Question 22

It was the frustration of being unable to find high quality take-away meals that led Tim Buxton, 32, to leave his job as a recruitment consultant. Due to his busy lifestyle, he often found himself eating average tasting convenience foods, which satisfied his hunger but little else.

These experiences led him to spot a niche for providing busy London workers with an outlet to buy good quality ready meals. With this in mind, Buxton, a former army captain, quit his City job and went to work in a South London delicatessen, where he learnt about catering and retail.

He opened his first outlet in Fulham, West London, in January 1999. The shop was an immediate success, proving popular with commuters making their way home for supper. A variety of dishes are on offer, from traditional favourites like lasagne and shepherds pie to more exotic choices such as Mediterranean beef casserole, costing between £3 and £5.

Buxton’s idea has proved to be a recipe for success and he has since opened another outlet in London’s West End.

(Adapted from Natalie Graham, Financial Mail on Sunday, May 21 2000)

Questions

1 a) Explain what you understand by the term ‘niche marketing’. (3 marks)

b) Give reasons why Buxtons Gourmet To Go is an example of niche marketing. (4 marks)

2. Outline the advantages and disadvantages for Tim Buxton of operating in a niche market.

(8 marks)

3. Evaluate the decision to expand the business to two outlets. (10 marks)