Let’s Copy is a photocopy centre which provides several services related to printing and copying. It is a retail unit run by a sole trader.
All profits become my personal income but I do have the risk of unlimited liability. It will provide a same day printing service based on quality, speed and value for money.The capital investment needed for this business to start operating successfully is ï¿½15 000?1. I have ï¿½10 000 in my possession which I am willing to invest in this business.
I need a bank loan of ï¿½5 000 which is included in my business plan and cash flow to prove my solvency and collateral in the form of assets.The services provided by Let’s Copy are the following:Printing* Digitalisation* Plotting NEW TECH.* Print in B&W, colour and laser* Disk-to-print service* Printing/Stamping (e.g. onto t-shirts)* Posters* SketchesCopy/Photocopy* B&W, colour and laser photocopy* Reductions and amplifications* Creative design work* Finishinga) Plastic finishingb) Binding/covers-thermo-in plastic or metallic ringsOffice Convenience* We also have a variety of stationary items to satisfy the consumer’s needs. CD’s, disks and paper are also available.Let’s Copy is a business aiming to survive successfully by maximising its profits whilst providing a high quality service. In the short-term my aim is to, at least, achieve break-even; however in a long-term period I will be expecting profits.
In this business area one doesn’t gain much in unitary terms but when everything is put together the profit can be very large.Analysing the Market-CompetitionLet’s Copy and its headquarters are to be set up in Avenida da Republica. The size of the market in this area is fairly small. There are only two businesses providing the same kind of service in a range of 3km.?LET’S COPY? Competitor 1 – COPYCOLOR? Competitor 2 – PLANETI have investigated these two future competitors through direct investigation.
The competitors were carefully observed for a day.Competitor 1 is called COPYCOLOR and it is placed in Avenida da Liberdade(see map above). I have asked them their prices for the different services they provide. I have seen their machinery and I also took some photos of the outside of the shop. I also concluded that COPYCOLOR gets, in average, 65 customers per day and works with two architecture companies.Competitor 2 is called PLANET and it is placed inside a shopping centre called Amoreiras(see map above). I have also gathered information about their prices for photocopying and printing. The prices are relatively the same as competitor 1’s.
However, PLANET is a smaller store providing a shorter range of services. This store receives, in average, 70 customers per day but it doesn’t work with any outside company.Market ResearchMarketing my services is very important to ensure the success of my business. However, before I can market my services through advertising or promotion I must research the market in which I will work in. This will help me use the best advertising strategies to make my marketing campaign work successfully.I will not target certain market segments because photocopying and printing are both useful for young students and adult professional workers of any gender and even socio-economic groups. As you can see from the diagram below, no matter the age, income or job the services Let’s Copy provides target different market segments.Therefore my services will not be aimed at specific market segments.
However, I do have some services which are especially useful to architecture companies, Estate Agents and law offices, such as plotting, a new unique service provided by my business which is not very common in photocopy centres. But firstly, I must investigate if there is sufficient demand for this kind of service. In Avenida da Republica there are three architecture companies and five estate agents. I have kindly asked each company to fill in a questionnaire*2 with mainly closed questions. The results of this questionnaire were very good. The companies have shown great interest in the opening of a new photocopy centre, especially with the Plotting service, as I have predicted.However, as I am mostly aiming at the general public I carried out another survey but this time in the avenue by approaching the respondents . I questioned*3 all sorts of people who either lived or worked in that area, the respective ages ranged from 15 – 55 years old.
The questionnaire was made to 100 people that were walking in the street, 50 of them at around 10-11p.m. and another 50 at around 4-5p.m. The results were also most encouraging. It showed that a photocopy centre is well demanded in that area.I have mostly used Field research, as you can see, because I needed the collection of primary data collected especially for this particular business.
I have searched for reports, i.e. secondary data, or government statistics concerning these kinds of businesses but I haven’t found any relevant information. Therefore the desk research was quite minimal.Marketing Campaign-AdvertisingAs I have mentioned, marketing my services, advertising the photocopy centre, is essential for the business to succeed. Therefore promotion is one of the key factors in my marketing campaign. By promoting my services I am making customers aware that these services are available, I am making the customers aware of how Let’s Copy will serve their needs and I will try to persuade them to use my services.I will certainly advertise through media, however I must take into consideration that advertising through media is usually fairly expensive.
I have several options:Television and Radio are two very expensive media.Cost p/ 1 minute of advertisement*Televisonï¿½2 500Radioï¿½ 500* broadcasted in only one station (either T.V or Radio)I will not, therefore, use these. Magazines are seen nationally, not only in my area, therefore there is a small chance that the readers of these magazines happen to work or live in the area were the photocopy centre will be placed. Magazines will only be useful if there are specialist publications aimed at business or workers in this particular industry. However, magazines such as these do not exist and I will not pay for an advert on a magazine about cars or highlife, whose readers are not particularly interested in a photocopy centre in the midst of Lisbon.
National Newspapers will not be useful also as I am wasting money on an advert seen by millions of people throughout the country; I want it to be seen by people who either live or work in that area.NewspapersCost – B;W advertHalf PageFull pageNational – “O PUBLICO”ï¿½475ï¿½650Local – ” A CAPITAL”ï¿½250ï¿½520Therefore only local newspapers are ideal for this. Billboards on the streets, especially in Avenida da Republica, are also very helpful together with flyers being distributed throughout the streets close by.I have concluded that TV, Radio, National newspapers and magazines are too expensive and too wide range for a local business; therefore I will use the following types of media in my marketing campaign:- Local Newspapers- Posters/Billboards- FlyersLOCAL NEWSPAPERSI have chosen A CAPITAL, a local Lisbon newspaper, to put my advert on. It will cost me approx. ï¿½250 for a half-page advert for a week in this newspaper.
POSTERSThe posters are divided into two parts: the teasing and the Final. The teasing posters will be put up as soon as possible but the Finals will only be put up one week before the opening of the store In Avenida da Republica and its surroundings, I will place 3 posters in different billboards around that area, each billboard costing ï¿½500 per 15 days..Example of a Flyer or PosterFLYERSThese will be distributed in the area where Let’s Copy is placed and put in the mailbox of the main companies settled close to my store. There will be 2.000 copies produced costing ï¿½200 in total.MAILINGAn e-mail, introducing my business and its services, will be sent to all the neighbour companies, architect offices, law firms and estate agents. I chose these because, according to my market research, these are the offices that most use the type of service that Let’s Copy will be providing.
I want the name Let’s Copy to be well known both in the market and on the streets.Promotions and PricesThe market in which my services will be sold isn’t a niche market at all therefore I cannot use skimming (or creaming). I will therefore opt for competition based pricing. I have gathered several pricing lists from other photocopy centres and came up with my own prices which, in fact, are not very different from those of the competition. Therefore I am setting my prices at the market average. This avoids competition and it is a fairly safe strategy. However, I must say that some of my prices for certain services are higher than those of the competition.
But, as a consequence, I offer some services that others don’t, such as Plotting. I will also set out unique promotions which are stated below. I have done this in order to cover my costs (Fixed Costs + Variable costs) in the first months after the opening of the business. I will at least try to break-even until I start getting any profit, which I cannot expect to get it straight away after the opening of the business.I have made up my pricing list already, however I will also carry out the following promotions:- GRAND OPENING PROMOTION. On the first opening week, Let’s Copy will make all COLOUR photocopies the same price as a Black ; White photocopies.- By stamping, any A4, onto a t- shirt the client will get a plain white Let’s Copy t-shirt (special stamping t-shirt) FOR FREE. **Limited to the existing stock of t-shirts, approx.
250 t-shirts.- A customer wanting to photocopy more that 50 pages will get every 5th photocopy for free. P.S: This promotion isn’t available for double-sided photocopies.There will be a Let’s Copy client credit card, which all customers will be persuaded to obtain. This card will keep credits which are gained by the costumer each time he buys any product or service from the store.
Different services give different credits. Usually the most expensive services give more credits to the customer.For Example: 5 colour photocopies = 10 creditsLater, these credits can be exchanged for services or products from the store.For Example: – 50 credits = 5 free colour photocopies or 7 B&W photocopies- 150 credits = 1 t-shirt stamping for freeThere is a Let’s Copy customer catalogue which contains all information on the credit card and the on the services that can be exchanged for credits. There are various other services which can be exchanged for accumulated credits.I think these promotions plus all our advertising will appeal clients to our photocopy centre. Our aim, as it has already been mention, is to provide a same day printing service based on quality, speed and value for money.AppendixAppendix 1Two sample questions, with its respective answers, from the questionnaire sent to certain companies placed in the Avenida da Republica.If a photocopy centre was available in this area, would your company require its services or possibly even make a direct contract with the photocopy centre for being a repeat customer?A new technology of Plotting is going to be available in this photocopy centre, would this service be of any use to your company?Appendix 2Two sample questions from the survey carried out on the Avenida da Republica.Do you think a photocopy centre in this avenue is necessary?If a photocopy centre was to open in this area, do you think you would use it often?Bibliography- GCSE Business Studies Book, by Alain Anderton.