P4 Use Marketing Research
Task 1 (P4 use marketing research for marketing planning) Results -75% want more children’s sandwiches -82% want the shop to be open longer -65% said the staff was unfriendly -50% said the contents of the sandwiches could be fresher -80% said they would prefer more wraps SWOT Analysis Strengths – Because Mr. Khan has carried out the market research on his competitors his can adjust his own store make sure it meets the requirements that the customers need such as making sure his staff are friendly and help when serving customers.
Weaknesses -The weaknesses of Mr.
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Khan’s sandwich shop is that there is already a shop in the area with a minimum of 200 customers which may make it harder for him to start getting customers especially if the store has a large amount of loyal customers. Also if there is one shop there may more which could mean he has set up his business in a bad area. Opportunities To widen the range of sandwiches available in his shop, more children’s sandwiches will bring more customers in with young children also to start making more types of wraps so that there is a larger selection of food available in store bringing more customers through the door therefore increasing sales and profits. – By keeping his store open longer than other stores in the area he can potentially gain more customers from other store and perhaps find new customers who use his store nearer to closing time. -If Mr.
Khan was able to source all of the contents of his sandwiches locally and use that as promotion so that he has the freshest ingredients because it can bring more customers. Threats – Any new shops that are opening can be a potential threat and steal customers from his store because they may give better service, products or their prices may be lower. – Also if there are any supermarkets around the area that sell sandwiches because they sell them at much lower prices than he can so there is threat of the supermarkets stealing customers Smart Objectives 0% said they would prefer more wraps -To develop a new line of wrap based product to sell in store Perhaps look into other stores to do some market research to see what type’s food sells and whether wraps are selling or not. Then on the research that he has carried out create a new menu of sandwiches that include a selection of wraps, also Mr. Khan could introduce the wrap with a special offer like a meal deal, half price or buy one get free. Mr. Khan could also do a festive menu on the way up to Christmas 82% want the shop to be open longer Keep the store open from 7:00am until 4:00pm for lunch and breakfast also perhaps open it for a two hours in the evening to increase and make a minimum of 60 sales per day Increase the amount of sales he makes in a day by doing a meal deal that would draw more people into his store daily also if he was to keep the store open for longer than he could get more sales in the later hours of the afternoon when didn’t use to be open. Mr. Khan could also open it for a few hours in the evening to see if he could get any sales then. 5% said the staff was unfriendly -Gain 30 regulars that use the store 3-5 times week in the first two months By employing more friendly staff that interact with customers so his store becomes a more friendly place with better atmosphere, this may mean that customer could his shop more often and regularly in their work place so that Mr. Khan knows he has got at least 30 guarantied sales every day. 50% said the contents of the sandwiches could be fresher -Source all ingredients that are used in sandwiches locally e. g. local farms and butchers. By Mr.
Khan sourcing all of the contents of his sandwiches and ingredients locally from local farms, grocers and butchers also perhaps use organic fruit and vegetables. Then promoting in his store and on the menu that he uses fresh, locally sourced ingredients in his food may bring in more customers. 75% want more children’s sandwiches -Open new line of child based sandwich products and meal deal that contain a drink a toy also a wider variety sandwiches. By starting to make a children’s menu with a range of products from sandwiches to drinks and toys.
This will bring more people with children into his sandwich store and mean that the parents will stay longer and spent more money in his shop because their children are happy and entertained with the meal they have. PESTEL Analysis Political -Political factors are Laws passed by the government that affect the business and to what degree. These political factors include areas such as tax policy, labor law, environmental law, trade restrictions, tariffs, and political stability.
Political factors can also include goods and services which the government wants to provide or be provided and those that the government doesn’t want to be provided such as tobacco and cigarettes which the governments allow to be sold sell but puts heavy tax on. The smoking ban had a big effect on all business when it was put in place however it was a positive for shops and business like Mr. Khans sandwich shop because it prevents smokers from smoking in business and public places which allowed more people and a wider range to use the business such mothers and children to use his store that wouldn’t have used it before because of the smokers.
Economical -Economic factors include economic growth, interest rates, exchange rates and the inflation rate which affect business in the way of stock prices, rent and taxation these factors have major impacts on how businesses operate and make decisions. For example, interest rates affect a company like Mr. Khan’s profits, revenue and debts because his business loans will become more expensive affecting how much his company makes and what it worth. This can affect how much his sandwich grows and expands, possible new store he could open and how quick it does so.
Exchange rates affect the costs of exporting goods and the supply and price of imported goods in an economy this affects Mr. Khan Business because it could import some of the ingredients used in his product and the exchange rates can differ and tax on importing and exporting goods can increase. Inflation affects all business because it affects prices of goods and services and taxes on business like Mr. Khan’s sandwich shop because the prices of his ingredients can increase, the tax on his business may increase and the rent for the premise of his business especially with inflation increasing.
Social Social factors include the cultural aspects that affect businesses which can include population growth rate, age, career attitudes and different cultures. Age is has a big affect such as if Mr. Khan started to make his business more child friendly and offer coloring and play areas for children. Making the inside of his store more comfortable by using sofa seating instead of plastic chairs. Technological Technological factors include the ways in which technology has changed the way business operate and the rate of technological change.
Examples of this would be business offering free Wi-Fi when you use the business this is something that Mr. Khan’s sandwich shop could think about offering to the customer because it can increase the range of customer that use it such students and business men that buy the lunch and use the Wi-Fi on their laptop to do work. Another technological factor would be for Mr. Khan to start using chip pin allowing his customers to pay with card because their lots of potential customer that may not have cash with them but have a card so don’t use his sandwich shop.
Any more advance technology that he could use in his business such as new fridges, cooking and the equipment he uses to make the sandwiches which could all potentially increase the quality of his products. Environmental These are factors which can relate to the social, political and legal aspects affecting a business. Some examples of this would be Mr. Khan adapting a new outlook to how his business gives back to the environment, by the packaging he uses to wrap his sandwiches in perhaps using bio degradable packaging.
Reducing the amount of packaging he uses so that he has less waste. Another thing Mr. Khan could consider is reducing the amount of waste his business generates overall; by reducing it he would not only save money himself on the waste packaging that is not used and it would reduce cost of rubbish removal because he will then have less non recyclable waste. These moves would also improve the image of his business in that it will become more environmentally friendly. Legal
Legal issues involve the development that goes on within the business it includes various laws such as discrimination law, consumer law, antitrust law, employment law, and health and safety law. These factors can affect how a company operates, its costs, and the demand for its products. Because Mr. Khan’s business is relatively new and a lot of the current laws have already passed however law such as the smoking ban for example could have affect Mr. Khan’s business because when the law passed it was good news for mothers and children but bad for any smokers that before would have been able to smoke in the cafe.