2: Target Market

Market Research

Market research is the gathering of data which is used to be analysed in order to reach a decision on a business idea, objective or aim. There are two types of data in market research it includes,

Primary, which is newly, conducted data which is fresh for analysis and exclusive for my company only. The company of mine which is Musa Mobiles ltd can conduct surveys and questionnaires to see the interest and trends of the market which I am targeting.

Secondary data is information which has already been conducted by another organisation; it can include data such as government statistics and public limited companies trading reports. This is beneficial for me as it allows me to access competitor’s data free of charge.

Sales forecasts

This is the turnover/ the average amount my customer spend, therefore in my case it will be:

Total Sales Revenue =                               £110,000 per year = £1833
Average amount customer will spend = £60

Strengths and weaknesses
My organisation is a second hand mobile phone retailer therefore I have several positives and negative.Strengths

·         My organisation offers well monitored products; I also offer diagnostic solutions free of charge if any issues arise.

·         My company also offer 24 hour customer service to attend to any queries via telephone and email

·         I also give warranty for all my mobile phones sold if any  of the part are sole in faulty

        Weakness

·         Our company is new to the second hand mobile phone market which could be an issue in comparison to the more established firms.

·         Also second hand mobile phones are not the most preferred mobile phone handset market

·          In addition to this peoples general assumption of second hand phones is that they are bad quality and worn out.

Market trends

4GS and 4G phones

With the introduction of the 4G & 4GS phones it has caved way for the breakthrough of 3G into the second hand mobile phone market. The old generation of mobiles have now penetrated into the market; this means that my target market can buy 3G phones for a less cheap price. When a new generation of mobile phone is released the old ones depreciate in price, also my market are the population of low income therefore this is ideal for them as the price has gone down.

Economic outlookThe current economy is not doing very well; we have just come out of a recession and are entering a growth stage which does not look very convincing. The growth in mobile phones is not being affected by the general economic trend in actual fact our market is one of few industries that buck up the growth rate; this is due to that the mobile phone market is considered to be a necessity in comparison to other markets such as the hotel industry.

The green agendaWe as a company are committed to protect the planet and reduce our carbon footprint. We believe that lowering our carbon dioxide emissions plays a key role in our daily operations. We use many alternatives to lower the waste such as using eco-safe light bulbs and solar battery chargers for the mobiles we sell. We also have a scheme as a company to recycle old mobile phones and in exchange we give you cash which is very effective as a frim.

Customer behaviour analysis