Competition
To find out if there is competition, also how much competition there is in the particular area? I need to find out what type of products that there are selling to the customers.
Action plan
Section 2: Researching the Local Market
Valence Bowl Stores
76, Valence Avenue, Dagenham, Essex RM8 1TL
Tel: 020 8590 6980
JD Sports plc
Unit 2 The Mall, Heathway, Dagenham, Essex RM10 8RE
Tel: 020 8595 8300
J.D Sports plc
2, Ripple Rd, Barking, Essex IG11 7NF
Tel: 020 8591 6083
Classification match only: Sports Goods Shops
Ron's
1 Tolworth Parade, East Rd, Chadwell Heath, Romford, Essex RM6 6YU
Tel: 020 8597 8200
Classification match only: Sports Goods Shops
Swot Analysis
COMPETITORS
1. Valence Bowl Stores
2.JD Sports plc
3.Ron's
PRODUCT
Very similar also sells additional products
SIMILARITIES
Few of the same products and do not update products regularly
PRICING
1. Reasonable
2. Poor too high
3. Poor
PROMOTION
1. Reasonable
2. Reasonable
3. Poor
PLACE
1. Outside mall in Dagenham
2. Outside mall in Barking
3. Inside Mall in Dagenham
Through my research I have identified there are some competitors in Barking & Dagenham. One of them is JD Sports, there is also Ron’s and Valence Bowl Stores. Valence Bowl Stores is not too much of a concern to me mainly for the reason that it only has a small collection of customers. They seem to focus more on providing quality products. The thing with Valence Bowl Stores and JD Sports is that some of their items and service are similar to the ones I intend to sell but the positive thing for me is that their prices are very high so I have a greater chance to price my items lower than theirs. This would also give me a chance to establish my sports shop to customers before they start to reduce their prices. Ron’s also sells similar products to the ones I intend to sell. However Ron’s also sells additional items such as trophies and autographed shirts. This could mean that Ron’s is better than my outlet when it comes to product range. However Ron’s prices its products very high too, and do not often do offers. Promotion is bad in Valence Bowl Stores and JD Sports but in Ron’s it is reasonable. Some effort has been made for promotion by Ron’s but in my opinion it could be much better. Another thing I have realised is that these outlets do not get new stock on a regular basis and do not sell latest goods as soon as they can. However all of these outlets are very nearby and sell similar products and service. This means that they are likely to be in perfect competition with my business occasionally.
Having three similar outlets selling similar products in the same area would mean that competition is bound to be high. To overcome this problem I will try to differentiate my products; for example having a variety of colours and designs of a particular product and increasing my product range by selling products ranging from bats to balls.
I have chosen to situate my business in barking central. In order to get a vast share of the market I would like to open a new Sport shop on the ground floor of Vicarage Field. I will set it up in this location because many people come into vicarage field to look at other shops and on the way they could see mine.
The address will be unit 25, Vicarage Field Shopping Centre, Ripple Road, Barking, Essex, IG11 8DQ
There is a direct competition close by, called JD Sports. However they are not inside the actual shopping centre and therefore should not pose too much of a threat.
The shoppers will not have any trouble getting to my store as there is plenty means of transport, and a car park.
The Economy
If there were high unemployment in the local area, this would hugely affect Adams Sports because it would mean that consumers would have less money to spend on luxury goods because they are on benefit. Those people who are unemployed would be worrying about necessity goods instead of luxury, for example, utility bills, mortgages and food. But if they do wish to purchase luxury goods from Adams Sports, it will be in the medium range pricing, affordable enough for consumers to buy.
However, if there were low unemployment in the local area, this would mean that customers would have more money to spend on luxury products. They will have a whole range of choice to choose from, which is called consumer power. If consumers want to purchase sporting goods, the price range would be medium high.
- Recession – this is when there is high unemployment, consumer and government spending is low and this leads to companies going out of business.
- War – If there is a war people become scared and so do not spend much money, it might also mean that imports are banned and so your suppliers may not be able to deliver stock.
- Oil Prices – If oil prices rise then the price of petrol increases, this will lead to a general rise in the price level. If this happens spending decreases and your costs increase.
- Current Inflation – the rate at which the general level of prices is changing over a period of time.
- Interest rates – the rate of interest is the charge for borrowing money for a period time. If interest rates increase it is more expensive to borrow money and so consumer spending decreases, it also makes investment more expensive and so as a business you might find it difficult to raise capital.
Research methods
In order to determine if my business proposal is feasible I need to carry out primary and secondary research. The main reason for undertaking research will be to see if there is any demand for the services of my business. It will also establish what start - up costs will need be incurred, what is the target market, and likely income from sales that can be achieved. The results of the research will then allow me to draw conclusions as to whether the business proposal is feasible.
My research will need to contain a combination of primary and secondary research. I will need to directly survey certain local people face to face as they will provide me with specific data which is required to identify if the business is feasible. Also sources of secondary information are required with regard to any legal requirements, any resources or equipment required and competition.
The main resource of my primary research will be questionnaires. The questions included in my questionnaire will be relevant to local people of Barking & Dagenham as they will be the main customers to the business. By carrying out this questionnaire I am hoping to find out relevant information such as their opinions of the designer wear shop and whether they are suitable to the target market of the business.
I intend to survey 20 people face to face to gather information which will help me to identify if the business is feasible.
Reasons why I used questionnaires
In order, to find out what the local people opinions were about a new sports shop opening, I used a questionnaire to find this out. A questionnaire is a series of a questions asked on paper, which is given out to people to fill. I decided to use questionnaires to help me research my target market, because it’s an easy and quick way to find out research and you also produce a wide range of information in a short time. However, there are some disadvantages of using questionnaires such as, people being untruthful or not wanting to participate in the questionnaire.
Questionnaire Graphs
This bar chart shows the chosen target age group, which are 10-25 year olds. This means that my business will be targeting mainly young adults.
The majority of the people spend £41+ on their sports clothes, which suggests that I should charge my products at a medium range.
This graph supports the idea that, the most popular choices for this question were air conditioning, and music.
This graph shows that the majority of the people buy clothing, which means they are loyal consumers.
Questionnaire Analysis.
From the completed questionnaires, I have found out what I was hoping and it will help me make decisions about my business. I asked twenty people to complete my questionnaire because it’s fair and also to vary the responses according to gender. My questionnaire provided me with the information from the chosen target age group which is 13-25 year olds. This particular age group would be most interested in sporting goods than any other because it mostly appeals to them.
The majority of the local people I asked do buy sportswear in general, which applies a lot to my business because, if consumers do not have any interest in purchasing sports goods, “Adams sports” would not become a successful sports shop. People mainly buy clothes for themselves, which means there would be less refunds and exchanges, unless the product is faulty.
A vast amount of people shop at the popular shopping centre, Gallions Reach, however I will still locate my business in Barking. The reason being is, not only do a lot of customers come to Barking for their consumer purchases, but there is also no sports shops that sell equipments for different types of sports. The most popular public transport people use to commute to their local shops is taking the bus. However, it would be difficult for people who do not live in the local area to get to my shop.
Most consumers spend between £41 and over on their sports clothes. I’ve decided to charge my products £45 and below because it is
A sensible and reasonable price, also it will be affordable for the customers. My final question that I asked in my questionnaire was “What would you like to see in a sports shop?” the three most popular choices were music, magazines and seeing a practise area in the shop. These features would attract the local to shop at “Adams sports”. By including these features, it would make “Adams sports” well known, popular and successful.
The Marketing Campaign
There are many ways, in which a business promotes their product to increase sales, such as producing posters and leaflets, TV advertisements, local radio and a small add in the newspaper. Marketing is everything involved in selling and promoting a product or service. I must consider the following factors:
- Product – the design of the product or service, packaging, after sales service
- Promotion – advertising, publicity and display
- Price – the price of the product or service, discounts and offers
- Place – where the product or service will be sold; shops, mail order and direct selling
Adams Sports provides luxury goods such as trainers, sport bags, clothes wear, wristbands/headbands, watches and footballs. I have decided to use posters to inform consumers about the new sports shop and what makes them so much better than any other sports shop. The cost of the products are charged at a medium range £40 and below because customers will be able to afford it. The premises of Adams Sports will be in Barking.
From conducting a SWOT Analysis, I have understood the strengths and weaknesses by business faces. I can therefore, overcome these issues with the SWOT as mention before. I gathered that there is a wide range of marketing my new shop such as posters, leaflets, TV advertisements, newspapers and local radio. By producing posters to advertise Adams Sports, would be a good idea because it would cost me less money and it’s a strategy, which grabs the audience’s attention.
Costs of different methods of advertising
The cost of different types of advertising varies, according to the different types such as posters, leaflets, TV advertisements and local radio. Here are some examples:
- Post-card in a newsagents’ window - £1 per week
- Small add in a ‘free’ newspaper – 20p per word
- 30 second advert on a local radio from Wednesday to Friday, 4-7 hours - £700
Promotional activities
Promotional activities play a big role in my marketing campaign, as it includes offers such as “buy one get one free”, “spend £10 or more and receive a £5 voucher” and “Half price summer sale”. When Adams Sports opens up, there will be an opening sale to attract customers. Without promotional activities, the products wouldn’t sell quicker.
I am going to choose to do a poster because poster are noticed every where and every day an example of my poster is below
Sponsorship/ Public Relations
My sponsorship helps my business to market itself by collecting money from customers for charity and to help hospitals and children in need.
Adams Sports will also be sponsoring a local football team, with the shops logo on their football shirts.
Marketing Plan – Calendar
U.K Trends – There is an alarming number of obesity in the U.K, which is a cause of concern to the Government and to local individuals. The increase of fast food, take away and unhealthy lifestyles is the reason for the mass increase of obesity. The impact, which “Adams sports” will have, is that if people want to get fit, they can purchase sportswear such as a tracksuit to go jogging or to work out at a gym. If people choose to do sports, they can buy trainers and sporting equipment such as footballs, tennis rackets and basketballs.
Conclusion and recommendation
My marketing could have been improved by organising it in a more detailed table. I also believe that the fact that I only used 1 advertising method would have not been enough I should have used more advertising methods and more direct approach methods. My original research was fairly reliable but to make the research more accurate more people could have been surveyed.
How reliable was your original research and knowledge of the market? & What could you have done to make your research more accurate?
I asked my questionnaire to 20 people this is not representative sample therefore my results are biased. If I was going to do my project again. I would want to ask a large number of people this would take a lot of time which means money. I should have asked more relevant question i.e. “what brand do you prefer”.
Also I could have asked a wider range of people such as the elderly. This would enable me to target a wider audience across barking and Dagenham and promote my business further.
Did you use your research to plan appropriate marketing activities that would enable the new shop to compete and meet its objectives
Yes all my objectives were achieved. To see where the demand for my service is the highest
Also to see how much competition there is in the particular area
Find the right location using the above aims
To find out the quality of service the customers expect.
Last and final to find out the cost of running a marketing campaign.
Recommendations on improving the product range, how and why.
As I am selling all sports equipment and things every sport should have .
A final explanation about why you used the methods you did.
I used all methods.
