Expanding Business Opportunities in Croydon: A Market Research Analysis

The DPP Company needs to expand its business by launching products in multiple locations or expanding to other locations to be profitable. One potential location is Croydon, Southern Greater London, which is considered a growing hotspot for business opportunities due to its affordability and ongoing construction, making it an attractive destination for tourists.

Research Project
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Table of Contents
Table of Contents
Introduction................................................................................................................................3
LO 1: Understanding ways to formulate research specification................................................3
1.1 Formulating and recording possible research project outlines.........................................3
1.2 Identifying factors contributing to the process of research project selection...................4
1.3 Undertaking critical review of key references used for selecting research project..........5
1.4 Producing a research project specification.......................................................................6
1.5 Providing appropriate plan and procedures for the decided research specification.........7
LO 2: Implementation of the research project within agreed procedures and as per
specification...............................................................................................................................8
2.1 Matching resources to the research questions..................................................................8
2.2 Undertaking proposed research invitation in accordance to agreed specifications..........9
2.3 Recording and collating relevant data in appropriate manner.......................................10
LO 3: Evaluating research outcomes.......................................................................................11
3.1 Using appropriate research evaluation techniques.........................................................11
3.2 Interpreting and analysis of the results based on original research................................12
3.3 Recommendations and justifications based on research findings..................................12
Conclusion................................................................................................................................14
Reference List..........................................................................................................................15
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Introduction
The basic needs for businesses all across the globe is to conduct effective market
research that is capable of helping the business in achieving its desired targets. The
study attempts to delve into understanding the various market research techniques
that is used by the company DPP ltd in achieving its goals.
LO 1: Understanding ways to formulate research
specification
1.1 Formulating and recording possible research project outlines
According to Moorman et al. (2014), the project outlines are to be recorded and
formulated in a specific manner so that it can be used for the derivation of strategies
and policy changes in the company. Since DPP is a company that has customers in
the form of individuals and businesses, it becomes all the more important that the
formulation of research outline is made to ascertain the areas in which business
development can be made.
As the company deals in property industry, the need for market research becomes
pivotal for business profitability. The major impetus should be given in the deciding of
strategies which is possible when services of the company are assessed by the
services given by rival companies. Market research is beneficial in determining the
future course of action and in the case of DPP company, it must engage in research
purposes to estimate impact of competitors in the business. The major functionalities
of the business is to sell, buy and rent properties to potential customers. These
factors make the necessity to formulate and record research project outlines more
specifically to suit their operational activities in the business.
The necessity of deciding and formulating a research project allows the company to
establish a new product’s launch and market approachability. DPP deals in various
kinds of property dealings and formulation of a research project can help them
determine the target market along with the potential level of success that can be
attained by the company by launching a new product or service. Recording of the
research project outlines can clearly identify the level of changes that has to be
made in the business policies and operational strategies in order to make use of the
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information from external factors of business. The information received from the
macro factors will make it conducive for business to make decisions that will be
based on the market perspective and allow proper competitor analysis. This is
beneficial for DPP as it allows them to assess their strengths and weaknesses while
monitoring issues both internal and external in nature.
1.2 Identifying factors contributing to the process of research
project selection
As per Low (2014), project selection is an important aspect for every organisation to
carefully assess and select the best possible project idea that can be beneficial for
the company. As projects are considered to be mere suggestions for the company, it
helps in portraying the best idea that should be selected by keeping business
objectives into perspective. The selection of research projects are based on several
factors, one of them being the actual benefits that the company can achieve from the
business.
Tang (2013) opined that benefits can be segmented into various types that includes
economic aspects, social and cultural goals and biodiversity. The selection of
projects by DPP Company must ensure that the benefits are achieved on the
economic, social and biodiversity perspective. It is necessary that their research
project selection ensures proper economic returns to the company or else if the
company cannot raise back the funds, entire business operations will get hampered.
Another factor that assists in selection of research project is the feasibility of the
project. It is important that DPP must make sure of understanding the best strategy
that can help in achieving business goals. It can also be argued that the easiest of
research projects bring out massive benefits.
Since the operations of the company deals in property business, the constantly
fluctuating market along with prices of raw materials makes it important for selecting
the proper research project. The benefits factor is the most important factor as it
gives a wider view at other macro factors which may influence the performance of
the business in the long run. The economic returns and social implications of the
product will directly impact the sales and revenue of the company’s new products.
Zikmund et al. (2013) argued that a clear view of issues in the macro environment
can be used to suggest and identify key research projects.
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The feasibility factor only strengthens the notion that if the research project is not
deemed to be feasible enough in gathering necessary results for the company, the
project should not be selected as it can incur the company additional losses.
1.3 Undertaking critical review of key references used for selecting
research project
According to the Sethi (2014), the selection and completion of key research projects
exemplifies the manner in which business organisations use key market information
to essentially evaluate the target market so that business decision making can be
made in accordance. Considering the fact that DPP Company looks to launch a new
product and service in the business market, it can be justified that the key references
include research of macro environment, competitor’s analysis, gap analysis and
finally personnel evaluation. These are key factors that must be initiated to make the
business development plans in accordance to the objectives of the company.
It must be assessed whether the current business market is conducive for launching
a new product, in the case of DPP Company, the launch of a new property either on
lease or purchase must be looked upon carefully. Martin (2011) opined that
understanding all the social, economic, political and legal factors is essential to map
out strategies that can counter the impact of these factors. Competitor’s analysis is
an excellent way to understand level of competition and find out the key strengths
and weaknesses of the company by comparing its products with rivals. This analysis
directly helps in making a gap analysis that can be helpful in identifying key issues in
the management that can influence business decision making. Identifying gaps in
performance parameters and actual performance can clear areas where training and
development and use of new technological resources are to be made.
Klein (2013) argued that business decisions are capably assisted by undertaking a
gap analysis as understanding issues within the company can only help in making
strict decisions easier. The research project selection is also helped by the
evaluation process for personnel as it helps in measuring the performance
capabilities of employees and judge the level of execution they can undertake with
the implementation of a new research project. Personnel evaluation is vital in the
company so that HR can plan out policies and procedures and allocate necessary
resources to areas that need improvement.
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1.4 Producing a research project specification
The formulation of the research project specification allows in understanding the
intricate details of the project that includes products, target audience and other
factors that may be necessary for achieving the level of success as desired by the
company.
Product: The new product is a housing line of 2BHK cottages meant to serve as
holiday retreat homes.
Target Market: In the case of DPP Company’s new product, the target market that is
best suited for business is South-West London
Target Customers: The target customers that the company looks to achieve is
mostly individuals. Since the property is designed as a holiday home, the individuals
and mostly family oriented customers will make the bulk audience for the new
product.
Functions to be fulfilled: Providing top quality furnishing of the homes along with
good accommodation facilities is to be looked after. The main function is to create
customer satisfaction and this has to be done by constant monitoring of consumer
interests and needs.
Materials needed: Top class wooden furnishings are required for the floors of all
homes to provide a distinctive and niche look. The room will need latest and easy to
use bathroom fittings. It also requires the proper check of electrical fittings and
lighting. Complete furnished rooms will need use of high quality fabric for curtains
and bedroom. The implementation of routers for providing Wi-Fi facilities will also
need attention.
Assurance of Quality: The quality check procedures will be constantly made
during construction of the new property and continuous check of all the facilities and
features will be done to avoid any instances where the customers feel dissatisfied. A
very detailed examination is to be done before allowing sale of the property and it
must be mad sure that the consumer is provided all the necessary information about
the new home.
Timescale: Since the property line consists of 6 cottages, the entire duration for the
construction and full furnishing of the homes will require a total of 10 months. The
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first month is to be used for market research and designing process for the new
homes. After completion of the holiday homes, promotional activities are to be
conducted and that may take up to 3 weeks.
Cost: Each holiday home is to be provided on rent basis and the rent for each home
will amount to £135 for 2 people for each day and single individuals will require to
incur £95 for each day. The Wi-Fi function is free of charge but the food is
chargeable as per needs.
1.5 Providing appropriate plan and procedures for the decided
research specification
According to Arnold (2014), deciding upon a proper plan that can be used to execute
the project is necessary for the actual fulfilment of the goals of the company. In the
case of DPP Company, the research project specification clearly suggests the
launch of a new holiday home property in South-West London. Considering the
target location is very well suited for such homes due to the amount of population
and scenic view, the implementation of project is to be done at the earliest.
Moed (2015) argued that planning is the first step that helps in deciding the future
course of the research project. In the case of DPP Company, the first emphasis is to
be laid on the identification of market trends and consumer demands and
preferences. Selecting the location of the retreat homes is the next step as the close
proximity of the homes to the city will allow customers to easily access resources
and make mobility easier. Construction process is to be done on a strict contractual
basis and must be completed within the stipulated time period. The next step is to
generate customer interest and promotional mix is to be used aggressively in order
to span out to a wider audience base.
The use of print media, visual media and even social media is to be used for making
the product visible to as many people as possible across the world. A wide spread
publicity of the new home can garner interest among local audience and tourists as
well. This will enhance the audience base for the product.
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LO 2: Implementation of the research project within agreed
procedures and as per specification
2.1 Matching resources to the research questions
As per Tatsuoka and Lohnes (2013), conducting research process includes the
development of various research questions that can capably ascertain the detailed
demands of the general public. Research questions can allow DPP Company to
identify matters as per the needs of their new product.
The major research questions that DPP Company initiates in understanding public
behaviour includes:
 How competitive is the market demand for retreat homes?
 Is consumer preferences changing with time?
 What factors consumers find most attractive in retreat homes?
 What is the future of retreat homes in South-West London?
These questions need to be clarified in order to understand the benefits and
feasibility of launching the new product and services. The new retreat home is being
launched in a competitive market and these questions intricately assess each
variable very distinctly. Fry et al. (2013) argued that research questions form the
basis on which businesses can decide upon their marketing and promotional
strategies to reach out to a wider audience base. In order to assess the market
demand, a thorough market research and analysis is to be made to evaluate every
economic changes and changes in market trend.
Consumer feedback can be generated by conducting sample questionnaires
randomly in public retreat places so that their preferences can be evaluated. This will
be vital in understanding their needs and preferences. The questionnaires will clearly
help in highlighting the facilities that the consumers look in a retreat home and
accordingly these factors can be implanted in the new project during development
phase. This will clearly allow the creation of a new product that can suffice customer
needs and preferences.
A much wider research is to be conducted in South-West London so that the market
for property in this location can be evaluated and the consumer interests and
capabilities can be carefully assessed. If the company feels that the existing location
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has saturated itself in terms of property dealerships, it will be ideal to identify a
different location as market competition can easily eat up the profit share ratio for the
new product and no new product will want losses in the first year.
2.2 Undertaking proposed research invitation in accordance to
agreed specifications
The agreed research specifications made earlier, requires the attention and
consideration of research initiatives to carefully assess whether the fulfilment of the
specifications is possible in the given timespan. The research invitation should
include all the major and minor issues starting from identifying new product to the
last phase of promotional mix. Hofstede et al. (2014) argued that preparation of a
research invitation as per the specifications allows the company to focus on each
specification properly.
The research should initially begin with the identification of the kind of product that
will be both beneficial and feasible for the company to undertake. DPP Company
must make sure that the new product is decided after careful market analysis of the
rate of returns from such undertakings. This information is vital as it can help the
business in making decisions to move ahead with the plan. The ascertaining of the
target location and target market is imperative for the business to identify the best
location in terms of finance. The selected market is South-West London due to the
demand for holiday homes and the scarce population making it very attractive for
individual or family tourists and locals. Kothari (2014) opined that location selection is
extremely vital and proper research should be done so that all the pros and cons of
the location can be identified clearly.
The quality assurances of the new retreat homes must be of high priority as there is
no chance of messing with the quality standards as rival companies loom large in
being capable of capturing the market share easily. This quality service can also act
as a USP for the new product and help in the attainment of satisfied customers, thus
resulting in brand loyalty. Coming to the prices of the homes, it is to be understood
that the first year needs to be profitable enough so that sustainable business options
can be undertaken. Epstein and Tripodi (2014) argued that pricing strategy for a new
product is critical in deciding the outcome of the business. Thus, DPP Company
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must keep aggressive yet exciting prices and make the customers interested in their
products since it bears result in the revenue perspective.
2.3 Recording and collating relevant data in appropriate manner
According to Hines (2013), the importance in any research project is the inclusion of
methods to gather and collect relevant data. This use of collected data can
eventually lead to better decision making procedures. DPP Company is launching a
new product and the need for gathering and recording data daily is of prime
importance since the scope of missing out on vital data is possible. In order to gather
relevant information, the company should include the use of primary and secondary
sources of data so that it gives them theoretic assumptions of the trends of the
market. Moreover, the use of quantitative data gathering through survey
questionnaires can allow them to compare and evaluate the demands and
preferences of the general consumers.
The benefit of recording data lies in the fact that consumer details act as a feedback
that can be used specifically for making strict business decisions. There is no scope
for errors for DPP Company as they are investing a lot of money in the property. This
requires them to keep the market knowledge handy and responses of consumers
through surveys can help in identifying changes in policy making for the company.
Creswell (2013) argued that recording of data allows the company to contact the
relevant customer in future regarding newer products and services and it can make
the consumer feel wanted and it can influence their purchase decisions.
Manual and electronic recording of data must be done efficiently without any
manipulation or human errors. Any misleading information can affect the decision
making and hurt business prospects. DPP Company must make sure that the
selected staff are efficiently trained and developed so that they can handle latest
changes on machinery and technological aspects. Implementing latest technology
can make data transfer quick and relevant and it allows better communication in all
the levels of management. The recorded data acts as a guidance for making
valuable inputs and changing issues in the planning and development process. It can
also be used for future references and it can save time in devising newer strategy
formulation.
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LO 3: Evaluating research outcomes
3.1 Using appropriate research evaluation techniques
As per Hines (2013), research bears absolutely no value if there is no evaluation of
the conducted research to find out possible shortcomings and strengths. The use of
research evaluation helps in clarity of the decision making process and helps HR in
management of necessary resources. The various kinds of evaluation techniques
includes Formative evaluation and Summative evaluation. Each of these techniques
has their own distinct way of managing information and evaluating the progress of
the research.
The formative evaluation technique uses needs assessment, conceptualisation,
process evaluation and feasibility assessment. This can be used by DPP Company
to ascertain the need of the research and how the research can be implemented for
attaining the desired objectives in the shortest period of time using the least of
resources. The implementation evaluation can be also used to identify the rate of
success that is achieved buy the company in actually being able to implement the
desired strategies. It is beneficial in the business as it can allow a constant check on
the level of correctness in the plans and procedures. Process evaluation on the other
hand carefully scrutinises the various processes in the management and monitors
every use of plans, technology use and development processes. This helps in
understanding the true nature of the business performance.
Sethi (2014) argued that summative evaluation acts as a summary of the level of
success or failure that the company has been able to manage in dealing with the
business objectives. The use of this evaluation technique helps DPP Company to
understand the overall outcome of the policies and procedures and the manner in
which they are implemented. The impact of the use of plans and procedures and the
use of data is also evaluated to understand the impact that it has had on the
business. The biggest benefit of this evaluation technique is the fact that cost-
effectiveness can be analysed and the efficiency of the company can be carefully
measured. This evaluation technique can also help the company to conduct
secondary analysis by re-examining gathered data from surveys and helps in
attending new issues and problems.
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3.2 Interpreting and analysis of the results based on original
research
According to Martin (2011), the key benefits of the research process reflects on the
available findings so that it can be used efficiently in handling matters that need
attention. Research findings are very beneficial in order to understand the true
nature of the product’s success in the market. As per the research findings of DPP
Company, their duration in the business since 10 years makes them an established
brand with a vital knowledge about market trends and other factors. This is helpful in
suggesting the market growth and patterns of business that they have achieved in
last 10 years. Coming to the fact that they are launching a new product, it can be
stated that business dealings by the company is of top quality.
The fact that DPP Company has market research factors that are done on an
international basis, it becomes helpful for them to gather global data that can be
used for understanding preferences of the global audience. However, the research
findings that is evident by their thorough research suggests vital variables that could
make the new product successful. The selection of the target market was based on
the fact that South-West London constitutes of a scarce population of around 1.6
million people and is ideal for building housing property that can cater to local and
foreign consumers. The scarce population combined with a major disposable income
bracket was the reason behind fixing on the target market. The number of housing
homes in this vicinity is a sign that the lifestyle of people is very outgoing and leisure
loving. This is primarily important for the new product of DPP Company as they are
providing top class quality in their homes at very aggressive rates.
Klein (2013) argued that employment factors play a crucial role in the decision
making process for selecting a target location and target customers. The poor
employment factors can hurt business propositions as unemployment directly leads
to less income and thus the products can fail if the location selected has a high rate
of unemployed individuals.
3.3 Recommendations and justifications based on research
findings
The research findings relate to the important aspects of the company in terms of
location selection and target audience. Considering the information available from
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the research findings, it can suggested that certain aspects need improvement in
order for the company to actually be able to tackle the business dealings. Certain
recommendations can be made to improve the issues to make them friendly for the
business. Pricing strategy: The first and foremost recommendation that is to be
made is the creation of aggressive pricing strategy. They can use the
skimming pricing strategy since their product is providing high on value
services that can be charged at a premium price. Later the pricing can be
altered accordingly but it can initially help in gathering enough revenue that
can be sustainable for the business. Products will generate enough word of
mouth publicity and pricing can be reduced accordingly so that the business
proposition can be maintained profitably. This pricing strategy will help the
business conduct sustainable, if not profitable business in the first year. Location expansion: Since the only location that has been decided is
South-West London, it limits the opportunities of the business considerably.
Moreover, the business of housing in this part of the country is massive and
it attracts huge competition. This can hurt business for the first year. The
company must look to expand to other locations or launch products in
multiple locations in order to be profitable. The business could expand in
Croydon in Southern Greater London as it is deemed to be a growing
hotspot for business opportunities. Higher affordability of the individuals and
high level of ongoing construction bodes well for the business as it will
increasingly allow investment opportunities once it becomes a tourist
hotspot. Product involvement: The advantage that DPP Company has in the market
is its experience in the business for a decade. This has helped them
establish quality brands and has increased their portfolio of products. Tis can
be used as an advantage by them as they can link their new products with
the existing products and provide a feasible combination for the individuals
to avail exciting offers.
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Conclusion
The above study carefully addresses the situation that companies face during the
launch of a new product or services. The need to make proper research initiatives
and select a research project is vital for the success of the company in the business
environment.
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