When you start your business, you have to penetrate the market and compete with established players. Even after you're established you may need new strategies to maintain your market share. Success stories from the business world show how to do it. Play With Pricing Underselling the competition is a classic method of penetrating the market.
A trade area analysis is an important part of business planning. The trade area analysis shows where your customers live in relation to your existing or potential business site s.
The trade area analysis compares the number of customers by distance from a business site to the number of households in the study area.
This yields the market penetration rate number of customer households to total households or open market rate enabling you to pinpoint a radius drive time that defines your trade area. This information is vital to: Knowledgeably invest in marketing and sales campaigns such as direct mail or cable TV advertising Evaluating new sites to relocate your existing business to be closer to your current customers or expanding into a new area where prospective customers live Selling or purchasing a franchise Negotiating a lease Profiling your customers using the Tapestry segmentation system and then identifying where prospective customers live who have spending habits like your best customers Define Your Trade Area To define the boundaries of your trade area, you need: A business site or a small sample of potential business sites.
Electronic customer address information such as point of sale transactions, credit card records, check customers, exit interviews, or warranty cards.
This information is used to produce a trade area analysis report with maps. The customer penetration rate is the number of customers divided by the number of households.
The table below shows that 25 percent of customers are within one mile of the site at a penetration rate of The action plan for the ABC Company is to concentrate building penetration in the second tier from 6. Illustrative Table The following illustrative table shows the customer to distance distribution even more clearly.
See a larger version of the table. See a larger version of the chart.
Illustrative Map From this data, you can identify and map your ideal trade area. See a larger version of the map. Ideal Trade Area Results.Zara Restaurant and Lounge Business Plan Restaurants from beginning a business plan, source:grupobittia.com best business plan images on Pinterest from beginning a business plan, source:grupobittia.com best Entrepreneurship images on Pinterest from beginning a business plan, source:grupobittia.com Free Tapas Restaurant Business Plan For Raising Capital from Investors, Banks, or Grant Companies!
Please note that the financials in this complete free business plan are completely fictitious and may not match the text of the business plan below.
Zara will be the restaurant of choice for a mature and adult crowd, couples and singles, young and old, male or female. Private investors, who will be part owners with a non-managerial interest in the business, will contribute the remaining $, owners, our commitment is .
Bagatelle Mall is the leading shopping and retail destination in Mauritius.
Its dominant presence and comprehensive retail and leisure options attract diverse shoppers from all over the island. With our plans of Zara’s expansion in South Centre Mall, our plan is to generate revenues of $7,, by Management of Zara is seeking an investment of $, in addition to the $, already invested by the founders.
Zara Restaurant and Lounge ethnic food restaurant business plan executive summary. Zara Restaurant and Lounge offers an eclectic, multi-ethnic, moderately-priced menu in Midtown Atlanta, Georgia.