After analysing my market research, I have concluded that the social grade of the local area is (B) Lower Management, and the average pay is between 25000 and 35000. The majority of the people do shop locally, the main reason being that the local shops cater for their needs. This shows that there would be a place for me in this local area because there aren’t any specialised internet cafes, aimed at social group B. The majority of people surveyed fit into this group, so it makes sense to primarily aim for them, and then the skilled non manual workers.
I must now find out an area that is made up of that group seeing that I have two choices of a local vacant business site. The place where you situate a shop is how you get your products to your customers. When looking for the ideal location, theses factors must be considered: From my research I have found out that the Earl’s Court are meets the criteria as the majority of the inhabitants are in group B. There is also no competition that would effect my business and there is easy access to the area.
Planning restrictions Planning restrictions are used to restrict where a business can build or start up. If the government rejects then it would be against the law for the company to build there. Planning restrictions help to protect beautiful nature from being destroyed. They also stop factories from opening near homes. Planning restrictions also help bring businesses into areas where there is high unemployment. The government would do this by offering incentives of building in a certain area.
From research into local planning restrictions, I have found out that I must get permission for the following: I do not need to worry about the replacement of doors and windows as my business is a non listed building. Social effects of my place Social costs are the costs that the rest of the area must pay because of where a business or factory is situated. There can also be social benefits which means what is gained by the local area from placing a business there. The social costs as a result of where I place my business are: The place that I have chosen has more advantages than disadvantages.
This is because my shop will be right next to a main road which will allow people to see any promotions, and they will be drawn to the area by a Sainsbury’s Local. There is also a bus stop a few metres away from my shop which will make it easy to get to my shop. Another major advantage is that there is a bank nearby that has a cash point meaning it is easy to withdraw cash. There are some disadvantages; primarily that there is no dedicated car park, and that there are parking restrictions. The main parking restrictions are that there is no parking on certain points between 6pm and 8pm Monday-Friday. The planning restrictions in the local area are not very strict so this will help if I want to make changes to my business. There are very few social costs and there are benefits as well. The major benefit of me placing my shop in the chosen place is that this would bring people into the local area to shop which would help other local shops.
How will I price? The price must be right, as people will have to buy large numbers to make profit. The price you charge can depend on what you are trying to do. I am selling pastries, tea, coffee etc as well as providing an internet service so I will have a low prices in order to attract a lot of customers and to see if my business will succeed. It is different for me as I don’t sell things (apart from pastries, coffee, tea etc) to make a profit, I provide a computer service as my main way of making a profit.
My price will be as low as possible, so that I can attract the largest amount of customers. I will also have some goods such as pastries, coffee, tea etc at are at high prices because they are unique. I am aiming at social group B How to price? This is very important as I must decide how to price the use of the internet and how to price the food and drinks. Hour based pricing will be the most suitable way to charge the use of the computer and the internet. The food and drinks will be charged at high price seeing that the social grade of this local area is group B and most of the local area earn 25000+ so they will be more likely to spend more money.
From my first plan, I know my place, my pricing structure and what group I am targeting. After evaluating my first action plan, I have found that I need to cover areas that I missed in my previous plan. . I will be selling food and drink, so each and every product must have a good strong brand that makes it recognisable to people. A very strong brand is Coke a Cola brand, as the colours, shape of cans, and lettering tell the buyer what the product is. The characteristics of the brand comes from the products physical features of the product. This means the taste and the shape of the product. These are created by the manufacturer through adverts and packaging.