Satisfy the consumers and to make a profit for the firm
Before the business could advertise they had to think about taking out a loan, which can be easily paid back because they did not have enough money of their own. So they took out a short term loan of I year in order to pay less interest, which is the charge of borrowing 3000 from a bank. In addition, the bank offered them a variety of loans such as business starter loans and small firm guarantee scheme. The business spends 600 on radio for 1 minute. 200 for 2000 colour leaflets. 800 for full page (34cms x 9 columns). The total cost for all these medias is 1,600. 500 was saved in bank was saved in bank for future use. The rest of the money that is left is explained later on how it was used. The business have use this media plan to persuade people to come to their restaurant.
The business is also planning to advertise on the Internet in the near future to help the business to build its reputation more because it is very popular nowadays. Also they are going to take out a market research to find what consumers want, why they prefer one thing to another and what makes them buy in order to meet their objectives, which is to maximise their sales and to continuously change update their products in order to build a good reputation. The business thinks this will help them to make more profit and to overcome the competition against their rivals.
The business is planning to do a street interview, which is a primary research and also known as field research. It is quite expensive but it is valuable than secondary research because the data already exists, which can be 3-5 years old. The business spends 700 of the money that was left on this because it employed a specialist local market research organisation that is experienced in questionnaires designing and sampling.
On the next page is a questionnaire they asked to 20 people on the streets. The most important aspect for consumers in a fast restaurant is cost, which means they will have to charge a reasonable price, which is a bit less than their competitors. Also the second aspect for them is good quality food, which is also their objective to continuously change and update their products.
In addition the business will be doing another kind of marketing in the near future called point of sale promotion. They have chosen this method because it is designed to encourage people to buy when they are in the shop and it can be very effective. At the point of sale, the aim is to persuade the customer to take the step from wanting a product or service to actually buying it. The more closely the product matches, the easier this will be. They will going to include: Posters in shop windows and walls.
( Free samples in order to persuade people to buy.( They spend 200 of the money that was left to buy all the materials. So now they still have 500 in the bank. However the business have a problem with its location because its quiet far away from town centre that means it losses some of its customers, which effects the business quiet a lot. Also influences such as government effects the business in many ways such as taxation policy to maintain the town and employment policy to protect employers.
The effect of advertising on the market will help the business promote a product to the public in order to encourage sales. One of the best form of advertising is the product its self. The more money they will spend on designing a persuasive advert for the right audience, the more the consumers will going to buy their products and the business will have a good reputation. The business I am studying is a sole trader, which means it is easy to set up because les capital is required and less paper work. The owner can keep all the profit. On the other hand it has limited sources of finance, unlimited liability e.g. can loose personal assets and the owner has no one to share ideas with.
So I think the best legal organisation for this business could be franchising, this is because business can cover a geographic area more quickly, it will receive continuous loyalty payments and managers get more motivated as they the franchise. To do this business will have to advertise first.
THE COTTAGE CHICKEN FRANCHISE ADVERTISEMENT.
The other issues that also effect the business are the laws such as advertising standard authority (ASA). The advertisements have to be: Legal( Decent( Honest( Truthful( A persuasive selling message, like the one above, is the one that promises a desirable and believable benefit to the people to whom it is addressed. The business also did a secondary research because it’s cheaper, quicker and easier to obtain to research market. They got the information of government statistics (census data) about Enfield. It shows information such as where people live, their age, unemployment, full time earnings etc. but the problem with the data is that its 5 years old and a full census is carried out every 10 years.
A copy of this is shown on the next page. I gathered the information and presented it on graphs. The data is divided into segments according to facts about them as members of the population. This is called segmentation by demographics. There is another market segmentation that they could use, which is psychographics segmentation. In this people are divided according to their life styles, made up of their attitudes, beliefs and habits.
After they done all the research they wanted to know about consumer behaviour, what makes people buy? For this they identify the types of purchases that people make which involve different levels of decision making such as: Routine purchase – these are every day purchases, which do not require much( thought e.g. bread, milk for to use in breakfast. This business comes under limited – decision purchases because it’s a new business.
These purchase are less routine and involve more careful thought, because it’s a new business and has new products, a purchaser will carry out a limited amount of research before deciding whether or not to buy it. Once they are familiar with the product, it may then become a routine purchase. So to the product a routine purchase, when planning their advertising, its important for business to know who has most influence over the buying decision, as well as who actually makes the purchase.