, we
have defined the following groups as targeted segments. 
The Business Man: They work hard all day and often stay overnight in a strange city. He needs a
competent establishment that helps impress his clients and prospects. Afterward, they want to
relax and use the money they are making. They are the people that spend the most on drinks,
food and tips.
Happy Couples: The restaurant will have an intimate, romantic, sophisticated atmosphere that
encourages people to bring dates and to have couples arrive. Gabri's wants to be a search place
where people meet each other and develop a network. These young couples are generally very
successful but balanced and won't be spending as much on drinks.
The Family: The perfect place for a family dinner. Families will come for the accommodative
menu and friendly service. The excellent value in their meals will keep Gabri's in favor with the
parents. 
High-end Singles: We will attract them with our decor and layout. Our international menu,
striking artwork, wine tasting evenings and events, excellent service and engaging clientele will
confirm the feeling of being in "the coolest place" in Monmouth County.
Tourists: Long Branch is a city that attracts many vacationers during the summer months of May
through September. Gabri's will be a destination with its attractive atmosphere, international
menu, and outdoor patio.
Market Analysis
Year 1 Year 2 Year 3 Year 4 Year 5
Potential Customers Growth CAGR
Business Man 17% 14,280 16,708 19,548 22,871 26,759 17.00%
Happy Couples 14% 8,925 10,175 11,600 13,224 15,075 14.00%
Tourists 15% 3,570 4,106 4,722 5,430 6,245 15.00%
The Family 13% 5,355 6,051 6,838 7,727 8,732 13.00%
High-end Singles 12% 3,570 3,998 4,478 5,015 5,617 12.00%
Total 14.99% 35,700 41,038 47,186 54,267 62,428 14.99%

4.2 Target Market Segment Strategy

Gabri's Lounge & Restaurant will focus on attracting a wide and diverse clientele ages 25-60
with an annual income of at least $30,000.
We want the business man, happy couples, high-end singles, families, tourists with money,
wealthy image seekers and compulsive spenders. We focus on these specific groups because
these are the types of people who frequent other restaurants and bars in the area. They are the
ones that are willing to spend their money on good dining and service at a value price. We
generally know the characteristics of our clientele with the available demographics.
Our geographics include people from the local Long Branch area, restaurant patrons
from neighboring cities, and tourists from other cities and states. The characteristics of our
clientele will be people who are creative, entertaining and sophisticated diners.

Strategy and Implementation Summary

Our strategy is simple, we intend to succeed by giving people a combination of excellent and
interesting food in an environment that appeals to a wide and varied group of successful people.
We will focus on maintaining quality and establishing a strong identity in our community. Our
main focus in marketing will be to increase customer awareness in the surrounding communities.
We will direct all of our tactics and programs toward the goal of explaining who we are and what
we do. We will keep our standards high and execute the concept so that word-of-mouth will be
our main marketing force. 
We will create an appealing and entertaining environment with unbeatable quality at an
exceptional price. An exciting and friendly restaurant, we will be the talk of the town. Therefore,
the execution of our concept is the most critical element of our plan. All menu items are
moderately priced for the area. While we are not striving to be the lowest-priced restaurant, we
are aiming to be the value leader.
5.1 Competitive Edge
Our competitive edge is the menu, the chef, the environment, the management, the service and
our friendly place! We will have an international menu and our food will be made with the
freshest ingredients and produce available. The chef has an excellent taste for what fine dining is
and requires. Our environment is elegant and comfortable and our decor is warm and relaxing.
Great service is very important to us. The management and servers will handle every detail to
make customer's special evening even more special! All this and our great atmosphere will make
customers want to come back again and again!
5.1.1 Main Competitors
Our biggest competition is the town next to Long Branch, called Red Bank which has a large
selection of restaurants. Currently, many people who live in Long Branch drive seven miles to
Red Bank to dine out. With the redevelopment in Long Branch and with Gabri's Lounge &
Restaurant, we will convince these people to stay in Long Branch and eat at our restaurant.
There are three restaurants in Long Branch that are similar to Gabri's. These are also the three
most popular places in Long Branch. Each of these restaurants will be important to us. We
feel the clientele they have is the class of clientele that Gabri's will appeal to.

1. The first place is an 80 seat restaurant, open six days a week and serves lunch and dinner located
uptown on Broadway. It is very busy for lunch as well as at dinner time. Their price range is
$7-$15 for lunch and $12-$29 for dinner entrees.
2. The second is an upscale lounge/food bar with a small menu. It is located in the West End district
two blocks away from the ocean. They are only open for dinner. The small items on there menu
range from $8-$15 and a mixed drink is $8-$10.
3. The third place is an upscale Contemporary American restaurant at the Ocean. They are
open seven days a week, dinner for two without wine averages $100.

Everyone that sells prepared meals is our competition though because we all compete for the
same home meal replacement dollar. However, there are two segments of the restaurant industry
that are our main competition: the casual dining restaurant concept and the fine dining value
restaurant. If the value of the food and price and service is better at a fine dining restaurant than a
casual restaurant, where will is a customer more likely to go?
The key is to deliver the best food at the best price with the highest level of service. This is the
very definition of value. This concept is at the heart of Gabri's Restaurant & Lounge.
5.2 Marketing Strategy
The total population in New Jersey is 8,414,350 people.
615,301 people live in Monmouth County, 50% between 25-55 years old. That is the age group
that dines out two to three times a week and spends an average $795 a month on food and drinks.
There are 224,447 households in Monmouth County and an average 2.7 persons per household.
The median family income in Monmouth County averages, $64,271/year. There are 636
registered businesses in Long Branch with 7,885 employees. 
We mention that there are over 200,000 Scandinavians living in New Jersey and most of them
live within 30 miles of Long Branch. We will be serving some Swedish cuisine as there is no
Scandinavian restaurant in New Jersey.
Our primary customer base is from Long Branch, West Long Branch, Monmouth Beach,
Rumson, Little Silver, Middletown, Red Bank, Shrewsbury, Deal, Eatontown,
Freehold, Oceanport, Allenhurst, & Asbury Park.
City Population Median Family Income
Long Branch 31,340 $38,651
West Long Branch 7,690 $71,852
Monmouth Beach 3,595 $80,484
Rumson 7,137 $120,865
Middletown 66,237 $75,566
Little Silver 6,170 $94,094
Red Bank 11,844 $47,282
Asbury Park 16,930 $23,081
Eatontown 14,008 $53,833
Freehold 31,537 $48,654
Shrewsbury 1,098 $86,911
Deal 1179 $58,472
Oceanport 6,146 $71,458
Allenhurst 759 $85,000

5.2.1 Marketing Program

We will employ three different marketing tactics to increase customer awareness of Gabri's Lounge &
Restaurant. Our most important tactic will be word-of-mouth/in-store marketing. This will be by far the
cheapest and most effective of our marketing programs.
Word-of-mouth/In-store Marketing

●  V.I.P. Party - We will host a V.I.P. Dinner before the 'Grand Opening.' This will serve the dual
purpose of training our staff and introducing ourselves to the community. The list of individuals
we will invite comes from the Chamber of Commerce.
● Grand Opening celebration.
● Once a month invite a new local artist to show their work in the lounge.
● "Restaurant Night" -  Every Monday night we will have a special evening for restaurant people. A
perfect night for the local area's restaurant owners and staff to get together on a night off!
● Valentine's Day.
● Easter dinner.
● Swedish Midsummer party.
● Fourth of July celebration.
● Labor Day weekend party.
● Wine tasting dinner.
● Swedish Smörgåsbord.
● New Years Eve party.
● Special ethnic food nights.
● Memorial Day.

Local Store Marketing

● Make a brochure for the large hotels and popular bed & breakfast establishments in town to
provide to their guests, containing interior pictures of our restaurant, menus and prices.
 ● There are several nursing homes in the city of Long Branch. We will approach them to sponsor
meals for the elderly. This will offer us higher visibility to a group that may not be as mobile and
we'll be contributing to the community in a material way. Word-of-mouth referral is very
powerful and particularly amongst the elderly to both their peers and their extended families.

Local Media

● Newspaper campaign - Placing several large ads throughout the month to deliver our concept to
local area.
● Direct mail piece - Containing interior pictures of our restaurant, our menu, "Theme Nights,"
catering and an explanation of our concept.
● Website
● Target marketing to businesses for regular business lunch and dinner entertaining.

Read more:
http://www.bplans.com/fine_dining_restaurant_business_plan/strategy_and_implementation_summary_fc
.php#ixzz1HvzhfAA8

Market Analysis Summary

The market can be divided into two market segments, families and individuals. Families will
comprise the majority of dinner time business with individuals making up the majority of lunch
time business.
Kona-Q will be operating within the fast-casual niche of the restaurant industry. They will be
competing against other segments within the industry such as fast food as well as more
traditional sit down restaurants.
4.1 Target Market Segment Strategy
Kona-Q will be focusing on families and individuals for several specific reasons. Most dinner
service is for families.
As more households become two income families, the adults have less time to prepare meals.
Going out to dinner eliminates the need to prepare a meal and offers time to catch up with each
other.
The lunch business is driven by individuals. Many go out to lunch to get out of the work setting.
Others have business meetings at lunch. This creates a large market of potential customers that is
especially attractive.
4.2 Market Segmentation
The market has been segmented into two distinct groups.
Families: forecasted to contribute 67% of the dinner time revenue.

● Have 2.4 children

● >$50K in household income
● 67% have an undergraduate degree
● 26% have graduate level coursework
● Go out to eat 1.6 times a week
● Dinners out are used as a meal replacement since neither parent has time to cook a meal at home
 ● Sophisticated families that live within three miles of the site

Individuals: comprise 69% of the lunch time revenue.

● Ages 19-47
● Individual income average is $36,000
● 72% of the individuals over 23 have an undergraduate education
● Eat out 2.3 times a week
● Young professionals that live near the location
● Shoppers who patronize the nearby high rent stores

Market Analysis
2003 2004 2005 2006 2007
Potential Customers Growth CAGR
Families 9% 26,585 28,978 31,586 34,429 37,528 9.00%
Individuals 8% 33,654 36,346 39,254 42,394 45,786 8.00%
Total 8.45% 60,239 65,324 70,840 76,823 83,314 8.45%

4.3 Service Business Analysis

Kona-Q operates within the large restaurant industry. While the industry has its upswings and
downturns, the variance is less than the economy itself. People need to eat, they can eat in and
save money, but the convenience of dining out creates a significant incentive. This is not to
suggest that restaurants are recession proof, they are less affected by the general state of the
economy.
Within the restaurant industry there are several different segments:

● Fast food: McDonalds, Burger King

● Pizza: delivery and dine in
● Buffets: all you can eat
● Lounges: combining food and alcohol
● Fine dining: typically at the highest price point
● Fast-casual: combination of fast service and sit down dining
Kona-Q operates within the relatively new fast-casual segment. This segment has grown in
response to the increased need for quality food, in a sit down environment, but with fast service.
This is a recognition that many of the customers are dining out because they do not have the time
to cook themselves.
4.3.1 Competition and Buying Patterns
Kona-Q faces competition from a variety of competitors:

● Fast food: Offers the convenience of fast service. The food product is not competitive, but people
are often willing to sacrifice quality for convenience.
● Take out: Take away service allows a customer to enjoy already prepared food in their home.
● Sit down dining: For customers that have the time to have a leisurely meal. Food service takes
longer and the menu options are more extensive.
● Sandwich shops: Considered to be part of the fast food segment, they are a direct competitor of
Kona-Q as their food product is more healthy than the fried alternatives of fast food. This
competition comes primarily during lunch hours.
● Grocery markets: Serving prepared foods.

Customer buying patterns typically revolve around several different factors:

● Location: The restaurant is located near to work or home.

● Convenience: People eat out as it is quicker than preparing a meal themselves. Factors of
convenience relative to sit down restaurants are the time it takes to be seated, served, and the
hours of operation.
● Quality: The menu items must meet minimum levels of quality for people to be willing to spend
money on the food, particularly when there are so many different options available.

Read more:
http://www.bplans.com/healthy_restaurant_business_plan/market_analysis_summary_fc.cfm#ixzz1Hw2k
XHWT

Market Analysis Summary

We have three main markets:

● People who work in the downtown area during the day, who will be looking for walk-in good
food and convenience for late breakfast and lunch.

● Surrounding businesses looking for phone-in lunch for business meetings.

● Workers with families looking for take-out food to take home for family dinner at the end of the
workday.  
Each of these market segments consists of people who either work in the downtown area or flow
through this area during the normal work week.  As such, there will be a undetermined
percentage of each market that will be seeking an eating establishment that will meet the
requirements of  healthy food, fast service, and pleasant atmosphere. Furthermore, New World
Deli will cater to the growing trend of middle-class professionals who seek a differing cuisine
than that of the established food chains.
4.1 Market Segmentation
The total potential market in units is shown in the following table and chart, by type of market
point. 

Market Analysis
Year 1 Year 2 Year 3 Year 4 Year 5
Potential Customers Growth CAGR
Local businesses 0% 500 500 500 500 500 0.00%
Local workers 2% 20,000 20,400 20,808 21,224 21,648 2.00%
Other downtown traffic 1% 15,000 15,150 15,302 15,455 15,610 1.00%
Total 1.55% 35,500 36,050 36,610 37,179 37,758 1.55%

4.2 Target Market Segment Strategy

For the business market we need to focus on specific companies with specific opportunities. For
individuals we need to lever off word-of-mouth recommendations, probably depending on
business customers.
The business market has the potential of providing large volume sales to the company during the
peak hours of 11 a.m. to 2 p.m., both through small groups of business people visiting NWD
and delivery orders. Satisfaction of this group will provide a vital long-term revenue stream. For
the business market, the company plans to do specific target marketing through flyers, business
discounts, billboards, and creating a record of fast delivery.
For the individual groups seeking breakfast or lunch downtown, or take-home meals, it is
necessary for the company to build an effective word-of-mouth marketing strategy. The company
will do this slowly, realizing that much of this will grow from its business market. The company
is also planning on doing a number of joint marketing efforts with other local companies such as
the production and distribution of a referral book to be given to various individuals. This in turn
would help to drive our word-of-mouth marketing efforts.
4.2.1 Market Trends
One of the most important recent trends in eating is the rise of interest in consuming healthier
foods. The best known example of this is the move toward organic foodstuffs. NWD realizes that
there is a significant percentage of the population in Western Oregon that is demanding more and
more naturally grown, organic meats and vegetables and the company is well positioned to take
advantage of this change. Ms. Ericson has already concluded preliminary deals with organic
growers and suppliers that will allow the company to take advantage of this new market need.
4.2.2 Market Needs
As stated before, customers desire fast, healthy food that will appeal to their aesthetic tastes and
is provided in a comfortable atmosphere. In addition, they desire a memorable dining experience
that provides them with the chance to relax in the middle of the day. All of this needs to be
delivered to the customer with the least amount of hassle. Furthermore, customers will also need
a facility that can provide them with delicious, convenient take-home meals when there is no
opportunity to cook at home.
4.2.3 Market Growth
We have no indication of market growth in this pulverized and diffuse market. No statistics are
available for the local food industry in Eugene. What we do know is that there is growth
potential, and plenty of potential market for the right combination of service, quality and choice.
4.3 Service Business Analysis
The restaurant industry is highly fragmented and competitive. Each company within this field
has low capital costs and low margins, which create this high intensity of competition.
Suppliers have a great deal of power in setting and negotiating the prices of their products and
services to the smaller eating establishments. This is due to the fact that the suppliers who absorb
the greatest amounts of cash from "mom and Pop" outfits are large food distribution companies
such as General Foods. These companies are more consolidated than the restaurant industry,
have deeper pockets, an almost limitless number of substitute customers, and finally they are the
single most important supplier to New World Deli's industry. Therefore, these companies can set
whatever price they wish to. Furthermore, labor is a supplier in this industry as well, and salaries
for such individuals are well known and not very flexible.
There also exists a very high degree of rivalry among firms due to the perceived overcapacity in
this field. The larger companies often have cost advantages due to economies of scale that allow
them to outcompete smaller rivals.
The barriers to entry and exit are very low in this industry. Switching costs are virtually
non-existent and the costs to entry and exist the market are low. The large number of competitors
in this field including substitutes such as Mcdonald's, Subway Sandwiches, and Coco's mean that
the pricing for such services are very competitive. The only way to have an advantage in this
industry is either a low cost leadership principal applied aggressively to all aspects of the
business or to differentiate the entire eating experience through better and more unique food and
to build up customer relations to a point where the switching costs are raised.
4.3.1 Competition and Buying Patterns

● Location is critical to success.  Proximity to workers is very important, so is convenient parking

for the end-of-workday traffic stopping to pick up takeout dishes.
● Price is not very sensitive as long as we are not too high. Low price or lowest price is not
essential. Many target customers mistrust low price in a deli.
● Quality of food matters.  If the price isn't too high and the food is good, we'll have growth
through repeat business.
● Focus is an advantage; focusing on Pacific Rim food will draw customers from the competition.   

4.3.2 Main Competitors

In the immediate, downtown area, there are five main competitors. This includes Subway
Sandwiches, Cleo's Sandwich shop, McDonalds, Taco Del Mar, and Famous American Deli.
The established chains, Subway and McDonalds have much more of a national focus and the
individual managers have little or no ability to adapt to local desires. In addition, these outlets are
franchised to individual owners. This method of franchising often leads to friction between the
corporate office and the local owners that inhibits efficiency, cleanliness and other aspects.
However, these chains also have the ability to cut prices at will, and have established and secure
relations with their suppliers.
The more local stores such as Cleo's sandwich shop and Taco Del Mar are much more locally
oriented. However neither company has particularly deep pockets that provide for growth.
4.3.3 Business Participants
The restaurant industry is "pulverized" in other words, it consists of an almost infinite number of
companies from the small "mom and pop" style to the national chains.

Read more:
http://www.bplans.com/deli_restaurant_business_plan/market_analysis_summary_fc.cfm#ixzz1Hw33337
F

Strategy and Implementation Summary

The main thrust of strategy is to lever our ideal location and specialized cuisine into higher
profits through sales volume and higher prices. We understand the underlying needs and give the
customer what they really need.
5.1 Marketing Strategy
Most of our marketing efforts have already been mentioned. Our marketing strategy focuses
mainly on making our existence known to the people working close to our location.  It also
depends on making our Northwest Pacific theme known to those same people.
We can focus on local marketing: our signage, a grand opening party, and flyers to local offices.
5.1.1 Promotion Strategy
The company plans to use local radio as one of the means for promotion. Ms. Ericson is
currently making arrangements to have a grand opening party that will include having a local
radio station participate and air it over the radio. In addition the company is planning to use
flyers to local businesses, direct mailers, billboards, etc. Billboards and radio will be used for the
first six months to establish customer awareness and product attractiveness. Mailers and flyers
will then be used to advertise sales promotions that will help bring in customers. One fortunate
aspect of the restaurant business is that once a potential customer steps into the establishment,
the chances of purchase are very high. So the promotional plan will be to draw people in to the
deli and then seek to provide them with a superior eating experience.
5.1.2 Positioning Statement
New World Deli's most important market segment, given its location will be the business
segment. Customers in this segment have a limited amount of time for lunch or require a quick
pick-up dinner with no hassles. Furthermore, these customers need to be able to purchase their
food with a wide variety of different monetary tools. This includes credit and debit cards, cash
and checks. Finally,  many of the local business people will wish to accommodate the desires of
out-of-town colleagues who desire to sample some of the local cuisine. New World Deli will
satisfy these demands better than much of the local competition through delivery to nearby
offices, accepting most forms of payment, a rigorous plan to maximize speed of delivery, and of
course our unique menu.

Read more:
http://www.bplans.com/deli_restaurant_business_plan/strategy_and_implementation_summary_fc.cfm#ix
zz1Hw3LAMgj
Market Analysis
Potential Growth 2011
Customers
Workers 5%
Students 2%
Tourists .5%
Families 2.5%
Total 10%