2.8: Classroom Preparation Assignments

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Customer and Competitive Analysis Exercise $\PageIndex{1}$

Introductory paragraph
Complete demographic information on the population in the area.
Based on this information, an estimate of overall market demand.
Direct and indirect competitor information: prices, hours of operation, size, menu type, other characteristics of the competitor.
The potential for new entrants in the area.

Example

City and Customer Analysis
Location: Seattle, WA

Introduction- Why this location?

The city of Seattle aspires me to grow and better myself as a chef along with starting my own business up to my moral standards. This city is the ideal location for me to find inspiration for my menu choices because of my love for seafood and farmer’s markets. Here is a fun fact from multiple online sources stating, “Seattle is ranked the most literate city in the country, with the highest percentage of residents with a college degree or higher.” For the sake of not giving my hopes up and to actually succeed in Seattle, extensive research on being aware of the demographics and their wants is an important step. I will point out facts on my future potential customers.

Demographics

The citizens of Seattle will be my paychecks and future income, so it is necessary to know facts on the people. Many questions should be answered before going into further decisions on the kind of business to attain, such as: population growth and how it compares to employment, average income and how many stable home owners there are, and the age groups and how to market towards them? Below are listed facts and visuals that I have gathered from www.seattle.gov online:

2010 Census estimates for Seattle:

2010 population count: 608,660
Population in households: 583,735
Number of households: 283,510
Average household size: 2.06
Average family size: 2.87
Population in group quarters: 24,925

Economic Characteristics:

Population in labor force: 383,688
Median household income:
$63,470 Per capita income: $42,369

Housing Characteristics:

Owner-occupied homes: 135,156
Median value of homes: $441,000

Jobs: “A positive relationship between government and businesses is important to the well-being of Seattle. By working with financial institutions and the business community, we are able to encourage small business start-ups and their growth. Our Plan recognizes that small businesses such as artists and restaurants make a significant contribution to the culture and character of the city and seeks to ensure that their businesses have the opportunity to thrive.”— 2035.seattle.gov

Age: In 2010, nearly three-quarters of Seattle residents were adults between 18 and 64 years of age, with an especially high concentration of young adults (age 25 to 34). The highest rates of population growth between 2000 and 2010 were for children under five and adults age 55 to 64.

From my extensive research on the people of Seattle, I’ve grown more confident that my kind of business can succeed in this city’s community. The data given clearly shows that Seattle is still an upcoming city with educated, thriving, and economically balanced demographics. All of this gained knowledge will allow me to dig deeper into the psychographics that explain the attitudes and interests of Seattle’s people. The next step will give my business focus points of hard decisions that shall be made to satisfy the customers.

Psychographics

The general lifestyle of the people in Seattle was what drawn me to choose this city. My older brother moved to Seattle after he graduated with a Ph.D. from med-school and now lives with his boyfriend and his dog in a studio apartment. As my brother and his boyfriend being my personal source to Seattle, I was able to know what specific details I needed to look for in my research. The red rectangle area on the map is the detailed origin of researched psychographics

Examples:

Young Digerati: Wealthy Middle Age Family Mix

Tech-savvy and live in fashionable neighborhoods on the urban fringe. Affluent and highly educated, Young Digerati communities are typically filled with trendy apartments and condos, fitness clubs and clothing boutiques, casual restaurants and all types of bars, from juice to coffee to microbrew. Many have chosen to start families while remaining in an urban environment

Money & Brains: Upscale Older Mostly w/o Kids

The residents of Money & Brains seem to have it all - high incomes, advanced degrees, and sophisticated tastes to match their credentials. Many of these city dwellers are married couples with few children who live in fashionable homes on small, manicured lots with expensive cars in the driveway.

Urban Elders: Midscale Middle Age Mostly w/o Kids

Urban Elders, a segment located in the downtown neighborhoods of such metros as New York, Chicago, Las Vegas, and Miami, are more likely to be renters than other households in their age cohort. They enjoy the cultural options available to them in their communities, frequently attending musical performances and other live events.

The Cosmopolitans: Midscale Middle Age Mostly w/o Kids

Educated and upscale, The Cosmopolitans are urbane couples in America's fast-growing cities. Concentrated in major metro areas, these households feature older homeowners without children. A vibrant social scene surrounds their older homes and apartments, and residents love the nightlife and enjoy leisure-intensive lifestyles.

Connected Bohemians: Midscale Younger Mostly w/o Kids

A collection of mobile urbanites, ‘Connected Bohemians’ represent the nation's most liberal lifestyles. Its residents are a progressive mix of tech-savvy, young singles, couples, and families ranging from students to professionals. In their funky row houses and apartments, Bohemian Mixers are the early adopters who are quick to check out the latest movie, nightclub, laptop, and microbrew.

TOURISM: (Washington State’s 4th-largest industry)

Year	Total Overnight Seattle/King Co. Visitors	Total Seattle/King Co. Visitor Expenditures
2014	19.2 Million
2013	18.69 Million	$6.0 Billion
2012	18 Million	$5.6 Billion

Summary - What is the "description" of the potential market?

The conducted research formed my feasibility study to conclude that I am more confident as ever in my future and career as a chef. Throughout the demographic surveys collected, I admit that I am astonished by how content I am with all the facts that I have discovered. Along with my gain of personal knowledge about the city, Seattle is looking like my next step. This data collection is only the first step to a long process of realization of what business will meet my desires as well as those of the community.

In conclusion, my potential market is best described as profitable in my eyes because of their choices in life to keep on improving and the constant look for someone new to enjoy. Since I also share similar lifestyles as those in Seattle, I keep finding more answers on why the city would be great for my own chance to build happiness. It is important to me as a person and a chef to be inspired by local resources for the best chance at success. The information I have gathered on how Seattle grows together in success as a community gives me assurance that this city is the right fit to bring my culinary ambitions and ideas into action.

Works Cited – List all references – this bolsters your work by indicating you did your research.

Discussion Questions $\PageIndex{2}$

What are demographics?
What is a demographic profile?
Where can you find demographic data?
What are psychographic and why are they important to a foodservice operation? How do they differ from demographics?
What is the importance in knowing your customer’s ‘lifestyle’?
What are the ‘internal influences’ affecting consumer decisions?
What is the importance of a customer’s ‘post-purchase’ evaluation to a foodservice operation?
What are the major elements to consider when conducting a customer study?
When considering generational differences, which element is the most important – demographic or psychographic information?