Aims of my business
I also hope to expand my business after 5 years of trading. I hope to have at least one more business up and running. What I also need to work on is getting myself a good reputation so that I will attract customers. I also want to increase my market share. Constraints faced One of the constraints that I face is that for my advertising my budget is only 5000 which is not much for the advertising for my new business. I have chosen to advertise using 16 escalator panels for one month at 65 per panel. I have chosen to get 100,000 flyers which cost’s 1790, the back of 2 buses for 4 months at 945 per bus.
All the other competitive businesses are established and have brand loyalty from their customers. The Trade Descriptions Act (1968) prevents me from giving a false of misleading descriptions of my goods and service, which means I can check on what the other local businesses are offering (knowing that what they are offering is truthful) and try to offer better. I also face social costs and benefits, social costs are my private cost + external costs = social costs, social benefits are my private benefits + external benefits = social benefits.
I am also aware that I have to decide on what measures I will take to protect the environment. I will sell drinks in aluminium cans instead of polystyrene or plastic cups because they are not bio-degradable and if burnt release poisonous gasses which harm the environment, also not to use glass bottles because they are dangerous and if shatter can cause a danger to children and to tyres. I will also place litter bins in and outside the shop to prevent litter around the local area, I will also make sure staff collect rubbish as part of their job to help clean up the environment.
Market Research I have enclosed a questionnaire which I used to obtain data about what prospective customers like and dislike, where they are most likely to see adverts. The advantages of displaying my results in a table are that I can give accurate results and figures but tables can sometimes be hard and unattractive to read unlike pie-charts or bar-charts. Using pie or bar-charts which are colourful attract the customer’s attention to the information, but sometimes the information on pie and bar-charts don’t have the accurate information unlike tables.
Methods available for advertising London Bus: The advantage of advertising on a London bus is that it will be seen by a lot of people and the offer for advertising on the back of a bus is really good, for 945 you can advertise on the back of one bus for 4 months which is not expensive for the amount of times your advertisement will be seen. But the disadvantage of this kind of advertising is that my shop is in one place and the bus goes to a variety of places, which is inconvenient. Read also “Waitrose aims and objectives”
Underground: on the underground there area a few advertising possibilities including; a tube panel and escalator panel, all the escalator panels and a platform poster, all of these are great because my business is in a train station and it is a perfect place to have the advertisement for my business but it is expensive to advertise using all of the escalator panels at 8000 pcm. But every other means of advertising on the underground are ideal and within the budget. Television: TV is totally the wrong way to advertise my business because the advert will be shown all over the country and I only have one shop so it won’t be very relevant. Because people would not travel from e. g. Manchester just to come to Victoria and have my pizza.
Television is too expensive as well, to advertise on prime time ITV for 30 seconds is 35,000. This is 6 times over my budget. Radio: Advertising on the radio is not for my business because it is too wide a range of listener’s ant that is the same problem as the television. The radio is not too expensive but I do not want to advertise on it because it is not ideal for my business. National Newspapers and Magazines:Both of these types of media are too wide a range for me because people all over the country will see these media types. Some of the advertising costs in the national papers are a lot but some area affordable.
But in the end I decided not to use these media types for my advertisements. Local Papers: These kinds of papers are almost ideal to advertise in because they are local to where my business is and also they reach the local community but I have chosen not to use local papers because some of the papers cost a lot to advertise in, and because my budget is only 5000 I have limited advertising methods that are available to me.
Flyers: Flyers are ideal for my business because they can be distributed with the minimum amount of effort and reach thousands of people. I chose to buy 100,000 flyers at a cost of 1790. This is a great way of advertising because I get so many flyers for a reasonable price, and because my business is in a train station people will nit hang around to pick up information so if there are leaflets they are easy to take and carry on with there journey with the minimum amount of fuss. So this is ideal Billboards ; Websites: I decided not to use billboards because they are quite frankly too expensive at 20,000 per poster. This is far too much for my 5000 budget. I have chosen not to use websites because I would like my business to be expanded before I start to use advertising methods like websites. Method of advertising chosen