Details of the Market Research that the Sole Trader Will Perform - Coursework Example

Enterprise and Entrepreneurial Management Contents Contents Introduction 3 Proposed market research 3 Methods and its justification 5 Importance ofthe research 6 Conclusion 8 References 8 Introduction A sole trader is trying to set up a new business of garments in Camden, London. Before setting up the new business the trader wants to conduct extensive market research. The sole trader has long term business vision. He wants to gain long term sustainability in his business. That is why he does not want to take any chance. This report will focus upon the details of the market research that the sole trader will perform. The report will include proposed market research and methods to be applied in the report. There are many research methods are available but the research will give more focus on some of the specific research methods. The report will also provide justifications for the selected methods. Before setting up any new business research is significantly important. The report will evaluate and analyze the importance of research. This report will be significantly helpful for the sole trader to set up a new business of garments. The report will provide the sole trader a clear cut idea about the business situation in Camden, London. This report will critically evaluate various aspects of the market researches. It will follow a step by step approach. Proposed market research The sole trader will conduct primary market research for his new start up business of garments. The primary research will help the sole trader to become more subject specific. It means the trader will be able to collect data suitably related with the matter of his business. He will be able to press the right button with the help of primary research. It is often being noticed that in case of secondary research sometimes there is high scope of information overloading. But with the help of primary research the trader will get specific information required for the new start-up business. It will assist him to understand the proper situation of the garment market in the Camden area. Primary research will help the entrepreneur to have greater control over the data collection related with the new start up business. It will support the trader to decide what type of data collection method he will follow. It will also help him to identify key contact persons or the groups and target customers related with the new business. As the primary research is significantly subject specific so it will not waste money for the trader. The primary research will help the trader to spend its money in a calculative way. In the case of secondary research the trader would not get this benefit and the trader will have less control on the data collection. The trader will have proprietary authority on all the data that he will collect in the Camden market with the help of primary research. It will give unique result to the sole trader. No other competitor in the Camden market cannot access the data collected by the primary research. It will provide the sole trader a good platform and significant competitive advantage to the trader. In case of secondary research the trader cannot get this kind of exclusivities. In case of secondary research data can be easily accessed by the other people also (ESOMAR, 2008). In case of primary research data interpretations are more precise and perfect. It will help the trader to collect the required data without any confusion. Garment markets in Camden area are significantly heterogeneous in nature. It requires flexible research from the side of the sole trader. Primary research will provide that flexibility to the sole trader. It will help the trader to get the real picture related with the heterogeneous garment markets in Camden. This flexibility cannot be achieved with the help of secondary market research. Secondary market research will not be that much effective for the trader to get proper picture of the heterogeneous garment market. The trader wants to set up a new business in the Camden market. It means he wants past and current data of the market. But with the help of secondary research recent data cannot be achieved (Pakroo, 2009). So for collecting recent or current data the trader should use primary research. Primary research will provide more in depth information than the secondary research. It will assist the sole trader to analyze the strengths and weaknesses of the market more critically. All the above arguments are clearly indicating that proposed primary market research is absolutely suitable for the trader to open its account in the Camden area of London. Methods and its justification In primary research several methods of data collections are available. But all the methods are not suitable for every research situation. Here in this case the required research of the sole trader his highly descriptive in nature. It requires a combination of qualitative and quantitative research methods to handle the whole research. Both qualitative method and quantitative method have certain limitations. That is why combination of two has been chosen. The quantitative method may cover-up the limitations of qualitative method and vice versa. Here in this market research questionnaire method will be significantly helpful for the trader as a quantitative method. Questionnaires will be distributed among the 100 customers of the Camden area. Questionnaires will be distributed through email. Distribution of questionnaire through email will help the trader to save lots of time and money. There will be seven open ended questions in the questionnaire. This open ended questionnaire will help the trader to get the in depth data from customers. Customers will get enough scopes to share their ideas about the possibilities related with the new garment business in Camden area. Through the questionnaire customers will be able to share their satisfaction levels related with the garments market in Camden. With the help of questionnaire 100 selected customers will answer about the practicality of the market. It will provide a practical picture to the trader about the market. The answers of the questionnaire will be quantified which will help the trader to analyze the whole situation (Brace, 2013). As a qualitative method of data collection focus group interview will highly effective for the trader. The trader will interview two groups of people. Each group will have five members. In one group there will be all customers and in other group there will all shopkeepers related with garment business. With the help of focus group interview the trader will be able to measure the reactions of the customer closely related with the new start-up garment business. By interviewing the first group consisting of customers the sole trader will be able to find lots of new ideas that he will be able to incorporate into his new business. It will assist the trader to understand individual expectations as well as the group expectations of the customers from a new garment business. On the other hand by interviewing the other group consisting of businesspersons, the trader will be able to analyze profitability situation in that particular market. This qualitative method of data collection will help the trader to analyze demand and supply dynamics in that market (Kamberelis and Dimitriadis, 2013). This qualitative method of data collection will assist the trader to adjust its question according to the demand of the situation. By asking same questions in different way the trader will be able to clear any kind of confusion. All the answers given by the two groups will be noted down in diary. All those information will be analyzed after the completion of the interviews. All the above arguments and discussions are clearly indicating that combination of questionnaire method and focus group method will provide a multidimensional structure to the report. These two methods will be significantly suitable and absolutely perfect for the sole trader to conduct his research before setting up a new business of garments in Camden market. Importance of the research Previous business situations were significantly different than the current one. Modern day business situations are changing day by day. Business dynamics are far more complex than the previous situations. Under this highly complex and volatile business situations importance of research cannot be denied at all. The sole trader is trying to set up a new business in the Camden market. It is highly important for the trader to know the market in detail. Only extensive research can provide that in depth knowledge about the market. In Camden market there are lots existing garment businesses. It means the trader will have to face significant competitions in the market. The research will provide all the information related with the intensity of the competition. It will help the trader to gain desired competitive advantages in future. To set up the business the trader will have to invest significant amount of money. It is highly important for the trader to safe guard that money properly. Research will help the trader to protect the money. It will guide the entrepreneur to invest his money into the garment business in proper way. Now a day’s business has become more customers oriented. Consumer behaviour and their preferences are the most important factors for any business. In this aspect also market research will support the cause of the trader. By conducting the research the entrepreneur will be able to identify needs and demands of the customers of Camden area. It will assist the trader in terms of his strategy making for the new garment business. Identifying customer’s expectations from a new product is significantly important. The trader can achieve this with the help of market research. Selecting target group of customers is significantly important for the new business. Market research will provide lots of data which will be helpful for the trader to select the target customers. According to the data of Ontario Self Employment Benefits program, it is being observed that 80% of the businesses without any market research fail in future (McDonald and Hawkins, 2012). It means for achieving success in the new business market research is must from the side of the trader otherwise his garment business in Camden market will not test success. Market research has significant importance in terms of market analysis. It will help the trader to analyze the strength and weaknesses of the market. According to that the entrepreneur can design his product alignment. It will help the entrepreneur to create a unique image of his business in the Camden market. Trends of the garment market are significantly volatile in nature. Fashions and customer preferences related with cloths are changing in a fast pace. It is utterly important for the sole trader to become aware about all these factors. In this aspect also market research has great significances (Wenzel, 2012). All the above discussions are categorically indicating that market research has significant importance as far as the new business of garments is concerned. It will assist the sole trader immensely to set up his new business in Camden market. Conclusion Over the years with the changing business situations market research is gaining its importance remarkably. Here in this study the various importance of the market research have been analyzed critically. The report has clearly shown how the market research can be fruitful for a sole trader to set up his new business. During the course of this report primary research has been proposed to the entrepreneur. Extensive justifications also have been provided in the report for selecting primary research. The report has followed a smooth structure which will be helpful for the readers. According to the nature of the research subject a combinational approach has been taken for the purpose of data collection. The report has incorporated both quantitative and qualitative data collection. For quantitative purpose questionnaire and for qualitative purpose focus group interview. These two data collection methods have provided multidimensional outlook to the report and this will be highly profitable for the sole trader to set up his new garment business in Camden market. The study has categorically reinforced the importance of market research for setting up a new business. The report can act as a guiding star for the sole trader before setting up his new business. References Brace, I. 2013. Questionnaire Design: How to Plan, Structure and Write Survey Material for Effective Market Research. London: Kogan Page Publishers. ESOMAR. 2008. Market Research Handbook. New Jersey: John Wiley & Sons. Kamberelis, G. and Dimitriadis, G. 2013. Focus Groups: From Structured Interviews to Collective Conversations. New York: Routledge. McDonald, S. and Hawkins, D. 2012. Enterprise and Entrepreneurial Management. Harlow: Pearson. Pakroo, P. 2009. Starting & Building a Nonprofit: A Practical Guide. New York: Nolo. Wenzel, A. M. 2012. The Entrepreneurs Guide to Market Research. New York: ABC-CLIO. Read More