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Designing a Small Scale Marketing Plan

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Designing a Small Scale Marketing Plan

Terms of Reference

Jack has decided to open a greetings card shop in Hounslow town
centre, however similar businesses already exist within the area, and
in order for him to be successful and attract customers I am going to
design a small scale marketing plan and formal report. Jack is a sole
trader and who is setting up a small business and he should be aware
of the following advantages and disadvantages of being a sole trader.
The advantages are that it is easy to set up, less capital is
required, speedy decisions can be made as few people are involved,
personal attention is given to business affairs, can cater for local
people, profits do not have to be shared and business affairs can be
kept private. The disadvantages are that you have unlimited liability
this means that there is no limit on the amount of debt the business
may run up and you may end up losing personal possessions. Another
disadvantage is the difficulty to raise finance, small scale limits
discounts, prices are higher than bigger organisations and you will
get less holidays as it may affect the running of the business.

Market research

To research similar businesses and produce a marketing plan for Jack I
will need to conduct both types of market research, desk and field. To
research similar businesses I will need to do some desk research by
looking at their websites and shops, such as Jack's major competitor
Clintons. This will tell me how they run and will give Jack tips on
how to run and let him know what he's competing against. To inform
Jack about his target market's behaviour and shopping patterns I am
going to conduct a field research in the form of a questionnaire, I am
going to ask 20 people in Hounslow high street questions about their
shopping patterns, what they like e.t.c. I will analyse the market
research and make suggestions to Jack about setting up his business
using this. I will look at Jack competitors marketing strategies and
see how well they work and see how Jack can be just as, or more
successful than them and gain a share in the market.

Marketing Mix

The crucial factor in creating a successful business is the marketing
mix. I am going to investigate the marketing mix theory and what
marketing mix Jack's competitors have concocted and how successful it
is. I will refer to my market research as the major indicator in what
decisions to make for each part of the marketing mix because each part
depends on the customers view. Again I will use the market research to
decide on my target market because it will tell me about the market I
am setting up in. I will also create a name for Jack's business by
conducting some market research on initial ideas I have thought of. I
will also design the interior and exterior of the shop by looking at
similar businesses designs and looking for customer convenience and
safety and also design ideas that will help boost sales.

Product life Cycle

Once Jack's shop has been launched he will have to consider ways of
increasing growth and delaying maturity. When his business does
eventually reach maturity he will have to decide on extension
strategies. I will investigate the product life cycle and ways in
which to prolong it such as re-launching. I will also investigate how
rival businesses have done this.

I will also investigate the Boston Matrix theory and how it will help
in making decisions about extension strategies. From investigating
these things I will suggest ways in which Jack can prolong his shop's
product life cycle. I will also have to decide on what pricing
strategies Jack will use, I will decide this by referring to the
market research and looking at what price customers prefer and I will
also look at what kind of pricing strategies Jack's competitors are
using and will look to see if they are successful and make decisions
about Jack's shop by looking at their strategies.

Promotion Techniques

To decide what promotion techniques Jack will use I will look at other
businesses promotional techniques such as TV adverts and billboard
adverts e.t.c. Because Jack is operating in a single area I will see
what options are available to him. I will also look at my market
research to see which type of advertising people like best and see if
Jack could use this advertising to promote his business. I will look
at other businesses advert designs and design my own to suit Jack's

Channels Of distribution

To obtain and sell goods Jack will have to decide which channel of
distribution to use, I will look at which types of channels of
distribution there are and which type will suit Jack's shop the best.
I will decide this by looking at factors like cost, space and time to
decide which channel to use.

Action Plan


'Marketing is the anticipation and identification of consumer wants
and needs in order to meet these needs, and to make a profit.'
(Business studies for you)

Marketing is more than just selling or advertising. It is the art of
making it as easy as possible to get a customer to buy your product.

The four P's in marketing

These are essential in finding out the idea of marketing. If a company
gets them right then they will easily sell their product.

The four P's of marketing





1. The firm must make a product that people will want to buy. It
should fulfil their needs and wants.

2. The price must be one that the customer thinks is value for money.

3. The product must be promoted so people are aware of it.

4. The product must be sold in a place where customers will find it

Markets are segmented into different groups of people. There are four
main ways of dividing people into different market segments.

1. Age-for example the teenage market.

2. Social class-professionals down to the unemployed.

3. Location-selling a product specifically for an area.

4. Culture or religion-different groups have their own products
(curry, noodles).

Market research

Market Information


What is

the target


Market research is collecting data and gathering information and
analysing and studying it to find out about the market you are may be
launching your product in. The company needs market research to study
the economic trends and customer views in the market. To find out what
a customer wants companies need to do market research in a number of
ways and ask such questions as shown below. [IMAGE]

('Business studies for you', Stanley thornes)

There are two types of market research-field research and desk
research, a firm can employ either its own marketing department, or an
outside specialist organisation.

What is field research?

Field research is doing your own work and data collection. It is also
called primary research or original research. It is useful because it
gives you up to date information on the market and tells you about
customers views only in the market you are studying. There are several
field research methods which are used by businesses. Each method
involves using one or more of the following:

1. Questionnaires

These are lists of questions designed specifically for a task.
Questionnaires can be completed by holding an interview. This can take
place either face to face, over the telephone or through the post.

I will conduct a questionnaire in Hounslow for Jack; this will tell
him about his target market and how to successfully gain a good share
of the market place by serving the customers what they want.

2. Test marketing

This is when a product is marketed to just a small part of the total
market to see if it is suitable for a wider release.

3. Consumer panels

This is where a selected group of people are given, or test a product
and ask to give their views on it.

Advantages of field research

The advantages of field research are that it is up to date and
specific to your product. The disadvantages are that is expensive to
collect and time consuming and it needs a large sample size to be

What is desk research?

Desk research is also called secondary research or published research.
It is useful at looking at the whole market and looking at the past
trends to predict the future. It involves looking at research by
Mintel and magazine and newspaper articles and government statistics.
A company can study its own sales figures for trends or analyse
requests from customer requests for new models or lines. A company can
examine its competitors and their success to tell them which popular
and unpopular points their competitors have, and develop their own
improved products at a competitive price and gain the competitive edge
over their rivals. This is the reason why desk research should be the
first type of research done by a company because it will give the
company a rough idea of what to do to be successful.

I conducted some desk research for Jack by using the internet to tell
him how his competitors run their business and how their services are
welcomed by the end consumer. I looked at the success of competitors
operating in the target market and where their major assets lay. The
major competitors for Jack are Clintons, WHSmiths, Birthdays and Card
fair. According to my field research these are the most popular shops
and I will be doing some desk research on them to help Jack gain a
market share from these companies.

Advantages of desk research

Advantages are that it is cheaper than field research and quick and
easy to find. The disadvantages are that it may not be relevant to
your product and it is often out of date.

Desk research

To obtain these desk research results I searched the internet and the
websites I used are listed in my webliography. However I could only
obtain the assets for Clinton's cards as WHsmith, Birthdays and Card
fair refused to give out information about their market share. These
are the results I obtained from my desk research:

* Around 2.7 billion cards are bought in the UK per year

* The greeting card market is worth approximately £1.2 billion

* Clinton's hold 17% of the greeting card market. 60% of their
assets are in Birthday/anniversary/get well cards. 30% of their
assets are in Christmas cards and 10% of their assets are in
valentine/mother's/father's day cards and eater cards.

I was unable to find out who held the other 83% of the market, but
according to my field research it was likely to Birthdays, WHSmith and
Card Fair.

Card type



Card Fair












Get well















Father's day





Mother's day









The table above shows what type of cards each of Jack competitors
stock as you can see from the table they stock all the major cards.
However Card Fair does not stock any consolation cards, this is quite
unusual and Jack could pick up on this business opportunity by
stocking consolation cards and taking some of Card Fair's market share
by providing something his competitor does not have thus gaining a
competitive edge over them.

The results of the questionnaire showed that Clinton's was the most
popular card shop and by looking at the desk research which tells us
that Clintons only holds 17% of the greeting card market. This means
that if Clinton's is the most popular shop and only holds 17% of the
market, Jack's other competitors must hold less than this, therefore
Jack will be able to easily gain some market share if it is
distributed in such small amounts. By selling consolation cards, he
may be able to steal some market share from Card Fair because they
don't sell them and by using this gap in the market he can also make


This is Clinton's website, it informs customers about what is in the
shop, the upcoming celebrations, jobs, offers and you can also buy
online. It has different categories to search in and is very
attractive and inviting.

Jack should also advertise on the internet through other websites or
create his own website, as this will inform customers about his
business and attract them to his shop.


1. Sex

Male â–¡ Female â–¡

2. Age range

10-16 â–¡ 17-25 â–¡ 30-35 â–¡ 36-45 â–¡ 46-50 â–¡ 50+ â–¡

3. Where do you usually buy your cards?

Clintons â–¡ Birthdays â–¡ WH smiths â–¡ Hallmark â–¡ Woolworths â–¡ Other â–¡

4. What type of card do you most often purchase?

Birthday â–¡ Thank you â–¡ Anniversary â–¡ Good luck â–¡ Christmas â–¡ Wedding â–¡
Other â–¡...................

5. Approximately how many cards do you buy a year?

1-5 â–¡ 6-10 â–¡ 11-15 â–¡ 16+ â–¡

6. How much do you usually spend on a card?

£0.10-£0.50 □ £0.51-£0.99 □ £1.00-£1.49 £1.50-£1.99 □ £2.00-£2.49 □
£2.50+ □

7. What other items do you purchase from your current card shop?

Wrapping paper â–¡ Posters â–¡ Mugs â–¡ Key rings â–¡ Toys â–¡

8. What would attract you most to a card shop?

Customer service â–¡ Price â–¡ Quality of products â–¡ Appearance of shop â–¡
Range of products and facilities □ Other □………………

9. Which radio station do you most often listen to?

Kiss FM □ Capital FM □ Radio 1 □ Radio 5 live □ Magic □ Other □…………

10. Which newspaper do you most often read?

The Sun â–¡ Evening Standard â–¡ The Times â–¡ Daily Telegraph â–¡ Other

11. Which websites or search engines do you most often visit?

Yahoo □ Google □ MSN □ Ask Jeeves □ Other □………..

Questionnaire Results


The chart shows that people mostly buy their cards from Clinton's.
This may be because Clinton's has better quality products and services
so customers prefer it over the other stores. However this may not be
the only reason why people bought their cards from there. Another
major factor is the location; Clinton's has two branches in the high
street alone, one in the centre of the high and another in treaty
centre in the high street. So people are never far from one so it will
be convenient for them to purchase a card from their while doing their
other shopping. Another reason may be that Clinton's caters for both
ends of the market, upmarket and down market by selling cards at
different prices.


The bar graph shows that the majority of people I asked were quite
young in the age range of 10-25.Their may be quite a few reasons for
this, I conducted my questionnaire at lunch time so a lot of teenagers
would have been in the high street because they tend to wake up late
and then go out shopping after 10 o'clock while the majority of middle
aged people go shopping before lunch to miss the rush, also it was on
the weekend so their would be a lot of school children in the area.
There were very little elderly people, this may be because they do not
like the weekend rush and decide to shop on week days instead.




The chart shows that I interviewed two more males than females. This
is quite unusual as I did the questionnaire on Saturday and females
tend to go shopping more than men. This may be explained as I
conducted the survey at 12 o'clock and the majority of the female
shoppers may have already done their shopping or they may be more
males in Hounslow than females.


The pie chart shows that the majority of people buy 11 to 15 cards a
year. This is a very low amount considering people buy birthday,
Christmas, anniversary, thank you, get well cards etc. The main reason
for this may be because I asked a lot of younger people and they may
not be earning their own income so may find it hard to buy lots of
cards for all these occasions. Another reason for the low number may
be that the people I asked may not celebrate Christmas, Easter,
Valentine's etc and may celebrate other events and cards for these
occasions may not be available in Hounslow (another gap in the market
for Jack to pick up on).


The bar graph shows that birthday cards are most often purchased; this
is because it is the most frequent celebration and is celebrated by
many people of different cultures and backgrounds. This is proved by
my desk research which showed that 60% of Clinton cards assets are in
birthday cards. The second most frequent purchase was anniversary
cards, this was quite unusual as the majority of people I asked were
quite young and middle aged and older people tend to buy anniversary
cads however the younger people may buy the cards for their parents
and relations.

As you can see from the chart, people usually bought cards within the
£1.00-£1.99 range. The price is a crucial piece of marketing and
customers prefer lower prices but also appreciate good quality. The
price that customers prefer is in the middle market and this is the
target market that Jack should aim to please. According to some desk
research I conducted, people in Hounslow have quite high earnings this
may be the reason why quite a few people are willing to pay
£2.00-£3.00 for a card.


This pie chart shows, apart from cards people mostly purchase wrapping
paper and posters. This is because they are items that can usually
only be purchased in a card shop and wrapping paper is used for gifts
which people usually buy before their cards, so it is a matter of
convenience. Posters are popular with young people and because I
interviewed a lot of young people, posters were the second highest in
the graph.



The graph shows that customers were attracted most to a card shop by
the price and the quality of the products. The earlier question told
us that people preferred cards in a price range of £1-£2, which is a
middle market price and this graph shows that quality is the second
most important; therefore it is crucial for Jack to make a good
compromise of quality and price to pull customers and get a share in
the market. The people I interviewed were mostly teenagers who do not
work or have a low income so they will look for cheap prices so they
can buy cards for their friends at an affordable price, so price would
be a major factor for them.

The pie chart shows that the most popular radio stations are Kiss FM
and Capital FM. This may be because I interviewed many young people
and they listen to popular chart songs which are played on these radio
stations. Another reason is that these stations are only for London
and so these stations are well known. So Jack should aim to advertise
his business on these radio stations in order to attract lots of


This shows that Google and Yahoo are the most popular search engines;
this is because they are the world's largest and fastest search
engines covering a vast network of websites over the world. Jack could
advertise on websites connected to these search engines because they
would be looked at by many people and an excellent way to inform
people about Jack's business.


Marketing Mix

To market their product a firm needs to use four things to be
successful together these four things are called the marketing mix.
These ingredients are called the four Ps (see 'Marketing page'),
Product, Price, Promotion and Place.

* The product has to have the right features for it to work well.

* The price must be right. Consumers will need to buy in large
numbers to produce a good profit.

* The goods must be in the right place at the right time. Making
sure that the goods arrive when and where is an important

* The market needs to be aware of the new product through promotion.

The marketing mix varies in different markets so to make the product
most successful the four Ps can be altered in amount to suit the
market. Financial constraints will influence the marketing activity.


The product is the most important part of the marketing mix, in order
for the product to sell it must meet a customer's need. Before
launching a new product you must make sure that it has the right
benefits that the consumers require.

Product benefits

Benefits are the advantages that the buyers get from the good or
service they buy. The benefits offered by a product or service can

* Convenience and accessibility

* Good after-sales technical support and advice

* Reliability

* Comfort and ease of use

* Accountability-the assurance that if something goes wrong the
manufacturer will put them right.

* Courtesy and helpfulness of staff

* Attractive, appropriate and efficient design and packaging

* Peace of mind-the knowledge that you can trust the company and the
goods you have purchased will not let you down.

The more benefits you can provide to a customer the more likely you
are able to sell your product and get a 'good price' for it.
Competition is all about creating more benefits than rival products.

It is essential for Jack that he sells the products that have many
benefits to the customer; these benefits will help him sell his
product. His products must have the right features to attract
customers. According to the market research price and quality would
attract most people to a card shop so Jack could sell products of good
quality; his shop could also stock things apart from cards to give
customers the benefit of convenience, according to the market research
the most popular things that people bought in a card shop apart from
cards were wrapping paper and posters. The market research showed that
birthday, anniversary and thank you cards were bought most often so he
should stock many of these cards to give the customer the benefit of
convenience and reliability.


Charging the right is a very important part of the marketing mix. In
setting a price for your product you will almost certainly want to
cover your costs and make a profit as well.

The pricing decision

The actual price that a business charges for its products will depend
on whether they are trying to win a massive share of the market, or
whether they want consumers to buy their product because it is
different and better than rival products. The main pricing decision
for a firm, therefore, is whether to charge:

* A low price in order to attract sales. This makes it possible to
sell large quantities at a low average cost.

* An average price. If you charge an average price, you will need to
compete with your rivals by other means, e.g. by having a better
quality product or better promotion or advertising, e.t.c.

* A higher price. Firms can charge a high or premium price if they
are seen as being better than their rivals in meeting the needs of
s chosen group of customers.

Jack will have to make a pricing decision whether to sell the majority
of cards in his shop at a low, average or high price. The market
research shows that people usually buy cards at a price of £1 to £2,
so jack should aim to price most of his goods at this price or a
little less to attract the most amounts of customers. He could also
sell some card at a high price to suit the higher end of the market.
Therefore Jack should charge an average price on most of his goods and
look to improve quality and service to compete with his rivals and
give him the competitive edge over them.


In marketing terms, the place is where the final exchange occurs
between the seller and the customer. An important marketing decision
is where this exchange takes place and how. For example, at one time,
all bank services were provided 'across the counter', but in recent
years banks have moved to cashpoints and telephone banking.

Jack has decided to open up his shop in the town centre, similar
businesses already exist in the area, in order for him to be
successful he should also look towards selling over the phone and
online shopping to increase sales.

Target market

When choosing his target market Jack must look at different factors
such as age, sex socio-economic and geographical. In the questionnaire
the majority of people interviewed were young so the rest of the field
research applies to them, therefore Jack should try to appeal to these
people however should not only limit his marketing strategies to this
level only, because to maximise sales he will really need to appeal to
all age ranges because cards are not necessarily specified to a
certain age range and people of all age ranges buy them.

Jack should decide what socio-economic to target according to the
market research, according to desk research conducted the majority of
people in Hounslow earn high incomes and the field research told us
that people preferred cards within a range of £1 to £2, this is a
mid-market price therefore by looking at the desk and field research
Jack should sell the majority of products at a mid market price but
also sell quite a few upmarket products of very good quality because
people who have high incomes will be able to afford them.

The geographical location for Jack's business will obviously be
situated in Hounslow High Street however whereabouts is important
because you will need a good location in the high street to attract
lots of customers. It would be advisable to be situated in the centre
of the high street or in the treaty centre as these are the busiest
places in the street and Jack's other competitors are situated here
such as Clinton's and WHSmith.

Shop Design

Name of shop

The name of the shop is an important part of the shop's image and must
be catchy and attractive to make it memorable. I have thought of
several names for the shop, and I conducted some field research to
find out which one the customers would most prefer.

These are the names that I thought of:

* Jack's cards

* Jack in the box

* Greetings

* Jack's shack

* Occasions

* Card shack

These names were put into the questionnaire below and 20 people were

Which one of these names would best suit a card shop?

1) Jack's cards â–¡ 2) Jack in the box â–¡ 3) Greetings â–¡

4) Jack's shack â–¡ 5) Occasions â–¡ 6) Card Shack â–¡

The results were as follows:


I have decided to name the shop 'Card Shack' as it was the name which
was most preferred from the survey and when asked to comment about the
why they chose it, the people I asked said it was 'catchy', which is
exactly what I was aiming for.

Front of shop

For the front of the shop I needed something attractive and
eye-catching. For the shop sign I used orange lettering for the name
and a blue background. This made the sign stand out and this will
attract customers. Next to the sign I drew the logo so people would be
able to recognise the shop by the logo if they saw it anywhere else.
Next to the logo, there will be the address, telephone number and
email so that people will know how to contact the business for
information. Posters are stuck on the door, these posters will be
about special offers inside the shop, and this will attract customers
to come into the shop. In the left shop window I have put items for
sale that are related to the season or celebrations for e.g. in the
design I have put on display Halloween items. This will attract
customers that are celebrating that event or festivity to the shop,
therefore attracting different cultures to the shop for e.g
Christmas-Christians, Diwali-Hindus, Eid- Muslims e.t.c. On the right
side I have placed some of the products that are on sale inside the
shop, this will tell customers what is on sale inside the shop and
invite them to go in.

Interior of the shop


This is the layout of Jack's shop; I created it so that it is very
convenient and accessible for the customers. I located the tills near
to the door so that after customers but their goods they can quickly
get to the door, also for security reasons, because thieves can be
spotted easily from the front of the shop. The blue shelves are the
new and trendy products that have just come out onto the market, these
are high quality goods, so because they are in demand they should be
at the front of the store clearly visible and easy to access, and
these products are usually expensive, so to make larger profits Jack
should try and sell lots of these, so it is a good idea to put them at
the front of the store. The red shelves are the old and classic cards
that never die out, such as birthday cards and wedding cards e.t.c.

because these cards are quite old their prices are low but their
demand is still quite high so that is why I have given them quite a
lot of shelf space, because they will never die out I have put them at
the back of the store to make way for high demand but low-life span
cards. According to my market research, apart from cards people
usually buy wrapping paper and posters, these items are located in the
yellow shelf, and they are close to the door for convenience. Other
items that people purchase are novelty and toy items, these items are
situated in the purple shelves in the far left corner. Another corner
is given to ornamental items like statues and carved models; this will
also give the shop a slightly upmarket feel as not many of the
competitors have these items in store. They are situated in the far
right corner of the shop because they are not in high demand, yet are
still popular as gifts. This layout and convenience will be
appreciated by customer and Jack will be rewarded by their loyalty if
he keeps up good customer service standards and ultimately make more

Product Life cycle

The life of a product is the period over which it appeals to
customers. All the products go through the same life cycles, they are
launched, and sales grow and reach maturity. Saturation is when there
is no more room to expand, sales are at their peak. We can all think
of goods that everyone wanted at one time but which have now gone out
of fashion.


The classic product life cycle

Sales performance and profitability

The sales performance of any product rises when the product is
introduced into the market, reaches a peak and then goes into decline.
Most products have a limited life cycle. Initially the product may
flourish and grow, but eventually the market will mature and the
product will move towards decline and finally become obsolete.

At each stage in the product life-cycle, there is a close relationship
between sales and profits, so that as organisations or brands go into
decline, their profitability decreases. It is possible to update and
relaunch the products when sales decline. This is called an extension

For Jack to boost sales if they start to decline he will have to think
about extension strategies which I have discussed on the following
page in order to sustain profitability


Injecting life into the product life cycle

The product life-cycle may last for a few months or for hundreds of
years. To prolong the life cycle of a product, an organisation may
inject new life into the growth period of the product by adjusting the
ingredients of its marketing mix.


Ways of altering the marketing mix to inject new life into a product
might include:

1) Changing or modifying the product.

2) Altering distribution patterns.

3) Changing prices to become more competitive.

4) Promotional campaigns.

Due to the type of shop Jack is opening it is presumed his shop will
have a long product life cycle because cards are popular items which
are bought all year round like birthday cards. However cards such as
Christmas cards will obviously only be popular at Christmas and after
that the sales will rapidly decrease, but this can be foreseen and
Jack can tackle this maybe by using this planned obsolescence to his
advantage. To prolong the life-cycle of Jack's shop he should inject
new life into the growth period of his shop. He could do this by
changing or modifying the products in the shop by adding value to keep
ahead of the competition, for e.g. by lowering prices or doing special
deals like buy one get one free, buy this and get this half price
e.t.c. He could do promotional campaigns such as advertising and
special offers to renew interest in his shop.

When the shop reaches maturity Jack could alter distributing patterns
to create more attractive retail outlets for consumers, for e.g. he
could introduce a mail order catalogue so shoppers can order goods by
mail from home. He could relaunch his shop by giving it a new look to
attract customers, this was done by WHSmith one of Jack's competitors.
At the start of the millennium WHSmith totally changed the logo and
look of their shops to suit the new era, this was very successful and
other shops are continuing to do this like Marks and Spencers . Along
with the relaunch he could use product differentiation; he could
identify what is different about his shop compared to the competition
that makes people want to shop there. This might be that his shop has
a unique feature( such as a 'design your own card' facility') or a
good reputation for quality or a cool brand image. This will be quite
important because if Jack does not have product differentiation people
will think his business is identical to his competitors and he will
not be able to increase his market share and maximise sales.

He could open up more stores in the same area just like his major
competitor Clinton's or open up stores around the city because his
product is now well known. He could even start a franchise like
McDonalds . He could also expand his business through diversification
for e.g. he could start making a product range of his own according to
what his customers want and also adding value to his exclusive
products to attract customers (WHSmith and Clinton's also have their
own product range), or integrate with his supplier to increase
efficiency and profit.

Boston Matrix

The Boston Matrix is a well known tool for the marketing manager. It
was developed by the large US consulting group and is an approach to
product planning. It has two controlling aspects namely relative
market share (meaning relative to your competition) and market growth.

You would look at individual products in range and place it onto the
matrix. You would do this for every product in the range. You can then
plot the products of your rivals to give relative market share.

[IMAGE] This is simplistic in many ways and the matrix has some
understandable limitations.


These are products with a low share of a low growth market. They don't
generate cash for the company, they tend to absorb it. Get rid of
these products.

Cash Cows

These are products with a high share of a slow growth market. Cash
cows generate more than is invested in them.

Problem children

These are products with a low share of a high growth market. They
consume resources and generate little in return. They absorb most
money as you attempt to increase market share.


These are products that are in high growth markets with a relatively
high share of that market. Stars tend to generate high amounts of
income. Businesses should keep and build their stars.

As Jack's business grows he should find out which of his products are
dogs, problem children, cash cows and stars. We can predict which
products will be the cash cows and stars and which products will be
the problem children and dogs by looking at the market research. It
tells us that people mostly bought wrapping paper and posters apart
from cards in a card shop, therefore these products if marketed well,
could become cash cows and stars. People interviewed also said that
they bought less toys and key rings therefore if not marketed well
these products could become problem children. He should then try to
find a balance within the product range. He should try not to have any
dogs. Cash cows, problem children and stars need to be kept in a kind
of equilibrium. The funds generated by his Cash cows should used to
turn problem children into stars which may eventually become cash
cows. The Boston matrix helps Jack by telling him what products to
sell and by the time his business matures most of the products he
sells should be cash cows or stars.

To decide what pricing strategies Jack will use he must look at
various things such as the market research, the type of consumer that
shops in the area and his competitors. Because there are many
competitors in Jack's target market it would be advisory for him to
use the 'penetration' method, this involves setting a low price to
guarantee entry into the market, it is used to prevent the failure of
the product due to the competition out-selling the new product.
According to the market research the majority of the people in the
area usually pay £1.00-£1.49 for a card, therefore the prices of most
of the cards in the shop should be £1.00-£1.49. Desk research was
conducted to find out the average earnings of the people in the area,
the results showed that the people in the area are quite high earners,
therefore it would be suitable to be an upmarket business, however the
market research shows that the price of the cards shoppers will prefer
is middle market, so Jacks shop should be a middle market business.
The competitors in the area were Clintons, WHsmith and Birthdays, all
of theses shops are mid-market/upmarket shops. They are the
competitors which Jack will be competing against for the market share;
therefore to attract his target market Jack's shop should also be

In conclusion, by looking at the three factors (market research,
consumers and competitors) Jack's business should launch off as a
mid-market shop using the penetration method as well and start selling
most of his cards at £1.00-£1.49 and then as it grows it could
progress to mid-market/upmarket to overtake his competitors, this
would require a different promotion strategy, he could do this by
selling high quality cards which would have quite high prices, this
could give his business a good reputation for good quality products,
and help him overtake his competitors. As Jack's business moves into
the cash cow section of the Boston Matrix, he could also incorporate
sales and special offers to give him the competitive edge over his
competitors when his business matures and therefore inject new life
into the business.

Promotion Techniques

There are four parts of the promotional mix: advertising, publicity,
selling and sales promotion. One of the best forms of advertising is
the product itself. But advertising still plays an important role.
There are four main reasons why firms advertise:

1) To make consumers aware of new products.

2) To remind consumers about existing products.

3) To persuade consumers to switch from rival products.

4) To improve the image of the business.

Advertising is the presenting or promoting of a product to the public
to encourage sales. Where the firm will place its advertising depends
on three things:

1) Your target audience. If you want to sell expensive women's
perfume, do not place your advert in a video game magazine.

2) The size of your market. If you are launching a video game
nationwide, do not just advertise it in the 'Isleworth Morning

3) The size of your advertising budget. A large profitable firm will
be able to advertise in different media while a small less profitable
company will only be able to afford one.

When advertising, Jack will need to decide how and where to go about
it. His target audience will be a wide range of people of different
ages and backgrounds. Because cards are bought by all kinds of people
Jack's shop is not age, gender or class specific. Therefore he will be
able to advertise in a wide variety of places, however he will need to
advertise in appropriate places where his adverts will fit in and be
noticed for example he could not advertise that his shop has a half
price sale on teddy bears in a rock music magazine as it would not be
noticed by a lot of people. If he placed an advert in women's or
girls' magazine, readers would notice it as girls tend to like cute
cuddly toys.

Jack will need to advertise according to the size of his target
market. Because he is setting up his business in Hounslow High street
he should advertise in Hounslow and nearby areas so people visiting
Hounslow High Street will know about his shop and come to it.

Jack's advertising budget will initially be small because he is
starting up as a sole trader and his investment will not be very big
so he will only be able to advertise in certain places, so it is
important that he chooses the right medium.

Informative advertising

Informative advertising simply describe the product and its features
in an impressive sounding way. They leave the customer free to make up
their own mind .In the UK, the highest spender on advertising is the
government. Most government advertising is aimed at giving information
to the public. This passing on of information is a very important part
of advertising.

Persuasive advertising

Most adverts try to do more than just inform the public. Persuasive
adverts try to convince the consumer that they cannot survive without
the product. They play on people's fear and vulnerabilities, and
create desires where none existed before .The soap-powder
manufacturers spend almost as much money on advertising as the
government, and their advertisements are blatantly designed to attract
people to buy their products.

Advertising Media

1) Television- adverts can reach millions and companies can target
people who watch certain programmes. But it is very expensive.

I don't think it would be a good idea for Jack to advertise on
television because it would be trying to attract a too wide audience.
Jack is setting up a business in Hounslow and to advertise his shop
nationwide would be inappropriate because most of the people who saw
the advert would be too far away to ever visit his shop so it would be
wasting money on people who would probably never visit the area. It is
also not very practical for Jack because it would be very expensive.

2) Radio- is cheaper and you can still target listeners of particular
programmes, but it's sound only and audiences are usually smaller.

The questionnaire conducted showed that people mostly listened to Kiss
FM and Capital FM. However advertising on these stations would be
inappropriate for the same reasons as television. Instead Jack should
advertise his shop on local radio, so people who live in the area will
hear about the shop. As Jack business grows and he decides to open up
store in different area he can then advertise on Kiss and Capital FM
because people will have a store near them and will decide to visit it
when they hear the advert.

3) Newspapers and magazines- know a lot about their readers so it is
easy to target effectively. People will often read them more than

Jack could advertise in the local newspaper, this would be very
effective as most of the people in the area would come across the
advert and find out about the shop. Advertising in the local newspaper
will target the Hounslow area and maximise sales.

4) Posters and Billboards- have a high visual impact, stay in place
for a long time and can be seen daily by lots of people. But often
they are near roads and drivers only see them for a few seconds, so
they can't contain much information. And they are vulnerable to wind,
rain and graffiti.

Jack should definitely use posters and flyers as an advertising medium
because they will grab people's attention and can hold quite a lot of
information. He could stick these posters in many places and gain lots
of potential customers.

5) Leaflets- are cheap to produce and distribute, however they are
easy to ignore.

Jack should produce and distribute leaflets through houses in the
area, this is cheap and very effective to create awareness of his shop
because people will pick it up with their mail and read so nearly
everyone in the area will know about the shop. The disadvantage is
that people may dismiss the leaflet as junk mail and may easily ignore

6) Internet sites- can have high visual impact, be interactive, and
link directly to buying the product. But the company's advert is
competing with a lot of other things on the net so it has to be very
attractive in order to grab people attention.

To advertise on other internet sites may be inappropriate again for a
business of this size. However Jack could set up his own website and
advertise and sell his products online as his business grows and this
could be another way of increasing sales and reaching out to target
customers. His website could be linked to Google and Yahoo as my
market research told me that people mostly visited these search

Sales Promotion

Promotion is not just about advertising. Sales promotion is another
technique. There are six main methods of sales promotion they are also
called point of sale promotions and below the line promotions because
they do not depend on the media.

1) Buy one get one free.

2) Discounts- a good way to get people to notice the product is to
stamp 10% off on the label.

3) Competitions- will produce motivation and hype for a product e.g.
win a year's free supply of crisps by answering the following

4) Free gifts- Buy a new skateboard and get a free CD player.

5) Product trials- Set up a stall and give out free samples of your

6) Point of sale advertising- Put your products in a special display
case at the front of the supermarket.

Jack should use sales promotion to boost sales and profit. He could do
many promotions such as 'buy one get one free' and have yearly sales
to offers discounts to customers to maximise sales. Jack could
organise competitions and give-aways to customers to promote his
company buy getting people motivated about his products. He could also
give free gifts in his shop when you buy certain items, for e.g. when
you buy a card you get free key ring with it.

Publicity means any technique or process used to attract public
attention to people and products. Unlike advertising, however,
publicity is usually free. Any type of publicity is advertising.


The advert on the left is for a company which sells movie swords and
collectables. The advert says that the company is the official
distributor of 'Lord of the Rings' merchandise. This will attract fans
of the films to the advert and people who like collecting swords. The
products are specialist goods and are quite expensive so would only
appeal to people who are interested in the subject. The advert was
taken out of a film magazine so the company is targeting a certain
group. The lettering of the company is cool and metallic, representing
the products this will appeal to the reader. Some of the products are
illustrated and will catch the reader's eye and people will instantly
know what the company is about. The advert is also informative it
gives contact details and payment details.

[IMAGE]Cards for all occasions at,Card Shack,

This is a poster designed by me and it is designed to grab a passer
by's attention. The cool colours are attractive and welcoming. The
pictures attract the reader and give them a general idea of what the
shop is about. The title is in a striking colour to stick out and be
memorable. The brief description tells the reader what the shop has to
offer and entices the reader by advertising exciting products at low
prices. The address telephone number and email tells the person the
location and contact details for more information. The website in the
bottom right hand corner is in a bold colour to catch the readers eye,
this is important because if the person is interested or in a hurry he
can look at the website later to find out more about the shop and its
products. The advert projects a friendly and warm image with cool
colours to appeal to the customer.

The advert I have designed and the advert design I have collected have
many similarities and have the same desired affect on the customer
because they attract and inform by using a combination of text and
colours. However the collected advert differs in some ways, the advert
shows the products on sale and this immediately tells the customer
exactly what the advert is about. This is effective for this kind of
company because the products are ornamental pleasing to the eye so it
appeals to the reader. However to do this for Jack' company would not
be a good idea because the cards would not have the same effect and
make the advert look cheap too squashed up, also the products
advertised may go out of production and when the customer comes to buy
it, it won't be available and they will be disappointed. Instead I
chose to use pictures to give the reader a good idea about what the
shop is about and create a relaxed and cool theme.

Channels of Distribution

A distribution channel is the means by which an organisation and its
customers are brought together at a particular place and time for the
purpose of buying and selling goods. This may be in a shop, office,
via a computer ink, or by television shopping.

The organisations that are involved in the distribution chain are:

* Manufacturers- the firms that make the products.

* Wholesalers- the firms that store goods in bulk where they are
purchase from manufacturers before selling them on to retailers.

* Retailers- the firms that sell goods to final consumers.

The diagram below shows the four distribution channels 1, 2 and 3 are
indirect channels, 4 is a direct channel.

1) Manufacturer-wholesaler-consumer

This happens when consumers buy the product from a cash and carry
warehouse. It's good for the manufacturer because they get bulk orders
and the wholesaler takes on the cost of storing the products and the
risk of not selling them. The consumer often benefits from lower
prices than if they bought form a retailer- but levels of customer
services may be lower.

This method would obviously not be appropriate for Jack because his
business is not involved at all.

2) Manufacturer-wholesaler-retailer-consumer

This is the traditional route-it's still used mainly in the food and
drink industry. The advantages to the manufacturer are the same as for
channel 1. The retailer also benefits from dealing with a wholesaler-
they reduce the risk by allowing retailers to buy in smaller amounts,
and giving them a wide choice of goods can take a long time to get
from manufacturer to consumer. And manufacturers may be too distant
from hearing the needs of consumers.

This traditional method would be most suitable for Jack because his
business would be involved in selling to the consumer he would also be
reducing risk buy buying in smaller amounts and getting a wide range
of goods from the wholesalers.

3) Manufacturer-Retailer-Consumer

This route is becoming more common-it's used in the clothing industry.
It's faster than dealing with retailers through wholesalers, and the
manufacturer gets better consumer feedback about the products. But
it's harder for small retailers to avoid having to hold a lot of

This method would not be good for Jack as it would require him to buy
large amounts of stock. This would be inappropriate for Jack as his
shop would not be able to hold such a large amount of stock and if it
becomes obsolete or unsold he will run up loss.

4) Manufacturer-Consumer

This is now very popular-examples include factory shops, mail order
and internet selling or e-commerce. It's the fastest channel and often
cheapest for the consumer.

But it can be more difficult for consumers to shop around and customer
service levels may not be as good.

Text Box: Consumer This method would obviously not be good for Jack as
his business is not involved.[IMAGE]

Consumer Law

These are laws which Jack will need to consider when setting up his

The Saleof Goods Act 1979 says that goods must be:

* Of 'merchantable quality'- i.e. free from significant faults,
except defects which are drawn to your attention by the seller
(for instance, if goods are declared to be 'shop soiled').

* 'Fit for the purpose'- including any particular purpose mentioned
by you to the seller, e.g. if you ask for a jumper that is
machine-washables, you should not be sold one that has to be

* 'As described on the package or sales literature, or verbally by
the seller. If you are told that a shirt is 100% cotton, then it
should turn out to be made out of cotton and polyester.

Any good that you can buy from any sort of trader should meet these
basic requirements. They also apply to foods and goods bought in

Jack must make sure the goods that he sells are of merchantable
quality and meet these basic requirements and satisfy the customer.

Trade Descriptions Act 1968 says that the description given of the
goods forms part of the contract between the buyer and the seller.
This act makes it a criminal offence for a trader to describe goods
falsely. A type of case frequently prosecuted under this act is
turning back the 'clock' on a used car to disguise the mileage.

Jack should make sure the goods that he sells clearly describe the
product and do not give a false impression otherwise he may be
prosecuted under this act. He should advertise his shop so that it
comes within this act he must not advertise something that his shop or
the products do not do and try to mislead the customer. Because the
act lays down that goods advertised must be as they are described.

Food and Safety act- This act gives Environmental Health Officers
powers to shut down premises where food is not being prepared in a
hygienic way. Regulation covers such things as refrigeration

If Jack decides to sell food in his shop such as sweets and sandwiches
e.t.c. he will have to make sure that his shop is suitable to do so
and he keeps under the regulations of the Act.

Consumer Credit Act 1974- This act protects anyone buying products on
credit- such as hire purchase. The customer must be given a copy of
the credit agreement, the interest charge should be clearly stated and
the customer has 14 days to change their mind and cancel the
agreement. The interest charge should be calculated to show the Annual
percentage Rate (APR) - and that is calculated in the same way by all
firms so that consumers can compare credit charges.

Jack must make sure he gives his customers a credit agreement and
calculates his interest charge to show his APR.


In order to complete this task I needed to undertake certain processes
that I have outlined below. I came across problems and difficulties in
producing and launching the shop and below I will outline how I
overcame them.

Market research

In order to find out about jack's target market and competitors I had
to conduct some field research. I did this by creating and conducting
a questionnaire to ask people in the target market. From the field
research I learned the following:

* the most frequently bought cards are birthday cards

* Clinton's cards are the most popular card shop in the high street.

* The majority of card buyers are aged 10-16, however there may have
been a number of factors which lead to this outcome such as time,
day etc. These have been outlined in my market research analysis.

* Most customers prefer cards within the range of £1-£2.

* The major factor that would attract customers is the price of the
products in the shop.

* Kiss FM is the most popular radio station.

* Apart from cards, wrapping paper is the highest purchased item.

This information that I obtained tells Jack about what his target
market buys and how it operates. It tells him what his potential
customers like and dislike and about their market behaviour e.g. where
they shop and what they buy. This will give him an idea of what to
sell and how to sell it. However one of the problems I faced with
these findings is that they were affected by social behaviour patterns
and economic factors. This meant that the target market may not have
exactly reflected my research, for example, one possible reason why
the majority of card buyers were aged 10-16 is because I interviewed
people at midday and this is the time young people tend to go shopping
because they get up late etc. and there were not many middle-aged
people because they tend to shop early. The age range of the people
interviewed affected the economic factors of the target market also.
For example the reason people preferred a card price of £1-£2 maybe
because of their age, younger people may not be able to afford
expensive cards and because the majority of people asked were young
that may be the reason for the preferable price of the card. Other
socio-economic factors are outlined in my market research. However I
still feel that the field research conducted still gives an accurate
view of the target market because it is clear to see a general pattern
between all age groups despite the socio economic factors.

Marketing Mix

In order to find out how to make Jack's firm successful I had to make
the right marketing mix, this consisted of the four P's: product,
price, place and promotion. I came to a conclusion for each of these
by looking at my market research.

The market research told me that people preferred products within a
price range of £1-£2.

Jack should sell products that have many benefits for the consumer
such as quality and convenience.

For Jack to be successful his business has to be in the right place to
attract the largest amount of potential customers. I concluded that he
should set up in the centre of the high street or in the treaty centre
to attract large amounts of customers.

For promotion I researched similar businesses which are in competition
which Jack to see what types of promotion strategies they used. I have
shown this research in my promotional techniques.

From investigating the marketing mix I also identified my target
market, I found that because Jack's shop appeals to such a wide range
of audience it should not be aimed at a certain age range or gender,
however Jack could aim certain products that his shop sell at
different age, social, and cultural groups.

I also designed the inside and outside of Jack's shop for his launch,
I did this by researching his competitor's layouts and taking ideas
from them and adding my own. I designed it taking into account
convenience for the shopper and safety for the shopper, I also took
into account the importance of visual display which attracts customers
and used this marketing technique to attract customers to new items in
the shop.

Producing the right marketing mix proved quite tricky and if the mix
is not successful Jack will be at a loss. Therefore Jack will need to
adjust his marketing mix and his shop grows or his market changes.

Product Life cycle

To prolong Jack's product life cycle he will need to re-design and
re-launch his products and use updated marketing campaigns, this will
increase his shops growth and delay maturity. This will maximise sales
and profits and limit loss.

The main problem I found was what would be done when the shop
eventually reached maturity because it would be hard to predict what
kind of situation the shop would be in, depending on how well the
marketing mix was working and how well the products were selling then
Jack could decide what decisions to make about expansion and

To decide what pricing strategies to use I looked at the market
research which told me that people preferred cards ranging between
£1-£2 therefore Jack should aim to us this price on most of his
products. This is quite al low price and Jack could use the
penetration strategy which sells at low prices and gains a market
share quickly. This would be effective as it would give him a market
share and guarantee him entry into the market when he launched.
However these low price make people of the quality of the goods so
Jack should sell middle market products to attract the largest number
of customers. And as Jack's shop grew he could start to sell up
upmarket products which have high prices to attract customers who are
looking for high quality and take these customers away from his
competitors because he has now gained a large market share and can
appeal to different socio-economic groups.

Promotional Techniques

To inform and attract the public to Jack's shop, Jack needed to use
promotion and advertising. To decide what promotional techniques Jack
should use, I investigated promotional techniques of other businesses
as shown in the promotional techniques chapter. I also looked at
Jack's competitors promotional techniques to give me ideas on how to
promote Jack's company. Because Jack is a sole trader and he owns a
small single shop it would be advisable for him to advertise to the
local area, in which his shop is located, which is Hounslow. I decided
the best way to do this would be by putting up flyers and distributing
leaflets in Hounslow. The leaflets would be sure to come into the
public's eyes but may be dismissed as junk mail; therefore flyers
around the area would be the most effective and eye catching way to
attract the public. By looking at other company's flyers, adverts and
posters I designed a poster that is eye catching and informative that
meets the objective of attracting passers-by.

The problem I encountered in launching Jack's promotional campaign was
due to the nature of Jack's shop. Because it is a small single shop
most of the promotional techniques are unsuitable for it because they
would appeal to a too wide range of audience that would be very
unlikely to visits Jack's shop and so advertising such mediums such as
TV and radio would be expensive and inefficient. Therefore local
advertising would be the most effective however this ruled out the
most effective advertising mediums so Jack could only advertise
through leaflets and flyers. However as Jack's business grew and he
decided to open up more branches in other parts of the UK he could use
radio and TV to promote his shop.

Channels of Distribution

In order to decide which channel of distribution Jack should use I
researched each channel to decide which one would suit him best. I
decided the best method of distribution for Jack would be through the
'traditional' method because it is the only channel which involves his
business and does not rely on the business's ability to sell products
in order to buy in bulk. It allows Jack to buy products in small
amounts and sell them on for a profit. However the problem with this
channel is that the maximum profit on an item will not be made as a
percentage goes to the wholesaler.

Consumer law

In order to fall within government guidelines and to be consumer
friendly Jack had to follow certain consumer laws which applied to his
business. To find out which laws applied to him, I researched business
law. The laws that apply to Jack have been identified in the consumer
law chapter and Jack must follow these laws to run a successful


In order to make Jack's business successful and give him the best
chance of entering the greeting cards market I have made
recommendations that jack can follow to achieve this goal.

Market Research

By looking at the market research, I believe that Jack should
generally aim his product at people aged 10-25 as they tend to buy the
majority of cards, however he should also aim products at middle aged
people because of the condition in which the questionnaire was taken
(see market research analysis). Jack also price the majority of his
products at £1-£2 as this is the preferable price of the customers,
this is an down-market mid-market price which will attract younger
people, however quite a few people were prepared to pay up £3 for a
card so Jack should also have an upmarket range of products in order
to attract older customers who are looking for quality, this will help
him reach out to the maximum amount of customers and increase sales.

The most popular cards were birthday and anniversary cards, so Jack
should stock a large and wide range of these cards to appeal to the
largest amount of customers.

The most popular products apart from cards that people would buy from
card shops were wrapping paper and posters so Jack should sell a wide
range of these to pick up sales from products apart from cards. If
Jack has an attractive and popular range of wrapping paper and cards
customers will come to him instead of his competitors even if they
stock better cards because he will have better wrapping paper and

The factor that attracts people to a card shop is the price and the
quality of products so Jack should stock products within the preferred
price of £1-£2 which is a mid-market price, these goods should be of
good mid-market quality to please the majority of shoppers and Jack
should also sell some upmarket products of high quality to please
shoppers who are willing to pay high prices for high quality products.

By looking at the market I have made these following recommendations
and is Jack follows them he is likely to please the majority of
customers and maximise sales.

Marketing Mix

To make the right marketing mix I looked at the market research and
Jack's competitors. Below is an initial marketing mix that I suggest
however as the shop is launched, Jack will see how well the mix works
and he can adjust it due to the market's response to it.

* Price-Jack should aim most of his products to be within the £1-£3
price range to suit the majority of customers.

* Place- the shop will be located In the centre of Hounslow high
street to attract the largest amount of customers from both ends
of the high street.

* Product- The majority of the products should be of mid-market
quality and price to suit the majority of customer, however Jack
could sell some up-market goods to attract other customers who are
looking for quality.

* Promotion-Jack should use local advertising as the most effective
way to appeal to his target market. He can use the flyer I have
designed and display it around Hounslow; he can also distribute
leaflets directly to potential customer and even advertise on the
local radio station.

Jack should aim his products at all age ranges, but also at younger
people specifically according to the market research. He can also sell
products that appeal to certain cultural groups such as Diwali, Eid
and Christmas cards, this will appeal to certain groups which have not
been targeted by his competitors and therefore take some market share
away from his competitors.

Jack should also get my interior and exterior plans for my shop in
blueprint to make the design official and start to plan a scale
version of it.

Product Life Cycle

To prolong the life cycle of Jack's shop and delay maturity, he must
decide on two things, price and promotion. If Jack decides on a
suitable price which generates profit and also makes enough revenue to
fund an advertising campaign he can maintain his companies growth and
delay maturity and the eventual decline. The advertising campaign will
create and sustain interest in the company for a long period and will
inform people who have not heard of the company. He can also delay
maturity by re-launching his shop with a new look every ten years to
boost interest in his company which has worked for other companies
such as WHSmith. According to the market research the most suitable
price to launch the majority of Jack's cards would be £1-£3 because
most consumers prefer and buy cards at that price. The advertising
campaign should be launched at the same time as the shop to inform and
attract people to Jack's new shop. The advertising campaign could be
renewed when there is a drop in sales.

Promotional Techniques

The most effective methods of promoting Jack's shop would be through
local media and local advertising such as flyers and leaflets. He
could advertise through local newspapers like many of his competitors
and through the local radio station directly to his target market. He
can use the flyer I have designed in the promotional techniques
chapter as an attractive and informative method of advertising.

I rejected the advertising mediums of T.V. and the internet due to the
size and scale of Jack's shop. Jack is a sole trader setting up a
small single shop in Hounslow, if he advertised on the television and
the internet it would be very expensive and broadcast to people who
live extremely far away from Jack's shop and would be very unlikely to
visit it, therefore Jack would be wasting a lot of money on people who
would never visit his shop, that is why I rejected these mediums. As
Jack's business grew and he opened more shops across the country then
national T.V. and radio could be used as advertising mediums as they
would appeal to his target market and would be fairly close to his
shop to visit it.

Channels of Distribution

I would advise Jack to use the 'traditional' channel of distribution
where products are delivered to Jack via a wholesaler. I rejected the
other methods because they did not involve Jack's business and Jack is
setting up a small business and would not be able to buy in bulk
because of space and he there is not a guarantee that he will sell all
that amount of stock because of the size of his business. However as
Jack's business grew and he opened up more store he could consider the
'direct' channel of distribution however he will have to maintain
sales and require many large shops to make this method work

Consumer Law

For Jack to stay within the business he needs to fall within
government laws and guidelines. Therefore he needs to carefully
consider these laws, and he must choose which manufacturers to trade
with and what products to sell to abide within these laws.



* Business Studies for you

Publisher- Stanley Thornes

Author-David Needham, Robert Dransfield

* Business Law


Author-Denis Keenan, Sarah Riches







How to Cite this Page

MLA Citation:
"Designing a Small Scale Marketing Plan." 23 Apr 2014

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