MARKET ANALYSIS

Industry Description:
The food industry is a complex, global network of diverse businesses that supplies most
of the food consumed by the world’s population. This industry includes the business of cake or
sweet shops. SWEET JULIET venture belongs to the food industry.
Food industry faces a lot of challenges due to its large size or complex scope. Food
trends do change over time, and businesses comply to these trends in order to attract more
customers. However, as food is a necessity, past trends in food are still in line. It is just that
those with the new trends are more attractive and interesting. Growth rate is not constant due
to the mentioned changes over time which are additionally influenced by political, economic,
social and technological factors. Studies show that there are lots of challenges for sweets in the
industry. These include: health concerns, food safety and quality, traceability, supply chain
flexibility, avoiding recalls, production line performance, packaging materials and quality
controls.
However, assurance is met that SWEET JULIET is a venture that complies and adjusts to
the changes and challenges caused by the factors over time. It will prioritize the benefits for
consumers and demonstrate the appropriate measures to continue the run of the business.
When managed well through a modernly efficient and effective strategies, it would develop
into a successful business in the future.
Target Market:
When do people purchase sweets? People purchase cakes, cookies, pies, among others
when there is an occasion, an important date or even just an ordinary day to someone to satisfy
one’s cravings. These people who consume sweets include children, teenagers, adults and a
small part of elderlies since sweets are crucial for their health.
Demographic (Age) Information on the Potential Target Market
AGE BRACKETS:
•Children (3-12 y/o) – 50%
•Teenagers (13-19 y/o) – 25%
•Adults (20-59 y/o) – 15%
•Elderlies (60 y/o and up) – 10%
SWEET JULIET's chosen target market is shown through the pie chart above with the
aforementioned age brackets. Children have the highest percentage as potential consumers as
they highly fancy sweet food products. Teenagers come second in line as they go with the flow
of social food trends. Adults are considered as the average consumers due to their age bracket.
Lastly, elderlies likely to consume less sweets as it can significantly affect their health.

Competitive Analysis:
Competition between food shops is quite strong. As there are variety of choices for
food, consumers' decision on what to purchase and where to purchase is influenced by
personal factors such as liking and cravings, and the attractive presentation of food in each
shop. For the case of SWEET JULIET venture, there’s a possibility that it would face a tough
competition as well as a relaxed one. When it is to be built in a community with established
sweet shops, there would be a competitive atmosphere. However, when there isn’t, the
venture should still exhibit best strategies to attract more consumers as shops selling different
variety of food can be more appealing to the public.
 The bar graph above shows the analysis of how strong the competition would be
between SWEET JULIET venture and similar shops, and between the same venture and shops
that sell different variety of food, basically different genre to sweets.
There would be a 60% strong competition with similar shops; and 40% strong competition with
dissimilar food stores.
SWEET JULIET sweets shop possesses professional strengths such as good quality
products made by skilled workers, light and relaxing ambience and creative decoration of the
store, sells extra materials for celebration, and provides delivery services. However, possible
weaknesses and limitations of the shop would exist during a specific period with no much
occasions or during a changing lifestyle of people in the community. The weather season is also
a factor. With these strengths and limitations, appropriate management is needed in order to
prevent significant loss and gain advantages for the business. Continuous pitching for product
development, social approach of service and regular examination of internal and external
factors can contribute significantly to the business’ growth amidst competition and unexpected
challenges.

Summary
SWEET JULIET venture belongs to a significantly complex food industry which faces
numerous challenges due to its size. These challenges are caused by internal and external
changes which are influenced by political, economical, social and technological factors.
Specific percentage of children, teenagers, adults and elderlies make up the overall
target market of the venture. Analysis is based on personal factors such as liking and cravings,
economic factors like income and the state of health.
Since food industry is very complex, the competition is strong and tough. For a sweets
shop like SWEET JULIET, the competition should be analyzed in two aspects, competition with
similar shops, and with differentiated shops. There’s a tougher and stronger competition with
similar shops since it offers the same variety of products. The competition with differentiated
ones shouldn’t be disregarded as several factors make it more appealing to consumers.