If my business is highly successful and grows a lot larger, in the future I may think about expanding my business into a Private Limited Company (Ltd). A Ltd is often a family business with shares held by family members, private companies can not offer shares for sale to the public at large, so their ability to raise money may be limited. A limited company is a business owned by shareholders which is run by directors and set up as a body which is separate from its owners (the shareholders). If a individual group of people want to set up a business, another option is the formation of a limited company. If my business was to grow and become a Ltd, it would be very different from being a sole trader or being involved in a partnership as it can save the owner a lot of money. For example when being a sole trader or a partnership if the business crashes and goes bust then so does the owner whereas when you have a limited company if the business goes bust then the share holder is protected by its limited liability and does not loose all of the money that they have, apart from the money that has been invested. Many Public limited companies start off as Private limited companies and later in the future expand into Public limited companies, in order to raise finance.
If my business was to continue on growing and become any larger. I would then think about taking the next step, in creating my business into a Public Limited Company (Plc). A public limited company can offer its share for sale on the stock market in order to raise finance but not all Plcs do this as the cost of the company ‘flotation’ can run into millions. Tesco is a example of a Plc, which have stores open and running all over the county and also in other countries too. Although this would be a great achievement for my business PDW’. I think that it is a very unlikely chance that my business will grow to be the size of Tesco’s for example as I am only starting off as a single sole trader. Businesses like Tesco’s have had years of experience, and have become a huge demand all of the world as people are in need of the products that they provide (food and drink). My business only provides products for dancers, which is only a small part of the population. I think that if my business carried on to be successful I could emerge into a partnership, but I do not think I would be lucky enough to get any further.
Limited liability means that the owner and the business have segregated identities, therefore if the business were to get in debt then the owner of the businesses would not be liable for the debt, the only things that are liable to pay for the debts are things invested into the business such as shares, however fixed assets would be sold to enable the debt to be paid off. Limited liability is usually used by bigger businesses, as there is a lot that you have to go through in order to do so, therefore this could cost a lot of money. However a great advantage of this liability is that you will not lose anything personal to you.
Unlimited liability means that the owner and its business share the same identity consequently if the business does get into any debts then it will be their responsibility to pay for the debts if the business could therefore not pay for them. It is cheaper, and more straightforward to start off with unlimited liability if you are a sole trader, this stands simple as long as huge debts do not mount up.
As I am only a small business starting up as a sole trader I will start PDW with unlimited liability, there will be a small amount of risk, but this is no threat as any business starting up has risks. I only have a small loan so the risk is not very high. However if my business is successful over time and manages to expand then In the future will consider investing money and my own time into the business to become a limited liable company.
For my business that I am going to start I will need to know the certain laws for my type of business will need to undertake.
Trade Descriptions Act 1972:
It makes it a criminal offence to knowingly make false and/or misleading claims to the products that you sell. This would include any description that makes the customer think that the product is better or different to the product that is actually being sold.
- I need to be aware of this is my business as I will be putting a short description of the products in which I will sell on my website for customers to read, and so if this is wrong or misleading in any way I could find myself and my business in trouble.
Sale of Goods Act 1979:
This means that you must only describe what’s being sold so that the customers don’t expect something else. It must be sold to the standard of quality that has been aimed and described. It must match your promises of performance which you have included in the description.
- I must inform in the information what I am product and service I am offering to my customers. I will include the pricing of the designs as this may vary on what type of material they wish for a design to be created on, the price will also depend on the size of the design. Also I must include information damages within the product at all and where it is so that the customers are aware of this and will be willing to pay less than what I am actually selling the product for originally.
Supply of Goods and Services Act 1982
It aims to protect consumers against bad workmanship or the poor provision of services. It covers contracts for work and materials, as well as contracts for pure services, and this still applies even in everyday situations such as going to the hairdressers or the dry cleaners where you have no physical contract at all. Just as with Sale of Goods, Supply of Goods and Services legislation contains specific rights, which don’t have to be specifically mentioned in any contract, but cannot be excluded.
- This law doesn’t apply to my business as such because I don’t include physical contact like in a hairdressers, although I should be aware of how I treat the clothing once it’s being stored for collection for example, or how I repair damaged goods. Conversations and relationships with the customers must be taken into consideration as this is a form of contact.
Data Protection Act 1984
UK act of Parliament designed to protect individuals who have information about them held on a computer. The act obliged organisations holding personal data to register with the Data Protection Registrater and agree to abide by the principles of data protection outlined in the act.
- I will keep all customers data secure on my computer with a password and personal username allowing no-one to get onto the system and find out peoples personal details.
Consumer Protection Act 1987
This is an Act of the Parliament of the United Kingdom that made important changes to the consumer law. The product liability directive introduced a regime of strict liability for damage arising from defective products. They then created government powers to regulate the safety of consumer products through Statutory Instruments. This then can define a criminal offence of giving a misleading price indication.
- I must ensure that all products which I sell are of good quality and is exactly what the customer has asked for. This means that I need to check over every design to make it perfectly accurate to satisfy the customer. Also I must ensure that the price is right and not over the maximum amount.
Price Marking Order 1991
Selling prices must be given, except for goods sold loose from bulk quantities (eg fruit and vegetables). Also, the unit prices must be given for goods sold loose from bulk and pre-packaged products covered by existing Weights and Measures legislation. (This includes most food and drink, e-marked packages and a host of other products such as detergents, cosmetics, and envelopes). The unit prices must be given in specified standard metric units except for goods sold by number, where prices must be given for one individual item.
- I must include the prices of my products on the information about all of the products as all designs will vary in price depending on what it is that the customer asks for.
Sources of advice-
Around one in five young people in the UK are not in work, education or training. Youth unemployment costs the UK economy £10 million a day in lost productivity, while youth crime costs £1 billion every year. The princes trust address this by giving practical and financial support to the young people who need it most. We help develop key skills, confidence and motivation, enabling young people to move into work, education or training. They run programmes that encourage young people to take responsibility for themselves – helping them build the life they choose rather than the one they’ve ended up with. I have turned to this help programme before I am able to start up my business completely
After doing the 12 week course, the team will helped me to choose exactly which direction to go with. They assisted me to appreciate how business’s work, and how I need to be highly interested in the ways in which businesses operate, in order for my business to work.
I was required to the princes trust about interests I had within our community, previous or up to date hobbies that I have taken or take part in. After gathering all of this information they were able to help me choose a business which they thought would be best suitable for me to start up. The idea that they chose of which they though id cope well with, gave me a lot of confidence as I knew myself that I have had a lot of experience within this topic area, the business they chose was a dance wear company as I have a large amount of knowledge, understanding and experience in dance and have been involved in various types of dance. Therefore I will already know what style, material and colour of dancewear is most suited more different styles of dance. However to make it unique, I put my ideas forward too and decided to not only produce dance wear but to make it a personalised dance wear company.
Sources of advice-
Every person who decides to start and run a business always has to make their own decisions, this is not always simple and straight forward, therefore it is sometimes better to have a second opinion, so that it enables you to feel confident about the choices you have to make, also with a second hand it is an advantage if you are in need of any help, consequently if decisions are made incorrectly this could be time consuming and very costly to a business owner and its business. Sources of advice could be from individuals as such people like friends, family, employees, accountants, solicitors. The more professional the individuals stand the more useful they would be, for example I think that an accountant would be one of the most useful individuals that you could receive beneficial information from, this is because accounts roles are to put business finances into accounts to then let the business know what the overall result is and using that data, how they can improve their business, however as you are paying for their time this could result to being very costly. Friends and family however they may not be as professional as other individuals although they could be a great use of advice, they know you well so therefore they will stand a chance of putting you straight, telling you the truth so that you have no chance of failure within your business, but unlike professionals it is very doubtful that many of a business starters friends and family are going to have full knowledge on businesses. I do not have any close relatives or friends that are strongly knowledgeable in business therefore I will have to find a source of advice myself. In addition I have completed a levels in accounts and business, as a result I do have little knowledge, I am also sure that my a level teacher would be supportive if I am in need of further information.
However banks which are generally one of the most helpful sources available to get reliable advice from, furthermore it is usually provided also with free and professional assistance, banks tend to know everything anyone in who is starting up a business needs to know, each bank also usually has a specialist business advisor that anyone in need can speak to. These people give out free, information packs which are useful and include many different aspects such as finances of a business, business plans, taxes etc. This is the most common, useful place that small businesses lean towards to get advice. I think that I will go to a bank as a source of advice for PDW, as I think that out of everywhere this resource is best applicable to my businesses needs of information. Other businesses are assessable if in need of any source of advice as well. As I am only starting up as a sole trader with no previous experience it is crucial that I get as much help of advice that I can, in order for my business to run smoothly. Business link is the most reliable support that is given by the government to businesses in need of help, this website provides information and support for all aspects of business that someone is willing to start up, the aspects include things such as finance, grants, taxes returns and payroll, employment, skills, IT and e-commerce, sales and marketing etc. This is the link of which I found all of this information which was highly helpful, with every aspect and section of my business that I had little knowledge on. I found alongside the Princes trust website this link was a great supporter throughout the start up of PDW, as it covered significant knowledge that I needed in order for my business to be a successful grant. I also think that through the life of my business I will return to this website if I am in any need of advice or support as I know that they are a secure, loyal website where I will find all of the answers and corrections to my problems that may occur.
Stakeholders are people who have a interest or involvement within a business, a few stakeholders for example customers, employees, suppliers, banks and the government are a few of which I will discuss below.
Customers are the people who take the most interest in a business as these are the consumers of the product. As PDW is a personalised dance company customers will have to communicate to myself, or employees to enable us to know exactly what they are in need of. They will also have to take a interest into the business before consuming any products, knowing exactly what we are providing for them.
Employees also take a lot of interest into the business as they have to know exactly how each function in the business actually works. They will need to know every law, restriction and rules that apply to PDW therefore without any knowledge on the business this will not make them a loyal employee.
Suppliers are the people that I buy my materials and equipment off, without them my business would not be able to survive. These people must take interest into the business as I will be paying them for the supplies they provide to me. Suppliers also have an interest in the growth and prosperity of the firm. PDW will be receiving all of our clothing in bulk from the best suppliers, as this is the cheapest, simplest way of going about buying the raw materials I am in need of.
Banks may take interest into my business if I therefore lend money from them, they will have to keep on track of my business making sure I clear the payments that are owed. I may need a small loan for some advanced equipment that I may invest in, alongside this when my business expands and I decide to move into a small, local shop even if my business sales have increased I may still need to take out a loan to ensure that I am able to pay my rent regularly.
Lastly the government must take great interest into each and every business as I am going to have to pay tax. They will also be interested in statistics that may have a regular change, such as low unemployment, VAT etc.
Aims and objectives-
When a sole trader sets up they may have some unstated aims or objectives, for example to survive for the first year. An aim is where the business wants to go in the future, its goals. It is a statement of purpose, for example in my companies case I would like my business to be know not just in my local town of Stroud but throughout the whole of Gloucestershire. Business objectives are the stated, measurable targets of how to achieve business aims, again for example, in order to do so I will increase my amount of advertisements, and consider changing my promotion strategies in order to see if this makes a difference. A mission statement sets out the business vision and values that enables employees, managers, customers and even suppliers to understand the underlying basis for the actions of the business.
The main objectives that a business might have are:
Survival – a short term objective, probably for small business just starting out, or when a new firm enters the market or at a time of crisis.
Profit maximisation – try to make the most profit possible – most like to be the aim of the owners and shareholders.
Profit satisficing – try to make enough profit to keep the owners comfortable – probably the aim of smaller businesses whose owners do not want to work longer hours.
Sales growth – where the business tries to make as many sales as possible. This may be because the managers believe that the survival of the business depends on being large. Large businesses can also benefit from economies of scale
Marketing objectives are expected outcomes that a business tries to attain through marketing activities. Marketing objectives set standards to the business by giving the a clear defined target to work towards. These objectives I used frequently within businesses as it helps improve their method of sales, promotion tactics, etc. For a business to know what to improve, it gives them the full motivation to actually do it. Once an objective is set they can measure over any time span on how well they are progressing.
Objectives give the business a clearly defined target. Plans can then be made to achieve these targets. This can motivate the employees. It also enables the business to measure the progress towards to its stated aims.
The most effective business objectives meet the following criteria,
S – Specific – objectives are aimed at what the business does, e.g. a hotel might have an objective of filling 60% of its beds a night during October, an objective specific to that business.
M - Measurable – the business can put a value to the objective, e.g. €10,000 in sales in the next half year of trading.
A - Agreed by all those concerned in trying to achieve the objective.
R - Realistic – the objective should be challenging, but it should also be able to be achieved by the resources available.
T- Time specific – they have a time limit of when the objective should be achieved, e.g. by the end of the year
There are 7 different objectives which below I will state, however the first three objective are the main objectives of which apply to my business.
Increasing brand awareness can be done by advertising therefore is a new figure of promotion that can attracts the population which as a result lets people know about your business, this will engage customers leading to a increase in profit which then leads to a seen improvement in market shares. Without promotions and advertisements people will not be fully aware of the business which consequently means that no money will be made, which will downfall on the business and lead to a huge failure. This is why certain objective apply to different business. There are many different ways of promoting businesses such as, sponsorships, television adverts, internet sites, posters etc. I am going to aim to increase the brand awareness of my business by 10%. I will advertise my business using various methods of promotion for up to 2 months. Once a week I will put a ad in the local newspaper, Stroud’s news and journal, of which I will promote who I am, what I provide, where I am located etc in order for a larger audience to view my company making PDW a new recognisable business. I will also put up posters locally, the cost of these promotion strategy will be very cost effective and I will be able to measure the difference of customers I will therefore gain after the 2 months of new advertisements.
Improving profitability. As profit is the excess money left over after all of the expenses have been paid off. One way in which you can increase profit is to therefore increase or decrease the prices of the selling products. By increasing the price of a product it will put buyers off of consuming the products however those who do buy the products will balance this out and therefore higher incomes will be flying into the business although it will be less frequent sales, the sales will be sold for more therefore, more profit will be made. By decreasing the selling price may attract more consumers as it may be seen as a bargain, the business will be selling more products than usual therefore this will make up for the loss of cash lost on each product and with therefore also bring in higher profit to the business. However a got strategy would be to increase some prices whilst decreasing others, customers may be in need of more than one product one of which may be placed at a higher price than the other, which will then balance out the prices not putting the customers off. I think that as my business starts to expand this business strategy would be ideally suitable for PDW. I plan to increase my gross profit each month by 5%. I also propose to improve my profitability by keeping the cost of sales to a minimum, in order to do so I will compare suppliers prices with my competition making sure that I am receiving the best price possible for the raw materials that my supplier provides me with, all in all if I do change suppliers I will be able to measure how much money I have saved over a period of time. To make sure this is worth acting upon, spending at least a hour every two weeks comparing these measurements is an achievable process hopefully bringing a successful outcome to the business.
Improving market share. Sales figures do not necessarily indicate how a firm is performing relative to its competitors. Rather changes in sales simply may reflect changes in the market size, or changes in economic conditions. The firms performance relative to competitors can be measured the proportion of the market that the firm is able to capture. The proportion is referred to as the firms market share and is calculated like so, market share= firms sales/total market sales. Market share shows the proportion of the market that you have in comparison to other people within the market, the higher share of the market you own the higher the profits you will receive and the more brand recognition you will gain. My aim for improving my market share is throughout a period of 6 months I will own 10% of the market within my local area, of personalised clothing. Within the next 6 months I will be able to view my progress against other competitors on the market, however as I am a small business I will not be able to start improving immediately. The market share in which I will invest in will be a similar company to my own which I am just starting up, and the sales of the business I will compare to all other business with unique similarity within my local community. Every factor of this objective will help contribute to people buying my goods, therefore our community can help each others wants and needs. I will compare these measurements after the first 6 months of trading, subsequently I will compare these measurements regularly.
Understanding customer wants and needs. Meeting the objective needs and subjective wants of customers to drive sales is the basis of most businesses. It is how they build business relationships, remain profitable, and how they expand into new territories. While the process of meeting those needs and wants may be different for each client or project, the goal is to lead your team in satisfying customer goals and expectations so your company will receive future work. Needs can be very similar between customers, while wants can vary enormously based on the different perceptions and diverse experiences of your client base. Whereas people need water to drink, food to eat, and air to breath at a minimum level, people don’t always want just water to drink, they want that advanced step like coca cola or a alcoholic beverage. A selling product is all about pushing the limit to consumers expectations, therefore if a product is set at a reasonable price, has average to high quality then that is what’s needed in order to satisfy a customer, however a successful business strategy should meet both wants and needs of people in society.
Diversification, is a form of corporate strategy for a company. It seeks to increase profitability through greater sales volume obtained from new products and new markets. Diversification can occur either at the business unit level or at the corporate level. At the business unit level, it is most likely to expand into a new segment of an industry that the business is already in. The reason of which they do this is because it spreads the risk, therefore the business is less likely to fail. If I business is opened to a wider range of markets the potential of it getting in high returns is a lot more likely to occur. Business can use previous skills and abilities to complete this new challenge. This whole objective is the thought of risk verses reward as the higher the risk the higher the reward, however the lower the risk the lower the reward, all in all if all fails the risk could kill your business and you could therefore lose everything.
Developing a new business, this means finding gaps in the market to fill with a new business to create a new market for the business you have therefore innovated. However this could also mean just to replace old business that has now been updated into a current modern climate where everything is moving quicker and more efficiently. If a business is already in a good position it may just need a few changes in order to meet other, advanced wants and needs of customers. The product life cycle, introduction-growth-maturity-decline, once the product goes into decline the business will need to think up of a extension strategy either a new product or adaptation to the old product to keep sales running and hold up the market.
Re-launch of product, which is done by modification to the existing business, the re-launch is done at the mature stage of the businesses life. The business lifecycle is the system of which all businesses go through at the selling life on the market. All stages of the cycle are measured by profits from the business over a certain period of time. However every type of business goes through different stage of the lifecycle each at different times. When the sales start to drop at the maturity stage the company will need to re-boost profits again, one way of doing this if by re-launching the same product but adapting to it, making it a new product to the population, by making it new modification of the business can be made things such as, refurbishment, deals, advertisements, offers and ads to make customers re-aware of the product or service.
Market research is a collection of information about the market. Covering the customers, the companies competition and the economy. Business's need accurate and up to date information, although the business world is always changing around, changes may occur in: Technology- the way in which things work, and how they are produced. Customer tastes- peoples opinions on things, what they do and do not like. Competitor products- other businesses information and tactics. Economic conditions- money issues worldwide.
Marketing research is a really helpful thing to have, you gain more understanding of customers needs through it alongside this customers tastes are forever changing therefore knowing clients exact wants and needs throughout regular changes in market tastes changing is also a great advantage to have within a business, as well as reducing the risk of a product or business failure and it may even slightly help anticipate future market trends. Market research is gathered information about customers wants and needs within the market. Market research is the key factor to get advantage over competitors. Market research provides important information to identify and analyse the market need, size and competition. This is used to find out if the product will be a successful profit maker, whether customers will invest in this product. We use market research to find out who and why people want to buy our product, and if there are any improvements to make our product more achievable in the long run. The main information a business is in need of in order for their business to operate is about the customers, therefore without having the custom to buy from the business will be totally useless, researching this information gives us more of an idea of our customers wants and needs to therefore reduce the risk of fail, I will also use research to analyse competitors and sales. Main business needs are to focus on customers wants and needs, to please them in whatever way possible, this is done by required opinions on existing products and how it would benefit them if a new product was created.
There are many various ways of which research can be gathered the methods are grouped into 4 different categories which consist of primary research, secondary research, quantitative data and qualitative data. Using these 5 methods of research I am going to conduct my own research for PDW in order to succeed. For my market research I will use mostly primary and secondary information which will give me a better idea on whether my business is going to be successful, or need further improvements. The research of which I will collect most of will be quantitative data, however small amounts of qualitative data will be collected.
Primary research involves a collection of data which does not already exist, it is usually undertaken after the researcher has gained some insight by collecting secondary data. Primary research means to collect the research yourself. There are basics approaches to data collections using primary methods. It can be collected through many forms, for example : Interviews, questionnaires/surveys, sampling, focus groups.
A interview is a conversation between 2 or more people where questions are asked to obtain information. They can either be generated face to face or over the phone. There are various types of interviews of which conduct different types of data either being qualitative or quantitative. Interviews are similar to questionnaires most of the time they have a mix of both qualitative and quantitative questions, this means further detailed information could be collected rather than set questions. I do not think this would be as suitable as other methods for PDW as it is very time consuming and costly.
Sampling is an important aspect of data collection. This is where a random small section on the population is used to provide answers and a gathering information about the population itself. Researchers rarely survey the whole population because the cost is to high and the individuals making up the population may change over time. There are many advantages of sampling, the cost is lower, the data collection is fast and the data will be high quality information and accurate as only a small sample of the population is tested. There are many methods of sampling:
Quota sampling- The population is segmented into sub groups then selected and put into different units of certain characteristics, for example all aged 18-25 in one group. I think hat this would be the best suitable method of sampling to use for PDW therefore I will be able to collect a certain amount of people with common characteristics, as I am only looking to sell my service to people with a interest in dance until my business expands and I am able to afford more raw materials and equipment.
Random sampling- This means that everyone has a equal chance of being asked a question. Therefore people questioned are picked at random there is no order or logic to it. I do not think that this would be a suitable method to use for PDW as it is aimed at a target audience of dancers therefore not every random pick will be a dancer.
Stratified random sampling- This is where the population gets segmented into smaller groups of similar characteristics for example they may as 20 females with a height of 160cm and 20 males with a height of 180cm. This is known as strata, these are then grouped to form a random sample.
Cluster sampling- the total population is divided into these clusters and a random sample is then taken from these groups, the required information is then collected from these groups.
This also is a method obtaining primary research data, this contains qualitative information as it involves a small group of people, who analyse the effective outcomes of their product from the others and to obtain useful feedback and responses. The group spends time with the moderator to discuss opinions and issues to the product/service. This discussion should be pre planned by the moderator and guided carefully throughout the conversation. The feedback given may inspire the moderator allowing them to change or develop anything within the product or service itself. I carried out a focus group with 6 people all female ,ranged from different ages however the age gap was not hugely different. The feedback I received from the members of my feedback group, had a positive outcome they gave me an useable information on how PDWs service will benefit them, and whether any improvements could be made, to satisfy them further. I can happily say that they though my price range was ecstatic, therefore this has given me great confidence that my business will be a success. Overall I had great responses and positive outcomes on the marketing of my product.
Surveys are a lot like questionnaires, although questionnaires are usually asked by the people doing the research to the participant and usually unless they are open questions generate quantitative data. I do not think that this would be suitable for PDW as this would generate quantitative data rather than qualitative data, which I am hoping to collect.
This is the most common method of collecting primary research data. This is a series of questions used to collect data from a specified number of respondents which may help consumers with a product. A careful design is required in order to be effective. I have created a questionnaire, in hope to have great feedback for any improvements for my product, if customers will invest in my product, who will buy my product and where it will sell. I think that this is a highly suitable method of research as It is quick effective way of asking the public the information that I am in need of.
I am going to conduct part of my primary research through a questionnaire. This will enable me gain a insight about what people are going to think about my business, whether it is going to be a popular success or dyeing fail. It may also help me to improve certain aspects within my business. When creating a questionnaire at all times I must think about things that I actually need to know, it is vital to include the marketing mix- price, promotion, product and place, as these are certain aspects which may make huge differences to a businesses life. I will take a quota sample to select the people that I would like to take my questionnaire. Using a questionnaire will generate up to date, reliable information and will also be very cost effect, and will take little time.
Overall I asked 50 people to complete my questionnaire all being girls, I do thing that I should have included a few boys into this questionnaire, however I think that asking a fair amount of girls will give me the correct information I am looking for.
1. What type of dance do you prefer?
Ballet Jazz Contemporary Street Other (please state)
19 9 4 17 1 (ballroom)
I asked people what type of dance they preferred, by analysing the results I am able to see which type of dancewear people will suite to their style of dance, therefore this enables me to buy the correct amounts of raw materials and equipment to create this dancewear.
2. Do you have a set costume for dance?
By asking the participants whether they have a set costume, this will tell me whether my business will be popular to Dancers or not, therefore if not I will be able to make it not just a dancewear business but maybe another genre of clothing. However the results cam out to around 50% so for now I think that I will stick to just providing dance wear.
3. Do you dance often?
By analysing these results this showed me that a lot of dancers are in need of dance wear. This is a positive result and hopefully the more I advertise the more I will sell.
4. Is there a pacific logo for the company that you dance for?
By evaluating this result, this showed that more than half of dancers do not have a specific logo for their dance, therefore this will give me a huge chance to increase sales if I therefore speak to clients advising them why it would be good to personalise or even get a dance company logo.
5. Do you enjoy dance?
Every participant that was asked whether or not they enjoyed dance, said yes therefore this shows that there is a chance of everyone investing into my products that I am offering, whether or not it is pacifically for a certain dance company, a dancer may feel more comfortable to wear a specific dance wear rather than home, casual clothes.
6. Do you like your dance wear?
Yes No (if not please state why)
46 4 (uncomfortable, unattractive, inappropriate, sticky)
By looking at these results, an advantage is that most dancers appreciate their dance wear that they wear, so they dance wear I am offered would be appreciated by the consumes, however a downside to this is that if dancers already like their dance wear they might not want a new type of dance wear or might not want to therefore personalise it.
7. Is their a certain colour code for your dance wear?
After analysing these results I can conclude that 50% of the results show me that they have a colour code and around 50% do not, therefore this means that as I am buying in bulk, I will order various different colours in, therefore this means that a dance company can buy a certain amount of one colour, however individuals can buy one colour if in need of that.
8. Do you pay yourself for your own dance wear or is it funded?
Self paid funded dance wear
48 2 (boarding school of dance, at a royal dance school)
This shoes that most people pay themselves for their own dance wear, which is better off as they will be able to choose their dance uniform rather than having a set one.
9. Do you have more than one dance wear?
After gaining these results this shows that a lot more people have more than one dance wear, this is a advantage as I am offering various types of dance wear, of which can be personalised, increasing sales, as people may be interested in renewing not just one of their dance wears, but all of which style of dance they do.
10. What material is your dance wear made out of?
Silk Velvet Cotton Other (please state)
8 12 28 2
Advantages of primary research.
Researcher controls the search design to fit their wants and needs.
Addresses specific research issues. Enables the researcher to have control on how the data and information is collected. The data collected is the researchers own, this means they do not have to share this with any other researchers. Research funds spend efficiently. Figures and opinions both used.
Disadvantages of primary research.
Compared to secondary research primary data may be very expensive. It takes longer to undertake primary data than collect secondary data. People may not reply if emails or letters are used.
By the time the research is complete the data may be out of date.
Primary data collections require a research plan. It can be be time consuming.
This is where the required information and data is collected by someone else for another purpose. Secondary research can come either from 'internal' or 'external' sources. Internal are things such as data records may be in or out of date. Cheap, quick and convenient, sales and activity reports. External are things such as data commercial research organisations, government, competitors, magazines and general media. The only difference to primary research is that it will not be be as accurate. The secondary sources could include previous newspapers, reports, magazines, statistics.
The internet is a global system of interconnected computer networks, who serve billions of users worldwide. The internet carries a big range of information, resources and services. The internet is a big part of any business, this will be used frequently within my business. You can access mostly everything from the web, therefore it will be time consuming and cost effective which is 2 great advantages that my business is in need of. It will enable me to analyse local competitors, which are huge threats to my business.
Government figures, and statistics are also a form of secondary research. The government is always releasing up to date information about business as it is the law for them to know the ins of out of them. Therefore they publish a lot of statistics which I think will be very useful to my business as it is trustworthy data, this information of which I will collect from this method of secondary research will be no additional cost to my business, I would not be able to collect this information myself therefore it has many advantages to it.
Things such as newspaper have a lot of useful information within them, which can be used to gain research in order to understand customers wants and needs. It is important than I keep up with the regular changes in trends and tastes to meet my customers wants, therefore I think that checking the newspaper regular will be a good idea, it will also add no cost onto my business.
Many market research organisations collect data and sell it onto other business as a part of their own trade, therefore I could buy some of this data analysing competition to my business.
Advantages of secondary research.
Ease of access- With the availability of online access, secondary research is more openly accessed.
Low cost to acquire- The use of secondary data has allowed researchers access to valuable information for little or no cost to acquire. Therefore, this information is much less expensive then if the researchers had to carry out the research themselves.
Clarification of research question- The use of secondary research may help the researcher to clarify the research question. Secondary research is often used prior to primary research to help clarify the research focus.
Disadvantages of secondary research.
Quality of research.
Not pacific to researchers needs- In many cases, secondary data is not presented in a form that exactly meets the researcher’s needs. Therefore, the researcher needs to rely on secondary data that is presented and classified in a way that is similar to their needs.
Incomplete information- In many cases, researchers find information that appears valuable and promising. The researcher may not get the full version of the research
Not timely- With companies competing in fast changing industries, an out-of-date research reports many have little or no relevance to the current market situation.
The 4 P’s-
Product is anything capable of satisfying customers needs. Products are one of the most important elements of marketing, a product needs to exist for another element of the mix to occur. This should define the characteristics of the product which will meet the customers needs.
Product differentiation is vital to include within your service development in order for your business to succeed within the market. A product has to be noticeably different from other products to successfully compete against business competitors in order to make a product more successful than another businesses the service of which I am providing, a personalised dance wear offer, are going to be promoted towards a wide variety of dancers locally. If a product is being recreated it is vital to ensure that difference in the service of which offers the products is recognised crucially by customers. A distinctive design must be used on a product to attract customers attention, therefore my unique selling point for my business is that all of my personalised clothing are highly unique satisfying my customers ever want and need, to ensure that they feel comfortable and ready to dance. I think that most dancers would want to buy their dance wear, and personalise it from a independent business, whom of which is reliable, loyal business. In the future I would like to expand onto my business, not just personalising dance wear, but personalising various clothing, I would also like to sell dance accessories, to also match my customers wants and needs.
The pricing strategy- know the market, and keep a eye on all rivals. Price is the quantity of payment given to one selected party to another in return for a product or service.
Holds a set price, low price set to secure high volumes of sales. This pricing strategy is suitable for products with a long anticipated lifestyle. I think that this pricing strategy is suitable for my business as I would rather offer my service at a low price to start with to gain more profit, then if my service becomes popular with the population then I may take my price a little higher to gain more profit.
High price lowers price over a period of time, low volumes. Skims profit of market. Products using market skimming usually have sort lifestyles, or will face competition in the future. I don’t think that my business would suite this type of pricing as I am going to set my price average accordingly to the populations suggestions on my market research.
Price set in accordance to the customers perceptive about the value of the product rather than the actual cost of the product, the market price, the competitors price or the historical price. I don’t think that I would choose this type of pricing for the service of ‘PDW, as id rather set my own suitable price, and either take it lower or higher due to whether my offered service is popular and profit making or not.
Products deliberately sold below set price to encourage sales elsewhere and to stimulate other profitable sales. This is typical in supermarkets for example. e.g. free mobile phone when taking out a contract package. I do not think there is any other profitable sale that I could link to the service that my company is offering, so I don’t think that this would be suitable for my businesses pricing strategy.
This strategy is used to play on consumer perceptions
Classic example known around the UK- £9.99 instead of £10, this is to persuade customers that the product or service is cheaper than it really is. This links with value pricing- high value goods priced according to what consumers think should be the price for the product. I think this would be a great pricing strategy to invite the customers into automatically taking interest into my service, it will make the offers look affordable to the mass, and therefore should create a good sale.
Going rate (price leadership)-
A price is set at a going rate(current, standard or usual price rate)
If you set your rate too high, you will lose market share. If you set your rate to low the price leader would match your price and therefore force a smaller rival out of the market. Where competition is limited 'going rate' pricing may be applicable. Deliberate price cutting or offer on free gifts force rivals which are normally smaller and weaker out of business. I don’t not think that this would suit my business.
Overall I think the pricing strategies which would best suite my business is penetration pricing along with physiological price, as I would rather start with a lower price to encourage consumers to take interest into my service but as my business becomes more popular the use of physiological price would help to invite the customers to thinking that my service is still being sold at a reasonable rate. My prices will vary depending on the style, material and actual design. I have decided on these prices as of the data I gained from my primary research, mostly from my questionnaire of which I generated a lot of information from.
For a product to sell it must be in the right place and the right time for the customer to buy it. Things you must take into consideration-
-road links, in order for the customers to find where the product is selling.
-parking, obviously close for the customers to access their cars easily is the product is big.
-population nearby, for the product to become poplar and so many people can access the product easily.
-nearby shops, so there is a mass population and so the customers are already in the location where the product is selling.
-supply chain, so it is easily transported from the supplier to the customer
TIMING IS EVERYTHING!.
I am starting of as a home based business so for now, I am not open for clients to view the products, however I do have an online website of which they can order from and view the products that they are consuming, however once my business expands I will move into a small shop within the centre of my local town. The wider the span of operation I open the more customers a business will be targeting at.
Seasons- the product matters to what season it is, for example you do not want to be selling flip flops in the winter or Wellies in the summer.
Fashion/Tastes- the fashion is ever changing around the world, a new fashion is created and changed ever so often, so shops and businesses must not sell things that are currently out of fashion!
Promotion- Timing in relation to product push or availability. On the market the consumers usually pull the goods or information they demand for their needs whilst the supplies push them towards the consumers. I think the best season to promote my product around is Christmas, this is where the children and adults buy movies, for easy cheapish presents. This should take a rise in the sales when they are first put on the market. This is a new product which makes it a new fashion that has been created so as this is different and nobody has seen it before a new fashion which has created should be popular with the mass.
This is the link between the seller and the buyer, the closer to the customer the better your sales. Making the product or service available for use of its consumers.
Buy in large quantities from producers break them into smaller quantities to sell them for more in order to make profit to retailers.
-Reduce product transport costs.
-Retailers can order small amounts from wholesalers.
-Wholesalers buy for a low price from the producer and add profit onto the price paid by the retailer.
I think this is a good idea for my product, as I am hoping to sell a mass amount of my product I think it will be best to create a large quantity then sell small quantities for smaller retailers who are willing to sell my product.
Producers Sends bulks to large deputes
run by wholesalers.
Wholesalers Packs into bundles for retailers.
Retailer Display in store.
Customer Buys product.
A organisation involved in the process of making a product or service available for use of customer, to distribute product or service as a local sales point. Usually specialised in a particular market.
A example of a type of distribution is a agent. There are many types of agent : Travel agent
Producer selling directly to the end buying customer, no parts to the distribution channel. Direct marketing is a form of advertising that reaches the audience without using traditional methods of advertising such as TV, radio, newspapers. Businesses communicate straight to the customers with advertising techniques such as fliers, letter and street promotion. These various methods are also used- Direct mail, E commerce, TV marketing, Door to door.
Retailer- part of a distribution channel. A retailer is the final step in the chain. A retailer buys good in large quantities from manufacturers or importers either directly through a wholesaler and then sells smaller quantities to the end user. Deals directly with customers focusing on consumer markets. There are various kinds of retailers : multiples, independence.
-This is 2 kind of business marketing websites.
Consists of companies promoting their product or service and consumers buying or selling products or services on the internet- trading sites and other computer networks. Companies use this to promote business worldwide and so people are able to purchase products online.
There are many advantages for selling online-
Websites give businesses a new way of marketing, selling products and services.
Builds a relationship with the customer.
Very effective, easy to access.
Lower risk of selling in inter nation markets.
This is not a replacement for traditional shop marketing. Websites should compliment them, and support them.
I would like my business to be also promoted and marketed online along with my personal shop with my offering service, so the mass can view what I am offering without going to a actual shop, this will make it easier for them to tell PDW what personalised art they want on their dance wear efficiently. Even if promotion on my business is just used on the internet without the actual sales of my service, this will help support the marketing of my product held in shops.
My location will be centred in the middle of a busy, popular shopping town, therefore my business will attract the population interested in what my company is offering. However as I am only starting off from a home business I will need to wait until I have enough profit to invest into a shop, once I have gained a bit more cash from my business I may open a stall on our local towns market to see if this increases sales too. People who may not take a interest in dance may then casually walk past my shop whilst in town, and tell friends and family who do take a interest in dance about my business.
The communication link between sellers and buyers for the purpose of influencing a potential buyers purchasing decision.
Promotion are strategies used to make the consumer aware of the existence of the product or service.
Businesses advertise to-
Increase sales. Increase awareness of the product or service. Compare with other products or services- new or old. Introduce a new service. Tell the customer that the product Is for sale. Explain what it is (how this will satisfy the customers wants and needs)
Persuade them to buy again. (Share a bond with the company/business) Persuade the to make a purchase on the service for the first time.
Above the line' promotion is the use of media and advertisement.
Promotional activities carried throughout mass media, this things consist of things such as, TV, radio, cinema, internet, posters, newspapers, yellow pages. These things are promoted at a mass audience. These are all advertisements that the population see daily. Or have easy access to viewing. I do think that this would be a suitable method of promotion, although I think this would be a good type of advertisement when my business expands a little as these method are very costly and may take a lot of time to generate.
Below the line' promotion-
These promotions are targeted at certain individuals according to their wants and needs. Things such as, Direct mail, packaging, personal selling, public relations, sales performance, money off, discount vouchers, PR promotion, sponsorships.
New media such as internet, mobile text, teletext I think that id use this advertising technique the most, as mostly everyone uses technology every day so this would be and easy way to access successful advertising.
I would use new modern ideas of advertising such as mobile phone texts, internet messages and emails, as I would consider my service to be aimed mostly from teenage to a early adult age range. Although I am aiming my service at a certain age range, I would hope to see people of different ages purchasing and taking interest in what I am offering. I would also use general promotion such as posters, billboards leaflets etc, for the mass to be inspired in the offer I am giving. I am going to create a newspaper advertisement that I will put in a few local newspapers such as Stroud daily mail, I will analyse this source of promotion over a couple of months to see if this is helping my sale increase at all. The website of which I have set up will carry out further promotion for the mass to see, however they will need to access my website in order to see what service I am offering. Promotion is important to my business life as if I have no success within my business then there would be no point in it being on the market. I will also need to use promotion to meet some of the marketing objectives of which I have set.
There is only one other local printing shop which, personalises clothing within the area of Stroud/Gloucester. However they do not have a unique selling point, targeting one aspect which in my case I am aiming at a target audience of dancers. I am hoping that this will create my business great success, therefore when I expand my business into personalised not only dance wear, then my customers will know that PDW is a loyal, trustworthy company to rely on.
Strengths means things that are successful about the business. I will use my business strengths to build my business, whilst breaking into the market with flying colours. I have many strengths within my business one being my unique selling point, that I customise dance wear, to the best of my ability, striving to please each an every customer. This I will use to fight against my competitors.
Weaknesses are things that may cause problems within my business, these are the downsides that may occur during a businesses life. I think my weakness will be similar to a lot of small businesses starting up, getting your company known, I think that unless I invest in a lot of advertising strategies my business is not going to be spoken about, therefore I will need to set an objective about my promoting skills so that my business starts off successfully.
Opportunities is identifying and providing solutions for the future. My strengths are within my unique selling points of my business therefore this is where my opportunities lie, If I can interest people into my business then I can therefore keep my customers flying in. More customers will be attracted when I am able to move into a small shop in the town of my local community, I will need to make enough profit so that I am able to do this. This will also help increase sales as more people will be able to view my shop, and it will be easier access for most.
Threats is where something negative may take a affect on my business, which could cause great fails. I feel that as my business is only a personalised dance wear for now, most people will think that I am singling out other aspects of clothing genres, therefore when I have enough profit to expand my business may not take interest into PDW for this apparent reason. Another threat which I think could take off the start up of my business in badly is if people arer not aware of PDW, therefore to make sure that I am confident about the start up of PDW I will need to assure that there are enough advertisements in order for the mass to see.
Regulation have to be followed within every business, so there can not be monopolies which are the main companies dominating the market and not letting smaller ones in, this is a huge control that businesses have. Incentives could be given to the business such as tax incentives, regional aid and government grants. Taxation however affects demand, VAT, income tax and corporation tax.
Laws & regulations
Controlling, the economy using economic policies.
Taxes and government spending.
The political factors that could affect PDW is laws and regulations once I start employing staff and trading. However I could receive tax incentives once I have gone through my first year of trading, this would be unexpected income which could be used for reinvestment in the business.
Within our economy there are many issues that affect the ability to do many thing within a businesses life. These issues include things such as not being able to meet the wants and needs of customers, the demand and supply, unemployment, inflation and interest rates etc. New competition could be finding ways to make a cheaper product better quality. Recession is a major issue which occurs within business, this is where the country has a negative economic growth for half a year, which is caused by changing patterns and many other factors. When a market changes this causes social change, a change in needs, wants and economic climate.
Although the UK have experienced recession recently, we are slowly creeping out of it, therefore lately less people have been spending their savings on extras however now we are coming out of the recession consuming patters are going to be changing and sales for extra wants will be rising. This is no threat to my business as I have just missed the recession, people are going to be spending out on excessive products.
These are things affected by human characteristics. This is a vital part of any business as every one is made up differently however every worthy business sets out to meets the wants and needs of each and every customers. Social factors consist of things such as ethical trade, employment, fair trade and health issues etc.
For PDW depending on the style of dance people do, is a big social element, of what I will need to provide to them in order to satisfy their wants and needs of the product I am offering. As I am going to be personalising various printings onto different materials, and styles of dancewear employment is crucial, so that workloads do not get on top of myself I must ensure that I have enough workers to complete the orders that my customers wish to make.
This can be a huge advantage to a business as technology is always growing and improving, therefore this is only if they use it efficiently to run alongside their business. Computer applications, enhanced communication, telephones, these are a few technical things that a business may use. Opening new markets on a internet site for example to purchase products and to have quicker obsolescence which affects marketing objectives.
I will need to use communication so that I can stay in contact with my customers, the main source of technology I will use is the internet as I will need to regularly check if clients have placed orders onto the website so I can therefore satisfy the wants and needs of my customers.
All businesses have laws and regulations oh which they have to stay within to be legal, if any business were therefore to breech these then their business would not be able to carry on running. The laws are in place to make sure that all staff and customers are taken care as well as possible, they are also obliged to make sure that all trading is done fairly and ethically.
I will make sure that within PDW I will follow all laws and regulations of which apply to my business. Creating a safe and legal environment for employees to work, and customers to shop in. This will also help the business run effectively, creating a successful outcome.
The environment is becoming increasingly important for many, therefore it is important that environmental issues are taken aboard. These issues could include, pollution, re-cycling, waste of goods etc.
I will recycle as much waste as possible, also trying as much as possible to use sustainably sourced materials. I will also try and find the closest supplier as possible, of which meets the wants and needs for my business, this will therefore decrease the amount of pollution let out by the supplier when they delvers my raw materials to me.