Local competition will have effects on my business. I cannot price my food at a price that is too high because the customers would begin to use the service provided by the competitors. As my business is more a less selling the same goods as the competition I would consider the price to be the same this is due to the fact that consumers look for quality. So I will be using competitive pricing method. My main objective is to make a profit and that depends on the level of price I charge and the competition I will face.
I have come to use competitive pricing as there is a large degree of competition selling the same product and competitive pricing I feel is more appropriate. I feel there is a wide choice consumers as to what take-away to use and since the prices are competitive quality will play a major role. Customers will only go for the food of the highest quality so I need to concentrate on this aspect. By producing a questionnaire I found out the price people were willing to pay for a bag of fish and chip small portion.
The results that I obtained were more a less expected as people consider the price of chips to be a 1 and a typical bag of fish and chips to be 3. 90. I have produced a menu with all the prices the location and the lunch time special deals. I have come to price the goods at the prices I have chosen as there is (USP) unique selling price as everyone is selling the same goods under different shop names but I am providing free delivery for orders over 15, up to 3 miles from my location. There is obvious demand for my service and the market is very competitive also.
My producing a questionnaire I found out that the demand for my service exists as people live a hectic lives. I have come to price my goods as I have as I observed my competitors and looked at what prices they were charging and also my questionnaire told me that people would not pay more than a pound for a small bag of chips. My aim is to sell the most tasting food at a competitive price. I have come to price my goods at the prices I have by doing marker research and also there is demand for my product as the market in London Borough of Harrow is growing.
I have produced a menu that states all the prices I will charge and I have also to increase sales have introduced lunch time specials deals this will enable me to sell more as I am offering a discount at the busiest hour. I am using this method as it is offering customers cheaper food to increase sales but this is also to increase promotion by special deals. By having the specials deals I am competing against the bigger fish and chip shops and this will also spread the name of my business as word of mouth.
The special offers will help me to increase sales, the specials offers are listed in the menu and the prices are more a less as the same as the competitors. I will use various methods to attract the consumers from the competitors. I will use product differentiation, this is a method that allows me to make the product different from the competitors. In order apply this I will use attractive advertising, colour full leafleting and also window displays of the food that will be prepared at the premises.
This will catch the consumers attention and will attract customers. Since there is such fierce competition the supplier selling poorer quality food would lose reputation among the consumers. This process will result in the consumers looking for alternatives. To ensure this negativity does not occur at Usman's Fish and Chip shop I will use quality assurance methods. The location of the business is vital to its survival. Usman's Fish and Chip shop will be located at Queensbury Parade. This location gives a competitive edge due to a station near by.
This will increase sales, this is because there will be potential for passing trade and people will be more able to buy food due to convenience. Product presentation is vital for increasing sales. I will put great emphasis on the layout of the food. I will make sure that the food looks presentable and at the point of sale is offered to the customer using the standards principals. By using this approach I feel customer loyalty will be accomplished and this in return will enhance the image of the shop for being hygienic. Product Life Cycle Development Launch Growth Maturity Decline
Above I have produced a product life cycle diagram. The diagram shows the stage of my product, at this very point my product is at the stage of growth as my business is just opened. I feel soon it will be at the stage of maturity because a fish and chip shop is not a new idea. I have come to the above conclusions by observing the local restaurants, take-aways and also using the research I obtained. It has occurred to me that product quality, quality of service, appearance and the image are vital to attracting sales. I believe by introducing the above methods I will be more successful in my business.
Place/Distribution Strategy My shop location is at Queensbury Parade, that has its own tube station that would increase sales a lot due to passing trade. My business will be on the main road that has a station and various buses passing through the area that means there is a good transportation system and easy access for my customers. There is also a video rental shop next to my location and that will benefit me as people who hire videos normally buy hot food also. I have come to chose this location due to many valuable factors.
There are multiple factories, warehouses, a school and also a station and good transport. The students would be my main source of income I feel as they are able to leave the school premises at lunch times so they will most probably purchase my food. The warehouses and factories will also boost sales as those workers have less time available. My service is quick and convenient more suited to their needs. I think my business will be successful as of the easy access and the location. The process of my product is very simple potatoes being cut and than fries in the deep fryer and wrapped in bags.
The cook who will be my assistant and me will exercise strict standards of sanitation, quality production and packaging. I have after careful consideration decided to deliver my products of value of 15 or over to customer in the radius of 3 miles to do this I will have to purchase a vehicle preferably a second hand van. By doing so people who cannot reach my facilities can still purchase food and I will benefit from increased sales. I have come to this conclusion to deliver food as most of my competitors are doing the same and you can also gain customer loyalty.