Market Feasibility

Customer Profile

The target market for the company is people looking to use online food delivery services. The growth potential for the company is supported by the fact that the number of professionals who are too busy to cook or go to a restaurant. For example, many people are looking for food to be delivered to their offices. It appeals to many professionals who have busy schedules.

Additionally, many households are using delivery services as it enables them to maintain healthy lifestyles. For many clients, they would prefer convenient meals delivered at their doorstep. After a long period of commitment at the workplace, many people would prefer to be relaxed at home without toiling to cook, and this offers an opportunity for the company. This is exactly what we are offering clients. By targeting such customers, it is needful also to provide them with a range of products or services to accommodate all their interests.

Analyzing the Competition

The biggest competition for the firm is from large multinationals like Door Dash and Uber Eats. These companies have thousands of riders working for them. Further, they collaborate with some of the biggest restaurant chains in the region, with most being exclusively available on their apps. The companies also work with thousands of individual restaurants. These aspects give these companies a competitive advantage. Nevertheless, our company can overcome this threat since it offers a highly customized service.

Estimating Market Size and Sales Forecast

As revealed in the first business report, the hiring rate of Canada has been at an all-time high. Moreover, each year the number of workings in a household is increasing, which will result in people spending less time in their own homes. Also, there is an increasing number of customers who prefer online shopping as they prefer the privacy and convenience it provides.

The company is looking to gain 5,000 return customers in its first three months of operation. If each customer uses the service at least twice a month at a fee of $10 per delivery, then the company will generate $300,000 in its first three months of operation.

Rating and Selecting a Location

            The company is looking to venture into cities across Canada. These cities are suitable since they have millions of residents who are too busy to make their meals. In particular, the company is looking to start operations in Toronto. An increase in the number of business activities in the region also creates a perfect opportunity for exponential of the firm.  Possibly, it can be confirmed that the improved infrastructure around the region makes it easy for people to use delivery services. The fact that the company is located in a densely populated area gives it a large market base. Many businesses in Toronto are seeking such services to maintain the productivity of their workforces. Therefore, targeting corporate clients can increase the revenue base of the company. Clearly, this is a confirmation that increased business activities are an opportunity that the management must consider when expanding the business.

Preliminary Marketing Plan

            The company’s marketing strategy will be focused on pricing. Pricing is a key determining factor as to whether the business will attract new customers or not (Sainaghi 2016).

This implies that both high-end and low-end customers will be factored in the company’s plan, with clients and groups only expected to demonstrate a high level of flexibility based on their ability and need. Further, customers always prefer reasonable prices that match their budgets. It is from this perspective that flexibility in prices for products and services remains crucial for the business.

References

Sainaghi, R. (2016.) Determinants of Hotel Performance: Research Styles. Tourism Travel and Research Association: Advancing Tourism Research Globally. 19.