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Business studies coursework- Kinetic Plc

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Introduction

Business studies coursework- Kinetic Plc AO1 Investigation: Kinetic Plc is a sports manufacturer. It manufactures clothing for activities such as sailing, hockey, cycling etc. It was a partnership in 1986, a private company in 1990 and has been transformed into a public limited company in 1994. Kinetic plc owns a number of factories across the United Kingdom. The public limited company also has its companies head offices lease set to terminate. They are not looking to renew its contract and are looking elsewhere to locate their head office. Kinetic Plc do not compete with large sportswear manufacturers such as Nike or Umbro. The company has a website, but do not sell its products over the internet. They sell their products to the retailers or straight to the consumers by mail order. Till date, 1993; it sold its goods only in the United Kingdom. However, it began exporting its products to France in 1994 and now, exports all over the world. I am going to investigate whether Kinetic Plc should sell over the internet or open a shop to sell its products. Kinetic Plc is losing out on sales against its competitors, examples of its competitors that compete with Kinetic Plc's range of products are: - Speedo, www.speedo.com; which sells water sports equipment. They sell their products over the internet to their targeted consumers. Their targeted consumers are over 21 to mid 40's as they are the most energetic and sports fanatic. - REI, www.rei.com; which sell hiking boots, skiing equipment etc. They sell their product over the internet. Their targeted consumers are between 17 - mid 30's as they are usually the target group consumers that go to the swimming pool. It also could be the reason that they work and the steady prices on their equipments could be affordable to them. Kinetic Plc need to expand, to compete with its competitors and not lose out on sales. ...read more.

Middle

Exporting to other countries from Kinetic Plc will make them more well-liked, this will allow Kinetic Plc to gain a substantial profit and also gain a profit by introducing a brand name. There knowledge about foreign exportation will help them in the near future, if they decided to expand. The drawback for this classification is that Kinetic Plc will have to chose whether time is an issue; as, the quicker you want your products to be exported the greater the price (usually as tax) will be. The market research will not be enough to support its survival in the French market. It will have to promote its goods again, attracting its customers. Opportunities Kinetics Plc may be missing out on opportunities to compete with its competitors because they do not own a shop or sell on the internet, this will result in them making unwanted enterprise (risk taking) which could be fatal to the fate of a business. They have not expanded their business and are considering ways to expand its business. They should use more forms of indirect distribution even though this may take longer than usual, this will bring in a wider range of options to expand the business and increase its profit rate as they would be in a greater position to compete with its competitors. Two advantages of Kinetic Plc opening a shop is that now they are not selling their products indirectly to the retailers. This will support them by not losing out on sales and competing with its competitor. They could concentrate on a targeted market in which they are going to enter, which will convince its targeted customers that the products they made are for their use. The disadvantages of opening a shop are that the market research does not always support the companies' plans. The local environment could be said that it is a posh from secondary research. ...read more.

Conclusion

Question number 6 indicates that 39% of population would not buy from a shop, a strong point could arise there is a limitation of shops which could offer the services and goods to others. As kinetic will open a shop, this will attract many unsatisfied customers and encourage them to buy from Kinetic Plc. 33% said they would prefer to sell sportswear through the internet, 32% said they would not purchase from the internet, this is a complicated situation with the target market that Kinetic Plc can not really do anything about. In comparison, to their majority response of 'none of the shops have what I want' when asked why they would not purchase from a shop, it suggests that is can not be changed. Their intended target group already has an idea that compromises with the fraudulent image of an internet which will result in them to not purchase from the internet. Kinetic can easily solve the problems arisen to the customers- whom think that shops are limited in the range of product available be expanding if they want but can not change the attitude of their customers. When asked, in question 12, 'if you owned a shop how would you distribute your goods' the majority of people surveyed said they would like to sell through via specialist shop- 47% whereas internet only got 33%. This shows that opening a shop, will benefit Kinetic Plc through both the statistics gathered from primary and secondary research and customers. Reasons for their comment are: - builds up a dedicated circle of customers who will return (loyalty) - Enjoy giving good services - People know where to come specifically - Specialist in a particular department (efficiency) After carrying out a questionnaire, I would recommend Kinetic Plc to sell their sportswear through a specialist shop, in order to expand and compete with its rivals. ?? ?? ?? ?? ...read more.

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