- Are there any security issues to be considered?
‘Like every business there are always the odd dodgy customer but to reduce this I have introduced a camera doorbell which enables the bar man to see the face of the customer and their membership before they enter the premises. This had been a great success and doesn’t seem to affect the customers in any way.’
Questionnaire
To help me identify my target market and their needs and wants I have decided to do a questionnaire to help me with my research. All my data will be kept confidential for ethical and personal reasons. I will not have a particular target of people but I would like a nice spread on my age groups.
I am thinking of opening a snooker/pool centre in Gants Hill and I would like some feedback from the public to see if my proposed Idea is a good one. Thank you for taking some time out to fill this in.
- How old are you?
• 13-15 • 16-18 • 19-25 • 25-30 • 30+
- What is your sex?
• Male • female
- Have you played snooker/pool before?
• Yes • no (continue to question 5)
- If yes how often do you play snooker/pool in a public area?
• Once a day • once a week • once a month • rarely • one off • other
- Do you feel there enough variety of leisure and entertainment in your surrounding area?
• Yes • no
- Would you like to see a new snooker/pool centre introduced in Gants Hill?
• Yes • no
If not why:
- What is your perception of snooker halls at their present state?
• Sociable • time pass • value for money • not worth it • boring • fun • other (please specify)
- What would you specifically like to see in a new snooker/pool centre, which may be opening in your area? Example (a younger atmosphere)
- If you ever came and played pool would you be interested in purchasing food, if you would what types of food?
• Yes • no
If yes: (tick more than one if needed)
• Chips • sandwiches • cakes • meals • burgers • pizza
• Other (please specify)
- What type of drink would ‘you’ prefer?
• Alcoholic • soft drinks • hot drinks • all types
We are thinking of introducing areas where groups of friends can relax and socialise. Here we will serve you food and you can play pool in your own specified area.
- Do you think this is a good idea?
• Yes • no
- . Any final comments or suggestion for this proposal?
Thanks for completing this questionnaire.
Analysis of interview with David
Because David was very descriptive in the interview, I am now aware of what my company will need to do, both in the short term and in the long term.
David made it clear that he had invested heavily into his company and was very eager to be as successful as he could be. He also pointed out that it was at the very foundations of differentiating yourself against competition, which helped to increase your popularity and profits. He has made changes in many ways including the changes he has planned for the future. It is apparent that the “great customer service” has become a vision for his success, and the loyalty of his customers is greatly admired by him.
Evaluation
David gave me many great ideas, which I could then add onto my company’s strategies. David was very conscious about his competition and identified some methods to how he differentiated himself from them. He was also considerate for his customers; he felt that customer’s service was one of the main skills in keeping a successful business. Fortunately for me David has been running for over 15 years now and I was able to gain some ‘word of wisdom’ from him. He told me many things, which he learnt with his time in the centre but I am able to apply these to my company and consequently give myself an advantage over competition.
In my opinion it seemed that David relied a lot on the loyalty of his customers and hasn’t done enough to gain new customers. He has a lot of experience in the field but I feel that if he tries that little harder he can gain a lot more customers and be ahead of competition. David had modified his company a lot since the day he started and he has become a popular place for the local people but from the interview I did see a few factors which maybe helpful for him but more importantly it will be important for me as I am now recognising areas which could be better for my company.
From the interview I gained a lot and I have been able to put them into a few main points, which will favour me when setting up:
- To respond faster to market trends than their competition does.
- To undertake activity which will enhance the company’s image from every aspect.
- Respect the customers and they will respect you.
Analysis of questionnaire.
This shows me that I have quite a wide variety of ages expect for the 30+ but this isn’t much of a problem as I do wish to aim my project more towards the younger ages therefore I have a good sample of 16-18 year olds which will be great.
- What is your sex?
• Male • female
I am very happy with this outcome as I wish to aim my project at females as much as men. Pool/snooker centres have the tendency to be male dominated but I want to change this and make it appeal to both sexes and be a nice welcoming place. Also having the opinions of women will be great in enabling me to fit the standard they will want.
- Have you played snooker/pool before?
• Yes • no (continue to question 5)
I felt that this question was necessary as the more people I had that had previously attended a snooker/pool centre the better for me as I could then have a lot more feedback on how to make improvements to the existing ones and therefore give myself an advantage when opening.
- If yes how often do you play snooker/pool in a public area?
• Once a day • once a week • once a month • rarely • one off • other
- Do you feel there enough variety of leisure and entertainment in your surrounding area?
• Yes • no
the results of this question gave me a great boost as the majority felt that there was very little to do in the surrounding area therefore if I was to do the correct marketing and introduce my service in the correct manor I could receive a lot of customers. Also there was a few that felt that there was enough to do in the area and this could be because they use the services provided by my competition so it will be my job to win them over.
- Would you like to see a new snooker/pool centre introduced in Gants Hill?
• Yes • no
If not why:
This question was very closely linked to the previous question and that is probably why they have a very similar out come. Here I was able to ask if they would like to see my service introduced and overall I got a very positive outcome except a few. In this question I also asked the customers why they wouldn’t like to see the service provided and I was given a few answers which then helped me realised why some people were against the idea of a snooker/pool centre. For example one person replies that the locations are too dark an dingy and full of groups of old men, where another replied that it wasn’t a nice place for women as they felt intimidated in the centre surrounded by men in the dark. Others commented on the fact that the centres were all full smoking zones and this put them off where as others felt that the prices were to high for a regular visit.
- What is your perception of snooker halls at their present state?
• Sociable • time pass • value for money • not worth it • boring • fun • other (please specify)
From this question I was able to get the views on pool/snooker centres at their present state. From the results I am now able to change these views by focusing more on making my centre seem a lot more appealing and visit able for everyone. My results showed that pool centres are seen to be more of a pass time and one off thing rather than a regular thing for people to do with friends. So this has helped me as I can then focus on the things, which make the centres look and feel as they are and change them for the better.
- If you ever came and played pool would you be interested in purchasing food, if you would what types of food?
• Yes • no
If yes: (tick more than one if needed)
• Chips • sandwiches • cakes • meals • burgers • pizza
• Other (please specify)
- What type of drink would ‘you’ prefer?
• Alcoholic • soft drinks • hot drinks • all types
These questions gave me a great insight of what consumers would like during a relaxing game of snooker with friends. These questions helped me identify the main drinks and foods to use and the data above shows all the findings and they are very easy to read so don’t need in depth analysis.
Competition analysis
The 2 main competitors are:
- Gants hill billiards club.
- New world pool centre.
These are the 2 main snooker pool competitors but around the area there are many other areas were people can come an relax, for example there are many cafes which include the cyber café and sids place which are both in competition for my customers.
Above I have shown a map of the area surrounding my chosen location. I have pointed out my main competition and I will no go into depth about each one. I have already done an interview with David from Gants hill billiards club but that was more for help on starting up rather than competition analysis, but I did find some useful information from the interview. When looking at my competition I want to find out a few main aspects.
The main aspects that I will look at for each competitor are as follows:
- Service
- How they differentiate from others
- Costs
- Other services
- Customer feedback.
- New world pool centre:
Service: new world offers a wide range of services these include pool and snooker tables along with the availability of a bar where food and drink is served. They don’t do hot food such as chips or burgers just little snacks. They have large premises and have around 15 pool tables and 6 snooker tables. They also allow smoking in all areas and lighting is very dim.
Differentiation: the main difference with them compared with billiards club is that they offer the service of pool as well as snooker. This gains them a lot more of the younger population. They also don’t have a membership system so anyone is allowed to play therefore less hassle for customers.
Costs: £10.00 deposit and 1 pound per player.
Other services: the main service they offer is the bar which has a great variety of alcoholic, soft and hot drinks as well as little snacks like crisps.
New world have top of the range tables. They look something like this and would cost around £3500.00 each.
- Gants hill billiards club
Service: they offer a wide range of snooker tables. They also have a bar were they sell drinks and snacks. No pool tables or hot food.
Differentiation: they only specialise in snooker players and have some great pictures of people who have come to the club and made it big in the snooker world. They also have the membership system which means that you’re only allowed in via membership.
Cost: N/A
Other services: no extra services only a bar where they sell small snacks and drinks.
Service: SIDS place is a new café, which has opened and attracted a lot of new customers from the surrounding area. Their combination of great customers’ service and wide range of seating enables them to have this recognition in the area. They do all types of food and great seating available.
Differentiation: main one is their customer’s service it is great talking from experience, they also have great seating arrangements and fresh food made in front of you.
Costs: N/A
Other services: nothing extra compared to any ordinary café.
Service: they offer a wide range of services and could also compete for my customers. They offer access to Internet for set prices and they also off the individual’s food or drink at the same time. Only advantage for me is that it isn’t really a place for groups of friends to go but it still affects me.
Differentiate: they offer Internet access and there are not many places around this area that offer this along with the service of hot meals and nice drinks.
Costs: 50p an hour for Internet, food varies for what you want but they have competitive pricing.
Other services: none.
General info on Retail location available.
Shop to let (formerly known as Chopra and Sons)
44 Ilford Lane, Ilford, Essex.
Rent: £26000 per annum
Yearly rent is for the whole shop and the above flat market value for the leasehold of £100000. The freehold is £500000 because it is in the prime location for business purpose. The weekly sale it generates is more that £10000. This is because many working professionals pass this shop on their way from Ilford station. The Measurements are approximately 1000 sq ft.
Shop to let
115 green street London E7
Rent: £30000 per annum
It is located on the prime location of parade of shops on Green Street in forest gate London E7 close to its junction with Sherrard Road. This offers good transport links and is also nearby to other retailers and restaurants. The Shop measures approx 500sq ft with further room (100 sq ft) to the rear a WC and kitchenette leading out to the yard with rear access. New FRI 10 year lease with 3 yearly rent reviews. The Rent is £30 000 and premium offers in region of £60 000.
New Development 9 shops
144 Ilford lane Ilford Essex
Rent: £30000-£33540 per annum
This proposed site will be situated on A123 Ilford Lane between junction with Madras and Howard Road. This runs from Ilford to Barking, which is very close to the exchange shopping centre. The development offers 7 lock up shops, which is anticipated that it will be ready for occupation Feb 2006.
Units 2-6 will measure approx 1100 sq ft and two corner units are able be split into 13 units. Each shop has basements measuring approx 400 sq ft apart from shop apart from shop number 5. There are 22 allocated car parking spaces which are accessible from the rear of the site. Presently all the units have A1 retail consent although alternative uses can be considered (landlord and local authority consent).
Lease terms to be agreed with 3 year rent reviews as rent of £33540 per exclusive (units no’s 2, 3, 4 &6). The rent for unit 5 is £30000 per annum.
Shop to let
127 Ilford Lane, Ilford, Essex
Rent: £17000 per annum
It has a ground floor shop with modern aluminium shutters. Measures approx 960 square ft also has a small basement for storage purposes. It is not suitable for grocery, butchers, or laundry. A new 10 year lease with rent £17000 per annum. However this shop requires a one off premium payment known as a goodwill payment. It is situated in a prime location, next-door to the post office.
Shop to let
449 Becontree Avenue, Dagenham, Essex
Rent is £16000 per annum
Ground floor lock up shop is approx 375 square ft and the rear 3 storage rooms measuring approx 400 square ft in total. There is an external WC and a rear garden where it used to be used as an office space. The landlord imposes no restrictions on this lease. The flat is accessible from the. The property is situated on a parade of shops on Becontree Avenue, which is close to complimentary retailers and within highly dense population.
Comparison of Retail
We have now moved onto a somewhat more complex type of property in terms of rental valuation. In East London and immediate surrounding areas, retail properties are amongst the most popular. The area under study in general has a very dense, culturally diverse population which means there are many needs that have to be catered for.
Having done my research into retail property rent prices, i decided to select properties in different areas, as well as some properties within the same area for comparisons sake. Retail businesses strive in areas that are overly populated, there is many needs and wants to cater for; obviously the competition is fierce as well. We must make a note that just because an area does not have an extremely high residential property value, it does not mean that the retail space is not extremely expensive. One prime location, which many people may not have ever thought of, is Southall Broadway (west London). An equivalent of buying a lease on a property for retail on Southall Broadway is more or less the equivalent of buying a lease on a retail property in some of the top retail locations in Central London, such as Oxford Street. Baring this one example in mind we will now move onto the properties under study.
When a property is to be let on a lease, advice will be given to both landlord and tenant concerning the level of rent they should expect to receive/pay. Even with East London and immediate surrounding areas, there is huge variance in the level of rent between towns.
By looking at the rent per annum, we could see that the most expensive property was 144 Ilford lane (units 2, 3, 4 and 6) - which is arguably justified. These new retail properties are nearly completed and are situated right in the middle of Ilford Lane, which is well becoming a shopping haven. By far the lowest is 449 Becontree Avenue, Dagenham. As mentioned earlier Dagenham has a vast industrial history and has not been kind to new retailers setting up. Out of the three areas we have chose to study Green Street is an area deemed for more demand by customers and hence a higher probability of success, with Ilford and Dagenham following respectively. This statement follows up on the fact that even though the residential properties in that area are not of high value, it does not mean that the retailers bare huge costs. For example Ilford is currently just ahead of Forest Gate in terms of residential property value, but is on average cheaper in terms of buying a lease on retail property.
One obvious factor affecting the rent is the size of a property. The general rule states that the bigger the size the higher the rent. However this is not always the case when we use units, rents will drop as size increases.
Table of rent per foot superficial for selected retail properties
Above are the computed values for the rent per foot superficial, in other words the rent per unit. We can see that by far, 115 Green Street has the highest rent p.f.s (£50). This is double the second highest rent p.f.s of 44 Ilford lane. The many cultures in forest gate have made it a brilliant area for retailers of all kinds to take advantage of the opportunities available. Rather shockingly 127 Ilford Lane has the lowest rent p.f.s (£17.71). Another pattern we can observe is that the highest rent p.f.s. is of the retail property with the smallest area occupied (Green Street). This again confirms the number one rule in property valuation, that location is paramount to any other factor.
We are now going to try understanding why there is a huge variance in the Rent per annum/Rent p.f.s between the Ilford Lane properties (127 Ilford compared to the rest). Some of the reasons could be that the property lease is undervalued; the property is in bad location/condition etc.
144 127 44
Towards Ilford Station and Town Centre
A diagram of where the properties stand on Ilford lane, Essex.
Above we can see that 127 is in close proximity to 144, so why the massive variance in rent per annum and rent p.f.s.? Having visited the areas for ourselves we realised that next to 127, there is a massive grocery store, occupying 5 normal shops at once. This may be the reason for the reduction in rent- if the tenant was to sell grocery- he would probably be under fierce pressure to make ends meet. Again having consulted our estate agent, he confirmed our view but indefinitely confirmed that the lease was undervalued. The fact remains that the property does not have to be used for grocery only, it can be let for another business field al together. On the basis of a comparative method approach we re-valued the lease and came to the following calculations. Note these are excluding rates and service charges as we have done throughout.
By looking at 10 leases and their annual rents (Ilford Lane only) we came to a figure that we both, and the real estate agent believed to be more reflective of the current market.
Annual rent re-calculated
So we can conclude that the most important factor in retail property is the location, whether it is location in terms of town, or location in terms of how close you are to the biggest retailer on the street.
See attached plans for the development of the shops
This is restricting the tenant as to what they can use property for. It may result in the rental income being lower.
