Business positioning

The potential competitors are shops, which are located in 5 to 10 minutes to the field. In general, they provide wide range of products that varies from small household items to everyday amenities, like packs of laundry detergent or cereals.

The distinctive feature of our service is the provision of sportsmen with specified selection of foods and beverages that meet their needs in recharging body’s energy balance. Moreover, it is not necessary for them to be distracted from the game, by leaving the field and looking for shops. Besides the above mentioned facts, psychological phenomenon takes place: when people see food, they unconsciously want to eat it. So, the demand is provided anyway simply by human nature. Another feature that significantly differentiates our product positively among our competitors is that regular monthly surveys will take place. Based on the most desirable and preferable items the selection of products will constantly change and improve.

Pricing

As the business project is related to the food-service industry, the competitive-pricing strategy will be selected. The fact remains that it is the most highly used way of pricing strategy. All the costs will be definitely covered.

Food-pricing (in KZT)	Beverage pricing (in KZT)	Hot drinks pricing (in KZT)
Kitkat 100 Snickers 100 Albeni 80 Bounty 120 Twix 120 7Days 140 Corny 180 Fitness 150 Biscream 150 Belvito 110	Water 100 Vitamin-C 150 Fuse-Tea 130 Nestea 130	Coffee with milk 120 Espresso 150 Cappuccino 120 Hot Chocolate 110 Double-hot choc 120 Hot Chocolate with milk 120 Tea with lemon 120 Black tea 100 Water 50 Plastic cup 20

In order to have profits in the both short run and long run, the prices will be established according to the market price of all the food and beverages we are going to sell.

Firstly, it is not necessary to establish higher price at the earliest stage because the first impression of customers is the main objective of any beginner project. Moreover, low rental costs allow us to establish market price for the products and, anyway, expect the reaching of market equilibrium.

Secondly, implementation of lower prices is also inefficient due to human nature factors. Football is the most popular sport in the world and it is all about passion, competition and constant tension. Thus, when football players are immersed into the game, the only factor of being a champion puts backwards all the thoughts about the price, whether it is 10 KZT more or less than the market price. A constant need of water and beverages definitely will keep the demand constant and even make it higher.

Distribution

The vending machine market is quite familiar in Almaty; so there are almost no ways to completely differentiate among other competitors with a brand new distribution strategy. Analyzing the industry, one should note that almost all VM operators mainly distribute their products through buying it from wholesalers at lower price and thus, make an appropriate markup when selling them.

As the project location is Almaty city, almost all branches of food-service industry, as shops, bean-wagons, vending machines, and so on, purchase their products from wholesalers in Altyn-Orda, “Optovka” and official suppliers.

At the first stage, it was decided to purchase products from suppliers in “Optovka” and other bazars, which is the common practice in this area. During the first time, we are planning to build up relationships with the official suppliers as “Coca-Cola”, “Nestle” and others. Hence, as one of the main goals in the nearest future is to expand the business and provide the service on other highly demanded fields in Almaty, the direct supply from manufacturers of the products is cost-effective strategy.