Fall 2010

ContentsIntroduction.................................................................................................................................................3

Why I am conducting this research?............................................................................................................3

Competitive forces......................................................................................................................................4

V8........................................................................................................................................................4

Booster Juice.......................................................................................................................................5

LaBoccajuice.......................................................................................................................................5

Economic Forces..........................................................................................................................................6

Demographic.......................................................................................................................................6

Restaurant and food services...............................................................................................................6

The recession, CPI, and inflation effects.............................................................................................6

Social Forces................................................................................................................................................7

Canadian Values:.................................................................................................................................7

Age:.....................................................................................................................................................7

Lifestyle:..............................................................................................................................................7

Technological Forces...................................................................................................................................8

Transportation.....................................................................................................................................8

Website................................................................................................................................................8

Regulation forces.........................................................................................................................................8

Conclusion...................................................................................................................................................9

Apandices..................................................................................................................................................11

Bibliography...............................................................................................................................................12

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Introduction There is a unique combination of vitamins, Minerals, and other healthy substances in each juice. The very old misconception that juice should be sweet has been reversed during the last few years; therefore, we have gained access to a far wider range of flavors and juices. Instead of being limited to only fruit juices, you now can have a juice that has been created from vegetables, a mixture of fruit and vegetables or even fruit or vegetable juice mixed with herbs and spices. The combinations are endless and they’re all good for us.

The relative levels of nutrients, vitamins and minerals that you receive from juice as opposed to the sodas (Most people consumed a big amount of it on daily basis) are amazing. The fact that healthy juice is far less accessible to the average consumer than soda could be a contributing factor in the rise of fatness in all over the world. Sodas have incredibly little nutritional value and in addition to that, they have huge amounts sugar, preservatives, colorants and flavorings to make the drink taste good to consumers. There are also a range of ingredients in the sodas that can be potentially addictive as well as being generally unhealthy. In my “50 Fresh Juices” product I will use only the fruit or the vegetables without any addictives or preservatives. The consumer will be able to identify the different in the first spot about his juice.

Why I am conducting this research?

The real purpose of conducting a marketing research is to understand the market I am entering with the implement of its Competitive forces, Economic forces, Social forces, Technological forces, and Regulatory forces. After analysing these forces I will have more information, experience, and knowledge that are considered as a good evidence to continue in my project or to choose another strategic planning or even insurance to alter the responsibility taken in my business. A great business idea does not mean a great success for a business. In fact great planning and analysing of data and evidence in most of the times leads to a great business.

My idea is to provide fresh juices instantly and/or as per command to my consumers. The juices are made from organic fruits or vegetables; in this formula there will be no addictives no preservatives or any additional chemicals to preserve the juices. Furthermore, the juices will be formed from a combination of either fruits, vegetables or both of them, in total the mix goes to 60 juices. Some juices may contain herbals and/or spices but the information will be clearly delivered to my consumers.

Nowadays most people like to drink a quick drink and enjoy the rest of his/her day; for a while the appearance of energy drinks had made more people to consult these drinks and consume more on a daily basis. However, disease, cancer and other body failure had incurred alongside with these juices, many consider it as a correlation not a cause; therefore, There are the questions that led researchers at the National Cancer Institute, at the department of Agriculture, and elsewhere, to begin looking for specific substances in foods that could be providing protection against disease. In the process, they have found quite a few.

A tomato, along with vitamin C, vitamin A, and several minerals, also has 10,000 other chemicals in it, most which researchers are trying to isolate, identify, and study (US Agriculture department of studies).

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The phytochemical¹ that researchers have revealed are changing the way we think about food, especially fruits and vegetables; for instance, broccoli contains a substance that may prevent breast cancer. Citrus fruits have substances that make it easier for your body to remove carcinogens; therefore, decreasing the chance of having a cancer disease. Grapes contain a phytochemical that appears to protect each cells' DNA from damage. Similarly, a number of green vegetables contain phytochemicals that appear to offer protection against cancer-causing substances. The list goes on and on: broccoli, Brussel sprouts, cabbage, cauliflower, carrots, collards, kale, kohlrabi, mustard greens, rutabaga, turnip greens, red beets, peppers, and much more vegetables that appear to have cancer-preventing phytochemicals (Agriculture Studies).

It’s clear that the consumption of fruits and juices will benefit the health of most consumers; furthermore, these juices are fresh and ready for them. The most important that these juices are made from fresh vegetables or fruits and no addictives are added in it. This makes my juices healthier, unique, and better to consume. Such business is rare in the market of Ottawa; other additional point for my business is this market is that there are people more concerned with health related issues. My project is concentrating on using organic juices that are made in Canada or exported from abroad.

Most businesses succeed with the success of their promotional campaign. Because many people do not have the time to visit and search for you, you probably need to reach them trough social media, TV, magazines or other promotional methods. Therefore I have to plan to reach these consumers with the idea of my product and services wherever they are; for instance, I can consult health clubs, diet clinics and other general clinics around Ottawa.

Competitive forces One of the most important forces that can affect any business is the competitive forces. For instance, new ideas were always successful and having less competition, but evolving these ideas and make them work is the objective of my researches. Therefore, I had many research about my competitors and how I will make a difference from them and how I can be unique in my services and products that I will offer. The market share with some of these competitor will not be easy to enter neither to profit and have a good chunk of it; conducting such research will emphasize to me the importance of how big my business should be and how I should enter the market of juices. Thus, a SWOT analysis is very important to me, by understanding my weaknesses I can challenge and alter them to be more effectives; while emphasizing my strengths and evolving them in my advertising and marketing system. There are not many competitor in the Ottawa market; however, the presence of a big company like V8 is very important to analyse.

V8: was developed by W.G Peacock (1896-1948), he was the same one who funded the New England Product company; this company manufactures individual vegetable juices. In the beginning of its production the brand name was Vege-min; however, the company did not know a great success, in 1933 Peacock started a new marketing strategy and developed the product under the name of “Vege-min 8” by providing eight kind of juices, later on he received a recommendation from an Illinois grocer to shorten the name to be “V-8”. In 1948, the Cambell Soup Company acquired the brand, and has maintained continuous production of the beverage through the present day while developing it and creating new ideas. The company provide 100% fresh juices originally made from tomatoes and other seven vegetables like: beets, celery, carrots, lettus, parsley, watercress, and spinach. Its formula is combined of 87% of tomato and rest is the several varieties added. The drinks come as Original, spicy, Lemon, Picante, Low-Sodium, and Organic. However, this company does not provide an instance juices which mean that V8 will

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need to process the vegetables pack them in bottles and sell them later on with an expiry date. The company has introduced recently a wide variety of juices that are mainly made from fruits or veggies but they are not offering a wide mix of vegetables and fruits in the same times. Furthermore, the company is much known in the international market and is directed by Campbell Company which is one of the leading companies in the world. Although, the company is remaining the biggest competitor in my list and has more concern from my marketing research, I still conceder my success to be more reasonable if conducted and oriented in the right path 2.

Booster Juice : is a franchise brand was founded on 1999 by a student named Dale Wishewan of Sherwood Parl, Alberta, when he was making a camping trip with his friend Jon Amack. The same year Dale opened his first Booster Juice in Broadmoor & Baseline crossing in Sherwood Park. The company had known a good progress and development throughout the years that it had uncover. Later on the first store was opened in the US in late 2003 and later on Dubai, the company have few stores in Ottawa and it can be owned by individuals which make the franchise to be inconsistence in its services but with a slide difference in its products. It is a juice and smoothie bar dedicated to provide a smoothie experience. The stores offer fresh juices around the year. The company reached 200 stores so far in North America only and several ones around the world. They also offer fruits and veggies juices like Orange, Apple, Carrot, Ginger, beets, Pineapple and a mix of the mentioned fruits or veggies; however, the company is more concerned about the Smoothies more than the juices, again they don’t offer additional herbs or spices. The company is well known and having a great success, can be a competitor for my business and share the market with a big range. While tracking some comments about the business, I found out that some customers had found that the stores are not similar in their offering and not consistent in their services as well 3.

LaBoccajuice: is a Lebanese restaurant located in Bank Street, the restaurant offer many type of juice and they are made freshly and instantly. The variety of the juices is not much wide and the restaurant is not much big, it can be considered as a small business that operates with a maximum of 4 staff. Alongside with the juices the restaurant offers also ice creams they call it as Home Made Ice Cream, the ice cream came in a form of Lebanese or Italian Gelato. The website still under construction and it does not offer much information about the business neither the product nor services, except the name of “All natural healthy fruits”. In general the restaurant does not share the market in a big size as mentioned before it is a small enterprise that covers a medium range of people; however, I have to take its place and location by consideration to be at least far from it. On the other hand, the company does not offer or make any vegetables drinks, no spices flavours, and no herbals added. While tracking some comment about the owner and the staff a recognized that they are more pleasant and the restaurant considered being a free-alcohol restaurant 4.

In the market of fresh juices, there are not many competitors in the current period; however, with the concern from the society about health, the rise is to be accrued in the coming years for sure, therefore, I have to take by consideration the case of the growing market of the fresh juices in Canada and Ottawa particularly. On the other hand, in this research that it is considered to be modest research is very important to have a look on the actual market and the competition in general. The greater competitor from the modest list that I had formed is V8 Company, because it will take a great share market and cannot be

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competed easily. Therefore, creating a unique idea and promote it with a valuable facts and right marketing plan is the only choice front of me.

Economic Forces There are several factors like level of employment, rate of inflation, rate of interest, demographic changes, and fiscal and monetary policies determine the state of competitive environment in which a firm operates, these forces will affect the firm’s marketing activities outcome, therefore, determining the volume and strength of demand for our product. In this research I will concentrate on the demographic changes and the actual and previous world economy and their impact on the market and my business alongside. Configuring the population in Canada and especially in Ottawa will give me a clue about the share market and the number of consumer I am expecting to have on my long run operation.

Demographic The population of Ottawa was 774,072 in 2001 and 812,129 in 2006 with a growth of 4.9%; this means that Ottawa like other cities in Canada knowing a big growth in population due to immigration. For Ontario, the population was 11,410,046 in 2001 and growth with 6.6% to reach 12,160,282 in 2006this growth is impacting many markets in the region and one of the beneficent of this growth are restaurant. The growth of a population is always considered to be a good advantage for business; therefore, creating or expending a business in a growing market is a good plus to my business. (Population of Ontario and Ottawa, 2010).see Figure A.

Restaurant and food services The restaurant and food services are growing in every year; however the actual economic downturn makes many businesses to think twice before going for an expending of the products or services. While thinking of creating and developing a restaurant I have to make sure that my spending is reasonable and reflecting the real effects of the economy in Ottawa.

The recession, CPI, and inflation effects There are many facts that the economy in all over the world including Canada is still not recovered yet; this due to the recession of the US economy downturn in late 2008 and beginning 2009. Till the end of the actual year (2010) the world economy is still balancing between an increase and a decrease each day and month. Most businesses are afraid to expend their services; therefore, charging higher rate while providing the same product; this is known as inflation. If the inflation is higher, the customers tend to buy less and save more money, thus infecting most services profits.

In general taking by consideration the economic forces is a vital fact. The actual economy is definitely not much helping any business. People are spending less and saving more for the next day. Layoffs had created many homeless or jobless people around the world, Food and Restaurant income is based on those people that earn money and think to enjoy their life, or they don’t have time to cook for them self. However, the Ottawa resident are more testy people, they look to eat outside more than in their home, this is because of the majority of the residence of the city are working or student with a monthly income. From this research it is obvious that the market is good to open such restaurant.

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Social Forces There are many forces that impact the growth of any business in the market, it is very vital to understand the important of the social forces in my area that will be Ottawa, these forces include the demographic characteristics of the population and its values. As stated in the Marketing book “Marketers often segment markets on the basis of demographic information because it is widely available and often related to consumers’ buying and consuming behaviors” the common bases of demographic segmentation are age, income and life style which I will be looking to and understanding how it can impact the progress of my business. Social forces are also considered to be an important contributor to trends, are part of an environmental scan and impacting marketing.

Canadian Values:Every society has values that are important to it and that’s sets it apart from other nation. There are values that are important to Canadian that may not be fully shared by other societies. Indeed Canadian feel that its values are what makes Canada an attractive place to live. For instance, Canadian values include freedom, respect for cultural differences and commitment to social justice. Opening a fruit juice in the middle of Ottawa by an Arabic person will not have any difference from other ethnicity available in the city. Furthermore, Canadians respect everyone’s rights, they enjoy freedoms, and they respect democratic decision and they are a non violent society and they are known by their international role as peacekeeper. All of this contributes to a successful business regardless to the owner or the type of the business as much is respecting the regulation and laws in Canada (will be covered in the regulatory forces)5

Age:

In the latest news released by The Daily in Statistic Canada shows that 69% of the population of Ontario is between 15 years and 64 (Figure A), in this age segment I have all my potential consumers. From teenagers that they like to have fresh and original juices while they are doing their exercises to older people that they are more concerned about their health.

Lifestyle:

Lifestyle is a mode of living of individuals in their organization or community; they tend to choose products and services that meet diverse needs and interests rather than conforming to traditional stereotypes. Due to the great change and variety in the Canadian ethnicity and origins, there had been many new lifestyles that were created in the last decades. There are no more unique characteristic for one ethnicity; for instance, banker can be a fitness person and a normal worker a tennis player. Life style creates a good ambiance for business and provides a mass market instead of a niche market to them; because many restaurants are visited by different ethnicity and group category.

The characteristic of the social forces that had been defined in this research is very important to decide which service you need to look for. A normal restaurant with a small menu will not survive in the mass market of restaurant in Ottawa that contain more than 400 specialized restaurants; therefore, the structure

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and building of such restaurant need to be taken by consideration, the working forces and Chefs I will employ equipment I will use and so on.

Technological Forces

Nowadays, no business can be built or ran without the implementation and use of technology. It start from machines used to website running. Each component and material used in the production section is to be involved with technology; therefore, businesses need to be fully equipped and their staff needs to be fully aware of the daily running system. Companies employ specialized technicians for this purpose, other maintain their website with a reputable web hosting to keep their website will ran.

Transportation Since I am planning to export most of my fruits and juices form the US, Mexico and Morocco, I have to make sure that my transportation service is well organized. A delay on delivering my goods may cause my running to be stop or lose a big portion of my customers. Such step is very important because it makes me a unique restaurant that bring its own fruits and veggies; Furthermore, it reduces my cost and give me the choice to select the best products I need for my consumers; however, any mistakes may cost me a lot, I still can use local suppliers to fit my market demand but again my customers will definitely not notice the difference from other competitors.

Website Creating a website for my business is very important as well. Website is very important for a high performing business; it eases the reach of consumers to my products, give them the opportunity to visit, know, and even order my product while they are at their homes, or even at the office. Creating a professional website is vital to me, as a technological inspired person and because I know that the new generation is consulting their computer more than anything else, I have to make sure to implement such key component in my business. Website will assist me also on advertising, publishing, promoting my products, this technology can be used also to gather more data about who visited me and how much time he/she spend while visiting my website. The E-operation management is very important for any business that want to reach a wide market and with ease and less spending ( e-operation management).

Technology is growing very fast, since it facilitates and eases our life much people tend to use it often. Making an advanced step on the technological aspect of my business is very important to stand among the specialized restaurant in Ottawa.

Regulation forces

I will be looking to export most of my variety of fruits and vegetables, most of my export will be from US, Mexico, and Morocco; these countries are well known in providing a good fruits; unlike US and Mexico most products exported from Morocco are much cheaper and easy to export. On the other hand,

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the US department of agriculture introduced a standardized inspection certificate for apples, onion, and potato destined for Canada 8 export fresh fruits and vegetables from the US.

Export Permit

If I am planning to export my fresh fruits and veggies from abroad, I will need a permit to export products that are on Canada's Export Control List. Also if I am thinking to use my own transportation I will need another authentication for my transportation while entering the US borders.

Trademark Law, Building Permit (Municipal), and Business Registration (Federal)First, I have to register my Trademark to protect it. Second, I need a building permit grants legal permission to start construction of a building project (if required). Last, since most Businesses in Canada need to register with Canada Revenue Agency to get a Business Number, I have to get one at my start (Canada Business, 2009).

Food Premises License (Municipal)

If I am intending to open a new restaurant I will be required to get a food premises license to be able to operate food premises. The restaurant staff has to be fully licensed and carrying a hygiene and HACCP certificate, any person is involved in the preparation of food need to do a blood ted each six month.

After finishing the research in regulatory forces, I came across vital information on how to open a business and how I can keep it running under the regulation of the province and the municipality, any failure to do so can cost the business in general a lot. As a new beginner I will contract with a lawyer that will issue me with valuable information and procedures to reduce risk of failure in my business.

Conclusion

The opportunity to conduct an e-scan environment was a very good tool for me to elaborate my knowledge, practice what we had studied in the course of marketing and understand what the key component to open a business is. I had to use all my knowledge and measure my ability to search for solution.The competitive part in my research was modest since I knew that the idea to open a 100% fresh juice and vegetables café is almost unique in the market of Ottawa, my competitor are few but the weight of V8 company is the only concern I have to take by consideration. In my marketing complain I will try to emphasize the idea of fresh juice and how I will deliver it on the same day rather to package it in bottles for the almost one year like V8 does. Customers will have an idea even how their fruits and veggies looks like since they will be on racks that advertise the fresh and good fruits.

The economic force is a challenge to any person or a stimulus depends on the situation we are running in, the actual economy stage is from turndown to an expansion; however, the data given and numbers that show on a daily basis are not whelming the market. My research showed a good impact of the idea on the consumers and can be widely accepted by people reside in Ottawa. The social forces is a ggod advantage

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in the market of Ottawa, from this secondary research I observed that the service may be launched but the success depend on the quality and promises given to customers such new concept and idea should be tested in the market and I have to conduct more surveys to illustrate the real customers behaviors towards a fresh juice market. On the other hand, I am planning in doing more researches in my business by conducting interviews, scanning the market, doing surveys, following up on my works, and getting feedback in the short and long run. Conducting surveys will be in aim to understand how people will accept the idea and what types of juice can be created or what should be removed from the menu. The regulation forces are vital and can be controlled by hiring a lawyer or even an advisor consultancy.

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Apandices

1. Food premises

Required by a person who owns or operates a food premises, which can include a bakeshop, a butcher shop, restaurants, cafes, cafeterias, dining rooms, lunch counters, catering services and ice cream parlours but does not include a refreshment vehicle. Does not apply to a food premises where only pre-packaged foods, frozen drinks or hot beverages are sold.

Figure A

2. Phytochemicals are chemical compounds that occur naturally in plants, such as beta-carotene. The term is generally used to refer to those chemicals that may affect health, but are not yet established as essential nutrients.While there is abundant scientific and government support for recommending diets rich in fruits and vegetables,[2] there is only limited evidence that health benefits are due to specific phytochemicals] http://en.wikipedia.org/wiki/Phytochemical

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BibliographyHellen, R. (2001). Managing for Excellence. London: Dorling Kindersly Limited.

Hemingway, D., Kennedy, M., & Eleanor, S. (2009). 2008/2009 Exporters'Encyclopedia. Pansilvinia : Dun & Bradstreet.

Janenko, P. M. (2002). e-Operation Management. New York: AMACOM.

Rodger Constandse. (2007). Time Management . Retrieved June 07, 2010, from Timethoughts: http://www.timethoughts.com/time-management.htm

Statistics Canada. (2008). Market Research Handbook. Ottawa: Minister of Industry.

V8 company Inc. Retrieved November 10, 2010, from V8 Web site: http://www.v8juice.com/FAQ.aspx#juiceInvented

Boosterjuice Company Inc. Retrieved November 10, 2010, from Boosterjuice Web site: http://www.boosterjuice.com/

Laboccajuice cafe. Retrieved November 10, 2010, from labocajuice Web site http://www.laboccajuice.ca/

Canadian values. Retrieved November 10, 2010, from Canadian Values Web site www.Canadianvalues.ca

Hemingway, D., Kennedy, M., & Eleanor, S. (2009). 2008/2009 Exporters'Encyclopedia. Pansilvinia : Dun & Bradstreet.

Canada Business. (2009, September 30). Retrieved September 30, 2010, from Canada Business Web site: http://www.canadabusiness.ca

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