Newburgh Case Study

732 Words3 Pages
There has been steady growth in the food industry in Newburgh due to population growth in the region. The increase in population has led to increasing demand of food items in Newburgh. The population of Newburgh has increased from 28,260 in the year 2000 to 28,866 in the year 2010 (Haugen, 2012). This means that there is a ready market for different food products available in Newburgh and its environs. In the last five years, businesses in hotel industry across New York, where Newburgh is located, have been thriving due to the increasing number of visitors visiting the region. In the year 2014, the city hosted 55.8 million visitors with some residing in or near Newburgh. Newburgh is a perfect location for new and growing food manufacturers since there is access to plentiful water, premium raw materials and world famous colleges. The city is within a two-hour drive to many customers. Being located in New York, which is the world’s biggest food distribution center, Newburgh has become a food market base for people living in this region (Moss, 2013). The city has a growing system of food…show more content…
The pizza shop will have a market share of about 55%. This means that the pizza shop will have about 14, 000 customers from the city center and about 8000 customers from the environs of Newburgh. This calculation is arrived at by considering that the shop will be offering different varieties of food that people require. The shops have a pricing strategy that ensures that people with different purchasing power can find the food product that they can afford. The price of different products will range from $4 to $40. This means that the cheapest food item in Platinum pizza shop is $4 and the most expensive food item is $40. This pricing is relative below what other restaurants are charging for the same food items. This is the perfect market strategy that the shop is
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