SMALL BUSINESS MARKET RESEARCH Essay Example | Topics and Well Written Essays - 2250 words

SMALL BUSINESS MARKET RESEARCH - Essay Example This report seeks to carry out a market research for a sole trader in the UK market. The product in contention is ‘Nomido Pizza’. This is a fast food product that will target university students and therefore will be located close to The University of Liverpool so that it serves the students both in and out of campus. With the growing concern about the health of young people, this product will be a pizza, just like the others but clearly made from natural and locally available food items. No additives and chemical combinations in the ingredients. The unique selling proposition (USP) will be â€Å"Delivery within, quality maintained to the natural taste†. This is a product that seeks to take consideration of the health status of young people and therefore there is bound to be a very high profile sales to the students given that they already have this knowledge of health and have dynamic minds subject to change on what they consume. 3.0 Considerable Market Factors 3 .1 Suitability and Risks This is a very suitable enterprise for a sole trader as the factors considered in establishing it constitute a positive trend. The location, raw materials, human resource, market demand, competition, laws, the technology and the expected returns are bound to be good. This venture is suitable for a single business owner because it is economical on all economic and human factors as listed before (Ashton, 2007, p. 21). Having considered the suitability of these factors, it is a viable cause of action as the likeliness that the students will capture health as opposed to quantity and junk is probable. Moreover, as a sole trader, there is always the chance one could get family members to help in the operation as well as employ a few workers to take care of the workload (OECD, 2000, p. 11). This food industry choice can be punctuated by the fact that there is knowledge of catering and hospitality which puts up an advantageous position in the operations of the busin ess. There is however several risks involved in sole trading. McDonald and Hawkins (2012) clearly indicated the sacrifice that should be put into becoming a sole trader. The major risk is the liability risk. Sometimes the operations may be led by over-ambition; this may create liabilities and if there will be inability to service these, personal assets may be taken to cover for this. The heavy burden of decision making is a risk that can never be overlooked. One wrong decision may lead to closure of the business given that the decision will be binding in all situations. Other risks involved could take the form of lacking time off and lack of prestige in the business (Cruz-Cunha & Varajao, 2010, p. 97). 3.2 Target Market Segment A combination of segmentation bases will be at work in this case. The choice of a university environment reflects their prevailing knowledge of the need to change from the current consumption methods to new better methods. The geographic lineation of this seg ment is because it is very populated and therefore the market is concentrated at a place as found out by Emmanuel (2006). Shah (2010) also noted that an urban place where population density is high increases demand for a product. The demography is consistent with the young people whose is that of