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Paramjit Sin Assessment task 1 Interpret market trends and developments 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 gourmet pasta business?
Answer---
Demographics & Lifestyle Analysis---according to the information
collected from Zeldo’s gourmet gourmet pasta marketing plan; Graceville has a of potential in terms of market growth due to large %age of families, growing area at 10% per year and increasing household income. income.
Consumer survey----In addition to this, More than 53% people eat out
several times a week which seems good for a growing business. Major
of people in Graceville prefer high quality and better presentation of fo
Sign upbusiness to vote on this title ; Zeldo’ Business owner survey — according according to annual reports
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gourmet pasta better customer service, family based dine in environme and competitive price.
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Paramjit Sin
Zeldo’s gourmet gourmet pasta still lacks brand awareness (a lot of people don’ 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 the basis for reviewing the Zeldo’s gourmet pasta performa nce.
Answer--- quality Answer--- quality analysis of Comparative market for market for Zeldo’s gourmet pasta 1. SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis for business---Strengths
Weaknesses
High Quality ingredients
Quick and quality service
quality innovation in their
Location is bright and clean in
dishes
terms of hygiene
Struggles to continue with t
Take away orders lacks use
advanced technology such a online ordering which Sign up to vote on this title
provi
quality and quick customer Useful
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Paramjit Sin staff in comparison to other
a number of established
competitors
gourmet pasta restaurant
chains coming to Graceville increase the competition
In Graceville ,the market trend is going in favour of Zeldo’s gourmet past
as the number of customers who prefer high quality ingredients is increasi 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
your menu the more customers will be interested in visiting your restauran You're Reading a Preview
regularly due to your innovation.
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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.
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Answer — Competitors---- Due to increase in area growth, increase in numbe
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Paramjit Sin National competitors ---
Pasta buzz
Pasta bite
Pasta mia
Threats – variety and
Threats — use of high
Threats — fresh food
innovation (they allow
quality ingredients
innovative dishes at
customer to assemble their
Opportunity — high price Opportunity — exces
dish as they wish)
and limited selection of
employee turnover i
Opportunity — food quality
dishes.
coparison to our reli
is average in comparison.
honest staff
growth rate You're Reading a Preview Unlock full access with a free trial.
Stella's
Peri past
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Niccolo
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Paramjit Sin Assessment task 2 Interpret market trends and developments
Read case study of Zeldo’s gourmet pasta and answer the followin 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
25650
25650
25650
25650
25650
You're Reading a Preview 17200 19350
21500
23650
47150
49300
2850
5700
43%
43%
costs Variable
15050
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costs
Download Trial 42850 With Free 45000
Total cost
40700
profit
-5700
-2850
Variable
43%
43%
0 43%
Sign up to vote on this title 60000 50000
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Paramjit Sin The above given break-even analysis indicates that $45000 will be needed monthly to reach break-even point. The break-even point is a
special case of Target Income Sales, where Target Income is 0 (breaki even). This is very important for financial analysis.
Sales and cost forecast Sales
2009
2010
2011
individuals
120000
180000
198000
Families
150000
195000
292000
Take away
180000
216000
324000
Total sales
450000
591000
824500
Cost of sales
42000
You're Reading a Preview
63000
69300
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for
individuals
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families
52500
68250
102375
Take away
63000
75600
113400
Subtotal direct
157500
206850
285075
Sign up to vote on this title
cost of sales Gross profit
292500(65%)
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384150(65%)
529425(65%)
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Paramjit Sin 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 advantage over them.
Sales comparison of different customer group 45000 40000 35000 30000
You're Reading a Preview
25000
individu
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take aw
20000
family
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15000 10000 5000 0 2009
2010
2011
2012
2013
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Not useful Useful The takeaway customer sales and growth seems very slow while the fami
customers growth is increasing in a good manner. The problem of poor sa
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Paramjit Sin 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 You're Reading a Preview
lacks brand equity Unlock full access with a free trial.
lack of advertisement
less innovation in terms of food
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4. Utilize the forecasting techniques to analyse the market data to identify existing and emerging market needs.
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Answer — Market research
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Paramjit Sin
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 M ark et 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.
You're Reading a Preview
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M ar ket needs Download With Free Trial
Zeldo’s gourmet pasta business success seems to be the result of
understanding the needs of their loyal as well as random customers. Th
must provide wide variety of choice, great customer service, best locat
and accessibility as well as competitive prices in comparison totheir lo competitors.
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Paramjit Sin
Assessment task 3 Interpret market trends and developments Read case study of Zeldo’s gourmet pasta and answer the following:
Interpret market trends and developments You're Reading a Preview Unlock full access with a free trial.
Final market analysis reportWith forFree Zeldo’s Download Trial gourmet
Pasta in Graceville to initiate business Sign up to vote on this title
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Paramjit Sin
1. Introduction
Zeldo’s gourmet pasta restaurant will be the leading gourmet pasta restauran Graceville which has huge opportunity in terms for market growth due its
rapidly growing area, high income earning residents and who love to eat outs people. Zeldo’s gourmet pasta restaurant want to analyse the market trends
,check market growth and know about customer needs with changing trendin 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
You're Reading a Preview
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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
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profitability
Decrease variable costs associated with food production Sign up to vote on this title
Other Objectives
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Paramjit Sin
3. Statistical analysis of market data
Demographics & L if estyle Anal ysis
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 increasin household income.
----In addition to this, More than 53% people eat out Consumer sur vey several times a week which seems good for a growing business. In lot of surveys; people admit that they want to enjoy meals without the hassle of
You're Reading a Preview making it by themselves. Majority of people in Graceville prefer high qua Unlock full access with a free trial.
and better presentation of food.
Download With Freepasta Trial stands higher in front of Bu siness owner sur vey -- Zeldo’s gourmet
other competitors due to a lot of benefits providing to their customers such
as wide varieties of fresh pasta, better customer service, family based dine environment and competitive price.
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F ocus Groups --- young professionals who live to close location. People Useful Not useful
ageing from 25-50 are the customer age group; who makes 53% of the loc
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Paramjit Sin
4. Interpretation of market trends and developments M ark et tr ends
It is found out that customer these days are appreciate quality over quantity a
number of customers is increasing; who prefer high quality ingredients in the 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 presente Last but not the least, large variety in the menu makes a lot of people happy these days. You're Reading a Preview
M arket needs
Unlock full access with a free trial.
Download Free to Trial Zeldo’s gourmet pasta business successWith seems be the result of understandi
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 w as competitive prices in comparison to their local competitors. M arket growth
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Global pasta market has reached $10 billion dollars .pasta sales are assumed
increase at least 10% by the upcoming years. This market growth could be th
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Paramjit Sin 5. Analysis of market trends on potential impact on business and comparative market information SWOT analysis Strengths
Weaknesses
High Quality ingredients
Lacks brand quality equity
Quick and quality service
Struggles to continue with
Location is bright and clean in
quality innovation in their
terms of hygiene
dishes
High quality dishes in terms of
Take away orders lacks us
of advanced technology su
creativity
You're Reading a Preview
as online ordering which
Unlock full access with a free trial.
provides quality and quick
Download With Free Trialcustomer feedback
Opportunities
Increase in number of
Threats
customers who prefer quality over quantity
Better customer service quality
Competition from local restaurants who lures
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customers with large wine
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selection and salads in
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Paramjit Sin
Impact---Due to the increasing trend of customer’s preference for high quali
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 growt
seems very slow according to growth and share analysis) which has proved to be big drawbacks in terms of business growth for the restaurant. You're Reading a Preview
Competition
National competitors ---
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Download With Free Trial
Pasta buzz
Pasta bite
Pasta mia
Threats – variety and
Threats — use of high
Threats — fresh food
innovation (they allow
quality ingredients
innovative dishes at
customer to assemble their
exces Opportunity — high price Opportunity — Sign up to vote on this title
dish as they wish)
Not useful turnover i Useful and limited selection of employee
Opportunity — food quality
dishes.
coparison to our reli
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Paramjit Sin 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% becom
our major competitor while the other competitors have less than 13% of mark 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 You're Reading a Preview
great location of high income people living nearby Unlock full access with a free trial.
enhanced presentation
Download With Free Trial 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
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7. Utilize forecasting techniques to forecast market needs
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Paramjit Sin Competitive analysis
Patronise local restaurants to gather timely information about service
offerings as well as involve in an informal fraternal organisation. Beco
member of a restaurant association to gain access for published ongoin 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
Fixed
25650
You're Reading a Preview
40000
45000
50000
55000
25650
25650
25650
25650
15050
17200
19350
21500
23650
Total cost
40700
42850
45000
47150
49300
profit
-5700
-2850
Variable
43%
43%
costs Variable
Unlock full access with a free trial.
Download With Free Trial
costs Sign up to vote on this title
0Useful
43%
2850 Not useful 43%
5700 43%
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Paramjit Sin 60000
50000
40000
30000
20000
10000
0 1
2
3
4
5
You're analysis Reading a indicates Preview that $45000 will be The above given break-even Unlock full access with a free trial. needed monthly to reach break-even point.
Download With Free Trial
Sales and cost forecast
The first year will be used to get restaurant running, customer awarene
Sign up to vote on this title and making long-term (loyal) customers. For second year it is assumed
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that the business sales will progress and profit will gradually increase b beginning of year two.
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Paramjit Sin for
individuals families
52500
68250
102375
Take away
63000
75600
113400
Subtotal direct
157500
206850
285075
292500(65%)
384150(65%)
529425(65%)
cost of sales Gross profit
Marketing Expense forecast
Marketing expenses make a huge impact in the first year on the budget plan as they are ramped up in first year and needed to be budgeted. You're Reading a Preview
According to marketing expense budget the percentage of marketing Unlock full access with a free trial.
expenses such as direct mail, bmag ads and promotions is going to Download With Free Trial
decrease due to the customer awareness of restaurant as well as gather information about market trends and developments. Ready-made marketing will periodically examine and validate marketing costs and ongoing sales for forecasting. Sign up to vote on this title
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Paramjit Sin 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 experienc 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 a people who prefer to eat food at home rather than outside.
10. References----
http://marketresearch.about.com/od/Market_Research_Basics/a/Marke Research-101-Data-Analysis.htm
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analysis/#_Market_Analysis_Process
http://en.wikipedia.org/wiki/Turnover_(employment)
http://www.businesstrainingcollege.com/business/How-do-I-Write-aBusiness-Report.htm Sign up to vote on this title
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http://www.cifor.org/lpf/docs/Palawan/3_8_Annex%207.%20Market%
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