Evaluating Success of a New Venture 3 Squares

The analysis on the 3 Square Restaurant shows a wide variation regarding their marketing potential as well as the challenges they encounter in the process. Critically looking at 3 Square Restaurant, the business has the biggest potential to do great because of the strategies that the top management has instituted (Dimitri, & Oberholtzer, 2009). The implementation of the market segmentation is what has catapulted it to where it is today as more emphasis is placed on allowing their customers enjoy quality products and services developed to suit their needs. Through the marketing strategy, the company is effective; they are engaging, evolving, efficient, evaluating and have a vision for all the stakeholders in the company and most importantly its customers

Strategic marketers recognize the fact that target customers in food service are homogenous. They are never alike. The audiences primarily differ on social affiliations, personal preferences, attitudes, locations as well as demographics. Markets are fundamentally comprised of a variety of customers, segments, and sub-markets that all contribute to the overall business success of any organization. Market segmentation and strategic targeting of customers give foodservice companies the platform to deliver specific products to suit individual needs and preferences. Markedly, food service organizations need to understand the specific needs and preferences of their individual customers within different segments to appropriately promote their food choices, brands, and products. 3 Square Restaurant to be ranked among the best organic food restaurants in the USA will need to embrace its tradition to satisfy its huge customer base (Jurevicius, 2013). Through a sharp marketing strategy, the company uses appealing products and services at highly attractive prices.

3 Square Restaurant devised a clever method of overcoming the odds in its marketing planning (Dimitri, & Oberholtzer, 2009). Managing a pool of highly skilled employees across its different branches and overcoming many challenges is critical to its growth. It has continuously remained a successful company because of its great vision and ability to adapt to situational changes. As soon as social media hit the ground rolling, the company was not to be left behind. The following it receives on twitter, Facebook and Instagram as well as constant engagement with it customers is a milestone worth noting. The innovative marketing strategy has continuously allowed it to engage with its customers and to understand their needs.

With a big market share, all it had to do was innovate outside the box as the leading the organic food restaurant in the USA. As more companies like Subway and McDonalds' continue innovating and re-strategizing in market segmentation, their potential to grow remains at an all time high because they have found better ways to overcome challenges. Market segmentation is a critical element of modern marketing in the food industry. Segmentation allows marketers get a fundamental understanding of their intended audiences to have penetrative marketing strategies. The company is focused on expanding its market segments through brand awareness techniques through creative and appealing structures. The company's target segments are divided into some structured groups. For instance, the demographic segmentation considers income, gender as well as traditions and customs (Dimitri, & Oberholtzer, 2009).

The company needs to aggressively advertise in magazines, newspapers, social media, over the radio, and through television to reach as many customers as possible. By embracing the push strategy, it will combine sales promotion with aggressive mass selling to communicate the organic foods offered to large numbers of people. The company also ought to find the right celebrity to endorse its TV and Radio commercials to appeal to the youthful generation. The endorsement shall be advertisement through the company's YouTube channel to reach millions of internet users (Jurevicius, 2013). It is through the internet that everything about the company is readily available with just a click. The company website shall carry promotional advertisements; endorsing the new product the company is introducing.

The company will use its good image and public relations to market and promote itself. Among other activities over the financial year, the company shall use its customer base to work with organizations that promote organic foods and healthy lifestyles. The event shall benefit its customers, using various media platform and advertising agents to promote the healthy lifestyles, which go a long way in enabling people to develop healthy eating habits. Social media marketing will take center focus, to attract the techno-savvy generation increasingly depending on social media for information. Trade fairs and activities in the local communities shall be marketing avenues for the company to endear itself to the customers and the general society. Special interesting kids' activities with special discounts shall be offered, while the company looks to open health eating centers in conjunction with local governments and schools on the importance of conscious health practices.

The PEST analysis looks at the environmental factors, which directly affect the operations of the business. The PESTEL thus has six main factors, which will be analyzed in the essay; political, economic, sociological, technological, environmental as well as legal forces (Jurevicius, 2013). 3 Square Restaurant operates in a highly competitive environment where internal and external factors influence success. The food industry faces a serious challenge that federal agencies put into place to regulate the food industry to comply with global health demands aimed at reducing obesity and communicable diseases. While the American food industry self-regulates itself, the challenges that obesity poses make people conscious of the type of food they consume. The strength that business lobbyists in America such as McDonald's have makes it difficult to challenge the growth of fast food restaurants, which are the biggest competitions. The American society is today more conscious of the food they consume because of the health problems that obesity, diabetes, and cancer pose. The negative publicity that fast food restaurants are receiving means that 3 Square Restaurant has an opportunity to grow by taking advantage of health consciousness of consumers. Environmental regulations have in the past led to businesses embracing green revolution initiatives, which are in line with the business strategy. By offering organic foods, 3 Square Restaurant embraces green initiatives that seek to reduce damage to the environment.

Social divisions continue to widen regarding economic status across the society. In the USA, there are issues to deal with racial discrimination and differences in income thus creating major social classes that vary on the extreme ends of the social scale. They are the lower class, middle class, the most affluent, and few upper classes. The affluent few upper classes have all the luxuries they need in life. Most of the middle class earn good salaries, and they form the biggest part of the population (Lang & Heasman, 2015). The poor lower classes do not get access to their basic needs and depend on social services and food subsidies. The unequal wealth distribution means that the business cannot ignore the huge variations. The social divisions have a big impact on business because they determine the forces of demand and supply. The middle class who are a big chunk of the population are deemed as big spenders remain the biggest customer base for the business. In contrast, the lower classes provide the basic labor especially in industries and rural farms and developing a business system that makes the restaurant cater to the market segment proves a challenge. This means that many businesses do not succeed and grow consequently resulting in a redundant economy.

The growth strategy of the company revolves around diversification through organic growth, innovation, and geographical expansion. The company in the future seeks to enter into the bakery business by acquiring another bakery firm and continues to expand its business portfolio in bakery through new channels of distribution and innovative products. The company also should seek to expand its portfolio by investing in producing its raw materials to reduce the cost of production (Dimitri, & Oberholtzer, 2009). America today is home to millions of immigrant families across the country, thus expanding geographically by entering into a jointly-owned venture with PepsiCo to produce juice and other dairy products together. Additionally, venturing into infant nutrition together with Johnson Nutrition who are experts in the field will endear the business to the people. The company continues to invest intensively in production facilities, which are technologically advanced while training people with experience and skills to enhance quality.

3 Square Restaurant Company mostly deals with organic food products, which are traditionally known to have relatively inelastic demand. Since their consumption varies with price, the recent past has seen an increase in food services alternatives and their manufacturers. This means that their demand has become elastic, and the company has to fight to remain productive. Many sunk costs characterize the company since they have already been incurred and not recoverable. They include installation of new sophisticated machinery in its premises, advertising, research, and innovation. There are also fixed costs such as raw products costs, or restaurant acquisitions. The variable costs incurred include salaries and wages, power and water bills, among others. The firm operates in perfectly competitive markets in which there are easy entry and exit as long as one can afford to raise the required capital and to start the business. All the businesses of the company are of the perfect competition category (Lang & Heasman, 2015).