Study On Identifying New Market Potential †Myassignmenthelp.Com

Question: Discuss About The Study On Identifying New Market Potential? Answer: Introduction Fast food industry is responsible to provide variety of food at an affordable rate. The concerned industry generates revenue of over $570 billion as per the analysis of 2017 and expects an annual growth of 2.5% in the next few years (Subway.com, 2017). Subway holds the third largest market after KFC and McDonalds in the fast growing food market. It is running successfully in 88 countries with more than 30,000 subway outlets (Subway.com, 2017). It has given employment to more than 1,50,000 people across the world and still seeking more opportunities to open more franchise (Subway.com, 2017). Eat Fresh is the slogan of subway and the business aspect that provide them the competitive advantage is that they only use fresh breads and salads to prepare sandwiches. Some of their most sold products are Carved Turkey, Roast Beef, Over Roasted Chicken, Subway Club, Black Forest Ham and Veggie Delight (Subway.com, 2017). Subway has many competitors like KFC, Sunset Boulevard, McDonalds and Burger King and Jimmy Johns. McDonalds had the highest market share of 22% with 83 outlets in 2007 (Ganzel, 2016). Burger king with 15 outlets was taking 3% of the market share and Sunset Boulevard had 27 outlets and same market share as Burger King (Forbes.com, 2017). The market share of the sandwich according to the IBIS report is 12.6% and chicken based fast food is 19.7%; while the burger has the market share of 26.5% and 16.6% share is for pizza (Ibisworld.com.au, 2017). Image: Fast food product and service segmentation (Source: Ibisworld.com.au, 2017) Compared to the business operation of Subway Jimmy Johns, a gourmet sandwich provider is the major competitor. According to the IBIS report, the market share of Subway is 62.4% compared to Jimmy Johns, which is only 6.8% (Ibisworld.com.au, 2017). Moreover according to the Statistas analysis, Subway is only preceded by McDonalds. The below is the statistics of the brand preference of younger and older millennial for the year 2016 (Ibisworld.com.au, 2017). Image: Fast fashion brand preferences by younger and older millennial (Source: Statista.com, 2017) Research Problem Business in order to enhance their brand recognition, attaining broader customer base and favorable financing opportunities, opt of business expansion. In this research also the expansion of Subway in Melbourne is taken into consideration. It is evident that business, who do not opt for expansion does not believe in globalization cannot get competitive advantage and thus globalization is crucial. Subway being the leader on their business operation should desire to open their outlets and franchisee across the nation so that greater profitability can be attained. The main aim of the research is to find out the benefits to locate the new stores and to expand the franchisee operations in Melbourne. To achieve this objective, the customers, the competition, market situation, franchising concepts will be evaluated and assessed. Size of the market, potential growth, environmental factors, and trends will be evaluated to understand the franchisee model in the market. It will also help that if the market has matured and it has the potential to grow. Research Objectives The research will give complete background about the Subway Chain, Franchisee Concept and the customers. Melbourne fast food market and the competition analysis To identify if the Melbourne is attractive enough for the franchisee model of Subway and what opportunities it offers to the entrepreneurs. To seek the attractive location of the Subway outlet Market Information Diaz Ruiz (2013) depicted that for any organization it is important to know the place and the market they are operating into. Entering into the market possibility and customers potential are very important (Laszlo, 2015). Furthermost, studying the macro environmental factors that influence the market are important to know. Macro Analysis Political Factors: The political factors that should be considered in case of Subway is to follow the health and safety guideline. The labeling and the exact detailing of the products composition legislation should also be adhered. In Australia political imbalance may rise due to animal rights campaigns. Thus, Subway has to adhere all the political aspects and legislation in collaboration with local governing bodies. Economic Factors: The GDP of Australia was 1204.62 billion and represents 1.94% of the world economy (Tradingeconomics.com, 2017). Subway being a famous organization gets the benefits of support from major suppliers as they desire to enhance their economic condition. The set- up and franchisee cost is low in Australia and thus Subway do not face much difficulty in opening their outlet in Melbourne. Social Factors: In terms of social factors, Australias community mainly belongs from mid-income family group, who intends to experience branded products but look for affordable services. Subways products are not much expensive. Moreover, people in Australia and mostly self-dependent and has busy life. These people are less likely to cook food by themselves and prefer a brand that is equally healthy and fits in their budget. Thus it can be said that Subway will get a favorable social response if they expand their business in Melbourne. Technological Factors: People in Australia are educated and prefer technological development in their daily work so that their work can be accomplished faster. Computer ordering, inventory management and technology of cutting and dressing of the sandwiches can be adopted by Subway for more customer preferences. Micro Analysis Subway should consider their competitive analysis to address whether they can provide new to their customers. Thus, in this case, the competitor analysis is discussed so that the longevity of the organization can be assessed. Porter 5 forces is discussed in this section that comprised of five aspects- threats of entrants, threats of substitute, power of suppliers, power of buyers and competitive rivalry. Threats of entrants: The treats of new entrants is medium to high as a new organization need years of trust to build their organization as much established as Subway. Subway has huge customer base and thus it is difficult for another new organization to attract their customers even though they offer less cost. Threats of substitute: The threats of substitutes are high to medium as younger customers prefer fried and tasty products compared to fresh and low tasty products. Thus, maximum pressure of substitution of products is from organization like McDonalds and AW. Power of suppliers: Suppliers of subway are relatively low. The prime reason is that their main ingredients that they use are always fresh and in demands. Local farmers also desire to associate with a leading company like Subway for their economic development. Power of buyers: The powers of buyers are low to medium as Subway offer food products that are different and unique from other organization. Subways low pricing strategy and use of fresh vegetable attracts fitness conscious customers towards their brand. In addition to that, they also do not prefer deep frying rather that they offer roasted products. Thus, the bargain power of customers is low. Competitive rivalry: The intensity of rivalry is high as large industry size resembles the presence of many competitors. The major competition in Australia is with Quiznos and Jimmy Johns. These organization offer products like Torpedoes and Sammies that is not available in Subways menu. Moreover, there are many sub brands like- Bobs sub and Viet Subs. However, customer can choose their subs with the ingredients that they prefer and this is the main attribute that provide competitive advantage to Subway. Numerical factors: Subway can estimate their market growth both in terms of online and offline business procedure. Hus, it can be stated that the annual growth in the year 2017 will be 3.8% with respect to 2014 and by the year 2020 the market growth is estimated to rise by 3.7% compared to that of 2018. Consumer Information Information about the customers is vital to know for any organization to understand that how easy or difficult it will be operating in the market. Potter et al. (2017) depicted that knowing about the competition situation, surveys, discussion and questionnaires are some of the market research tool. Quantitative market research will be used for Subway. A Survey will be made to find out the potential customer. 2.2.1 Consumer behavior: Subway should formulate new sandwich types and stock more ingredients so that they can offer ore options for the customers. In addition to that, everyday Subway can offer new option of Todays Special Sub. This approach allows the first time customers to experience their products without any confusion. 2.2.2 Consumer attitudes/perceptions: Subway should also offer online services and home deliveries so that customer can buy their products more often. It is recommended to Subway that they should conduct a feedback analysis from the customers, who avail their service from their outlets so that the organization can get the idea to produce new options for the sub. In addition o that online feedback should also be conducted for taking information from other customers. 2.2.3 Consumer demographics: Subways can segment their customers based on their demographics like- age group, income level and life style. Demographics Young Adult are the current as well as future customers for the fast-food joints. It is important for both men and women, both of them like healthy, fresh food and quick food. Socio- Economic Educated population spends more on the healthy food. Hence it is important and relevant consideration. Occupation Students, Housewifes, Young professionals, employees, self, employees all comes under the category. Age group: younger millennial (18-24 years) and older millennial (25-35 years) Income level: Mid income group to high income group Life style: People preferring healthy life style and who also like fresh food. Choice of the most important target segment and specification is included in Targeting (Hollensen, 2015). It is based on the segmentation and questionnaire results. The two major groups that are formed are students who have low budget and want to enjoy meal with friends and Singles / Married between the age of 26-35 who are working professionals and dont have much time to cook and look for a quick healthy meal. Research Design Secondary Research: Secondary research is the research in which the data is analyzed which is already collected. Its second hand information Primary Research: Primary research is research in which the first hand data is collected by the user, it a brand new information. Primary research can be both qualitative and quantitative. Qualitative Research: Whenever the data is to be observed, it does not include any measurement or statistics. Quantitative Research: It is method which is used when modeling and analyzing customer, collection of data completion information and market information is required. It is used to evaluate the results and data collected. The research design used for Subway market is Primary research and Quantitative research, primarily to find out who can the franchisee customers for the subway, survey has to be done. To know the customer preference and prospects of opening new restaurants, a questionnaire is to be used. Data Collection Method For subway, Quantitative data collection method is used to know the customer preference and the prospects for opening new joints in Melbourne. A questionnaire is formulated that consists of some questions based on preferences of the subs, quality if the food, price for subs, reasons for purchase from Subway. The questionnaire also includes the personal data, buying behavior and buying motive related questions. This questioner are physically distributed to the Subway customers and also circulate through online. The questions should below related to the below topics and is handed over as a hard copy. Interest in healthy and quick food Knowledge about Subway food Rating from customers on the quality of food served, atmosphere, delivery, price How often they eat fast food How enticing is the free offers and combo schemes The prime reason for collecting the primary data is to avoid the biasness regarding the organization. Customers can clearly provide the details of the current scenario of the market position and customer requirement which on the other hand provide ideas to enhance the business performance. Sample Design Sample designing is one of the most important for the Subway research plan. Saris and Revilla (2015) stated that it will help the management understand the depth of the market by taking the real samples from the market. The target audience that should be taken for the sampling and should be interviewed will be Young Adults from the age of 18 yrs. to 35 yrs. target should be taken. They are the one who are earning, spend time outside with friends and family and have less time. They are more dependent on the fast food. Probability sampling technique will be used for the research primarily the reason because all the research respondents are getting equal chances to participate in this research. Every person chosen will be given a fair chance and will lead to non-biased results and is quite conclusive in nature. The suggested sample size for the research will be 200 so that an accurate market condition can be obtained. Analyses Reporting Requirements Ensuring the requirements of the report are captured in the right format is the vital step even before collecting and analyzing the data. For evaluation, reporting an integral part. It helps demonstrate the impact, communicate the results, track and monitor the progress. Top Line Report: Top line reports are the detailed research report that requires approval at various levels. It provides the summary for current and the future reference. It is a kind of detailed documentation which can be presented to agencies, Stakeholders, marketing communication, RD team etc. Finanacial Report: Final reports present the final or the most important outcome of the research in summary format. It consists of 8-10 pages report which has key findings, actions and conclusions. It does not have the methodology, background, graphics and key findings. For the subway research project, Top line report is recommended because it will have the indicated actions, key findings and conclusions. It will summarize the key learnings and the objectives of the research. It will also guide on how to take next action and move forward basis the research study outcomes. Format Word is recommended format over the Power point presentation. Since we are using the Top line reporting format which will have the detailed analysis of the report, PowerPoint is not suitable. Word format will be able to explain the details and in a better way and the printout out of the document can also looks like a proper report. One report is recommended in a word format which has the detailed study of the research from the beginning till the end is preferred. One report will be able to provide the complete picture like problem statement, key findings, actions and conclusions. Methods for Analyzing Quantitative data Punch (2013) depicted that quantitative data analysis is a systematic method to investigate the numerical data which is collected. It helps in answering the questions of what and how many. The quantitative approach will help finding the proof which will either support or contradict the hypothesis of the research (Creswell, 2013). Sources of the quantitative data are questionnaire, interviews, observations and it is presented in tables, graphics and summaries. For example online surveys are a very good example and popular way to create analyses and distribute the questionnaire. One can select many questions likePresenting Research findings Pie Chart: Pie chart is the tool which is used when the comparison is done as whole, it does not reflect the changes over the period of time (Best Kahn, 2016). Bar Graph: Bar Graph is used when the compassion is to be done between two different groups and reflects the changes over the period of time (De Vaus, 2013). For the study of Subway research both the charts are recommended and they are useful. For example, representing the revenue of Subway in other countries can very well be shown in the bar graph or the revenue in one country over the period 10 yrs. can be reprinted in Bar Graph. Pie charts can be very useful used where the questionnaire answers. How much percentage of population has said yes each question and how much has not agreed. Timelines and Budget Research is not an easy job; there are so many task, people and responsibilities involved in it. Hence a research map or a guideline document is required to provide the map for the entire process which is also called Gantt chart. It makes the work faster and clearly defines the responsibility guidelines (Fleming Koppelman, 2016). It helps in breaking down the structure, showing relations with each other in a team, schedule of the work is clearly defined, critical path method is used. S.No Task Timeline 1 Project Agreement /approval 10 days 2 Designing Questionnaire 15 Days 3 Data collection 1 month 4 Data Gathering 15 days 5 Analysis 7 days 6 Reporting 7 days Estimated Budget: $350,000 Selection Criteria S.No Selection Criteria Description 1 Research Context and methodology Precise and clear description of the background and the situation and the subjects involved, Quality and competence, appropriately define the methodology and research inquiry. 2 Discussion and Conclusion In detail interpretation of the findings of research, well defined limitations in the report study, quality and completeness of analysis 3 Presentation Coherence, red ability, concepts presentation, tables, facts figures, effective organization are the key elements. Use of comprehensible and clear language 4 Transparent and systematic collection ND interpretation of qualitative data Report findings should be accurate and it is based on how much systematically the data is gathered, the methods should be rigorous 5 Contributory in providing wider understanding and knowledge about the field studied The study done should be able to contribute to the knowledge advancement and the participated company should be benefited with the results. Codes of Practice- Market Research: Proposals, commissioning and design This is one of the very important principal under the AMSRS code. It is related to the integrity of the research organization in which the things, policies and guidelines are clearly and defined before the commissioning of work (Millum Sina, 2014). For example the identity of one client is not disclosed to the other client if they are of same completion, if any third party is used for the work the organization will inform the client befire.Transparent and accurate reports will be provided proposals and cost of the project is defines in advance. All these are vital for any organization to work on the fair grounds and do the fair dealings. Informed Consent Another vital principal under AMSRS is informed consent. There will be a selected population who will participate in the research work. They should be informed about the research agency and the privacy policy (St John et al., 2016). The population should know the purpose of the collection. Which is the agency doing the research and the why they are being selected for this. No unsolicited pictures or information captured during the survey should be the part of the analysis or saved by the organization. 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