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By Eduardo Dominguez
Sincerely yours,
Eduardo Dominguez
BSBMKG506 Task II Market Research Plan
By Eduardo Dominguez
At a glance:
Management
Our review indicates that D.A Garden Supplies is lacking organization. That is, there
are four different trades that your business is targeting without focusing on one or
two in particular.
Your business seems to employ people that may not necessarily be needed at the
times currently employed. This is a consequence of lacking focus on addressing
your business competition and lacking understanding on what they are doing.
The solution is restructure your business management structure so that is focused
on your target market and act accordingly.
Competition
D.A. Garden Supplies is involved in four different businesses. However, there seem
to be two main competitors for two different markets. These are: the coffee shop on
the business strip; and the Bunnings. The solution we offer is to gain a better
understanding of what they are doing right and what your business can (feasibly) do
in order to increase your market share with the competition.
Consumer trends
Given the data provided and from analyzing the consumer patterns from
observation and some surveys, we cannot see an actual trend from going from one
coffee shop to another; however, we will help you understand how to allocate your
hours better in order to improve your market share.
Place
Thanks to the history of your business (and your customer service) your customer
base does not seem to be afflicted by your location; nevertheless, hours can (and
should) be improved.
Pricing
Fortunately, your customer base does not seem to be driven by price in three of
your trades. From our point of view, having Bunnings close to you means there will
be certain items on which your business will not be able to compete simply because
of size they can buy more and gain marginally on volume whereas your business
would spend too much money on stocking inventory that your business cannot
actually afford.
Products & services
It is our understanding that you have a customer base that remains loyal (and
growing). This allows us to infer that your products and services are good enough.
We can help you make them work better for you.
Promotion
The best promotion you have used over the past years has been building rapport,
getting to know your customers, which leads to your customers spreading the word
in other words, the only promotion used so far has been word to mouth.
However, we propose that little advertising might be advantageous.
The Plan
I.
Lacking focus on a given trade; however, if downsizing will not suit your business
(as we believe you might not want to downsize) the next best option is to
understand your competition and trading hours.
This will not require much time on your part; the implementation, should you follow
our advice, may take a few days to a few weeks depending on how quickly you
choose to allocate your resources to your new trading hours given the gained
understanding on your competition for the same (or similar) markets.
II.
The objective
The objective of our market research plan is to provide you with awareness so that
you may be able to increase revenue over the coming months.
III.
Our requirements
In order to provide the soundest advice we will require time and resources to do a
proper research of the market(s) in question. Nevertheless, your case is very clear
and as a result we will be brief and effective.
We will need six to eight weeks of two market researchers working full time
(Monday to Friday) an average of 38 to 40 hours. They will be working on-site, that
is at your location and your competitions location observing, applying surveys, and
testing. Most of the time though will be spent at our offices once they have
gathered enough information that leads them to a conclusion.
IV.
Causal
Research methodology
V.
Documentation
To make our research as effective as possible, we will need your help and for that
we will need for you to provide us the best snapshots of your business. That is,
whatever reports you may use in order to track your business ability to create
revenue and profit over the past three years (to date) will be beneficial; any data of
promotional activity, or changes made to your trade will be beneficial as well.
We will, then, compile all the information provided and analyze it in a timeline. We
will compare your date against the data we may be able to draw (ethically and
legally) from your competitors and draw a conclusion which we will provide to you.
VI.
Implementation
To sum up, we will need six to eight weeks of two full-time researchers working on
your case. Each is paid a rate of $40 AUD per hour.
Week 1
Week 23
Week 48*
Having all the data gathered we will then analyse it and draw
conclusions as to what points out to be the cause for the drop
in your sales. We will build scenarios for you and present them
to you as part of our research . Lastly we will meet with you
and present you our findingd and provide our advice
Keep in mind that we already have a fairly good idea on what needs to be done to
get your business back on track from the following data we have summarized as
follows:
Please note look at the differences we have spotted
Caf
Opportun
ity
Cost
Monday
9am - 6
pm
9hrs
Breakfast
Open
earlier
Train staff
Monday
7am 3pm
8hrs
Monday
7am 5pm
10hrs
Monday
12am 12am
24hrs
Landscaping
Employ better
staff
Hiring a new
person
Sunday
10am 6pm
8hrs
Saturd
ay
Sund
ay
NA
-
NA
-
Saturd
ay
Sund
ay
NA
-
NA
-
Hours
Friday
7am 5pm
10hrs
Sunday
12am 12am
24hrs
Garden Supply
Landscaping
15%
10%
41%
34%
Caf