Ostrich King – Burger & Steakhouse will be launched in the heart of New York City.
This project is by the international brand of Coca-Cola. With a rapidly developing consumer brand and growing customer base Coca-Cola is bringing something new and different to the market. The signature line of innovative, premium, ostrich meat includes grilled ostrich meat burger with BBQ sauce and fresh vegetables, signature ostrich steak with special sauce and ostrich meat rolls. Ostrich King also serves distinct salads, desserts, and beverages. Nowadays, everybody is looking to experience different food that unites quality with good experience and amazing taste. In today’s extremely competitive environment, it is becoming gradually difficult to distinguish one fast food outlet from another.
Ostrich King will reinvent the fast food experience for families, individuals and take out customers by selling high quality, innovative products at a reasonable price, convenient locations, unique taste and providing industry-benchmark customer service. (Specialty foods news, 2016)Start-up cost will be around $970,000 with $2.3 million sales in the first year and a net profit of 19%. 100% growth is expected after the first year and a steady of 35% growth in the next 4 years.2.
0 Market Analysis2.1 CustomerDeliberately, focusing on the 18-multi-year maturity in working-class territories near our setup helps serve the requirements and necessities of our clients, and adjusts sensibly with our style of an eatery and showcasing plan. Regularly, the upper white collar class in the 18-45 territory are families whose youngsters run from little children to teenagers, yet keep on having “dispensable” dollars accessible for a quality redirection to make tracks in an opposite direction from home and work. (Yasin, 2017)Our SECOND-TIER advertises gathering (46-59/$55,000 to $80,000) will, likewise, discover an incentive in flavorful nourishment and great administration. Third-TIER basically stretches out the market span out to a five-mile territory, with similar socioeconomics incorporated into levels 1-2.
Fourth-TIER (60+/$65,000+), speaks to a market that has plenteous extra cash and genuinely venerates mindful, proficient administration. Ostrich King serves the majority of its dinners with an alternative to cooking with no or little flavors. This customization is abundantly valued by this gathering, who regularly lean toward dinners cooked to their very own particulars.2.2 CompetitionThe main competition for Ostrich King comes from various major fast food chains and restaurants like Subway, McDonalds, and KFC etc. Our most competitive edge is our unique menu and our managers, and their willingness and ability to create goodwill amongst our customers and to overcome any apparent difficulty, and turn it into a positive experience for customers.
2.2.1 Porter’s 5 forces modelTo perform the competitor’s analysis here we will use Porter’s 5 forces model. Ostrich King Competitive Analysis using 5 forces modelSr. no Force How it affects business Contributing factor Counteraction1 Competitive rivalry Competitive rivalry is very low to none. As mentioned before there is almost no competitor that provide this unique fast food menu • Unique menu • Further expansion2 Supplier power Supplier power is high.
As our services require constant and on time deliveries from our suppliers. So supplier power is high • Continuous requirement of on-time deliveries and fresh raw materials • Back up list of suppliers in the emergency situation • Only a few suppliers available • Future plans for ostrich farming3 Buyer power Buyer power is low because of very few competitors • Ostrich meat newly trending • Create awareness through advertisement4 Threat of new entrants The threat is new entrant is high as it is a low-risk business. But at the same time, it requires a lot of effort to manage • Low-risk business • Promote through main brand Coca-Cola • Low startup cost (in form of a small stall) • Advertisement • Low barriers to entry • Promotion packages5 Threat of substitute The threat of substitute is high. As time passes new trends are introduced in the market every passing day • Continuous change in trend • Increase presence in social media and keep up to date with changing trends3.0 Market research3.
1 Market TrendsThe market trend for restaurants is ruled toward a classier customer. The restaurant supporter today relative to yesterday is more urbane in a number of different ways.• Food quality.
The fondness for high-quality ingredients is increasing as customers are learning to appreciate not only the quantitative but also the qualitative differences.• Presentation/appearance. As an appearance of an element of food becomes more pervasive, customers are learning to appreciate this aspect of the industry.
• Health consciousness. As Americans, in general, are more conscious of their health, evidenced by the increase individuals exercising and health club memberships, customers are requesting more healthy substitutes when they eat out. • Selection.
People are demanding a larger range of foods; they are no longer accepting a limited menu.3.2 SWOT AnalysisThe following SWOT analysis captures the key weaknesses and strengths within the company and describes the threats and opportunities facing Ostrich King. (Bhasin, 2018)Strengths• Strong relationships with vendors that offer high-quality meat and frequent delivery schedules.• Excellent staff who are exceedingly trained and very attentive to the customer.
• Great retail space that is clean, bright, and located in an upmarket mall, suburban neighborhood, or city retail district.• High buyer loyalty among repeat customers.• High-quality food offerings that surpass competitor’s offerings in quality, performance, and price.• Customer’s trust with already existing Coca-Cola brand.
Weaknesses• The struggle to repeatedly appear to be cutting edge.Opportunities• Growing market with a substantial percentage of the target market still not knowing that Ostrich King exists.• Increasing sales opportunities in take-out business.• The ability to spread overhead over numerous revenue centers. Ostrich King can spread the management overhead costs among the multiple stores, decreasing the fixed costs per store.• Being one of the very few ostriches fast food chain Ostrich King can potentially increase their sales very fast by creating a new fast food trend.
Threats • Competition from local restaurants that respond to Ostrich King’s superior offerings.• A slump in the economy reducing consumer’s disposable income spent on eating out.3.2.1 Inter factor evaluation/ external factor evaluationInternal factor evaluation matrix Key internal factors Weight Rating Weighted score Strengths 1 • Strong relationships with vendors that offer high-quality meat and fast/frequent delivery schedules.
22% 4 0.882 • • Excellent staff who are exceedingly trained and very attentive to the customer. 14% 4 0.
563 • • Great retail space that is clean, bright, and located in an upmarket mall, suburban neighborhood, or city retail district. 12% 4 0.484 • High customer loyalty among repeat customers. 8% 3 0.245 • • High-quality food offerings that surpass competitor’s offerings in quality, performance, and price. 5% 3 0.
156 • Customer’s trust with already existing Coca-Cola brand. 25% 4 1 Weakness 1 The struggle to repeatedly appear to be cutting edge. 6% 1 0.06 Total weighted score 92% 3.37External factor evaluation matrix Opportunities Weight Rating Weighted score1 • • Growing market with a substantial percentage of the target market still not knowing that Ostrich King exists.
22% 3 0.662 • Increasing sales opportunities in take-out business 8% 2 0.163 •The ability to extend overhead over multiple income centers. 16% 2 0.324 • Being one of the very few ostriches fast food chain Ostrich King can potentially increase their sales very fast by creating a new fast food trend.
30% 3 0.9 Threats 01 • Competition from local restaurants that respond to Ostrich King’s superior offerings. 10% 2 0.22 • A slump in the economy reducing consumer’s disposable income spent on eating out. 14% 3 0.
42 Total 100% 2.66The company scored 3.37 out of 4 in internal factor evaluation, which shows that the company’s strategies are good and the company is strong against its competitors. On the other hand, our company scored 2.
66 out of 4, which indicates that that company’s strategies are neither effective nor ineffective in exploiting opportunities or defending against threats.3.3 GE matrixThe BUs is evaluated on two axes: industry attractiveness and a competitive strength of a unit.Competitive strength Ostrich Steak Grilled burger Other side menu and drinksFactor Weight Rating Weighted score Rating Weighted score Rating Weighted scoreMarket share 0.13 4 0.52 3 0.
39 2 0.26Growth in market share 0.14 4 0.56 4 0.56 2 0.28Brand equity 0.
1 5 0.5 5 0.5 2 0.
2Service deliverance capacity 0.25 3 0.75 4 1 3 0.75Profitability relative to competitors 0.2 3 0.
6 3 0.6 2 0.4Product differentiation 0.
18 4 0.72 4 0.72 3 0.54Total 1 3.65 3.
77 2.43Industry attractiveness Ostrich Steak Grilled burger Other side menu and drinksFactor Weight Rating Weighted score Rating Weighted score Rating Weighted scoreMarket size 0.13 3 0.
39 2 0.26 2 0.26Market growth rate 0.18 3 0.54 4 0.
72 2 0.36Demand variability 0.1 3 0.3 2 0.2 3 0.3Industry profitability 0.
15 3 0.45 3 0.45 3 0.
45Industry rivalry 0.21 2 0.42 2 0.42 3 0.63Global opportunities 0.
15 4 0.6 3 0.45 2 0.
3Pest factors 0.08 3 0.24 3 0.24 3 0.
24Total 1 2.94 2.74 2.54?GE Matrix Competitive strength High Medium LowHigh Medium Low In the GE matrix, the blue colored boxes shows that if a product lays there the business should invest into that product as they promise the highest returns in the future. In our case, it is the grilled burger & ostrich steak, which are two main components of our business. The green boxes show the area where if a product lays the business should invest in it and help it grow only if the business has surplus money from the invest/grow products.
Out, of this if there were money to invest the company would invest inside orders. Lastly, the red boxes show the products that are operating in unappealing industries, don’t have maintainable competitive advantages so they are divested or harvested3.4 Marketing MixOstrich King’s marketing mix is comprised of these following approaches to pricing, placing, advertising and promotion, and Products.• Pricing. Ostrich King’s pricing scheme is that the product cost is 45% of the total retail price.• Distribution.
Ostrich King’s food will be distributed following a take-out model where customers can come into the diner, place the order and wait for it to be finished and dine at the restaurant.• Advertising and Promotion. The most effective advertising will be banner ads as well as a PR campaign of informational articles and reviews with our existing brand• Product. Ostrich King will be starting with basic products as mentioned before including the signature ostrich steak, grilled ostrich meat burger, and other side orders and drinks.3.5 PESTEL Analysis(Political):The political factors disturbing fast food industry can vary from place to place.
Compliance is very important. Globally, the fast food chains have to comply with these rules. There are regulations related to food quality, hygiene, and wages that need to be complied with. The minimum wage laws can differ from country to country. In countries where pay rates are high, the labor prices are high.
(Kotler and Armstrong, 2018) (Economic):The recession affected the fast food industry more or less. But since it passed, spending per consumer has increased. Most of the restaurants have added economical options to their menus and enhanced customer service. In the just US, more than 200,000 restaurants provide for more than 50 million people daily.
With economic movement surging globally, the expenditure on fast food could increase further in the future. (Social):Lifestyle and health trends also affect the fast food industry. Health consciousness has affected the whole food industry. It consists of not just fast food, but appetizers and beverages and all other diets. People now contemplate before they eat. As a result, it had to implement measures like showing the dietary content on the label and decrease calories in the items.
(Technological):This sector does not rely only on the appeal of its menu and the food quality. Convenience and customer service are also major issues affecting sales. Social media channels developed the most important venue for appealing customers. The use of digital presentations and kiosks affected orders. Technology overall has assisted brands to serve customers through ground-breaking channels and in innovative ways.
(Environmental):Sustainability was another important issue to impact the industry globally. Fluctuating government rules and regulations pushed the brands to implement a greener approach. Food-related laws grew firmer. Whether the US, UK or Europe, the quality standards have become stiffer everywhere. Legal:A legal aspect of the food industry has seen vital changes happening throughout recent decades. The pressure due to altering legal requirements has risen.
Food quality and nutritious value are the major ranges affected by the law. 4.0 Market Planning