Question-1 You want to open the restaurant and need to conduct a market study keeping the content

covered so far in mind – (5 Marks)

1. Choose a market research strategy and conduct market research. Share findings (Can be
fictional, focus should be proper implementation of right methodology)
2. Study Market environment impacting your decision to open a restaurant (SWOT / PESTLE)
3. Conduct a competition analysis and share findings ( Study Market size/market share )
4. Identify Target Market (Demographic/ Psychographic, Behavior/ Geographical)
Who is your audience, what are they looking for, and how you will create brand awareness

Answer-

1. Market Research Strategy:

I will use a combination of primary and secondary research methods:

Primary Research: Involves gathering first-hand information. I conduct surveys, interviews and focus
groups to understand customer preferences, expectations and eating habits.

Secondary Research: This involves analyzing existing data from industry reports, government statistics,
and online sources to gain information about market trends, competitors, and potential locations.

2. SWOT and PESTLE analyses of the market environment:

SWOT evaluation:

 Strengths: Experienced chefs, a distinctive menu, a great location, and solid culinary
understanding.
 Limited brand recognition, a large initial investment, and prospective rivalry are weaknesses.
 Opportunities include new food trends, rising demand for certain cuisines, and undiscovered
market sectors.
 Threats include the state of the economy, shifting consumer tastes, and fierce competition.

PESTLE Evaluation:

 Political: Rules, licenses, and permits that have an impact on the food business.
 Economic: Spending patterns, inflation, and available cash.
 Sociocultural: Dietary habits, trends, and cultural preferences.
 Technology includes kitchen automation, e-commerce platforms, and point-of-sale systems.
 Legislation: rules governing food safety, labor legislation, and health and safety requirements.
 Environment: Energy efficiency, trash management, and sustainable resources.

3. Analysis of the competition:

 Market Size: There are roughly 50 restaurants in this area as a whole. This consists of a mixture
of fast-food restaurants, a few specialized eateries, and locations for informal eating.
 industry Share: Due to their low prices and prompt service, fast food chains dominate this
industry with roughly 40% of the total.
 About 30% of consumers frequent casual eating establishments, which serve groups and families
seeking a laid-back ambiance. The remaining 30% are made up of premium and specialty
restaurants, like the one I'm developing. This market serves a more affluent clientele that values
distinctive and superior eating occasions.

 Principal rivals: "Taste of Elegance" and "Global Flavors Bistro" are the two main rivals in this
market. In the upmarket dining sector, they both hold a market share of roughly 15%.
The classic European food and opulent setting of "Taste of Elegance" are well-known. Affluent
couples and business professionals make up the majority of their devoted consumer base.
The menu of "Global Flavors Bistro" is extensive and draws inspiration from many different
cultures. They draw a diverse crowd of tourists, families, and foodies.
Competitor advantages:
The restaurants "Taste of Elegance" and "Global Flavors Bistro" have both been in business for
more than five years and have built excellent brand reputations.
They feature a distinctive menu and well-trained staff members who provide top-notch
customer service.
Both have substantial online presences thanks to active social media accounts and good ratings
on online review sites.

 Negative Competitors' Qualities: Some patrons have complained that the prices at these
establishments can be on the expensive side, which may put off diners on a tight budget.
Both rivals make only a little amount of extra-local marketing efforts.
What It Implies: This analysis shows that although the premium dining market is competitive, it
is not oversaturated. There is room for a new participant, particularly one who offers a novel and
distinctive viewpoint on the dining experience.

The benefits and drawbacks of my competitors' strategies help me position my restaurant

successfully.