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This is a Marketing and Business Plan Question - Junior Cycle Business Studies - Question 3 - 2017
Question 3
This is a Marketing and Business Plan Question. Answer all parts of this question: (A) (i) State, with examples, two types of market research on the sheet supplied... show full transcript
Worked Solution & Example Answer:This is a Marketing and Business Plan Question - Junior Cycle Business Studies - Question 3 - 2017
Step 1
State, with examples, two types of market research on the sheet supplied with this paper.
Answer
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Desk Research: This involves gathering existing information from various sources such as government publications, magazines, or the internet. For example, conducting a survey of market trends from online articles can yield valuable insights without the need for primary studies.
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Field Research: This method involves collecting data directly from sources through surveys, questionnaires, or direct observation. An example would be collecting consumer feedback in person about a new paint product to understand market needs better.
Step 2
Explain, with an example, the term ‘target market’ on the sheet supplied with this paper.
Answer
A target market refers to a specific group of consumers that a business aims to reach with its products or services. For instance, for JMP PAINT Ltd, the target market could include homeowners in need of exterior house paint. This group might be defined further, focusing on those interested in high-quality, long-lasting paint suitable for their homes.
Step 3
Using an example from the above information, explain the term 'unique selling point' (USP) on the sheet supplied with this paper.
Answer
A unique selling point (USP) is a feature that differentiates a product from its competitors. In the context of JMP PAINT Ltd, their USP is that the exterior house paint they produce is guaranteed to last for six years, providing homeowners with reliable durability compared to competing products.
Step 4
List three sales promotion methods JMP PAINT Ltd could use to increase sales.
Answer
- Television Advertising: Promote the paint products through commercials, showcasing their quality and longevity to reach a wider audience.
- Web Site Promotion: Use their website to offer special discounts or limited-time offers on their product range to attract customers.
- In-Store Demonstrations: Host events where customers can see the paint applied on sample walls, highlighting its effectiveness and quality.
Step 5
Calculate the amount that JMP PAINT Ltd will have to borrow.
Answer
To calculate the amount JMP PAINT Ltd needs to borrow, we first sum up the required funding:
- Total Required: €800,000
- Investment from Directors: €150,000 each x 3 = €450,000
- Start-Up Grant: €160,000
Calculating the total cash available:
- Total cash available = €450,000 + €160,000 = €610,000
Thus, the amount needed to borrow:
- Amount to Borrow = Total Required - Total Cash Available = €800,000 - €610,000 = €190,000.
Step 6
Complete, in full, the remainder of the Business Plan dated 13 June 2017 on the Business Plan supplied with this paper.
Answer
This part of the business plan would include sections such as:
- Company Overview: Detail the business model and the team structure.
- Market Analysis: Analyze the target market and competitor landscape.
- Operational Plan: Outline production processes and resource needs.
- Financial Projections: Include sales forecasts, profit projections, and a break-even analysis.
- Funding Request: Clearly state the funding needed and how it will be utilized. This section should also specify repayment plans for any loans taken.