Marketing strategies.

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Content

        Page

Action plan        1-2

Introduction        3

- Background        3

- Company Formation                4

Market Research        5-15

  - Stationery market        5

  - Potential customers                6

  - Benefits and costs to local community        6

  - Competitors        6

  - Business objectives        7

- Questionnaire survey        7

- Analysis of questionnaire survey        7-11

  - Marketing mix        12-15

       Product        12-13

       Price                13

       Promotion        13-14

       Place        14-15

Conclusion        16-19

Bibliography        20

Appendix        21

  1) Competitors’ information        

  2) Questionnaire        

  3) Mail shot address        

4) Letters and replies to/ from suppliers and

advertising agents        

  5) Retail premises and rent survey        

  6) Advertising rate        

Action plan

1) Decide the type of business I am going to do

  1. Research and data support

2) Decide the details of my business like:

  1. Name
  2. Size
  3. Location --- site and rental survey
  4. Set capital
  5. Product range --- what products shall I sell
  6. Price range --- what price shall I charge
  7. Type of ownership

3) Market research

  1. Source of information

i) Business directory

ii) Yellow Page

iii) Self survey

iv) Access to Internet

v) Trade and business magazines

vi) Local chamber of commerce

vii) Region branches of Trade and Industry

viii) TECs (Training and Enterprise Council)

4) State my competitors

  1. Identify competitors
  2. Check their performance

5) Decide my objectives and aims

6) Decide on my potential market and customers

  1. Define market
  2. How will I find my customers

7) Contact supplier

  1. Letters to suppliers
  2. Requesting catalogue and transaction conditions

P.1

8) Select product

  1. Against suppliers catalogue
  2. Spend a day at competitors’ shops to find out what items sell

quickly

9) Set marketing mix

a) Product

                        i) Decide on product range

                        ii) What kind of packaging suits my customers best

                        iii) Product logo

                b) Price

i) Pricing

                        ii) Check against competitors’ price

                        iii) Check how much my customer would like to pay on certain items

c) Promotion

i) Advertising campaign

  1. Word of mouth
  2. Local newspapers and magazines --- choose appropriate    

advertising media

  1. Printing leaflets and brochures
  2. Yellow Pages
  3. Advertising on public transport
  4. Direct mailing catalogue
  5. Promoting business by WWW

d) Place

i) Site location

ii) Product display

P.2

Introduction

1) Background

Oxford is famous for its education. Oxford University and Brooks University are situated in and around the town centre with numbers of colleges around it.

There are more than 20 international schools and tutorial schools in and around the town centre. Number of students attends universities and schools are great. The number of full-time and part-time students is rising in recent years, together with the number of pupils of school age. Stationery consumption is great and steadily increasing so stationery retail would be a potential market. Therefore I decide to establish a retail shop in town centre selling stationery such as pens, refills, paper, envelopes, notepads, files and related products with the brand name of the shop and providing photocopy and colour printing service to students. International and local students could be my potential customers.

I would locate my shop in town city because there are many students studying around town city area and other students in further distances would often go to town centre.

As for price I would set it at middle range with a maximum price not more than £2 per item in loose pack because students would not spend too much money on stationery and they often buy in small quantity. All stationery shops are selling personal, students and office stationery. Many are offering bulk quantity discount but none is concentrated on students. I will open a student stationery shop creating student image in every of my products and student care.

P.3

2) Company formation

  1. Company name ------ James Fung Stationery Shop

  1. Size of the shop ------ As my shop would not sell office stationery and      

furniture, so the size of the shop would be around

50-100 m2 located in town centre.

c) Initial Capital ------ about £50000

d) Ownership ------    In forming a company, there are many kinds of

ownership and each has its advantages, but some of them don’t suit me for starting up a stationery retail shop.

For example a partnership is usually used for professional service, there would be possible disagreement between partners and lastly I don’t have a partner. The reason why I don’t choose a public or private limited company formation is because my business is a very small one that I cannot afford such a huge amount of money to set up a plc or Ltd. Besides annual accounts are needed if I set up a plc or Ltd and the audit fee would be very expensive.

So after weighting the advantages and disadvantages of different types of ownership, at last I decided to be a sole trader. I recognise the advantages and disadvantages of being a sole trader as follows:

P.4

Market Research

  1. Stationery market

I went through some business directories and trade and business magazines* and reports* on stationery trade in the central library. The figure in those reports show that stationery market is promising. They also show that stationery consumption is increasing every year.

* Bibliography

P.5

  1. Potential customers

It was also pointed out by Market Report 2000 stating that “the background influences on the stationery market are mostly favourable. These include strong employment level…, rising number of school pupils and students in higher education, and the growing use of home computers with printers.”

Besides I have counted from the Yellow Pages that there are 23 schools and colleges in and around the Oxford town centre. The number of students is great and ever increasing, so I think opening a stationery retail shop would be feasible because the students would be my potential customers. From the analysis of my questionnaire survey Fig 1 also shows that over 50% of the shoppers in town centre are students so the customer base is large enough for stationery retail business. Besides, the Said International Business School adjacent to Oxford Railway Station will soon open and attract more and more students to Oxford.

  1. Benefits and costs to the local community

The business I am going to do would have several benefits and costs to the local community. The benefits would be that I will create more jobs for local people and for suppliers. Besides I will provide a service for local people and I also provide one more choice to Oxford students to get their stationery. On the other hand, if I am doing my business far better than my competitors do that the costs would be the workers working for them may face redundancy and my shop opening may take away some market share from my competitors and other little stores and they will do less business.

  1. Competitors

I identify my competitors as follows: there are two big stationery shops in Oxford town centre. They are Office World and WH Smith and they would be my main competitors.

I will check my competitors’ performance and practice by:

1) reading their annual reports

2) gather competitors’ information from newspaper and trading magazines*

3) visiting their shop and finding out their trading practice

4) recognizing their strengths and weaknesses

* Appendix 1

P.6

Fig 8

From Fig 8, it shows that none of the people asked concern about the design of the products, so again I can mainly focus on price, quality and durability for my products.

Fig 9

Fig 9 shows that most of the people asked would like a stationery shop to close at 6p.m with 53% and at 7p.m with 30%. So I decided that my shop would be closed at 6p.m from Sunday to Wednesday and on Thursday to Saturday my shop would be closed at 7p.m.

P.11

8) Marketing Mix

After identifying my customers and their needs. Now I need to plan on how, when, where and what to be sold to my customers. At this point my market strategy will base on well plan of marketing mix.

        Marketing mix are the factors that controlled by a company that can influence consumers’ buying of its products. The four components of marketing mix are the product, price, promotion and place. They are usually known as the 4Ps.

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        It is important for me to be well decided on the 4Ps for my business, so I can attract my consumers buying my products rather than from my competitors and a well planned and managed 4Ps will bring profitable sales and better profit in business.

        1) Product

  1. Market research

i) Spend a day in competitors’ shops to note that certain items always sell

quickly

   ii) Set questionnaire*, asking customers what they want and usually

consume

b) Selecting product range

I will cover a full range of personal and student stationery but ...

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