Price
Price is also a major factor in determining how much sales and profit we make because customers normally look for cheap products so if we sell the products at a cheaper price then it is going to attract customers so eventually we are going to increase sales. So as we are a small business we have to lower our prices to a relatively low price than our competitors to catch customers’ attention and try to persuade them to buy the product. It is important to have low prices as low prices increases sales; this is manly because customers always go for low prices and high quality products. However, we have to make the price reasonable so that we can make some profits, this is important to compete in the market. We have to try to make short term tactics to boost sales such as lowering prices of key products we sell to attract customers. We could use psychological pricing, so we can for example sell products £2.99 instead of £3.00 so this will encourage the customers to think that it is a bargain. However, in the long-run after we have established as a strong business in the market we can increase our prices gradually to increase profits.
Promotion
Promotion is a campaign increase customer awareness of our service. Advertising is main way of promoting our service. There is other several types of ways to promote such as personal selling, public relation or even sponsorship. Comparing with the budget we have advertising through newspapers, leaflets, etc is the ideal way as it is in reach of our budget. A successful advertising campaign increases customer awareness and increase sales/profits. ‘Yathu’s Supermarket’ have to limit our promotional campaign to our budget, so we have to advertise in the cheapest possible way such as leaflets, local newspaper, billboards, etc. ‘Yathu’s Supermarket’ have to improve our public relations so we have to increase how the customers think of us, so we have to do several activities to improve public relations, this is because customer satisfaction and customers’ relationship with our business is one of the major keys to our success in the future. We have to create a brand such as a logo to represent our business. By developing a recognising brand we can help boost sales and profits by encouraging customers to make repeat purchases, so the customers will be loyal.
Place
‘Yathu’s Supermarket’ has decided that setting up our business in Woolwich is the best way for our business and the public and also it is the most cost-effective way. We have to store our stock at our supermarket as it is the cheapest way. However, as we become a larger firm we can find our places to place our stock such as a warehouse. We can also use internet to sell goods to our customers as it is easier for them and we are able to target a wider audience. We have to make the product we sell appealing so the customers will buy it so we have to place the product in a place where it is likely catch the customers’ attention. So where we place the product is essential to how much profit we make and how much sales we make. We can also provide a service such as free delivery if they spend a certain amount in the shop. So for example if they spend more than £10.00 they can get free delivery service, this will attract the attention of customers so this will likely to increase sales and the profit we make. One of the reasons why it might take the attention of customers is that probably not many people offer this sort of service so it is unique, which the customers might prefer.
All these 4p’s (Product, Price, Promotion, Place) are done to help my business stabilise in the market and obviously to try to make more sales and profits.
