Project Summary
The society is increasingly becoming critical of foods that are processed using animals products. Some people are critical of animal products because of some of the health problems that are associated with them. Others have been avoiding these foods because they believe it is unfair to kill animals. Upon a careful market study in Riyadh, Saudi Arabia, it was clear that there was no vegan restaurant that could meet the needs of those practicing veganism. It was out of this research that we realized that there was a market gap that needed to be filled with appropriate product as soon as possible. This restaurant will be offering a menu that is free from any animal products. The focus will be to offer healthy foods to clients who will be patronizing the facility.
Although the market competition is very still, this firm has its main strength on the fact that it is the first and of its only kind in this city. The firm has an advantage over some of the competitors because the owner has a farm near Riyadh City where most of the vegetables and other green consumables will be obtained. The location of this facility is also great. The restaurant is located at a junction, near the city center, giving it a strategic location that can easily be frequented by customers. It has been given the name Akdar which means green in Arabic. Its promotional strategies include the management plans to use social media to reach out to the customer. The firm will use Facebook, Tweeter, and YouTube to reach out to the customers. The marketing team will also ensure that there is a positive customer relationship in the market in order to create a pool of loyal customers.
Introduction
In Riyadh City, the restaurant business is booming, and there are many players keen to tap into this massive. This industry is very competitive, with some of the competitors having stayed in the market for over five decades. There are some international firms that have also found their way into the Riyadh market. This means that Akdar restaurant is getting into a well-established industry that has very strong competitors. However, this is a creative project that plans to create a niche of its own that will avoid the competition in the market. After a detailed market research conducted by the management of this firm, it was realized that the market lacks a vegan-only restaurant.
The research went ahead to analyze the nature of the market, and it was confirmed that the majority of the population are Muslims. Although some of them eat meat, there has been a growing percentage of vegans in this market. Veganism has been getting more popular with time following revelations from medical doctors that most of the animal processed products are not healthy. There has also been a section of the society who do not approve of killing animals for the sake of food. For this reason, they prefer products that do not have animal products.
A spot-check in the market proved that none of the restaurants were offering products to meet this new market niche. For instance, the restaurants that offer vegetables use fat from animals to prepare them. This contravenes the philosophy of veganism. This firm is therefore, meant to offer to the market something unique. It would be the first vegan restaurant in Riyadh, Saudi Arabia. The market niche that the firm targets is big, and the management hopes that it will grow even further following the revelation of the negative effects of some of the animal products. The management hopes to achieve success in market growth before other firms can join it in this new market niche. It would be important to understand some of the specific goals of this firm in this new market.
Objectives
According to Lang (71), a firm that is entering a new market should have clear objectives of what it seeks to achieve within a specific time. Akdar Restaurant is entering into a new market, and targeting a niche that has remained untapped for years within this city. The following are some of the objectives that this firm seeks to achieve.
- To offer healthy foods to the vegans within the City of Riyadh at an affordable cost
- To achieve sustainability in the market by ensuring that the operational activities of this firm remains profitable.
- To achieve market growth in this special niche at a rate that is fast enough to ensure that it has a large market share when other firms decide to join this new market share.
- To ensure that it has a team of dedicated employees who are able to understand the changing customers’ needs in the market.
- To be able to integrate with the local community in a positive manner as a way of playing part in its normal development.
Some of the above objectives will be achieved over the years, as the firm continue to grow in the local market. However, some of them must be achieved as soon as the firm starts operations, such as the need to provide healthy foods to the clients.
Discussion
According to Goldstein (56), food industry is one of the most developed industries in the world. This industry has been expanding rapidly as more people get into the corporate world. Most people realize that they do not have time to prepare their own meals, and this makes them prefer eating at restaurants or other fast food stores. Akdar is getting into an industry that has strong competitors. Although this firm is to be established as a pure vegan restaurant, this does not mean that other restaurants currently in the market do not offer products that are meant for vegan.
They do, but the only difference is that they do not consider it as their main menu. For this reason, the market proposition of this firm is different from others in the market. This means the target market for this firm is the vegans who prefer eating in places they are assured that there are no chances that they can be served foods that have animal products, even if it is done by mistake. This new restaurant will offer them an exclusively vegan facility that is free of any animal products.
Retail products
As Tielmann (67) notes, the ability of a food outlet to attract a large market share depends on its offer quality products that will be seen as superior to those of existing competitor. The products must offer unique quality that will attract consumers. As mentioned above, Akdar is a vegan restaurant. Food products that will be offered to the customers will be free from any animal product. The menu will reflect healthy foods taken from plants products. For breakfast, the restaurant will offer beverages that do not have milk or any other animal product. The snacks will also be products that are not processed out of animal products.
Some of the main snacks that will be offered at this facility include bacon flavor bits, Oreos biscuits, Pillsbury crescent rolls, Ritz crackers, Kraft cream, spicy sweet chili, unfrosted pop-tarts, and grazed-apple pie, Fritos, among other non-animal products. For main meals, the firm will offer a variety of vegetables, rice, bread, and other products that are no processed using animal products. All the ingredients that will be used in preparation of these meals will also come from animals.
Rangan (78) observers that one of the main problems that food outlets within Riyadh City face is the limited supply of fresh-farm produce. This means that Akdar may find a problem getting most of its products. However, the management of this firm was keen on finding the solution to this problem because it was already predicted as a possible challenge in operating a vegan restaurant. The owner of this firm has a family farm outside of Riyadh, where it grows almost all the products that would be needed by this restaurant once it starts operations.
This will not only cut costs of getting these products, but will also ensure that their supply remains consistent in order to avoid scenarios where operations are stalled because some products are not available. The products will reflect the market niche that this firm has selected. Upon a careful market research, it was determined that the traditional Saudi foods are also popular in this market. The management of this new restaurant will therefore, consider including those traditional foods as long as they do not contravene the vegan policy that Akdar plans to observe very strictly in its operations.
Retail marketing niche
Marketing is becoming one of the most important strategic functions of the top management of firms around the world. According to Goldstein (82), firms are under great pressure to design unique marketing approaches that can help them appear unique in the market. The competition is so stiff that any misjudgment that a firm makes may have a potential of driving it out of the market. For this reason, there is need to have calculated moves that would enable a firm avoid making mistakes in the market. To do this, a firm needs to conduct a thorough market research in order to understand what the market needs.
The management of this firm has been able to determine that there is no vegan restaurant in Riyadh. This is a market gap that this firm plans to fill with quality non-animal products. This will offer it a special niche that has not been tapped in the market for years. The management of Akdar has been able to confirm that this market niche is constantly growing within the City of Riyadh, but the current restaurants have been underserving it. This market niche in the City of Riyadh has a potential to support operations of Akdar and help it achieve the desired growth within the planned duration.
Retail strengths weakness
Akdar Restaurant is a great project that has the potential of generating massive revenues if it is implemented according to the plans. However, Tielmann (98) says that new firms should try to understand some of the possible strengths and weaknesses that may affect its operations in the market. One of the main strengths of Akdar is that it is the only vegan restaurant in Riyadh. The market share for healthy foods has been expanding rapidly in Riyadh, and being the only vegan restaurant, Akdar can easily claim that it is the only store that offers healthy foods. This means that there is a huge potential in the market for the products it is taking into the market. The name Akdar also gives this firm an edge in the market. The need to protect the environment has been on the rise in this country, and any firm seen as supporting green movement is always given a positive response in the market.
It is a fact that the choice of the name was to reflect the nature of products offered at this firm. However, it goes beyond this, and paints a picture that this firm is also keen on protecting the environment. This gives it an edge over some of its market competitor. However, it is important to note that this firm has some weaknesses that it will need to address. This is a new firm that is just entering the market. It lacks experience that its competitors have gained over several years of operating in this industry locally. The level of competition in the market also shows that it may not take long before other firms joins it in this niche, and this will increase the level of direct competitor.
Physical location and marketing strategy
The physical location of a restaurant is one of the key success factors that can make a firm overcome some of the initial challenges. Akdar restaurant is located in a strategic place that allows it to tap on the customers easily. The firm is located in Olaya, a trendy area with lots of restaurants. The area has been known to have classy hotels, and the city residents always consider it a food location. This means that the firm will have a ready market for its products. Its market niche will help distinguish it from other market competitors. The management of Akdar plans to have several promotional campaigns to increase awareness of the firm. The management plans to use social media in its promotional strategies. The firm will have a Facebook page and a Tweeter handle to enhance communication with its customers. It will also use YouTube to promote communication with its customers.
Marketing mix
Rangan (90) says that it is important to understand the marketing mix elements within a firm and understand their relevance. The products that will be offered in this place are healthy foods that are processed from non-animal products. The place element of the marketing mix has been discussed as a strategic location that would enable the firm reach for a wider market. The pricing will be fair in order to ensure that a higher number of people are able to visit the facility. This will help quicken its growth rate. Promotional strategies has been discussed in the sections above, and it is clear that the firm will focus on social media marketing.
Costumer Relations, Feedback and sales improvement
According to Lang (112), it is always important to maintain a positive customer relations in the market for a firm to be successful. Customer relations will be managed by the marketing department of this firm. The unit will be responsible for managing customer feedback in order to ensure that operations of the firm are within the expectations of the market. Social media, especially Facebook and Tweeter will act as the main ways through which this firm will be able to get feedback from its customers. The marketing unit will try to respond to some of the messages on the social media, especially those that are meant to inquire about various issues of the firm. There will also be a customer care center where customers will be allowed to call the firm directly and make inquiries. At this desk, the marketing officials will ensure that all customer enquiries, including complains, are met as appropriate. To improve sales, customer care unit will use both the social and other promotional campaigns to reach to a larger market.
Conclusion
The analysis above shows that Akdar Restaurant is an ambitious project that seeks to start the only vegan restaurant in the City of Riyadh. Although the business for healthy foods has been booming in this city, the existing firms have not considered entering into this unique market nice. This is the main strength that this project seeks to capitalize on. The management will use social media and other promotional campaigns to reach out to the market. The great location and a strategic name will also give it a competitive advantage in the market over its competitors.
Works Cited
Goldstein, Myrna. Healthy Foods: Fact versus Fiction. Santa Barbara: Greenwood, 2010. Print.
Lang, Tim. Food Wars: The Global Battle for Mouths, Minds and Markets. London: Earthscan, 2004. Print.
Rangan, Vicky. Transforming Your Go-to-Market Strategy: The Three Disciplines of Channel Management. Boston: Harvard Business School Press, 2006. Print.
Tielmann, Viktor. Market Entry Strategies: International Marketing Management. München: GRIN Verlag GmbH, 2010. Print.