Market Mapping Today you will know what Market Mapping and small budget research is. You will understand why they are used and how they are a benefit to businesses and entrepeneurs. You will then apply this to the Soft Drinks and Clothing markets.

Small budget research… Even before using market research good entrepreneurs take time to gain an understanding of the market. They can do this by conducting small budget research. Small budget research may also point towards identifying business opportunities. Industry magazines such as the Grocer are useful in identifying consumer market places. (i.e on 04/08/07 issue highlighted that the sales of Dark Chocolate had risen by 12% to £67 million a year.) This is small budget research that would be useful to a small chocolate maker make whop is looking to expand beyond the usually milk chocolate offering.

Small budget research… There are ways of conducting small based research that save money. For example if you wanted to open a Subway Franchise in Southampton you could: Walk around the city, identifying / mapping where the other sandwich bars are located. (geographical mapping) While conducting the geographical mapping you can obtain details on the competition such as their prices, product range, discounts and deals they offer You could arrange to shadow another franchisee at another Subway in a near by town/city. Use the detail from above to product a market map to identify opportunities for a new Subway.

Market Mapping… A market Map is a grid that measures two different aspects of the brands or businesses within a market. For example in the chocolate market the key features on a market map could include… Luxury V’s Everyday eating (i.e. Flake V’s Dairy Milk) Filling V’s Light (i.e. Snickers V’s Maltessers)

Example Market Mapping: The Car Market High Price Low Quality High Quality Low Price

Mens Sports Fashion Shoe: No of Options V’s Average Selling Price

The Purpose of Market Mapping… The idea of market Mapping is to identify gaps in the market, to show where a sector is overcrowded and to stop the producer from becoming over-reliant on one sector. Gaps can also provide entrepreneurs with the opportunity to embark on a new business venture. Mars is very strong in the filling, every day sectors with their Twix and Mars Bars, however people are now concerned about healthy eating and the everyday day chocolate eating sector is in decline!

So what did Mars do??? In the 1990’s Mars launched the Celebrations !!! This offers their customers chocolate on special occasions and allowed Mars to enter a new sector. They identified a gap in the market and seized this opportunity!

Market Mapping… For most businesses the difficulty is identify the key factors to use in the mapping exercise. These might include… High Price / Low Price For the Young / For the Old Modern / Traditional For Men / For Women

Market Mapping… Companies will decide upon the ‘right’ market factors after careful market research. Talking to customers may show that young and old have similar views on chocolate where as men may think differently. Market mapping is also very useful for a new small business, for example.. A new building services may look through the yellow pages to discover lots of emergency plumbers but few offering luxury bathrooms suites.

Market Mapping… However gaps are sometimes there for a reason!! This could be because there is no effective demand locally. Businesses need to understand why there is a gap BEFORE they decide create a product within it! So further market research is needed! And business must carry this out.

Task 1: Exam Style Questions… In your books complete the following questions.. What is market mapping? (2 marks) Suggest HOW and WHY businesses use market mapping? (6 marks) Discuss why some maps have gaps. (4 marks) Why is it important for a business to conduct market research along slide their market maps? (4 marks) Discuss the importance of small budget research to new entrepreneurs. (6 marks) Using the key factors you suggested create a market map for the UK clothing market. (10 marks) From your market map identify TWO possible market opportunities for a new business entering the market. (4 marks) 36 marks – 25 minutes

Task 2: The Soft Drinks Market Using the following Key factors you are to create a Market Map for the Soft Drinks Market. Plot the following brand into your map. Robinson's Barley Water Lilt Tonic Water Value Lemonade Coca-Cola Pepsi Lucozade Diet Coke Sunny D Actimel Innocent Smoothes Red Bull Expensive Cheaper Traditional Modern / Trendy 1. Explain 2 benefits of a soft drinks firm might gain from studying your market map. (4 marks) What conclusions might Coca-Cola draw from your market map? (4 marks) 3. Discuss how a company might deal with a brand such as Lucozade that is suffering from a fall in sales. (8 marks)

In your books complete the following case studies and questions… Task 3: Case Studies… In your books complete the following case studies and questions… B1: Cara Phelps Page 11: Read the case study and complete questions 1-3. Write in FULL sentences at all times. (25 marks – 25 minutes) A: Revision Questions Page 11: Complete questions 1-8. (30 marks – 30 minutes)