Judgement – This is where the interviewer decides whom to ask.
The three sampling methods I have chosen are Area, Convenient and Random. I have chosen these because they will be easier to do because I will not have to travel far, I will be able to ask people in my local area around the area of the shop. If there are other Hair and Make up shops nearby I will ask people who shop there to fill in a questionnaire. I will stand outside the shop and ask every 10th person that passes to fill in a questionnaire as well. Young Females are my main target group.
Market Research Plan
I have decided to plan how I am going to carry out my research.
A market research plan is a plan of what I need to find out and whom I am going to ask.
Task 3
Questionnaire
- Gender?
Male •
Female •
- What age group are you?
Up to 16 •
16-25 •
26-35 •
36-45 •
-
•
56+ •
-
Do you like the name of the shop? G.L.A.M (Gifts, Lotions And Make up)
Yes • No •
- If a new hair and beauty shop opened in your local area would you consider going there?
Yes • No •
- Where do you currently shop for hair and make-up products?
Boots •
Superdrug •
Body Shop •
Claires •
Other • (if other please state.………..…………….)
- How much do you tend to spend on beauty products per month?
£5 or less •
£6-£15 •
£16-£29 •
£30-£50 •
£51+ •
- In what areas do you currently shop?
Leeds •
Wakefield •
Huddersfield •
Bradford •
Doncaster •
Castleford •
Other • (if other please state………………………)
- What kind of brand names would you like to see in my shop? Please tick as many as appropriate.
Maybelline •
L’Oreal Paris •
Max factor •
Rimmel •
Collection 2000 •
Chanel •
Clinique •
Estee lauder •
Other • (please state…………………………..)
- How much do you tend to spend on the following products at a time?
Facial products …£………………….
Make-up ...£………………….
Hair products ...£………………….
Fragrances ...£………………….
- How far would you travel to visit a hair and beauty shop?
1 mile •
2-5 miles •
6-10 miles •
11-20 miles •
21+ miles •
- Are there any other products you would like to see in my shop? ……………………………………………………………………
- How often would you visit the shop?
Every day •
Once a week •
Twice a week •
Every fortnight •
Monthly •
Questionnaire Responses
I have decided to display the answers of the people who filled in my questionnaire.
Below I am going to highlight the responses to the most important questions to my business. There are also graphs to show my results more clearly.
Where do you currently shop for hair and make up products?
This graph shows me where most people currently shop for hair and make up products. The graph also shows that most people shop at Boots for their products. I would have to do some research into Boots so I know what I am competing against. I chose to make a graph for this question because it may help me when I come to do more research on the shops people tend to visit. Boots is a really popular worldwide make-up branch and gets a lot of customers visiting each store so it may help my business if I use some of their ideas.
How much do you tend to spend on beauty products per month?
This graph shows me how much people spend on products per month. It shows that people tend to spend within the range of £6- £15. I chose to make a graph for this because it will give me an idea of how much customers will be spending in my shop per month. Due to the price ranges people are looking at, I will have to find out what products are in that price range.
What kind of products would you like to see in my shop?
This graph shows me what brands people would like to see coming soon in my shop. The results on the graph show that, although the other brands are popular, the most popular is Maybelline. I have chosen to make a graph for this question because it will help me when I come to deciding what products I should put in my shop. I will probably choose to put some of the above brands in my shop. It also shows that people want a range of different products and brands so I will have to make sure I stock up on all the brands people are wanting and not just the least popular ones.
Competition Survey
I am going to look at the competition I am up against and look at where they are situated, what goods they sell, the offers they have on, the design of their businesses and the customer service. I will do this because it may help me decide where to situate my own shop, away from all the others or maybe close to them so it attracts more people.
Bhs Ltd
White Rose Centre,
Dewsbury Rd,
Leeds,
West Yorkshire,
LS11 8LL
Debenhams plc
121 Briggate,
Leeds,
West Yorkshire,
LS1 6LX
The Body Shop International plc
9 Trinity St Arcade,
Leeds,
West Yorkshire,
LS1 6QN
Boots
The White Rose Centre,
Dewsbury Rd,
Leeds,
West Yorkshire,
LS11 8LL
Superdrug Stores plc
19 Windsor Court,
Morley,
Leeds,
West Yorkshire,
LS27 9BG
Target market, Goods and Services
These 5 shops are my main competitors, they are all situated in Leeds and have branches throughout the UK. British Home Stores and Debenhams sell mainly clothes but also sell fragrances, make up, accessories, furniture and much more whereas Boots and Superdrug mainly sell hair products, make up, fragrances and electrical appliances such as hair straighteners, hair dryers and curling tongs etc. The Body Shop sells things that help your skin, sun care lotions, fragrances it also sells make up. The target market for Boots, Superdrug and The Body Shop is aimed more at young women but older people shop there too. British Home Stores and Debenhams target market is older people and people with more money. Most of these, perhaps all of them, have their own Internet website so you could order your products online and advantage cards that collects points. When you get to a certain amount of points it takes money off the products you buy. Boots has a health programme that visitors can view online or talk about in store and also an in store chemist.
Task 4
Promotion
I will need to promote my business to gain more customers. I have looked at different types of promotion and found out the advantages and disadvantages of each.
Cost of Advertising
I am going to research into the cost of advertising. The table below shows the cost of advertising in different newspapers and radio stations.
I have found out that the cost for advertising is quite high especially for advertising in the newspaper. I wasn’t aware the prices would be this high. To advertise in magazines is within the price range £1,000- £20,000. Radio and cinema advertising is not as expensive, it is within the price range £500- £1,000.
Below is some more research into price rates for advertising. I have decided to look at the following information so that I get a general idea of how much it would cost to advertise my business.
Magazine - Price List
Single Advertisement Whole A4 page (portrait) £195.00 plus VAT
Single Advertisement Half A4 page (A5 landscape) £100.00 plus VAT
Single small advertisement 8.4cm (high) by 9.0cm (wide) £ 55.00 plus VAT
Local Banner Advertising – Price List
Small banner Ad @ 150x60 on home page £400 per month plus VAT.
Small banner Ad @ 150x60 on other pages £300 per month plus VAT.
Header banner on home page £600 per month plus VAT.
Advertising Rates For My Local Newspaper
Run of paper £18.20
Half Page (280mm x 10 cols) £5,096
Full Page (560mm x 10 cols) £10,192
Front Page (200mm x 3 cols) £2,060
Financial £19.42
Business Telegraph £18.20
Task 5
Constraints
If I open a business there will be constraints. Constraints are restrictions placed on organisations that can prevent them from achieving their objectives. They can be internal- from within the company, or external
Internal Constraints
Finance- This could be a problem to my business because it is difficult to raise money to set a business up. I would have to take out a loan or find a way of getting some money together. Then I would have to pay off the loan. If I borrow the money I will have to save up and pay back the interest rates.
Workforce/staff- This will be a problem to my business because I will have to advertise for a new member of staff then interview the people who are wanting the job. Then they may need training to make them better at the job. If they were then not good enough for the job I might have to let them go. This would take up a lot of time and money. Also if no one applies there will be nothing to put on the application forms.
Physical Resources- This will be a problem because there may not be any shops to let or for sale in the area I would like my shop to be. I would like my shop to be in a busy place but that may cause problems because all the shops in busy places will be owned already. If I did find a shop, I may not be able to afford it, especially if it was in a busy place, e.g. Leeds Town Centre. There may also be problems when it comes to presentation in the shop- would I be able to afford the stands to put the products on? How would I lay out all the stands to make the shop floor look spacious?
External Constraints
Interest Rates- This may prevent me from achieving my objectives because the interest rates effects the loan amount if I borrow money. Say the interest rates are high - the loan payments would also be high. Which means I may not be able to pay off the bank loan I have taken out.
Competition- This may cause problems to my business because I will have to compete with the other stores in the area that sell the same kind of products, e.g. Superdrug, Boots. I will also have to keep up with the new trends and fashions of the competitors.
Pressure Groups- A pressure group is a group which specifically aims to influence public policy. This may be a problem because people may protest in front of my shop about testing cosmetics on animals. This may put people off of coming to my shop, which means I won’t be making any money/profit.
An example of a pressure group that may target my shop is the RSPCA.
‘The RSPCA and other animal welfare organisations are called upon to deal with thousands upon thousands of direct cases of animal testing each year.’
Laws
If I open my business there are certain laws, which will affect me. Some of these are shown below.
Employment Laws
Sex Discrimination Act
The Sex Discrimination Act doesn’t allow sex discrimination against people in the areas of employment, education, and the provision of goods, facilities and services. It also prohibits discrimination in employment against married or unmarried people. Also victimisation because someone has tried to exercise his or her rights under the SDA or Equal Pay Act isn’t allowed. This may be a problem because I would not be able to just interview women even though it is a beauty shop.
Health and Safety at Work Act
This law is about the health and safety of your business.
- Provides one comprehensive and integrated system of law dealing with the health, safety and welfare arising out of work activities.
- Imposes general duties for health and safety at work.
- Covers everyone at work or who may be affected by work activities.
- Established the Health and Safety Commission and the Health and Safety Executive.
- Provides the legal framework for further health and safety legislation.
This could be a problem for me because I will need to make sure I am abiding by the rules and that I have no health hazards.
Consumer Legislation
The right of customers to goods and services of a reasonable quality is laid out in a number of Acts of Parliament, for example
- The Sale of Goods Act 1997
- The Supply of Goods and Services Act 1982
- The Consumer Protection Act 1987
These apply to both business and individual customers. They work by laying down general rules about the contract of sales, which exists between the supplier and the customer. In retailing, quality of customer care is of vital importance and retailers normally try to do everything possible to ensure that the customer’s rights are met promptly and politely.
An organisation also has to have regard for Health and Safety issues, this is set out in:
Health and Safety at Work Act.
Trade Descriptions Act
The Trade Descriptions Act 1968 makes it an offence for a trader to apply, by any means, false or misleading statements, or to knowingly or recklessly make such statements about goods and services. Generally speaking, this means you have rights as a consumer for what you purchase to do what it says it will.
Sales of Goods Act
Under the Sale of Goods Act businesses must sell goods that are described and are of good quality.
If the consumers discover that products do not meet the requirements they can give them back and ask for their money back providing they do so quickly. They could also request repair, replacement or claim compensation.
The Sale and Supply of Goods to Consumers Regulations 2002, which transpose a European Directive, have changed the Sale of Goods Act. Even though the impact of the Regulations is relatively modest there are some useful benefits for consumers.
If I set up my own business I would have to make sure they match the Sales of Goods Act so I do not have to waste time replacing if the consumers reject them.
Influences
There are also many influences that can affect my business.
Technology – My business will have to keep up with the latest technology, e.g. Security cameras, checkout tills etc. Without security cameras my business will not be very secure, which means people may not want to visit. Also I will have to keep up with the technology of products. E.g. Straighteners, hairdryers…
Advertising Organisations – There are restrictions when it comes to advertising, I will have to make sure that the products I am selling are not falsely advertised. E.g. ‘This Miracle Cream will clear all your clear and smooth your skin in 2 days’ – when really it takes about 2 weeks to clear. The Advertising Standards Authority (ASA) makes sure all advertisements meets the high standards laid down in the advertising codes. So I will have to check that my advertisements are saying exactly what the products do.
Target Market – I will have to look at the different age groups that visit my shop and the kind of people in the area so I can get an idea of what products I should stock. I will also have to price the products with the amount people are prepared to pay for them and put offers on whenever necessary. My shop will be opened at normal working times due to the fact that people will not want to visit the shop really early morning or late at night. I need times that people are happy with. My main target group are females aged up to 35. I found this out from the responses from my questionnaire.
Changing Consumer Trends – Like with the technology, I will be keeping up with the latest fashions and trends. I would like to make my customers happy with what I am selling so therefore I will give them what they are wanting. The market is always changing, mainly depending on the time of year or the holidays.
Final Report
Terms Of Reference
This purpose of the report I have produced is to investigate into opening up my own hair and make up shop.
Procedures
The information I collected was taken from many different resources. The Internet was the main way of research I used and the module notes I was given at the start of the coursework. I also used some information from some textbooks.
Findings
Questionnaire:
I have found out from my questionnaire what products people would buy, how far people would travel to visit my shop and what age group and gender are likely to come into my shop.
Shop/ competition survey:
I have found out from my competition survey what shops and stores (competition) I am up against and where they are situated, what goods they sell, the offers they have on, the design of their businesses and the customer service.
Trends:
After looking at the change in trends I have found out that I will have to keep up with the latest fashions in hair and make up. I will have to get new stock every time the trend changes.
Location/ Cost of Premises:
I looked on the Internet at different renting companies to see if I could find a location and premises to set up my business. I had no look with this and could not find anywhere in the area I was wanting.
Promotion:
I have learnt about the different methods, advantages, disadvantages and prices of promotion. I will have to stick to a budget so that I don’t spend too much money on just advertising the business. I will promote by business by a poster on a bus and in a teenage girls magazine.
Decisions
I have decided that my business will be a partnership, I have chosen this because if I end up ill or decide to go away then there will always be someone there to run the shop. It is also a good idea to be in a partnership because if I run out of ideas then my partner will surely have plenty.
I have decided how many people will be working for me and at what days and times they will work. My organisational chart will look like the following:
I have come up with a table to show what days the above people will work.
As you can see – my shop will not be open on Sunday’s. I have done the timetable fairly; everyone works 4 days a week. I have also thought about my opening times. From Monday-Friday my shop will be open a little longer than normal shops. This gives people who finish work at 5.00pm a chance to have a look in my shop.
Opening Times
Monday – Friday: 9.00am – 6.00pm
Saturday: 10.00am – 5.00pm
Sunday: Closed
I have decided what types of promotion I will use. The table below shows the average costs of promotional campaigns:
I will have to come up with a plan using the information above and draw a table with the relevant information. I have to remember to stick to a budget. Every business must stick to a budget; if they don’t then they may end up spending too much money on little things. My budget will be £1000.
It is very important to plan time scales; I will have to think about how long some of the materials will take to produce and how long I have got to do the campaign. I will consider how long I will run each form of promotional activity. I will have to make sure not all of my ways of advertising are running at the same time. It would be best to promote by bus for 4 weeks and then at the beginning of the fourth week put an advertisement in a magazine.
This is my time scale.
After looking at various websites on property renting I have not found any premises in my local area that are up to rent or let. I may not be able to afford to buy anywhere in the locations that I have looked at. However, after a recent visit to the White Rose Shopping Centre I have discovered that there are numerous plots up for rent. This would be a great place to set up my new store as the White Rose generates thousands of visitors per day.
I have invested numerous hours into looking at which section of the public to target my new store at. This is known as target market. I handed out a lot of questionnaires and the feedback came to show me that young females are likely to be the main target market for my shop.
In my shop I am going to have a lot of make up brands, hair products and perfumes. I cannot say what the price ranges will be because it depends on the style and product that is chosen. Here are some of the brands that will be sold in my shop.
Make up:
Rimmel, Miss Sporty, Me Me Me (new collection), Revlon’s, L’Oreal, Maybelline, Max Factor, Natural Collection, W7 Trends (exclusive), Chanel and Many More!
Hair Products:
Pantene, Sunsilk, Tres Semme, John Frieda, Herbal Essence, Dove, Head & Shoulders, Neutrogena, Nice N Easy, Shockwaves, Vo5 and Many More!
Fragrances For Her:
D&G, Tommy, Calvin Klein, Anais Anais, Burberry, Chanel, Clarins, Dior, DKNY, Dolce & Gabbana, Estee Lauder, FCUK, Ghost, Hugo Boss, Gucci, Joop, Lacoste and Many More!
Fragrances For Him:
Aramis, Burberry, Calvin Klein, Chanel, Clinique, Davidoff, DKNY, Dior, Dolce & Gabbana, Estee Lauder, Gucci, fcuk, Ghost Man, Kouros, Hugo Boss, Paco Rabanne, Joop!, Lancome, Paul Smith, Tommy Hilfiger, Lacoste, Yves Saint Laurent, Montblanc, Everyday Fragrance, Ted Baker and Many More!
As you can see, I will have a wide range of stock for many age groups – mainly young females.
Conclusions
As I said above I have not actually found a property to set my business up in although I have seen many for sale in the White Rose Shopping Centre. If I decided to set my business up here I would have a lot of competitors such as Boots, Superdrug and Claires. This is probably a bad place to have my shop but it will attract a large amount of customers because it is a very busy shopping centre. I would have to put my prices lower than Boots and Superdrug to make people want to buy from my shop because it has lower prices.
The decision of been a partnership organisation is so that more capital can be invested into my business. It would also be easier if we wanted our business to grow than it would be if I were a sole trader. I feel this was the best choice for a business that is just starting up, although I still have unlimited liability and the business is unincorporated.
It would be very expensive to set my business up in somewhere like the city centre with it been a very busy place where a lot of people work. There would also be a lot of competition in a place like this. Instead I have looked into more local areas, which are still very popular but a lot cheaper, such as the White Rose.
I chose my promotional methods very carefully. I kept to a budget because I didn’t want to go over the top with advertising. I would rather save up some money for other materials needed for my shop. I chose to advertise in a girl’s magazine because it will attract the target market I am aiming at, a lot of girls and young women read magazines. I also decided to advertise with a poster on a bus because a lot of people will see it and it will catch the eyes of many young drivers.
The products I will be selling will not affect my business as long as I keep up to date with the new fashions. Fashions change regularly. My business will be affected if I start to sell the brands that are out of fashion, this will be because everyone will want the new brands. I handed out some questionnaires and did some research on the Internet, which helped me when it came to deciding what products I am going to sell.
