What type of business might be successful in Marlow?
We were set the task of asking the public their views and opinions on the range of businesses, shops and services in Marlow and what they feel the town is missing Methodology I worked in a group of 3 people and we asked 30 people their views on the businesses in Marlow. We put together a questionnaire including whether or not they live in Marlow, their age bracket, views on prices, services, any limitations on services available and what business they think Marlow is missing which will benefit both them and the town.
Using the information they supplied, we then categorised their opinion e.g. one person said Dixons so we adapted it to electronics shop. To make this accurate market research, we went into the town at different times of day and approached different types of people, men, women, children, old people et cetera to see if the peoples opinions change depending on who is in the town at certain times, however the results tended to be the same. Findings As you can see by the graph included, the general opinion of the Marlow public is that the town is most missing a sports shop more appropriate than Turner Sports which specialises in skiing equipment.
The second most popular choice was that Marlow needs a cinema, however, after researching on the internet I found that Marlow once had a cinema however it did not attract enough business and was converted into office blocks. One thing that some of the interviewees requested was that a new business must be an independent one and not a chain store. Customers The best potential customers the new business, if it were a sports shop, would be the youth of Marlow and people in the 20-45 age bracket as they are the ones most likely to be purchasing items from the store.
Product The product the customers of Marlow require are general sports equipment, whether it be clothes, football boots, trainers, balls and so on they are looking for a convenient place to get their equipment and clothes locally rather than travel to Wycombe or Reading, which are the two towns in the region with sports shops. People may find this inconvenient. To attract the customers to this shop the prices should be below the recommended retail price and strive to get a reputation for good customer service.
Also as I mentioned, some people do not want a chain store in Marlow so this shop should be an independent business. Price The price will vary as there will be a wide range of products available, however at the beginning of each season for certain sports ie football and rugby there will be a demand for the likes of boots and shin pads, head guards and gum shields, so a spend like this could result in about i?? 50-100 per customer. During the season there will still be big buys but not as frequent, however that is the time when team merchandise and clothes are purchased. Frequency of purchase
The frequency of purchase for the more expensive items like football boots will not occur often, maybe every six months, however people will always be buying trainers and clothes and these sales will occur 10 times a day. The shop will always have customers however during the months of October and November the trade will slow down, but increase again during the Christmas rush. Promotion To promote the business there would be the company logo on the bags, so when one customer has purchased an item, they will be carrying a bag with the stores name on it, and other people will see this and be inclined to visit the shop.
Also the shop will hold sales in the months of January and July which will also attract people. Location The shop will be situated along the High Street where there are a lot of people and potential customers. Also there is a car park in Pound Lane which is just one road away from the High Street, so parking is not an issue. Competition The competition offered in Marlow itself would be from the nearby Turner Sports, however, this is more of a skiing specialist shop and offers expertise in that area, so during the skiing season that shop will be likely to take the competition there, but the new sports shop specialises in more areas of sport.
As I mentioned, nearby Wycombe and Reading have sports shops but I feel that residents of Marlow will not unnecessarily travel to get certain sporting merchandise when there is a sufficient shop locally. Evaluation I have found that peoples occupations affect their opinions on what they want to see in Marlow, for example a student wants a sports shop as they are young and active and a retired person would like a gardening centre as this is stereotypically a pastime for Senior Citizens. Also people want shops relevant to their occupation, for example the model would like a cosmetics shop.
I think the sports shop business has the strengths necessary to go ahead as there is an obvious market niche in Marlow for a sports shop as 37% of the people interviewed said they want a sports shop in Marlow. The shop would not specialise in just one area of its field, like its competition in Marlow, but in all aspects of sport. Also it is a convenience for the residents who often require sporting goods. I predict that sales per week will reach the i?? 20000-40000 bracket and I predict the profit to be around the i?? 25000-30000 mark. Conclusion
I believe that this business has the potential to go ahead and succeed because, as I mentioned, there is an apparent niche for such a business. Marlow is an area lacking in such businesses and I personally think that Marlow would thrive with a new shop. This would attract people from 10-45 as that is the average age bracket for people who still get involved in sport so will need sporting products. One problem which may arise is Marlow is not traditionally a town where people go to shop, however, it is a town popular with teenagers, and most teenagers do sport, and the shop will be aimed more at the residents anyway.