This document provides guidance on developing a target market for a new restaurant and catering business. It discusses identifying potential customer groups among businesses and individuals, conducting market research on competitors and prospective customers, choosing a target market based on accessibility, lack of competition and ability to pay, and compiling a customer profile with demographic and psychographic information to guide sales and marketing efforts. The conclusion restates that the goal is to develop a clear target market for the new business.

1. Business Plan Development A Taste of Home Restaurant and Catering Services Owned and Operated by LaShon Holt

2. Target Your Market Overview Business Plan Development Presented by: Starlette Edwards, Management Consultant Star Management Services

3. Outline Identify Potential Customers Conduct Marketing Research Choosing A Target Market Compiling A Customer Profile Resources

4. Identify Potential Customers Two Types of Customer Groups: Business Group Individual Group

5. Catering and Restaurant Services Your Potential Customers will be both business and individuals

6. Conducting Market Research Search the Internet and your local library for studies and data that have been gathered for your particular industry.

7. Conducting Market Research The most important objective of conducting market research is to find out what markets your competitors are currently serving, where market opportunities exist, and which markets will be most profitable for your business.

8. Conducting Market Research Gathering Information: Make a list of competitors Visit their websites Visit each one and gather as much information about the following: Products and services Prices Customer Service Policies Compile your gathering in a table or spreadsheet

9. Conducting Market Research Your Competitors Ask Yourself? What products or services are my competitors notoffering that I could offer profitably? What competitive advantages do I possess that mycompetitors can't offer customers even if they wanted to? What do my competitors offer that I couldimprove on?

10. Conduct Market Research Prospective Customers Conducting surveys Is an easy way of finding your customers: Needs Buying preferences Spending habits

11. Conduct Market Research Give your customers a benefit to get them to complete the questionnaire

12. Conduct Market Research What to Include on Survey: Demographic information — Includes age, sex, nationality (if necessary), etc. Psychographic information — Includes lifestyle data like hobbies, interests, opinions, etc. Geographic information — Includes information about where the subject lives and where he or she purchases products and services. This can be as broad as the country or state in which they live, or as narrow as the county, city and neighborhood. Behavioral information — Includes information about how the subject uses products or services. Benefit information — Includes information about the perceived benefits the subject receives from products and services.

13. Choosing A Target Market Compile the results from your survey to determine which market is best to target. Ensure that the market you choose: Has easy access to your products and services, whether it is by visiting your store, or ordering by phone, fax, email or your Web site Is not flooded with other products and services that are indistinguishable from yours is willing to pay a price for your products and services that allows you a reasonable profit margin

14. Compiling a Customer Profile Just as a mission statement guides the operation of your company, a customer profile will guide your sales effort. Develop an overview of your target customers so that you and all of your employees are clear about whom you are selling to.

15. Compiling a Customer Profile Create the following checklist: Demographic Checklist Psychographic Checklist

16. Customer Profile Typical example of customer profile Company X, a home style restaurant and catering service company, targets Sumter County businesses and individuals between the ages of 1 and 100, with an average household income of greater than $18,000 who enjoy eating away from home or office 50% of their time and planning events at least 12 times a year.

17. Customer Profile You and your employees must learn to think like your customer to anticipate their needs. Track the trends and preferences of your customers by: Staying in contact with them Altering your services accordingly

18. Customer Profile Methods for remaining on top of your customer’s base changing preferences include: Informal face to face discussions In store surveys Direct Mailings Feedback requests on your website and in your restaurant

19. Target Your Market Conclusion