Problem & Solution
Problem Worth Solving
The Philadelphia kosher catering market is an interesting one. There are several caters that offer services that are quite similar to each other in terms of price and menu options. In the past consumers would not welcome new kosher menu items, it is just that people have incorrectly made the assumption that kosher meals have to be boring. Recently they have discovered they really like and need kosher food.
Fressen Catering’s mission is to provide the customer with the finest kosher catering. We exist to attract and maintain customers. When we adhere to this maxim, everything else will fall into place. Our services will exceed the expectations of our customers.
Market Size & Segments
Fressen Catering has two distinct target populations:
- Middle class kosher clients. This group of people does not have huge amounts of disposable income, recognizes that it is costly to sponsor a kosher dinner party, and is willing to incur the expenses, but will try to minimize them.
- Upper class kosher clients. This group has intertwined kosher values throughout their lives and is willing to spend whatever it takes to throw a high-end kosher dinner function. Typically, this group is characterized by a wealthy one-income family where the male works and the female does not. The female of the household typically thoroughly enjoys the planning of these events.
The target market segment strategy will not be significantly different to address the two different groups. Both groups, regardless of income typically belong to the same group of religious congregations. Therefore, to reach the different groups does not require a distinctly different strategy. What differentiation it will require is different menu offerings needed to satisfy the different groups. The upper-end menu items are cost prohibitive for the middle class target segment.
As stated in the previous section, there are four other kosher caterers that serve the low to middle end of the market. These caterers compete to some degree on cost (due to budget constraints of some clients), but more so on service. The quality and the serving of the food are the main areas of service that the caterers compete on.
There is one high-end caterer who will compete with Fressen. This caterer, while serving the upper-end market, does not provide its clients with upper-end service. This company is not a strong competitor because of their overpriced service offerings relative to the service provided, and its business has been declining over the last few years. Lastly, one competitor for the high-end market is kosher caterers from New York City. When cost is no object, there are many people that are willing to pay the additional cost of bringing in the caterer from NYC.
The buying habits of consumers of kosher catering is to some degree price sensitive at the middle end of the market. Between two different service providers, the middle class group will choose the service provider with the best services. However, cost is certainly an issue and some of the caterers are not even options because they are priced out of this consumer groups price range. The buying habits for the high end of the market is price insensitive. Choices are made by menu offerings, reputation, and attention to service.
Fressen Catering’s competitive edge is its attention to servicing customers and inventive approach to kosher cuisine. Fressen’s customer attention differentiates them in the world of kosher catering which is dominated by several companies that have plenty of demand. The consequence of market demand is a decreased pressure to accommodate customers. Fressen is approaching the market as if there was significant competition between the different service providers. By making customer satisfaction a priority, over time, local customers will come to appreciate the attention that their needs are given and form a long lasting relationship with Fressen Catering.
Fressen’s other competitive edge is their nouveau cuisine approach to kosher food. Traditionally, kosher food has remained stable and unimaginative for a long time. Most people believe that there are large compromises that must be made when serving kosher. These compromises need not be made however, and Fressen is changing these misperceptions. Just because there are strict rules regarding the types of foods that may be used and the way it must be prepared does not eliminate creativity. Fressen is taking their knowledge of nouveau cuisine and creating inventive, colorful, and delicious kosher alternatives.
Keys to Success
Keys to Success
The key to success is to meet and exceed the customer’s needs in terms of quality of food and excellence of service.
How we will get there will be our business objectives which are:
- To create a service-based company whose primary goal is to exceed customer’s expectations.
- To increase the number of client’s served by 20% per year through superior service.
- To develop a sustainable start-up business.
- To develop enough cash flow to pay all salaries as well as grow the business.