Feasibility Study

Assessment 9 – Business Feasibility Study

Business Management
BMN121A

9059471670C
Angela Duarte

Mr Hohenhaus

2nd September 2016

Word Count: 1905

 Piritz Foodz

Table of Contents
1.0 Business Overview: .............................................................................................................. 2
2.0 Target Market: ..................................................................................................................... 2
2.1 Primary Data:.................................................................................................................... 3
Figure 2 Dessert Shops in Southbank ................................................................................. 3
2.2 Secondary Data: ............................................................................................................... 3
Figure 3 Community Profile 2011 ..................... (Australian Bureau of Statistics , 2013)
4
3.0 Marketing Strategies:........................................................................................................... 5
Table 1 4P's of Piritz Food................................................................................................... 5
3.1 Diversity Marketing: ......................................................................................................... 6
3.2 Freebie Marketing: ........................................................................................................... 6
3.3 Word of Mouth Marketing: .............................................................................................. 6
4.0 Competitor Analysis: ............................................................................................................ 7
Table 2 Piritz Foodz Competitor Analysis ........................................................................... 7
4.1 PESTLE Analysis: ............................................................................................................... 8
Table 3 Piritz Foodz PESTLE Analysis .................................. (Nathaiel Smithson , 2015)
8
4.2 Industry Trends, Patterns and Relationships amongst Consumers: ................................ 8
5.0 SWOT Analysis: .................................................................................................................... 9
Table 4 Piritz Foodz SWOT Analysis ...................................... (Jessica Lombardo , 2015)
9
6.0 Marketing Challenges: ....................................................................................................... 10
Diversity Marketing .............................................................................................................. 10
Freebie Marketing ................................................................................................................ 10
Word of mouth Marketing ................................................................................................... 10
Table 5 Marketing Strategies Implementation................................................................. 10
Solutions: .............................................................................................................................. 11
Diversity Marketing .......................................................................................................... 11
Freebie Marketing ............................................................................................................ 11
Word of mouth Marketing ............................................................................................... 11
7.0 Evaluation: ......................................................................................................................... 11
8.0 Recommendations: ............................................................................................................ 12

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1.0 Business Overview:

Piritz Foodz is quirky and unique dessert shop that is based in Southbank Brisbane. This business sells variety of
Philippines sweet desserts including the interesting names like halo – halo, leche flan and many that Filipino
communities will find familiar, and those new to the Philippine cuisine will find tempting. It is owned by a
young Filipina with a charismatic personality named Angela Duarte. The history behind Piritz Foodz is Angela
Duarte’s childhood memories is when she was eating street desserts back in the Philippines known as Ice
Scramble, she immediately had her thinking cap on and she began planning to make a small dessert shop
somewhere in Brisbane that can be accessible.

Piritz Foodz mission statement is to serve the best quality dessert and to provide the best customer service.
We will maintain a friendly, creative and quirky work environment which respects the aspects of diversity, new
ideas and hard work that is put in.

Piritz Foods will sell the best quality yet unique and quirky dessert with a Filipino flavour for the people who
live nearby. Not only, will they sell desserts, they also provided some of the Philippine drinks such as buko
juice, sago’t gulaman, tang juices and many more. In that case, this will bring out the competitive edge within
their competitors like Max Brenners, Cowch Desserts and the Beach House that is located in South Bank.

2.0 Target Market:

Based on the food industries, their target market is the millennials aged 20s to 35’s years old as the millennials
are more attracted to the food industries. Based on the research that the owner has done, “Having a clear
idea of the demographic you want to reach, and to which your product or service could be most useful are the
basic aspects needed to form a successful marketing campaign” (Beth Jackson , 2014). Based on the primary
and secondary data, it will identify the specific target audience for the Piritz Foodz.

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2.1 Primary Data:

Based on the primary data, there are over 4 dessert shops around in the Southbank Brisbane as shown in the
picture below.

Figure 1 Dessert Shops in South Brisbane

Also, the picture shown below is the types of dessert shops in Southbank Brisbane including; Max Brenners,
Cowch Dessert Bar, Gelare, Chocolateria San Churro and many more.

Figure 2 Dessert Shops in Southbank

Founded on the primary data, there are few Filipino communities in Southbank Brisbane from lunch to
afternoon tea, this shows that most Filipinos visits Southbank regularly. Moreover, there are more females
than males during both times, correspondingly the Filipino communities is more into working – middle social
class status.

2.2 Secondary Data:

Based on the secondary data that there are over 90 Filipino communities around Southbank to South Brisbane
area in 2011 as shown on the picture below. Piritz Foodz will identify their target market by looking through
the secondary data as shown on the picture below of how many Filipinos lives in South Bank area.

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Figure 3 Community Profile 2011 (Australian Bureau of Statistics , 2013)

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3.0 Marketing Strategies:

Marketing strategies is a way of a specific business to reach their marketing goals within their comprehensive
plan. There are types of marketing strategies that includes the 4P’s which is Product, Price, Place and
Promotional. A marketing strategies is to satisfy the needs of a target market at a profit within the science and
art of exploring, creating and delivering the satisfaction that the business needs (Philip Kolter, 2014) says. It is
important in the business to have marketing strategies because it will streamline product development, helps
determine optimal prices, establish effective distribution and to assist with marketing communications
through social media.

An example of effective marketing strategy is when the Chocolateria San Churro at Southbank promote their
business along with their products through social media such as Facebook, Instagram and through gaming
apps so that it can attract their specific target audience.

Piritz Foodz marketing strategies is shown on table below and these is what they will be using to attract their
target audience and also to expand their customer base. Piritz Foodz product that will be selling will be based
on the tradition streets foods cuisine, meanwhile their pricing strategy will be penetration pricing as per base
on the primary data. Piritz Foodz will be distribute in the Southbank where there will be many Asian and
Western culture. They will promote by having a loyalty cards, free giveaways and advertise through social
media.

Product: Pricing:
 Ice Scramble  Penetration pricing based on the primary data.
 Halo – Halo  Firs week – free taste and samples
 Leche Flan  First two months; small bowl $2.50, medium
 Buko Pandan bowl $3.00 and large bowl $4.00.
 Fruit Salad If pricing strategy does not turn out well, lower the price
 Graham down for each bowl or make one size bowl with the
 Sago’t Gulaman appropriate price
 Buko Juice
 Tang Juices If pricing strategy turns out well, do not change the price
and also add more toppings for the desserts so that it will
have a wider range for the customers to choose from.

Promotional: Place:
 Loyalty cards  Southbank
 Free bags every 5th purchase  Event such as; Noodle Market, Wednesday
 Advertise through social media such as Market and also Street Market.
Facebook, Twitter, Instagram and Menulog.

Table 1 4P's of Piritz Foodz

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3.1 Diversity Marketing:

Diversity Marketing is a marketing plan that analyses the different types of market segmentations based on
cultural differences such as; tastes, expectations, beliefs, world views and specific needs.. Piritz Foodz will use
diversity marketing to recognize what types of audience they would attract for the business. And that, the
target audience will have a different types of taste they would want. They will use diversity marketing by
bringing all the Asian and Western culture in the shops to try different tastes that has not been in the industry
for a while.

3.2 Freebie Marketing:

Freebie marketing is to promote your product by giving away free samples and to sell the products at the low
rates so that it can boost the sales of your product and services. Piritz Foodz will use the freebie marketing for
one week so that they can identify if their product is effective and efficient and if not, Piritz Foodz will need to
make improvement for their products.

3.3 Word of Mouth Marketing:

Word of mouth marketing is a strategic idea for a business that allows a passed information from person to
person by oral communications. Piritz Foodz will utilize word of mouth marketing so that it can boost customer
base as well as to grow their sales.

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4.0 Competitor Analysis:

A competitor analysis is the business competitors within a specific industry. It is a way that a business can be in
their competitive edge. This identifies the competitors within the industry and to evaluate the strategies that
included their strengths and weaknesses relatively to their product or services.

An example of competitor analysis is between Max Brenners and Cowch Dessert Bar that is based in
Southbank Brisbane. Max Brenners and Cowch Dessert Bar sells a fulfilling chocolate desserts which allows
their target audience to have a craving satisfaction. However, there are more Max Brenners distribution
around the Brisbane area which allows the company to gain profits and customers. It can also help them to
expand their business locally. On the other hand, Cowch Dessert Bar only have a one distribution in Brisbane
which can only the target audience to be more accessible as it is in the city area.

Piritz Foodz competitors are Max Brenners and Cowch Desert Bar as shown on table 1 below. Piritz Foodz
however can be competitive as they sell unique Philippine cuisine dessert which allows most Filipino
communities find familiar and would not be homesick after all, and, those whom is new to the Philippine
cuisine dessert find tempting and a craving satisfaction. Piritz Foodz competitor analysis evaluation can
establish their product and services unique which attributes to play up in order to attract their target market.

Factors Max Brenner’s Cowch Dessert Bar

Target segment Millennials Millennials

No. Of shops in 5 1

Queensland
Location Southbank, Hamilton, Portside Wharf, Bulimba, Southbank
Newstead
Menu Fulfilling chocolate desserts, pastries, coffee, Pastries, dessert pizza, churros, cakes, hot
drinks, chilled drinks and desserts and
alcoholic products.
Prices (Avg cost) $15 $15

Advertising Social Media, Newspaper, Billboards, Brochures Social Media, Flyers, Brochures

Brand image “ A Place Like No Other” Our carefully crafted menu is

bursting with lavish desserts,
delicious drinks, cheese boards and
guilty pleasures – enough to make
any cow's bell ring!

Table 2 Piritz Foodz Competitor Analysis

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4.1 PESTLE Analysis:

It is important for a business to have a PESTLE analysis so that they can identify any advantages they can use
while selling their products and services. Piritz Foodz PESTLE analysis is shown in the table below to have more
depth for their business.

Political Economic Social

Stable political government Labour cost in suppliers Growth of working and
Improving governmental country has risen middle class
funding for organization Unemployment rates Health consciousness
declined increased
Stable economy Engagement in eating
outside home environment
Growth of Filipino
community in Brisbane.
Technological Legal Environmental
Availability of specialty Safety regulations of the Growth of responsible
ingredients for the business product sourcing support
Growth of mobile Employment regulation Business sustainability
purchases through apps increased trend
Role of technology in
marketing and internet.
Table 3 Piritz Foodz PESTLE Analysis (Nathaiel Smithson , 2015)

4.2 Industry Trends, Patterns and Relationships amongst Consumers:

In order to identify the food industry trends, patterns and relationship amid the specific consumers, it is
indispensable to conduct the external stimuluses that are relevant that is conducted in the PESTLE Analysis in
4.1. With a stable political and economic environment, the potential for marketing success for Piritz Foodz is
high. This is a result political support mechanisms for small business as well as economic conditions creating
high consumer confidence leading to a culture of spending. Low interest rates also support consumer spending
and behaviour as consumers have more disposable income. The growth of Filipino community in Brisbane
where many is this demographic have a high paying jobs in the professions has led to many engaging in
socialising outside the home, and consequently searching for traditional cuisine such as Bodega Grill and Peel
Street. This emerging trend bodes well for the potential success of Piritz Foodz. The growth in role of
technology in marketing and internet is increasing which Piritz Foodz can engage in promoting through apps
and web marketing. With a future stable legal and environmental factors, the potential for marketing success
is very high due to the employment regulation increasing and the growing of responsible sourcing support.

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5.0 SWOT Analysis:

A SWOT analysis is a tool used by a business or marketers to analyse and monitor the internal and external
factors of the business. It is a strategic tool for a business so that it can help to develop a strong business
strategy by considering the SWOT factors. The benefits of a SWOT analysis are; understand business better,
addresses weaknesses, take advantage of the strengths and to develop business goals and strategies for
achieving them. Piritz Foodz SWOT analysis is shown on the table below to understand more about their
internal and external factors.

Strengths Weaknesses
Extensive global supply chain Imitable products
Diversified business through subsidiaries Most products are generalised standards

Opportunities Threats
Product mix are diversified Competition from middle dessert shops
Partnerships with other firms Imitation
Table 4 Piritz Foodz SWOT Analysis (Jessica Lombardo , 2015)

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6.0 Marketing Challenges:

In the table below is showing Piritz Foodz marketing strategies issues that can impact their business goals.
Piritz Foodz can also have a target audience issue as it might be harder to find whom they are targeting is.
However, they are solutions to that such as; understanding the demographics of their target audience, focus
on one or multiple key cities, know their ages, financial background, interests, etc. This can be considered a
conduct of survey, polls, direct observation and census data.

Diversity Marketing Freebie Marketing Word of mouth Marketing

 Integrated communications  Limited supplies of the  Spreads slowly
across all segments products The method of advertising by word of

They must lead with in-depth multicultural The product that will be in the free mouth is often slow to spread.

insights, but have a general consistent samples for a week might run out within  Limited audience
message that resonates across all markets the three day period Generally limited in the number of
and publics.  Customers doubting if they potential clients you can market to in a

 Multiracial families should purchase or not given period when using word of mouth

Research needs to occur to make The customers who had recently had their advertising.

communication decisions based on free samples might not want to purchase  Tracking issue
individual multiracial families. the product. It is almost impossible to thoroughly track

 Competitors will copy the the amount of business generated by

 Immigration
Marketers need to be proactive in
communicating with immigrants whether
they’re legal or not
 New technology
Multicultural communicators must
incorporate new technologies into their
communication and research strategies.
word of mouth marketing
style of freebie marketing.
 Negative feedback effect
Competitors of Piritz Foodz can copy the
style of their strategic idea to expand their A hard truth about word of mouth
customer base. marketing is what happens when a
customer tells others about a bad
 Might not be effective or
experience she has had with your business
efficient for the business
The freebie marketing might not be

 Health and wellness effective as it might not grow their

product sales. Also, it will be not efficient
Good organizations will not only care for
due to the expectations of the customers.
their employees and volunteers, but will
also reach out to ensure their stakeholders
and customers are healthier

(Lisa Mooney, n.d.)

(Rochelle L.Ford, 2008)

Table 5 Marketing Strategies Implementation

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Solutions:
Diversity Marketing Freebie Marketing Word of mouth Marketing
 Communicate with all  Create more of the  Advertise through flyers,
target audience through products a day before brochures, newspapers and
social media such as  Advertise with a charming billboards
Facebook, Instagram and personality  Create an event so that it
Emails.  Make a unique and creative can expand customer base
 For multiracial families, get samples  Promotional through social
an interpreter so that they  One week period of free media
can understand what is samples.  Create more loyalty
your business about through consumers.
 Contact with the
government to identify any
permanent residency
 Create an app with
language features
 Free medical treatment for
employees and volunteers
in case of an emergency.

Table 6 Marketing Challenges Solutions

7.0 Evaluation:
This feasibility business idea option is viable because marketing strategies show that the Piritz Foodz marketing
strategies that includes the 4P’s (Product, Price, Place and Promotion), Diversity, Freebie and Word of mouth
marketing is a great idea in the business as this can lead to expansion of the small dessert shop and attract
more target audience. Additionally, Piritz Foodz that has been identified through target market based on the
primary data and the secondary data, it is suitable that the business can attract the millennials that is in the
working to middle social class status. Finally, there are a number of patterns and relationships that support the
business idea as identified in the PESTLE analysis. Australia has a stable economy due to its economic stability.
In turn, this can lead to consumer confidence. Given the growth of the Filipina community in Brisbane it is
likely that the target market will continue to grow into the future. This bodes well for Piritz Foodz as they will
continue to utilize marketing strategies that target this particular group. The use of diversity marketing
presents Filipinos with an opportunity to be able to experience familiarity in their new homeland. Word-of-
mouth marketing, assuming that the product satisfies in terms of price and placement, is strong in the Filipino
community where many recommendations are made at community gatherings. For these reasons the success
of this business idea is likely, and therefore feasible.

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8.0 Recommendations:
The research presented in this report indicates that Piritz Foodz should enter the market. Primary data
indicates that there is a growing Filipino community to support such an enterprise, and word-of-mouth
marketing can only lead to an increase in its popularity. Many millennials and young Filipino families are in the
professions, and enjoy social dining and gatherings. Another possible option for a business to attract their
target audience and to promote their product is to create a Facebook page and an app which can produce
income, expansion of customer base and also to attract more whom is millennials and in the working to middle
social class status.

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