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Market Research

Competitive Analysis

One of our primary focuses during market research was a competitive analysis that focused on examining various characteristics of our marketplace competitors. From this assessment, we have determined the best approach to differentiate our products and services, including investment into vending machines and a larger inventory presence. The variables in our interest are Quality, Availability, Efficiency, Price, and Products Offered -- from delivery, pickup services, and restaurant locations.

	OwlSnacks	Cupertino Food Delivery, Postmates	Cupertino O2 Valley Restaurant	Cupertino Food Delivery, DoorDash & UberEats
Price	$5 - $25	$10 - $30	$4 - $20 +	$5 - $28 + *Subscriptions offered
Quality (High, Medium, Low)	High quality (ensures that customers are satisfied with the quality of snacks by offering a money-back guarantee)	High quality (delivers quality products including snacks to students -- service has been rated 5 stars)	Medium quality (rated 4.6 stars by several customers - delivers what the customers order)	Medium quality (no website reviews, however they have indicated their attention to improving food preparation to meet customer expectations.
Availability	Delivery: 5-10 minutes Snacks available throughout the day with very short, competitive delivery times.	Delivery: 40 minutes Offers delivery services, however customers have reported order delays.	Pickup: 15 minutes. Offers products 24/7 with a quick pickup process.	Delivery: 35 minutes Offers both delivery and pickup thus high availability to students and all customers.
Product offered	Offers the largest variety of snacks, candy, and chips.	Offers a limited selection of snacks, not enough for the average customer.	Does not focus on offering a good selection of snacks.	Offers a variety of products including snacks in their delivery & pickup.
Efficiency (High, Medium, Low)	High efficiency (offers customizable orders with a friendly design)	Low efficiency (customers reported issues with the mobile app functionality)	Low efficiency (several products are limited to in-store only)	High efficiency (ordering system is easy to use and offers necessary customization)

Current Economic Condition 

As of 2020, the unemployment rate peaked at a high of 14.8% in April. The rising cases of COVID-19 during the first quarter of 2021 significantly impacted employment throughout the U.S. According to the U.S Bureau of Labor Statistics, 7.4 million people are still unemployed as of October 2021. In response to the pandemic, several businesses closed their operations temporarily, leading to more unemployment. Some economists are worried that the world economy is entering a period of weak growth and high inflation, similar to the 1970s.

The reduction in interest rates might weaken product and service prices, thus leading to a deflationary situation. As of 2020, GDP was approximately $20.89 trillion, however, this has increased to $23.17 trillion during the third quarter of 2021. Regardless of the pandemic, sales relevant to our market have shown a potential increase from $1.4 trillion towards the last quarter of 2020. There is a continued likelihood and trend of increased sales in 2021 and 2022, and in this regard, our business will remain healthy despite the fluctuations. 

Industry Analysis

The food industry is composed of several businesses offering products and services both online and offline. The pandemic benefited the industry by boosting online stores; however, it was detrimental to businesses offering in-services. COVID-19 created more opportunities for new businesses to expand their market, which has significantly impacted the industry's size. As of 2019, the fast-food market size was valued at $647.7 billion, which increased to about $789.78 in 2021. The size is expected to increase by 16.8% in 2022 with an annual growth of 2.4 percent for the fast food market. Thus, this demonstrates an opportunity for long term business growth regardless of the stiff competition that we experience. 

According to Song et al. (2021), food delivery services are reshaping the American restaurant industry, currently valued at $863 billion. Delivery is becoming more popular because it is faster and more convenient. This move is likely to improve our market size and lead to increased profits, adoption, and scalability.

Additional data