Business Plan Letter

Business Plan Letter

Length: 1504 words (4.3 double-spaced pages)

Rating: Excellent

Open Document

Essay Preview

More ↓
Business Plan Letter
TO: Managing Director of Optimum PLC


FROM: Chief Designer of the Research & Creative
department


DATE: 11 January 2002


RE: Questionnaire Report on "Just Trainers"


1.0 Terms of Reference


1.1 Ralkon Shoes PLC, a major footwear manufacturer, are considering
opening a chain of shops in the local area specialising in training
shoes.


We have been asked to investigate the potential market for such shops;
find out which products should be offered in the shops and to outline
a suitable advertising campaign for the shop's launch detailing all
costs. Ralkon named the shops "Just Trainers" but their research
showed this did not appeal to the target group and would like us to
suggest a more suitable name.


1.2 When carrying out this task the main aims and objectives for the
Research & Creative department were provide information about the
following for Ralkon Shoes PLC:


OBJECTIVES


(1)The Potential Market-To investigate the potential market from the
people surveyed, who would consider purchasing from "Just Trainers"
company and why?


(2)The Products to be offered-To provide numerous recommendations from
the results gathered as to the types of products that should be
available.


AIMS


(1)The Main Market Segment-The main market segment e.g. Age that
Ralkon Shoes PLC will be predominately targeting in order to increase
sales revenue and profit aswell, as keeping up with the latest trends
and fashions.


(2)Spending Habits-Information gathered from our group's collated
results would produce valuable data about the limit an individual
would be willing to pay for sports footwear, which will be the main
product to be supplied by Ralkon Shoes PLC in the chain of shops.


(3)Brand Popularity-To obtain information about which is the most
popular brand of trainer from the collated results of our group's

How to Cite this Page

MLA Citation:
"Business Plan Letter." 123HelpMe.com. 23 Feb 2020
    <https://www.123helpme.com/view.asp?id=122314>.

Need Writing Help?

Get feedback on grammar, clarity, concision and logic instantly.

Check your paper »

Harrah's Business Plan Essay example

- Through exceptional data asset leveraging in the service sector and aggressive acquisitions of their competition Harrah's Entertainment, Inc has made itself the world's largest provider of branded casino entertainment. Harrah’s CEO Gary Loveman is a former operations professor who has used information technology to create what people consider the most effective marketing organization in the service industry. Harrah’s operates fifty-three casinos, employing more that eighty five thousand workers on five continents....   [tags: Business Management ]

Research Papers
1057 words (3 pages)

Plan For Cover Startup And Ongoing Operations Expenses Essay

- • Formulate a plan to cover startup and ongoing operations expenses, as well as your personal financial requirements to remain solvent until sufficient business cash flow begins. Like with any form of business you need to begin with a plan. This plans has to be outlined to the letter in order to successful. Now, this is not saying that there will be items popping up out of the blue that will throw a curve into the plans, so having as much as you can covered will help ease the blow. In a startup plan to open successful real estate business you need to generate a plan that will cover your expenses....   [tags: Management, Business, Profit, Cash flow]

Research Papers
1703 words (4.9 pages)

Business Administration At The University Of Florida Essay

- 1. I am currently studying Business Administration at the University of Florida because I have always had an interest in the various fields of Business. I plan to specialize in mass communications and minor in Spanish to expand my knowledge of professional language as well as learn another language to further my communication ability. I have always loved writing and different business fields like marketing and economics and I hope to incorporate these passions here at UF to eventually find a career which best suits me....   [tags: Management, Business, Business school]

Research Papers
1347 words (3.8 pages)

A Plan For A Leadership Development Plan Essays

- A leadership development plan is something that every organization needs to ensure its continued success. The plan would need to encompass multiple steps in order to cover every aspect needed in the plan. There are seven steps that need to be covered or considered when establishing the plan. These are 1) determining the best leadership style for the organization 2) identifying the current and future key leaders within the organization 3) identifying any and all leadership gaps 4) developing succession plans as people leave the organization or move up the ladder 5) developing goals for future leaders 6) developing a plan to get future leaders where they need to be in the organization 7) devel...   [tags: Management, Leadership, Fiedler contingency model]

Research Papers
1046 words (3 pages)

Essay about Becoming A Financial Advisor For Small Business Owners

- A parent’s dream is to prepare their children for the world in front of them, and a teacher’s dream is to give their students the tools they need to succeed in that world. I like to think of it as my parents taught me to dream while my teachers taught me to make a plan to achieve it. My dream is to become a financial advisor for small business owners in my community and help revitalize small businesses in the economy. I believe that small businesses are at the heart of every small community and are the key to a growing economy....   [tags: Small business, Business, Management, Teacher]

Research Papers
750 words (2.1 pages)

Information Systems At The College Of Business At Uf Essay

- 1. I am studying Information Systems at the college of business at UF. This is because my parents are small business owners themselves. Growing up I saw them make very hard decisions from laying certain employees off to where they wanted their store to be located. Although neither of them have a degree in business they are successful and I would like to mirror this success by someday hopefully opening a small business of my own. Additionally through the study of the economy, the business industry is the only own that has an effect on the entire world....   [tags: Management, Small business, Résumé, Recruitment]

Research Papers
1304 words (3.7 pages)

Finance Is The Most All Encompassing Business Major At The University Of Florida

- 1. I am currently at sophomore studying Finance at the University of Florida. I chose to study finance after talking to a preview advisor before my freshman year from the business school, and they told me that they believed “finance is the most all-encompassing business major at the university”. I originally knew I wanted to study in the business school after taking 4 different economics classes at my high school. The discussion I had with this advisor definitely influenced which major I chose because I knew I wanted to learn everything I possibly can about the business field to gain an eclectic view of business, rather than focus on a more narrow area of it....   [tags: Employment, Recruitment, Résumé, Cover letter]

Research Papers
1272 words (3.6 pages)

Business Administration On A Pre Health Track Here At The University Of Florida

- 1. I am studying Business Administration on a Pre-Health track here at the University of Florida because I have a passion in helping others through the healthcare field and I would like to run and manage my private practice effectively one day. Ever since I was in elementary school, my dream was to become someone useful and resourceful in the healthcare field. At this very moment I do not know exactly what I want to specify myself in the healthcare system, but I know that I love helping others get better and feel better....   [tags: Management, Recruitment, Business, Dentistry]

Research Papers
1466 words (4.2 pages)

Scarlet Letter Book Report Essay examples

- Characters: - Hester Prynne was a beautiful, young woman living in Amsterdam with her husband, Roger Chillingworth. He sent her you America alone while he finished his business. In America she met Reverend Arthur Dimmesdale who she had a love affair with. Pearl was the name of their child. When the townspeople found out about her sin, they punished her by making her wear a scarlet letter ‘A’ ,standing for adultery, on her bosom. - Dimmesdale was a young reverend of the community. The people loved him, because of his emotional ways of speaking....   [tags: essays research papers]

Free Essays
1003 words (2.9 pages)

Persuasive letter Essay

- Dear Bob: Thanks for meeting with me again last week. I continue to be interested in purchasing the assets of Tower Mart, Inc. If we reach an agreement regarding my purchase, I plan to transfer these assets to a new corporation that I am forming. My new company would then run a convenience store similar to what you are currently operating. I am interested in purchasing the following assets: the inventory, fixtures, equipment, leasehold improvements, and business name. In addition, I will need all necessary licenses and permits transferred to me....   [tags: essays research papers]

Free Essays
504 words (1.4 pages)

Related Searches

research.


2.0 Procedure


Market Research is the tool used to determine what potential customers
want. The vast majority of companies may be described as market
orientated as opposed to product orientated. This is because producing
prototypes is costly.


The research method used for Ralkon Shoes PLC was Field research, from
a random sample of the local area. This was chosen above Desk research
because Ralkon Shoes PLC wants to explore the potential market for
sports shops and the products to be offered. Therfore cheap, up to
date, relevant information must be obtained in order to have knowledge
of current trends and possible future fashions.


2.1 Once the questionnaire had been answered the whole group collated
the results and divided it into various sections, answering specific
questions in order to achieve our aims and objectives.


3.0 Findings


3.1 The main target market for which the questionnaire was designed,
were the teenagers-young adults. These people are most likely to want
to follow trends in fashion.


3.2 The questionnaire was conducted in the surrounding area, which was
Edgware Road; results were obtained from a sample of 100 individuals
(50 male +50 female).


3.3 The most popular branded trainers were Nike with fifty-eight
people answering "Nike" as their most preferred brand.


Most people went to a sport shop to purchase their trainers, a massive
eighty-six of the hundred people questioned.


The majority of the respondents-thirty per cent were willing to pay
over seventy-one pounds for a pair of trainers.


Most of the respondents replaced their trainers every three to six
months-forty-five per cent.


There is no such thing as brand loyalty as many of the
respondents-eighty per cent were willing to purchase different brand
names.


QUESTIONNAIRE ANALYSIS
----------------------

Sex

Number of Respondents

Male

50

Female

50

Total

100

Age

Number of Respondents

Under 12

1

13-19

26

20-26

48

27-33

13

34-40

7

41+

5

Total

100

[IMAGE]


74% of the respondents were between the ages of 13-26 meaning that the
market to be targeted needs to be within the teenage to young adult
range.

Social Group

Number of Respondents

A

1

B1

15

B2

13

C

4

D

5

E

62

Total

100

What is your annual income?

Income

Number of Respondents

Under 10K

37

11K-16K

16

17K-22K

14

23K-30K

14

31K+

19

Total

100

[IMAGE]


The majority of the respondents-37% earned under 10k per annum meaning
that the target market will be concentrated on people with low
incomes.

Brand Popularity

Number of Respondents

Adidas

18

Nike

58

Fila

4

Puma

3

Ellese

3

Reebok

9

Other

5

Total

100


[IMAGE]The most popular brand name by far according to the results of
the one hundred respondents was Nike with 58%. Second place Adidas
only managing a meagre 18% showing that at the current time Nike is
dominating the trainer market.

How much?

Number of Respondents

Under £30

5

£31-£40

13

£41-£50

19

£51-£60

14

£61-£70

19

£71+

30

Total

100

[IMAGE]


The majority of the respondents-30% were willing to spend in excess of
£71 for a pair of trainers this shows us that the consumer is willing
to pay a premium price for quality trainers.

How often do you replace your trainers?

Number of Respondents

Once a week

0

Once a month

30

3-6 months

45

6 months +

25

Total

100

Where trainers are bought

Number of Respondents

Sports shop

86

Catalogue

6

Department store

4

Other

4

Total

100


[IMAGE]The above pie chart shows that the majority of the respondents
purchased their sportswear from sports shops.


However, there was brand loyalty with respect to the particular shop
from which trainers were bought.

Would you buy trainers from the "Just Trainers" Company ?

Would you buy trainers from the Just Trainers company?

No of respondents



Yes
===

18

No

57

Maybe

25


[IMAGE]


The majority of the respondents-57% would not purchase trainers from
the "Just Trainers"company mainly because of the following reasons:


(1)Most of the respondents haven't heard of "Just Trainers"


(2)The company has no reputation at the present moment such as future
rivals like First Sport, JD Sports or JJB


(3)The name is not very appealing to potential customers


However, 18% of the respondents said "yes" and a further 25% said
"maybe" meaning even without the 57%, there were still 43% of the
market to be exploited according to our findings. Although 86% of
respondents bought from sports shops only 43% are potential customers
and with such a large market available for exploitation it is
advisable to changed the proposed name of "Just Trainers" to the
suggested option of "BOOM FOOTWEAR" this is because the 57% who
answered "No" were mainly put off by the name in particular.


3.4 The potential market demand for a chain of sports shops is pretty
strong with a massive 86 per cent of our respondents purchasing their
trainers from various sport shops.


For Ralkon Shoes PLC to make an impact on the market which is
dominated by a handful of companies, a more appropriate name must be
found. It should be both eye-catching and memorable. It is also
advisable for Ralkon Shoes PLC to increase the number of products they
have available. The potential customer goes into a sports shop
expecting to observe a numerous selection of sporting equipment not
only trainers.


According to our findings 74 per cent of the respondents were between
the ages of 13-26 meaning that Ralkon Shoes PLC would be recommended
to target this market segment which is the teenage/young adult
segment. This is seen as highly profitable with many potential
customers.


The most popular brand name by far according to figures is Nike with
58 per cent in favour with the respondents. This information will be
useful for Ralkon Shoes PLC because it will inform them of which
trainers and associated products to stock-giving them the highest
return.


Quite, surprising 30 per cent of the respondents said that they would
pay in excess of £71 per pair of training shoes. This suggests that a
skimming price strategy is appropriate for this type of retail
project. This information prompts the recommendation that providing
quality trainers could be more important than charging higher prices.
This is because trainers mean a great deal to their owners especially
what with the pressures of the peer group and the need to "fit in",
exclusivity could be important as well making the individual who
purchased them the feeling of being "elite" and when new footwear
arrives on the market many consumers want to make a fashion statement.


The investigation of one hundred respondents of whether or not they
would purchase sports footwear from "Just Trainers" is entirely
conclusive with 57 per cent saying "No" however, as previously put
forward the new company has to develop-building a stable reputation as
well as prestige, if these aims are achieved then the current
potential market of 43% will grow as the company becomes more
established.


4.0 Conclusions


4.1 It would be ideal to sample one hundred respondents in an
alternative area like Oxford Street in order to compare both sets of
results and instead of targeting teenagers adults or older members of
society can be sampled to see if diverse trends or patterns immerge.


Further research is required in order to obtain a true representative
sample of the population, as with taking a sample in a particular area
the same types of people may live in the area with the same views
whereas, an alternative area may have completely conflicting view
points.


4.2 The following recommendations are in my view unsurpassable
according to research conducted by the Research & Creative department
of Optimum PLC:


(1)Locations of the chain of shops-My recommendations are that
firstly, the locations must be near a busy area where many potential
customers are around and secondly, it must be visible to many people
in order to create awareness.


(2)Trainers and products they should sell-The trainers should be brand
names like Adidas, Nike and Reebok according to Optimum Research, the
potential customers would like diversity in sports shops. Therefore,
other sporting equipment such as footballs, snooker cues should also
be available in limited quantities.


(3)Pricing Strategies-According to research the Skimming price
strategy is the foremost pricing strategy however, what with more
stable and reputable competitors it would be advisable to choose the
Competition pricing strategy which is charging what the current price
is that the majority of your rivals are charging, by choosing this
pricing strategy it may avoid a financially dangerous price war with
more established rivals.
Return to 123HelpMe.com