Huge promotions Ltd – diary
04-10-2005
Diary of Huge Promotions Ltd:
The all inclusive fashion and lifestyle PR and events agency.
Week 24: The importance of market research
Why do market research?
Just because friends and family have bought your work from degree shows does not mean that you have suitable products to start up in business. You need to talk to potential customers, who will ask specific questions about the quality and prices of your work and – hopefully – will buy your work all year round. You, like every other start-up business, must carry out market research so as to identify the following basic market information:
· To know whether your business is feasible.
· To know how and where you are going to trade.
· To understand the size and the potential of your market.
· To identify your customers.
· To determine the most appropriate promotion and marketing methods.
· To identify your competition.
· To create a pricing strategy.
· To estimate sales income.
Getting started
What is your business idea? Try to explain it in 20 words.
What are you trying to achieve, in both personal and business terms? Try to explain this, in one short paragraph.
How do you think you will meet your objectives? Think of yourself and your business as a single entity. Carry out a SWOT analysis (Strengths, Weaknesses, Opportunities, Threats), and list the following:
· Your personal and business strengths (e.g. self-confidence, organisational skills, personal commitment, the strengths of your products or services)
· Your weaknesses (e.g. lack of business knowledge and experience, lack of premises, lack of contacts)
· Opportunities that will help your business (e.g. awards, exhibitions, contacts, successes)
· Threats (e.g. competition, declining markets, interest rates, other external factors).
How does your SWOT analysis compare with your business idea statement (above) and with what you want to achieve? How can you use strengths and opportunities to overcome weaknesses and threats? If the weaknesses and threats outweigh your strengths and opportunities, then you need to do more research into how you could develop your business idea or change your products and services.
What specific areas are causing problems, and what actions do you need to take?
What training needs have you identified (e.g. business planning, book-keeping, presentation skills)?
– How to do your market research
Think how you could sell your work. If that involves dealing with retailers or galleries, speak to the buyers and value their opinions.
When presenting your work, try to take actual samples that are relevant to your current work. If you get a positive response from a number of contacts, then you can have the confidence to start selling. It is important to take note of all comments, including the criticisms; the fact that a business is taking interest in your work is a really positive part of your market research.
Observe other designers’ and competitors’ activities to see how they operate. Monitor current trends in fashion and lifestyles, and keep an eye out for predicted trends by regularly visiting a range of trade fairs and exhibitions.
The following are some sources of market information. Select a few that are the most relevant to your business idea, and start to collect market information:
· Designers who have set up their own businesses.
· Established businessmen; do you have a rich uncle or a helpful
one?
· Trade organisations and directories.
· Professional bodies and associations.
· Department of Trade and Industry (DTI).
· Libraries, both local and central.
· Newspapers and trade magazines.
· Market reports.
· The internet.
· Competitors.
· Universities and colleges.
This will continue next week, so if you would like to know about the following please come back next week! Next week we will discuss; is there a market for your business?, the competition and sales.
For further information, please do not hesitate to call us.
We’re happy to help, if you have any queries – simply drop us a line and we’re all ears.
We would enjoy telling you how we can get the press talking about you too!
About us:
Huge Promotions Ltd
LCB Depot
31 Rutland Street
Leicester
LE1 1RE
T: 0116 253 3418
Kate Mitchell
PR Assistant
Huge Promotions Ltd
Huge Promotions,
LCB Depot,
31 Rutland Street,
Leicester,
Leicestershire,
LE1 1RE
T: +44 (0) 116 253 3418
