UNIVERSITY OF ZAMBIA

MANAGERIAL
ECONOMICS
STUDENT ID: SEM 191095
NAME: LUSA MULONGA
4/11/2021
This academic assignment will outline the name of our restaurant, a business plan/industry
analysis; it will include a market analysis and a market plan to convince the Chinese business
man to invest in our restaurant to be located outside the Graduate school of business, PO Box
32379 LUSAKA, 10101, ZAMBIA.

Our restaurant will be known as the Fine Dine grill, with our motto strive to excellence. We will
look to build a developed marketing program and an organized marketing plan based on industry
trends. A safeguard will be put in place to ensure the restaurant is not under financed.

Our business plan will have a well described market analysis in which we will analyze the
qualitative and quantitative assessment of the market as well as the size in both volume and
value. We will also include customer segments, buying patterns, the competition and barriers to
entry. This section will demonstrate our expertise in this particular market and its attractiveness
from a financial standpoint.

Our plan is to segment our market and divide it into smaller groups of buyers with distinct needs,
characteristics and behaviors. The segmentation will consist of dividing into groups based on
variables such as gender, age, family size, religion, race and nationality. These factors give us a
wider variety of offers and options to our esteemed customers. It also shows our ability of having
a world class staff to prepare dishes known in various countries all over the world. This is
essential because we have different students from different regions of the enrolling at GSB, and
the University in general, with their own respective cultures. And as an upstarting restaurant, it
will be our goal to offer different dynamic ranges to better suit all our customers. All this
information is vital and needs knowing to assess the size of the target market and to reach it
efficiently.

Our target market for this market analysis would primarily be the students of the graduate school
of business in addition to other students from other schools at the University of Zambia.
Furthermore, the lecturers, members of staff and Parents/Guardians would be beneficiaries of the
services offered by the restaurant. This will look more at the qualitative side of the market
analysis by looking at what drives the demand. It will also add more relevance with clear
segments with different drivers of demand.
The size of the market is another vital aspect of our market analysis. In this area our main focus
is to, firstly, look at the size of the market. The University of Zambia has roughly more than 30
000 students on campus; with these numbers it is safe to say that the size of our market will be
very large in number. The second factor we have identified is the number of potential customers
and the value of the market. It is very important to look at both numbers separately. As we have
already established our main customer base would be the students of GSB as well as students
from other schools. After a further analysis we can estimate our range to be 500-600 students
with additional 90-100 members of staff, lecturers and guests at the GSB hotel. Given this
information, our market value would be around k200 000.

The main competitor to the restaurant would be the Nadia’s food center located next to the dean
of student’s affairs. This establishment has been operational for a while and has good value for
its customer services. One of their major strengths is the environment around it and ability to
provide students with spacious and comfortable sitting arrangements which appeal to many.
However, one of their weaknesses involves prolonged time taken to give desired orders to
customers, leaving some to be frustrated and unhappy with the service. With this information we
will ensure that our meals are saved on time to not delay the students from other academic
activities they may be engaged in at that particular time of the day.

Nadia’s food center is one the barriers which may potentially disturb the progress of our new
restaurant. As a new food establishment, one of our main priorities would be to advertise and
expand our brand of food as much as possible so that it is known to be one of the best restaurants
in Lusaka. This however will require a hefty amount of money to be pumped into the marketing
strategy for the growth of our restaurant. This could be another potential stepping stone or
roadblock in our way. These barriers to entry are an essential part of the market analysis as it
provides our investor the relevant information of what could possibly hinder the success of the
upcoming restaurant.

Using the structure-conduct-performance paradigm, we will provide an analytical framework to

make relations amongst the market performance, market conduct and market structure of our
upcoming Fine Dine grill restaurant.
One of our main objectives is to clearly describe our competitive environment in the market for
the services we are going to offer to the general public. In addition, we want to assess how this
will affect our day to day operations and characteristics within the restaurant. By using the
market structure, and we can achieve this by;

1 Characterizing our market by a large number of buyers purchasing the same dish, for
instance we could have a scenario of multiple students ordering Nshima with fish
everyday around lunch hour. This will give us an insight in whether this will influence
our pricing of the various items on our menu. It will also provide a platform to devise our
production strategies accordingly. Free and complete demand and supply information
would be available to us in this type of market which will include not having any
obstacles to enter or leave. A healthy competition of our prices would be encouraged.
Only a normal rate of return on our investment would be possible in the long run. This
setup will hopefully allow us to achieve economic profits should situations beyond our
control arise.
Conditions can be introduced to ensure the successful characterizing of the market
a) Many buyers and sellers can contribute to a small proportion
of the total market output that none is able to have any influence over the
market price. Homogeneous products can be introduced as a popular option for the
customers to enjoy. An example would be Shawarmas, burgers and fries. Each eating
establishment is likely to offer these foods on a daily basis.
c) Having no barriers to entry or exit can give other restaurant businesses an advantage
over potential competitors who are considering entering the market
d) It is essential for both the restaurant and our customers to possess all relevant
information. As continues to grow, we opt to have regular customers ordering/buying one
of our popular dishes on a regular basis.

A reduction of our transportation cost will be very effective in the day to day affairs of
the business. We would prefer to have all our stock of food and beverages delivered very
early and less frequently. An ideal time for us would be to have everything set up and
ready by 06am.
 2 Offering a unique product on our menu with no good substitutes. It is very important that
we have something which no other restaurant or food place can offer at the University.
We will look to offer display cooking stations where the customers will be able to see the
food being prepared live by the chef. This will hopefully increase their perceptions and
improve their opinions of the service delivered increasing the reputation of the restaurant
in the process. A wide selection of wines will also be introduced to cater for the various
preferences of our customers. This would give us complete control of the price range
with no comparisons to be made and giving us supernormal profits in the long run of the
Fine Dine Grill.
3 Dominating the industry. In such a market it would be essential to be interdependent.
This will allow us to distinguish ourselves from all other types of restaurants, where as a
strategic decision made by one restaurant will affect others as well who will also react to
them in ways that will affect the original restaurant. Thus competing food places would
have to consider these reactions in determining their own strategies. Such markets are
extremely common for both consumer and industrial products, and would increase the
diversity both in individual countries and on a global basis. However, there is. Some
feature one dominant firm, like information in computer chips; some feature two
dominant brands, like Coca-Cola and Pepsi in soft drinks; some feature half a dozen or so
major firms, like airlines, mobile phones or athletic footwear; and others feature a dozen
or more firms with no really dominant firm, like car manufacturers and investment banks.
In each case the number of major firms depends on how the market is define in terms of
product characteristics.
4 As a new restaurant we would also like to include an intermediate form of structure
between characterizing our market and offering unique items on our menus.

We shall conduct pricing policies of the business as a whole. The market conduct will involve
the number of potential customers, the existence and degree of barriers to entry and the existence
of economies of scale to the degree of product differentiation.

The market performance of the restaurant will take priority in our books to show economic
results and a better status to greater highs that flow from the industry as aggregate of firms. It
will deal with our efficiency, stability and progressiveness. Its dimensions are to include the size
of sales promotion costs, the efficiency of production, the price relative to the average cost of
production, the character of the product including choice of design, level of quality and variety
of our supply chain within the market and the rate of progressiveness of the restaurant.

As the Fine Dine grill restaurant, our mission will be to exceed the customers’ expectations in
every sense by providing an electric atmosphere with excellent and interesting food. The
restaurant will be an inspiring one and will please the customers hearing, taste, smell, and sight,
and provide an exciting creative environment. Customer satisfaction will be our primary
objective. Our employees will be well trained with and qualified with exceptional customer
service and will be empowered to make decisions based on the business philosophies.

We will provide reasonable customer satisfaction as well as serve tasty and hygienic food in a
clean and neat dining room with washing and toilet facility. With a reasonable rate and quantity,
We will be offering a variety of cuisines to suit the tendencies of the students who would be in
need of a quick bite in between classes to regular meals.

With the steady up rise of our restaurant, we will look to add entertainment by bringing in flat
screen TVs so that our customers can enjoy their meals while watching desired programs like
sports and documentaries or the news.

We will be keeping food costs at less than 37% of revenue. Furthermore, we will be expanding
and promoting the restaurant concept as a unique concept, spreading our marketing and
advertising all across the University of Zambia and Lusaka. We will accomplish this by hiring
employees who genuinely enjoy their jobs and interacting with our customers personally, so they
know that their feedback goes directly to the owners.

Our services will be in the following hours

Breakfast: 08:00am – 12:00 noon

Lunch: 11:00am – 4pm

Dinner: 7pm – 11pm

A home delivery service will be introduced and available in excess of k150 to facilitate students
who may be living in boarding houses close to the school who may find it difficult to physically
come to the restaurant at awkward hours. We will also be providing extras on the menu such as
salads, desserts, drinks (soft drinks and various juices) as well as ice cream for the hot weather
season. We will also be providing Chinese and Asian cuisines such as dumplings, noodles,
steamed rice, Chinese tofu and braised pork to name a few to appeal to our international
customers.

Special event buffets will be included for breakfast and dinner to the customers and especially
when board members, investors and visitors will have general meetings.

Our media targeting will include billboard advertising, distributing pamphlets, and advertising in
the newspapers and on local television broadcasts. Below is a rough marketing budget indicating
the various expenses we will incur during the running of the restaurant.

MARKET BUDGET

Title Fixed amount(s) Monthly Expenses Other Expenses

Billboard advertising K3000
Salaries K100,000
Transportation K1000-k2000
Supplies K200,000

Grand Opening K10,000

Total K3000 K300,000 K12,000

Our restaurants financial model is based on a business concept to “plan for the worst” but
“expect the best”. We feel starting up a restaurant provides something unique to develop a thirst
and a drive for success and to set it up at the best Educational institute in Zambia. We
acknowledge the fact that the restaurant business is a powerful incentive machine to maximize
our profits, uplift the quality and attract more people.

We aim to have our restaurant widely known around the University to then spread to all corners
of the capital city and bring good food and top notch service to our customers