Due to the credit crunch, the manufacturing business is heading to a downtown. Last year (2009) they generated a turnover of 1,250,000 and a gross profit of 160,000. Generally an employee in Bob & Lloyd’s earns an average salary of 15,000 p.a. With their legacy, they have decided to start a new fast food business in town. Since they want to keep up their good reputation, they will provide a good service with good and high quality ingredients. And they want to take some of their old staff in to the new fast food restaurant.
Since they have decided to introduce a new taste to the town, they are going to start a Kebab restaurant. Kebab is an Arabic style food which is very delicious and filling. 2.0 Marketing. 2.1 Entitle of the business. I suggest a name for the new business, as it is an Arabic food “Tastes of Arabia”. 2.2 Analysis of market. I will assume the city area for this analysis as Petaling Jaya- Kuala Lumpur. 2.21 Market analysing according to PEST analysis. According to the Malaysian Act of Food (Act 281) every food product company have to have a license to sell food. To sell any kind of food, the seller should follow the following rules and regulations.
The food product has to be inspected by a health office who is appointed by the government and his report will be audited by an authorized officer and be re-audited by the Director General. They have the power to take samples and analyse them. If the food product is safe enough for human consumption according to their laboratory reports, the seller will get the license to sell the particular food product. Economic is the factor that affect consumer’s purchasing power and spending patterns. In this case, the location has been chosen is 1Utama shopping mall. This area is surrounded by schools, colleges, offices and shops.
So the economical environment is in average stage as the majority of the crowd is unemployed (students) and depend on their guardians. But most of them used to hang around the place during breakfast and lunch times and they have the purchasing power even though it’s not very strong. The society around this area has a mixture of various cultures as there are few different types of religions and races. The majority living in this area are Chinese even though the dominant race is Malay in Malaysia. Religious views are totally different from each others.
The dominant religion is Islam and there is a quite big amount of Catholics, Hindus and Buddhists. There are some rules and regulations which has been incurred by religious views such as that according to Islam, the Islamic people doesn’t consume pork and every meat they are consuming must be halaled. And most of the Hindus and Buddhists are vegetarians. As here we consider about a food product, the producer have to be very concern about all these cultural and religious views of people. Technology has achieved a large amount of victories and it has become an essential to the life. And the technology is making the life easier.
In this area where the Kebab restaurant is located has new technologies such as wireless internet connection and etc.. people can do online ordering and have the facility to order their food through phones as well. So they can enjoy their meal at the place where they like the most. And there’s a radio broadcasting station and a television broadcasting station around, so it’s easy to do the promotions. Analysing the market using SWOT analysis. The Utama shopping mall is surrounded by many active places, the place is quite crowded throughout almost all the week. Since there’s no other Arabic food restaurants around there will be less competition for the new business.
There are western, Malay, Chinese and Indian styled food. For all this time the people around the place are used to consume those food and they know the taste of them. Arabic food is not very new to Malaysians, but there’s only a few places that people can buy these food. So it will take some time for them to get used to it and the business to grow.
This area is mainly a residential area. There are a large number of families living all around the place.
The majority of the population are teenagers and youths and they are the consumers who love to try new things and tastes. And people who are working prefer having meals outside, because it saves their time and energy. 80% of working people around the place used to have breakfast and lunch from outside rather than bringing their own food from home. The location I’ve chosen for the new fast food restaurant is 1Utama shopping mall. A quite crowded place throughout the whole week and a place where people used to hang around for so many purposes as well.
Market size As the population around the city of Petaling Jaya 520,698, and the most target market is youths and the working crowd, the total market size is around 275,965 (53% of the total population) and the target market is around 193,175 (70% of the total market size). The first and the most important objective is increasing the awareness of the product and increasing the market share.
Since Kebab is a new experience for the majority of the target market, the restaurant should have a SMART objective for the coming year. Objectives should be specific, measureable, achievable, realistic and timed. Where the business have to be precise of what it’s going to achieve and the aims should be measured and Bob & Lloyd have to be sure about the machines, men and money to continue the business. There should be a particular time period that the business should achieve these goals.
The fast food restaurant should have to keep a constant increasing of sales by 10% per month by 31st of July.2010 The business should gain 25% of the market share by 31st of September 2010. Bob & Lloyd should do a strong promotion campaign to increase the brand awareness from 10% to 50%, by 01st of March 2011.