2: Target Market

Market Research:
In order to do the marketing process efficiently, the information should be collected systematically, objectively, well analysed and evaluated. The market research could be classified in two different ways which are:

• Primary and Secondary research
• Quantitative and Qualitative

Primary research- This is the information that is collected by me in various methods.
Secondary research- This is information will already collected by someone else. Therefore it’s called secondary research because it already exists.
Quantitative method- Information collated in number method.
Qualitative method - Information collected in words.

For my business I will be choosing primary and secondary research. In order to do my primary research well I will be using Survey Monkey to produce a questionnaire to give out to people. In my questionnaire I will have specific questions, which will help me to carry out my research effectively. The method I would prefer when questions are being answered would be in a quantitative method.

E.g.
• How much would you spend on an efficient haircut? -£ 7, -£10, -£15
• What time of the day would you go for a haircut? –morning, -afternoon, -evening
• How many times in a month would you go for a haircut? 0-1, 2-3, 4-5

This will give me an insight of what people will be looking for in my business. I will use secondary research to obtain additional information, such as competitor’s service rates.

Sales forecast
In order to predict sales, statistical methods would be useful to use. This can usually identified through using past figures and trends. Relating this to my business predicted sales revenue will be £140000. High sales revenue with reasonable costs would give me a good amount of profits. This will enhance my business prospects; because I would be able to re- invest the profit earned in the first year into the second year.

Customer behaviour analysis
Customer behaviour and analysis is important to know. By knowing their behaviour would give me an idea what they prefer and their next steps. This will make me realise what I need to improve on and what types of customers I get. There are various types of customers I could be getting, shown underneath in a table format:

Category Group Type
Wealthy Achievers Flourishing families 09- 12
Urban Prosperity Educated Urbanities 15-19
Comfortably off Starting out 24-28
Secure Families 29-31
Settled Suburbia 32-34
Moderate Means Asian Communities 37-38

The table shows that I could be receiving customers from five different categories, six different groups and seventeen different types. This means that there is a big range of customers, therefore I need to provide an excellent service at all times in order to satisfy all my customers.

Competitor analysis
Hairdressing is a competitive field which involves loads of competition. Therefore, it could be really hard for businesses, especially for new start- ups. In order to keep ahead of my rivals there are three things which are vital to know those are:

• Who are my customers
• What are market segments
• Identify my market segments

This would help me to identify my customers and also their needs. Due to this there would be great customer satisfaction from customers. As a result, I would be ahead of my competitors by getting more customers than my rivals.
Strengths and weaknesses
All businesses do carry strengths and weaknesses. Below I will be stating my strengths and weaknesses:

Strengths

• Price- My price is cheaper compare to all my other competitors.
• Potential demand- I know who my target market are, this will enable me to promote my business to the right customers.
• Financial reserves- I have got enough financial support in order to survive.
• Location- I’m at the right spot where I have always got a passing trade.


Weaknesses

• Young- I’m young compare to my rivals, which could be a drawback for me.
• Lack of support- I’m the only workers, so there is a lack in man power.
• Customer awareness- I’m pretty new in the market, so people aren’t that aware about my business.

Market trend
A market trend would be to provide more services than before. E.g. 10 years back just a haircut and a shave was provided. Whereas now customers ask for more, such as message, treading, wax etc.

The economic outlook
PEST could affect me because as the time goes things change. Below some examples have been given how PEST can set an impact on my business.

Political factor- The government may decide to recycle more, come out with legislation, such as blades are illegal to use, a barber is not allowed to have more than 200 customers in a week.
Economical factors- Corporation tax may rise, inflation may increase, wages may cut etc.

Social factors- There may be change in trends, lifestyle, Religious rules and regulations etc.

Technological factors- I need to buy equipment to provide better services and to fulfil needs.

The green agenda
I will need to make sure products I buy to use in my services are environmental friendly, in order not to offend them. E.g. Hair gel which is not tested on animals before it’s launched in the market.