The paper "Situation Analysis of Sandwich Shop in Canberra" is an outstanding example of a marketing case study. This situation analysis analyses a new Australian market for a new sandwich shop and seeks to address crucial factors in the marketing environment associated with opening the sandwich shop in Canberra. The sandwich shop will be quick service restaurant in Canberra. The owner of the shop is Brad was previously working in a Subway. The objective of opening the sandwich shop is to provide healthy sandwich options to people of Canberra. Basically, Canberra has a number of QSRs which have some substantial market share in the city, but the shop will bring new choices to the market.
Industry Overview The QSR industry has been experiencing rapid growth in the last few years, largely because of the increasing awareness amongst the customers regarding the benefits of consuming healthy foods. Furthermore, people’ s lifestyles have become busier; thus, increasing the demand for quick meal options. As observed by Research and Markets (2015) the revenue in the industry will reach $1.7 billion by 2017, and it is projected to increase by almost 2.6 per cent every five years.
Still, it was projected the industry revenue would decline by 2.4 per cent in 2015 since the external competition that the industry was facing from other food establishments was very intense. A number of restaurants across have started offering convenient as well as healthy meal options. Research and Markets (2015) further observed that the Sandwich Shops industry sell pre-made or made-to-order sandwiches and is expected to experience some growth in the future. In Australia, the sandwich industry has employed hundreds-of-thousands Australians and make billions of dollars every year.
According to the Euromonitor report, as cited by Westcott (2014), the Australian fast-food sector growth has declined, but the takeaway food sector experienced a 2 per cent growth. In Australia, an average of 26 sandwiches is sold every day in retail outlets. Therefore, it is clear that sandwiches are top-of-mind for the majority of Australians (Mccormack, 2012). IBISWorld (2016) reported that participation in the industry is growing; therefore, the premium products demand has increased, and it is projected that the revenue will grow by 3.0 per cent over 2016-17.
According to Euromonitor (2016), McDonald’ s (both franchised as well as owned) is still the industry leader, and then it is followed by the Subway Systems Australia. These two companies collectively hold 32 per cent of total sales in the industry as well as 46 per cent of chained fast food’ s value sales. PESTEL Analysis Political Factors One of the factors that could influence the opening of the new sandwich shop is the labelling of foods that are genetically modified. There are new rules associated with the labelling of genetically modified foods.
Therefore, companies in the QSR industry are required to inform their customers if the sandwiches contain genetically modified ingredients. Besides that, the political surrounding could enormously influence the decisions made in the market. The introduction of Goods & Service Tax could influence the business since it leads to prices changes in the sandwich shops, but still, other food items’ prices remain unchanged. For this reason, the sandwich industry focuses more on service instead of product arguing that the customer cannot get improved service in their homes like the one offered at these outlets.
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