MARKET ANALYSIS
The Overall Market
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Changes in the Market
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Market Segments
Our Market Segment: “Fast-Casual”
Market share percentage: 50%
- We compete in a category of dining called “fast-casual”- the fastest growing segment of the restaurant industry.
- The fast-casual market pulls together the finer qualities of multiple restaurant sectors. It takes the fast from fast-food, the quality and ambiance of casual dining, and adds a focus on health and freshness, all at an average ticket price below $12.
- Because of these appealing characteristics, sales for the market have grown at an average of 12.5% per year since 2001.
Number of customers expected:
- Population estimation based on renters/homeowners and local business employees in downtown Salt Lake City is: 24,276 renters/homeowners +30,000 estimated business employees based off businesses and customers in our 2 block radius which equal 54,276.
- Estimated potential customers in our Target Market Area: if we estimate that 5% of above mentioned individuals are interested in City Salads, we assume around 2,750 customers are at our disposal.
- This number is just within a 2 block radius! If we considered a 10 mile radius like most companies do this number would be even greater. This shows us that we can expect customers coming into our doors every-day, every-hour we are open!
Market share percentage: 50%
- Estimation of total amount of goods sold in geographical area from the following companies: Carl’s Jr., Green Burrito, Chick-fil-A, McDonalds, Whole Foods & Subway = around $1 million estimated goods sold (only including specific menu items like salads and things directly competing with City Salads in this geographical area.)
- Ratio of total goods provided by City Salads to total number goods: If annually, in our market area, people spend a total of $100,000 million on goods similar to City Salads product, and if our business does $500,000 annually in sales, (assuming we sell 250 salads a day at 8 dollars * by a month and then * yearly = estimated $576,000 yearly gross profit, being open 7 days a week, not including beverages and add-on's), then we have a 50 percent market share.
- However, if you look at those few we are competing with and how different and unique our company is, we most likely will have a greater Market Share percentage once we enter the market and can really compare the numbers.
Target Market and Customers
Customer Groups & Demographics:
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Customer Characteristics and Needs
The Customer
The primary customer base for City Salads are between the ages of 21 and 54. The customer is slightly older than the typical fast-food customer mainly due to their desire for a more healthy menu without sacrificing speed. However, young adults will be drawn to our relaxed atmosphere and hipster-green effect in the urban community and thus will still be considered a client base. These customers desire a…
Community Profile
Business Climate
Targeted Customers Within Salt Lake City, Utah, City Salads will target three primary customer segments. These are as follows:
Data shows that City Creek has the highest volume of foot traffic, of all locations surveyed, followed by Exchange Place, Regent Street, and Gallivan Ave. Examining how the different volumes relate to the built elements of the streets, we found that City Creek offers more pedestrian-friendly elements than any other street and has the highest volume of people. http://www.walkablesaltlake.com/wp-content/uploads/2012/09/121012-Pedestrian-Count-Survey-Report-FINAL_reduced.pdf |
Research (STP)
Segmentation We have identified many different groups eating out in and around the Salt Lake Valley. Listed below are the groups identified.
Target Marketing Based on surveys conducted, as well as data collected form several public forums, City Salads has decided to focus our marketing strategy on the 21-54 year old residents & commuters group. Through data collected we have understood this group to be a substantial number of persons. It is the goal to grow and expand, as quickly as possible, and through marketing to the largest group segmented, this will be possible. The fact that City Salads was born based on the culture and factors that appeal to our targeted market is definitely a bonus as a brand overhaul would be out of the question due to fund availability. Positioning The way that City Salads will easily differentiate itself from its competitors will be, mainly, through pushing the idea that our name, City Salads, suggests. Salads is a delicious health option and will put us ahead of our competitors as health is becoming the new focus and trend with consumers. Don't forget our strong pull on recyclable and sustainable products! Promoting the idea that eating healthy is cheap and easy to do at our restaurants is just the hat that contains the rest of our tricks. Listed below are examples.
Critical Needs:
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Customer Buying Decisions
Summary
The trend is health, sustainability, green and local. City Salads will deliver all these things with excellence. This large un-tapped client base is available only if we we make it convenient. Convenience is provided by City Salads by our downtown location conducive to all downtown employees, walker-by's and tourists. City Salads development and immediate expansion is wanted as well as needed. We will benefit financially from taking steps to expand physically.
Recommending:
The trend is health, sustainability, green and local. City Salads will deliver all these things with excellence. This large un-tapped client base is available only if we we make it convenient. Convenience is provided by City Salads by our downtown location conducive to all downtown employees, walker-by's and tourists. City Salads development and immediate expansion is wanted as well as needed. We will benefit financially from taking steps to expand physically.
Recommending:
- Immediate expansion.
- Partner with our marketing division to promote our mantra, positioning ourselves in the eyes of our target market favorably.
- Organize a committee to discuss location(s) of future City Salad locations.
- Design a marketing and advertising campaign in an effort to gain a majority of the market share.