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Stitch Express is a business set up by Alex Dunne originally offering clothing alterations, dress restyling and repairs - Leaving Cert Business - Question 7 - 2016
Question 7
Stitch Express is a business set up by Alex Dunne originally offering clothing alterations, dress restyling and repairs. The business has grown and Alex believes it ... show full transcript
Worked Solution & Example Answer:Stitch Express is a business set up by Alex Dunne originally offering clothing alterations, dress restyling and repairs - Leaving Cert Business - Question 7 - 2016
Step 1
Outline the advantages and disadvantages of using secondary (desk) research techniques for collecting information on a market.
Answer
Advantages:
- Speed and Efficiency: Secondary research is typically quicker to conduct compared to primary research, saving valuable time for Alex as he updates his business strategies.
- Cost-Effective: It is generally less expensive since the data is already available and does not require the resources needed for primary research.
- Sequential Insights: By examining existing reports and publications, Stitch Express can gain insights into competitor strategies and consumer spending patterns.
Disadvantages:
- Accessibility to Competitors: The information obtained is also available to competitors, which may diminish Alex's competitive edge.
- Data Accuracy Issues: The accuracy of the information may be difficult to verify, and it may not entirely fit the specific needs of Stitch Express.
- Timing Concerns: Data might be outdated, leading to potential inaccuracies in decision-making.
Step 2
Illustrate one source of desk research and one source of field research that Stitch Express might use, giving a reason for your answer in each case.
Answer
Source of Desk Research:
- CSO Statistics: This will help Stitch Express understand demographic information such as age, sex, and spending habits in the area. It offers comparative insights against competitors, aiding Alex in assessing market opportunities.
Source of Field Research:
- Customer Surveys: Conducting surveys directly with customers can furnish detailed insights into consumer preferences and behaviors, enabling Alex to tailor his services effectively.
Step 3
Evaluate the effectiveness of sales promotion techniques Alex could consider to boost sales.
Answer
Customer Loyalty Programs:
- Effectiveness: Offering a loyalty program can incentivize repeat business as customers accumulate rewards, thus boosting long-term sales.
Special Offers:
- Effectiveness: Promotions like free gifts or discounts can attract both new and existing customers, enhancing sales during promotional periods.
Money Off Vouchers:
- Effectiveness: Distributing vouchers through local partnerships may successfully attract price-sensitive consumers, offering them a tangible reason to visit Stitch Express.
Step 4
Discuss the benefits of branding as a marketing tool for business, providing examples to support your answer.
Answer
Branding offers several advantages for Stitch Express, particularly in establishing a unique identity in a competitive market:
Brand Recognition:
- A strong brand simplifies consumer choice. For instance, recognizable brands can command customer loyalty and differentiate from competing services, such as established cleaning companies.
Premium Pricing:
- A well-established brand allows for premium pricing strategies. Customers are often willing to pay more for trusted names in business.
Target Market Segmentation:
- Brand allows tailoring services to specific market segments where Stitch Express can cater to different types of clients effectively.
By building a recognizable brand, Stitch Express can promote customer loyalty, thus enhancing overall sales.