As you can see many of the bigger name companies are able to offer very good deals on music. People were buy one cd and get one free at HMV. This kind of information wouldn’t have been shown in my questionnaire. Virgin were also able to offer a special CD signing by the Manic Street Preachers which is a very good way to promote their products and get people into their shop. Below are the results of question 14: Do you purchase anything else in a music store? (tick all that apply)
From the data supplied in the questionnaire many people have bought in the past at music shops; posters, DVD’s, clothing and single CD’s. I would therefore consider selling some of these products in the future in order to cover a wide range of services for customers. If I were to set-up straight away I would probably decide upon selling posters and single CD’s to begin with, as they are generally cheap purchases with a good return rate. DVD’s and clothing may come in later, and I would conduct further market research to discover how well the sale of products would be and whether or not I could compete against other traders.
The other products weren’t as popular generally because they felt it would be better to purchase specific products such as games and calendars at more specific shops targeted at selling that product. Therefore I would not consider selling them at the current time. Marketing results finishing note and targeting audience:
As you have seen my results from market research clearly show positive ideas and results. Many people felt happy to purchase from a record shop and would prefer to go there rather than purchases from places like Woolworth’s or WHSmith. The results clearly show a clear gap in the market, and if a record shop can be implemented with good low operating costs the business should be able to compete with competition and hold itself against others.
The shop will try to target to people of all ages. It would need to be able to be a shop that plays popular music of a broad range and supply up to date music as well music of past generations. However I feel the shop would need to be able to stand out and be different from shops like WHSmith and Woolworth’s in order to appeal to the minority of groups who don’t shop at these places. These people I discovered would therefore be teenagers and youngsters. They would therefore be my main target audience.
The name of the business would be called SoundPrice. It is name that conveys, “Music is being sold here” and “good prices”. I feel that this name would be suitable for this type of record shop as it sounds appealing to all ages unlike WHSmith or Hitman which are both old fashioned and doesn’t give people details of the type of shop. However, currently a conclusion cannot sufficiently be made yet on whether or not the business would be a success. This is because I would need to look at the many financial aspects of the business. By looking at these I can then forecast whether or not the business can cover costs and survive in the market place. I will look at this in my finance section.
To aid me in my finance section I was able to send a letter to the owner of “Hitman” records in Newport. This small but similar shop to the one Caerphilly has been very successful. In the letter I was able to ask him various questions that involved where he received his stock from and the number of people he employs. I have included the information-received from the owner on the next page. There are many factors that help determine whether or not a business will go boom or bust. One of these factors that determine this is how successful the business will be their finances. In this chapter I will look at various financial aspects that the business I intend on setting up will face.