Propose to open next store: Stearns county:
Stearns county ‘s Demographics
Young Population:
Our company preliminary target customer is the new generation, or young age group, one of the most interesting criteria to select this county is because it has high proportion of young population.
Stearns county’s population are in the age range of 10-19 is 15% and 20-29 is 16% ,and these two group are growing very rapidly , according to ‘Gale’ database, the age group between 25-24 will grow 7.1% from Y2021 to Y2026.
Increasing of the Average income
We are looking for customers who afford for price premium for a heather and better food quality” .Therefore the community’s income must higher than the national’s median but more important it should show an increasing trend for new future years which can be seen in Stearns’ case.
Though the average household income of Stearns is just slightly above the national average; however, we can see that the portion of the population who high household-incoming is increasing very fast. And it bring up the average income per Capita incoming is increasing +4.9% and Median household incoming is increase 4.0%
Growing number of housing unit.
Learning from other franchises. The selection of new and expanding will grantee the success of the project. During the last ten year ,the growth of the housing using in Stearns is 23.% and it will continue growing n the next 5years with a reasonable growth rate of 3.6%
Lifestyle
Personas are lifestyle categories created by Experian Mosaic to describe consumers in communities across America.
The three personas summarized below were among those identified in Stearns County, MN which together represent more than 60% of its residents.
Reminding :Our Target Audience.
We are considering ourselves as premium fast casual with great service and we are clearly determining that primary target audience is the person who well educated , has active lifestyle, however, they are more conservative and have highly concerned about their health and well being .
Stearns’s persona :Single and Starter (29.6% )
Single and Starters are aspiration young singles who, recently graduated from collect or university and just started the career, having active leisure live. and most of them live in small apartment and spend a lot of time outside their home. They like to wear latest collection from the and attached to the brands and attached to the tech-equipment. This groups of customer are the biggest portions, contributes nearly to one-third of total population. The research show that “they like food and invest to the healthy food” to balance their work-life proven that they are perfectly to be our Primary our target customers.
Stearns’s persona :Family Union ,(28.4 %)
Family Union is the people who live in a large family size most of them have kids or stay with their parents, they earn reasonably household income thanks to multiple worker in a household. They like fresh-air and fresh food. Most importantly, the people are more concerned about family and their kid .
Family Union are vibrant and active, engaging in plenty of sports with their families most important attribute that links to our business is that when Family Union go out to eat, they’re more likely to go to a local eatery or a fast food chain.. hence, this group can consider as our secondary target customers.
Stearns’s persona Booming with Confidence, 11.6%
Married couples in their peak earning years, approaching retirement. Many of the households have dual incomes and few children. allowing them to afford fashionable homes in city and suburban neighborhoods. As consumers, Booming with Confidence have conservative tastes. They favors education, environmental, and health organizations, Booming with Confidence tend to have sophisticated tastes with their well-appointed homes, solid incomes and diversified portfolios, they can afford to live the good life. This group can consider as supportive target customer because they can visit our outlets time-to-time to when you look for difference kitchen fast-food options.
The three main persona represent more than half of Steans population , even though there are diversity and differences of their lifestyle and behaviors but can see that they are like healthy food, and they afford to pay more for a better service which ultimately great matches to our target customers.
Stearns’ Attitude toward fast-food despite of healthy concerns.
Our research found some interest attributes of Stearns county toward health ,food and household consumption behaviors. We find that those are relevant and affirm our business decision to move with this county
Highly fast-food lifestyle :
The Stearns people like having fast food , from “Fast food fits to my lifestyle” index show 9pt of the average , because they are usually don’t have much time to prepare/eat the at home and most importantly they don’t have negative view about the fast-food as they say that “I think fast food is All junk” only 97 index.
My lifestyle makes me too busy to take care myself.
You already see that the biggest persona of this county is Single, and Starter and they are busy with their active leisure lifestyle, they are saying that “Too Busy To Take Care Of Myself As I Should” with index 108 , and “I don’t have time to prepare/eat healthy food” with index 3pt above the average .
High conscious about health
Although the people are busy and attached with fast-food lifestyle , however they are aware that they current fast food consumption style is not good for their heath ( I treat Myself To food not good for me , index 6pt above average ) and we also find an interesting insight that they actually looking for a healthier food as option , they also say that I like trend toward healthier fast food.
Problem defined but no solution yet.
We can see that , Stearns people who has active lifestyle , are already consume fast-food, even through. They actually worried about their health a aware that the fast food is not always good for themselves, however , seems that they don’t’ have a many solutions at this moment.
Competitors
From our research through Google MAP. And Yelp . There are approximate forty fast food restaurants in the county. Most of the fast food restaurant has only single branches except Burger King and PJ’s which has two outlets. Pizza is the most popular restaurant in this county, and the second most popular restaurant is burger and sandwiches. Both pizza and burgers restaurant represent half of total number of fast-food restaurant.
There are around twenty Heathy fast-food restaurant in the county, but most of them are budget type which target difference audience with us. Interestingly, we found that most of them just open the stores in recent years, We can our direct one store of our competitor like Chick-fil-A® restaurant where they located in xx Street .
A lot of restaurant cluster around two main street which are W-Division street and xx
From the study, it draw to conclusions that reveal opportunity of the county : first the heaty fast-food market already establish but most of them just newly open, it imply that there is raising demand of healthy fast-food. Second there only one direct competitors selling healthy upscale Chicken fast foods which we can be less concerns about the competitors’ reaction .
Why not Oaklands
Although Oakland MI is much larger county in the population almost 8time vs Stearns, but the county population is not growing . Gale BusinessDemoNow forecasts that the population only growth only 1.1% from year 2021 to year2026.
Most importantly, It contain a lot more proportion of higher age group that above 40 years-old and it show extremely fast growing of elderly age group (between 75 to 84 ) at the rate of above 25% in 5 years time . The key persona of this county are this PowerElite who is very wealthy , enjoy relaxing their life in the a luxury house and Blooming with confidence who is not very exactly match to our target audience.
From the Simon Lifestyle Demographics statement survey, we can see that they are much more health conscious and trend toward healthier food person they are carefully in what they are eating , they say that “ Fast food is all junk “(index 105 ) and they don’t have problem with the budget (Eating fast food help me to stay in the budget ,index only 90%)
Another element that we consider not choosing this county , because they people in Oakland enjoy home cooking and they often eat pre-cooked meal, and we can see that their dinning out expenditure is only 1,557.76 USD per annuum which is much lower proportion when compared to their household income of 81k USD.
Next step
1. Create project Milestone
Our study provide recommendation through the online study only , and to move the project to the execution phase. We need to start will detail plan of project milestone,
The project milestone will provide the frame of To-do list breaking to sub-task and who will be the person-in chart and when each sub-task will be finish. It also will provide the full context which including contingency plan
The preliminary elements in the milestone should consist of forming project teams which should be cross-functional , regular project review , field checking and feasibility analysis , operational set up of the store .
2.Field visit to explore the physical store and competitors
We provide two options to set up our outlets One on xx street and another on xx street. Since we are working on retail business , selecting right location is most crucial which our retail team has experience and expertise. We will need to investigate the traffics condition and condition of the building . Another investigation to check is about the possible or parking lot and driving-through option.
We also should visit our competitor’s location both direct and indirect one because normally the competitors may change or localize their business strategy upon the locations .This also will give us a sense of how much revenues they are making
3.Feasibility analysis .
We will need to simulate the business case from revenue and expense. Especially the rental fee as a criteria to make the project feasible. Normally the rental fee is depending on the location and building condition and we should from the best practice store that the ratio fee should limit at some percentage vs the revenue. The project team should conduct another research on the rental cost of Steans city or we can ask the market price list from the agency.
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