Module 4

Part 1

The proposed business is a restaurant which will start with a single branch located in a strategic location in Atlanta. The following is a market plan that sheds light on the market aspects of the environment in which the business will be operating. The business is based on the consumer market with the main commodity being the supply of food to the customers. This business approach is based on a structure in which the customers reach directly to the restaurant to order food which is either served there or package for takeaway (Lang & Heasman, 2015). The main target customers of the business will be food market customers who prefer eating in food outlets and restaurants.

Atlanta is a highly diverse urban center with a significant percentage of the population comprising of Hispanics and Black Americans. The food market is highly segmented in this state, as there are a variety of dishes that restaurants can serve. The restaurant will have numerous options for delicacies that it can focus on serving. These include organic foods, Mexican, European, and even African dishes. Besides, it can also offer other services such as food delivery, and catering services for people who have parties and other events that require such services (Segmenting Food MarketsThe Role of Ethnocentrism, nd). The food market can also be segmented in terms of demographics which is inspired by the fact that the consumers' diversity their tastes due to cultural and race-based interactions. The business can highly benefit from choosing one of the most appropriate options and capitalizing on it. (Market Segmentation – Introduction to Business, 2018). Specialization on a particular delicacy or service can make the business outstand from the rest, thus making it profitable. The PFV rating table below highlights the profitability that the business will expect from each of the business options. The ratings provided range from 1 to 5 with the latter being the highest rate.

Rating Rationale

Focusing on supplying healthy organic food products, is the most profitable business options, and this is due to drastic changes in the food market dynamics. Most of the recent research studies have revealed that most of the health complications facing people in America such as heart failure, obesity, diabetes, and even cancer are brought by eating unhealthy foods that increase the concentration of cholesterol in the body leading to complications. In this regard, a high percentage of people in Atlanta and other cities across the United States have started embracing the idea of consuming organic foods (Every U.S. region seeing notable growth in natural food and beverage sales, 2019). The customers targeted are from all the races as the adverse impacts of unhealthy foods affect everyone in society, including the youth and the elderly. Moreover, some people have already been prescribed to take organic food due to their health conditions. Such people lack restaurants where they can order and consume such foods. This business comes in to fill that market gap by providing high-quality delicacies which will be sold at reasonable prices.

The region has a high percentage of people of Mexican origin who can make up sufficient market for Mexican dishes. However, focusing on Mexican food will leave out other races, and this will significantly reduce the target customers and also narrow the scope of the business. A similar case applies to the European food as despite the high number of people of European origin in the city, the diverse population comprises of people from different ethnic and racial backgrounds and selecting a business based on culture will leave out a large proportion of the residents (Industry Market Research, Reports, and Statistics, 2018). African dishes have been given the lowest rating because African Americans comprise a small percentage of the population, and focusing on serving African dishes will reduce the potential customers for the business.

Target Market

The target market that the business will settle on will comprise of people from all races seeking organic food. This approach will ensure that there is something for all races and ethnicities consequently increase the potential for success. The Atlanta food market is one of the fastest-growing in America, a phenomenon that can be attributed to the high rate of population increase (Restaurants are booming despite financial market turmoil, 2019). The introduction of organic food in the market is yet another trend that has contributed to the growth of the market, with many people seeking healthy foods. Moreover, Atlanta is one of Georgia’s main urban center, and its population is expected to significantly increase in the next few years (Industry Market Research, Reports, and Statistics, 2018). This makes it a perfect market for the establishment of the restaurant business due to the steady supply of customers.

Part 2

1 Page Marketing Plan

References

Cardoso, R. D. C. V., Companion, M., & Marras, S. R. (Eds.). (2014). Street food: Culture, economy, health, and governance. Routledge.

Every U.S. region seeing serious growth in natural food and beverage sales. (2019, September 13). Retrieved September 16, 2019, from https://www.newhope.com/market-data-and-analysis/every-us-region-seeing-serious-growth-natural-food-and-beverage-sales

Industry Market Research, Reports, and Statistics. (2018, December). Retrieved September 16, 2019, from https://www.ibisworld.com/industry-trends/market-research-reports/california/accommodation-food-services/hotels-motels-in-california.html

Lang, T., & Heasman, M. (2015). Food wars: the global battle for mouths, minds, and markets. Routledge.

Market Segmentation – Introduction to Business. (2018, September 18). Retrieved from https://opentextbc.ca/businessopenstax/chapter/market-segmentation/

Restaurants are booming despite financial market turmoil. (2019, February 17). Retrieved from https://www.latimes.com/business/la-fi-restaurants-boom-20160217-story.html

Segmenting Food MarketsThe Role of Ethnocentrism and Lifestyle InUnderstanding Purchasing Intentions by Bahtisen Kavak, Lale Gumusluoglu :: SSRN. (n.d.). Retrieved from https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1068222