Paramjit Singh

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.

Interpret market trends and developments

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

High Quality ingredients

Struggles to continue with the

Quick and quality service

quality innovation in their

Location is bright and clean in

dishes

terms of hygiene

Take away orders lacks use of

advanced technology such as
online ordering which provides
quality and quick customer
feedback

Opportunities
Increase in number of

Threats
Competition from local

customers who prefer quality

restaurants that lures

over quantity

customers with lowering the

Better customer service

quality due to well trained

prices. Extras like large wine

selection and salads.

Interpret market trends and developments

Paramjit Singh
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 Zeldos 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
Zeldos 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.
AnswerCompetitors---- 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 Zeldos gourmet pastas business. Out of national
competitors, Verdi pasta has average ingredients but no creativity while the
pasta mia offers pasta at lower price point.

Interpret market trends and developments

Paramjit Singh
National competitors--Pasta buzz

Pasta bite

Pasta mia

Threats variety and

Threatsuse of high

Threatsfresh food with

innovation (they allow

quality ingredients

innovative dishes at low price

customer to assemble their

Opportunityhigh price Opportunityexcessive

dish as they wish)

and limited selection of

employee turnover in

Opportunityfood quality

dishes.

coparison to our reliable and

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.

Interpret market trends and developments

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

Interpret market trends and developments

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%

Interpret market trends and developments

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.

Interpret market trends and developments

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

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 zeldos commitment to customer satisfaction
Competitive analysis
Become member of a restaurant association to gain access for published
ongoing market research.

Interpret market trends and developments

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.

Interpret market trends and developments

Paramjit Singh

Assessment task 3
Interpret market trends and developments
Read case study of Zeldos gourmet pasta and answer the following:

Interpret market trends and developments

Final market analysis report for Zeldos gourmet

Pasta in Graceville to initiate business

Submitted byParamjit Singh

Interpret market trends and developments

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

Interpret market trends and developments

Paramjit Singh

3. Statistical analysis of market data

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. In lot of
surveys; people admit that they want to enjoy meals without the hassle of
making it by themselves. Majority of people in Graceville prefer high quality
and better presentation of food.
Business owner survey-- Zeldos gourmet pasta stands higher in front of
other competitors due to a lot of benefits providing to their customers such
as wide varieties of fresh pasta, better customer service, family based dine in
environment and competitive price.
Focus Groups--- young professionals who live to close location. People
ageing from 25-50 are the customer age group; who makes 53% of the local
market. People who eat out several times a week and patronise high quality
restaurants.
City Comparison
Graceville is growing faster than the city and state at 7%, which makes it a
favourable place to do business.

Interpret market trends and developments

Paramjit Singh

4. Interpretation of market trends and developments

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. 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 wont 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
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.

Interpret market trends and developments

Paramjit Singh
5. Analysis of market trends on potential impact on business and
comparative market information
SWOT analysis
Strengths

Weaknesses

High Quality ingredients

Lacks brand quality equity

Quick and quality service

Struggles to continue with the

Location is bright and clean in

terms of hygiene
High quality dishes in terms of
creativity

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

Threats
Competition from local

customers who prefer quality

restaurants who lures

over quantity

customers with large wine

Better customer service quality

selection and salads in

due to well trained staff in

addition to their decent pasta

comparison to other competitors

selection
a number of established
gourmet pasta restaurant
chains coming to Graceville

Interpret market trends and developments

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

Threats variety and

Threatsuse of high

Threatsfresh food with

innovation (they allow

quality ingredients

innovative dishes at low price

customer to assemble their

Opportunityhigh price Opportunityexcessive

dish as they wish)

and limited selection of

employee turnover in

Opportunityfood quality

dishes.

coparison to our reliable and

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

Interpret market trends and developments

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.

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 zeldos commitment to customer satisfaction
Customer surveys in form of suggestion card could also be used as a
source of market research

Interpret market trends and developments

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

Interpret market trends and developments

Paramjit Singh
60000

50000

40000
cost
30000

sales

Column1
20000

10000

The above given break-even analysis indicates that $45000 will be

needed monthly to reach break-even point.

Sales and cost forecast

The first year will be used to get restaurant running, customer awareness
and making long-term (loyal) customers. For second year it is assumed
that the business sales will progress and profit will gradually increase by
beginning of year two.
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

Interpret market trends and developments

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

Marketing Expense forecast

Marketing expenses make a huge impact in the first year on the budget
plan as they are ramped up in first year and needed to be budgeted.
According to marketing expense budget the percentage of marketing
expenses such as direct mail, bmag ads and promotions is going to
decrease due to the customer awareness of restaurant as well as gathered
information about market trends and developments. Ready-made
marketing will periodically examine and validate marketing costs and
ongoing sales for forecasting.

8. Role of economic and social trends

on basis of data obtained from economic forecasts; due to decrease in interest
rates and having average income of over $60,000 makes Graceville a budding
place for our business.in future government is going to focus on work/life
balance in terms of legislative direction which seems good for the business.
9. Conclusion

Interpret market trends and developments

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.

10. References---- http://marketresearch.about.com/od/Market_Research_Basics/a/MarketResearch-101-Data-Analysis.htm

http://www.b2binternational.com/techniques-tools/statisticaltechniques/correlation-analysis/
http://fyi.uwex.edu/downtown-marketanalysis/#_Market_Analysis_Process
http://en.wikipedia.org/wiki/Turnover_(employment)
http://www.businesstrainingcollege.com/business/How-do-I-Write-aBusiness-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

Interpret market trends and developments