Market Analysis – The restaurant plan to open a Cypriot cuisine restaurant in the heart of London. As researched by marketing facilitates this culture swapping contributes towards tolerance and acceptance of lifestyle among consumers. This study is undertaken to weigh the pros and cons of opening and operating such a business.
The owners of the business are of Cypriot descent; they not only have extensive knowledge of Cypriot cuisine but are also aware of Turkish and Greek cuisines which are closely related. Furthermore, authentic ethnic Cypriot food is not only tastefully prepared, but it also has a balanced nutrient value. The owner himself is trained in the art of Cypriot cuisine and plans to hire a chef who has a clear understanding of Cypriot cuisine.
The restaurant aims to provide fresh food (including seafood) to its customer. The food will be served in traditional Cypriot style while an option to avail of a la carte service will also be provided.
As discussed earlier the restaurant will serve executives during the day and families in the evening. However, the bar and happy hour will bring in young male/female customers who intend on spending a good time. The restaurant plan to introduce Cypriot traditional dances on a weekend night. There is no other restaurant providing a dance floor in the vicinity.
However, the managers must also look at the existing competition which is fierce. There are several eateries in the area that are operating for a long time and have a loyal customer base.
To pry their loyal customers from them will not be an easy task. However, according to Travel Guide of London, food in this part of London is not only overpriced but the choice is limited to fast food mostly.
As the restaurant aims to penetrate the market from a completely different angle (ethnic food) the restaurant has the advantage of being a novelty in the area. The restaurant plan to charge a competitive price i.e. price of a regular meal in Olive Paradise Traditional Homemade Style Restaurant (OPTHSR) will be equivalent to an average price of a meal in any other establishment.
The reason that the restaurant chose to do this is neither skimming nor penetrating will work with our target market. Skimming is unsuitable as the competition is high and customers will be reluctant to shift. Penetrating is unsuitable as the lower price is sometimes associated with lower quality and our target customers do not compromise on quality.