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ADVANTAGES In this survey we examine whether a great M&S Just Food convenience store can be profitable once located in Intricate Desjardins, Montreal. In the U. K.
Simply Food end up with a strong company image and wide-variety of goods that focus on quality. Even though considered more expensive than contending stores To verify that the string will have similar level of accomplishment in Montreal, we first analyzed the basics and competitive landscape in the industry. Each gap in the market was recognized, we utilized quantitative study practices to examine each of the marketing mix elements involved in developing the store.
The findings will certainly indicate whether or not the location and consumer pool area under consideration can RESEARCH TARGETS * Recognize the M&S Simply Food products and companies, and the factors that travel the chain’s success inside the U. T. * Analyze the market basic principles of the comfort store sector in Montreal, and recognize whether a industry gap to get quality, sophisticated stores including M&S Simply food is present * Evaluate whether M&S Simply Meals will be successful in Complex Desjardins depending on the following component: (i) Area (ii) Consumer Demographic (iii) Consumer Tastes (iv) Competition & Costs Propose key operating and marketing strategies in order that the success of M&S Merely food in Complex Desjardins. METHODOLOGY Sector Knowledge Exploratory research was employed to get understanding of the U. E. convenience marketplace and lean how the M&S Simply Foodstuff chain is positioned. This involved a review of studies and data made available by simply leading international research establishments, as well as casual discussions with consumers who also previously occupied London and therefore are familiar with the manufacturer. We utilized the same strategies when conducting a similar analysis of the Montreal convenience industry.
In this level of our exploration we were able to apply even more formal methods, such as performing in-depth interviews with retail outlet managers. After all the necessary data was obtained, a qualitative comparison of the industries was made to determine whether opportunities been around for M&S Simply Meals in Montreal and if the repositioning of goods would be required. Target Market From our previous evaluation we set up a target market: customers at the Sophisticated Desjardins. This kind of location is one of the main attractions in Montreal, at a vast 4 , 000, 000 square feet.
Roughly 30, 500 people arrive to the complex and its area daily to work, store, eat and/or enjoy the actions surrounding the Central Sq. The Central Square inside building provides a surface of 15, 000 square feet which is surrounded by ad advertisement gallery of 100 retailers and eating places. Thus, this kind of location was chosen because of its notoriety and large exposure to citizens and visitors. Survey and Sample Size To determine if consumers in Complex Desjardins would be willing to purchase M&S Simple Food products we conducted an confidential survey upon food solutions within the complicated.
The study was a questionnaire made up selection of formats made to draw out advice about the location, market, consumer choices, surrounding competition, pricing side by side comparisons and customers’ willingness to pay. Interviews were conducted at the Sophisticated Desjardins, along with within a 500m radius of its environment which comprised of Complexe Guy-Favreau, Bleury Road, Place Des Arts and Boulevard Saint-Laurent. We grouped qualified respondents as consumers that came through the complex in least 3 times a week.
Altogether, we interviewed 96 persons, considering a variability of 50% and a 10% acceptable sampling error at 95% level of confidence. Supposing the total inhabitants under statement here is 30, 000, it can be evident a 5% confidence interval can be well previously mentioned 96. Therefore, no more readjustments are needed due to tiny sampling size. FINDINGS Ease Market (1) U. E. Industry The U. T. convenience retail outlet market was valued at? 30. on the lookout for billion inside the 12 months to April 2010, representing a 6. 3% increase around the previous 12 months. The value of the marketplace continued to grow inspite of a 0. 5% on hand numbers. With he total U. E. Food and Grocery market expanding for a sluggish rate of 4. 1% in the same period, it is evident which the convenience sector is speeding up at a faster pace compared to the overall marketplace. Thus, its market share offers risen to 20. 5%. The factors generating the sector are the rising number of solitary person homes, a growing populace, increasing volume of women in the work place and longer operating weeks. The sector is likewise propelled frontward by superior operational standards, greater understanding of shopper developments and more modern day, tailored ease solutions. (2) M&S Basically Food Positioning
The convenience sector is highly fragmented, with retail store operators split up into the following sections: co-operative, forecourts, multiples, emblems & franchise, and non-affiliated independents. M&S Simply Foodstuff is area of the franchise part, which registered the quickest growth in the last year. This kind of expansion was driven by additional stores, increased promotional activity and improved good value. M&S Basically Food specializes in selling ready-made meals: green salads, sandwiches, sweets, snacks, and microwavable dishes. The self-service store also sells refreshing produce, obtaining wide selection of fruit and vegetables.
Being high end oriented, the franchise targets working experts not only buying a fast, healthier meal, nevertheless also ready and in a position to pay yet another expense intended for high quality food. For the added premium, buyers have access to more adventurous tested recipes, better packaging and fresher ingredients. These value “added services, along with the modern structure of the shops, give the manufacturer a competitive edge in the market and allow it to capture a substantial share of shoppers. A negative sentiment expressed simply by consumers was attributed to the expertise of purchasing at M&S Simply Food shops.
Due to brand’s high reputation, long queues often contact form inhibiting surfing by various other potential customers and causing feeling of frustrations simply by professionals which can be time-sensitive. (3) Montreal Sector The convenience sector in Montreal is made of Canadian chains and independents. Family-run depanneurs cater to local neighborhoods and zugezogener populations, offering specialty food and lower price long-distance calling cards alongside the standard convenience-store cost.
However , industry is centered by a large Canadian chain known as Couch-Tard Inc. The chain presents a quality range of freshly made coffee, frozen/iced beverages, refreshing sandwiches and also other fresh food items which are designated under amazing brands. Arguing that most grocery stores are too chaotic, the Couche-Tard company introduced a new idea called “Store 2000. These kinds of stores possess wider layouts, brighter light, modern decoration and often have Quick-Service Eating places (QSR) located within all of them. The new strategy was a accomplishment and the results were integrated into improvements for all stores. 4) M&S Simply Foodstuff Expanding to Montreal It really is evident from your research which the U. E. has a varied group of grocery stores with different positioning catering to all or any consumer cash flow brackets. However , in Montreal we see that Couche-Tard owns the majority of the market and is created to target the standard consumer, therefore not contending with deppaneurs immigrant pool. This also illustrates a niche in the Montreal convenience market: value-added stores aimed at customers from a better income group. M&S Just Food’s setting in U. K. onvenience markets causes it to be an ideal candidate. Survey Effects (1) Site The statistical analysis in the questionnaire says over 85% of the participants visited the Complex Desjardins and its around area in least three times a week. In Table beneath it is evident that the range of times every week respondents get pleasure from meals with the complex is usually greater in frequency towards higher ideals, with the overall average in 2 . 7 times. This illustrates that the location obtains a great deal of foot traffic, and is a favorite food solutions venue. Stand 1: When Consumers Consume at Sophisticated Desjardins | Frequency| Percent| Valid Percent| Cumulative Percent| Valid| Never| 2| 2 . 1| 2 . 7| 2 . 7| | Once a month| 2| 2 . 1| 2 . 7| a few. 4| | Biweekly| 4| 4. 3| 5. 4| 10. 8| | Once a week| 7| 7. 4| 9. 5| 20. 3| | 2 times a week| 13| 13. 8| 18. 6| 37. 8| | Three times a week| 20| 21. 3| 27| 64. 9| | Four times a week| 16| 17| 21. 6| 86. 5| | 5 fold a week| 10| 12. 6| 13. 5| 100| | Total| 74| 78. 7| 100| | Missing| System| 20| 21. 3| | | Total| 94| 100| | | Furthermore, findings reveal that participants favor particular designated areas within the intricate and its natural environment when eating.
With response rates of 38% and 34% respectively, the most popular areas are the food court and restaurants/cafes within the adjacent Saint-Catherine Streets. Diagram 1: Desired Food Locations (2) Consumer Demographic In Table two we see the sample size under consideration displays the sociable demographic profile of the region: professionals, neighborhood residents or students studying nearby. There is also a fairly actually distribution between male and feminine respondents, with males a bit ahead in 51%, selling that the location equally attracts both genders. Table 2:
Social Demographic Profile of Complex Desjardins Based on Sample Statistics| | | I actually work at or perhaps close to Complexe Desjardins| We live in or close to Complexe Deskardins| I examine at or close to Pointilleux Desjardins| non-e of the above| N| Valid| 36| 28| 21| 3| | Missing| 58| 66| 73| 91| | Mean| 1| 1| 1| 1| | Median| 1| 1| 1| 1| | Mode| 1| 1| 1| 1| | | | | | | I work on or near to Complex Desjardins| | | Frequency| Percent| Valid Percent| Cumulative Percent| Valid| Yes| 36| 32. 3| 100| 100| Missing| System| 58| 61. 7| | | Total| 94| 100| | |
I actually live in or near Complex Desjardins| | | Frequency| Percent| Valid Percent| Cumulative Percent| Valid| Yes| 28| 30. 8| 100| 100| Missing| System| 66| 70. 2| | | Total| 94| 100| | | My spouse and i study for or close to Complex Desjardins| | | Frequency| Percent| Valid Percent| Cumulative Percent| Valid| Yes| 21| twenty-two. 3| 100| 100| Missing| System| 73| 77. 7| | | Total| 94| 100| | | Not one of the above| | | Frequency| Percent| Valid Percent| Cumulative Percent| Valid| Yes| 3| three or more. 2| 100| 100| Missing| System| 91| 96. 8| | | Total| 94| 100| | | | | | | | |
Consumers in the region tend to become well educated, with 63% of respondents having completed a college degree. This kind of, alongside outcomes that display 41% of respondents are between the ages18-24, indicates that complex allures a great deal of small professionals. Yet , Diagram two below as well illustrates that another 48% of respondents are between ages of 25-40. Furthermore, the average home is entertained by installment payments on your 8 citizens and generates roughly CAN37, 600 a year. These conclusions highlight one more consumer profile, that of regional residents, classifying them as small family models in the middle-to-high income group.
Thus, our findings determine that the client pool by Complex Plan 2: Cash flow levels (3) Consumer Choices Our record analysis of the questionnaire says the consumer personal preferences of the sample pool happen to be aligned with M&S Basically Food’s products and services. Roughly 61% of respondents stated that they would obtain food from a comfort store specializing in quality. All their main aides for purchase included the dependability of top quality food, the ease of ready-made meals, to be able to enjoy restaurant quality food at lower prices, and the probability to maintain a healthy diet.
Furthermore, the study revealed that when faced between the choices of obtaining their own foodstuff or having it served to them, respondents were equally divided. These elements encompass the overall message, product or service of M&S Simply Meals value-added providers. Table a few analyzes the partnership between selling price and state of health of foodstuff in terms of their very own importance towards the end client. The cross tabulation clearly reflects both variables will be integral inside the decision making process of the consumer: the more emphasis added to the state of health of meals, the more significant pricing becomes.
We can as well conclude in the chi square-shaped test which the relationship involving the two factors is statistically significant. However, our results proved inconclusive when determining whether buyers would be offering more pertaining to healthier, high quality food. This kind of limitation was due to the not enough responses for the particular problem in the review. Table three or more: Relationship Among Price and Health in Consumer’s Decision-Making Process Healthy food on the menu 5. Price Get across Tabulation| Count| | | | | | | | | | | | | | Price| | Least| 2| 3| 5| 6| 7| 8| 9| Most important| Total| Healthy food within the menu| Least important| 1| 0| 0| 0| 0| 0| 0| 0| 0| 1| | 3| 0| 1| 0| 0| 0| 0| 1| 1| 0| 3| | 4| 0| 0| 0| 0| 0| 1| 0| 0| 1| 2| | 5| 0| 0| 0| 0| 1| 2| 0| 0| 0| 3| | 6| 0| 0| 0| 0| 2| 1| 3| 2| 0| 8| | 7| 0| 0| 0| 1| 1| 3| 3| 4| 3| 15| | 8| 0| 0| 0| 0| 1| 3| 8| 2| 4| 18| | 8| 0| 0| 1| 2| 1| 2| 0| 2| 0| 8| | Most important| 0| 0| 0| 0| 4| 0| 2| 2| 7| 15| | Total| 1| 1| 1| 3| 10| 12| 17| 13| 15| 73| | | | | | | | | | | | | Chi-Square Tests| | | | | | | | | | | Value| df| Asymp. Sej. 2-sided)| | | | | | | | Pearson Chi-Square| 1 . 52E+02| 64| 0| | | | | | | | Probability Ratio| seventy two. 529| 64| 0. 217| | | | | | | | Linear-by-Linear Association| 6th. 593| 1| 0. 01| | | | | | | | And of Valid Cases| 73| | | | | | | | | | a. 81 cellular material (100. 0%) have expected count below 5. The minimum predicted count is usually. 01. | | | | | | | | | | | | | | | | Correlations| | | | | | | | | | | | Healthy food on the menu| Price| | | | | | | | Healthy food within the menu| Pearson Correlation| 1|. 303**| | | | | | | | | Sej. (2-tailed)| | 0. 09| | | | | | | | | N| 74| 73| | | | | | | | Price| Pearson Correlation|. 303**| 1| | | | | | | | | Sej. (2-tailed)| 0. 009| | | | | | | | | | N| 73| 73| | | | | | | | **. Correlation is significant at the 0. 01 level (2-tailed). | | | | Just how appealing different food items are to the sample pool is usually illustrated in the table beneath through the mean value of each product, together with the number 1 addressing very little charm and the number 10 great appeal. The relatively more powerful desire for salads and casse-cro?te over desserts reflects the conscious nature of the buyer.
Furthermore, the high frequency of fruit’s appeal suggests consumers’ eagerness to get diversity in menu choices. Thus, it really is evident the fact that taste personal preferences of the individuals are in line with a few of the Simply Foods. However , the absence of replies concerning fruit and vegetables and microwavable meals advise a lack of with regard to such things. Table some: Appeal of Food Products | | Salads| Sandwiches| Desserts| Juices| Fruits| N| Valid| 74| 73| 74| 73| 74| | Missing| 20| 21| 20| 21| 20| | Mean| six. 35| several. 95| 6. 41| six. 37| 6. 95| | Median| 8| 8| 7| 8| 7| | Mode| 7a| 9| 9| 8| 7| a. Multiple settings exist.
The actual value is usually shown| | (4) Competition and Pricing Several inquiries in the review were built to size the level of competition M&S Simply Meals would confront in Complicated Desjardins. The findings concluded that respondents popular a combination of restaurants and meals court channels, with the leading two in each individual category getting: (1) Eggspectation and Pioche Rouge, and (2) A&W and Subway. This gives M&S Simply Meals a competitive advantage as the high quality food gives buyers the cafe feel, while the ready-made, self-service concept imitates the convenience in the food court docket.
Despite the popularity of some competition, 63% of respondents stated that they you don’t have a recommended food chain. The results indicated that bad assistance and low quality of food were the key deterrents of brand name loyalty. Nevertheless , nearly 50 % of respondents indicated boredom with current foodstuff chain alternatives and eagerness to try new spots. When mentioned sentiments relating to a new chain called “Simply Food, 42% of respondents said that the name become a huge hit to these people. Also, Diagram 3 demonstrates the types of cuisines participants believe will be missing inside the complex. Diagram 3: Types of Cuisine Missing in Sophisticated Desjardins
The frequency under illustrates that 47% of respondents spend between CAN10. 00 to CAN14. 99 on a meal in Sophisticated Desjardins, together with the overall common meal priced at CAN11. eighty. In comparison, M&S Simply Foodstuff individual products range normally from CA2. 00 to CAN4. 55. However , in Table 5 below we come across that the brand’s luxury foods cost much more, averaging CAN22. 00. Taking into consideration the average costs of respondents, the studies suggest that customers in Complicated Desjardins are more likely to purchase person food items, rather than an entire extravagance meal.
Stand 5: M&S Simply Food Prices | Cost in Pounds (GBP)| Cost in Canadian Us dollars (CAN)| Common Cost of Salads| 2 . 77| 4. 34| Average Cost of Ready-Made Meals| 2 . 64| 4. 13| Average Cost of Fruit| installment payments on your 81| four. 40| Average Cost of Dessert| 1 . 31| 2 . 05| Average Expense of Luxury Meals| 14. 11| 22. 08| Correlations By running a series of correlation tests, all of us discover whether or not the demand for meals within the intricate is influenced by the cash flow level of the respondents, the cost of food, types of food chains readily available and consumers’ taste tastes.
Table 6th below implies that the only 2 variables which might be correlated are definitely the number of instances respondents eat at Sophisticated Desjardins plus the annual income levels. Although the benefit is certainly not statistically significant to 0. 05, it is important enough to show a romance: that the consistency of visits, or rather demand, is determined by and proportional to the income amounts of respondents. Desk 6: Factors Correlated with the Demand for Food | | How often eaten at Sophisticated Desjardins| Which area do you prefer to eat in| Educational Level| Income Level| How often eaten at Sophisticated Desjardins| Pearson Correlation| 1|. |. 343**| 0. 116| | Sej. (2-tailed)| |. | 0. 003| 0. 332| | N| 74| 0| 72| 72| Where? | Pearson Correlation|. a|. a|. a|. a| | Sig. (2-tailed)|. | |. |. | | N| 0| 0| 0| 0| Education| Pearson Correlation|. 343**|. a| 1|. 324**| | Sig. (2-tailed)| 0. 003|. | | 0. 006| | N| 72| 0| 72| 70| Income| Pearson Correlation| 0. 116|. a|. 324**| 1| | Sej. (2-tailed)| zero. 332|. | 0. 006| | | N| 72| 0| 70| 72| a. Cannot be computed because by least one of many variables is usually constant. | **. Relationship is significant at the zero. 01 level (2-tailed). LIMITATIONS As in any research record, a number of constraints in the execution and research of our record occurred. The main issue all of us encountered is that of missing data, where a number of concerns in the questionnaire were left unanswered. Consequently, many of our estimates were discovered statistically bad due to lack of information, when other estimations may be considered biased if the data via questions still left vacant happen to be systematically distinct. In the future, all of us suggest increasing the test size to assure a more reliable and valid data collection.
Another prevalent limitation may be the subjectivity of surveys for the reason that respondents often fail to answer questions truthfully and so skew the results. Efforts to ensure data is appropriate would have essential more costs, however budget restrained all of us from implementing such solutions. Budget limitations limited the sample size, and treatment should be worked out in the future to general these kinds of findings even more. CONCLUSION & RECOMMENDATIONS After much evaluation, we believe that M&S Merely Food will prove to good if proven in Intricate Desjardins.
Each of our findings deduce that the complicated and its encircling are the ideal area to pertaining to Simply Foodstuff to attract it is target market. Consumers that purchase meals at the sophisticated are fresh professionals and native residents who have fall into the middle-to-high profits bracket, and therefore are able to manage brand’s higher priced products. Furthermore, consumers’ merchandise preferences shown strong desires for top quality food and a wider variety of cuisine options. Simply Meals prides alone on providing its consumers premium quality meals made from daring recipes and fresh elements, and therefore can capture this unmet require.
Although there is quite a lot of competition in the Complex Desjardins, its individuals are open to alter and are ever evolving their style pallet. The first style of M&S Simply Foodstuff enables that to provide customers with quality restaurant meals at the rate and comfort of food courtroom service, thus capturing a wider share of the industry and rivalling with both food chain types. The following is a list of recommendations we expect will ensure earnings of M&S Simply Meals in Sophisticated Desjardins: * Locate the convenience store inside the food court, as it attracts the greatest number of consumers.
The food court likewise compliments the self-service nature of the retail outlet, providing customers with an adjacent seating area. * Ensure all advertisements of the brand strongly highlight the “Simply Food name, as well as words that echo the stores value added services: by way of example “High Top quality Food, “Adventurous Recipes, “Variety of Food Options, and “A Healthier Meal Option. This well help the brand appeal to consumers’ tastes. * Limit products to ready-made meals, sandwiches, green salads, fruits and beverages.
Banish the sale of vegetable produce and microwavable meals, since there would not seem to be a requirement for this sort of items. 2. To inspire the sale of more expensive luxurious platter meals, we suggest holding lower price promotions during the soft beginning of the retail store. Reduce the value of platters to somewhat below the common cost of foods in the intricate, in order to attract consumers and make brand loyalty. * To compete with opponents, M&S Just Food must build up its reputation being a quality meals provider for a quick and convenient rate.
To ensure this is certainly done successfully, stores has to be designed to provide adequate space for surfing, which is to always be separated from the pay sign-up. By doing so M&S Simply Foodstuff will not have a similar queuing issue it runs into in the U. K., which often deters potential clients. REFERENCES IGD The Food and Grocery Experts. “Convenience Retailing Market Summary, [On-line]. Obtainable: http://www. igd. com/index. or net? id=1&fid=1&sid=7&tid=26&cid=91 [20/1/11] Marketing Week (2007, April). “Assessing the M&S Simply Food Manufacturer, [On-line]. Obtainable:
