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Assessment task 1
Interpret market trends and developments
Read case study of Zeldos gourmet pasta and answer the following:
1. Use appropriate statistical analysis tools and analyse data to interpret
market trends and developments and their potential impact on the zeldos
gourmet pasta business?
Answer-- Demographics & Lifestyle Analysis---according to the information
collected from Zeldos gourmet pasta marketing plan; Graceville has a lot
of potential in terms of market growth due to large %age of families,
growing area at 10% per year and increasing household income.
Consumer survey----In addition to this, More than 53% people eat out
several times a week which seems good for a growing business. Majority
of people in Graceville prefer high quality and better presentation of food.
Business owner surveyaccording to annual business reports ;Zeldos
gourmet pasta better customer service, family based dine in environment
and competitive price.
Impact---Due to the increasing trend of customers preference for high
quality food and better skilled service staff Zeldos gourmet pasta has
succeeded in winning high customers loyalty.
According to the growth and share analysis data; Zeldos gourmet pasta
has increased number of customers. Increase in large %age of dine in
family business in Graceville might be one of the reasons for it.
Paramjit Singh
Zeldos gourmet pasta still lacks brand awareness (a lot of people dont
know that Zeldos gourmet pasta exists) and innovation (individual
customer growth seems very slow according to growth and share
analysis) which has proved to be big drawbacks in terms of business
growth for the restaurant.
2. Perform qualitative analysis of comparative market information as
the basis for reviewing the Zeldos gourmet pasta performance.
Answer--- quality analysis of Comparative market for Zeldos gourmet pasta.
1. SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis for
business---Strengths
Weaknesses
dishes
terms of hygiene
Opportunities
Increase in number of
Threats
Competition from local
over quantity
Paramjit Singh
staff in comparison to other
competitors
a number of established
gourmet pasta restaurant
chains coming to Graceville to
increase the competition
Paramjit Singh
National competitors--Pasta buzz
Pasta bite
Pasta mia
Threatsuse of high
quality ingredients
employee turnover in
Opportunityfood quality
dishes.
is average in comparison.
honest staff
growth rate
Stella's
Peri pasta
Niccolo
Local competitors--- Out of locals, niccolo has large selection of wines and
salads but is overpriced and sometimes offers poor service. Peri pasta has
decent pasta selection, cheaper price but quality is inconsistent while Stellas
has an upscale restaurant with pricey and limited dishes. But their presentation
and good food is much better resulting in a huge market share of 16% becoming
our major competitor while the other competitors have less than 13% of market
share each.
Paramjit Singh
Assessment task 2
Interpret market trends and developments
Read case study of Zeldos gourmet pasta and answer the following:
2. List and analyse the performance data from all areas of zeldos
business to determine the success of marketing activities?
Answer-- Break even analysis
Sales
35000
40000
45000
50000
55000
Fixed
25650
25650
25650
25650
25650
15050
17200
19350
21500
23650
Total cost
40700
42850
45000
47150
49300
profit
-5700
-2850
2850
5700
Variable
43%
43%
43%
43%
costs
Variable
costs
43%
60000
50000
40000
cost
30000
sales
Column1
20000
10000
0
1
Paramjit Singh
The above given break-even analysis indicates that $45000 will be
needed monthly to reach break-even point. The break-even point is a
special case of Target Income Sales, where Target Income is 0 (breaking
even). This is very important for financial analysis.
Sales and cost forecast
Sales
2009
2010
2011
individuals
120000
180000
198000
Families
150000
195000
292000
Take away
180000
216000
324000
Total sales
450000
591000
824500
Cost of sales
42000
63000
69300
families
52500
68250
102375
Take away
63000
75600
113400
Subtotal direct
157500
206850
285075
292500(65%)
384150(65%)
529425(65%)
for
individuals
cost of sales
Gross profit
Loss/profit budget
Profitability outcomes
Average price
Gross profit
pasta
$22.00
55%
beverages
$6.00
70%
overall
65%
Paramjit Singh
These profitability outcomes seems nice in terms of gross profit but
remember that one of our local competitors named peri pasta sells
cheaper than us at $19 with a decent selection but they lack consistency
in quality but Stellas restaurant are over priced at $25 which gives us an
advantage over them.
Sales comparison of different customer group
45000
40000
35000
30000
25000
individuals
take away
20000
family
15000
10000
5000
0
2009
2010
2011
2012
2013
The takeaway customer sales and growth seems very slow while the family
customers growth is increasing in a good manner. The problem of poor sales
performance for take away might be due to using phone ordering system for
selling activities in take away food instead of using latest online ordering
technology via internet.
Paramjit Singh
3. List the over-performing and under-performing products and
services to be considered for redevelopment or withdrawal.
Answer
over-performing products and services-- use of high quality and fresh ingredients
great staff and quick service
bright and clean design
great location of high income people living nearby
enhanced presentation
under-performing products and services-- phone ordering system for selling activities in take away food
lacks brand equity
lack of advertisement
less innovation in terms of food
Paramjit Singh
Secondary data
Industry market reports, annual reports, and company brochures are all
good sources of external secondary data. Previous market analysis and
research reports may provide the basis for projections into the future.
Statistical analysis
Market trends
It is found out that customer these days are appreciate quality over
quantity as number of customers is increasing; who prefer high quality
ingredients in their dishes.
Market needs
Zeldos gourmet pasta business success seems to be the result of
understanding the needs of their loyal as well as random customers. They
must provide wide variety of choice, great customer service, best location
and accessibility as well as competitive prices in comparison to their local
competitors.
Market growth
Global pasta market has reached $10 billion dollars .pasta sales are
assumed to increase at least 10% by the upcoming years. According to
growth and share analysis number of potential customers in every
category has increased for the overall market as well as for the Zeldos
gourmet pasta over the past few years.
Paramjit Singh
Assessment task 3
Interpret market trends and developments
Read case study of Zeldos gourmet pasta and answer the following:
Paramjit Singh
1. Introduction
Zeldos gourmet pasta restaurant will be the leading gourmet pasta restaurant in
Graceville which has huge opportunity in terms for market growth due its
rapidly growing area, high income earning residents and who love to eat outside
people. Zeldos gourmet pasta restaurant want to analyse the market trends
,check market growth and know about customer needs with changing trending
in food business to not only initiate their success in Graceville but also to
improvise in future as brand name.
2. Objectives
To analyse market trends
To collect information about specific customer needs
Realise a growth strategy of one store per year
Analyse the data collected and results to solve problems
Make an agenda for action; critical for continuous success and future
profitability
Decrease variable costs associated with food production
Other Objectives
Maintain positive, continuous business growth each month
Increase in number of new customers turning into loyal customers
Generating $45000 minimum in sales per month to reach break-even point
A double digit growth rate for each future year
Reduce overhead per store through disciplined growth
Paramjit Singh
Paramjit Singh
Market needs
Zeldos gourmet pasta business success seems to be the result of understanding
the needs of their loyal as well as random customers. they must provide wide
variety of choice, great customer service, best location and accessibility as well
as competitive prices in comparison to their local competitors.
Market growth
Global pasta market has reached $10 billion dollars .pasta sales are assumed to
increase at least 10% by the upcoming years. This market growth could be the
result of various reasons such as increase in number of hours people has started
working. Due to more work hours, there are increased chances of people eating
outside instead of cooking meals at home. In addition, according to growth and
share analysis number of potential customers in every category has increased
for the overall market as well as for the Zeldos gourmet pasta over the past few
years.
Paramjit Singh
5. Analysis of market trends on potential impact on business and
comparative market information
SWOT analysis
Strengths
Weaknesses
Opportunities
Increase in number of
Threats
Competition from local
over quantity
selection
a number of established
gourmet pasta restaurant
chains coming to Graceville
Paramjit Singh
Impact---Due to the increasing trend of customers preference for high quality
food and better skilled service staff Zeldos gourmet pasta has succeeded in
winning high customers loyalty.
According to the growth and share analysis data; Zeldos gourmet pasta has
increased number of customers. Increase in large %age of dine in family
business in Graceville might be one of the reasons for it.
Zeldos gourmet pasta still lacks brand awareness (a lot of people dont know
that Zeldos gourmet pasta exists) and innovation (individual customer growth
seems very slow according to growth and share analysis) which has proved to
be big drawbacks in terms of business growth for the restaurant.
Competition
National competitors--Pasta buzz
Pasta bite
Pasta mia
Threatsuse of high
quality ingredients
employee turnover in
Opportunityfood quality
dishes.
is average in comparison.
honest staff
Local competitors--- Local Competitors like Stellas, peri pasta and niccolo in
total shares 38% of the market share. Out of locals, niccolo has large selection
of wines and salads but is overpriced and sometimes offers poor service. Peri
pasta has decent pasta selection, cheaper price but quality is inconsistent while
Paramjit Singh
Stellas has an upscale restaurant with pricey and limited dishes. But their
presentation is much better resulting in a huge market share of 16% becoming
our major competitor while the other competitors have less than 13% of market
share each.
Paramjit Singh
Competitive analysis
Patronise local restaurants to gather timely information about service
offerings as well as involve in an informal fraternal organisation. Become
member of a restaurant association to gain access for published ongoing
market research.
Secondary data
Industry market reports, annual reports and company brochures are all
good sources of external secondary data. Previous market analysis and
research reports may provide the basis for projections into the future.
Break even analysis
Sales
35000
40000
45000
50000
55000
Fixed
25650
25650
25650
25650
25650
15050
17200
19350
21500
23650
Total cost
40700
42850
45000
47150
49300
profit
-5700
-2850
2850
5700
Variable
43%
43%
43%
43%
costs
Variable
costs
43%
costs
Paramjit Singh
60000
50000
40000
cost
30000
sales
Column1
20000
10000
2009
2010
2011
individuals
120000
180000
198000
Families
150000
195000
292000
Take away
180000
216000
324000
Total sales
450000
591000
824500
Cost of sales
42000
63000
69300
Paramjit Singh
for
individuals
families
52500
68250
102375
Take away
63000
75600
113400
Subtotal direct
157500
206850
285075
292500(65%)
384150(65%)
529425(65%)
cost of sales
Gross profit
Paramjit Singh
To position itself as reasonably priced, upscale, gourmet pasta restaurant in
Graceville. Not only we will be providing quality meals but with some new
innovative dishes and a great staff to provide best customer service experience
to win over the Graceville customers. Our main focus will be on the family
customers who live nearby, young professionals who work close to location and
people who prefer to eat food at home rather than outside.