Vocelli Pizza Franchise Plan - Essay Example

Vocelli Pizza Franchise Plan Table of Content I. II. Company Background Information a. Strength of Vocelli Pizza b. Weaknesses of Vocelli Pizza c. Competitor Strength d. Competitor Weakness III. Country Analysis a. Government b. Economy c. Target Population d. Infrastructure e. Target market f. Market Potential g. Market Risk IV. Government Regulation V. Franchise Strategy VI. Product Promotion Abstract This paper is a proposal on how Vocelli Pizza should introduce its franchise in United Kingdom. The paper gives information on the target market and anticipation of Vocelli Pizza in the new market. The paper has identified strengths and weakness of Vocelli Pizza and it intends to take the advantage of its competitor’s weakness to gain the market share. The approach Vocelli Pizza would take in introducing its franchise in United Kingdom would influence sales of its products. I. Company Background Information Vocelli Pizza is a renowned company in the hospitality industry. The company operates in United States with company outlets in Columbia, Maryland, Pittsburgh, Ohio among other states. The company is among the top 100 food companies, which offer quality food in America. The company was initiated in 1988 with an outlet in Pittsburgh. Vocelli Pizza has grown by opening new markets for its products. Vocelli Pizza has unique products in the food industry. It offers the following food products in the market Stromboli, Tuscan grilled chicken salad, Topping, and Gourmet Sub. Tuscan grilled chicken salad is one of the most selling products of the company. Tuscan grilled chicken is one of the products of the company that attracts a large number of customers every day. The company also offer take away pizzas in various supermarkets in United States. Vocelli Pizza has a franchise program that it intends to introduce in United Kingdom. Vocelli Pizza provides assistance to successful franchisees to identify business location for our products. Through the assistance of company executives, Vocelli Pizza offer market information, product entry behavior, and innovative approaches to be adopted by the franchisees. a. Strengths of Vocelli Pizza Vocelli Pizza has success record of over 22 years in the food industry. Vocelli Pizza owes its success to unique food selection that it offers to its clientele. Vocelli Pizza offer products, which are tasty and healthier. The company offers alternative to usual fast food fries which do not consider health standards. The customer experience in our restaurants is superb. The physical evidence of our restaurants attracts and provides the cool serene that many customers require. Vocelli Pizza serves its products according to needs of its customers an attribute that has promoted the success of the company. Franchise locations receive our products, which bear the same taste. Our staffs offer quality and timely services to our esteemed clients. b. Vocelli Pizza Weaknesses Transportation of our products is a great challenge that the company is facing. Sometimes our franchise outlets may register delay in product delivery. Another notable weakness of the company is poor market share command due high competition in the food industry. Some customers are reluctant to visit our restaurants because of trendy and classy looks. c. Competitor Strengths Major competitors of our company in United States include Fresh Berry, Candy Bouquet, Einstein Bros, Xooro, among others. Competitors in the Britain are McDonalds, Subway, and Kentucky Fried Chicken among others. Most of our competitors are renowned Pizza outlets in Britain and other destinations in the world. Many customers who visit Britain would be reluctant to eat at Vocelli Pizza because it has not penetrated world market. d. Competitors Weaknesses Many of our competitors have limited seating places for their customers because of large number of customers they handle. The quality of food that most of our competitors offer is substandard. Another weakness that many of our competitors have is delay to meet the needs of most customers. Delay in meeting customer demands often influence products distribution. II. Country Analysis United Kingdom has a stable economic growth, political system, and friendly business environment. Many investors find the policies of the country friendly to their businesses. Many people visiting Europe enter through United Kingdom since it is the get way to Europe. UK has a strong trade websites, which promotes investors interests in the country. Many foreign firms have interest in United Kingdom because of its world political power. This makes a destination for many people. a. Government The government of United Kingdom has a friendly relationship with United States. It views United States as one of its key allies. The government system is democratic thus offering a serene atmosphere for the investors. Stable governments provides suitable environment for business. The government has an open trade policy that promotes foreign investment. Many foreign firms that operate in United Kingdom can attest this fact. b. Economy United Kingdom has experienced economic growth for a very long time because of its sound economic policies that modulates the market players. Economists predict that the economy of United Kingdom would remain stable over the coming years. The economy of United Kingdom also supports non-agricultural sector, which is vital for our franchise business. Vocelli Pizza is ready to learn from the market trends. Our success and failures would help in unfolding the best entry approach to this economy. Other crucial areas of UK economy that are worth include low poverty level, low unemployment level, and vibrant fiscal policies that have controlled inflation at minimal level. c. Target population Vocelli Pizza targets a population of about 48 million people who live in most cities in United Kingdom. The growth rate of this population is about 1%. The business would balance its market entry behavior in order to address the demand of this population. UK has a population, which is receptive to modern culture. This provides an opportunity for our business since the culture of United States resembles the culture of people in UK. d. Infrastructure UK has some of the most modern infrastructure in the world. UK uses the following transport systems railroad, automotive transport, and air transport. Our firm intends to use air transport to ensure timely delivery of our products in the market. Rail transport in UK is quite cheap and it would be economical for our firm. Advance infrastructure is crucial to service delivery in the food industry (Grigg 303). Telecommunication and media industry would provide opportunity for our business to reach wide range of customers. Largely, internet services would help our business locate new markets. Another crucial area for our business is electricity. United Kingdom has an advanced electricity supply, which would support our business. Many clients in food industry prefer attractive interior with electric modulation. e. Target market Vocelli Pizza targets people between the ages of 16 to 40. This age bracket is quite active and usually consumes large quantity of pizzas. Our business would target Universities because they comprise of students who like quick foods. Appropriate choice of target market leads to success. (Saxena 481)Our market outlets in cities would cater for individuals who are above 40. This group of people likes attending restaurants at evening hours. Vocelli Pizza would design products, which would suit the needs of this group. Notably, Vocelli Pizza market entry approach would be unique because it offers unique foods at unique prices. f. Market potential The market potential of Vocelli Pizza is quite high. The records on our business growth indicate that our business has been successful. The franchise in United States is already doing well and our company hopes to penetrate the market in United Kingdom in the same way. Markets in United Kingdom and United States have open policies, a trend that our business would use to penetrate the UK market. Government regulation and protection in the food industry offers a good opportunity for our business to penetrate markets in the United Kingdom. g. Market Risks Anticipation for success does not eliminate possible risks for our business. Largely, changes in economic status of the world have an impact on the growth and potentiality of our business. Vocelli Pizza has identified the following potential risks that it is likely face as it penetrates the markets in the United Kingdom inflation due global economic meltdown, fierce competition, and political unrest. Competition may not favor our business because of the cost involved in production. Political unrest is likely to destabilize the markets by creating tensions among the citizens (Daft & Marcic 88). When inflation sours, our business is likely to operate on a minimal profit margin that would lead to loses. III. Government Regulation Government requirements influence the type of products that our business would present in the market. UK regulation dictates that each business should obtain government license in order to offer services in the country (Business review 52). Our business plans to acquire all the necessary documents for its operation in United Kingdom. Some of the necessary documents include health certification and food operation license. IV. Franchise Strategy Vocelli Pizza plans to open its first outlets in London city. Introducing our products in London City is crucial because of its strategic position. Our franchise must provide evidence that they are able to sustain our business. Role of franchise in our firm is to use different entrepreneurs to market our products. This would help us expand our market. V. Product Promotion Vocelli Pizza intends to promote its franchise and products through media. Television advertisement would be crucial in attracting potential franchisees. Trade shows is another method that our business would employ in order to create awareness in the society. VI. Product Costing Product costing is essential for our business because it would influence our market share. Vocelli Pizza intends to cost its products as follows; Product Costs Stromboli $13 Tuscan grilled chicken salad $25 Topping $10 Gourmet Sub $15 Work cited Business review. Volumes 9-13. Deddington: Philip Allan. 2002. 50-53. Print. Daft, L. Richard & Marcic, Dorothy. Understanding Management. Hampshire: Cengage Learning. 2010. 85-90. Print. Grigg, S. Neil. Infrastructure finance: the business of infrastructure for a sustainable future. New Jersey: John Wiley and Sons. 300-320. Print. Saxena, Rajan. Marketing Management. East Windsor : Tata McGraw-Hill Education. 2005. 475-486. Print. Read More