Peru Donut Market Feasibility Study
Peru Donut Market Feasibility Study
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.
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
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
E. VISION
STRENGTHS WEAKNESSES
OPPORTUNITIES THREATS
         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.
        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.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?
                 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.
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