Free Sample: Market Size and Trends paper example for writing essay

Market Size and Trends - Essay Example

British food in general is still popular with 29% of respondents. Ethnic foods in general appeal to around 20-28% of respondents. Food courts, which serve a variety of foods, are popular among 13% of respondents, while American restaurants appeal to 10% of the people surveyed. Overall only 2% of consumers never eat in a restaurant which illustrates the importance which restaurant dining plays in our lives and represents considerable market potential.

Levels of affluence influence the consumers’ likelihood to dine out and it can be seen that those who are not working or who are in the lowest socio-economic group are most likely never to dine out. The breakdown by restaurant type shows that the most popular type of restaurant overall is the British and/or fish and chip restaurant. This is followed closely by ethnic restaurants, which includes Indian and Chinese as well as Thai, Japanese, Mexican and other ethnic restaurants. Similarly, when looked at by social class the higher socio-economic groups, the ABs and C1s have a preference for ethnic food.

It can therefore be concluded that the most potential for new restaurants will be in the ethnic sector as not only do ABC1s eat out more frequently; they are the fastest-growing and largest socio-economic group. Those consumers at the pre-family lifestage are most likely to use all types of restaurant with ethnic restaurants being most popular with them. Ethnic restaurants are also the most popular venue for consumers at the family lifestyle, which reflects a willingness to try new and different concepts. As their children grow there will be an increased likelihood of a continuing preference for ethnic food. Attitudes towards restaurants

The quality of service is very important to just under two thirds of respondents, and furthermore 43% of respondents are prepared to travel to an eatery that they like. An aspect which reflects on quality of service is whether consumers feel rushed when at a restaurant. A significant 62% of respondents suggested that they did not like to feel rushed. This means that consumers want to feel relaxed and sample the atmosphere as well as eating when visiting a restaurant. Indeed 59% of respondents claim that a good atmosphere is important. To obtain good service, food and atmosphere, just over a third of respondents are prepared to pay a premium.

Of interest is that 23% of respondents feel that independent restaurants give a better service than chains and only 3% of respondents prefer a branded restaurant to an independent eatery. The most frequent diners are those in the ABC1 socio-economic group and this propensity to dine frequently diminishes with social class being inherently linked to lifestyle. This is reinforced by attitudes towards being prepared to pay for quality, which again diminishes across the socio-economic groups. Here respondents in the ABC1 groups have a higher propensity to pay more for their dining experience.

Respondents in the ABC1 socio-economic group are also most likely to think that better service will be found at small restaurants rather than large ones. Categories used to describe consumer behaviour include: Quality Seekers This consists of 84% of respondents who value quality of service and will, therefore, choose restaurants which they perceive as providing this. Of note is that these consumers are not restricted to branded (chain) restaurants but invariably will visit independent restaurants, viewing them to be better able to provide the quality of service that they seek. Innovators

Representing 67% of respondents, these are typically consumers who are susceptible to new foods, venues and concepts when eating out. These diners are likely to be more inclined to choose restaurants providing different cuisine from British food restaurants and are also likely to visit eateries that change their menus on a regular basis. These include independent restaurants that are more able to change their menus due to their supply structure being less restricted Ambience seekers With just over 60% of respondents representing ambience seekers these are a group of consumers for whom the restaurant surround is as important as the food.

Consumers in this category place a greater value on entertainment and will visit restaurants that provide some sort of theatre. Restaurants which appeal to this group include themed restaurants where memorabilia plays an important part in creating the general feel of the restaurant; and traditional restaurants providing British, French, Italian, Indian and Chinese cuisine where the ambience is captured by the music played and design of the furnishings. More recently minimalist restaurants have become popular. These typically have basic furnishings such as wooden tables and benches in a modern setting.

Music played at these venues will also be contemporary. Special treat seekers This category is represented by 42% of respondents and typically includes consumers who do not eat out often, but are more likely to dine out for special occasions, events or when there is a special promotion undertaken by restaurant operators. Independent restaurant lovers The findings of the exclusive consumer research undertaken by Mintel for this report point to consumers who are becoming more inclined to favour independent restaurants, judging them as providing a better service

Frequent diners The respondents in this group also demonstrate the increased interest in eating out on a regular basis by the British. New foods and increased emphasis by operators on ambience, di?? cor and entertainment have created a demand for eating out more regularly. Settled diners Contrary to respondents who fall into the innovators category, settled diners represent 26% of respondents in Mintel’s survey. Though they are not adventurous they do represent a constant and loyal market for operators. ABC1s show the highest propensity to be quality seekers.

This is a reflection of this group being able to pay for quality food and service. They are also more demanding of ambience and more likely to be seeking innovation but much less likely to be special treat seekers, suggesting an informality and spontaneity to their dining habits. The Future Lifestyle changes bode well for restaurant market The restaurant market has a huge range of choice of mid-market restaurants which offer informality and convenience at an affordable price. This sector fits perfectly with the increase in consumer spending on casual dining.

Eating out is no longer a luxury but part of everyday life. Eating habits are continuing to change and are even now significantly diverged from the three meals a day around the home table. Food is increasingly being consumed at any time of day and in a variety of environments. The challenge for our restaurant is to ensure that their format and offering is the preferred choice of venue. Nowadays, it is easier for new theme restaurants and cuisines to enter the evolving market. Future success will depend increasingly on being able to create a point of difference which has continual appeal to the customer base.

New entrants with new concepts will readily lure customers away even if only temporarily which reiterates the need to create a point of difference that cannot be replicated by the competition. In looking towards the future of the restaurant market the most significant factor would appear to be the consumer desire for the fresh and the new. In all aspects of life consumers are faced with a myriad of choices from their gas supplier to their bank and therefore become accustomed and even expect this level of choice.

They have become used to products developing and changing faster than ever before and this will tend to extend to the restaurant market too. This will make for a very dynamic market and one that is continually challenging to operators. The analysis of the restaurant market shows that there is great potential for Russian Theme restaurant. As consumers have become more sophisticated, their level of expectation has risen with regard to quality, service and choice which has put increased pressure on the restaurateur. Since there is a decline or break up of the very large brands our independent small venture would have more market opportunities.

In general, changing demographics and the growth in the affluent consumer groups have been, and will continue to be, significant in determining and shaping which restaurants and concepts have the most scope for success. Ageing population, rising incomes, increasing demand for eating out and theme restaurants in particular give our idea a great opportunity to succeed. Changing lifestyles with an increased desire for the quick and convenient are changing how people eat out and represent a real challenge for the market. Tourism plays a significant role in the fate of some restaurant groups.

In our case the affect comes from location of the restaurant. As it is located amongst many tourist attractions, the affect could be very significant. Marketing Plan The marketing portion of a business plan addresses how we will get people to visit our restaurant to try our service in sufficient quantities to make your business profitable. It consists of: Market analysis, which we have done earlier and which assesses the market environment in which we compete, identifies our competitors and analyzes their strengths and weaknesses, and identifies and quantifies our target market;

Our marketing strategy, which explains how we will differentiate our business from our competitors’ businesses and what approach we will take to get customers to buy from us; i?? Our marketing and sales plans, which specify the nature and timing of promotional and other advertising activities that will support specific sales targets. First of all, to start with we have to identify our mission statement, which will guide our employees, investors and customers to the same vision of the business. Mission Statement

“To provide a place where people can enjoy the genuine Russian atmosphere, traditions and customs, while getting pleasure from traditional Russian food and entertainment in the heart of England. ” SWOT Analysis SWOT Analysis is a very effective way of identifying our Strengths and Weaknesses, and of examining the Opportunities and Threats we face. Carrying out an analysis using the SWOT framework will help us to focus our activities into areas we are strong, and where the greatest opportunities lie. Break-even analysis is simple to conduct and understand. Also it is cheap and can be carried out quickly.

It shows profit and loss at various levels of output, particularly when it is presented in the form of a chart. This may be of a particular value when a business is first established. Indeed it may be that financial institutions will require this sort of financial information before lending any money to someone aspiring to run a business. Although it is a rudimentary technique, break-even analysis can cope with changing circumstances. We have seen that the technique can allow for changing revenues and costs and gives a valuable rule-of-thumb guide to potential profitability. However, break-even does have some drawbacks.

It pays little attention to the realities of the marketplace. A major flaw is that it assumes all output is sold. This may well be untrue and, if so, would result in an inaccurate break-even estimates. If a firm sells less than it produces it incurs costs without earning the corresponding revenue. This will substantially reduce profits. In times of recession, a firm may have difficulty in selling all that it produces. Although break-even can cope with changes in prices and costs, in the real world such factors change regularly making it difficult to as a forecasting technique.

Changes in tastes and fashions, exchange rates and technology are all examples of factors, which could invalidate break-even forecasts. The model assumes that costs increase constantly and that firms do not benefit from economies of scale. Similarly, break-even analysis assumes the firm sells all its output at a single price. In reality firms frequently offer discount for bulk purchases. Finally, break-even analysis is only as good as the data on which it is based: poor quality data can result in inaccurate conclusions being drawn.