Fresh Juice Parlor Sydney Assignment Help
Executive Summary
Sydney in Australia is generally considered as the business and finance hub of the country, over the last few years, a huge growth in the local food industry have been witnessed where not only various restaurants are being introduced in the market but at the same time the trend of dining out is now very common. Due to the busy life schedule people usually prefer to dine out, by themselves or with friends and family.
With the trend of dining out, there’s another trend that’s been witnessed over the last few years. The preference of people towards consuming fresh fruits and vegetable juices is gaining more and more popularity, mainly because of the health related benefits. Considering the NSW state of Australia, it alone accounts for 33% of the national industry and it considered as the largest food processing state of Australia. According to various reports conducted, people are getting more and more concerned about their healthy life style and what they eat, with such growing trend opening up a fresh fruit and vegetable juice parlor would be a great venture.
The suggested name of the business would be Bio Juice, as it clearly indicates the healthier image with its name, the suggested location for the business to start would be in Bankstown shopping center, as that is one of the busiest shopping center in Sydney.
Keeping the nature of business in mind, there is already too much competition in the market that one cannot ignored and for this specific reason Bio Juice will highlight its green vegetable juices that are getting more and more popularity.
Statistics of Sydney
Among all the cities of Australia, Sydney is generally considered as the financial and business services hub of Australia; in 2011 the total labor force for the metropolitan Sydney was 1.87 million. Among the most common occupation for the people living in Sydney were professionals with 27.2% of the range of occupation. In Sydney the total population of 4,391,674 comprises of 49.2% males and 50.8% females.
Other than Australians, the 5 most common countries of birth present in Australia were England with 3.5% of the population, China with 3.4%, India with 2% New Zealand with 1.9% and, Vietnam with 1.6%. This percentage clearly highlight the mix culture of people living together.
Source: www.cityofsydney.nsw.gov.au
Detailed description of the business
The market volume of Sydney is huge, the fast food industry is expected to increase at a compound annual growth rate of nearly 3.5% in the next 5 years, that clearly indicates the portential of getting in to this industry. Alone the fast service restaurant sector controlled almost 60% of the whole market. The overall food sector of Australia is a vital component of the economy that accounts for 46% of all retailing turnover. Considering the NSW state of Australia, it alone accounts for 33% of the national industry and it considered as the largest food processing state of Australia.
On the other hand, people are getting more and more concern about their health, their diet plans, the overall consumption of fresh foods and fresh fruit juices is just on its peak. In today’s fast paced, there are many vegetables, fruits, grains and other herbs that can provide bodies with balanced nutrition, that one need. Providing such nutritions to people on the daily basis, specially during the times they need it the most, is what Bio Juice would be targeting at (1sthealthsource).
Considering the new growing trend of consuming more fresh foods and also the target market of NSW, opening up a fruit juice parlor that will offer various healthy drinks for all kinds of people will be a huge success Source: www.primeskills.com.au. The overall consumption of fruits and vegetables has grown over the last few years for various reasons, Research into neutraceuticals and other functional food has highlighted the health benefits and compounds found in fruits and vegetables, and for this very reason people have become more concerned about staying healthy and eating right Ohlemeier, D. (2003). The juice parlor will offer a range of juices, of both fruits and vegetables.
Reason for choosing this business
It has been observed that Fruit juice industry is not very old. In reality, fruit juices companies have started the operations in 1971 by avoiding alcoholic drinks. The intention of people has changed towards health and taste instead of taking alcoholic drinks, which are a loss for health and money. One of the reason for the surging interest in veggie-and-fruit juices is twofold: They are healthy and convenient. Juice is a quick way of getting a lot of nutrition and at the same time for kids or adults who eat like finicky kids, juice is a way to drink a vegetable they might never eat on a plate (Fernau. K, 2013).
Another important reason for choosing this nature of business is mainly to promote the healthy life style among the residents of Sydney, according to a report published by World Health Organization, among the top 10 factors contributing to attributable mortality, is due to the low intake of fruits and vegetables (World Health Report, 2002).
One of the main reasons to choose this nature of business is the way how we do it and what we will do with wonderful, natural raw materials that makes us different. Bio Juice will turn the juiciest and freshiest exotic fruits and vegetables into the best fruit salads, juices, smoothies and other meals based on fruits and vegetables.
Majority of the people are very much health conscious now a days and rather than having junk foods they prefer to have something healthy and not too fattening. People living in Sydney and specially those who are working in the CBD, are always on the go, it can be difficult to supply body with all the nourishment they need, to cater this market Bio Juice will be introduced in the market. Over the last few years, the health and nutrition movement has flourished, and has been able to influence the Australian consumption patterns, prompting the overall development of healthy foods catering to increasingly health-consious consumers (ibisworld, 2011).
In 2011-12, 48.3% of Australians aged 18 years and over reported that they usually met the guideline for daily fruit intake, while 8.3% met the guideline for daily vegetable intake (www.abs.gov.au).
Target Market
Australians was not familiar with the benefits of fruits juices before 1970 as much as they had to be. In 1970s, the quantity of bottling plants was only 450 from the different range. The soft drinks to fruits juices were manufactured in the highly technological plants of Australia (unknown, 2004).
The target market would be the people living and working in the CBD, mostly health conscious people. According to Bis Sharpnel’s, who is market analyst, in his report Fast Food in Australia revealed that over the last few decades the fast food market in Australia has experienced a vigorous growth. Majority of the people, who would never touch a salad will drink the equivalent of one because it tastes different and fits into their busy lifestyle Fernau. K, (2013).
The name of Your Chosen Business
Bio Juice – The reason for choosing Bio Juice is mainly to highlight the key aspect of our product, as our juices will not only be classified as fresh fruit juices but they will be highlighted as 100% organic and healthy juices. With the name Bio Juice it will have an impact of fresh, healthy juice combination on the mindset of the target market.
Location of Business
The location decided to launch first store of Bio Juice would be the Centro Bankstown, Centro Bankstown is considered as one of the oldest fully enclosed shopping centers, that was opened in 1966, and at present its overall size is 85,500 square metres in size with over 16 million visitors per annum.
http://www.centrobankstown.com.au
Competitors
There are various types of fruit juices available by fruit juice companies and other parlors, some of them are apple, apple cider, cherry, cranberry, cranberry blends, fruit punch etc. In the fruit juices, the most common are mix fruit juices like fruit punches and mixed blends are common. The juice flavors such as tropical juice flavors are all the time more popular internationally (Cort, 2007).
At Bio Juice, our main juice will be the combination of green vegetables with other fruits, which will be named as Bio Green Smoothie. One of the growing trends is in the consumption of green smoothie, and at present not many other juice bars are offering this option to their customers. Though there are various juice bars throughout Sydney, but they only have a limited menu mostly based on fresh fruit juices.
One of the major competitor that Bio Juice will face would be Boost Juice, though Boost juice have a huge range of juices and they all can be purchased in 3 different sizes, but for Bio Juice its USP (unique selling proposition would be the combination of both Fruits and vegetable juices). The fruit juice industry in Sydney is very strong in local market. The quantity of customers has become very high in the fruit juice industry most of them asking for low calories drink Porter, M.E. (1998). There have been some mergers done in fruit juice industry that have decreased the competition within the industry.
The strongest competitor for any fruit juice company is Berri limited. The company has given tough time to other companies because of its designed marketing campaigns, low price, high quality and easy availability. The overall earnings and sales revenue is 51% out of the whole industry. It is therefore the market leader in the specific industry (eCHo, 2007).
References:
- Australian Food Service Industry Statistics, prime skills, viewed on 4rd May, 2013, <http://www.primeskills.com.au/blog/statistics/>
- City of Sydney, ‘Sydney as a Metropolitan City’, viewed on 4th May 2013 <http://www.cityofsydney.nsw.gov.au/learn/about-sydney/metropolitan-sydney>
- (2007, 9 18). Junior Australia Market Reserch . Retrieved 9 10, 2011, from zerggalaxy.blogspot.com: http://zerggalaxy.blogspot.com/2007/09/40-competitive-analysis.html
- Cort, M.(2007) Are you drinking up this summer? Modern Athlete & Coach. Vol 45(1), pp. 15-16
- Porter, M.E. (1998)Competitive Advantage, Free Press, New York
- Centro Bankstown, Shopping Centre
- <http://www.centrobankstown.com.au/information.php?tscid=MzEwODc=&ciid=144>
- IBISWorld, 2011, ‘Industry Insight’, viewed on 4th May, 2013 <http://www.ibisworld.com.au/newsletter/issues/au/11sep/news.aspx>
- Health Conscious Foods, viewed on 2nd May 2013 <http://1sthealthsource.com/nutrition/healthy-foods/>
- Ohlemeier, D. (2003, May 12). Fresh-cut market grows as fast as population. The Packer. Lenexa, Kansas, USA: Vance Publishing Corp.
- K, 2013 ‘Juicing fruits and vegetables is a healthy, new trend’, viewed on 4th May 2013 < http://www.azcentral.com/healthyliving/articles/20130222juicing-fruits-vegetables-healthy-trend.html>
