The Competitiveness in the Industry of Engagement - Assignment Example

Marketing and operations plan Marketing research- Why? The essence of establish a critical and expansiveknowledge of the market in any business engagement is a core determining factor for the success of the business. The competitiveness in the industry of engagement as well as the legal and environmental factors that influence the success of the business are key elements for consideration; hence, the need to develop a complete understanding of the industry, and create a plan for presenting the business product to the market successfully. Therefore, a systematic engagement of the research into the market will give this business venture the platform to engage the market accordingly, to its prosperity. Market research - How? In approaching the course of studying the market successfully, the research into the market will entail engaging both secondary and primary sources of data. The secondary approach entails covering the publications on the industry that reflect the factors influencing the market. Additionally, the primary sources entail conducting individual research to collect data on the market. However, primary data is expensive to achieve, as such, this section will rely extensively on the secondary data on the market. The primary sources engaged include sample interviews and questionnaires on the niche of the business to get firsthand expectation of the market, for successful planning. Economics The US fast foods industry is on the rise, with high density of businesses offering food services including bakery options. The total market is vast, entailing a population of about 500,000 people at the local town setting where the first venture will be located (Giovannucci, Barham & Pirog, 2010). Additionally, the business expects to expand significantly and own a share of the national market in bakery options. Thus, we expect to own at least 6% of the market share as we launch and grow accordingly to about 15% to remain equally competitive. The market has a high demand for bakery products, considering the high consumption of the products. the consumer preferences for bakery products remains high for low sugar content products, considering recent developments requiring he regulation of sugar content in products due to increasing cases of obesity (Möller, 2006). Nonetheless, the business will engage all legal measures to establish its product and grow accordingly as there is a notable potential of capitalizing on the local market size accordingly. The aspect of high capital costs, training skills and marketing and consumer acceptance may prove challenging to the business entry. Nonetheless, as a startup until, we have factored a considerable budget to engage accordingly all costs as well as, facilitate effective marketing of the business for successful brand recognition. Changing government regulation requiring the regulation of sugar level are considered in the baking process Product The bakery will offer a broad compilation of freshly prepared bakery and pastry products, in all its operations. The entity menu entails the use of locally available materials including the baking ingredients and technical skill accordingly to establish bakery and pastry products that are fresh and sweet to the taste of the customers. The products are baked on the belief that a healthy and organic consideration of food can have notable impact on customer health (Giovannucci, Barham & Pirog, 2010). Thus, the compilation of the products will consider all health factors to create bakery products such as cakes, biscuits and breads among other considerable baking products. the business engagement will also facilitate after sales products that cover and engage the customers accordingly, for instance, delivery options are available as well as, refund-policy when there is a realistic course for refund. Through such engagements, the business will gain and capture a significant share of its target market, and potential in growth. Customers The business focuses on a wilder composition of customers, considering the context of its products and the expected share in market growth. The business will focus on the customers commuting past the busy street daily, all people working around the location of the business as well as those living in the local area. The business seeks to capture all customer hat believe in value of nutritiously baked products that honor the health considerations of low sugar content. Additionally, the business focuses on the people of the age bracket from 16 years to 40 years, both students and working class. The earning of the customer base ranges above 15,000 dollars a year, which gives the business a considerable growth chances. Both genders are all factored in the business products, with a notable preference of the female gender since they have more liking for baked products. This consideration of the customer Competition Table 1: Competitive Analysis FACTOR Me Strength Weakness Competitor A Competitor B Importance to Customer Products Cakes, biscuits and bread High quality products factoring health considerations It’s a starting business, needs to market widely Cakes, biscuits and bread Cakes, biscuits and bread 2 FACTOR Me Strength Weakness Competitor A Competitor B Importance to Customer Price $1 to $4 range worth of price per item Medium, affordable for target market Convincing the market $1-$5 Per item $1-$6 per item 2 Quality High Significant consideration Technology to achieve the quality high High 1 Selection Notably considerable Potential location of premises It is a startup business Potential location of business premise Potential location of business premise 3 Service Quality personalized service Preference of after services Maintaining quality Established quality in the market Established quality service 1 Reliability Provide reliable products and service Highly reliable Not gained customer preference yet Already established Notable product delivery service 3 Stability Gaining stability High capital input to establish stability Shifting industry regulation and trends Already established stability Already established stability 4 Expertise Trained and skilled personnel High quality products from the expertise Maintaining the expertise is challenging High expertise personnel High expertise personnel 2 Company Reputation Not established yet The chance to create the reputation It will take time Notably good reputation Issues with public image 3 Location Strategic premises Good placing Sustaining the customer base Strategic premises Strategic premises 1 Appearance Modern setting with technical quality Gain customer preference fast Maintaining the appearance Serene setting Notably peaceful and clean business environment 3 Sales Method Promotional services Create customer awareness fast Not sustainable for long term Already established Offering after services 3 Credit Policies none No accumulation of debts Customer spending implications none none 5 Advertising Technology use, social media and print media Reach a vast target customer composition costly Social media and print media Print media 2 Image Quality public image Customer preference Challenge maintaining High esteem from customers Has issues of public image 2 The competitive edge of the business entails a considerable low level competition within the local area. To wedge the competition, personalized quality service at competitive prices will give the bakery advantage accordingly. The competition entails the existent larger chain bakery in the area, which offers a wider product mix in its stores (Füller, 2014). Moreover, primary local bakery businesses within the local area also constitute a notable challenge to the business. The competition is diverse, covering all target customers in the local area and bakery products presented into the market. Niche The business will service the customer with high quality bakery products and personalized service at competitive prices (Performance Food Group SWOT Analysis, 2014). This composition of the business will adequately cover the target market particularly with the highly competitive prices for quality products, to give the business preference within the context of the market. Further, the strategic central location of the business premises, in the business center, with several institutions of learning surrounding the business premise as well as offices, this aspect gives the business a high advantage in the niche coverage. Strategy The business will engage strategically, considering all components that factor and facilitate successful launch of a business. Notably, the advertising costs are considered in the promotional budget, as the business launches. The business will rely highly on the advanced technology including the internet and social media to reach the target customers. Additionally, print media is also factored for the advertising. The use graphic support to show the business entity is also a key factor of success. The business will factor a considerable 3% of its startup costs into the promotional activities. The promotional budget will then continue changing, reflecting o the status of the business after startup (Taghian, 2010). The pricing of the product factors the costs of production as well as, expected profit considered. These two elements determine the pricing context of the given product, in addition to quality entailed. The channel for distribution entails the physical location of the premises, as well as, delivery services for orders placed within the local area. Delivery facilitated is on extra charge for the service. the competitive aspect of delivery options and pricing will edge the competition. Sales forecast Unit sales Year 1 Year 2 Year 3 Cakes 130,000 140,000 160,000 Bread and Biscuits 60,000 70,000 80,000 Pastry items 30,000 40,000 50,000 Other 10,000 20,000 20,000 Total unit sales 230,000 270,000 310,000 Operational plan Production The bakery business entails a high input of labor and supporting machinery to achieve successful production. Consequently, the input factors all considerations of the baking equipment including ovens and storage facilities. Further, highly trained and skilled baking personnel and established quality control tool through production process will aid in the production of the products. the product development factors all legal confines of quality in the products baked and presented to the customers. Location The premise is specious, since the placing of the production equipment requires space. Further, the sales service area is also considerable spacious to accommodate the customer volume accordingly. The building has notable ventilation to vent off the heat in the baking process, with a stable high input power supply to accommodate the requirements of running the equipment. Utilities such as water and considerable lighting are also factored. Further, the strategic location of the business premises within the business area and surrounded by vast institutions makes it an easy to walk location; hence, advantageous. Legal environment The legal requirements are another component for success of the business. Consequently, the bakery factors notable considerations including license of operations from the local authorities. The bakery will acquire the required work permit for its employees, and provide health and workplace regulation adherence as well as factor the industry special requirements including hygiene and quality of the products (Taghian, 2010). Legislation covering the sugar content regulation is a notable trend for consideration in the legal environment. Further, the business will have an established trademark for its products to facilitate the customers with pertinent sense of responsibility on part of the business (Füller, 2014). These considerations are essential for the business in achieving the high quality service it envisions. Personnel The business will launch with a total of four employees, in addition to the owners of the business. The employees entail a contingent f skilled labor in baking and service to customer experience. The unskilled labor employee will facilitate cleaning services in the premises as well as double up as a delivery person for the business. Advertising the job opportunity will allow the venture gather the expected employees from the industry. The pay is moderate, in adherence to the labor regulations related to minimum wages. Here is not training required, only orientation to the business since the employees hired have established skill on the activity of the job. In case of external service, such as baking for events among other extra services, contracting of supplementary employees will be used accordingly, through these measures, the business will engage a notably manageable workforce. Inventory The business will require supplies in raw input including the baking constituents such as flour, oil and other supporting materials such as the packaging services. Thus, the entire costs are factored in the budget since the input supplies required are available at the market. the business will not contract suppliers, instead, it will purchase the ingredients from the wholesale stores within the location of the business in bulk, to service its products accordingly. Supplies and Credit policies The business will not engage any suppliers for its materials as it will purchase the requirements directly from wholesale stores in the local area. Further, there are no credit options, since it is a small business enterprise. As such, the prices and costs are manageable. These elements will factor the success of the bakery enterprise accordingly. References Giovannucci, D., Barham, E., & Pirog, R. (2010). Defining and Marketing “Local” Foods: Geographical Indications for US Products. Journal Of World Intellectual Property, 13(2), 94-120. doi:10.1111/j.1747-1796.2009.00370.x Füller, J. (2014). For Us and by Us: The Charm and Power of Community Brands. Gfk- Marketing Intelligence Review, 6(2), 40-45. doi:10.2478/gfkmir-2014-0097 Möller, K. (2006). Marketing Mix Discussion - Is the Mix Misleading Us or are We Misreading the Mix?. Journal Of Marketing Management, 22(3/4), 439-450. Performance Food Group SWOT Analysis. (2014). Performance Food Group Company SWOT Analysis, 1-7. Taghian, M. (2010). Marketing planning: Operationalising the market orientation strategy. Journal Of Marketing Management, 26(9/10), 825-841. doi:10.1080/02672571003683813 Read More