Friday, 23 September 2011

2. Target Market

P2) Explain how to identify the target market.
In this assignment I am going to describe the methods I use for my business to find the target market.
Market Research
In order for my assignment to be completed I have to some market research (such as primary and secondary research) regarding my potential customers and the market. This information would help me find out what my customers need and expectation and what my competitors and how to improve myself compering to their company.  
I am first going to use primary research where I have done some surveys and gave them out to people. The purpose is to find out what customers think about my restaurant and it service and food, and what more things I should bring to my company to make it better. I also asked them some common questions such as (how satisfy were they with the food and service and what I should improve. Below I put an example of a survey:
Then I went to do secondary research where I mostly used the internet to find out what my competitors doing. How their service and food made their business satisfied. I also looked the average of their deals and prices and what attracts more customers to their restaurant and I have done this by going to their website and read customer’s feedbacks and negative and positive comments and what they would like to see more from the business.  My restaurant is a mix of everything so I have a lot of competitors to look for and improve my business based on their reviews and improvement and how to develop them. One of my competitors is Comptoir Libanais   and it based in Westfield White City, where his average meal price is £7, this price is good comparing to others as this restaurant is based in one of the most famous shopping centre in Europe and the business is running so fast and has 85% positive reviews from its customers as it shown in the link below: http://www.urbanspoon.com/r/52/1445681/restaurant/London/Comptoir-Libanais-Marylebone
Sales forecasts
to know how many customers have visited my restaurant and how much sales I made, I used a especial techniques and below am going to show you the formula of how I would know the number of customers.
Turnover/Average price the customers will pay = number of custoemrs
120,000/30= 4,000
Customer’s behaviour analysis
in order to give the best for my customers, I have to find out their behaviours and what they expect from my business and I have respect their choice whatever would be. For example, after giving the meal to the customer, I could go to him and ask him how the meal was and if he liked it or have suggestion or any complains. Another example could be finding out how customers would like to pay the bill. All that can help understanding what my potential customer’s needs.
I have done my research to find out my customer’s potential behaviours. My business is in the Edward Road in the central London which is a wealthy area that have people who earn a good wages. In the table below as you can see my potential customer’s classification of my business area.


%
Category
Group
Type
20%
Wealthy achievers
Wealthy executives
02-05
40%
Urban Prosperity
Educated urbanites
15-20
15%
Comfortable off
Secure families
28-34
25%
Moderate means
Asian communities
37-39
4%
Hard pressed
Burdened single
51-53



Competitor analysis
As my business is mix of all, I have a lot of competitors around me which could cause I high risk of my business to broke down. In order to let my business survive, I have made my market research to and found the techniques they use and prices and offers they use, and made them better and have less charges and used my own techniques to attract customer to come to my business. One of the things I made is giving out a loyalty cards where customers get a stamp after every meal they have. After the 5th meal, they would get a whole meal absolutely free, and another offer is, bring a friend with you and will give you 40% discount of your meal and many other offers. All that can attract more customers to my business. 
Strengths and weaknesses
In my business and any other business would have some strengths and weaknesses and I explained in the table below:
One of the strongest strengths my competitors have is that the name is famous and well known in the market where this is one of my weaknesses as my business has just started and still need a time to develop it and make it known on peoples mouth.
And one of the weaknesses of my competitors is contribute in small market where is could be a strength for my business as my business going to be based not only in big markets but in small too, so I would have more customers than they are.
Another weakness is that they don’t take extra care of the food they sell as I went to their reviews and read of the reviews and it said “  I was in westfield on Saturday and poped in to comptoir libanais for a lunch and I had shish taouk,guess what? the chicken was off ,very smelly just disgusting...how dare they could sell such a thing to customers ? are they trying or even smelling their food? It was a very bad experience and I will advise my colleagues from BBC not to bother to eat there anymore....It's a disgrace!” where this is a vary bad thing to have in your business and if customers went and read this comment, they wouldn’t even bother to go there.
Market trends
The market trends of my business is making a delicious and new food and in order for my business to grow and get more profit I have to listen to what customers want as they are looking to try different spices such as Jimmy Spice’s restaurant.
The economic outlook
The economic outlook could have impact to my business whether in good or bad impact.  For example if the tax goes up that could affect my business, because that mean I have to pay more tax.
The ‘green’ agenda
Most of the customers would want to eat organic food rather than eating chemical food so to survive in the market I am going to use organic products as this would help me to get more customers to come into my business and also I am going to recycled packaging for the containers and the delivery services as its friendly with environmentally

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