Ageing Population
In 2000, the population of the United Kingdom based on mid-year estimates was 59,756,000. Of this figure, 18.1% were over pensionable age:
6,915,000 were women aged 60 and over (of whom 5,442,000 were aged 65 and over)
3,875,000 were men aged 65 and over
9,316,000 were people aged 65 and over
4,399,000 were people aged 75 and over
1,162,000 were people aged 85 and over.
In 1998 a man of 60 could expect to live for another 19 years and a woman of the same age for 22.6 years.
In 1996, in England and Wales, 5,523 people (4,943 women and 580 men) were aged 100 and over. In 2036 it is estimated that there will be 39,000 people in this age group, and, by 2066, 95,000.
(GB) Looking at the ethnic minority population in Great Britain, in 1997/99, 7% of the population was aged 65 and over and belonging to a minority ethnic group. Within specific groups:
15% of Black-Caribbean people were aged over 65
3% of Black-African people were aged over 65
10% of Indian people were aged over 65
7% of Pakistani people were aged over 65
6% of Bangladeshi people were aged over 65
9% of Chinese people were aged over 65.
An Ageing Population in the Future
The number of people over pensionable age, taking account of the change in the women’s retirement age, is projected to increase from 10.7 million in 1998 to 11.9 million in 2011, and will rise to 12.2 million by 2021.
Employment
In 2000, there were 5.71 million people aged between 50 and the State Pension Age in employment. The employment rate for men between the ages of 50 and 64 was 68.7%, and for women between the ages of 50 and 59 was 63.5%. This compares to an employment rate for all people of working age of 74.6%.
In Spring 2000, 7.6% of men aged 65 and over and 8.2% of women aged 60 and over were still in employment.
Income
The basic pension from April 2001 to April 2002 is £72.50 for a single pensioner, and £115.90 for a couple (claiming on the husband's contributions) per week.
In 1999/2000 single pensioners received, on average, £149 net income per week. Pensioner couples received £281 per week on average during the same period.
Older pensioner households have lower incomes. In 1999/2000 pensioner couples where the man was aged over 75 received £245 net income per week on average, compared with £299 net income per week for those aged under 75.
In 1999/2000, 70% of pensioner households depended on state benefits for at least 50% of their income.
(GB) In August 2000, 1,638,000 people aged 60 or over (single people or couples) were receiving Income Support (Minimum Income Guarantee) because of their low income.
The Department for Work and Pensions estimates that, in 1999/2000, between 22% and 36% of pensioners who were entitled to Income Support, between 7% and 15% who were entitled to Housing Benefit, and between 30% and 36% entitled to Council Tax Benefit, did not claim.
Spending
Where the head of the household is aged 65 and over, a higher proportion of money is spent on housing, fuel and food (40% of expenditure) than in other households (36%).
The most severe deprivation is experienced by pensioners living alone who are mainly dependent on state pensions: nearly 48% of their expenditure goes on housing, fuel and food.
In 1999/2000, one-adult retired households mainly dependent on benefits spent £23.20 per week on food, compared with £32.40 for single non-retired households.
In 1999/2000, of pensioners mainly dependent on state pensions and living alone:
81% had central heating, compared to 89% of all households
12% had a car, compared to 77% of all households
93% had a telephone, compared to 96% of all households
2% had a mobile phone, compared to 64% of all households.
67% had a washing machine, compared to 95% of all households
14% had a CD player, compared to 86% of all households.
(NB, all households relate to households without children.)
Living Alone
(GB) In 2000, in the 65-74 age group, 19% of men and 37% of women lived alone, and 33% of men and 60% of women aged 75 and over lived alone.
(GB) In 2000, the likelihood of living alone increased with age, with 50% of those aged 75 and over living alone, compared with 12% of those aged 25-44.
(GB) In 2000, of people aged:
65 to 74 75 and over
76% 61% of men were married
56% 27% of women were married
9% 29% of men were widowed
31% 61% of women were widowed.
Leisure, Learning and Computers
In May 2000, 4 million people aged over 50 owned a computer, spending an average of 9 hours per week using it.
(GB)In October 2001, 37% of people aged 55-64, and 11% of people aged 65 and over, had used the Internet.
(GB) In 2001, 22% of people aged 65-74, and 12% of people aged over 75, took part in some sort of adult learning.
(GB) In 1996-7, walking was the most popular physical activity for older people, with 49% of men and 41% of women aged 60-69, 34% of men and 25% of women aged 70-79, and 19% of men 9% of women aged 80 and over, engaging in a walk of two miles or over in the 4 weeks before interview.
(GB) In 1996-97, of those interviewed for the General Household Survey, 99% of those aged over 50 had watched television during the previous month. The next most popular home-based leisure activity was visiting/entertaining friends or relatives (95%), followed by listening to the radio (82%).
The Safety and Health of Older People
(GB) In 2000, 57% of people aged 65-74 and 64% of people aged 75 and over in the GHS sample reported a long-standing illness. Of those aged between 65 and 74, 37% and, of those aged over 75, 47%, said that they had a long-standing illness which limited their life style.
The Alzheimer’s Society estimates that there are currently over 700,000 people in the UK with dementia, of which only 18,500 are aged under 65. The chances of having the condition rises sharply with age: 1 in 20 people aged over 65, and 1 in 5 people aged over 80, will develop dementia.
In 1999, in England and Wales, the deaths of 160 people aged 65 and over involved hypothermia as the underlying cause, according to their death certificates.
In 1999, nearly 17% of all accidents within the home involved people aged 65 and over.
(GB) In 1999, of 870 pedestrian fatalities on the road, 337 (39%) were people aged 65 and over.
Health and Community Care Services
(GB) in 2000, in a three-month period, 25% of those aged 75 and over had attended the casualty or out-patient department of a hospital, compared with 15% of people of all ages.
(GB) In 2000, of those admitted to hospital in the previous 12 months, the average stay was 9 nights. However, those aged over 75 spent, on average, 16 nights.
(GB) In 2000, 86% of NHS GP consultations took place in the surgery. Consultations at home were most likely for older people, with 23% of home consultations being for those aged 75 and over.
During one week, in England, in 1998, 445,900 households received home help or home care services. Of these:
83,800 were aged 65-74
144,900 were aged 75-84 and
139,800 were aged 85 and over.
Housing
In England, during 1998/99-1999/2000:
57% of owner occupiers without a mortgage were 65 and over
4% of owner occupiers with a mortgage were 65 and over
35% of those renting from local authorities were 65 and over
31% of those renting from housing associations were 65 and over
13% of those renting privately were 65 or over.
In 1996, in England, 18.7% of single older people (over 60) lived in poor housing. Of people aged 75 and over, 19.9% of households lived in poor housing. The homes of 365,000 (12%) older lone persons (over 60) required essential modernization, compared to a figure of 6% for all households.
(GB) In 1998, 4% of people aged 65-69, 7% of people aged 70-74, 11% of people aged 75-79, 17% of people aged 80-84 and 20% of people aged 85 and over lived in sheltered accommodation.
With regard to numbers of older people in residential and nursing homes, it should be noted that statistics relate to the primary purpose of the home rather than to the individuals within them.
On 31 March 2001, in England, there were 11,500 homes for older people, with the independent sector providing 90% of these. There were 236,700 places for older people, 83% of which were in the independent sector.
In England, in 2001, the number of registered beds in nursing homes intended for use by older people was 142,500.
In 2001 the chance of living in a long-stay hospital or care home by age was:
0.05% (under 65)
1% (65-74)
4.8% (75-84)
20.9% (85 plus).
Living alone
In Great Britain in 1996:
- In the 65-74 age group, 21% of men and 39% of women lived alone.
- 31% of men and 58% of women aged 75 and over lived alone.
In 1996, of people
In 1997/98, amongst pensioners who were mainly dependent on state pensions and living alone: -
- 81% had central heating, compared to 89% of all households
- 14% had a car, compared to 69.8% of all households
- 91% had a telephone, compared to 94% of all households
- 62% had a washing machine, compared to 91% of all households
Assignment 2
Investigating the Feasibility of Opening a Nail and Beauty Parlour in Louth
Introduction
The aim of this investigation is to explore the feasibility of opening a competitively priced Nail & Beauty Parlour aimed at a wide range of consumers of varying lifestyles and age groups.
A suitable location has been selected in the suburban town of Louth, Lincolnshire, directly opposite the bus station, with many bus stops in the vicinity. Throughout the course of the investigation, various methods of Primary and Secondary research were adopted in order to evaluate whether the business was feasible.
The proposed location is approximately…square feet in size and will cost £27 000pa to rent, with rates of roughly £14 000.
All required materials could be purchased from ‘Sally’s Beauty Warehouse´ in Grimsby, a town approximately 35 minutes away from Louth by car. They offer bulk purchasing of all products related to hair and beauty at a discounted price and have a reputation for selling high quality products.
The business will be called ‘Lincs Nail & Beauty Bar´. It will have a contemporary design, in order to appear trendy and upmarket.
METHODOLOGY
Secondary Research Objectives
Objective 1
Discover if the chosen location will generate sufficient custom, by assessing the competition in surrounding areas and conducting a SWOT analysis of Louth.
This may be investigated by comparing the services offered by competitors to those of your own and conducting a foot count of the number of clients served at particular hours on particular days.
Objective 2
To discover the average number of women aged 15-65 residing, studying or working in Louth.
Objective 3
To determine the disposable incomes of women in these age groups.
The information for the above two objectives, may be discovered from demographic information obtained from the local library.
Objective 4
To determine the fixed and variable costs of running the business including factors such as staffing costs and cost of materials required.
Objective 5
Investigate the cost of advertising the new business.
This may include method of above and below the line promotion and research into local radio, newspaper and leaflet drops must be considered.
Objective 6
Discover any relevant legislation that must be taken into consideration with regards to employment. It is essential that such legislation be followed as failure to comply could result in the following:
It is the duty of the employer to assess any possible risks, implement the necessary control measures and maintain sufficient records.
- Prohibition notices
- Public disclosure
- Bad publicity-acting as a deterrent for potential customers
- Increased insurance premiums
- Claims for compensation
Primary Research Objectives
Objective 1 – To determine the likely demand for nail treatment.
Objective 2 – To determine the additional beauty treatments demanded by the majority.
Objective 3 – To determine the prices that clients are willing to pay for various treatments and how
regularly they will demand the treatment in order to determine to what level stocks would need to be
held.
Objective 4 – To determine how many days a week and at which times the Bar will attract the most
custom, to enable opening times to be planned around the optimum demand times.
Primary Research Method
After researching various methods of research and considering the time limitation in which it must be compiled, it has been decided that a survey is to be conducted in Louth using a random stratified quota selection method of sampling of 100 women within specific age groups which will be recorded in a tally chart format (see appendix).
The two main concerns in sampling are how to choose the right people for the interview and how many to interview. The four main methods of sampling have been researched and this may be found in the appendix. The given information will also contribute to calculation of costs in Objective 4 of the secondary research.
Questionnaire and Results of Consumer Survey
AGE:
15-20 41-45
21-25 46-50
26-30 51-55
31-35 56-60
36-40 61-65
WHY ARE YOU CURRENTLY IN LINCOLNSHIRE?
Residing here Studying here
Working here Visiting
DO YOU/WOULD YOU CONSIDER HAVING NAIL AND/OR BEAUTY TREATMENT?
Yes No
IF SO, WHERE DO YOU CURRENTLY HAVE IT DONE?
Louth Grimsby
Horncastle Holton-le-Clay
Caistor Other
WHAT TREATMENT DO YOU/WOULD YOU CONSIDER HAVING?
1. Accrylic Nail Extensions
2. Manicure
3. Pedicure
4. Nail Art (airbrushing)
5. Threading (eyebrow, upper lip etc.)
6. Waxing (legs, arms, underarms etc…)
7. Massage
HOW MUCH WOULD YOU BE WILLING TO PAY FOR THE ABOVE TREATMENTS?
£ 5-10 10-20 20-30 30-40 40+
ON WHAT DAY WOULD YOU PREFER TO VISIT A NAIL & BEAUTY PARLOUR AND AT WHAT TIME?
09.00-12.00 12.00-18.00 18.00-21.00
Monday
Tuesday
Wednesday
Thursday
Friday
Saturday
HOW OFTEN DO/WOULD YOU VISIT A BEAUTY PARLOUR?
Twice Weekly
Weekly
Fortnightly
Monthly
Every other month
Special Occasions
Other
Results of Questionnaire
By doing these charts I can make some clear conclusions from my results. It appears that it is very feasible that my business can go ahead and be profitable.
SECONDARY RESEARCH RESULTS
Objective 1
It was discovered that there is another Beauty Salon in Louth as well as a number of hairdressers, which provide the manicuring service. Their prices however, are substantially higher than any that the Lincs Nail& Beauty bar is aiming to charge. This alone will enable it to compete effectively.
Below are 2 comparative lists between the planned features of the Nail & Beauty Bar and the competitors in Louth:
Services exclusive to Lincs Nail & Beauty Bar:
- Threading – a more accurate method of hair removal that is a specialized skill originating in India. Creates a better shape of eyebrow and is a relatively speedy method of treatment. Very cheap to perform as it simply requires a small length of thread and some talcum powder.
- American style nail art (airbrushing) creates intricate patterns on ones nail in varying colours and styles. A hugely fashionable feature with teenagers and adults alike. It is likely that once a client comes for a specific treatment such as airbrushing, they can be convinced to return for other treatment relating to the nails such as nail extensions.
- All services provided by the competition will be provided at a lower price by the Nail & Beauty Bar hence attracting a large proportion of the extensive teenage population that study in the surrounding area.
Services provided by Louth competitors:
- Hair cuts and colours
- Electrolysis
- Facials and skin treatments
A foot count was collected outside the Beauty Salon of the Louth competitor and outside the Nail Salon of the greatest nail treatment competitor, which is in Grimsby. Each was observed for a period of one hour, three times throughout the day on a Wednesday and Saturday. The results are as follows:
TIME/DAY NUMBER OF PEOPLE IN
Louth / Grimsby
09.00 –10.00 Wednesday 6 /2
Saturday 11 /2
12.00-13.00 Wednesday 19 /4
Saturday 30 /5
16.00-17.00 Wednesday 25 /2
Saturday 30 /3
S.W.O.T Analysis of Louth and Location of Premises.
Strengths:
- Wealthy area in which disposable incomes are high
- Situates two all girls private schools from which the students also have relatively high disposable incomes. Also surrounded by numerous mixed schools providing a large number of clientele during the week.
- Premises directly opposite a bus station and surrounded by bus stops from various routes, hence enabling easy access to the Bar. Plenty of car parking spaces available.
- The premises have many large windows and an open plan, located directly in the centre of the town, providing much opportunity to entice custom via interior design.
Weaknesses:
- Is not a large retailing town such as Grimsby, and therefore most people who will know of its existence will be those who frequently visit Louth, unless a large budget is set aside for advertising. Also due to this, people may prefer to go to Grimsby as they can see a movie and do some shopping while they are there.
- Limited parking space available
Opportunity:
There is an opportunity to completely dominate the market of Louth and the small surrounding towns as the main service provided is modern, fashionable and the closest replicating service is in Horncastle. On top of which it will be the most competitively price though this may require the adoption of penetration pricing until customer loyalty is established.
If market domination is established there is and opportunity to expand the range of services to include new and radical skin treatments and bring the big town salon treatments to the suburbs.
Threats:
The main threat comes from current competitors who may also aim to slash prices, if this is the case, the Lincs Nail & Beauty Bar may have to rely on their product differentiation and customer relations alone to help them survive.
See Maps located in the appendix.
Objectives 2 & 3
In order to discover how many women reside in the area or Louth and what their disposable income is, information was extracted from a demographic study and can be seen in following pages.
There are two private all girls´ schools in Louth, each holding approximately 1000 girls aged 12-18 years old.
The women working in the town centre were counted and amounted to roughly 65.
Whilst the disposable income of these working women does not amount to a significant amount, the disposable income of the girls studying in the area is unusually high due to many coming from wealthy backgrounds who receive money from their families instead of or, as well as earning their own.
The total resident population of women aged 16-59 in Louth, amounts to roughly 5205 according to the 1991 census, the proportion of which are economically active as follows, according to the 1981 census:
Full time employees – 38.59%
Part time employees – 16.5%
Self employed – 5.82%
Objective 4
Rent: Twenty Seven thousand pounds per annum, of which approximately £6750 must be paid within the first 3 months.
Business Rates: The average business rates would come to around £14000.
Decoration Cost: The actual layout of the shop currently is suitable, with a large open plan main area in which the nail treatment may be performed. There are also two back rooms available for additional treatment. The main decorative feature will be the mirrored walls to enable the bar to appear larger than it is. Additional decorative features are the aquarium and lava lamps. The total costs amount to about £2000.
First time customer bonus: In order build good customer relations, an offer of a complementary glass of wine with all treatment above £5 will be available in the opening week of the Bar. £200 has been set-aside for this.
Equipment and Furniture cost: As calculated from the prices collected at Sally’s Hair and Beauty World (see Appendix). Total cost amounts to approximately £1853.98.
Staffing costs: it has been decided to have the Bar open for a total of 48 hours a week at times varying to suit the majority of clientele (see Primary research). 10 nail technicians and 2 beauticians are required. They will be paid £5/hour. Assuming that the Bar will be open 50 weeks a year, costs amount to £144000 per annum.
Objective 6
Health & Safety Legislation
Health & Safety at Work Act 1974 – brings together all past legislation that protected employees from hazardous conditions.
Race Relations Act 1970 – aims to protect individuals against discrimination on the grounds of race, colour, nationality or ethnic origin.
Equal Pay Act 1970 – states that women performing a similar job to men should be treated equally in every way. This includes pay, work conditions and also opportunity for promotion and recognition.
Employment Protection Act 1975 & 1978 – (original act amended in 1978) requires employers to provide employees with a contract within 13 weeks of commencement of employment.
TOTAL COSTS
FIXED COSTS
PRIMARY RESEARCH - ANALYSIS OF THE CONSUMER SURVEY
It was evident during the collection of the primary research information that there was an extremely large, non-resident population of 15-18 year olds, due to the two girls only private schools in the area. There were also a large number of females shopping in the town due to the many residential homes.
Whilst it can be assumed that the high proportion of pensioners in the area may not have sufficient disposable income to spend in the Bar, it can also be assumed that this will be compensated for by the rather high disposable incomes of the school girls. A discount for pensioners and students with NUS card may be considered once the business is well established in the community.
Pie chart to show the current outlets favoured by the consumers interviewed
It is evident from the chart and the foot count performed previously, that the main competitor in the nail service, is in Grimsby. As Louth is a significant distance away from Grimsby - some 12 miles, the Bar will be opening the door for a whole new range of customers and hopefully develop the custom those living in the area that previously visited the Grimsby store.
It is also evident from the survey conducted, that demand for the treatment offered is not consistent throughout the day, everyday. It is therefore not profitable to remain open from 09.00 – 17.00 every day if it would prove beneficial to the business to be open from 12.00 – 21.00 on particular days throughout the week.
The feedback compiled suggests that the following opening times should be tried provisionally:
Monday – 09.00 – 12.00
Tuesday – 09.00 – 18.00
Wednesday – 12.00 – 21.00
Thursday – 12.00 – 21.00
Friday – 09.00 – 21.00
Saturday – 09.00 – 18.00
Sunday – Closed
Profit and Loss
This is a forecasted profit and loss that will follow the principle of caution and understate the forecasted sales, from the estimated 66 of 100 people (see survey) to 20% of the population of women in
Louth spending an average of £20 a week, therefore £240 a year.
FORECASTED PROFIT AND LOSS ACCOUNT FOR THE ‘LINCS NAIL & BEAUTY BAR FOR ONE
YEAR AT 20%
The following profit and loss calculates an estimated sales turnover, based on 66% of the population of women in Louth using the service. This is an optimistic view estimating the probable maximum profit that can be achieved.
FORECASTED PROFIT AND LOSS ACCOUNT FOR THE ‘LINCS NAIL & BEAUTY BAR FOR ONE YEAR
AT 66%
This profit and loss assumes that the sales turnover will be generated by an average of the previous assumptions – 40% of the population of women in Louth. This takes into account both the optimistic and pessimistic forecasts for profit and loss, and also considers the fact that not all the potential clients are residents in Louth.
FORECASTED PROFIT AND LOSS ACCOUNT FOR THE ‘LINCS NAIL & BEAUTY BAR FOR ONE YEAR
AT 40%
Flow Chart
Such a diagram shows how long it will take to actively start up the business and enables easier planning of the opening activities and waste less time, therefore operating expense.
Identify and decide on Approximately 2 weeks
Suitable premises
Raise sufficient funds Approximately 20 days
Planning Permission Approximately 85 days
Redecorate the premises Maximum 3 weeks
Set up equipment and 1 day
Furniture
Advertising Approximately 20 days
Open the Shop Approximately 6 months
Analysis of the Research
In order to start the business, it has been calculated that an initial investment of approximately £83000 is required (assuming that the wages and rent is paid for the first quarter only). The owner of the business has inherited £10000 from her grandmother. She has the option to raise the rest of the funds required by either taking out a loan at the bank, or selling shares in the business to family and friends. At present, interest rates at the bank are relatively low, meaning that the owner will be paying less interest on the money borrowed, which proves to be more profitable to the business and improves cash flow. However, there is no interest payable to shareholders as such, which is beneficial to a business starting up, as it reduces the risk of increasing debts before a profit is shown. Shareholders, however, are owed dividends and in the long run, the business may be paying out more in this way, than if they had taken a loan, on top of which, entering into a business relationship with friends and family may strain relations through disputes about the business.
There are many benefits to opening the Bar in Louth such as:
Lack of competition - there is a lack of similar services provided in, or in directly surrounding areas.
Competitive Pricing – those that do provide some of the services available at the Bar, do so at a substantially higher fee, on average, £30-50 a visit, whilst the Bar aim to provide service of the same, or better standard for approximately £20-35 a visit. As the forecasted profit and loss accounts show, even at this price, costs can be covered comfortably and if the Bar generates a strong customer following, prices may be raised at Christmas and peak holiday seasons for example.
Product – the services being offered are well differentiated in its market of beauty treatment, as it offers specialist services such as nail art and threading, which are continuously increasing in popularity with women of all ages. There is also the option to expand into ear piercing or men’s treatment, once the Bar is well established. Research has show that the huge surge in demand for nail art and extensions is not believed to be a fad. Similar behaviour was experienced in America nearly a decade ago, and popularity for nail bars there has only strengthened. It is now perceived to women to be as essential to women as a hair cut within their grooming routine.
Advertising – advertising is an essential factor in the prosperity of the business. Due to the fact that Louth is not a well-known town, the Bar requires much publicity to attract the custom of those in surrounding areas. £10 000 will therefore be spent on advertising. £4000 on the local newspaper, £5000 on Lincs FM and £1000 on distribution of flyers to surrounding areas.
Methodology
I believe that the majority of the research conducted was as accurate as possible. The demographic information taken from the most recent Census was produced in 1991 and it can be assumed that the main difference in recent data would be an increase in population as more houses and flats have been built in the area. Comparison between the 1981 and 1991 Census also shows a huge increase in the size of the population. I also believe that the questionnaire conducted in Louth produced inaccurate results as it is unreasonable to say that over 60% of women would be willing to have such beauty treatment. I believe that this anomaly arose due to only 100 people being questioned. If I had more time to compile my research, I would interview a greater amount and range of people for example, devise a specialised questionnaire for students alone as they make up a large proportion of the daytime population of Louth.
It must also be taken into consideration however, that regardless of the amount of research conducted, there may be many unforeseeable circumstances that could affect the profitability of the business, external factors such as a downturn in the economy.
Conclusions
After conducting all relevant research and taking into consideration any anomalous data as well as examples of such businesses success in the U.K. and abroad, I believe that there is a great chance of success in for the Lincs Nail & Beauty Bar. Research shows that there is already substantial demand for the services offered and continuation of this would enable the Bar to expand further and possibly open another branch elsewhere, or even consider the idea of opening concession branches within well established stores such as Fenwick or Selfridges.
From the graphs compiled it is evident that the average amount one is willing to spend on treatment per visit is £20 and the average disposal income of the locals residents can more than comfortably accommodate this.
Suitably trained staff is the most important factor in establishing a successful business, especially in a service-orientated business such as the Bar. Due to the fact that they have specialist skills, they must be paid above the minimum wage and though they incur the highest cost within the business, this compensated by low costs of materials. Along with the skills they have learnt, they must have excellent communication skills and build up a strong relationship with the clients in order to deter them from going elsewhere.
The business may have been even more profitable if set up in Grimsby, a town that attracts many people due to the large shopping centre. There is however much more competition in that area and lower disposable incomes amongst the residents.
SUMMARY
Chance of Success
After studying the various forecasted profit and loss accounts, it is evident that the business has the potential to be extremely profitable, if all other factors run accordingly.
The supplier has come highly recommended by various beauticians within surrounding areas as having almost 100% reliability and due to the fact that it is so close to Louth, delivery costs are avoided as a member of staff could easily collect the material required. The only foreseeable problem in this area is external. A change in exchange rates may increase the price of supplies, as they are all imported.
Advertising will also play an important role in the establishment to the business and advertising in the local paper and on the local radio, will make many residents aware of the presence of the Bar. Flyers will reinforce this within the minds of the residents. Excess advertising is not required as the location of the Bar is such that it is clearly viewed by many as its location is optimal, directly in the centre of town.
The décor of the Bar is such to attract the attention of all passing by. The aquarium and lava lamps create a funky yet relaxing atmosphere and will compliment its modern, spacious design.
Evaluation.
The main restriction I experienced was that of time. If I had the option to redo the project, the main area I would correct would be that of the questionnaires. I would take a much larger sample, of perhaps 400 and even investigate the demand for beauty treatment by men. From the project I have compiled however, not taking into consideration external factors, the idea of opening a Nail & Beauty Bar in Louth is definitely feasible. The forecasted profits are extraordinary mainly due to the low costs incurred and if such a simple idea could generate such large sales turnover, it may not be a bad idea to make the idea of the ‘Lincs Nail & Beauty Bar´ a reality!
APPENDIX
A Map of the Proposed Location for the ‘Lincs Nail & Beauty Bar´.
Various Methods of Sampling
Random Sample
- Random sampling involves selecting respondents to ensure that everyone in the population has an equal chance of being interviewed. Achieving a totally unbiased sample requires careful thought.
- Research companies use the following methods:
Pick names at random from the electoral register, e.g. every 100th name.
Send the interviewer to the address given on the register
If person is out, visit twice more before giving up (to maximize chances of catching those who lead very busy lives and are rarely home.
- The method is very effective, but slow and costly.
Quota Sample
Quota sampling involves selecting interviewees in proportion the consumer profile within the target market, for example, in the case of the Bar, equal numbers of women within the specified age groups.
This method enables interviewers to question anyone who walks down the street as long as they achieve the correct the quota and they can interview as when and where they want.
This is the most commonly used method of sampling because it is relatively cheap and effective.
Stratified Sample
Stratified sampling involves only interviewing those with a key characteristic required for the sample e.g. only women interviewed with respect to the Bar. Within this section of the population, individuals can be found at random, or by setting quotas based on factors such as social class and region.
Cluster Sample
Cluster sampling is the process of sampling within a specified area only. E.g. in a selected seaside resort (for swimwear). This is not a common form of sampling.
