Unit 37 P2

Target Market
To identify the target market I will have to segment the market, doing this will break the market into
groups that can be easily targeted. The main reason for targeting a market is to gain a greater
understanding of the customers that my business will appeal to. Furthermore, it will allow me to
advertise and design my business based on my target market. One of my ultimate goals will be to
satisfy my target market.

The market can be segmented in a number of ways:

 Age – Specific age or age groups, e.g. teenagers

 Geographical/Regional – specific to location e.g. London
 Religion/Ethnicity – specific to a religion e.g. Judaism
 Lifestyle – specific to a lifestyle e.g. student
 Income – specific to income e.g. high earners
 Gender – specific to a gender e.g. male

The market segment which I targeted is lifestyle, students and workers fit into this category.
Students and workers on their lunch break who can quickly and conveniently enter my shop and
take away a healthy lunch. As a fast food outlet, but a healthy one, my chicken shop can appeal to
adults as well as teenagers. It therefore appeals to an age range from 14-25. Because of the shops
healthy food, it can also appeal to a more females, which other chicken shops rarely do.
Furthermore, because my chicken shop will be Halal, it will also appeal to members of the Islamic
community.

Rehman Mahmood
Unit 37 P2

Competition
This is the location I have decided to set up my new business. There is some competition from
“Boomshakes” the milkshake retailing store. However, this store specialises in drinks, although it
does sell snacks, it does not have the capacity or volumes to compete with a restaurant or take
away. Both the “Regency Club” and “Satyam Sweet Mart” appeal to a very specific market of Asians
in the local areas. However, these restaurants are rarely used by students or workers during their
lunch break. Therefore, a new chicken shop such as mine opening in this area will have very little
competition. Cumberland Cakebox makes cakes for special occasions such as weddings and
birthdays, it does not compete with fast food outlets or restaurants.

The nearest competitor is located in Kingsbury, which is a short train journey away. The competitor
in Kingsbury is Sam’s chicken, a franchise dedicated to providing fried chicken at very competitive
prices. However, Kingsbury is too far away for local students and workers to travel to, therefore my
business will have the majority of the market in the local area. Furthermore, my business has a
competitive edge over Sam’s because it provides a product in similar demand but in a healthier way
that is more appealing.

I have chosen to set up my business in Queensbury because there is no business similar to the one I
wish to introduce. As the only fast food outlet in Queensbury, my business will gain the majority of
the market share in the area. Another reason I chose Queensbury is because it has many bus routes
running through it and a very busy tube station. Therefore, many people on their journeys will pass
by my shop. This is good because it means my shop will be noticed by many people.

Rehman Mahmood
Unit 37 P2

Based on the Boomshakes menu, and feedback from people in the local area, food and snacks are
very expensive to buy from Boomshakes. It is very common for Boomshakes to receive customers for
its unique Milkshake products rather than their snack options.

Similarly, The Regency club menu is also expensive and is targeted at the Asian community.
Customers must book a table before they can dine at the restaurant.

Rehman Mahmood
Unit 37 P2

Name of Business Ownership Location Price Strengths Weaknesses

Boomshakes Private Queensbury Milkshakes=£3.75 Unique tasting Very high price
Limited Station Fries=£2.20 milkshakes. snacks that are
Company sold much cheaply
elsewhere. May
only get customer
for the unique
milkshake. It is
located further
down the road,
away from the bus
stop and tube
station. Therefore,
it is easily missed.
The Regency Club Private Queensbury Starter=£4.95 Provide high Appeal to dine in
Limited Station Main Course=£7+ quality dining customers rather
Company in a restaurant than the lunch
environment. time rush. Gets
most of its
business on the
weekends. Does
not have the
facility to produce
food as quickly as
a fast food outlet.
Satyam Sweet Private Queensbury Mithais=£3.50 Provide Indian Appeals to a very
Mart Limited Station Ice Cream=£2 and Asian specific market of
Company sweets for Asians. Customers
special only purchase on
occasions special occasions.
Do not have any
practical lunch
options.
Cumberland Private Queensbury Custom Provide High cost to
Cakebox Limited Station Cake=£20+ custom made produce cakes
Company cakes for which are only
special purchased for
occasions special occasions.
Do not in any way
compete with fast
food outlets or
restaurants.
In conclusion, none of the above businesses have the product range or capacity to compete with a
fast food outlet. The goods and services that they provide are very different to the type of fast food
restaurant I will introduce. The Regency club caters to customers who have booked tables, it does
not appeal to a student or worker that is looking for quick a lunch during their lunch break.
Boomshakes has a unique milkshake product but its small snack menu is overpriced, it relies mostly
on its milkshake sales. Parking in the Queensbury area is very poor, therefore the restaurant and
Boomshakes may suffer, however, a fast food outlet with a quick service will benefit because

Rehman Mahmood
Unit 37 P2

customers can conveniently take away. Therefore, if I opened my business in Queensbury, I will get
the majority of the customers.

Secondary research and market trends

There has been a growth in demand for chicken shops, the overall demand for fried chicken has
increased rapidly over the last 4 years. This has led to a huge increase in the number of chicken
shops opening each year. Therefore there is clearly a demand for this product. However, since the
food is sold cheaply in chicken shops and the biggest group of customers are students. There has
been negative attention to chicken shops in the media and news because of the unhealthy food they
sell. This has lead to an increase in popularity of restaurants that provide healthy alternatives to
fried chicken such as Nandos which has been chosen the best place to work in 2009. However, there
is no Nandos in the local area of Queensbury; therefore, a new healthy fast food outlet such as mine
will receive a lot of attention in the area.

Media Campaign against fast food and junk food

“People are looking for justification if they buy fast food – yes, we all want a quick, filling meal but
with pennies being harder to come by, we also want value for money – something that tastes good
but that we can justify on health grounds. The big fast food chains are rushing to point out that their
foods are healthier than we think – a case in point being recent KFC adverts showing a trainee ‘chef’
preparing the KFC chicken ‘fresh in today’ and showing a mountain of salad.”

http://www.fastfoodnation.co.uk/developments-fast-food-what-are-trends.html

“People in the UK are Europe's biggest fast food consumers, and the trend is that burger chains are
at the top of the list of desirable fast food outlets. The two major burger chains account for most of
the spending, and spending per head in 2008 is on target to beat that of 2007 according to research.
In 2007 figures showed that UK consumers spent £82 per head just in fast food restaurants and
burger chains – that doesn’t even take into account other types of fast food order such as Chinese,
Indian or Pizza. McDonald's opened its first restaurant here in 1974, and now more than 2.5 million
people in the UK are said to visit McDonald's every day.”

http://www.fastfoodnation.co.uk/fast-food-facts-figures.html

fast food’s reputation for being cheap, cheerful and filling – plus the idea of having a little affordable
treat, is creating a boom in sales where other businesses are losing out.

http://www.fastfoodnation.co.uk/facts-figures-recession-affecting-our-fast-food-habit.html

Rehman Mahmood
Unit 37 P2

Primary Research
For my primary research I gave out questionnaires in the Queensbury area where I plan to set up my
business. Using the results from the questionnaire I will gain a greater understanding of what
customers want from a fast food outlet in the area. I will also gain a greater understanding of
consumer demands and valuable information about competitors and the location. I decided to use
the stratified sampling technique to give out my questionnaires. Therefore, I gave most of the
questionnaires out during the lunch period to students and workers.

Questionnaire Questions:

1) Do you live in the local Queensbury area?

2) Do you work or study in the local area of Queensbury?
3) How often do you come to Queensbury for lunch?
4) Are there enough options of different lunch available in Queensbury?
5) How often do you visit Boomshakes?
6) How often do you visit the Regency Club?
7) How often do you visit the Satyam Sweet Mart?
8) Would you be interested in a new fast food outlet opening in Queensbury?
9) Are you conscious about eating healthy foods?
10) Would you be interested in a new healthy chicken shop opening in the area?

Methods of Research
Before conducting my research, I considered multiple different methods of research. Some of the
methods of research that I considered include:

 Focus Groups
 Questionnaires
 Interviews
 Surveys

Ultimately, I decided to create a questionnaire as my primary research. This is because

questionnaires with tick boxes for answers can be quickly completed by people and more questions
can be asked. Therefore, the questionnaire will give me a great amount of information.
Before I conducted the research, I also considered sampling techniques. Some of the sampling
techniques I considered include:

 Random Sampling
 Systematic Sampling
 Stratified Sampling
 Convenience Sampling
 Judgement Sampling
 Quota Sampling
 Snowball Sampling

Rehman Mahmood
Unit 37 P2

In the end, the sampling technique that I decided to use is stratified sampling. My target market
is students and workers. Therefore my sample is people who fit into the category of students
and workers. For my questionnaire I asked 20 people which are an adequate number of people
that will give me enough feedback. If the results I received were too varied, I would carry out my
research again with a larger sample in order to improve the accuracy and reliability.

Questionnaire
Please put a tick next to the answer that applies to you.

1) Which best describes your gender?

Male Female

2) How often do you come to Queensbury?

Never Rarely Sometimes Very Often

3) Are there enough options of different lunch available in Queensbury?

Yes No

4) How frequently do you eat fried chicken from takeaways?

Never Rarely Sometimes Very Often

5) On average, how much money do you spend in chicken shops?

Less than £5 £6-10 £11+

6) How often do you visit Boomshakes (Snack & Milkshake Bar located in Queensbury)?
Never Rarely Sometimes Very Often

7) How often do you visit the Regency Club (Restaurant located in Queensbury)?
Never Rarely Sometimes Very Often

8) How often do you visit the Satyam Sweet Mart (Store retailing Asian sweet products)?
Never Rarely Sometimes Very Often

9) Would you be interested in a new fast food outlet opening in Queensbury?

Yes No

10) Are you conscious about eating healthy foods?

Yes No

11) Would you be interested in a new healthy chicken shop opening in the area?
Yes No

Thank you for participating in this questionnaire

Rehman Mahmood
Unit 37 P2

Primary Research Results Analysis

1) Which best describes your gender?

This question was asked in the interest of fairness and to ensure that the results weren’t biased. 60%
of people questioned were male and 40% were female.

2) How often do you come to the Queensbury area?

70% of people said that they come to Queensbury very often and 30% said they only come to
Queensbury sometimes. This tells us that most of the people that come to Queensbury for lunch are
regulars and are therefore likely to be regular customers.

3) Are there enough options of different lunch available in Queensbury?

70% of people said there were not enough options of lunch available in Queensbury. This could
suggest that a new product such as mine would be welcome in the area.

4) How frequently do you eat fried chicken from takeaways

60% of people said that they eat fried chicken sometimes, 30% said that they eat it very often. 10%
said that they rarely eat fried chicken. This reconfirms that fried chicken is a popular food, but also
tells that there isn’t a fried chicken fast food outlet near enough, this is why there is a large
percentage that hasn’t tried fried chicken.

5) On average, how much money do you spend in chicken shops?

70% said that they spend less than £5 and 30% said that they spend between £6-10. This tells me
that pricing is important for fast food outlets in order to compete. It can also help me implement my
own pricing strategies based on this feedback.

6) How often do you visit Boomshakes?

50% of people said that they have never been to Boomshakes, another 50% of people said that they
rarely visit Boomshakes.

Rehman Mahmood
Unit 37 P2

7) How often do you visit the Regency Club?

Only 10% of people said that they have been to the Regency club, this is most likely because the
restaurant doesn’t appeal to students and workers.

8) How often do you visit the Satyam Sweet Mart?

Only 5% of the people I questioned have ever been to Satyam Sweet Mart, this is most likely because
it only caters for special Indian or Asian occasions.

9) Would you be interested in a new fast food outlet opening in Queensbury?

80% of people answered yes to this question, this is very encouraging because it suggests that my
new chicken shop will be welcome in the area. It also confirms that there is a gap in the market.

10) Are you conscious about eating healthy foods?

75% of people said that they were conscious about their health and eating healthy, this is a large
majority. Because my business serves healthier food, it will appeal to these people even more.

11) Would you be interested in a new healthy chicken shop opening in the area?

80% of people said that they would be interested if a new healthy chicken shop opened in the area.
This outlines that there is a clear demand for a new healthy fast food outlet in the area. Clearly this
is a gap in the market that my business could fill.

Rehman Mahmood