Now I will need to look at the location of the business to find who my competitors are. I am going to find my indirect and direct competitors.
Map of Paddington area
This map is to show what place in particular I need to concentrate.
Task5
Market research report
Report
To: Managing direction of phones for u ltd
From: Deizy begum
Date: 4/11/03
Re: market research for phones for u ltd
Terms of reference
My original task is to carry out market research to investigate the potential market for the shop. The two areas of research that I carried out is primary and secondary research. My aims and objectives of carrying out this research are to find out whether there is a demand for the business or not. I also found out the level of competition in the area and the business which is the most competitive. I organised a marketing campaign for the shop also including advertisements and promotions.
Procedure
We used primary research in which we gathered information directly from people within my target market. I did my market research by handing out questionnaires to people in the Paddington area I decided to survey a random sample of 20 people which I thought would give me faster, fair and organised results. My sample group was people I found in the Paddington area mostly I found out that more people lived or worked there and also the age group which should be considered the most is 15-20. 50% of the people I questioned were of this age group. My questionnaire was made within 15 questions which I thought was enough to find out important answers that we needed. This could be only done by taking advantage of people out there. I collected information on competition by walking around the Paddington area and looking at all the mobile phone shops and other selling mobile phones in the area. An alternative method of research which I considered was phone research calling people at random form the telephone directory, and door step knocking on people’s door and asking them questions, sending out questionnaires by post.
Findings
Our target market based upon our market research, are those in the 15-20 age group categories. 50% of the people we interviewed were in this age category, and they had resembling characteristics as ourselves, which would be advantageous when speaking with them in the store. Numerous people also live near the area or work there which is beneficial because there is more chance of them visiting our store.
This graph shows that people at the age of 15-20 carry mobile phones than the other age groups. 50% of the age group falls in this category 15-20.
This graph below shows people who live or work in the Paddington area. The results show that most people live in the Paddington area.
More people in the 15-30 age group categories are considering on buying a new mobile or upgrading their old one or carry a mobile. The maximum amount most people would spend on a mobile is £100-£200. Their total expenditure would be approximately £150-£200 per person, after surveying a random sample of 20 persons.
Principally a very small sample quota of the mass population, if this sample was expanded amongst this group we believe the average total value of expenditure would be larger; this will show great demand locally.
This graph shows the maximum amount people would spend on a mobile phone.
Most people choose £100-£200. This is a good result because of course any customer would want a good mobile and the staff can provide them with a mobile to their satisfaction because most mobiles are available in this price.
This graph below shows the average cost of mobiles without the tariff charges.
This graph shows the amount of people who carry a mobile.
Most people carry a mobile. This is a good sign as we know that people in that area are used to mobiles.
The maximum amount most people would spend on a mobile is £100-£200.
This graph shows the maximum amount people would spend on a mobile phone.
Most people choose £100-£200. This is a good result because of course any customer would want a good mobile and the staff can provide them with a mobile to their satisfaction because most mobiles are available in this price.
There are many competitions in the Paddington area as the area is big. There are many indirect competitions such as Argos, Woolworth. The major form of direct competition comes from the Carphone warehouse, customers were also happy with the service they provided. The other direct competition is between the link and us because they are selling the same product as us.
This is the map of Paddington area
Recommendations
The business can be successful in the Paddington area by competing with other direct competitors. Also because there are many types of shops that sells other stuff, an underground, hotels, hospital, school, homes, many type of transport etc around the area so there must be business and profit.
As much of Different types of mobiles especially Nokia (with internet features and camera) should be sold and also mobile accessories so people could buy every thing they need in one shop.
The pricing strategy that should be used is something like £60-£290 because Carphone warehouse’s price is £70-£300. The price is £10 down in both ways from Carphone warehouse so that phones for u ltd could have a good start this means that customers will come more and if that happens then of course it will be a good ending.
The business deals with the competition by:
- Being in a better location where the shop is bound to be eye catching and where customers are mostly seen. Such as near the Hilton hotel etc.
- Offering lower prices than other shops could be a sign of success. But in consideration that customers only, mostly go to shops which is the least expensive prices would help the business start off and then when the business has achieved its maximum amount of customers it could find the right time to change to normal the price. Customers who usually purchase or visit the shop will be encouraged to come to only phones u ltd as they will of course have found out that this shop sells the least expensive products and they will not go and find out whether the price is low or high.
- Additional features
- Wide range of service
- Additional features e.g. free hand set
- Giving a more friendly service
- Taking complaint and quicker response to it.
Conclusions
My research is reliable because I handed out the 20 questionnaires in random form, the research could be improved by increasing the amount of people and the questionnaires such as doing a survey on 30 or 40 people or more. The business should go ahead with the plan of locating the shop in the local area. The shop must be competitive to other business in order to stay in business.
Sources of information
The sources that I used were:
- Books
- Questionnaire
- Leaflets
- People
- Text book
- Internet
- Mobile phone shops.
Task 8
Final report
To: managing director
Phones for u ltd
From: Deizy begum
Research and creative department
Date: 20/1/04
Re: market research, phones for u ltd
We were asked to carry out research to find out if there is demand for a mobile phone shop in the Paddington area.
We found out that there is a demand for the shop. The graph below shows this.
This graph shows that people at the age of 15-20 have more mobiles phones than the other age groups.
So we recommended that phones for u ltd should consider most importantly those in the 15-20 age group categories as a target group because this age group category was 50% of the people we questioned. We also recommend that phones for u ltd should go ahead with the shop because we found out from our primary research that most people carry mobile which is an advantage as we know our customers are used to going to mobile phone shops and we could be different from other shops by the price etc.
This graph shows the amount of people who said yes or no to the question weather they carry a mobile more people said they carry a mobile.
Marketing campaign
We have developed a marketing mix for the new shop. A marketing mix is ensuring that the four Ps are in the right amounts so that the products appeal to our customers in the chosen market segment. We must ensure the four Ps.
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Product must be different from rivals.
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Price must be low enough to compete with rivals.
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Promotions we will use local news papers and leaflets to achieve this.
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Place we will locate the shop in pared street as this is likely to attract a large number of customers from schools, Paddington basin development, St Marys hospital.
Promotion. We will advertise the shop as follows: local newspaper and leaflets.
Our advert will appeal to our target group which our research showed us is (mention age, gender and socio economic group)
Our advertisements will use various forms of media such as local newspaper and leaflets.
We choose this because it is the least expensive option.
The costs are as follows half a page in the local newspaper is £1500 for 3 weeks. The leaflet will cost £60 because we want 3000 leaflets. £20 per 1000×3. £20×3=£60.local school students will distribute the leaflets and we will pay them £3 per hour.
The advert will be half a page in a local newspaper such as the metro and on leaflets which will be mainly aimed at our target group. They would talk about when the shop will open and also that lower prices and where the shop is located etc.
It will appeal to our target group because the people at 15-20 age categories mainly read the metro. also the leaflets are a better way knowing whether our target group are receiving it whereas TV are radio we don’t know if the people we want and we know will be interested in buying a mobile etc are watching or hearing it.
We also considered advertising by TV, local radio, magazines. We did not use this because they were too expensive and may not reach the target group.
The advertisement is illustrated overleaf.
The advertisement has been checked against ASA/ITC to make sure that the advertisement is legal, honest & truthful. We have to be socially responsible and the advertisement must be consistent with principles of fair competition. the requirements are set out in the ASA’s codes which apply to all the broadcast media.
Price we will use the following pricing strategy £60-£290 this is because Carphone warehouse’s price is £70-£300. The price is £10 down in both ways from Carphone warehouse so that phones for u ltd could have a good start this means that customers will come more and if that happens then of course it will be a good ending.
Place we suggest the shop is located some where in pared street because our research indicated that.
Product we believe that the product range should be different from the rivals.
Future development
Once the initial shop is established we recommend that the shop must stay in competition in the area between other businesses.
We have included a projected product life cycle for the phones for u ltd chain of shops.
The life of product is the period over which it appeals to customers. The sales performance of any product rises from nougat (when the product introduced to the market), reaches a peak and then goes into decline. Most products have limited life cycle. Initially the product may flourish and grow, the market will mature and, finally the product will move towards decline and petrification. At each stage in the product life- cycle there is a close relationship between sales and profits so that, as organisations or brands go into decline, their profitability decreases. The product life –cycle may last for few moths or hundreds of years. To prolong the life-cycle of a brand or a product, an organisation needs to readjust the ingredients of the marketing mix.
We predict that the business will continue in its present form for
Sources of information
List books