First, I want to talk a little about what my product and service is, or in other words, the business I plan on starting. The business I want to start is a luxury steak house. It will be easy to find and very customer friendly. I will have a competitive advantage over other steak houses in the industry because I will get the steak fresh from my farm. This ensures homegrown, quality meat, fresh from the cow, no one else is doing this in the steak restaurant market and this will give me the upper hand. This is what my customers will come for. Like I said, I will be selling quality steak but also choice seafood’s and spirits. Combined with a luxurious but homey atmosphere, this will help my target customers enjoy their experience at my steak house. …show more content…
The target customer is simply the everyday business man who is looking for a good lunch place to have a serious business meeting or the corporate group who just met its quota and wants to celebrate. This isn’t for the everyday Joe to come in and order a Filet, Prices will be quite high but that’s because you are paying for not only the best beef, but a quality experience. The target market will be the lower, southern Indiana area. Growing up in Louisville, that area doesn’t have a lot to offer when it comes to steak houses. I plan on introducing my steak house to this in saturated area. This ensures little competition at first to help grow the business. As stated in IBIBSWORLD, “Annual revenue of the steak restaurant industry is upwards of $6 billion a year with an annual growth rate of 0.4 %”. These statistics are based on some of the best steak houses like Sullivan’s, Morton’s and Ruth’s Hospitality Group. These are good statistics and I know the growth rate might seem low, in areas that don’t have very many steak houses, the growth rate will be higher, which is what I am going for.. This will also help me establish my location according to household’s median income in certain areas and areas with higher population. This ensures that there is plenty of money and foot traffic in the area I want to settle in which over all leads to more revenue for my steak house. This also helps me define my target customer even more. I will not only target business people or higher income people but people from 30-65 years of age, who have experience with higher end restaurants whom we can build relationships with. This will help me maintain a high profit