This graph uses statistics collected from a questionnaire given to heathers target market (teenagers). As you can see from the graph most of her market spend between i?? 21-i?? 30 As we can see form the graph above most of Heathers target market but there jewellery from shops a smaller minority purchase there jewellery from online shops and there was nobody who said they bought there jewellery from market stalls. This graph shows us that most people do not go to the market and our previous graph lets us come to the conclusion that those who do go to the market do not purchase and jewellery.
My primary research has shown that 67% of people would rather purchase their jewellery from a shop instead of market stalls or online. Heathers business is only beginning therefore I think going online is not a good option. However, seeing as rival chain Claire’s doesn’t distribute online I think this may be a possible expansion of the business in the future. As heather will be making her jewellery on her own I don’t think she will be able to distribute enough stock to sell to a wholesaler this rules out distribution method 3.The price of an item is reduced this can be used to get rid of old stock sitting on store shelves. It can also be used to get rid of an older version of something when a newer version is coming out. Loss leaders Price of an item is lowered to a point where the shop will make little or no profit.
Many people will come to the shop to purchase the cheap item and a lot of these shoppers will also purchase something else on which the shop will make a profit. Added value This is often used in supermarkets- e. g. buy a bag of flour and get 30% extra.This can also be used in buy one get 1 free in which you are getting 100% extra. Gifts These are given when purchasing a product and often entice people to buy the product. E.
g. andrex puppy toy with toilet roll Point of sale This is when shops put items by the till or entrance its designed to attract the attention of the customer. Competition These are used to increase sales by for example saying that you have a chance of winning a holiday when buying a can of coke in reality your chances of winning the holiday are extremely slim.However the prize attracts more customers. Merchandising This is when your company promotes a certain brand or company for example a chocolate bar could promote the new harry potter film and change is packaging to match the film. After sales service This is when a company offers a guarantee such as find a better offer and well match it and take 10% off. Public relations This is when a company tries to get the public to know about their product. This can be achieved by sending stories to the local newspaper or you could have a celebrity promote your product.
Public relations cost the company a lot less than sales promotions. They could also try and talk about there product on the radio and TV. Sponsorship This is when a company uses the name of a more popular company to increase sales for example Barclay’s sponsors premier league. Many Internet stars make their money by being sponsored by a company which serves as advertising for the company. Advertisement Advertising is used to make the public, who are the potential consumers of the product, aware of the product and to make them want to purchase the product.
It is estimated that approximately in 2010 i?? 250 billion will be spent on advertising High priced jewellery stores advertise using consistency to their advantage. People who are looking for very expensive, luxury jewellery will want to show how much they are willing to spend on jewellery. Tiffany & Co is a perfect example of this they distribute all there jewellery in a small blue box. My primary research has shown that 70% of heathers target market would purchase an item from a more expensive store even if they could get the same item in a much cheaper store.