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8/9/2019 Interpret Market Trends and Developments
1/20
Paramjit Singh
Interpret market trends and developments
Assessment task 1
Interpret market trends and developments
Read case study of Zeldo’s 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 zeldo’s
gourmet pasta business?
Answer---
Demographics & Lifestyle Analysis---according to the information
collected from Zeldo’s 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 survey — according to annual business reports ;Zeldo’s
gourmet pasta better customer service, family based dine in environment
and competitive price.Impact---Due to the increasing trend of customer’s preference for high
quality food and better skilled service staff Zeldo’s gourmet pasta has
succeeded in winning high customers loyalty.
According to the growth and share analysis data; Zeldo’s 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.
8/9/2019 Interpret Market Trends and Developments
2/20
Paramjit Singh
Interpret market trends and developments
Zeldo’s gourmet pasta still lacks brand awareness (a lot of people don’t
know that Zeldo’s 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 Zeldo’s gourmet pasta performance.
Answer--- quality analysis of Comparative market for Zeldo’s gourmet pasta.
1. SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis for
business----
Strengths
High Quality ingredients
Quick and quality service Location is bright and clean in
terms of hygiene
Weaknesses
Struggles to continue with the
quality innovation in theirdishes
Take away orders lacks use of
advanced technology such as
online ordering which provides
quality and quick customer
feedback
Opportunities
Increase in number of
customers who prefer quality
over quantity
Better customer service
quality due to well trained
Threats
Competition from local
restaurants that lures
customers with lowering the
prices. Extras like large wine
selection and salads.
8/9/2019 Interpret Market Trends and Developments
3/20
Paramjit Singh
Interpret market trends and developments
staff in comparison to other
competitors
a number of established
gourmet pasta restaurant
chains coming to Graceville to
increase the competition
In Graceville ,the market trend is going in favour of Zeldo’s gourmet pasta
as the number of customers who prefer high quality ingredients is increasing.
These days for customers; not only the taste is important but also the
presentation of the food plays a major role for choosing. According to the
information provided by the market trends data, the more variety you have in
your menu the more customers will be interested in visiting your restaurant
regularly due to your innovation.
3. Analyse market performance of existing and potential competitors and
their products or services, to identify potential opportunities or threats to
Zeldo’s gourmet pasta. Prepare, plot and interpret the data for visual
presentation select and use tools that are appropriate, for example, excel
spread sheet or similar.
Answer — Competitors---- Due to increase in area growth, increase in number
of peoples eating out and demand for innovation there are a lot of competitors in
Graceville and well-established gourmet pasta restaurant chains who are coming
to Graceville poses threat to Zeldo’s gourmet pasta’s business. Out of national
competitors, Verdi pasta has average ingredients but no creativity while the
pasta mia offers pasta at lower price point.
8/9/2019 Interpret Market Trends and Developments
4/20
Paramjit Singh
Interpret market trends and developments
National competitors---
Pasta buzz Pasta bite Pasta mia
Threats – variety and
innovation (they allow
customer to assemble their
dish as they wish)
Opportunity — food quality
is average in comparison.
Threats — use of high
quality ingredients
Opportunity — high price
and limited selection of
dishes.
Threats — fresh food with
innovative dishes at low price
Opportunity — excessive
employee turnover in
coparison to our reliable and
honest staff
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 Stella’s
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.
growth rate
Stella's Peri pasta
Niccolo
8/9/2019 Interpret Market Trends and Developments
5/20
Paramjit Singh
Interpret market trends and developments
Assessment task 2
Interpret market trends and developments
Read case study of Zeldo’s gourmet pasta and answer the following:
2. List and analyse the performance data from all areas of zeldo’s
business to determine the success of marketing activities?
Answer---
Break even analysis
Sales 35000 40000 45000 50000 55000
Fixed
costs
25650 25650 25650 25650 25650
Variable
costs
15050 17200 19350 21500 23650
Total cost 40700 42850 45000 47150 49300
profit -5700 -2850 0 2850 5700
Variable 43% 43% 43% 43% 43%
0
10000
20000
30000
40000
50000
60000
1 2 3 4 5
cost
sales
Column1
8/9/2019 Interpret Market Trends and Developments
6/20
8/9/2019 Interpret Market Trends and Developments
7/20
Paramjit Singh
Interpret market trends and developments
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 Stella’s restaurant are over priced at $25 which gives us an
advantage over them.
Sales comparison of different customer group
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.
0
5000
10000
15000
20000
25000
30000
35000
40000
45000
2009 2010 2011 2012 2013
individuals
take away
family
8/9/2019 Interpret Market Trends and Developments
8/20
Paramjit Singh
Interpret market trends and developments
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
4. Utilize the forecasting techniques to analyse the market data to
identify existing and emerging market needs.
Answer —
Market research
Live Feedback mechanism allows customer to freely offer constructive
criticism or praise which will help to improve the service offerings as
well as showing zeldo’s commitment to customer satisfaction
Competitive analysis
Become member of a restaurant association to gain access for published
ongoing market research.
8/9/2019 Interpret Market Trends and Developments
9/20
Paramjit Singh
Interpret market trends and developments
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 tr ends
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
Zeldo’s 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 Zeldo’s
gourmet pasta over the past few years.
8/9/2019 Interpret Market Trends and Developments
10/20
Paramjit Singh
Interpret market trends and developments
Assessment task 3
Interpret market trends and developments
Read case study of Zeldo’s gourmet pasta and answer the following:
Interpret market trends and developments
Final market analysis report for Zeldo’s gourmet
Pasta in Graceville to initiate business
Submitted by — Paramjit Singh
8/9/2019 Interpret Market Trends and Developments
11/20
Paramjit Singh
Interpret market trends and developments
1. Introduction
Zeldo’s 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. Zeldo’s 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
8/9/2019 Interpret Market Trends and Developments
12/20
8/9/2019 Interpret Market Trends and Developments
13/20
Paramjit Singh
Interpret market trends and developments
4. Interpretation of market trends and developments
Market tr ends
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. In addition, according to the market trend reports, customers not only
want better quality food but also appealing to their eyes. No matter how tasty
your dishes are; they won’t appeal to customers unless they are well presented.
Last but not the least, large variety in the menu makes a lot of people happy
these days.
Market needs
Zeldo’s gourmet pasta business success seems to be the result of understandingthe 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 theresult of various reasons such as increase in number of hour’s 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 Zeldo’s gourmet pasta over the past few
years.
8/9/2019 Interpret Market Trends and Developments
14/20
Paramjit Singh
Interpret market trends and developments
5. Analysis of market trends on potential impact on business and
comparative market information
SWOT analysis
Strengths
High Quality ingredients
Quick and quality service
Location is bright and clean in
terms of hygiene
High quality dishes in terms of
creativity
Weaknesses
Lacks brand quality equity
Struggles to continue with the
quality innovation in their
dishes
Take away orders lacks use
of advanced technology such
as online ordering which
provides quality and quick
customer feedback
Opportunities
Increase in number of
customers who prefer quality
over quantity
Better customer service quality
due to well trained staff in
comparison to other competitors
Threats
Competition from local
restaurants who lures
customers with large wine
selection and salads in
addition to their decent pasta
selection
a number of established
gourmet pasta restaurant
chains coming to Graceville
8/9/2019 Interpret Market Trends and Developments
15/20
Paramjit Singh
Interpret market trends and developments
Impact---Due to the increasing trend of customer’s preference for high quality
food and better skilled service staff Zeldo’s gourmet pasta has succeeded in
winning high customers loyalty.
According to the growth and share analysis data; Zeldo’s 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.
Zeldo’s gourmet pasta still lacks brand awareness (a lot of people don’t know
that Zeldo’s 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
Threats – variety and
innovation (they allow
customer to assemble their
dish as they wish)
Opportunity — food quality
is average in comparison.
Threats — use of high
quality ingredients
Opportunity — high price
and limited selection of
dishes.
Threats — fresh food with
innovative dishes at low price
Opportunity — excessive
employee turnover in
coparison to our reliable and
honest staff
Local competitors--- Local Competitors like Stella’s, 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
8/9/2019 Interpret Market Trends and Developments
16/20
Paramjit Singh
Interpret market trends and developments
Stella’s 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.
6. Over and under-rated products and services
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
7. Utilize forecasting techniques to forecast market needs
Market research
Live Feedback mechanism allows customer to freely offer constructive
criticism or praise which will help to improve the service offerings as
well as showing zeldo’s commitment to customer satisfaction
Customer surveys in form of suggestion card could also be used as a
source of market research
8/9/2019 Interpret Market Trends and Developments
17/20
Paramjit Singh
Interpret market trends and developments
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
costs
25650 25650 25650 25650 25650
Variable
costs
15050 17200 19350 21500 23650
Total cost 40700 42850 45000 47150 49300
profit -5700 -2850 0 2850 5700
Variable
costs
43% 43% 43% 43% 43%
8/9/2019 Interpret Market Trends and Developments
18/20
8/9/2019 Interpret Market Trends and Developments
19/20
8/9/2019 Interpret Market Trends and Developments
20/20
Paramjit Singh
Interpret market trends and developments
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.
10. References-----
http://marketresearch.about.com/od/Market_Research_Basics/a/Market-
Research-101-Data-Analysis.htm
http://www.b2binternational.com/techniques-tools/statistical-
techniques/correlation-analysis/
http://fyi.uwex.edu/downtown-market-
analysis/#_Market_Analysis_Process
http://en.wikipedia.org/wiki/Turnover_(employment)
http://www.businesstrainingcollege.com/business/How-do-I-Write-a-
Business-Report.htm
http://www.wikihow.com/Write-a-Business-Report
http://www.cifor.org/lpf/docs/Palawan/3_8_Annex%207.%20Market%20
Study%20Report_no%20pics_formatted.pdf
http://marketresearch.about.com/od/Market_Research_Basics/a/Market-Research-101-Data-Analysis.htmhttp://marketresearch.about.com/od/Market_Research_Basics/a/Market-Research-101-Data-Analysis.htmhttp://marketresearch.about.com/od/Market_Research_Basics/a/Market-Research-101-Data-Analysis.htmhttp://marketresearch.about.com/od/Market_Research_Basics/a/Market-Research-101-Data-Analysis.htmhttp://marketresearch.about.com/od/Market_Research_Basics/a/Market-Research-101-Data-Analysis.htmhttp://www.b2binternational.com/techniques-tools/statistical-techniques/correlation-analysis/http://www.b2binternational.com/techniques-tools/statistical-techniques/correlation-analysis/http://www.b2binternational.com/techniques-tools/statistical-techniques/correlation-analysis/http://www.b2binternational.com/techniques-tools/statistical-techniques/correlation-analysis/http://www.b2binternational.com/techniques-tools/statistical-techniques/correlation-analysis/http://fyi.uwex.edu/downtown-market-analysis/#_Market_Analysis_Processhttp://fyi.uwex.edu/downtown-market-analysis/#_Market_Analysis_Processhttp://fyi.uwex.edu/downtown-market-analysis/#_Market_Analysis_Processhttp://fyi.uwex.edu/downtown-market-analysis/#_Market_Analysis_Processhttp://fyi.uwex.edu/downtown-market-analysis/#_Market_Analysis_Processhttp://en.wikipedia.org/wiki/Turnover_(employment)http://en.wikipedia.org/wiki/Turnover_(employment)http://www.businesstrainingcollege.com/business/How-do-I-Write-a-Business-Report.htmhttp://www.businesstrainingcollege.com/business/How-do-I-Write-a-Business-Report.htmhttp://www.businesstrainingcollege.com/business/How-do-I-Write-a-Business-Report.htmhttp://www.businesstrainingcollege.com/business/How-do-I-Write-a-Business-Report.htmhttp://www.businesstrainingcollege.com/business/How-do-I-Write-a-Business-Report.htmhttp://www.wikihow.com/Write-a-Business-Reporthttp://www.wikihow.com/Write-a-Business-Reporthttp://www.cifor.org/lpf/docs/Palawan/3_8_Annex%207.%20Market%20Study%20Report_no%20pics_formatted.pdfhttp://www.cifor.org/lpf/docs/Palawan/3_8_Annex%207.%20Market%20Study%20Report_no%20pics_formatted.pdfhttp://www.cifor.org/lpf/docs/Palawan/3_8_Annex%207.%20Market%20Study%20Report_no%20pics_formatted.pdfhttp://www.cifor.org/lpf/docs/Palawan/3_8_Annex%207.%20Market%20Study%20Report_no%20pics_formatted.pdfhttp://www.cifor.org/lpf/docs/Palawan/3_8_Annex%207.%20Market%20Study%20Report_no%20pics_formatted.pdfhttp://www.cifor.org/lpf/docs/Palawan/3_8_Annex%207.%20Market%20Study%20Report_no%20pics_formatted.pdfhttp://www.cifor.org/lpf/docs/Palawan/3_8_Annex%207.%20Market%20Study%20Report_no%20pics_formatted.pdfhttp://www.wikihow.com/Write-a-Business-Reporthttp://www.businesstrainingcollege.com/business/How-do-I-Write-a-Business-Report.htmhttp://www.businesstrainingcollege.com/business/How-do-I-Write-a-Business-Report.htmhttp://en.wikipedia.org/wiki/Turnover_(employment)http://fyi.uwex.edu/downtown-market-analysis/#_Market_Analysis_Processhttp://fyi.uwex.edu/downtown-market-analysis/#_Market_Analysis_Processhttp://www.b2binternational.com/techniques-tools/statistical-techniques/correlation-analysis/http://www.b2binternational.com/techniques-tools/statistical-techniques/correlation-analysis/http://marketresearch.about.com/od/Market_Research_Basics/a/Market-Research-101-Data-Analysis.htmhttp://marketresearch.about.com/od/Market_Research_Basics/a/Market-Research-101-Data-Analysis.htm