Unit 2: Entrepreneurship Internal Assessment (IA)

Sample – MARKET RESEARCH SECTION

Population and Sample

 Who will be surveyed or the sampling unit. This is the target population.
 How many persons in the target market should be surveyed or the sample size.
 How should the researcher choose the respondent or the representative sample.
This is the sampling procedure. This entails choosing between probability samplings.
Probability sampling – these deals with methods of sampling that utilizes ‘random selection’.
This ensures that the procedure is set up to ensure that all units of the target population have
an equal opportunity of being selected. This includes:

(a) simple random sampling

(b) stratified random sampling

Methodology

This includes reviewing published data (secondary data) and conducting a survey in a
selected target market segment (primary data). This entail a detailed explanation of how
the questionnaire was administered. What method was used example face to face
interviews, email (Google Forms) or telephone interview; use of social media (WhatsApp)
to conduct the survey.

The methodology that the researcher used to get relevant information was questionnaires, and the

information gathered was very satisfying to the research objectives. A questionnaire is a research

instrument consisting of a series of questions for the purpose of gathering information from

respondents.

The questions that were asked in the questionnaires were based on the quality of the product, the

size, pricing of the product, the affordability and if there was any competition. Some of the

questionnaires were handed out face to face in the community on February 12, 2021 and was

collected on February 14, 2021, while the rest were displayed online on the business Instagram

page requesting responses from the target group on February 12, 2021. The reason for

questionnaires was so that a large number of information could be acquired from a large number

of people in a short time. Also, the information was easy to analyse than any other form of

research.

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 The process of collecting the information on February 14, 2021, both online (Instagram) and

face to face was a bit challenging since some persons who answered online had internet

problems, so the questions were handed in late while the face to face method most of the

respondents did not interpret the questions properly. Although there were some challenges

issuing and collecting questionnaires, all questionnaires were collected with all questions

answered.

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 Findings

Gender

40%
Females
Males
60%

Fig 1.1

The figure above is a doughnut showing the gender of residents from the Palmers Cross

community. A majority 60% of the respondents are females while a minority 40% is males.

What is your age range?

15%
5%

18-24
25-34
55%
35-44
45 and over

35%

Fig1.2
Figure 1.1 is a pie chart showing the responses from residents of the Palmers Cross community

specifically on their age range. A majority of 55% of the respondents chose 18-24, 35% chose

25-34, 15% chose 35-44, and 5% chose 45 and over for their age.

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 Do you use lip balm?
60%
55%
50%

40%
45%
30%

20%

10%

0%

Yes
No

Fig1.3

Figure 1.3 is a line graph showing the responses from residents of the Palmers Cross community

on whether they use lip balm or don’t use it. A majority 55% of the respondents use lip balm

while minority 45% does not uses it.

How often do you use lip balm?

20%

Everyday
40% During the week
Only when I am going out
One time for the week
15%

25%

Fig1.4

The diagram above is a doughnut graph showing the responses as to how much do the residence

of the Palmers Cross community use lip balm, 40% of the respondents said that they use lip balm

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everyday, 25% said that they use it during the week, 20% said that they only use it when they are

going out and a minority of 15% use it one time for the week.

Where do you get information from about

newly arrived products?
40%
35%
30%
25%
20%
15%
10% 40%
20% 30%
5%10%
0%
From my mother
My best friend
No one, I do my own
research On social media

Fig1.5

Figure 1.5 is a surface graph showing the responses from residence of the Palmers Cross

community on where they get their information from about newly products. A minority of 10%

of the respondents said they get information from their mother, 20% respondence said my best

friend, 30% said that no one, I do my own research, while a majority 40% of the respondence

said on social media.

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 Analysis of results

Product Characteristics

Product characteristics includes physical features,

added benefits or services, quality and Uniqueness of offering

The Applelipscious is a new and improved lip balm brand which similar to lipstick with a

purpose to prevent lip dryness and protect against adverse environmental factors. This makes you

feel like you are wearing a million dollar.

The Applelipscious lip balm is made up of all natural ingredients, essential oils, and organic

oils which gives scent, moisture and includes nutrients like Vitamin A and C. These ingredients

are: Lavender oil, Beeswax, Olive oil and Coconut oil.

Lavender oil is one that has a calming scent on the lips. It has effects that helps treat peeling

and cracking of the lips. Beeswax contains natural moisturizers that lock in moisture from the air

ad help keep the skin looking firm and plump. Olive oil is a great lip care product because of its

abundance of vitamin A, C, and E. Coconut oil is miracle oil with great moisturizing and

soothing ability and contains vitamins A and C, antioxidants, and essential fatty acids.

The Applelipscious lip balm has the ingredients and nutrients to retain strong healthy lips.

Market Analysis

Market Analysis include market share, market size, opportunities for growth and threats

One thing is certain; people will always have a crack or dry outburst on their lips therefore a lip

balm will always be needed for healing. The market size is high based on data presented in figure

1.3, where 55% of the market is shared among different brands, on the other hand the remaining

45% consist of persons who do not use lip balm for lack of trust in lip products.

Lately persons have become more aware of looking after their lips in other words they take the

necessary safety measure to obtain healthy lips by using the product with the right ingredients in

lip balm that they purchase.

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Consequently, it can be seen that persons within the community Palmers Cross, Clarendon are

interested in purchasing lip products (lip balm). As a result, Applelipscious observes where it

must provide abundant amount of lip balm to satisfy its approaching customers.

Applelipscious perceives impending challenges by compelling the 45% who are not interested in

lip products particularly lip balm. Moreover, other businesses with lip products may want to

adopt the same business model as mine.

Sales Analysis

Sales Analysis include: - potentially yearly sales, sales trends, potential for increase in annual sales

In year one Applelipscious hope to attract 150 customers. The number of customers who

purchase lip balm for $500 is 90%. Therefore, if the lip balm is sold for $500, subsequently

Applelipscious is estimated to have sales of $324,000 annually. This result is based on the

purchase of three lip balm per month per customer.

Figure 1.4 on page 12 relate to the question ‘how often they use lip balm’. Majority of the

respondents 40% said everyday, while the minority 25% said during the week, 15% said only

when they are going out and 20% said one time for the week. This tells that if one person uses lip

balm everyday then he or she will run out of lip balm more rapidly, resulting in them purchasing

between 6-9 lip balm which will triple the business yearly sales.

Customer Analysis

Customer analysis include:- who are your venture’s target customers, breakdown of
demographics, breakdown of psychographics, how can customer needs be met.

Applelipscious is very considerate when it comes on to the needs of its customers. Looking at

the information presented in figure 1.1, it is observed that females are mostly interested in using

lip balm in contrast to males. Figure 1.2 showed the community is made up of mostly young

working adults which is 50% within the age group of 18 to24 years old. This tells that young

working adults are mostly interested in intensifying their lips which depicts the lifestyles of the

customers. Applelipscious will work hard to make the best lip balm to intensify its customer’s

lips.

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Promotion and Advertising

Promotion and Advertising include: -

how best to communicate with customers that is channels example electronic.
* types of short-term sales promotions *Public relations

The best ways to promote and advertise the product is by using posters and social media. Using

these methods of advertising will help the business to grab its supposed customers. Moreover,

people will know the quality of the product and rationalize if the product is good or not. Social

media will help to promote the business by showing the different colours, size and shape of the

lip balm. 40% of the respondents stated social media and 30% said they do their own research

from figure 1.5 on page 12. In this case social media and posters will be used to promote and

advertise this business.

In the beginning of the business, Instagram and Facebook will be used to advertise the

Applelipscious lip balm. In this, the business will enhance its market in the lip balm industry.

Pricing Strategy

Pricing strategy includes: - types of pricing strategy

* suggested retail price *how and when will prices be adjusted

* policy on bundling, price flexibility and price discrimination

The Applelipscious lip balm is priced at $500 which is very reasonable and will provide a profit

for the business.

Persons can go on the business Instagram page @Applelpipscious_jamaica where you get a 5%

discount whenever you purchase 3 lip balms along with a token.

For regular customers there will be a giveaway. This business caters not only for individuals but

also for other business who would like to purchase lip balm thus the business sells in bundles.

Each time a company purchase from Applelipscious a 10% discount is given for purchases made

every two weeks in a month.

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Competition

Competition include:- competitors, competitors’ market share, competitor’s SWOT analysis and
competitive advantage and your SWOT analysis and competitive advantage

The Applelipscious brand has numerous amounts of competition some which are fragmented

while others are well concentrated and this result in a combination. The business competitor

brands are: Blistex, Carmex, and Vaseline. These brands currently own majority of the market

and they are the foundation brands. Their product has the novelty which stands out; their strength

is that they have been in position for a long time. Their weakness is, they all use the same

ingredients the same way. Their products are expensive and their promotion only covers the

television which is a disadvantage for their business.

Applelipscious will produce good quality lip balm at affordable prices and a wide variety of

colour, size, and shape. Applelipscious is on the famous social media (Instagram) which is good

for advertisement.

Applelipscious competitive edge is the new and improved lip balm which replaces dry crack lips

with soft, smooth and moisturised lips.

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 Recommendations

Recommendations should be realistic and actionable and informed by the findings.

The following are solutions on how to better improve the operations of Applelipscious business:

1. On Saturdays, the business could set up a boot and advertise the product in the

community.

2. Create a variety of lip balm so people will be able to sample it which will allow persons

to give feedback about it.

3. Print flyers, business cards and posters to issue out to community members, friends and

people outside the community which will draw attention to the product.

Conclusion

Conclusion should be based on the findings and objectives and should include a brief
statement of what the research was about and how it is linked to the findings.

Lip products will always be in demand to shrink dry crack lips. The business will do a continued

promoting and advertising method through different medium and produce a harmonized product

fitting for both genders. The price of the product will remain as inexpensive as possible to satisfy

my customers. Although the business aims to make a profit, I will ensure to carefully adjust

prices so customers can afford the product. Customers will show appreciation for the reasonable

price of the product. The business has great advantages to earn revenue of $324,000 yearly

moreover with social media the most effective and cheapest way of promoting my product which

is important to the business. In conclusion, this research has helped the business in providing

information about proper development and growth of Applelipscious, also the appropriate

marketing strategies.

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 Bibliography

Coleman, B (2021). Random Sampling. Retrieved from

https://m.economictimes.com/definition/randomsampling/amp

Hart, Meredith (2021). The Straightforward Guide to Value Chain Analysis (2021). Retrieved

from https://blog.hubspot.com

McLeod, S (2018). Research Methods. Retrieved from

https://www.simplypsychology.org/questionnaires.html

Questionnaire

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Instruction: The following questionnaire is a data collection instrument to be used in my

Entrepreneurship Internal Assessment which is a crucial part of my Cape examination. The

questionnaire does not require your name so as to ensure confidentiality. You are required to

answer all the following questions by circling A, B, C or D. Please note that there is no right nor

wrong answer. The following questions should be filled out and will be collected within two

days. Thank you for your cooperation.

1. Gender

A) Female B) Male

2. What is your age range?

A) 18-24

B) 25-34

C) 35-44

D) 45 and over

3. Which type of product do you mostly use ?

A) Hair products

B) Lip products

C) Skin products

D) All of the above

4. Do you use lip balm?

A) Yes B) No

5. How often do you use lip balm?

A) Everyday

B) During the week

C) Only when I am going out

D) One time for the week

6. What type of ingredients would you prefer to use on your lips?

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A) Strictly natural ingredients

B) Organic oil

C) It does not matter as long as it does not have an allergic reaction

D) Essential oil

7. When you go out to purchase your lip product what do you look at?

A) I look at the cost

B) I look at the colour and size

C) I check the quality of it

D) I check on the brand

8. What is your income level?

A) Low

B) High

C) Average

D) Poor

9. How much money are you making monthly?

A) $20,000 - $25,000

B) $30,000 - $35,000

C) $40,000 - $45,000

D) $50,000 and over

10. How much money do you spend on purchasing lip products?

A) $200 - $250

B) $300 - $350

C) $400 - $450

D) $500

11. When my new lip balm is out would you purchase it?

A) Yes, I would try it

B) Maybe, depending on how it looks

C) Sure

D) No

12. Where do you get information from about newly arrived products?

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A) From my mother

B) My best friend

C) No one, I do my own research

D) On social media

13. How do you rather to purchase your lip products?

A) Online base

B) On delivery

C) It does not really matter as long as I get it

D) In shops

14. When shopping for your lip products, do you

A) purchase it more than once

B) Always purchase it at the same place

C) purchase the product based on the label of it

D) Try other shops with new lip products

15) What lip balm brand do you usually purchase?

A) Carmax

B) Blistex

C) Chapstick

D) Vaseline

16) Why do you purchase this brand ?

A) It is better than the others

B) It gives a more everlasting feeling on my lip

C) When I use it, I feel more comfortable communicating

D) The quality is very strong

17) Are there any business within this community that sells lip balm?

A) Yes B) No

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