4) Your group is supposed to prepare a power point presentation of 5-10 minutes.

Question

4) Your group is supposed to prepare a power point presentation of 5-10 minutes. Every group will have to present at the end of the in-class session 3. Please bring your power point slides on a memory chip or be ready to download it on the computer in class. You can determine if every member of the group is actively involved in the presentation, or just a subset of group members, or just one member will present. Here is the task: You are supposed to evaluate a market entry strategy in one of the following three markets (consider only one market; it is your choice which market, which location etc.): food services (examples are restaurants, fast food stores, etc.) transport services (examples are freight, shipping, taxis, etc.) -brewery It is up to you what aspects you consider for your evaluation. Possible aspects, however, could be: market size, market demand, competitors, pricing strategies, etc. After every presentation, we have a short discussion where classmates can ask questions

Explanation / Answer

Well the presentation could have following vital point that must be considered while evaluating an entry strategy for a food services provider.

Slide 1 (Two minutes): The focus is on exploring opportunities available in food services market and also potential threats.

A. Opportunities can be assessed in terms of:

1. Current food services market size in terms of value.

2. Annual growth rate.

3. Market share of top three companies in the region.

4. Food categories that are growing faster in terms of market value.

5. Existing support system in the market for food services in terms of investors, suppliers, equipments etc.

B. Points to be considered for assessing threats:

Slide 2, 3 and 4 or more (five Minutes): There are various frameworks are available for evaluating the market entry strategy, we will consider following points to develop the strategy:

The firms must set objectives that are relevant and achievable with time frame. Measurement methods in terms of footfall and order value must be developed and monitored. It is pertinent here to define the target market here.

Information regarding popular menus, price points, variants, peak demand time must be gathered. Operations must be accordingly designed to service maximum customers with satisfaction.

It is important to understand the nature and extent of competition available in the targeted market. Various tools are available to analyse competition but Porte’s Five forces model is most commonly used. Under this framework not only existing competition is assessed but potential competition from new entrants, from substitutes like dessert points, food trucks etc. as well as any possible competition from buyers and suppliers is   also analysed. Underestimating competition is biggest mistake that new entrants do which is biggest reason of failure of new ventures. The food service provider must design the products in menu and their pricing in light of existing and potential competition.

It is important to plan and decide upon mode that will best suit to enter the food market. One could enter through fine dine restaurant mode or as fast food joint or any other suitable mode. Nature of service, average waiting time, fresh or frozen are certain important considerations from point of operations. Suppliers must be identified and terms of supplies must be agreed upon.

It is required to workout detail financial plan for the new entity. The methods of financing the short and long term capital requirements must be defined and deliberated. Potential expenditures and their heads must be laid down. This will also provide inputs for financial control mechanism.

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