Market Analysis: Opening a Tapas Restaurant in Pearland, Texas - Research Proposal Example

October 08, Market Analysis: Opening a Tapas Restaurant in Pearland, Texas 2. Analyze the market for this type of restaurant, and provide a detailed description of target customers: Pearland is a fast developing city of Texas and is located near to Texas Medical Center and Houston region. Johnson Space Center, a NASA project, is also situated near to Pearland. The city’s environmental and demographic profile is suitable for business entities to grow their operations profitably in this area. The people here normally live in affordable houses and there are good schools in the city as well as its neighborhood. The inhabitants are financially well off and they live in good lifestyle. Thus, this area provides a good atmosphere to start a Tapas Restaurant. “Pearland is on its way to becoming the next major employment center in the Houston region” (Living in Pearland par. 1). Thus, it transpires that the city offers a highly conducive environment for launching a new restaurant, which can operate well in this region due to several factors. The population growth in this town shows a high market potential of Tapas Restaurant. Pearland is near to Hobby Airport and therefore the restaurant can cater to tourists and business people who travel to this area. Pearland Park and restaurant is one of the main attractions of Pearland city. Besides, Pearland Art League can be another potential source of market for the restaurant as it invites several people round the year for many functions. These are the market potential in Pearland. The restaurant has competitors there such as Pear Tree, Santa Barbara Italian Restaurant and Busy Bee Café etc. The potential target customer groups for Tapas Restaurant include the employees and visitors of Texas Medical Center, Johnson Space Center’s workers, visitors to Pearland Park and Hobby Airport etc. Besides, there are several well established families living in the area. Since there are no outlets of Tapas Restaurant in this region, Pearland City is a potential market for opening such a restaurant. This restaurant’s target customers are youth and upper middle class people. Target market identification involves the process of determining the group of potential clients from the inhabitants of a community, which may comprise several sections. Once this is done, the firm concerned has to make sure that they are in position of gratifying the desires and requirements of each section. Marketing aims, which add to the achievement of the general industry objectives should be recognized for all target markets. The objectives must be in quantitative language, should indicate the target market and must also point out the period within which the goals must be attained. 3. Provide a brief description of a Tapas Restaurant: The idea of opening an outlet of Tapas Restaurant in Pearland Texas is a really valid proposal in the rapidly evolving service market. Food offered by Tapas restaurant is very clean, delicious and healthy Spanish cuisine. Restaurant business is one of the cornerstones of US financial system. Besides, it is also the country’s highest private sector segment that generates the annual financial impact of $1 Trillion. The restaurant business contributes considerably to the financial system and employs around 15% of the tri-state areas employees, attracting millions of clientele yearly, and is one of the fastest increasing financial sectors. In the Tapas restaurants the entire meal is an amalgamation of bite sized snacks, with less concentration on foodstuff and are designed to promote conversation among customers. “Many Americans have a taste for Spanish food, so knowing what is a Tapas restaurant has become a necessity. Tapas restaurants are known for serving small, often bite size snacks that can be consumed hot or cold, and similar to appetizers” (Khalid par. 1). Tapas restaurants have sprung up all around the earth, providing a various choice to eating huge, heavy meals or foods and offering the customers a chance to samples of food in numerous flavors without eating a huge portion of any of them. This study aims to conduct a market analysis for opening an outlet of Tapas Restaurant in Pearland, Texas. “The word tapas usually refer to a variety of appetizers or small plates that are served in Spain at tapas bars, cafes, and restaurants. However, tapas also refer to many different styles of cuisine served in appetizer portions. In some cases, there are family-style portions, served on one platter for individuals to help themselves” (Shirk par. 1). These are the traditional kind of Tapas for the traditionalist but at the same time modern type of Spanish Tapas consists of flavors that are different from the traditional flavors of Tapas. 4. What are the trends for these types of restaurants? Tapas are a small plate of Spanish dishes it has become great hit in America. Recently, Tapas Restaurants are getting tremendous popularity in the country. They are, thus, creating a new dining habit, which is emerging as a part of modern American youth culture. Initially, they were famous in Spain only. However, now they are claiming popularity throughout the world and have garnered good market response from US, Asian and European markets. “Hong Kong now has more than 20 Spanish restaurants, many of them strongly Tapas oriented” (Tapas – Small Dishes, Big Trends par. 18). Traditionally, Tapas are mainly served in bar but now it is the main item in restaurants also which indicates the growing trends in this industry. Today, many companies have started export of tapas to USA. These are in high demand in this country and have become a common dish here. Thus, it claims a high market share and huge demand among the customers. These factors indicate that there is favorable condition for the industry. What is the major competition for Tapas, and who are the leaders in this business? Tapas, the major Spanish food are gaining popularity in United State. There are many leading Tapas restaurants such as Andalucía Tapas restaurant, Italian restaurant, Busy Bee Café and Rioja tapas restaurant. The Rioja Tapas restaurant is a major competitor because it holds the major market share in the industry. This company provides tapas at lesser price as compared to others which enables them to claim major market share. What is the size of the Tapas industry in Houston compared to Pearland? In Houston there are number of famous tapas restaurants such as 5 Oporto café, Tapas Caprico, Kata Robata etc. These are reputed restaurants in Houston, serving tapas to customers at reasonable price. Tapas industry in Houston is in a growing stage. The tapas outlets in Pearland are Rioja Spanish Restaurant, Canyon Café, Tinto’s restaurant etc. Pearland is good market and the population has strong buying power. Therefore, this is a favorable circumstance to launch a tapas restaurant in Pearland. 5. Analysis of the market segments for this restaurant. A market segment of Tapas Restaurant needs to follow the concept of marketing by dividing a market into different parts that perform in the same way or have same requirements. “Its objective is to design a marketing mix that precisely matches the expectations of customers in the targeted segment” (Market Segmentation par. 1). The market segments of Tapas Restaurant are based on several variables. They are geographic variables, demographic variables, socioeconomic status, psychographic variables and behavioral variables. A restaurant of this type must welcome and entertain all types of individuals. Age: Age group of Tapas Restaurant’s customer will be an average of 20-35 years old Income: Comparing to lower income customers, Tapas targets high income group (Upper class people). Sex: The restaurant can cater to both genders of customers. Education: Highly educated people are the usual customers here. Geographic location: Here, the study intends to conduct the Market Analysis for opening a Tapas Restaurant in Pearland, Texas, which, topographically is a good location. Besides, demographic profile of the city also favors the opening of such a business unit here. Occupation: Business executives, professional and students. The following groups as targeted sections that fit the customer profile and will provide good growth potential for the restaurant: Business people Families and couples Student population Tourists Local singles These specific market segments, in an average will be 20-35 years old, who have disposable income, and are looking for trendy, fashionable and comfortable restaurant choices. They mainly youth and people of upper class segment, who are financially sound and desirous of enjoying an easy lifestyle, with an attitude of warmth to multiculturalism. The customers will be mainly residents of Pearland, Texas or travelling into this region for business or tourism purposes. These are the types of people who frequent restaurants and bars in the region. They are likely to use more on experiences they distinguish as ethnic, unique and sophisticated. They like to enjoy different innovative food items. The growth of population shows an encouraging trend, as can be deciphered from the table below, based on US census: Pearland Population Estimates Update: June 30, 2011   April 1, 2010 January 1, 2011 June 30, 2011 City Limits 91,252* 94,100 95,600 E.T.J. 28,500 28,500 28,500 Total 119,752 122,600 124,100 (Pearland Population Update 1). Work Cited Khalid, Alya. What is a Tapas Restaurant? Made Man.com. 2010. Web. 05 Oct. Read More