Pizzeria del Causamali
Market Analysis Summary
Our primary target market is people who desire a comfortable, family-oriented environment for dine-in pizza. Our secondary target market also desires a delivery service for pizza, or a take-out approach. There is overlap of these segments.
Deauville and its surrounding communities are a growing middle-class area with nearly 14,000 residents. A majority of these residents are families of four or more. The boom in the area is primarily in response to an exodus of families moving out of the over-populated areas and into a more rural setting.
According to a Growth Plan Deauville conducted in 2001, population within Deauville is expected to increase. However, the number of persons per household is expected to decline, meaning the need for additional housing in Deauville will continue to grow. From the same plan, population is listed as being evenly distributed by age groupings, with approximately 33% of the population being minors. Another 40% are less than 54 years of age, indicating a major concentration of the Deauville population being families. The report forecasts there being nearly 1,900 households in the Deauville by 2005. This is driving the need for more quality, family-oriented restaurants.
Additionally, Deauville residents frequently visit the building in which Pizzeria del Causamali is located. Tanning and video rental businesses are adjacent to the restaurant, so we are providing a new convenience for families to select a movie and pick up a pizza.
With the expected continued growth in the area, estimated at 7% annually, opportunities to serve Deauville and its surrounding communities will increase. The company will sell predominantly to individuals, but it will also accept some catering jobs to individual parties, schools, and company functions in the Deauville area.
4.1 Market Segmentation
Those residents of neighboring communities of Deauville, including Doughbuoy, d’Ohtown, and Doe Valley are included in the Market Segmentation. Only those residents of Deauville are included in the delivery, as delivery radius is limited to a 5-mile radius in the city of Deauville. An estimated 53% of Deauville residents live within the Sanitary District, or within this 5-mile radius.
|Year 1||Year 2||Year 3||Year 4||Year 5|
|Dine-In or Take-Out||7%||13,860||14,830||15,868||16,979||18,168||7.00%|
4.2 Target Market Segment Strategy
Including Deauville and its surrounding areas, no pizza establishments exist. In Deauville one to two restaurants serve pizza, but not as a primary menu item. These pizza outlets are in taverns which are not conducive to family-type atmosphere. No eating establishments in the Deauville area provide home-delivery service.
4.3 Service Business Analysis
Other family-oriented restaurants in the area include: Subway(R), What’s Cookin’ diner, and Colonial House supper club. Subway serves sandwiches, wraps, and salads, none of which are direct competition to the pizza establishment. The diner is open until 2 p.m. each day and focuses on the breakfast crowd, with a limited sandwich availability for lunch. The supper club has a Chicken and Pizza buffet once a week for approximately $6; the pizza served as part of the buffet are frozen pizzas.
Other restaurants in Deauville are taverns and are not conducive to family activities. One of the bars in Deauville serves a homemade pizza.
In conversations with an independent pizza operator in Lakeshore Haven, an hour’s drive away, he indicated pizza sales in his community are thriving despite competition from 4 other pizza establishments, including Pizza Hut(R). While exact figures were not shared, he indicated a high level of penetration into the pizza market in his area with profitable margins. He also provided suggestions and tips to minimize costs, and components of his restaurant he would do differently, including payroll handling, vendors, and layout.
4.3.1 Competition and Buying Patterns
There is minimal competition for pizza in the Deauville area, besides the bar establishments previously mentioned. The closest locales for pizza to the Deauville area are Bolingbrooke, Avro, and de Havilland. None of these competing pizza locations deliver to the Deauville area. Additionally, Pizzeria del Causamali would be the only family-oriented, non-smoking restaurant in Deauville.