Indian Food Ghost Restaurant in Kitchener

This assignment explores the concept of an Indian food ghost restaurant launching in Kitchener. It discusses the industry outlook, target market, competition, revenue model, and unique value proposition.

ENTR8000 – F18 - Innovation and Entrepreneurship
Supplemental Assignment
Student Name: Student Number:
 All secondary information must be properly sourced with APA format. That
includes both in-text citations and full references at the back of the
document.
SELECT ONE OF THE NEW VENTURE IDEAS BELOW AS THE FOCUS OF
YOUR ASSIGNMENT:
Idea #1: Consumer-to-Consumer Online Marketplace
for Second Hand Professional/Career Clothing
Launching in Kitchener-Waterloo
Idea #2: Indian Food “Ghost” Restaurant Launching in Kitchener
(a “ghost” restaurant is one without a physical location, just a
kitchen that creates food for delivery only)
Which idea did you select – Idea #1 or Idea #2? ___Idea #2______________
The rest of your assignment will now be based on the idea filled in above.

INDUSTRY
What industry will your new venture compete in?
It will compete in Food and Beverage Industry.
What is the size of the industry in dollars? ($)
The size of the industry is $1,038,023,000 (Zamon, 2015)
What is the outlook for the industry – growth, decline or staying the same?
The outlook of the industry suggests that company will show the growth in the
coming years and it is expected to be at 8% (Coppolino, 2016).
MARKET
Use the Customer/Problem/Solution Zoom tools to define 3 different potential
target markets. (Templates are attached for your rough work. Submit
scans/pictures of rough work as part of final submission. )
Summarize the possible target markets from your rough work in the table below:
Customer Problem Most important feature
for Solution
Bachelors
They do not have high
amount of money.
Providing them discount
coupons.
Low and Medium income
families
They do not have high
purchasing power.
Providing them loyalty
seats.
Spicy Food Lovers They prefer to go to
named restaurants.
Providing the variety that
could attract people from
different dimensions.

Complete the Customer Segmentation Matrix. (Matrix is found on
movestheneedle.com or you can recreate in Excel.)
o Attach the completed Customer Segmentation Matrix.
Based on the work you have completed, which market should you target?
Company should focus on the young people especially the ones that love spicy
food. There are large numbers of Indian Youngsters living in this area and hence
will be a good market to target. Since there are large numbers of youngsters
living in this industry and they are highly active on the digital media platforms.
Mostly it must concentrate in the urban location as delivery of the food will be
feasible (Region for Waterloo, 2018).
Using this market definition AND the geographic area defined in the idea,
what is the size of your market?
According to the market definition and the geographical area selected the size of
the market is 8,988,865. In this male constitutes 4,412,115 and female constitute
4,576,750. All these people are in the age group of 15 to 64 years.
COMPETITION
(Remember that you can group types of competition if there are a large number
of the same kind of competitive companies)
What direct competition does your venture have?
There are large numbers of restaurants present in the Kitchener and Waterloo
area. In terms of direct competition there are very few ghost restaurants in this
region which will give direct competition to this new venture. But the numbers of
such restaurants are very less and are operating at the minor level hence this
venture will have good chance to grab this big market. Some of the direct
competitors are Shawerma Plus, Levette, Redginger, Raja Fine Indian Cuisine
(Tripadvisor, 2018).
What indirect competition does your venture have?
On the other side there are several restaurants that are actually present. These
restaurants are giving indirect competition to this venture. They actually have a

big brand name and hence are able to attract large numbers of people towards
their Indian and western cuisine. Some of these restaurants have large capitals
to invest and hence offering large variety of food to the customers. Currently in
this region such type of competition is a bigger threat when compared with ghost
restaurants. Mediterrerraneo Family Restaurants, Jhonny Fresco, East side
Shawarma are their biggest indirect competitors (Tripadvisor, 2018).
What possible substitutes are there for your venture?
There are large numbers of substitutes available for this venture. Large numbers
of physical restaurants providing Indian Cuisine in their menu. Second the ghost
restaurants that are emerging in this region. Third are the emerging fast food
outlets available in the area. Fourth are the ready to made food that is increasing.
This is a threat because most of the people order from the ghost restaurants
when they feel that they are hungry at late nights or when they cannot go a
restaurant. Apart from this, the increasing numbers of food delivery apps is a
major threat as they are helping restaurants to reach out to the customers at
cheaper rates.
REVENUE MODEL AND PRICING STRATEGY
How will your new venture make money? What is the revenue model?
(You don’t need to give actual numbers here just tell me the type of transaction
that will generate money for you.)
Since the business is totally on the online basis hence the revenue model for the
company will be in three steps. This includes creating customer value, marketing
and selling. Customer value can be created by satisfying the existing
requirements of the targeted market as well as by generating and fulfilling the
new requirements. In terms of marketing there can be two things that can be
done first is to create a brand and second is give the solution to the challenges
that is faced by the market in availing Indian cuisine. At last selling which will
entirely be done with the help of online mediums. All the purchases will be made
with the help of online websites through the help of online payment options.
What is your pricing strategy and why did you choose this strategy?

(Refer to the document on eConestoga that outlines the theory and defines the
different pricing strategies.)
In the pricing strategy company has chosen is economy pricing. This is done so
as to make their mark in the industry. Most of the people in the industry seem to
be offering the products at legitimate pricing hence the company can use both
penetrations pricing along and economy pricing so as to grab the available
market share. The major reason for choosing economy pricing is that it helps in
attracting the target segment they have made for themselves. Since most of the
youngsters or bachelors do not like high priced food hence economy pricing will
be effective for this target segment. This strategy is helpful in attracting target
segment that are highly price conscious.
WHAT MAKES YOU UNIQUE?
What criteria would a consumer use to evaluate options in your category? List
all criteria here:
Some of the criteria are:
Quality
Pricing
Variety
Original taste
Create perceptual maps using this criteria and place all competitors AND your
new venture on each one. (Attach these rough maps.)
Based on your analysis of the perceptual maps, how is your venture unique?
This venture is unique as it delivers high quality Indian food having great taste
and more often originality. This venture is unique as it is first of its kind that
serves Indian Food in the Waterloo area.
PROMOTION
What is the best way for you to connect with your target market?

- Inbound (how they can find you)
Among the various strategies available with the firm, the best strategy that will
help the company to connect to the target market will be through mobile based
app. Since youngsters which are their major target segment are highly connected
with the mobile technologies hence such type of app will be the best way in which
this venture can get connected to target market.
- Outbound (how you will reach out to them)
For reaching out to the customers, the best strategies that are available with the
firm are the online strategies. Company can promote its venture on different
types of online platforms such as social media and other types of websites. Link
to download the app must be provided at different forums along with the
description of the types of products and services must be given on different
platforms. Geo-centric target marketing will be effective in such type of ventures.
SUMMARIZE THE NEW VENTURE
BUSINESS CONCEPT STATEMENT
Develop a 2-3 line description that paints an accurate and compelling picture of
the new venture concept. It should include: problem, solution, target market,
revenue model and unique value proposition.
This venture has targeted mostly young people. Company will face problems as
these youngsters do not have large spending power. The solution to this is that
company brings their products at lower cost and provides discounts for the
people who are regular customers. Its unique value preposition is its great Indian
taste at lower prices. The revenue model takes the use of online mediums for
generating money.
LEAN CANVAS – ONE PAGE BUSINESS MODEL SUMMARY
Complete the template provided on eConestoga for your new venture. (attach the
completed template)

REFERENCES
Zamon, R. 2015. The Best Restaurants In Kitchener And Waterloo. Retrieved from:
https://www.huffingtonpost.ca/2015/06/08/kitchener-
restaurants_n_7521774.html
Coppolino, A. 2016. New restaurants in Waterloo Region for 2016. Retrieved from:
https://www.cbc.ca/news/canada/kitchener-waterloo/new-restaurants-in-
waterloo-region-for-2016-1.3516432
Region for Waterloo, 2018. Restaurants and Food Services. Retrieved from:
https://www.regionofwaterloo.ca/en/doing-business/restaurants-and-food-
services.aspx
Tripadvisor, 2018. Waterloo Delivery Restaurants. Retrieved from:
https://www.tripadvisor.in/Restaurants-g181736-zfp19-
Waterloo_Region_of_Waterloo_Ontario.html