Pamper Your-Self Chef Service
The market is complex and composite, consisting of a wide range of clients with different needs. A business should aim at meeting a specific need in the market they hope to venture into. The market comprises people who differ in terms of gender, income level, education background, age, among other demographic variables. It is based on the variables that the marketer will divide the market, a process known as market segmentation (Kotler & Armstrong, 2010). By segmenting the market, the marketer is able to identify his or her target market, in addition to their specific needs as well as how to meet those needs.
The gap existing in the market is the need for a wide variety of recipes prepared by top-notch chefs and presented in an appealing way. There have often been complaints on the sub-standard services provided by present-day caterers. Pamper Yourself Chef Service aims to fill this gap by providing catering services targeting those who wish to hold family events such as weddings, birthdays, farewell parties, and other similar events. The chef service will prepare a wide range of cuisines and drinks, and the target market will be high-end income earners in the age bracket of twenty-four and above. The target market chosen is highly lucrative and since it comprises of high-income earners who like holding social gatherings, the profitability is quite high. The market is also sustainable because the members of the target market also fit in the corporate category. This means that for business events the clientele shall remain the same. The clients can enjoy themselves as food is catered to them in a more personalized setting.
The larger market can also be segmented to target small social groups such as the gay and lesbian community. This group feels isolated from the rest of society and constantly holds gatherings to strengthen their position in society. Pamper Yourself Chef Service recognizes this fraternity’s need, and what better way to crown their meetings than with a well-prepared meal. The marketer’s role will be to get in touch with their leaders and acquire a schedule of their meetings- the time and place, and furnish them with a menu of the food prepared by the chef service. They shall also enjoy a more personalized service.
The number of clients Pamper Yourself Chef Service will pull and retain depends on the price, which in turn is determined by the method of pricing used. Generally, low prices will pull more customers, while high prices will capitalize on its high price rather than sales volume to meet the target revenues. The business has four methods of pricing at its disposal; the cost-plus pricing, target return pricing, value-based pricing and the psychological pricing method (Kotler & Armstrong, 2010). The Chef Service objective is to stand out from other catering service providers by offering the highest quality of service.
In this regard, the most appropriate method for pricing will be the value-based pricing. Value-based pricing is based on the value it adds to the customer. The customer will attribute the price they pay to the high standards of service they receive, the principal being value for money (Kotler & Armstrong, 2010). In addition, because the business will target high-income earners, it can afford to charge high prices. This method will be the best in helping the business to be a leader in the catering industry. The price will be an indication of the high quality of services it provides. Value pricing will also enable the business to recover most of its costs.
Another consideration for Pamper Yourself Chef Service is how to introduce its prices to the market, either through skim pricing, or by penetration pricing. The latter aims to maximize revenue based on large sales volume and low prices. This is used in the case of price-elastic demand, where the demand will largely depend on the level of prices, or where there is a lot of competition. Skim pricing will be the most applicable for Pamper Yourself Chef Service, which targets customers who are less sensitive to price, and are more focused on the value of service provided. From a marketing point of view, Pamper Yourself Chef Service shall be a great target for clients who prefer private parties and small family gatherings and more so events with a personal touch to them.
Channels of Distribution
For the service (or goods) to get from producer to the consumer, it follows a distribution channel. The goods or services must reach the customer or client when and how they ordered them through retailers, agents, wholesalers, merchants, advertising or selling directly to the consumer (Dent, 2008). For the Chef Service, a service provider, the best channel of distribution will be selling directly to the client. Services are non-transferrable, therefore cannot be delivered to the client through retailers, agents, wholesalers and merchants who deal with tangible goods. Another aspect of selling to the client is the direct link required between the chef service and the client.
A direct link will foster good and lasting business-client relationships, and consequently the business will attract more clients. In addition, it is easier to know the exact needs of the client as well as how to fulfill them because of the direct relations. The business will also incorporate advertising into its distribution channel. It can do so via the internet, the media, and most importantly, through its already existing client base. Pamper Yourself Chef Service must ensure that its services are consistently high in quality. The satisfied client will then publicize the business to other potential clients. Due to the nature of the business, other channels are not required thus the customer has to be the one to please so as to gain a mutual success and ensure they shall represent the product (the service provided) after the delivery of the service.
If the business does well, it can open other branches in different parts of the country. The challenge will in ensuring management and co-ordination to maintain the high standard of quality set by the original business. The returns however will far outweigh the challenges. One, the business will be known nationwide, as opposed to operating in the local neighborhood. The second advantage will be the dramatic increase in revenue owing to a wider customer base. Another option to consider in distribution is to operate Pamper Yourself Chef Service as a franchise; however, this will only be possible once the business is well established.
Activities to be undertaken by the chef service in distribution are procurement of foodstuffs from agricultural products suppliers, transformation of the produce to the form desired by the client, delivery of the service to the client on time, and finally, getting feedback from the client. Where it is complemented, the business should continue to perform the way it does. However, Pamper Yourself Chef Service should also welcome criticism to improve the quality of its services to the clients’ expectations.
Dent, J. (2008). Distribution Channels: Understanding and Managing Channels to Market. London, UK: Kogan Page Publishers.
Kotler, P., & Armstrong, G. (2010). Principals of Marketing. New Jersey, NJ: Pearson.
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