Opportunity Analysis of a

major Food & Beverages

Manufacturer
Submitted by

Rohit Kumar Jana

2020SMF6645
 Case Statement

• Get a quick view of share of F&B spends from existing customers (restaurants) that my
company is getting, and if there are any opportunities in specific segments.

• What are the adjacent opportunities from the non-commercial establishments to additionally
sell into (note that there are no customers currently in the non-commercial segment). Their
spends are not available, so will be interested in knowing relevant proxies that could indicate
opportunities for us.

• Retailers is a different business division and hence out of scope for me (Shaun), but some of
my customers / prospects could be buying from these retailers – so getting a view of retailer
presence adjacent to his customers & prospects will help understand how much of these
opportunities are being met / unmet.

2
 Analysis of Customers’ Annual sales and % share of F&B
purchases from Shaun's Company
Restaurants
391
400
350
Average of % Share of F&B Purchases from Company 300
250 160
Annual Sales Restaurants <50% >90% > 50% & < 70% >70% &< 90% 200
150 78
100 26 1
$1,000,001 - $2,500,000 78 39 9 15 15 50
$2,500,001 - $5,000,000 26 12 2 8 4 0
$500,001 - $1,000,000 160 78 12 41 29 00 00
00 00 00 0,0 0,0
0,0 0,0 00,0 50
,0
0
<=$500,000 391 210 33 85 63 0 0 ,0 $ 5
2,5 5,0 $1 <= >$
-$ -$ 1-
>$5,000,000 1 1 01 01 ,00
00,0 00,0 00
Grand Total 656 339 56 150 111 0
, , 5 $5
$1 $2

Key Inferences & Opportunities:

1. Analysis of the customers where % share of F&B purchases from Shaun’s company is "Not Available" and concentrating only on stays is done.
2.There are 656 unique restaurants which are segregated based on annual sales and also their percentage share of F& B purchase from Shaun's company as
below :
• less than 50% share :Needs to be worked on
• Greater than 90% share :High Business with them, need to maintain same level
• Greater than 50% but less than 70% :Can be worked on
• Greater than 70% but less than 90% :Have to improve business relations

3. The company has good tie-up with restaurants having sales revenue<$500000
3
 Analysis on stays spends and share
NUMBER_OF_ROOMS
Lodging and bar categories
Lodging and bar 51 - 101 - 251 - >50
ANNUAL_SALES categories <50 100 250 500 0
2.13%
$1,000,001 - $2,500,000 19 5 6 7 1
34.04% 40.43%
$500,001 - $1,000,000 4 1 2 1 $1,000,001 - $2,500,000
$500,001 - $1,000,000
<=$500,000 7 5 1 1 <=$500,000
>$5,000,000
>$5,000,000 16 2 4 8 2 14.89% 8.51% UNCODED

UNCODED 1 1

Grand Total 47 7 8 12 17 3

Key Inferences & Opportunities:

1. Analysis of the customers where % share of F&B purchases from Shaun’s company is "Not Available" and concentrating only on stays is
done.
2. There are 47 unique customers who are actually stays(number of rooms are available) and are segmented in to 5 categories based on
annual sales as shown in above table.
3. 40% of these stays contribute to annual sales segment of $1,000,001 - $2,500,000 and they have a huge potential for selling food and as
their simplified menu has bar ,we can see a huge scope for beverages from these 19 customers. The remaining of 47 customers can
collectively contribute to good sales of Shaun's F& B manufacturing company which were not utilized till now.
3
 Analysis on Restaurants’ spends and share

NAME MARKET_SEGMENT SIMPLIFIED_MENU ANNUAL_SALES NUMBER_OF_ROOMS % Share of F&B Purchases from Company
BED & BREAKFAST THE CAMPBELL HOUSE INN BED & BREAKFAST, GUESTHOUSES, CHAMBRES D'HOTES SELECTION FOR LODGING AND BARS $1,000,001 - $2,500,000 UNCODED #NA

VINEYARD BED & BREAKFAST BED & BREAKFAST, GUESTHOUSES, CHAMBRES D'HOTES SELECTION FOR LODGING AND BARS <=$500,000 UNCODED #NA

BECKYS COUNTRY INN BED & BREAKFAST, GUESTHOUSES, CHAMBRES D'HOTES SELECTION FOR LODGING AND BARS <=$500,000 UNCODED #NA

SHADY OAK OF SERENITY B & B BED & BREAKFAST, GUESTHOUSES, CHAMBRES D'HOTES SELECTION FOR LODGING AND BARS <=$500,000 UNCODED #NA

MEANDER INN BED & BREAKFAST BED & BREAKFAST, GUESTHOUSES, CHAMBRES D'HOTES SELECTION FOR LODGING AND BARS <=$500,000 UNCODED #NA

HAMPTON INN UNCODED HOTELS & MOTELS WITHOUT RESTAURANT SELECTION FOR LODGING AND BARS $1,000,001 - $2,500,000 UNCODED #NA

POWHATAN PLANTATION RESORT RESORTS SELECTION FOR LODGING AND BARS <=$500,000 UNCODED #NA

RV RESORT LLC CAMPING, RV PARKS, CAMPGROUNDS SELECTION FOR LODGING AND BARS <=$500,000 UNCODED #NA

D J INN BED & BREAKFAST, GUESTHOUSES, CHAMBRES D'HOTES SELECTION FOR LODGING AND BARS <=$500,000 UNCODED #NA

RULEVILLE INN BED & BREAKFAST, GUESTHOUSES, CHAMBRES D'HOTES SELECTION FOR LODGING AND BARS <=$500,000 UNCODED #NA

Key Inferences & Opportunities:

• Analysis of the customers where % share of F&B purchases from Shaun’s company is "Not Available" and number of
rooms is "Uncoded" is done.
• There are 10 unique customers whose % share of F&B purchases from Shaun’s company is "Not Available" .
• Most of them comes under Bed & Breakfast segment and as all their simplified menu is of "selection for lodging and
Bars" at least beverages can be supplied to the people who visit their place.
• As every small number counts to a big difference, we can find a huge opportunity in converting them to our
customers who can contribute to our beverage segment. 3
 Non-Commercial Potential Customers
Range _Sales revenue
$1,000,001 - $500,001 - <=$500,00
% Share of F&B Purchases from Company $2,500,000 $1,000,000 0 Grand Total
16% 7 7
20% 13 13
43% 1 1
43% 11 11
55% 7 7
70% 6 6
Mostly Hotels having Bars 6 14 12 32
Grand Total 6 32 39 77

Key Inferences & Opportunities:

1. Used County code _zip to identify companies at unique locations
2. There are 77 non-commercial locations which have customers of Shaun's company nearer to them.
3. There are 32 hotels having bars nearer to non-commercial locations
4. All these customers can help the company with word of mouth to spread good about Shaun's company and can convert these non-
commercial places to our potential customers.
5. Most of the non-commercial places are hospitals ,schools, health centers, childcare where the company can give their food and
beverages
services to them.
3
 Non-commercial-Future Customers
Non-Commercial Market segments Count Percentage
OTHER HEALTHCARE ESTABLISHMENTS 135 27.16%
SCHOOL DISTRICTS 103 20.72%
PRE-K, KINDERGARTEN, CHILD CARE 94 18.91%
4 YEAR COLLEGE & UNIVERSITIES 48 9.66%
PRIMARY SCHOOL 44 8.85%
CENTERS FOR CHILDREN, SUMMER CAMPS 27 5.43%
2 YEAR COLLEGE & UNIVERSITIES 16 3.22%
ASSISTED LIVING 10 2.01%
TECHNICAL AND TRADE SCHOOLS 9 1.81%
SECONDARY SCHOOL 8 1.61%
SENIOR LIVING 2 0.40%
RUNAWAY & HOMELESS CENTERS 1 0.20%

Key Inferences & Opportunities:

1. Analysis of the Non-commercial market segments and their percentage of market presence were done
2. There are 497 customers belonging to 12 unique market segments are found from above table.
3. As first four highlighted market segments of non-commercial future customers contribute to 85.31% of market presence , it is better to
concentrate on them as a part of phase 1 penetration plan.
4. Health care segments contribute to more market presence ;hence word of mouth has to be spread more in that segment about Shaun's
company from near by already existing customers.
5. Proper connections with the canteens and food supply division of the health care establishments and educational institutions would lead
to more market penetration.
3
 Potential of future customers based on number of meals per
day
%wise bifurcation of number of meals per day
Number of Meals per day for Non-commercial Count
>2000 28
>2000
1001 TO 2000 4 28.57% 1001 TO 2000
36.36%
101 TO 250
101 TO 250 2 251 TO 500
501 TO 1000
251 TO 500 3 51 TO 100
23.38% 5 .1 9
39. 206. %0 %
501 TO 1000 18
%
51 TO 100 22
Grand Total 77

Key Inferences & Opportunities:

1. Out of 77 non-commercial locations which have customers of Shaun's company nearer to them,28 of them serve more than 2000 meals
per day. So they have huge potential to give Shaun’s company good sales.
2. There are 18 customers serving 501-1000 meals per day and 22 customers serving 51 to 100 meals per day ,total out of 77 members ,in
the first phase if Shaun’s company were able to concentrate on these 68 customers(88%), we will be able to generate more profit.
3. More the number of meals per day per non-commercial ,more the capability to purchase food and beverages from Shaun’s company .
3
 Analysis of Near by Retailers of customers

Key Inferences & Opportunities:

1. With respect to County code_ ZIP there are 74 retailers nearer to Shaun's company's present customers.
2. There are 25 retailers nearer to the customer Backstage Cafe whose % share of F&B Purchases from Shaun's company is just
2.42%.So,Backstage cafe must be buying most of its requirements from these retailers. As they are retailers and Shaun's company is a
manufacturer , It could offer their requirements within less price and grab a maximum share in their F&B purchases.
3. Similarly there are 15 retailers nearer to Anna's restaurant whose annual sales having $500,001 - $1,000,000 and % Share of F&B
Purchases from Shaun's Company is 15.69% . As the customer is having very good annual sales and also assuming this customer is buying
majority of its requirements from these 15 retailers , if we offer our trust ,brand value/good will and less rates for their requirements we
can increase our share in their F&B purchases.
4. Every single customer is given more importance as small contributions add to big difference and high impact. 3
 Recommendations

Recommendations based on % share of F&B purchases :

1.Shaun's company needs to be more dynamic and active in making relationships and improve its share with the customers having annual sales <$500000.Although it
has good customer base i.e., 391 unique restaurants,it need to concenterate on increasing their % share with all of them as it is below 50%.
2.There is only one unique restaurant having annual sales as >$5,000,000 .This segment has huge potential to buy more number of food & beverages from Shaun's
company.Inorder to attract more customers with annual sales >$5,000,000, we need to come up with good marketing plan and cost incentives.
3.Since 47 unique customers are completely based on stays and all of them have bars ,there is a huge scope of providing them with beverages with better pricing and
would surely improve our share of purchases.
4.There are 10 unique customers whose % share of F&B purchase with Shaun's company is not available.As every small number counts to a big difference,we can find a
huge opportunity in converting them to our beverage segment.

Recommendations based on non-commercial :

1.The company need to focus mostly on word of mouth of their existing customers and also better marketing plans to convert them(non-commercial) as successful
customers.
Most of the non-commercial places are hospitals ,schools, health centers, childcare where the company can give their food and beverages services to them
with good discounted prices.
Proper connections with the canteens and food supply division of the health care establishments and educational institutions would lead to more market
penetration.

Recommendations based on retailers Analysis :

15
General Recommendations :

Innovation: Recommendations
Innovation in the form of introducing a new app/website to the customers where they can easily order the required food and beverages.This app/Website should
only be restricted to B2B ,but in further phases it should be extended to B2C after gaining sufficient presence in the market.

Lowering prices :
As Shaun's company are the manufacturers they can provide the food and beverages at costs lower than that of its competitors and other retailers.Lowering prices
will attract more customers and help widen the customer base and increase sales, hence increasing the market share of the company.

Strengthening customer relationships :

- For the holidays, send cards to all the customers to express how grateful you are for them and their business.
- Reward long-time customers (5 years plus) with a loyalty discount program.
- Proper customer relationship management through teleservices.
- After building app/website,make sure your website is top-notch(include online chatbots etc)
- Get valuable feedback from the customers

Advertising
-Through blog posts, newsletters, Facebook, Twitter, and an all-encompassing social media marketplace blitz ,improve its market presence.
-Invest in good campaigns like TV advertisements to improve market presence.

Increased quality
-Continuously maintaining proper quality of all the products you offer with good cost incentives would help in improving our good will and also market share in the
market.

Acquisition
-There are many retailers near by Shaun's customers and non commercial future customers.Acquiring most of them and bringing all of them under the umbrella of
same brand would surely increase the % share of food and beverages of shaun's company and also improves the word of mouth thus paving a way to business of B2C
customers also. 15
Thank you