Qualitative Research
Helps the business understand more about how the customer feels and why the feel that way; this way of research is about getting in depth information and asking customers open ended questions such as ‘why did you say that’ etc.
This type of research is will be smaller than Quantitative research as Qualitative research is harder to take since it will be long process but it will help provide a clearer picture and my shed light on certain issues.
Quantitative
This style of surveys include large samples and is usually made of closed questions; the most common way of collecting this type of research are telephone or on street interviews. Quantitative is used for making statistics and making databases; using this type of research will help a business get the overall picture of their market.
The marketing mix contains four different parts, these are
Price- A business needs to charge the right amount for their goods otherwise they my lose customers to their rivals.
They also need to make sure that they keep an eye on their rivals to see what they charge for similar products, this will help the business determine what they will charge for their product.
Product- A business needs to make sure that they are offering the right products otherwise they may not produce any sales. A business also needs to make sure that they have a product which reflects its price, for example they should not charge a lot for a product with bad quality.
A business should also make sure that their product meets their consumer needs; they could make sure that they do by carrying out research.
Place- A business should try and make sure that the product is available in the right place, for example there is no point for the business to advertise their product in China and then sell it in Britain as they will simply lose money.
Promotion- A business should carry out extensive advertisement on their product aimed at their target market; this will help promote their product and even the business, if they don’t promote their product then their target market won’t know about the product which will lead to them not buying it.
Task 2
2. Carry out primary research to find out what potential consumers want from your product, where they want to buy it, what advertising they take notice of, how much they would be willing to pay, what kinds of promotion would attract them to try it etc?.
Questionnaire
Interview
Introduction
I’m going to carry out a SWOT analysis to try and predict how it will be anticipated in the market. I have carried out secondary research which is relevant to my product to help me with my analysis and also to try and find out how similar products how well have done in the market.
Strength
From 1999-2001, UK retailers made £497.0 million; Multiple/department stores made the most profit with their profit at £208.7 million and also having around 44% of the market shares.
CTNs and grocery multiples are one of the larger emerging outlets in this market. Much of their growth has been on the back of the compact camera, APS units and SUCs. They were estimated to hold %4 of retail sales in 2001, equivalent to £20.8 million.
The internet has seen strong growth since 1999, taking %3 of sales in 2001. Significant impact has been made as a result of the growth of internet sites and improvements in the range of cameras on offer. Further growth is likely from this sector in the long term.
A forecast by Mintel reveals that expenditure on cameras will show relatively healthy year on year growth, with the market increasing by 33% to 2006 at current prices. Due to price deflation in the leisure goods sector (which includes cameras), in real terms there will be higher growth of 45%. Volume sales will increase faster than value sales and by 2006 over 27 million cameras will be purchased, which represents an increase of 61% on 2002. The average price paid for camera will fall from £31.27 in 2002 to £25.76 in 2006, largely due to the increasing popularity of low-cost SUCs.
Weakness
Surveys reveal that in terms of ownership in compact camera is by far the most common camera in use in the market. However, while compact cameras remain the most popular format for ownership, the percentage of respondents owning such a camera has fallen significantly between 1997 and 2001 by 4.3%. It is clear from this that compact cameras, while remaining popular, are under threat from other formats, notably the disposable format, as well as the APS camera and the digital camera.
I’m going to carry out a SWOT analysis to try and predict how it will be anticipated in the market. I have carried out secondary research which is relevant to my product to help me with my analysis and also to try and find out how similar products how well have done in the market.
Opportunity
Those with families have much higher levels of ownership for all formats than those without families. This reinforces views expressed in the market Drivers section, that cameras are important to families in recording life stage events. Yet, despite this, single persons, as opposed to those married or living as married, are more likely to own a disposable SUC. While this contradicts data placing high levels of ownership among families, it is no doubt linked with high ownership rates for those in the 15-34 age band, more of whom are likely to be single than other groups. Additionally this age group is more likely to be attending social events where disposable cameras are ideal, such as parties and nightclubs.
As a reflection of both changing shopping habits over the past two decades and the growing presence of electrical multiples in the market, the most important outlets are the multiples and department stores. These claimed an estimated 44% of retail sales in 2001, equivalent to £22.8 million. Growth in the value of the digital market has been particularly important during this period, counteracting falling sales of 35mm compact units.
This survey shows where exactly new cameras may be brought from in the U.K
%
Argos 31
Dixons 27
Specialist Camera Shop 21
Curry’s 14
Boots 14
Jessops 12
Comet 8
Internet 7
Index 6
Department Store 5
Duty-free airport/ferry terminal or onboard plane/ferry 4
Other outlet 4
None 5
Don’t Know 6
Source: BMRB/Mintel
The highest choice of purchase of anew camera is the high street retail outlet Argos, with 31% of all of all respondents choosing this option. Argos ‘position as the most preferred outlet is no doubt a reflection of its number of branches, in addition to the range of models stocked and its policy of competitive pricing.
In second place is the electrical multiple Dixons, with 27% of respondents stating they would use this outlet to purchase a camera. As with Argos, Dixons is a high street retailer thereby having considerable visibility. In contrast to Argos, Dixons the advantage of being able to provide technical expertise to customers and thereby a more specialised range of equipment.
Specialist Camera shops received 21% of responses. The profile of such outlets, best illustrate by the Jessops chain, has declined in recent years as competition has increased from high street electrical outlets and electrical multiples. Despite this, the specialist camera shop retains a place in the market where a purchase feels that they require technical advice or a product which is typically not offered by other stores.
After these top three choices come a mix of high street stores and electrical multiples. Curry’s and Boots are placed joint fourth with a share of 14% followed by Jessops with 12%.
A variety of different statements were offered to respondents. One statement was quoted by half of all respondents, namely that they usually use an uncomplicated point and shoot camera. The range of compact 35mm/APS/ Digital formats, as well as the more traditional 110/instantamatic cameras available on the market typify such a camera. Although the choices offered allow no indication of type of camera that is most popular, there is a suggestion that disposable cameras are notable sector within this market with 10% starting that they usually use such a model.
Aside from some consumers preferring a camera that is relatively uncomplicated to use, three other views are widely held. These are first that a sizeable number of owners of cameras (20%) only use them for special occasions such as weddings or holidays. Second, that 19% prefer auto focus models and third 17% use their camera throughout the year. The fact that a fifth of camera owners use their camera only for special occasions is perhaps not surprising, given the importance of holidays and special occasions.
The importance attached to auto focus no doubt ties in with the importance given by many to the use of uncomplicated point and shoot models. Auto focus is a relatively new innovation, with the camera automatically adjusting to the distance of the subject in the viewfinder. With such a sizeable minority now preferring such a feature, it illustrates how the mainstream consumer market has embraced such innovations
Threats
Camera specialists account for 15% of retail sales(£78) in 2001, although their share of sales is believed to have dropped back from 17% (£84.5 million) in 1999. Increasingly, specialists are coming under competition from electrical multiples which has led to their number falling back during the past decade.
A survey asked this questioned, “I would like to ask you some questions about photography, that is still photography rather than home video. Looking at these statements, which, if any best describes your photography skills?”
This is the results
%
I am very amateur and only take photos occasionally 45
I am very amateur but regularly take photos 18
I am quite skilled but only take occasional photos 8
I am quite skilled and regularly take photos 5
I am an amateur ‘professional’ but only take photos for myself 1
I am an amateur ‘professional’ and take photos for other people 1
I never take photos 22
Source :BMRB/Mintel
The question highlights the fact that the vas majority of photographers consider themselves very amateur with a total of 64% choosing one of the two options that refer to amateur photography; a total of 45% are amateur photographers while 18% describe themselves as amateurs who take regular photographs.
Views and preferences on the use of a camera will affect the decision-making process of that individual and the preferences they may have towards a particular model and the features that it offers.
The high proportion of those who consider themselves as amateurs highlights as the fact that many owners of cameras are unlikely to demand a technically complex product, thus explaining the recent rise of 35mm compact, APS and SUC formats, all of which are offered with point and shoot models. The fact that majority of camera owners only take photos occasionally reinforces accepted views that many cameras are only used on special occasions. It also suggests that as an object of ownership, the irregular use of such camera may not actively precipitate trading up to a new model on a regular basis.
