As many of these types of foods are purchased for special occasions, there is also the need for measuring just how many events that typically occur in the projected customer bases' lives during any given year to further estimate market size. Not only does the number of cakes and desserts need to be forecasted, but the flavors and type of cakes and pastries as well. In short, primary research must assist in the primary strategic positioning of the store, validate the store concept, define the market position in terms of pricing and quality levels define the menu and its contents as best as can be measured as well.
In contrast to secondary research where time and costs are typically the major constraints that force companies to use published market research data, the formation of a new business is one is best managed as a longer-term, more thoroughly researched, and more deliberate research strategy. As the risks are much higher when initially starting a new business the need for primary research is most critical to ensure there is a very high level of understanding of just what customers need in terms of a new store, its position, and the role of pricing as a differentiator. In addition, the menu of the proposed store needs to be very accurately tested and validated before the initial opening of the store, as both the bakery items, party items and overall store branding and messaging must all be consistent with one another.
In summary, primary research is critical for minimizing the risk of launching a new store concept, which includes the need for validating branding, messaging, market positioning, pricing and quality perceptions, menu selections and options, and event-driven sales all are understood before the store actually opens. Knowing these elements through primary research will significantly increase the stores' chances for success.
Specific Detail on the Vancouver, BC Bakery and Party Shop Analysis
In defining a highly unique market position for the proposed store concept, the dominant demographic trends in Vancouver, BC needs to be also evaluated. Using the source BC Stats (2005) the demographic landscape is analyzed in this section. What becomes immediately apparent from the analysis of the demographic data of the Vancouver metro area is the exponential increase in the Chinese immigrant population in addition to South Asian as well. As BC Stats (2005) titles this area Visible Monitories, the following graphic is also labeled by this specific name, and is shown below.
Figure 1: Visible or Traceable Minorities in Vancouver Source: BC Stats (2005)
The store concept needs to be evaluated from an ethnic perspective to potentially capitalize on this demographic trend. Additional analysis of the BC Stats (2005) demographic data highlights the increasing dominance of visible minorities in the BC province, with a net increase of 21.6% (BC Stat, 2005). From this demographic research it's also possible to analyze specific areas of the Vancouver metro area to see where ethnic growth has been the most rapid. In defining potential sites for the proposed store concept, the ethnic approach to also marketing the store needs to be considered given the dominant demographic trends that BC Stats (2005) is reporting. Using the data provided in addition to analysis of the Vancouver metro areas shows that the city of Richmond has by far the greatest concentration of Chinese immigrants, which is shown in Figure 2.
The use of demographic data is essential for the definition of potential locations for the proposed store in the event research shows that a strong ethnic positioning is attractive to the target markets. In addition, the use of this demographic data analyzed by location within the city also is invaluable in defining the research methodology for the primary research project as well. It is clear from the use of this demographic data that the rise of ethnically-oriented businesses in Vancouver presents significant opportunities, and in the planning of the proposed store demographics is useful both from a store concept as well as a primary research methodology foundation.
BC Stats (2005) - 2001 Amended Census Profile of British Columbia. Published September, 2005. Accessed from the Internet on October 17, 2007 from location: http://www.bcstats.gov.bc.ca/data/cen01/profiles/59000000.pdf
Figure 2: Richmond
Of Richmond's total population, 54% are immigrants.
Of Richmond's total population, 15% were born in Hong Kong, 10% were born in…