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Peru Donut Market Feasibility Study

The document presents information about a project to create a donut production and marketing company called Thani Donuts in Peru. The theoretical framework of the project is described, including its mission, vision and objectives. It also includes a SWOT analysis and a description of the main competitors in the donut market such as Dunkin' Donuts and Winchell's Donut House.
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0% found this document useful (0 votes)
38 views14 pages

Peru Donut Market Feasibility Study

The document presents information about a project to create a donut production and marketing company called Thani Donuts in Peru. The theoretical framework of the project is described, including its mission, vision and objectives. It also includes a SWOT analysis and a description of the main competitors in the donut market such as Dunkin' Donuts and Winchell's Donut House.
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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I.

INTORDUCTION
Currently in Peru we can see a growing interest in the food industry, in the sense
that more and more food chains are entering the market, the food products of all
kinds that they offer to the public and the number of spaces dedicated to the
consumption of food on the street.
Part of the food market is made up of snack-type foods. Currently the donut market.
Or donuts, as it is also known, is made up of small artisanal products, which are
believed to be unable to supply the total demand for this product. To this end, the
opportunity has been identified to carry out a study that determines the viability of a
project for a company that produces and markets donuts in an industrialized manner
and is capable of meeting large volumes of demand.
Within this classification, donuts are originally a North American product but have
quickly managed to expand and penetrate markets around the world; Peru is no
exception.
Because a large part of the population of Peru is concentrated in the Capital, this
being a good starting point for a company with a view to future expansion, the
purpose of this work will be to evaluate the feasibility of the project to create a
company that produces and markets donuts or donuts in said region, for this
purpose the results obtained are considered and explained below.

The objective is to carry out market research (competitions, market segments),


brand design (logo, slogan), promotion plan (messages, type of advertising).

II. THEORETICAL FRAMEWORK

II.1. THANI DONUT'S


II.1.1. GENERAL CONCEPT
THANI DONUT'S, will be the name of the company that will carry out the
project of creating a factory that produces and markets chocolate-dipped donuts,
dragees, and chocolate dragees in the Junín and Tarma region if feasible.

This company wants in a way to rethink the Donuts market that was once
occupied by companies from abroad. Its main idea is to become known as a
strong brand in all areas concerning donuts, consolidated in the shortest possible
time; That when you hear about it, what people think of are excellent donuts
with quality and freshness.

In order to carry out this difficult task, THANNY DONUT'S will rely on four
fundamental pillars to market itself: quality and freshness of its products, the
best advertising, and the best and most advanced production technology.

It should be noted that the field of action of this company only focuses on
donuts, not meaning that in the future it cannot be experimented with other
types of flavors, figures or products; Everything will depend on what the client
wants.

A. GENERAL OBJECTIVE

THANI DONUT'S's main objective is to offer all consumers the best


products on the donut market, always maintaining the best quality and
freshness possible at the fairest prices.

B. SPECIFIC OBJECTIVES
 Analyze the market of our product to offer.
 Analyze the offer for said product.
 Estimate unsatisfied demand.
 Evaluate the Supply – Demand balance.
 Create marketing strategies.
 Define the optimal location of the product.
 Define production process and identify requirements.
 Estimate the investment and evaluate the financing sources.
 Estimate the budget, expenses and income.
 Evaluate the economic viability of the project.
C. JUSTIFICATION
 Obtain profits (profits)
 Generate sources of work.
 Demonstrate that the project generates profitability for us as investors,
reduce poverty.
 Support the economic growth of the Region and the country.
 Favor the environment.
 Provide a quality service and product.

D. MISSION

THANI DONUT'S's mission is to produce to supply all those places that


want donuts of excellent quality and freshness.

We distinguish ourselves from our competition by offering a product of the


highest quality and freshness, with the aim of satisfying the needs and
expectations of our customers, supported by the reliability and quality of
our suppliers and our distributors.

E. VISION

THANI DONUT'S aspires to be an essential part of any people's free time,


offering a product of the highest quality and freshness at a very good price,
in addition to leading and being the most recognized company in the donut
market.

II.2. MARKET RESEARCH


The donut market has a strong attraction for companies that want to enter it, for Donas
it has represented a strong attraction that they want to capitalize on for a very specific
market segment, as opposed to a mass market. It must be considered that Donuts are not
everything in the world of Donuts, there are others, in fact the company's market is not
donuts, it is customer satisfaction through a product, a unique experience when they
visit the store , is customer satisfaction through a product, a unique experience when
they visit the store, which is already different from the competition. In it, customers can
see how the donuts are made, served fresh and hot. The neon sign that announces that
the donuts are ready is just part of this satisfaction strategy.
A. SEGMENTS
Within the THANI Donuts market we can identify five segments, each of them with
similar traits to each other, which is the taste for Donuts:
1. Social: they are the customers who visit the store not necessarily for the
product, they are attracted by the atmosphere, they see it as a place to relax,
spend a while and meet with friends, it is a group that can be easily attracted by
other substitute products such as are the coffee shops and salons.
2. Craving: those who occasionally have a craving. They are not a regular
customer, but they may visit the store occasionally, they are focused on the
product to satisfy their craving and it is the only reason for visiting the store,
they are willing to pay a little more for the product as they are aware of its
quality.
3. Followers: they buy and visit stores out of curiosity about what the media,
advertising and the general public say about Thani Donuts, they go to satisfy
their curiosity and verify the veracity of what they hear, they can easily become
regular customers when their expectations are exceeded by the product.
4. Price Finders . They are customers who are only looking for offers and deals
in their favor, they visit the store when a special discount or promotional
packages such as “cheaper by the dozen” are announced. Generally they are not
aware of the quantity of the product, nor of the experience generated.
5. Hot and ready. It is the most interesting group, they do not usually deviate
from their route and seek to have the products coexist near their area of action;
However, and on the other hand, once they detect some coexistence in the
product they are purchasing, such as proximity of its work and flavor, adequate
price and service, etc. They become regular customers; This is the most
interesting segment.
B. SWOT ANALYSIS:
In the following diagram we can analyze the main strengths, opportunities,
weaknesses and threats that Donas THANI DONUT'S has in its competitive
environment.

STRENGTHS WEAKNESSES

 Celebrities recognize and  There are competing products


support the brand. that are more recognized.
 Honest company with a figure of  High calorie content.
tradition.  Big lines in the morning.
 Fresh donuts produced daily.  Name recognition outside of
 Values since its foundation. certain regions.
 Unique flavor.  No advertising.
 Responsibility with the  Worn image for the younger
community. market
 Financial capacity (limited but
existing)
 Vertical integration.
 Its appeal will spread across all
demographics.
 The company will distribute its
products in stores, markets, and
commercial chains who could
easily adapt to the new product.

OPPORTUNITIES THREATS

 Market to grow towards.  There are many substitute


 High possibility of opening more products.
stores.  Competition in a market where
 Gain social and brand buyers are demanding and
recognition. knowledgeable can lead to a
 Its appeal will spread across all price war.
demographics.  Recent campaigns against the o
 The company will distribute its kissing can be another threat.
products in stores, markets, and  Put the product in the hands of
commercial chains who could new customers.
easily adapt to the new product.  Be more aware of the
competition.
 Healthier alternatives.
 Substitute premises as social
meeting points.

C. MAIN COMPETITORS OF THANI DONUT'S:


 Dunkin 'Donuts

The largest coffee and bakery chain in the world. With daily sales of 6.4
million donuts and 1.8 million cups of coffee, owned by Allied Domecq PLC,
this same group owns Baskin-Robbins ice cream, sandwiches (ToGo's
Eateries) and its assortment of alcoholic beverages. Worldwide it has 5,200
points of sale and in the United States alone it has 3,600 with a sales growth of
7%.

The company has defined itself with successes against chains like Starbucks
and other donut chains by always adding new products to the menu, and
intensifying the importance of convenience that they have. In addition to
opening a store in partnership with its sandwich and ice cream chain.

 Winchell's Donut House

This company was founded in 1948 by Verne Winchell. With about 6 units in
10 states west of Mississippi and international franchises in Guam, New
Zealand, South Korea, Egypt and Saudi Arabia. It has 110 restaurants in
Southern California. To combat Krispy Kreme's entry into this market, it
launched a pilot program called Caliente in seven stores in Southern California.
This would consist of displaying fresh, glazed donuts that were changed every
20 minutes and with a red light in the display case announcing that a new batch
was ready and on display. In 2000, a strong expansion campaign began in the
United States, recruiting food franchises. fast and adding kiosks in airports and
public places, having a presence in cities such as Vegas, California and others.

 Tim Hortons

A subsidiary of Wendy's International, one of the largest coffee and fresh bread
chains, with more than 1,900 stores in Canada and a steadily growing base of
120 locations in US markets. In Canada this chain is considered an icon, the
chain was named after a Canadian hockey player recognized as a national hero.

This company strategy consists of being part of the lives of its customers,
every day and in every life. The image it shows to its customers is that of being
a neighborhood gathering place, a home away from home. Its greatest
competitive advantage is being one of the largest chains with a very popular
product in the region.

 La Mar's Donuts

Conmatris in Kansas City. This small privately owned chain with stores in
Kansas, Missouri, Nebraska, Nevada, New Jersey. The first store was opened
in 1960 and quickly became an institution in the city, queues formed from 6.00
am and by closing time some 110,000 Donuts had been sold. Based on the
success, the owners began franchising the store in 1990.

The secret recipe and its quality is artisanal, handmade daily with natural
ingredients and without preservatives, the day-old donuts are donuts to those in
need. In addition to 20 varieties of Donuts, the menu includes a wide selection
of coffee. In association with Dzbog Coffee Company, they have developed an
exclusive line for LaMar's, with selected beans from Costa Rica.

The company's mela is "simply a better donut." Those who have tried it are left
in awe of its taste and say, "My God, it's the best donut I've ever had in my
life." In a magazine ranking as the best Donut.

II.3. BRAND DESIGN

II.4.
PROMOTIONAL PLAN
II.4.1. MESSAGE
“GET READY THAT SOMETHING DELICIOUS IS COMING AND ENJOY
ITS FLAVOR AT THE RHYTHM YOU WANT, DELICIOUS”
II.4.2. TYPE OF ADVERTISING
 Brand advertising: this focuses on the development and recall of the brand in the
long term, it does not promote any specific product but rather the general brand.
II.4.3. MAIN PRODUCT
The product to be offered are DONUTS, snacks made from flour, eggs, milk,
butter, delicacy, chocolate (white or brown) and potatoes, according to the
palate of our clients, with unit presentations, boxes of 3, 6, 9, 12 units
respectively.
II.4.4. SERVICE TO PROVIDE
As a distribution company we are committed to providing our wholesale and
retail clients with packaging according to the occasion (boxes and bags) that the
client needs to purchase our products and as a retail store we are committed to
providing the customer a pleasant atmosphere, with friendly and cordial
treatment, personalized attention as well as delivery service and varieties of
products to accompany our product as complementary products.
II.4.5. PRODUCTS
A. COMPLEMENTARY
The complementary products to be offered are drinks such as coffee, soda,
juices among other drinks.

B. SUBSTITUTE PRODUCTS
They are chocolates, flowers, cakes, decorative balloons among other gifts.
C. DEMAND: Geographic market area
The market studied for the consumption of our product is the city of Tarma:
POPULATION: 107,976

N:83.97
The total number of surveys to be carried out are from surveys that will be
carried out in the province of Tarma.
D. ANALYSIS OF DEMAND
Do you consume DONUTS?

Where do you purchase the product?


On what occasions do you purchase this product?

What price do you pay for DONUTS?

In what presentations do you purchase the product?


E. ANALYSIS OF THE OFFER

The offer of our product would be the bakeries that offer the same product
as us and the companies that offer substitute goods for this, which are
stuffed animals, flowers, balloons, since our product is aimed not for daily
consumption but for special occasions such as They are: Valentine's Day,
Mother's Day among other important dates that do not usually go unnoticed.
F. COMPETITOR ANALYSIS
The competition we have offers products at prices that consumers are
willing to pay for a quality product, mostly this competition is retail sales,
that is, within the reach of the consumer or client.
G. PRICE ANALYSIS

H. MARKETING CHANNELS
Our product will be sold at retail with the delivery service and marketed to
the different wineries in the city of Tarma where our potential consumers
reside.
I. MARKETING STRATEGY
The product is in demand but has little supply to meet market expectations;
being a new and innovative product can create a little more need in
consumers.

III. MATERIALS AND METHODS


III.1. Supplies:
 1 kg of potato
 1 kg of prepared or pastry flour
 4 or 3 eggs
 4 tablespoons baking powder
 2 cups of sugar
 Vanilla
 1 sachet of anchor milk
 100g butter
 ½ liter of oil
 100g powdered sugar
 100g of dragees
 3 bitter chocolate bars
III.2. Materials:
 Roller
 Frying pan
 Blender
 Sifter
 Fountain
 Donut molds
 Spatula
 Presser
III.3. Methodology
 Parboil the potatoes and mash
 Mix with butter
 Beat the eggs with the sugar until the sugar dissolves
 Sift the dry products three times
 Mix the flour with the potato and the egg mixture
 And reserve for a few minutes
 Stretch the dough and cut
 Fry in plenty of oil
 Sprinkle with powdered sugar, or also cover it with bitter chocolate and you can
also decorate it with dragees of different types.
IV. CONCLUSIONS AND RECOMMENDATIONS

IV.1. CONCLUSIONS
 According to the market study carried out, it was possible to identify a current
potential market of approximately 3000 people, which corresponds to
socioeconomic strata I, II, III of the population of the Province of Tarma. The
market study also made it possible to set the sales prices to consumers for the first
year, said price varies depending on the size and shapes of the Donuts shown in the
presentation.
 The presentation most requested by those surveyed were boxes of 4 donuts, and the
preferences for places to purchase them were the supermarkets in the region, of
which those with the greatest reach to the strata defined above were selected. The
most popular flavors are chocolate and frosting.
 The distribution system was selected according to Donas Thani's quality standards.
The production of that same day will be distributed to the supermarkets daily at
night. Additionally, products that are not in optimal packaging conditions will be
removed from the stores to guarantee the freshness and quality of the donuts.
IV.2. RECOMMENDATIONS
 For greater certainty regarding the figures obtained in the market study, it is
recommended, if possible, to carry out a greater number of surveys based on the
fact that as the sample is larger, the error decreases.
 In order to go beyond the scope of the project, it is necessary to define each of the
legal aspects for the constitution of the company and for its installation according to
the legal and fiscal restrictions of the mayor's office or municipality where the
company would be installed. .
 It is recommended to leave the calculation and design of the plant structure in the
hands of professionals in the field based on restrictions, industrial hygiene and
safety, and restrictions imposed by government bodies.
 If a more in-depth analysis is desired, other factors other than demand could be
varied, such as; inflation, sales prices and if it is possible to evaluate political
factors that affect the operation of our company.
 It is recommended to carry out a similar study in other locations in case you wish to
expand the company to other cities.
V. BIBLIOGRAPHY

 BACA URBINA, GABRIEL “Project Evaluation”, Mc publishing house. Graw Hill, third
Edition, Mexico, 1995.
 Fernando D´Alessio Ipinza, The strategic process: A management approach (2nd
edition)
 http://planamientoestrategico.pbworks.com/w/page/17114591/Caso%20Practico
%20S2
 Conovos george c. Probability and statistics applications and methods mc.graw.hill
mexico 1988. 6.
 Bye lincoln l. Statistics for the management sciences 2 edition mc grawl hill. 1975
 Levin richard y. Statistics for managers 2 prentice edition. Hispanoamericana Hall
in Mexico 1988.
 David, FR (2005). Strategic management. Concepts and cases (10th ed.). Upper
Saddle River, NJ: Prentice Hall.
 Hax, AC, & Majluf, NS(1991).The strategy concept & process: A pragmatic
approach. Upper Saddle River, NJ: Prentice Hall.
 Likert, R. (1967). The human organization: Its management and value. New York:
McGraw-Hill Book.
 Minstzberg, H., Ahlstrand, B., & Lampel, J.(1998). Strategy safari. A guided tour
through the wilds of strategic management. New York: The Free Press.
 Porter, ME (1980). Competitive strategy: Techniques for analyzing industries and
competitors. New York: The Free Press

VI. EXHIBIT

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