Market Analysis

Market Analysis

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Market Analysis

A qualitative and quantitative analysis and assessments of markets should be done to examine the attractiveness and demonstrate your expertise from a financial point of view. Analysis of markets helps understand its size both in terms of value and volume. Other vital things to consider include buying patterns, customers segments, competition and the barriers present in the economic environment. Assessing the strength and weaknesses is the key thing to understand the competitors in the market. Competitor analysis provides a strategic context to identify the strengths and weaknesses of the current market. Considering our case study, an analysis of Beehive Industries Co-operative market is done to examine the size of the market, potential and trends. Competitor analysis is also done to challenge its competitors in the market.

Beehive Industries Co-operative deals with software solutions by empowering the public sector to keenly manage assets and infrastructure through the use of captured data and preserving it merely. Demand in Beehive Industries Co-operative is driven by the activities of the economy and the profits of the corporate. Targeting services, creative skills and marketing ability are the essential driving points for the company to be profitable. Economies of scale in-database analytics, marketing, and automated operations in Beehive Industries Co-operative allows it to compete on the price aggressively (McCann & Yazici, 2018). To compete effectively, the company has to specialize in a particular industry, considering the geographical market and the type of service offered.

The software has evolved through years from programs set on discs to immediate access through action in the online sector. The internet and cloud technology has developed, therefore, gaining direct access to software installation. In a different business model, companies operate providing a wide range of products and services to their customers. The different array of options is provided through the internet and cloud software companies (Parnin, Helms, Atlee, Boughton, Ghattas, Glover & Stumm, 2017). Using cloud technology, different customers can pay regular subscriptions to access the internet.

Software companies are counted as the top world developers of different enterprise solution known as infrastructure as a service; therefore, Beehive Industries Co-operative has got many competitors in the industry worldwide. One of the competitors that compete with Beehive Industries Co-operative includes Oracle based in the US with its headquarters in Redwood Shores in California (Parnin et al., 2017). The company consists of four primary sources of revenue, including cloud service, cloud license, cloud license, hardware and among others. The annual software sale yearly includes 39.5 billion dollars which s higher that the income obtained from Beehive Industries Co-operative. The most significant revenue of Oracle Company comes from cloud services and License support generating the profit up to 6.662 billion dollars in the quarter of the year 2019.

Another competitor is HCL TECH Company based in India, with annual sales of 7.8 billion dollars. It deals with software services for businesses, an offering of application integration services and management of infrastructure services. Adobe (ADBE) is a company located in the US that has annual revenue of 7.7 billion dollars from its sells. Its revenue is segmented through digital experience and digital media. Adobe helps the world choosing digital storage other than paper storage of documents (Parnin et al., 2017). The competition offered by the above competitors to the Beehive Industries Co-operative helps it work to its best to provide the best software solutions.

References

McCann, D., & Yazici, E. (2018). Disrupting together the challenges (and opportunities). Retrieved from https://www.dnb.com/business-directory/company-search.html?term=market%20research&page=1

Parnin, C., Helms, E., Atlee, C., Boughton, H., Ghattas, M., Glover, A., … & Stumm, M. (2017). The top 10 adages in continuous deployment. IEEE Software, 34(3), 86-95. https: retrieved from //www.investopedia.com/articles/personal-finance/121714/worlds-top-10-software-companies.asp

Market analysis

1. talking about Background Data on Sales & Costs of Yum brand company. introduce KFC, Taco Bell and Pizza hut , For example what kind of people go to Kfc ,  how much profit that get in Taco Bell past a one year. Using date to support your foundation. Do around 3 pages. Dont mentation Any information outside of USA. The introduction only focus onUSA. introduce the Yum brands only sell fast food, however they are food is not healthy. 

2. Read the file first. I was make a company which call nutrition express is a health fast food. ,Pls follow the attractant, Pls talking about this company, example,Customer target ,what  kind of Customer they will go to nutrition express to eat. Maybe they want get healthy food.Using data to support. And Analyst the community of My company, for example how to make some  Promote which make involved with customer, around 3 pages 

2.1 Mission

Based on Yum! Brands’ mission statement “We’re building the world’s most loved, trusted, and fastest-growing restaurant brands in partnership with the best franchise operators in the business”, YUM has taken an important position in the global fast-food industry. According to Statista data, YUM’s sales in the global market reached $20.32 billion in 2018. Yum! own three global brands – KFC, Pizza Hut, and Taco Bell – which reached $4.43B, $5.53B and $10.36B sales individually in 2018. However, McDonald’s is still the industry leader with $38.52B sales in 2018. In order to compete with McDonald’s and broaden the customer base, YUM needs to focus more on market segmentation and customer demand.

            Theodore Levitt mentioned that companies should build customer-centric products in the article “Marketing Myopia” (1975). Based on data from Stat           ista, more and more young people are paying more attention to a healthy diet, especially the absorption of organic food (2018). In addition, according to the study by Snježana Gagić et al., organic food can not only bring benefits to customer but also a way for a restaurant to increase its prices (2015). Under this trend, YUM should build a new brand that targets an organic industry that can expand its product line and better compete with competitors.

The new brand, named Nutrition Express, will be built around the three elements – nutrition, health and organic. Combined Yum’s years of experience in operating and advanced cooking methods, Yum! Brands can capture the global market share quickly. YUM can push the business to zenith because the industry is still a blue ocean.

2.2 Financial and Operation Objective

2.2a Financial Objective

As mentioned earlier, although YUM’s global sales reached $20.32 billion in 2018, according to the report from Macrotreds, YUM’s annual revenue showed a downward trend in the past three years. We hope Nutrition Express can reverse the situation and bring competitive advantages to Yum.

2.2b Operation Objective

We hope that YUM’s new brand will become the leader in the global fast-food industry. The marketing plan is divided into two stages. In the first stage, 100 global direct sales stores will be built in one year to develop brand awareness of Nutrition Express. In the second stage, the franchisee will be our focus in order to expand the global market. In five years, Nutrition Express will open 5,000 stores around the world.

2.3 Target marketing & positioning

Our target group is students and business professionals whose age is between 18 and 35. Each store is between 0.5 – 1.2 Acres (management standards will operate in accordance with KFC’s model to reduce development costs). We will highlight the decoration to the deeper the brand image. Green would be our main color for our logo and decoration. When the customer enters the store, the green wall and green plants would be the first thing they notice. On the wall of both sides of the entrance door, we will emphasize the importance of an organic diet with nutrition experts’ quotes. All products and combos are made with organic foods to emphasize the “organic” elements.

We designed a new logo for Nutrition Express. Green is the main color since it usually represents healthy (Kendra, 2019). We used green leaf and two hands as a symbol of trust for the design of the middle part. The new green LOGO can also distinguish the colors of other YUM brands such as KFC (red) and PIZAA HOT (red) and TACO BELL (purple).

We also designed a print ad for Nutrition Express. We want to emphasize the properties of our products deepen our impression of our brand. We want to create the connection between Nutrition Express and Health so we can be the top of their list when they are looking for a healthy diet.

Product

            The new brand Nutrition Express mainly uses organic foods to meet the growing demand for healthy foods through scientific nutritional methods and less oily cooking methods. The products would be made with chicken, beef, fish, and vegan. 4 main combos with freshly squeezed juices and vegetable blends would be our specialties. At the same time, the customer can complete the order by APP and take out food to meet the fast lifestyle pace. The brain image of Nutrition Express will line in with Yum’s strategy.

            In addition to the materials we use, we will work with nutritionists to create a package that is scientifically proportioned. For example, our main package A consists of 350g chicken, 300g bread, 300g vegetables, and 200g fruit. According to Christian Nordqvist’s article, It is exactly how much protein and carbohydrates an adult needs to absorb in a day (2017). Moreover, we will also focus on developing healthy cooking methods. For example,  we will use steamed cooking instead of frying to reduce calories.

            Segmentation is also the focus of our strategy. We will create different menus based on three factors: countries, seasons and demography. First, we will adjust the package according to the region. For example, according to data from the US Department of Agriculture (USDA), Americans usually assimilate less potassium than they should (2016). In order to balance the diet, the fruit will be added to the products because it’s rich in potassium. Second, the Nutrition Express package will be adjusted according to seasons. For example, in winter, more hot soups will be offered to meet the demand. In reverse, more cold drinks and meals would be added to the menu during summer. Lastly, we will also design a package for some special requests. For example, we offer sugar-free and salt-free options.  Which can help people with hypertension and diabetes keep healthy. 

Place

            As a new brand, we want to expose our stores to big cities to catch people’s attention. A city with a population no less than 1 million such as New York, Los Angeles, Chicago is our first choice for the launch of Nutrition Express. The location of the restaurant will be chosen in urban areas, especially next to subway stations, shopping centers or schools with high traffic. Our target customer would-be college students and professionals. According to Stastia, the people between 16-35 have a greater need for healthy food (2018). In addition, we will provide a nutrition guide on our app along with the price and pictures of our products. Delivery will be provided if the distance is less than 3 miles.

Promotion

            We will hire well-known nutritionists like Robin Vitetta-Miller, Gillian McKeith, Ellie Krieger to jointly develop the menus. Except for their role as the nutritionists, they are also TV shows host who can promote our brand.

            Customers will be encouraged to “like” our official website and share our products on social media. For customers who do share our posts, a 10% discount coupon will be rewarded. The promotion will be our focus in the first six months of the opening of new stores. We will also introduce a membership system. Members can get coupons and join various promotions from time to time, such as free trials of new products, free products for members’ birthdays, etc.

            We also plan to invite Instagram celebrity Misty Copeland as a brand ambassador. She has more than 1.7 million fans on Instagram. And also she is the first black female dancer of the American Ballet and the spokesperson of the Under Armour. Her healthy and energetic image matches the image of Nutrition Expresses. we expect Misty can leverage her influence on social media into sales.  

            In addition to online promotion, we will also hold activities and events. Within 6 months of opening, customers will receive a 20% discount on a one-time purchase of 3 packages. Every employee who works for Nutrition Express has one chance to surprise the customer with a free meal each month. As Davies mentioned in the article “Reputation Gaps and the Performance of Service Organizations”, improving employees’ perceptions of the company’s reputation is one of the best ways to enhance future sales (2009). We hope to increase employee perception of the brand’s reputation and ultimately improve the customer’s impression of the company by giving employees more power. In terms of events, we will set the first day of every month as Nutrition Express DAY. Customers can get a special vegetable drink for free for more than $10 purchase.

Price

            According to Statista, Americans spend between $9 and $16 per meal (2018). Based on our offers with healthy and organic ingredients. We decided to price the package between $12.99 and $16.99. The price of freshly squeezed fruit and vegetable drinks is between $3.99 and $5.99. This pricing space allows us to use high-quality ingredients and ensure that the nutrition of the package meets people’s needs. At the same time, we will have a special breakfast and special lunch prices of $8.99 and $11.99, respectively.

4. Financial Forecast

4.1 Breakeven point

Need more data analysis to calculate the break-even point. Our plan is the break-even the first 100 stores within one year (refer to KFC operations).

4.2 Cost Forecast

            The size of the new restaurant will be similar to existing KFC standards. The cost per KFC store is between $695,000 and $1.2 million including construction costs and equipment costs (Hayley Peterson. 2015). In the first phase, we plan to open 100 direct chain stores which is 50% of YUM Group’s 2018 profits (YUM 2018 Form 10-K) in major cities around the world with 100 million dollars. We set our marketing budget to 100 million dollars which is 30% of YUM Group’s 2018 total advertising promotion fee (YUM 2018 Form 10-K). Additional 50 million dollars will be used to establish a special nutritional food research institute to develop new products.

4.3 Sales Forecast

            We plan to use the first phase to build brand reputation and achieve breakeven. In the second phase, we hope franchised stores can increase the sales to $15B in ten years. Through Nutrition Express, YUM will become a global fast-food brand that can compete with McDonald’s.