J-Food has an opportunity to become the first one to shift in the "all-you-can-eat steak buffet" notion to grow into a market leader. The steady attractiveness of steak along with a perception of economy in buffet seems to be the perfect combination in foreign markets and is bound to produce the same results here (Clancy et al., 2000).
By analyzing the situation in the market, we have characterized groups into various subdivisions. The only exclusion comes when we characterize our subdivision for lunch. We strongly trust, and have observed, that a much widespread desire prevails for this lunchtime slot because our pricing is on the economical side and includes our J-Food's Specialty Beef burger. The following are our targeted subdivisions (Clancy et al., 2000).
* Age -- Aged, Baby-Boomers, youthful couples with children, and labor of all areas.
* Family Unit -- We will send requests to small families with infants or large families with kids under the driving limit. Mostly, our customers have families with two earners.
* Gender -- We are trying to evenly focus on both genders with a little favor towards the males because they are more likely to eat more red meat.
* Income -- We will plea to the higher-low level income families to everyone in the middle income stage.
* Occupation -- We will aim the labor class, youthful experts with a family, and majority of mid-America.
* Education -- We will target the high school alumni, or persons with some college degree
By our description, we will have a wide plea for our conception. It is our objective to become the first choice restaurant for majority of the Americans (Clancy et al., 2000).
Target Market Segment Strategy
J-Food proposes to provide to the bulk of mid-America. We prefer this group for many significant reasons. Primary and principal is the absolute size. With our eateries having a placement of around 400 persons, we will require a wide bottom and major requirement of the food accessories, parking and sitting space to accommodate them. It's our target to have an enough for everyone, every time (Joshi, 2005).
Secondly, it is an extremely important user group. In previous years, Americans ate out around 3.7 times per week (that means dining out on alternate nights). They are on permanent incomes and look for good relationship with respect to value for money (Joshi, 2005). Finally, this collection will see a significant expansion in their figures for the next 10 years. If we can carry on to fulfill the demands, we can observe same store enhancements for the same time period. We will nevertheless adjust according to their varying requirements and set of choices to sustain their allegiance. For majority of the part, this group of people is in a hurry because of time constraints, so our buffet approach suits their service perfectly (Keller, 2002).
The plan for lunch is two-fold. Firstly, we are offering brand new ground J-Food's Specialty Beef burgers to try to fulfill everyone's need for hamburgers in America. Mostly people deal with sandwiches for lunch, not elaborate lunches. About 50% of our hot meals will be substituted with cuts of tomatoes and onions, pickles and relish, and diced or whole lettuce. Our visitors will select their J-Food's Specialty Beef burger at our show area, along with melted cheese or chilly BBQ sauce, and self serve to the best French fries in the region because of our extraordinary mixture of spices. A freshly grilled succulent J-Food's Specialty Beef burger is too hard to resist (Keller, 2002).
Secondly, so as to vigorously compete in the fast-food business we aimed to maintain a lower price point in the lunch time. Presently at $12, our offerings are numerous and we are just over the QSR segment. Along with a variety of fast food items, our menu incorporates drinks, salad, sandwiches, fries, and dessert. We have decided to decrease the fast food variety in the dinner menu, which will be helpful in maintaining and aligning the food expenditures to reduced prices. The motive of this tactic would be to create a winning situation for us in preserving our core market segment along with expanding the customer base in the lunch time to incorporate teenagers, professionals, and singles (Lenskold, 2003).
The targeted market faction which we selected is observed as favorable by J-Food. According to a latest Consumer Reports on Eating Share Trends (CREST) survey, following are the necessities on which we will accentuate in J-Food (Patterson, 2008). Our established core faction:
* Looks for strong value.
* Requires assortment along with taste in the menu.
* Gives importance to swiftness in providing service.
* Requires a dining experience full of entertainment.
* Persists on formulating a dining environment entailing the attributes like cleanliness, friendliness, and attractiveness (Philip, 2008).
After seven months since the commencement of second steak buffet restaurant; a market analysis was performed in the month of February of 2000. Nearly 505 customers belonging to the vicinity of the restaurant were asked to give their opinion regarding the experience they had there, and rate it accordingly (Ries and Trout, 2000).
Service Business Analysis
In America, a swift expansion has been witnessed over the past twenty years in restaurant industry and presently it is approaching towards the life cycle's maturity stage. Nowadays numerous elements played their part in the expansion of consumer demand of top-notch restaurants in America. Prevalently, the number of household incorporating more than one wage earner has augmented which has consequently affected the pattern of buying behavior; along with this individuals thrive for additional spare time so as to socialize more effectively (Schultz and Kitchen, 2000). Hence, the competition has become stiffer and demanding as quite a large number of restaurants compete for attaining greater profit margins as compared to their competitors. According to the present scenario, the restaurant businesses which are strong and sturdy enough to tackle the challenges will be able to preserve their existence and surely will flourish (Allen et al., 2000).
In the wake of such a severe competition, restaurant businesses willing to progress will have to endeavor in formulating distinguished and unique practices so as to have a competitive edge on the competitors. The J-Food's founder comprehends this necessity of distinguished and unique practices, and has a strong conviction that the combination of steak along with buffet is a distinctive idea and will lead to success. The reality that none of the national chain ever came into this notion provides us an opportunity and access to a revenue generating niche of this market (Betts, 2000).
Competition and Buying Patterns
The year 1999 proved to be a flourishing year for restaurant industry, when the consumers augmented their consumption even though the restaurants not performed to their fullest potential. The consumers were not propelled by promotional tactics instead they made their buying decisions purely on their instincts (Carter, 2000). The management of restaurants acted prudently as no additional unit was erected which did not happened since early 1990's. Even though the American market tackled hardships throughout that year but at the end of the year things shaped up well for the year 2000 (De Figueiredo, 2000).
The growth rate of GDP-Gross Domestic Product escalated to four percent and it finished strongly at the end of the year. The disposable personal income as compared to the last two years escalated at a slower rate. The CPI-Consumer Price Index ended at two percent and unemployment rate persisted to lessen during the year (De Figueiredo, 2000).
Sustainability of the current upward trend in the economic conditions is one of the most important concerns of the workers working in restaurant industry. As we have seen in 1998, the growth rate dropped to zero after a rapid growth in restaurant business. Since the recession of 1990, after a very long time this was first time that there was no growth in the total number of restaurants (Deutsch, 2000).
While looking at chains, the ones which have small chains, which have less than 99 units, saw decline in their unit counts; whereas, the ones which are more aggressive were able to maintain their numbers between 100 to 500 units (Deutsch, 2000).
Conventional behavior of operator community might have resulted in an unexciting year for restaurant industry, but that was not the case due to the fact that the consumers, no matter what, kept buying foods prepared by restaurants. In the year 1999, per person rate of the number of snacks and meals bought from restaurant had been up to 158 per year which is indeed nearly half of a year (Elliott and Rutenberg, 2000).
Due to rise in both guest check and traffic counts; there has been a 6.5% increase of consumer spending in restaurants. In 25 years of CREST's history, this has been the most longest and strong expenditures growth for restaurant industry (Elliott and Rutenberg, 2000).
To conclude, year of 1999 was the best for restaurant industry. There was an increase in…