Prices at Health Food Store can be also a weakness of that kind of business. Many customers avoid shopping at health food stores because of the price. Some customers, the so-called Rejectors, do not believe in the concept of a healthy store or organic products and are not willing to pay more for products from the health store. The use of fair prices is therefore crucial for the business, as prices for health food products are generally more expensive from the usual products available in the supermarket.
The size of the store will be a big issue. The location in the center of Kinsale is crucial for business, but there are very few properties that would have appropriate size. Partial solution may be to locate the office and treatment room on
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Store can sell wide range of dry grocery, nutrition & vitamins, and natural cosmetics by internet. New distribution channel would be great opportunity to gain new customers. This allows them to increase the income of the store, which will no longer be limited to the local market.
Social media are a good tool for the promotion of the local market and beyond. In addition social media help to promote new products and ideas, and creating interaction with customers. Thanks to this new business can become more visible, especially in the tourist town like Kinsale.
Move customer service to drive sales is a great opportunity to grow sales. Customer service is the key to attract a new customer to the health food store. Providing information about the product and a healthy lifestyle will help to increase the attractiveness of the store customers.
Establishment of artisan bakery on site as a part of Health Store is a great opportunity for the development of the business. On the local market, there is a very high demand for artisan bread and pastry baked on site. In addition, tourists ask the most about local products.
Supporting local suppliers help to build a positive image of the store on the local market. Supporting local producers and suppliers create good relationships and developing the local
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It is a main reason for home budget shrinkage. Increase of taxes greatly stresses the customers’ home budget.
Changes in customer tastes are a serious treat for new health store. Customers are usually willing to pay more for a high quality product, but the recession of recent years has caused this to change and they now begin to plan household budgets more carefully and pay attention to money spent. Customers are often looking for cheaper alternatives for premium products. Health food store sells high quality products, but it is important to make the price competitive and not too high.
2.7 PEST Analysis
According to Philip Kotler (Kotler et al., 2008) PEST analysis systematises an examination of the Political, Economic, Social and Technological components of the external environment (macroenvironment). The PEST analysis is a useful tool for understanding market growth or decline, and as such the position, potential and direction for a business. A PEST analysis is a business measurement tool. It is very important for any organisation to consider general environment. “Essence of Health” PEST analysis:
POLITICAL FACTORS
ECONOMIC
In your industry, an entry barrier is to provide customers with high quality, fresh, homemade products. With the surge of the health craze, more people are likely to go to a Café type establishment, than go to a fast food restaurant. Health-conscious customers have come to know and expect this from any café/restaurant trying to enter this market.
However, because of its demographic it was losing a high customer base because of its prices. The text book Chapter 10 emphasized the importance of pricing and creating profit. The investor Marcus Lemonis showed the owners how to evaluate demand and the price sensitivity of their products. He introduce product that could be brought in with lower price points that would compete with their competitor and still crate the high-end prestige the company wish to create. Taking advantage of the income statues of the company’s customer with in their demographic. One major problem the company had was the price point of a bag of dog food was around $100 per bag that was a high price for the consumers within the area. By bring in a brand that had high quality and prestige at a price point of $20 allowed for a greater customer
PEST (political, economic, socio-cultural and technological) is a framework of macro environment factors used in the environment scanning component to analyze the impact of these factors on an industry. Canada post is under pressure from all the above forces and ultimately these have direct influence on organization ability to achieve its goals and their strategy
Place: They opened discount factory outlet stores in rural areas and retail stores in urban shopping center. By selling different kind of product in different places help them to meet the different need of the customers. On the other hand, they also sell their product online, where customer can purchase their product at anywhere and anytime. All this make them be able to maximize their gain.
Parker-Pope, Tara. “A High Price for Healthy Food”. The New York Times. 05, December. 2007. http://well.blogs.nytimes.com/2007/12/05/a-high-price-for-healthy-food/
Overall, Whole Foods Market is financially strong even though gross margins may fall in the future. According to Bradley Seth McNew, Whole Foods Market is in the best cash position of any of its competitors. With almost zero debt, Whole Foods' operating cash flow could cover its long-term debt more than 246 times. Compare that to just 0.62 times for Sprouts Farmers Market, which has over $400 million in debt with only $180 million in operating cash flow (McNew, 2015).
Whether it be junk food at a low price from walmart or a low price meal from a fast food restaurant, people seem to still buy the food because it is more affordable.As weird as it ay be, healthi...
The legal form of this business, therefore, would be a franchise. A franchise was chosen in lieu of the formation of a new brand as Yo-Good has successfully established a name in the Middle Eastern region, leading us to believe that such success could be replicated in the frozen-yogurt niche market found in Nova Scotia. We also believe that it would be the easiest means of ensuring that a healthy product is being sold to our consumers, and that the low cost of entry would provide us with reasonable revenue, allowing us to continue improving the healthy lifestyles of Haligonians.
Generally, most healthy foods are more expensive than less healthy food. “Poor people are easy to identify because so many are obese. (Peck)” said by Anna Soubry, the Tory public health minister. The food prices have a significant impact on people who want to balance good nutrition. According to Geographic Differences in the Relative Price of Healthy Foods, the price of whole grains is 23 percent higher than that of refined grains in San Francisco, while 60 present higher in Pennsylvania and New York (Todd, Leibtag and Penberthy). Also, the price of fresh green vegetables is 20 to 80 percent higher than that of starchy vegetables in all markets across the United States (Todd, Leibtag and Penberthy). Due to the higher price of healthy food, a lot of people choose to eat unhealthy food, such as McDonald’s, especially for people who don’t want to...
The high price that consumers pay also contributes to the sustainable development of the society. Some Canadians can run to several shops and compare prices to buy their daily necessities, but people would like to spend more money buying beef and poultry at Whole Foods Market. Almost all urban Canadians are aware that there are hormone-free, antibiotics-free, and in feeding process meats available at Whole Foods Market, since they try and protect "animal welfare". Some middle-class consumers think that eating such meat is much more humane, not considering the more expensive cost. In summary, a sensitive nerve point of the Canadian middle-class people is hit all of a sudden by Whole Foods Market due to its advocate of environmental protection, healthy and green food as well as high quality life. Customers who frequently visit Whole Foods Markets have a religious-like devotion. There are already two branches in Toronto, respectively ‘Yonge and Sheppard’ in 4771 Yonge Street Toronto and ‘Yorkville’ in 87 Avenue Rd Toronto. Johnston (2011) had conducted ‘in-depth interviews on food shoppers at Whole Foods Market’ to investigate their constitution, shopping concepts and habits. Consumer shopping at Whole Foods Market can obtain idea of ‘shopping for change’. In a Whole Foods Market location in downtown Toronto, Johnston (2011) found that consumers who often go to Whole Foods Market are wealthy as well as educated, especially white. And their household incomes are generally much higher than the average. This consumer composition is a reflection of the population and environment of this affluent downtown neighbourhood, as well as the primary group of individuals who have increasing requirements for natural and organic
Customer satisfaction is the overriding factor for the successful operation. Sales of the supermarket can grow when it makes its customers satisfied with the goods or services by best policy to fit customers’ requirement. So, it can be told that customer satisfaction is followed by customer revisiting or repurchasing. They can also tell their acquaintances about products or services as good. Customer satisfaction and sales might be linked directly, companies have to check the factors periodically such as quality, schedule, layout, inventory and so on to lift customer satisfaction because even small factors that employees didn’t recognize can affect consumer satisfaction enormously.
With further consumer behavior studies, McDonald’s marketers can understand the factors that control the customer 's sensitivity to changes in price. McDonald’s cost of food is the most important element of their business. If the price of the restaurants meals were to increase then the price sensitive customers would no longer gravitate to purchase McDonalds’ products. The restaurants inexpensive prices allow the company to beat out the competition. In the year 2013, a Big Mac would cost $3.60, whereas, a Baconator from Wendy’s would be $6.29 (Fast Food Menu Prices 2013). With the small price, there is a concern about how much quality and care goes into preparing McDonald’s food when compared to other restaurants; however, McDonalds’ remains beloved by the fast food
A change in consumers’ tastes – the food in this market may become unappealing to consumers as obesity and cardiovascular diseases rise in New Zealand. This would put people off as quick service foods are regarded as unhealthy.
They provide a safe environment for shoppers as they have friendly and visible security. Many customers, who demand safety, feel secure and at ease whilst doing their shopping.
Social media start as a very personal tool for users to communicate with their friends and closely related people. Soon after, business area have also take the advantage of this innovative way of exchanging information.