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Alyssa Wilson City: Amsterdam Expanded Business Plan- 4.0 Market Analysis 4.1 Market Segmentation 1.

Travelers/Tourists- This segment includes people from all over the world. People who visit Amsterdam can include business people, international visitors and domestic visitors. 2. Elders – Elders like to eat breakfast real early in the morning. They like more traditional Dutch foods. 3. Middle Aged Adults/Children – Usually will take children or teens with them all throughout the day for breakfast, lunch and dinner. 4. Young Adults- Stay up late studying or partying, who would take advantage of the 24 hour service these restaurants provide.  Dennys is capable of serving to all income levels, races, and genders.  It would be a good idea to do a market research survey or other marketing method to determine what percentage of each of these would eat at a Dennys restaurant in the Netherlands. 4.2 Target Market Segment Strategy While the main target audience includes families with children and seniors age 50+, we would like to widen the target market to include late night restaurant-goers. This includes late night workers, college students and those traveling (mainly young adults). With such large target audience, it is hard to reach everyone. Our marketing plan must focus on advertising having a common factor of being open 24 hours. We will do this by social media, advertising at nearby nightlife clubs and college institutions.

4.2.1 Market Needs Since Amsterdam is one of the most visited locations from all around the world, there is a high demand for foods from all nations. This allows expansion of restaurants to be outsourced to this diverse city. There is a need for restaurants that are open for 24 hours a day because there is a lot of nightlife in the area. Many of shops that are open 24 hours are cafes which many people would want to go to a restaurant sometimes instead of a café. Market trends

Amsterdam has many visitors from all over the world making it very diverse. There are many restaurants catering for many different tastes so every cuisine in every nation is wanted and represented.

4.2.2 Market Growth The overall market grew at an average annual real 0.59% by value from 2006 to 2011, and is forecast to grow by a real annual 1.41% from 2011 to 2014. Real Annual % Growth 2010 - 2011 – Food Expenditure -0.3% – Non-Alcoholic Beverages -5.5% – Alcoholic Drinks 0.2% – All Food & Drink -0.9% According to The Economist, the Dutch people’s weakness is consumer spending, but has been falling for a year and a half. They are feeling poorer because of the housing market dropping, homeowners have slowed their spending. House prices dropped by 6% last year and have fallen by 16.6% from their peak. Once house prices hit bottom though, the economy will recover. Their GDP shrank by almost 1% in 2012, and forecasters expect another 0.5% contraction this year.

4.3Industry Analysis Successful U.S. franchise operations in the Netherlands include McDonalds, Domino’s Pizza, and Pizza Hut so the people who live there are somewhat familiar with U.S restaurants. Products that sell well in the U.S. market will generally have market potential in the Netherlands. Dutch buyers appreciate quality and service and are also interested in delivery price. Care must be taken to assure that delivery dates will be met and that after-sales service will be promptly honored.

The total retail market was 34.4 billion Euros and foodservice 6.4 billion Euros in 2011.

. 4.3.1 Industry Participants American Food Broodje Bert Belushi’s Harlem Soul Food Downtown American Diner Kapitein Zeppos 24-hour Restaurants Bojo - 24 hour Indonesian Cuisine Brasserie Bark Café Restaurant De Ondeugd Café – Thijssen De Zotte

East of Eden Jazzcafe Alto Kamer 401 I’Opera Grand Café 4.3.2 Distribution Patterns The Denny’s Franchise Association (DFA) has provided us with companies who support the DFA and are used to source the different supplies used at Denny’s and restaurants. Dennys will receive its fresh foods from local farms and its frozen food and commodities from a variety of suppliers such as Tyson and Heinz. For beverages it is recommended to get it from Coca-Cola and Dr. Pepper-Snapple Co. As for the furniture, AC Furniture Co. will supply us. This way it will make this Dennys a more traditional American design and atmosphere. Kitchen supplies will come from Tundra Specialties who has most of the products needed which also are supported by the DFA. The food will be made at the restaurant and served to the customers by a waiter. 4.3.3 Competition and Buying Patterns As stated in the previous section, there are 5 other restaurants who are also American themed. They however are not open 24 hours a day. As for the restaurants who are open 24 hours a day are not American. This gives Dennys the best of both worlds because it will be both. Broodje Bert has a American cuisine and serves breakfast and lunch/brunch. Belushi’s serves Burgers and is also open late night but not 24 hours. Harlem Soul Food serves American southern food such as fried chicken and corn. Downtown American Diner is one of the main competitors because it is the closest relation to Dennys. They both serve similar foods, but at our Dennys it will have an advantage because we are adding on more traditional Dutch foods. 4.3.4 Main Competitors Most restaurants open 24 hours are cafes. This gives Dennys a nice market to be in because if people are really hungry in the night, they will go to a place that serves a variety of foods rather than a small café. The main competitor is Kapitein Zeppos who serves lunch sandwiches, fish soup and other seafood dishes and has a seasonal menu. In the area which we are planning to put the restaurant, there aren’t many American food restaurants. This gives Dennys a nice advantage for less competition.

Sources Interview: Alys De Vires- Lives in Holland contacted via phone & email