Market Potential and Market Share
With increasing campaigns and education on the need for a healthy living, many people are reverting from fatty high cholesterol food to healthy food. Majority of people around the world prefer to consume vegetable and white meat products to enhance a healthy living. There is increasing need for better living in order to fight off diseases caused by poor living standards. Doctors and nutritionists have been encouraging the change in transformation in individuals’ eating habits. Their message has increasingly yielding fruits.
Market Potential
The increasing need for healthy food has resulted in increased demand for the food. More people troop to the shops and markets in search for fresh food products. In most Canadian markets, the demand exceeds supply, that is, there are more customers than the suppliers can provide. The shortage increases on a daily basis as more individuals revert to healthy eating habits. The fresh food prices are also rising because of the increased demand.
Most of the target customers in emerging markets especially in Canada are the youths and the young adults between the ages of 20-50 years old. This target group makes a vast majority of the urban population. The population stands at approximately 54%-57% of the whole population according to 2011 census. It is expected to grow at a rate of approximately 4% per annum (Edmonston, & Fong, 2011). The high demand for healthy food provides a ready market for the products. A startup restaurant dealing in the healthy food is likely to receive instant customer streams due to the stretched market limits. The availability of ready customers makes the fresh food business a very viable venture for any investors (Kahn, 2007).
Market share
Most
markets lack fresh, healthy food providers as majority of the restaurants major
in quick ready processed food. Many customers who wish to enjoy their favorite
fresh food cannot do so due to lack of providers. The new venture would be free
from stiff competition from existing market players. In most of the urban and
semi-urban markets, a fresh food restaurant is likely to garner approximately
10% of the market share in its first year of operation with an estimated growth
rate of 3% of the total market share depending on the management’s inputs. The
lack of competition provides a conducive environment for growth and development
(Cooper& Nakanishi, 2008). Some markets, the new ventures, are likely to be
the sole traders, thereby enjoy full market monopoly.
References
Cooper, L. G., & Nakanishi, M. (2008).Market-share analysis: Evaluating competitive marketing effectiveness.Boston: Kluwer Academic Publishers.
Edmonston, B., & Fong, E. (2011). The changing Canadian population. Montréal: McGill-Queen’s University Press.
Kahn, K. B. (2006). New product forecasting: An applied approach. Armonk, N.Y: M.E. Sharpe.