Quantitative Analysis
Scarborough, in the City of Stirling, is where we want to place our cupcake shop, Cupcake Cafe. We have collected some numbers and data and summarized how the data will affect the success of the business. The data includes a range of averages and from this data the population gradually increases in the City of Stirling.
The data set for City of Stirling can be found on http://profile.id.com.au/Default.aspx?id=270&pg=138&gid=290&type=enum.
The data set for City of Stirling can be found on http://profile.id.com.au/Default.aspx?id=270&pg=138&gid=290&type=enum.
Population
The graph shows the population over the past decade and how it has increased in the City of Stirling. This proves that Stirling is a gradually expanding city and therefore it gives an extensive range of the general population for Cupcake Cafe to target.
With this extensive population group living in the city and surrounding suburbs it becomes convenient for the target market to purchase our goods and in turn this increases the business of Cupcake Cafe. This is a value to the business because the closest competition is in Osborne Park.
Due to this, the majority of the targeted population group will purchase goods from our shop compared to Osborne Park because of the inconvenient travel distance.
It is not predicted that customers will be dining at Cupcake Cafe for coffee because it is not the Cafe’s main focus. As cupcakes are the company’s focus, cupcakes will be the main selling point, with coffee being a secondary purchase.
With this extensive population group living in the city and surrounding suburbs it becomes convenient for the target market to purchase our goods and in turn this increases the business of Cupcake Cafe. This is a value to the business because the closest competition is in Osborne Park.
Due to this, the majority of the targeted population group will purchase goods from our shop compared to Osborne Park because of the inconvenient travel distance.
It is not predicted that customers will be dining at Cupcake Cafe for coffee because it is not the Cafe’s main focus. As cupcakes are the company’s focus, cupcakes will be the main selling point, with coffee being a secondary purchase.
Population Income and Rent
The average income per household for residents who live in the City of Stirling is lower than the rest of Western Australia, but more than the average Australian household. This is a concerning statistic for the company revenue as it means families have less money to spend on luxuries.
Also with the average rent cost being higher than the majority of Western Australia it decreases the amount spendable. The way we plan on combating this problem is by decreasing the selling price of cupcakes but staying high enough to earn a profit. We will also add in incentives such as mail out coupons and company deals that customers can claim in store. We could also advertise in other cities outside Stirling where incomes are greater and people have more money to spend on luxuries.
Also with the average rent cost being higher than the majority of Western Australia it decreases the amount spendable. The way we plan on combating this problem is by decreasing the selling price of cupcakes but staying high enough to earn a profit. We will also add in incentives such as mail out coupons and company deals that customers can claim in store. We could also advertise in other cities outside Stirling where incomes are greater and people have more money to spend on luxuries.
Target Market
Figure 17
The percentage of couples who have kids is important to our business as we can cater for events such as birthdays and everyone knows how much kids love sweets. If we were to cater a kids birthday with our cupcakes, it will take out the hassle for parents trying to organise a birthday cake.
Having cupcakes as a birthday cake has many benefits, not only because it is more practical to share between children but is also more hygienic in the sense of the child blowing out their candles. We have potential to target a extensive range of events. Especially with young families, referring to the graph, the average age in the City of Stirling is 36.
Another advantage is with cupcakes being the latest sweets trend. The younger generation will be more aware of this compared to the older generation. If we exploit this and make our target market the young couples and young families we can make our cupcake decorations to suit their lifestyles.
We have a chance of real growth and high turnover therefore leading to high profit.
Having cupcakes as a birthday cake has many benefits, not only because it is more practical to share between children but is also more hygienic in the sense of the child blowing out their candles. We have potential to target a extensive range of events. Especially with young families, referring to the graph, the average age in the City of Stirling is 36.
Another advantage is with cupcakes being the latest sweets trend. The younger generation will be more aware of this compared to the older generation. If we exploit this and make our target market the young couples and young families we can make our cupcake decorations to suit their lifestyles.
We have a chance of real growth and high turnover therefore leading to high profit.