The Supply Structure and Drivers of the Energy Drinks In the Market.
We Write Essays for Students
Tell us about your assignment and we will find the best writer for your paper
Get Help Now!Soft Restaurant is a new start-up business that is based in the energy drinks industry and the management aims to open up a restaurant in Dubai. The owners of the restaurant would be a foreign investor from United States of America and the idea of opening up Soft Restaurant is Dubai is because of the growing tourism in the region (Armstrong, and Kotler, 2005). Dubai is a place where thousands of tourists travel from all over the world to enjoy their vacations and even those who visit Dubai for business trips do tend to enjoy the beauty of the region. Since it is a very developed area, much work and awareness about the products will not be a big problem for the management. However, conducting market research is extremely essential to know the supply structure of some of the energy drinks such as the Red-Bull, Spike Shooter and the Monster and to ensure that the business does well.
Soft Restaurant will be opened in a famous mall in Dubai where the highest attraction of the tourists can be seen so that more and more people come to know about the existence of Soft Restaurant. However, since it is being opened in a region where people come from various communities and backgrounds, it has to be ensured that the Red-Bull, Spike Shooter and the Monster that is being served are with accordance to the beliefs of the target market (Barker, 2008). For instance, for the Muslims the energy drinks served should be Read-Bull while for the Hindus the menu should be such that energy drinks does not contain any kind of alcohol, such as the Lucozade. Similarly, people from many other regions also visit Dubai and for them the Red-Bull, Spike Shooter and the Monster must be their best drinks.
Soft Restaurant offers its customers all the energy drinks items such as Red-Bull, Spike Shooter and the Monster. They also offer various energy drinks for the customers as well as Kiddy drinks for the kids and small children belonging to the age group of 5-12 years. Energy drinks are the specialty of Soft Restaurant and all kinds of drinks in various flavors are available to cater to the market. The competitive edge of Soft Restaurant is that it also offers Spike Shooter for those people who cannot take a heavy intake of the Red-Bull (Dunbar, and McDonald, 2004). Therefore, for every age group and the type of customers, the energy drinks are customized to suit their health providing excellent tastes.
Since Soft Restaurant offers all kinds of energy drinks in various flavors and for all the age-groups, all people can enjoy the energy drinks at Soft Restaurant. The restaurant therefore caters all kinds of age groups and customers belonging to middle- middle class, upper middle class and the upper class. People from different demographics, geographic locations, and people having different psychographic characteristics, buying patterns and purchase history visit Dubai so Soft Restaurant aims to cater to the needs and the preferences of all these people(Ghillyer, 2009). The people who visit Dubai for tourism are those who can easily afford meals at energy drinks restaurant and so they are the primary target market of Soft Restaurant. It is extremely essential for a business to define the customer profile because of the basis of the customer profile; the other plans can be made.
When conducting market research, both primary and secondary sources play a major role in determining the supply structure. Secondary sources are used first to study the market conditions and to overview what the competitors are doing in the market (Gravett, 2003). The major competitors of Soft Restaurant are McDonald’s, KFC and Burger King and all three are well settled and well known to the customers. Since these are in the market since long, they have already established goodwill and many people are crazy about these brands. This is the reason why it can be a bit difficult for Soft Restaurant to set itself in the market. However, learning about these competitors, their strategies and their moves would greatly assist the management in strategy formulation. Based on the previous results and the success of these energy drinks restaurants, Soft Restaurant can make plan and can operate the business. Secondary information is therefore easily available to the Soft Restaurant on the Internet, government records and the company records that can be obtained from the shareholders. Soft Restaurant should closely study the success factors and the failures of these energy drinks restaurants so that they themselves can refrain from doing any kind of mistakes.
Once secondary research has been done, primary research has to be conducted to specifically know about the product. Primary research can be conducted in the form of written questionnaires, forms, determining the market response, sampling and taking customer opinions. All these help in determining the customer response that Soft Restaurant would get after its opens. However, research is not always correct because previous findings have told that even if the research says that the products would be accepted by the people and would attain success, it can still be a failure and vice versa. Therefore, it is not wise to fully rely on the research that has be conducted and even after the restaurant opens, the management should take customer feedback to ensure that their needs and preferences are being met well. Market research further answers many other questions that help in deciding whether to start the products or not. The three main questions that can be answered by market research are mentioned below.
Supply Structure
For products to come into the market, it is important that there should be a target market that is willing to purchase that product. For this, the management should gather statistics to know about the target market of its competitors and through primary research they can know about the number of people who are willing to buy their product. There are always some people in the market who are loyal to the brands they are using and so these people would not be willing to switch from McDonald’s, Burger King or KFC to Soft Restaurant. However, knowing this is not the end for Soft Restaurant because Soft Restaurant should make its efforts to pull the market that is currently under its competitors. There are also some customers who are willing to try new products while some are those who keep on switching brands. For Soft Restaurant to capture the market the management will have to work very hard to pull the market from the other competitors to itself and for this, they should highlight its competitive edge. Since the population keeps on growing so do tourism and since everybody likes to have energy drinks, Soft Restaurant will have a sufficient market but initially hard work will have to be done to make the customers’ base strong.
There are various kinds of demands that exist in the market. Some kinds of demands are such that arise automatically, some have a mild demand while in some cases, the demand have to be created. Since there are already competitors in the market who are fulfilling the market demand, Soft Restaurant itself has to create demand for its products. Since Soft Restaurant has its own competitive edge, besides serving the entire market belonging to the middle-middle, upper middle and the upper class, it also caters to the people from this group who is diet conscious and the ones who look for energy drinks. Form the entire market; although there are small percentages of people who like to have energy drinks, there are many others who create sufficient demand for the products of Soft Restaurant.
The primary purpose of any business to operate is to make money. Initially, the profits are low since the company has to cover its research and development costs but in the later years, the business starts to gain profits. The prices that Soft Restaurant will charge its customers would be in accordance to the value meals that they will offer. The prices of the energy drinks would be charged more or less same for the normal products but prices would be slightly higher than the competitors for the diet energy drinks and for the special flavors they will offer. The competitive edge of Soft Restaurant is the flavors they will offer and the diet energy drinks from which most of the revenue will be generated.
In order to capture the market, it is essential for the management to inform the customers about the benefits of the products and services they will get from consumption. The competitive edges of Soft Restaurant are mainly the different flavors of energy drinks and the benefits the people will get from these are apparent. Firstly, they will enjoy various flavors that other energy drinks restaurants do not offer and the people who are diet conscious can enjoy their drinks easily. Other than this, Soft Restaurant also has many other special offerings that are currently not being offered by its competitors.
Soft Restaurant has its restaurant in Dubai where people can come and enjoy the delicious energy drinks and it also sells its products via the Internet. Soft Restaurant has their website that functions all the time and is updated frequently to ensure that the customers get the best. The website is frequently updated with the meal deals that are being offered at Soft Restaurant and the customers can easily order using the Internet. Soft Restaurant delivers within Dubai and no delivery charges are charged to the customers. The customers can pay through their credit cards while they can also avail the option of paying to the delivery boy after receiving their order at their door step
Moreover, for packaging Soft Restaurant uses products that are environment friendly and they follow all the ethics a business should follow. The waste is also recycled and then again used and this saved both cost as well as the scarce resources. Soft Restaurant trained and professional employees who treat the customers in the best way possible and are always available for the assistance of the customers. They also ensure that speedy delivery is made to the customers who place their orders on the Internet and for they promise to deliver the energy drinks within 30 minutes while for those who eat at the restaurant, the people are served within five minutes after they order (Hanekamp, 2007). One specialty at Soft Restaurant is also their salad bar where various kinds of salad are available and the customers can themselves prepare their salad with their own preferences using whatever things they want to include in their salad and their favorite sauce from the ones that are available at the salad bar. The customers who go to the restaurant and have their drinks can also have avail the facility of getting the free services of a diet consultant who gives free advice related to the diet and the common health and diet related issues to the people who are interested in availing this facility.
Conclusion
Soft Restaurant offers a variety of benefits to the customers and all these can serve as a major pulling power and can attract customers for the energy drinks restaurant and this would greatly help Soft Restaurant in making its customer base stronger in the market.
Bibliography
Armstrong, G. & Kotler, P. (2005). Principles of Marketing. 11th Ed. Prentice Hall.
Barker, C. (2008). Cultural Studies: Theory and Practice. 3rd Ed. Sage Publications Ltd. Dunbar, I. & McDonald, M. (2004). Market Segmentation: How to do it, how to profit from it.Butterworth-Heinemann.
Ghillyer, A. (2009). Business Ethics: A Real World Approach. McGraw-Hill.
Gravett, L. (2003). HRM Ethics: Perspectives for a New Millennium. 1st Ed. Atomic Dog Publishing.
Hanekamp, G. (2007). Business ethics of innovation. 1st Ed. Springer.
PLACE THIS ORDER OR A SIMILAR ORDER WITH GRADE VALLEY TODAY AND GET AN AMAZING DISCOUNT
The post The Supply Structure and Drivers of the Energy Drinks appeared first on Brook Writers.
Welcome to originalessaywriters.com, our friendly and experienced essay writers are available 24/7 to complete all your assignments. We offer high-quality academic essays written from scratch to guarantee top grades to all students. All our papers are 100% plagiarism-free and come with a plagiarism report, upon request
Tell Us “Write My Essay for Me” and Relax! You will get an original essay well before your submission deadline.
