Market research results
My business will be run by myself, which makes me a sole trader. My business will be a shoe company, in a local area, which will depend on my market research results. My target market will be mostly males aged between 13-30. I have chosen this target market because males in that age group tend to wear the same type of shoes, so it will be easier to get stock. I will be selling good quality, low priced shoes, to show that my business sells high quality at low prices. I have chosen to start my business in a local shop because I can decorate, inside and out, how I like, to attract the attention of passer-by’s.
If I make the outside of my shop appealing, eye catching and attractive the more people will want to come in. In the area I have chosen to put my business, there are a lot of male in my area, which appeals to my business as my target market is young males. I found out about my target market by going to the council, and checking the main age groups, and going around houses and checking the ages of people in the area. My stock will be from local shoe makers and designers from the Leeds area. This will be a lot cheaper than buying straight from big brands such as: Nike, Adidas, Umbro.
Setting my business up near a town is an advantage, because there will be good transport and a lot of parking places for customers to park there vehicles. Setting up my business in a shop will be expensive, because I will need to pay for the starting up costs, such as decorations, furnishing, cleaning etc, I will also have to keep paying running costs as well, such as electricity, lighting, water. Being a sole trader, I will have to make all decisions and pay all costs. I will have to research very deeply to see if my business products will be appropriate for the area I have chosen.
I will be responsible for anything going wrong. I will use both secondary and primary market research and I will carry out questionnaires to find out what people want in my chosen area I will also make myself something to work towards, known as targets, or aims. 1 To survive the first year or two. 2 To break even in the first year of running my business 3 To start making profit after the first year. I have chosen these targets because I will need to survive the first year, to keep my business going. Market Research Market research is gathering information about customers and what they want.
Market research is important because if you do not do any market research, then you will not know what your market wants, this leading to a failure in the business. For market research, you could make a questionnaire, asking questions that you may need to know about what your customers want. If you do not add a question that you may need, this could be fatal, because this may tell you exactly what your customers want Market research involves collecting both secondary information (information from other businesses) and primary information (your own information, you have).
Some of the information that should be collected is information such as: 1 The prices people are willing to pay 2 When is the best times for your business to be open 3 What would be the most effective type of advertisement? I could find this information by: 1 Questionnaires 2 Looking at local shops 3 Doing a local survey Start up costs: Decoration and furnishing I will decorate my premises with a clean, modern look that will appeal to my target market. I will use mostly paint and finish off with pictures and ornamental objects to add colour and decoration. I will then add shelves to display my shoes to my customers.