Q7. If you do not live in Stratford would you be willing to travel and buy from city kebab?
I have asked this question to find out if customers who live outside Stratford would be willing to come to buy food. I would expect the answer to be yes because there are not a lot of kebab shops offering at good prices. For these certain amount of customers I would be advertising, giving out leaflets and also for example if a customer buys more than £12 pound I would give a free bottle coke. I am going to use advertisements such as posters, billboards and information of the local area newspaper.
Q8. What country of products would you wish to buy?
I have asked this question to find out what country food people prefer buying, which would give me an clear idea what to sell according the results. I expect the answer to be Turkish because there are not a lot of Turkish shops offering kebab. If I produce different customer foods this would make me maintain more profit and good reputation against the customers. I am hoping this would give me information about what country food people would like to eat because this would increase the name of the shop.
Q9. How often would you shop at the City kebab?
By asking this question I am expecting most of the customers saying weekly. The reason why I have asked this question is because to find how may customers I would receive and also the income figure. If the customers in Stratford do not shop weekly this would mean I would need to advertise City kebab in different areas to maintain customers. I would also learn an average of customers that will be buying from City kebab.
Results of questionnaire
Analysis of questionnaire
In part of investigation I had decided to get people’s opinion about how they would react with a new Business. The purpose of this was to get information, which would tell me how to set up the business. In my interviewers I have asked 30 people about what they would think about a new business opening. I did not ask anyone who was on the street; I asked people who go normally shop at Stratford shopping center and students who study there, because I think it would give more information. For this part of investigation I have used primary research which is data collected for a specific purpose, this involves going out and carrying questionnaire and interviews. This method can be expensive and time consuming. The advantage for primary research detailed information can be collected and the customers opinion can be collected which is useful, on the other hand the disadvantage is it will take time and also to analyze the results. I would also say that if the questions were not weal thought the results could be misleading. The advantage for interviews questions can be explained if the consumers do not understand and a lot of information can be collected. The disadvantage is interviews are very time consuming.
Analysis of the results
The results from question 1 show me that 22 people said that they’re not enough kebab shops, which show me that it is safe to create a business. This shows me that if I can create a business it would earn profit. I could start the business by renting a large shop in Stratford shopping center. The problem I must be careful is that I must not open the business near Mc Donald’s, which is near the entrance. I would provide my business near the middle of the shopping center, which there are no food shops that can affect me. For the business I must get a bank loan to start the business and also I would need it to pay the new stocks that will be coming in.
The results for question 2 are that most people accepted fries and chicken. This information shows me that I would need to put chicken and fries in my kebab shop. There was another common food selection, which was lamb I would add this as well to earn more profit. The more food the more customers would get attracted. This is very important for the business to run successfully to put what the customer customers wants. According to this information I would be investigating more products and also other businesses where I can buy stock. Before buying stock I would need to investigate places where they sell kebab for cheap prices and quality food. I would add more products to keep the customers in control, which can lead to be a market leader.
The results for question 3 shows me that most people preferred vegetarian food and meat, which gives me a clear idea that I must sell these food. I would be adding more food to make the business run successfully and also to attract customers. The reason why I would be selling these 3 foods in Stratford is because no shops there have lamb and chicken, which shows me that I could attract customers a lot. This would also increase the profits of City kebab. As I would increase the food that means I would increase the price.
The results for question 4 shows me that people have chosen sweet food such as baklava and chocolate éclair, which is sweet food for customers. The reason why I have decided to add extra food like sweet is to attract customers and to earn more profit. I did not put these ideas as it came through my head, which could have a big risk to the business. I did this according to my investigation, which shows me that no shops in Stratford sell sweet food, which is a big advantage to increase customers and profit. I think such ways like this could attract customers because people always like to try new things. The pricing is very important for the customers; the technique that I would use is selling my kebabs for example 2.90 rather than 3.00. The reason why I would do this is because as you can see 2.90 looks very cheap which customers do not understand. This could attract customers a lot because people do not release there is only 10p difference.
The result for question 5 shows me that customers are interested at price the most and quality with also make. This shows me that I must be careful with the price, quality and make for successful business. I make sure the price is at a stand arable price for the customers. In turn to make the customers happy I would need to focus on the quality. For the price I would decrease the price by pence to make it look cheap and to attract customers. This is very important element to attract customers. The quality is very important as well to make customers satisfied which means I must sell quality food to make the business running good. I would again use the skill in price is which making the price look cheap for example 2.90 rather than 3.00. As you can see it looks much cheaper the truth is that there is not much difference which customers don not understand. I would use this crucial price point to attract customers as you can see price is the most important element that I must control.
The results for question 6 shows me those customers are willing to pay £1-5 the most then £6-10 as you can see on the bar chart. From this information I would need to make my prices at £1-5 and £6-10 to make the business run successful. Therefore I would apply to the pricing strategy at the certain amount of level, before this I must calculate the profits and use my basic skill to attract customers. According to this if the profit increases I would increase the prices slightly to earn more profit. I would not increase it a lot incase the customers get suspicious. For the pricing I would crucial pricing point to sell my food. This is because it makes it look much cheaper so therefore I would sell more kebabs. The disadvantage for this is that I will have to sell a lot of my product in order for me to break even and to make a profit. Therefore I would investigate the local prices.
The results for question 7 shows me those customers from different areas are willing to come to City kebab and by food. This information is very useful to me because it will give me an estimate how much people would be coming. On the other hand some people have said no which means I would need to make delivery for customers who cannot travel and come. The advantage for this is that I will attract customers in different areas. The disadvantage for this is that people might not come in the shop and buy rather than keeping doing delivery, which would cost a lot because we must pay for driver, motorbike, and petrol etc. This would decrease the profits. According to this I would do delivery only outside Stratford, which would attract customers. This is very important for running the business successfully.
The results for question 8 shows me that I would need to produce Turkish kebabs to run the business successfully. It is very important to do what customers want for the business to run successfully. The question is very important to me because it shows what type of country food customers would like. According to this information I would make Turkish Kebab, which is very common theses days. I think this would attract customers because when they come to the shop they see what they normally like. If I went a sold Italian food, which was not very common, I lose the business because people do not like that kind of food which therefore would not attract customers.
The results for question 9 shows me that customers are willing to shop at city kebab every week which shows me that the business will not have problems of profit. This would mean for the business that there would be a weekly income depending on how many customers come and buy kebabs in City kebab. In order to attract more customers I would improve public relations such as competitions.
The reason why I have chosen a bar chart is because when you look at it once it shows a pictorial view about what is happing. I think it is easy to see which questions are bigger.
Marketing
Pricing strategies
The price that you charge can depend on what you are trying to do. If you want to attract a lot of customers then a low price is better, but if you know that the product is better then you may charge higher price. There are three types of price
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Low price – to attract lots of customers, you will have a price lower then your competition.
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Average price – you price will be the same as the other companies, so you will try to get customers other ways.
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Higher price – if you know that the product is better then your rivals, and your customers know that then you charge a higher price.
My price will be as low as possible, so that I can attract the largest number of customers. I would also have goods that are of high price, that are specialist and only I sell them.
How to price?
This is very important, as you must decide how to price your products. There are six main ways of pricing your products:
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Cost plus pricing – this is where the company will figure out how much a job costs, and then add on certain percentage this is sometimes called a mark up. An example is a garage, a repair may cost £100, but when they add on their mark of 40% it comes to 140.
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Hour based pricing – this is where the work that is done is charged for by the hour.
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Penetration price – this is a company will bring out new product and sell it very cheap, so that it gets in to market very quickly. When they have established the product in the market they would raise the price.
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Skimming – when you first realize a product in to the market at a higher price then the lower price later. This is because sometimes customers will like the prestige of having your product first, before anyone else. This is called skimming as you skim your customers first selling to the richest.
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Destroyer – this is where you price your goods or service at very low price so that you put the other companies with that service or goods out of business.
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Crucial price point – this means the pricing difference between £2.90 and £3.00. A customer will fell that the £2.90 is cheaper then the £3.00, even though it is only 10pence. This also applies to £1.40 and £1.50, this works on a number of prices.
My pricing structure is I would plan to use the crucial pricing point, and to sell my goods at a penetrating basis. This is because using the Crucial pricing point makes my food look cheaper, so I will sell more and attract more customers. I would also use penetrating pricing because it would attract customers.
Evaluation
The method of pricing that I have chosen does have some disadvantages. The main disadvantage is that I will have to sell a lot of my food in order for me to break even and then to make profit. Also if I am going to try and have a price that is lower or the same as my competition then I will have to research in to other prices.
My caption plan would be first:
- My palace
- Pricing structure
- Target group
After evaluating my action plan I have found that I need to cover these areas in the next action plan. I will now create a new action plan, covering points that I missed. The way that I did my action plan is I think it is quite good, as I have organised it into logically fashion.
Promotion
On the other hand I have decided to describe promotion because I think it would be useful to my business. The word promotion means giving information to the public about a new business and persuading them to but it. It is normally done buy giving leaflets out to houses, which is a good way of persuading. City kebab would be giving information to the public to persuade to buy kebab and it would done by giving out leaflets. Promotion is also about personal selling, direct marketing, sponsorship, sales promotions, and public relations.
The fourth part of marketing refers to process of informing your customers of your company’s products. To make the customers aware that your products exist they’re a number of ways doing this such as:
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Media advertising, which are televisions, magazines, Internet and Radio.
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Personal selling which is involving a sales person.
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Non-personal communication that is persuasion advertising, competitions and also samples.
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Other promotional types such as public relations exercises and also free publicity.
Personal selling to the customer on a one to one basis. The advantage for this is that the questions can be answered straightaway; problems can be sorted out at a personal level. The sales man remains with the customer’s case through out the business.
Advertising is the a very good way of telling the public about a new business because the public always want to try new things out, so therefore it would attract customers. The main way of advertising is:
- Television
- Radio
- Travel trade press
- Posters
- Cinema
- Internet
Television advertising I would say that it would be expensive for only a few minutes so this is not a good way because it cost to much for less time. The advantage is that people would hear about it, but the disadvantage is that it would cost too much.
National radio and newspapers are cheaper ways to advertise and newspaper is even cheaper still. The advantage for this is that people would learn about it and also less cost, but the disadvantage is all people don’t listen to radio and read newspapers.
The trade press is another good option when wanting to aim your product at a particular market. The advantage for this is that people would hear about, but the disadvantage is that some people are not interested in these kinds of things.
In my opinion I would say that posters would be the best way to advertise City kebab in different areas because I think that people always look at the poster and get ideas. I would make sure the poster is near all the Stratford bus stops and the center of Stratford. The advantage for this is that people could learn about the new business. The disadvantage is that people sometimes ignore posters. The reason why I would say posters is a good idea of advertising is because if people ignore it they would still hear about it.
I would say promotion is very important way of persuading people to buy food. I would do this by in front of City kebab I would put images of burgers and kebabs etc, to make customers fell hungry and also to attract customers. I would stick on the window special offers for the students. The reason for this is because the place I have chosen up is near schools so therefore students would get attracted to special offers.
The reason why promotion is very important to City kebab is because it is a good way of attracting customers and ways of advertising city kebab. It normally depends on the degree of competition in the market.
There types of promotion such as above the line and below the line. The choice can depend on the target market, if the market is local, the advertising, whether the method chosen will complement other elements of the marketing mix.
City kebab could use the below the line promotion in order to gain publicity which involves media over the firm has control, such as trade fairs and direct mail. City kebab could use personal selling which includes sales team who make visits to customers. City kebab could use sales promotion, which is like buy more than £5.00 and get a can of drink for free. I would also say I would make a discount for all students by providing a 10% off for students only. This would attract students a lot. I would also provide sales promotion to family customers who big a huge amount of food such as £15.00 and more free humus and bottle coke.
The word public relations mean a business involving communicating with its different shareholders. I will aim to provide the public with a good image making members of staff where food shirts which would have City kebab written on them and the shop telephone number. This would make the customers more attractive to the shop. The members of staff would sometimes go in conversation with the customers such as talking about football, which would make them happy. I would provide daily newspapers for customers to read while waiting for there food. This is because it would take their time rather than the customer sitting and waiting for food, which he would get bored.
As I said I would provide free gifts to customers who buy expensive food such as more than £25.00 would get two extra pita breads, humus and Tamara salad. According to my investigation there are students from Rokeby School, which are near Stratford center. This is very useful to me because I would put special deals such as buy kebab and get a soft drink, this would make the students happy and they would tell there friends which could raise the business.
The way that I would be advertising my business is that I would order leaflets to be given out to all the areas such as Stratford, east ham, forest gate and also Becton. I would provide free delivery for towns except Stratford, which I think, would attract customers.
