Recommend whether Zetagym plc should target its new gym at Donton or Longley?
Market research would be important for starting a new business’s for example Josh’s and his new business called Zetagym, it’s important because market research is how businesses collect information on whether their product or service will be brought. I think market research is an important part for Josh’s new business, because it will help him collect important data from the customers, also it will allow him to understand what type of things he needs for his gym.
Location is import for new business because it’s how the businesses get the profit and the customers for example, if Josh set his business in a place where there’s a low population or where people that live there have a low socio-economic group then Josh wouldn’t wont to set his business in that area. Josh needs to look at the transport links, this is important because this allows the costumers to find an easy route to get to the business, for example, Josh is going to set his business in a local area so if there’s only a few ways to get to the gym then the customer wouldn’t come but if there are a lot of ways to get to the gym then lots of people would want to come to the business because it easy to get there. Also Josh could look for economies of concentration this would be useful because he could find skilled workers for his business, if he set his business near competitors it would be an advantage because there could be local suppliers and customers will know where go to the new business because he’s setting the prices low.
Josh can use Primary and Secondary data. These are two different types of research methods; Primary Research is also called Field Research which is the data that you collect on your own i.e. Questionnaires, Telephone Surveys. The advantages of field research are; it helps you find new information and also it helps get customers’ view. Also field Research can be useful for Josh because it provides ‘up to date data’ which can help Josh find the problems or the thing that can be improved (if there are any situation.) The other advantage of field research is that it’s relevant and specific to your product/ business this is important for Josh because it finds out the specific things of the business that needs improving. The disadvantages of field research are; it is expensive to collect, also it’s time consuming which affects the business because it uses a long period of time to find out information. The other disadvantage is, it needs a large sample size to be accurate.
Secondary data is also called Desk research; desk research is a method of collecting data that has already been gathered by someone else. This is can be useful for Josh because it’s looking at whole markets and it help analyses the past trends of the business in Josh industry to predict the future of Josh business. The advantages of desk research are that it is cheaper then field research, the data the Josh needs can be easily found and can be instantly available, it the best type of research a business can use if they have a limited budget. The disadvantages are; the data that you find aren’t relevant for the business, also most of the data not specific and I can be out of date. This can be a problem if it’s a new business like Josh’s.
Josh need to look at the different Figures to find out which area in general is better; he has to look at four figures and at the end need to decide on which are to choose. Figure 1 is important because it shows the different types of Socio-economic group of the two areas this means the type of skilled workers that are working in the area for example in Donton the socio-economic group C1 is 33% this is good because most of the people that are working can afford to go to the gym. Also Josh has to think about his ‘Target market’ because this will help his business by the type of people coming and paying. Target Marke6t is a specific group of