Healthy Fast Food Restaurant

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Executive Summary

This is a new project being introduced in a market that is relatively old. In this market, there are firms that are very developed and have acquired a large market share. The project committee is aware of competition that exists in this market and has designed means through which the project would be introduced without facing stiff competition that characterizes the market. After conducting market research, it came to our realization that the current fast food stores in New York are offering food that contains very high contents of calories.

These firms are not keen on offering healthy foods. This has left a gap in the market. Those individuals who may need food that is free from excessive cholesterol lack proper places where they can get this food. The project t aims at capitalizing on this gap.

This project aims at capturing a large market share that is able to sustain its operations. Those targeted by this project are the health sensitive individuals who have started avoiding current fast food stores. The main goal of this project is to establish a leading fast food store that offers healthy foods. The project committee has laid down the type of menu that will be served and all the items available for sale are food with minimal levels of calories.

The management committee will work hand in hand with employees who will be responsible for daily running of the project. As the project plans to offer most of its products at relatively cheap prices, it is recommended that the cost of production be keenly monitored. The management committee has recommended acquiring the materials for preparation of meals directly from famers where they would be cheaper than in the shops around New York City. This would help the firm in its strategy of being the cheapest fast food store in this city.

Introduction

Individuals have become sensitive on the type of food they consume. There has been a sharp rise in the number of reported cases of people suffering from diet related diseases. Obesity is one such disease. This disease is caused by excessive intake of calories. This results to a case where the body system cannot use all calories and therefore the excess has to be kept under the skin.

This results to increased body weight among the concerned individuals making them prone to a number of other related diseases. Many other diseases, such as high blood pressure, are also caused by poor diet.

In various occasions, individuals are always forced to take part of their meals in fast food restaurants. This is majorly dictated by the kind of professions they are engaged in. They may not be in a position to carry their own packed launch or go back home for lunch. Therefore, they resort to go to fast food restaurants where they can easily get meals at convenient time.

Others are travelers or tourists while others find such places more convenient than preparing their own meals. The need for fast food restaurants has been on the rise in many states in the United States of America. This has seen a number of fast food restaurants spring up in various streets in all cities in the country.

However, most of these restaurants have not incorporated the issue of healthy to their menu. They are yet to respond to the general concern raised by many medical practitioners, who have insisted that the type of food served in most of the fast food restaurants is not healthy at all. This is specifically so in New York City.

Current Market Situation

The market for fast food has been in existence for a long period. It is one of the oldest industries. Although it has experienced several changes due to changes in technology, this industry has maintained its traditional outlook. The current market situation may be looked at under the following specific areas.

Market Analysis

Food market is big when given a general outlook. However, this can be segmented, each with its own characteristics. Market segmentation is very important because through it, a marketer will be in a position to determine the characteristics of each segment hence know the products to dispose to various segments.

This project targets fast food sector in the market. People will always need places to buy snacks or food on daily basis. New York City is always very busy, as it is the center of many activities not only to the United States of America as a nation but also to other nations in the world. People will always come looking for fast food stores where they do not spend a lot of time.

The market size is relatively stable, with little variance depending on the day of the week or occurrence of special occasion or holiday. A good part of this market includes those who work in New York City. This market segment could help a firm develop a sustainable relationship. This is because they are always available and they can turn out to be long time customers.

Kotler and Armstrong (64) report that a human being develops a habit when he or she performs an activity severally. However, most of these individuals have developed a habit of visiting McDonalds whenever they need snacks. So strong is the habit that it has become practically impossible to change to new stores.

However, the city has a good number of visitors who come on daily basis. This number is relatively big and can sustain a firm that is keen to capitalize on them. Although this market segment may not look attractive, as a firm cannot develop a sustainable relationship with them, it is able to sustain a business, which has designed its marketing strategy to capture new markets. Those who visit such places are also likely to recommend a friend or a relative who may need to visit New York if their first experience was pleasant.

This market is prone to fluctuations in the economy. When there is a positive economic growth, the market would register a higher margin. This is because there would be many individuals who will be willing to spend their increased disposable income. On the other hand, when there is a general economic recession or depression, the market turns out to be unattractive as people restrict their expenditures. Some would prefer carrying packed lunch while others resort to going without lunch.

Inflation is another serious setback. When the economy is experiencing inflation, the industry players would be forced to buy their supplies at increased prices. This would force them to transfer the added cost to the consumer. This may not be very easy because loyal customers may demand for proper explanations for such changes.

Changing the prices of items sold to customers regularly destabilizes the firm. It may therefore force the firm to sell at the same old prices and bear the extra cost in order to win customer loyalty. The firm may as well transfer the extra costs and face the eminent danger of losing such customers. This can force a firm to exit the market.

Competitor’s Analysis

This industry is one of the most developed industries in the entire nation. There are so many stores specialized in selling fast foods. Some of these stores are large, with branches in most of the cities in the United States while others are considerably small.

One such restaurant is the McDonalds. This is one of the top brands in the world. This restaurant is not only found in the United States but also in many other European nations. It is known for its efficiency and the variety of foods it offers. This firm is very popular within this nation, especially after it established sections where children could play as their parents relax within the facility. This has made it very popular, especially to those who are looking for a place to relax with their families.

The brand is so strong that it has become identical to the term restaurant. Instead of one saying that he or she is going to a hotel, one would say that he or she is going to a McDonald. It has captured over sixty percent of the market share in this region. The interior designs of the facility, sales assistants, the management and the general atmosphere created in this place make it so serene. It is the firm to beat in the industry.

Another fast food firm established in this region is the Burger King. This is a giant firm with developed branches within the United States, specifically in New York. It has been in the market for some time and has gathered pace. The firm has kept McDonalds on the check. Its products are very popular among women and the youths.

Although it has not been able to capture much of the market share held by McDonalds, its presence in the market is heavily felt. Through its consistent advertisements in both social and mass media, it has managed to acquire new markets, especially those who want to relax as a couple without interference. It has designed its interior facilities to offer as much privacy as possible.

Many other firms are actively developing niche marketing in this industry. They have specifically identified specific target markets where they can sell their products. They do this to avoid stiff competition posed by McDonalds and such other companies. Many of these firms have found it necessary to step up their product promotion strategies.

The McDonalds have used advertising as their way of attracting new markets or maintaining the current customer base. It would use mass media for its promotional campaigns. Currently, the firm is considering the use of social media such as Face book, Tweeter and YouTube to advertise its products. This is because of the increasing popularity of these social sites.

The pricing of these firms is relatively fair. The prices of their products reflect the current economic situation. Offering products in this market at lower price may be a challenge as it may jeopardize the ability to make sustainable profits.

New Trends in the Industry

This industry has been subjected to debate from many quarters, especially among the health experts. It has been accused of causing various health related complications in society. This has seen a number of researches conducted. Unfortunately, the results seem to confirm this claim. It has been ascertained that majority of meals offered in these fast food stores are rich in fats and calories. They contain many calories, which is very dangerous to health.

Most of these meals are deep-fried to make them appealing to customers. They are appealing and very delicious but the health consequences are tragic. For this reason, many health organizations have recommended the change of diet.

Many of these stores are changing their marketing strategies. They are moving away from traditional ways of sitting within the restaurant premises waiting for customers to pop in system. Currently, they use various techniques to attract customers. One way is the use of lights, especially at night.

This would attract customers from the far end of one street. In some instances, well-dressed and very attractive waiters would position themselves strategically in the entrance of the restaurant trying to convince customers to try their stores. This shows the level of competition in the market.

Unlike before, these fast food stores allow customers to carry away packed meals. The customers come and buy meals, which are packed for later consumption.

Healthy First Food Restaurant

This proposed new restaurant is to be established within the New York City. As can be seen from the above analysis, it is a considerably old industry with highly developed players. The development of this restaurant was motivated by the general concern of various health experts who complained about the health statuses of citizens.

The health problems are brought about by unhealthy meals from many fast food stores in the city. The new firm intends to offer healthy food with very limited calories to the market. The restaurant would be the destination of those who are keen on the level of calories intake. Such individuals aim at staying away from such diet related complications as obesity.

For breakfast, the firm will offer whole wheat bread and eggs with blueberries. For lunch and dinner, customers will be served with grilled chicken, grilled beef, white rice, whole grain pasta, salads and vegetables. All these would be accompanied with sandwiches and fruits. No single meal would have more than 400 calories. The project is expected to start with one branch in New York and come up with other branches in other cities in the United States later.

The Market Position

This new project is getting into a relatively old industry. However, it has developed a niche that it intends to acquire once it is rolled down. Other giant players in the industry would overlook its introduction due to its size. The size would be negligible in the face of such giant firms. However, it would be appealing to those individuals who are keen on maintaining a body that is free from diet related complications. There are factors that may affect customer-purchasing rates.

One such factor is the level of income. High-income earners have more disposable income to spend on such products. However, this project may not be in a position to attract individuals who have very high income levels for they always go to five star hotels. Those with minimal income levels may also be irrelevant as they may not be in a position to buy products offered by the new firm.

The Marketing Strategy

Healthy First Food Restaurant is to be introduced in a market that has a large customer base. Furthermore, the industry has a highly developed level of competition. Giant firms such as McDonald dominate the industry. Because of financial strength of competitors, this project has been designed with a marketing strategy that would enable it avoid direct confrontation with market leaders, especially in pricing of products.

For this reason, it has differentiated its market from that of other fast food restaurants. The meals offered would strictly be health conscious meals. This would help it capture those who would avoid stores such as McDonalds because of the kind of meals offered. Because of this differentiation, the firm intends to sell products at reduced prices. This would look attractive to individuals who would avoid other stores because of high prices.

This is also expected to be more appealing to the current loyal customers of King Burger and McDonald. This silent approach is important as it enables the firm to develop roots without other competing firms realizing its potential. The firm would advertise its products using both the social and mass media. However, care will be taken to avoid positioning the firm as a direct competitor to other developed industry players.

As this project is planned to expand to other regions, it is expected that it would reach a moment where other players will consider it as a major threat. To counter this, the company will develop mechanisms through which its customers will be maintained. Such strategy will include establishing a relatively stable menu, quality meals, timely and very friendly service to customers, and engaging customers in research to determine what they expect from the firm.

SWOT Analysis

Through this analysis, a firm is able to determine the chances of success. This project has a number of strengths, weaknesses, opportunities and threats.

The project committee has ensured that this project has a number of strengths as it is introduced in this competitive market. The committee has identified various places where materials needed for this project would be acquired cheaply. This would enable the project to offer its products at relatively low prices hence attract more customers in the market. The firm will also stand out among many as the only one offering products that are free from cholesterol and other health related concerns.

It has positioned itself to target a different market segment from that of other major industry players. This makes it be seen as an inconsequential competitor. Therefore, large firms such as McDonalds would not consider it a direct competitor.

The team of committee members will be made up of individuals who are determined, with an ambition required in moving this project ahead. They have the right attitude and are self-driven. With support from other members of the team, the project stands a better chance of penetrating through this new and competitive market.

This project has a number of weaknesses. It is getting into a new market with relatively new forces. It may take time before adapting to this new market forces. It is observed that competitors may overtake it. The financial strength of this firm is also limited and it may not be in a position to finance all proposals made by the research team. This may jeopardize its intended position in the market as a firm that offers quality products at fair prices.

The managing team in this project consists of individuals who have limited experience in the restaurant industry. This is an impediment, as the project will require a lot, especially when it will be introduced to the market for the first time. It will require a team of experts in sales and marketing in order to gain footing in this new market at a planned pace.

The committee identified various opportunities available to this project. The market is full of firms that offer foods considered dangerous to health. They offer food with high calories at high prices. This project brings to the market food that is health sensitive, with minimal levels of calories. This gives it an edge over other major industry players. The pricing of the firm also gives it an opportunity to attract customers left out by other firms because of high prices.

The project faces a number of threats. One of the major threats is the stiff competition expected from other fast food stores that are already established in this industry. McDonalds is a leading fast food store in this market. It has well established branches in this local market and even abroad. The company enjoys economies of scale as it has several branches in various cities. It will be very challenging to shelf part of its market share.

On the contrary, it is easier for this giant firm to crash this project if it decides to do so. Many other competitors in this field such as King Burger have maintained growth for several years. The population targeted by this project is less sensitive when it comes to the issues of healthy eating. A report by Kotler and Armstrong (69) has shown that these individuals give priority to taste other than hazards that may be caused by some types of foods. This makes it difficult to penetrate this market, as many customers would consider the products less attractive.

This project would be introduced in the market with a perspective it would not be directly competing with other major industry players such as McDonalds. However, as the firm experiences growth, competition will be unavoidable. Large firms will see it as a competitor. This may result to such unhealthy market practices as price wars. These firms may also decide to offer similar products in the market as a way of ensuring that the new project fails to take off. Unstable economic conditions in the country may also be a hindrance to the development of this project.

This analysis is important in determining the ability of the firm to penetrate the market. Strategies employed in this project would heavily rely on its strengths and weaknesses, opportunities and threats. Through analysis, it will be possible to foretell the ability of the project to withstand market competition. Overall, the project has higher chances of succeeding.

Works Cited

Kotler, Philip and A, Gary. Principles of Marketing. 13th ed. New Jersey: Pearson Education, 2010. Print.

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