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... open door). Secondary data is basically information that already exists in some form or another. The secondary data that I will use is to research the services of rival driving schools. I will do this by using the local business directory to obtain information such as; &# 61623; The services that are on offer &# 61623; The promotional methods that are employed to attract customers &# 61623; The prices of lessons per hour of other firms The main advantage of using secondary data is that it already exists, therefore it can be obtained at little or no cost and can be less time consuming.
Market Segmentation is breaking a market down into sub groups which share similar characteristics. There are a number of different methods that a company can use to segment the market such as age, sex, level of education, social class, religion, ethnic groups and geography. I can segment the market into a number of sub groups as mentioned above. In context to USM, I can segment the market in accordance to: &# 61623; Age. In context to USM I can segment the market by age as research shows that 17 19 year olds begin to learn how to drive. The advantage of this is that I can specifically concentrate on what this segments needs are. &# 61623; Sex.
In context to USM, I am able to segment the market by sex as my research shows that female clients prefer to be taught by females and males prefer to be taught by males. &# 61623; Ethnic groups. In, context to USM, the market can be segmented into ethnic groups as my research shows that there is a demand for driving lessons to be taught in different languages. &# 61623; Geographical areas. In context to USM, Mr. Anand has to segment the market to the local areas surrounding Southall, as it would not be feasible to concentrate on a market that you are unable to reach, in physical terms.
Niche marketing involves a business aiming a product at a particular segment of a market. For example firms such as the Body Shop, Sock Shop and Tie Rack have all managed to exploit particular markets. In context to USM, this form of marketing can be beneficial as if USM are able to discover a niche in the market they can avoid competition (in he short run) and exploit that market to gain customers therefor profits. Also, by targeting specific market segments, firms can focus on particular needs of the consumers in these segments.
This can enable USM to gain a competitive advantage over rival firms. However, If USM mange to exploit this niche market successfully, they may face huge competition in the future and may be unable to offer these services due to high competition therefore may lose clientele. This is because niche markets tend to be small therefor are often unable to sustain three or four competing firms. The research that was carried out showed that the way of attracting new customers is to find a competitive edge over their competition or start to offer a new or a wider service. From the results of my questionnaire (refer to the appendix), I have drawn many conclusions. The questionnaire enabled me to discover many niches in the market that USM may like to consider to follow through in order to attract customers.
USM could attract customers in several ways. The obvious answer is to increase the amount of time and money spent on promoting the business. However, exactly how to promote this business and exactly how much to spend is a very difficult problem. 1. The results of the questionnaire displayed that there are two-market niches that USM could aim itself at. Niche marketing involves a business aiming a particular service or product at a particular segment of the market. For example, the companies Sock Shop or Tie Rack both concentrate on exploiting niche markets.
In context to USM, This is an ideal technique for them as smaller firms such as USM are often able to sell to niche markets, which have been overlooked by other firms. One possible direction that USM could move towards is to introduce automatic transmission tuition in addition to its current manual tuition. USM can lean in to this venture in a number of ways: Firstly, USM could contract out all of the automatic lessons to another person and take a commission from the sales. Mr. Anand could also purchase an automatic car and teach automatic transmission himself as he is already qualified by the Transport Department to do so. The second niche in the market is that many people would prefer to be taught in other languages in addition to English such as Punjabi, Urdu and Hindi.
This niche could easily be fulfilled as Mr. Anand already has the ability to speak English, Hindi and Punjabi with a little experience with the language Urdu. 2. To reduce risks USM can also consider diversifying into new markets. Diversifying into new markets and new services means that if one project fails, success in others can keep a firm going. Thus USM could start teaching other vehicles such as the motorbike, van, coach, etc, However, This would require Mr. Anand to become qualified to teach all of these vehicles (as at the moment he only holds a driving tuition license to teach manual / automatic transmission cars).
This would mean that Mr. Anand would have to take the necessary examinations. He could also, once again, recruit a partner so that one instructor teaches, for example Car, and Coaches where as the other teaches motorbike and van. 3. Another method could be used is to employ more flexible working patterns to teach people how to drive. From the results from the questionnaires, it was made clear that there is a demand for driving tuition in the evening time.
This means that USM could introduce Evening Tuition. This would mean that USM would be tapping into a new market whereby they offer their services to people who cannot learn during the daytime. This service could be offered between the times of 5. 00 pm to 11. 00 pm in addition to daytime tuition. However, this would result in Mr. Anand working longer hours, which may result in him having to finding a new partner. 4. USM could also introduce extra revision and workshops for theory examinations.
This would be USMs unique selling point. A unique selling point is a feature of a product or service that differentiates it from others and persuades people to buy it. Thus extra tuition for theory examinations is an ideal venture to go in to as no other driving tuition firms do not offer this service. 5. In addition, USM can solely concentrate on a particular target market.
USM could concentrate on youths aged between 16 to 19, as according to my research, this is when people begin to learn how to drive. USM could reach this target market by advertising at local Colleges, for example in College magazines or Sixth Form notice boards. Advertising is a form of promotion. Promotion is an attempt to retain and obtain customers by drawing attention to a firm or its products. 6. USM could also use sales promotion to attract clientele. Sales promotions are the incentives offered to customers to encourage them to buy goods and services.
This type of promotion is mainly used to enhance sales in the short term. In context to USM, they could introduce block bookings whereby if customers books 10 lessons in advanced the customer can have 2 lessons free of charge. They could also use sales promotion by issuing cut out coupons in advertisements whereby the first lesson is free of charge. To boost sales even further, USM could also advertise in local Youth clubs such as the Visions Youth Club which is located close to where USM operate from. They could also boost sales by having their current customers refer their friends and family. In return, USM could give lessons to them at a discounted price.
USM could also employ the technique of offering a free gift when a client books around five lessons together. This would increase the number of clientele as this may attract people to learn with USM. Due to Mrs. Anand having a back injury, the feasibility of finding a new female partner to attract the female market is satisfactory. After detailed discussion with Mr. Anand about the possible solutions mentioned above, a number of implications were drawn up.
The discussion had resulted in that a mixture of the proposed solutions to be used. It was decided that solution 5 in conjunction with 6 was the correct solution for USM. This is because firstly, the youth target market is easiest to target. Secondly, Mr. Anand has also been teaching for approximately 16 years and it was decided that the traditional services / practices that USM offer are not lost or affected as they may lose further clientele. However, Mr.
Anand was also interested in introducing automatic transmission tuition. This is because Mr. Anand is able to get hold of an automatic vehicle for a discount price. Bibliography:
Free research essays on topics related to: free of charge, automatic transmission, attract customers, unique selling, ethnic groups
Research essay sample on Free Of Charge Automatic Transmission
