Traditional food - Coursework Example

Marketing Traditional Food Sales Forecast Sales forecast are projected revenue based on estimated sales trends. They are used to set budgets, sales goals and forecast future growth. Projecting sales enables one to evaluate whether the venture will be profitable though during certain duration for instance in this case during the first year, the sale of traditional foods will be low but the second year is estimated to be picking up. When estimating sales you need to estimate the number of guests per month both at peak and off peak hours and estimate their average spending based on your food prices.

Your sales will be based on how many people you are serving multiplied by the average spending per person (Berry, 2010). Lunch hours tend to have lower spending but more people while dinner is the vice versa. The restaurant has a capacity of twenty tables with a capacity of three persons. The business is done Monday to Sunday and at full capacity with 60 people. Assuming the restaurant will have 30 people (covers) for lunch during weekdays while the weekends have highs of 45 for weekends. The average spending will be $7 (check average) on food for lunch and $10 for dinner and increases towards the weekends.

To get total sales for the day multiply the covers by the check average. To get the average weekly spending add all the day sales then divide by numbers of days in operation. To get annual sales multiply the weekly average by 52 weeks. To forecast the next year sales, estimate your growth in percentage and multiply it by the previous year sales. FOOD MON TUE WED. THURS. FRI SAT SUN AVER. LUNCH 30 30 30 30 45 45 45 36.43 C/A $7 $7 $7 $7 $10 $12 $12 $8.9 DINNER 30 30 30 30 50 50 50 38.6 C/A $10 $10 $10 $10 $12 $15 $15 $11.7 S/TOTAL. $510 $510 $510 $510 $1050 $1290 $290 $810 Daily average sales $810 Weekly average sales $5670 Annualized sales $294840 Growth in percentage 15% 294840*1.

15= $339066 ANNUALIZED SALES FORECAST SALES 2014 2015 FOOD SALES $294840 $339066 Pricing Strategy Pricing is dependent on a number of factors such as the targeted group, other prices in the market for instance from the competitors as well as on demand. The main pricing objective will be to make profit while meeting consumer needs. This company during the launch of its products will use cost plus, clientele and penetration methods of pricing (Pilbeam et al, 2008).

Cost plus method ensure that the business is able to run itself and cater for all its expenses while the penetrating and clientele methods ensure that the target customers are considered when prices are being set in order to attract and retain them. Several other strategies will be used to attract and increase the customer base such as promotional discounts where by the restaurant will use low prices compared to her competitors while ensuring quality is achieved. Customers are known to appreciate quality while being sensitive to prices, when applying the law of demand, quantity increases while prices decrease.

The restaurant is going to offer cash price discounts on specified days to specific foods to attract customers and increase profit maximization. From time to time, for instance during festivity seasons, we will run seasonal discounts to stimulate overall sales considering different months of the year have sales variations. Pricing is affected by various factors for instance in the case of cost plus pricing method increase in the cost of operation such as rent will mean a review of prices so as ensure the business does not run in losses.

According to Lipsey & Chrystal (2011) changes in the economy such market fluctuation in terms of high food prices will require adjusted on the food prices while lower prices of food will not require the prices to come down since cheap food will make the clientele question the quality of food offered. New entrant into the market will make the company re-look at their pricing strategy to ensure that they do not lose their customer base. Change in consumer taste will have negative effect on clientele method because the prices are set with a target consumer agenda (Lipsey & Chrystal, 2011).

References Berry, T. (2010). Sales and Market Forecasting for Entrepreneurs. New York: Business Expert Press. Lipsey, R., & Chrystal, K. (2011). Economics. Oxford: Oxford University Press. Pilbeam E, Rodseth A., Wet de A., Donaldson W. (2008). FCS Marketing Level 3.  Cape town: Person Education South Africa Ltd.