Write a 8 page essay on Examine the market research required for the catering company as a new start-up sole trader company.Subramaniam and Coyne (2013) emphasised that due to the intensity of rivalry

Write a 8 page essay on Examine the market research required for the catering company as a new start-up sole trader company.

Subramaniam and Coyne (2013) emphasised that due to the intensity of rivalry that start-ups face, market researches are very important for them in ensuring that they take the right actions towards their targeted market. In the current case, the start-up sole trader is a catering company with 5 workers and 1 owner. All workers have the same level of skill in driving, baking, cooking and making of table. The staff of the company are considered well motivated for the roles they are assigned.

The business idea of the new start-up sole trader company is to organise parties for individuals, families and corporate bodies. This means that the company is broadly in the hospitality industry as its business orientation requires the provision of food service to clients (Davis, Eisenhardt and Bingham, 2009). This enterprise is considered appropriate for the sole trader given that the sole trader has personal experience in catering. There are various price strategies available for the sole trader. On the whole, pricing is based on the client size and the nature of service requested. This is because there are general services and prestige services. There is also a pricing formula where the larger the client size, the lower the price per head of service received. An ideal price for general service is $10 per head whiles that for prestige service is $15 per head. The sole trader liaises with external suppliers who use the route planning model of logistics as way of achieving efficient logistics (Ciborra, 2006). The current market segment of the sole trader is corporate institutions, meaning there is a business to business (B2B) business model (Stewart and Cohen, 1994). The use of differentiation strategy is the company’s major strategic option.

Whiles the sole trader is in the market also, constant research that helps them to come to terms with the changing dynamics of the market is also necessary