Valleyview Case Study

Market Size

B: Valleyview is an up-market area with a population of 20,000, while Hilltop is a slightly smaller area on the main highway, which is situated next to Valleyview. A large proportion of the population in these areas is young families or established families with young children. The market for take-away restaurants, including for pizzas, is strong and quite competitive.

Market Potential

C: Valleyview is a growing area with a population of young families which is expanding as new housing developments are being completed. Apart from growth through population increases, there is a potential for widening the average age of the customers to obtain more customers in the 30+ age group. There is another potential for growth if Pepe's widen the home delivery area to include more parts of Hilltop.

Market Structure

D: The market is composed of personal take-away customers, home delivery customers and dine-in customers. Pepe's concentrates on the personal take-away customers and home deliveries, as there is no formal dine-in facility, only seating for 10 patrons.

Market Trends

E: Despite the growing population, last year saw a drop in sales which it is hoped will not be repeated this year. Pizzas and pastas are acceptable take-away food, although there is a market perception that the large amount of cheese and fat in pizza make it an unhealthy food option, and that some pizzas taste like cardboard. There has been talk in Situation analysis

situation analysis the stage in a marketing research study that involves getting acquainted with the organisation and its problems by means of library research and interviewing the organisation's personnel

“Before presenting the detailed plan of objectives, activities, etc., the reader must know what has happened so far and be aware of the current position or situation of the organisation or product. This is done through the use of a situation analysis.

A situation analysis briefly reviews and analyses the current market, the marketing environment, the company, the customers and the competitors -all of which can influence how the firm will undertake its marketing plan. The analysis finishes with writing a SWOT (Strengths, Weaknesses, Opportunities and Threats) analysis.

It is very hard to plan future marketing activities effectively if you have no knowledge of such things as: what the market for your product is like; what factors can affect the marketing of your product; what your company, competitors and customers are like; and, what has worked successfully in the past and what has failed.

Some of these questions may be hard to answer. It is therefore extremely important to do your research before trying to answer these questions. Secondary data on your market can be found in government departments