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Report on Market Research for the Computer Hardware Plc.-2009 Submitted To Mr.

Dan Sookun (Lecturer) Icon College of Technology and Management Submitted By Mashukur Rahman Id. 4098 Mashukur Rahman Id: 4098 Business Decision Making Page no. 1 of 26

Introduction For a business to be successful, it is vital to know the market and customers pr ofile. This can be done by an intensive research through various methods of data collection which will help to making decision about a new venture. Market resea rch can help create a business plan, launch a new product or service, fine tune existing products and services, expand into new markets etc. It can be used to d etermine which portion of the population will purchase the product/service, base d on variables like age, gender, location and income level. It can be found out what market characteristics your target market has. With market research compani es can learn more about current and potential customers. The purpose of market r esearch is to help companies make better business decisions about the developmen t and marketing of new products. Market research may also aid to the marketers t o understand the customer and customer behaviour and also help to know how and w hich type of product has been satisfies the customers. According to Kotler and e t al (2008)-(Pg-333),Marketing research is the systematic design, collection, ana lyse and reporting of data relevant to a specific marketing situation facing on organisation. Mashukur Rahman Id: 4098 Business Decision Making Page no. 2 of 26

Primary Data Primary data is specific information that is collected directly by the person wh o analyse the data and information also doing research. Primary data are collect ed for the first time. This data has not been published before collection. Accor ding to Avasarikar et al (2007)-(Pg-3.8) It is the data collected for a specific purpose or for a particular objectives. It is customised according the requireme nts of the researcher. It exclusively focuses on current research problem. As per Kotler and et al (2008)-(Pg-334), Primary data is a information collected for th e specific purpose at hand. Purpose and advantages of Primary data Basic and specific information By using primary data marketers can get basic and specific information about the product. Accuracy Primary data is more accurate because it is directly collected from the population. Update information By usin g primary data researcher may get the latest and up-to-date information about th e product and services and also its environment. Unbiased data Primary data coll ected and processing by researcher. Therefore, the information might be unbiased . Secondary data Secondary data is data that is already collected, processed and published by oth er person for the particular reason. It is less expensive than the primary data. This data also can be collected quickly and be collected from T.V, radio, magaz ine, books, literature review etc. Mashukur Rahman Id: 4098 Business Decision Ma king Page no. 3 of 26

As per Avasarikar and et al (2007)-(Page-3.8) stated that, Secondary is collected earlier for some purpose other than the purpose of the present research study. T hey also said that, Secondary data as a matter of fact, provides fundamental and rich insights into research study. As per Kotler and et al (2008)-(Pg-334), Second ary data is a information that already exists somewhere, having been collected f or another purpose. Sources of primary data As a researcher and observer all primary data were collected by muself. For coll ecting the primary data used two methods Questionnaire Interviews Questionnaire Questionnaire is one of the important observing, analysing and research instrume nt for use the market research. Generally, questionnaire is a series of question in a paper, which makes for the getting information from respondent that means collect the information from potential customers about the product and product r elated environment. As per Brown (2001)(Page-06), Questionnaires are many written instruments that present respondent with a series of questions or statements to which they are to react either by writing out their answers or selecting form a mong existing answers. Interviews It one of the important medium for the market research. By this method, marketer /researcher directly conduct with the customers. And he takes the short intervie w about the product and quickly gets the information from the potential customer s. Interview may be face to face or by telephone or may be postal interview. Fac e to face interview is the better than the other interview methods. Mashukur Rahman Id: 4098 Business Decision Making Page no. 4 of 26

Customer interviews is a discussion with customers and uses of projects deliverab les to determine requirements and needs... Interviews are techniques for one-onone uses needs assessments. Kendrick (2000) The Project Management.2000 Edition. (Page-40) In this research, applied face-to-face interview method and 100 people were inte rviewed on the streets of London as well as near Universities and computer store s. Outcome of interviews Customer profile (No.01) based on age In total 100 people were interviewed, thei r age range are given following by table: Range of age 15 to 25 25 to 35 35 to 45 45 to above Total Customer (frequency) 25 30 20 25 100 Table: 01 The following chart shows the how customer profile based on age appear on a column chart: Chart no: 01 Mashukur Rahman Id: 4098 Business Decision Making Page no. 5 of 26

The column chart represents the total 100 people were interviewed. Among the 100 people, 25 people were interviewed their age range is 15 to 25. And 35 people w ere interviewed they are 25 to 35 years old. Age range of 35 to 45 years old, th e number of customer were 20. At last 25 people were interviewed their age range was 45 to above. Customer profile (No.02) based on Gender Among the 100 intervi ewees, 55 people were male and rest of the people were female. Those are followi ng by graphically: Chart no: 02 The pie chart shows the 55 male were participating in the interview ed and 45 female also participate in the interview. Mashukur Rahman Id: 4098 Business Decision Making Page no. 6 of 26

Customer profile (No.03) based on Occupation Customer profile based on occupatio n presents graphically in following: Chart no.03 The pie chart provides that students are the highest participants am ong the other participants, which is 35 percent. 30 percent participants are off ice staffs that are also participate in the interview. And rest of the people ar e households and others people whose are also participating in the interview and their proportion was 25, 10 percent respectively. Finally, after analyse the all customer profile it is clear that, among the all participants most of the participants are young (25-35) aged. And also male inte rviewees are slightly more than the female interviewee. Students are highest par ticipants among the other participants. So, it also is clear that young man thos e are students that people were more enthusiastic about participating in my inte rview. Mashukur Rahman Id: 4098 Business Decision Making Page no. 7 of 26

Data Analysis Question no : 01 Do you have an own computer?( Desktop or Laptop)(Appendix No: 0 1) Own Computer No Answer Yes 0 10 20 30 40 50 60 70 80 Number of respondent Chart no.04 The column chart represents that, 70 percent respondents have own de sktop or laptop. And 30 percent respondent have no either desktop or laptop. Sin ce, most of the people have an own computer. So, there are huge opportunities fo r Computer Hardware Plc to establish a computer hardware store in London market. Mashukur Rahman Id: 4098 Business Decision Making Page no. 8 of 26

Question number: 02 &03 (Appendix 02 and 03) Data analysis based on customer pro file number-03 35 Own Printer & Scanner 29, 83% 30 25 Number of Interviewee 22, 88% 20 20, 67% Yes No 15 10, 33% 10 6, 17% 5 3, 12% 9, 90% 1, 10% 0 Students Households Office Staffs Others Category of Interviewee Chart no.05 This column chart shows the more than 67 percent office staffs have been use own printers and scanners. Then the second highest category is students . More than 17 percent students have a own printers and scanners and rest of the students have no any printer or scanner. And 12 percent respondent who are hous eholds they are also used own printer and scanner. At last, in other category, 9 0 percent interviewee said that, they have no own printer and scanner. Finally, it is clear that office staff is the highest proportion that are use the printer and scanner. So, office staff should be the target customer for Computer Hardwa re Plc for increasing sales volume of printer and scanner. Mashukur Rahman Id: 4098 Business Decision Making Page no. 9 of 26

Question number: 04 How much money have you spend annually on computer hardware? (Appendix 04) Data analysis based on customer profile number-03 Category Students Households Office Staff Others Percentage (%) 80% of 35 (28) Spend 50 to 100 (Approx. amount)

75% of 25 (19) 85% of 30 (26) 70% of 10 (7) 100 to 150 150 to 200 100 to 150 Table: 02 (N.B. In this table, consider only highest proportion of every customer category .) This table represents that, office staffs are spend the more money for purchase the computer hardware which is 150 to 200 annually (approx. figure). Households an d others category were also spend the money yearly between 100 and 150 for buy the computer hardware. At last, student who is the category those are spend compara tively less money then the other category, which figure is 50 to 100 per annum. Qu estion number: 05 & 06 Would you like cordless keyboard & mouse? (Appendix 05 & 06) Data analysis based on customer profile number-01 35 30 Cordless Keyboard & Mouse 12, 40% 2, 8% 14, 70% 7, 28% Number of Customers 25 20 15 10 5 Dislike Like 18, 72% 23, 92% 18, 60% 6, 30% 0 15-25 25-35 35-45 45-above Range of Age Chart no.06 Mashukur Rahman Id: 4098 Business Decision Making Page no. 10 of 26

This column chart represents that, most of the respondent (92%), those are 15 to 25 years aged, they are preferred the cordless keyboard and mouse. Over aged pe ople (45 over) those people also preferred the cordless keyboard and mouse, whic h is 72 percents. 70 percents respondents those are 35 to 45 years old, they hav e no interest about the cordless keyboard and mouse. And among the 25 to 35 year s aged interviewees, 60 percents like the cordless keyboard and mouse and 40 per cents are like to avoid the cordless keyboard and mouse. Question number: 07 Hav e you use your monitor as a television? (Appendix 07) (Would you like the TV Card?) Data analysis based on customer profile number-02 TV Card Chart no.07 Chart no.08 The two pie charts represent that, among the all male respondent, 60 percents we re dislike the TV card, and 40 percents were preferred that they like to use the monitor as a television. Where as most of the female (89%) were like to use the monitor as a television. And few proportion of female (11%) were dislike the TV Card. Mashukur Rahman Id: 4098 Business Decision Making Page no. 11 of 26

Question number: 08 How often do you change your computer? (Appendix 08) Data an alysis based on customer profile number-02 Chart no.09 Chart no.10 The two pie charts show that, most of the male and female were used the computer two or less then two years, which is 45 percents and 50 percents respectively. Also same proportion of man and woman who have been used the computer only one o r no more then then one year, which is 30 percents. And 25 percents male respond ents who have been use the computer three or no more then three years. On the ot her hand, 20 percents female were used the computer three or less then three yea rs. Mashukur Rahman Id: 4098 Business Decision Making Page no. 12 of 26

According to Bharat Book Bureau, estimated or forecasted market demand of comput er hardware in UK is 12.29 billion at end user prices in 2007. And it is increase d by 2.1% within the one year. Therefore, it is very clear that in UK's market d emand of computer hardware is expanding day by day. So, it is a very good prospe ct/chance for Computer Hardware Plc. to enter in the London hardware market. As a market analyst I think that, before penetrate in the market Computer Hardware Plc. should research the external environment of London computer hardware market . Hence, for the research of external environment I applied the PESTLE analysis method which is discussed following: PESTLE Analysis PESTLE analysis is a one of the analytical technique which is use for analyse th e external environment. The external environment is also called macro-environmen t and it refers to aspects in the environment over which the firm has no control over. PESTLE stands forP > Political Environment E > Economic Environment S > Social E nvironment T > Technological Environment L > Legal Environment E > Ecological En vironment Mashukur Rahman Id: 4098 Business Decision Making Page no. 13 of 26

Legal Political Business Environment (External) Ecological Social Economic Technological Macro Environment of Business Political Environment This refers that what is happening politically in the environment in which gover nment runs the country including areas such as tax policy, employment laws, atti tude of government officials, types of government in power, environmental regula tions, trade restrictions and reform, tariffs and political stability. Marketing decision are strongly affected by developments in political environment. This en vironment is composed of laws, government agencies, and pressure groups that inf luence and limit various organization and industries. Sometimes these laws creat e new opportunities for businesses. For example, mandatory recycling laws have g iven the recycling industry a major boost and spurred the creation of dozens of new companies making new products from recycled materials. Kotler, P.(2000) Marke ting Management. The Millennium Edition. Mashukur Rahman Id: 4098 Business Decis ion Making Page no. 14 of 26

The UK's government promots the computer learning at schools and others educatio nal institutions, which is the very good opportunity for Computer Hardware Plc. to penetrate into the london hardware market. Economic Environment This refers what is happening within the economy, for example; economic growth/ decline, interest rates, demand, exchange rates and inflation rate, wage rates, minimum wage, working hours, unemployment (local and national), credit availabil ity, cost of living, etc. Social Environment Social environment refers that what is occurring socially in the markets, cultur al norms and expectations, health consciousness, population growth rate, age dis tribution, career attitudes, emphasis on safety, global warming, language, educa tion levels etc. The information literacy rate in London is nearly 100 percents. It is a great opportunity for Computer Hardware Plc to exploit and to give the better products at competitive prices. Technological Environment According to Lancaster and et al (2002), Technology has a major environmental inf luence upon the marketing firm. It affects not only the firms operations and prod ucts but also consumers lifestyles and consumption patterns. Management must be a ware of the impact of technological changes. UK is the first world country in thi s universe. And London is the capital city of UK. Therefore, London city is very advanced in technology that is very good external opportunity for the Computer Hardware Plc. Mashukur Rahman Id: 4098 Business Decision Making Page no. 15 of 26

Legal Environment This relates to the laws of the governs and societies in which the firms operate s and it includes a consideration in the following factors: Employment laws (Min imum wages, working ages etc) Investment laws Health and safety laws etc. In UK' s there are no legal constraints to enter in the market. So, The Computer Hardwa re Plc. can easily starts the business in the London. As per Kotler (2003), Marke ting decision are strongly affected by developments in legal environment. This e nvironment is composed of different types or laws, government agencies, pressure groups that influence and limit various firms and individuals. Sometimes these laws also create new opportunities for business. Ecological Environment People and society as a whole are becoming increasingly concerned with natural ( ecology) environment and business firms are now expected to consider in their pl ans how to preserve the environment. So, before start the business, The Computer Hardware Plc.should to consider this issue. The Computer Hardware Plc. will target that get the 10 percents market share in the first operation as well as leading to an increase at 12 percents annually. I t could be achieve through and extensive promotion campaign through the media sp ecialist computer magazines. Mashukur Rahman Id: 4098 Business Decision Making Page no. 16 of 26

Products launching Timing for launching the products is represents by Gantt chart in following: [ P roposed date: January 2010] Months > Job Research Sorting results Hire outlets Recruitment & Training Promot ion Launch Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Chart no.11 This gantt chart shows that, The Computer Hardware Plc. was started the market r esearch from middle of july 2009 to mid-august 2009. And also sorting the result in second part of month of August 2009. Then in september 2009 Computer Hardwar e Plc. was busy for the hired outlets. After hiring the outlets Computer Hardwar e Plc. spend the one and half months for recruitment and provided training which is 1st october 2009 to middle of november 2009. For promoting the products Comp uter Hardware Plc taking time from middle of November to middle of December. And finally products are launching after middle of December. Mashukur Rahman Id: 4098 Business Decision Making Page no. 17 of 26

Demand forecast for The Computer Hardware Plc. Estimated demand of several products for the next 6 months Months > Products Jan-2010 Feb-2010 Mar-2010 Apr-2010 May-2010 Jun-2010 In units 290 250 80 110 15 0 880 295 255 83 112 155 900 300 255 85 115 155 910 300 260 85 118 160 923 305 2 65 90 118 162 940 310 270 95 120 165 960 Total Monitor Printer Hard drive Scanner Keyboard Total 1800 1555 518 693 947 5513 Table: 03 The line chart shows the monthly forecasted sales: 980 960 Estimated Demand Units ---------------------> 940 920 900 880 860 840 Jan Feb Mar Apr May Jun Months----------------> Chart no.12 The line chart represents that, estimated sales figure of The Computer Hardware Plc. for January 2010 to June 2010. The Computer Hardware Plc. expected that in january 2010 the sales figure will be total 880 units. Then the next sixth month s it will be gradually increases by more than 12 percents annually. Mashukur Rah man Id: 4098 Business Decision Making Page no. 18 of 26

Estimated Sales Revenue and Expenditure for The computer Hardware Plc. (From Jan -2010 to June-2010) M onths Ja n-20 10 Fe b-20 10 M a r-20 10 Ap r-2 01 0 M ay-2010 Ju n-20 10 Total S ales R evenu e E xpend iture: Co st of sales O peratin g C ost Administrativ e E xp. Adve rtising E xp ens es Co st of P rom otion O ther Expen ses In tere st a nd Tax Total 35 ,0 00 39 ,0 00 32 ,0 00 42 ,0 00 44 ,0 00 45 ,0 00 237,000

- 12,000 - 13,100 - 12,500 - 13,700 - 16,000 - 16,800- 84,100 - 6,0 00 - 5,0 00 - 2 2,5 00 - 1,2 00 - 1,4 00 -6,0 50 -4,8 00 -3,0 00 -2,6 00 -1,0 00 -1,5 00 - 5,8 00 - - 1,4 00 - 1,9 00 - 1,1 00 - 1,5 50 - 6,1 00 - 5,0 00 - 3,2 00 - 2,7 00 - 1,2 50 - - 6,2 00 - 5,2 00 - 3,3 00 - 2,7 50 - 1,3 00 - 1,5 75 -6,2 50 - 36,400 -5,1 50 - 3 ,5 00 - 16,400 -2,9 50 - 15,400 -1,3 50 - 7,200 -1,6 20 - 9,245 - 30,100 - 32,050 - 29,200 - 33,550 - 36,325 - 37,620- 198 ,84 5 P rofits 4,90 0 6 ,950 2 ,80 0 8,45 0 7 ,675 7 ,38 0 3 8,1 55 Table: 04 Mashukur Rahman Id: 4098 Business Decision Making Page no. 19 of 26

Estimated profits of Computer Hardware Plc. from January-2010 to June-2010 appea r on the graph: Chart no.13 This line chart represents that, The Computer Hardware Plc. expect that in Janua ry-2010 profit will be nearly five thousands pounds. From January to February it will be increases gradually. But from February to March The Computer Hardware P lc. expected that profits will be steadily decreases by more than four thousands pounds. Then, from March to April The Computer Hardware Plc. expected that prof its will be dramatically grows up which is more than eight thousands pounds. The n the next two months profits will not be great increases or decreases that mean s it will be gradually up and down. Mashukur Rahman Id: 4098 Business Decision Making Page no. 20 of 26

Correlation Coefficient Analysis of Coefficient of Correlation between Sales Revenue and Advertising Cos t Let, Advertising cost is denoted by 'x' and Sales Revenue is denoted by 'y' No w, as a business analyst I have to find out that is there any relationship have or not between x and y. That are following below: Months Jan-2010 Feb-2010 Mar-2010 Apr-2010 May-2010 Jun-2010 N=6 x 2000 3000 1400 3200 3300 3500 y 35000 39000 32000 42000 44000 45000 x2 4000000 9000000 1960000 10240000 10890000 12250000 y2 1225000000 1521000000 1024000000 1764000000 1936000000 2025000000 xy 70000000 117000000 44800000 134400000 145200000 157500000 x=16400 y=237000 x2=48340000 y2=9495000000 xy=668900000 Table: 05 Coefficient of Correlation is denoted by 'r'. N xy x y Formula of ' r '= [ N x2 x 2][ N y2 6 668900000 = [ So, r = 0.97 (Using Calculator) Since, r = 0.97. That means when variable x is increase that time variable y als o increases. Therefore, there are strongly positive correlation between two vari ables (Advertising cost and Sales Revenue). Mashukur Rahman Id: 4098 Business De cision Making Page no. 21 of 26 6 48340000 16400 237000 16400 2][ 6 9495000000 237000 2] y 2]

In following correlation between Advertising cost and Sales Revenue are shown by graphically: Line of Best Fit 50000 45000 40000 35000 Sales Revenue 30000 25000 20000 15000 10000 5000 0 1000 1500 2000 2500 3000 3500 4000 Advertising Cost Chart no.14 The line of best fit also represents that the two variables are strongly positiv e correlated. This line chart also shows that when advertising cost decreases th at time sales revenue also decreases. And when advertising cost increases that t ime sales revenue also increases. So, The Computer Hardware Plc. should not be w orried about advertising cost. Mashukur Rahman Id: 4098 Business Decision Making Page no. 22 of 26

Cash Budget Cash budget is a one of the important business planning mechanism or tool which aid to the managers anticipate the expected cash inflows that means cash receipts and outflows that mean cash payments for a budget period. Cash bud get ensure and makes the provision for minimum cash balance has to be maintained all time. According to Horne et al (2008) (Pg-180) A cash budget is arrived at t hrough a projection of future cash receipts and cash disbursements of the firm o ver various intervals of time. It reveals the timing and amount of expected cash inflows and outflows over the period studied. Benefits and significance of Cash Budget Planning tool Cash budget is a planning tool. The major benefit of the st atement of cash flows is that users may get the reasonably detailed picture of a company's operating, investing and financing transactions involving cash. Forec asting the Future needs Cash budget forecasts the future needs of funds, its tim e and the amount well in advance. It, thus, helps planning for raising the funds through the most profitable sources at reasonable terms and costs. Maintenance of cash Balance Cash is the basis of liquidity of the enterprise. Cash budget he lps in maintaining the liquidity. It suggests sufficient cash balance for expect ed requirements and a fair margin for the contingencies. Controlling Cash Expend iture Cash budget acts as a controlling device. The expenses of various departme nts in the firm can best be controlled so as not to exceed the budgeted limit. Mashukur Rahman Id: 4098 Business Decision Making Page no. 23 of 26

Evaluation of Performance Cash budget acts as a standard for evaluating the fina ncial performance. Bank Purpose The management demonstrate of the ability of com pany its working capital ability. Its also represents the lifeblood of a company . Many lenders and or creditors lend the money to the company after reviewing th e company's cash budget. So, to getting loan company should be prepared and main tain the cash budget statement regularly. Projected Cash Flow Statement The Computer Hardware Plc. (From January-2010 to June-2010) Months---> Jan-2010 Feb-2010 Mar-2010 Apr-2010 May-2010 Jun-2010 Cash Receive: Receipts from Cash Sales 31,500 34,320 29,440 36,120 38,280 38,250

Payments: Purchase Purchase Fixed Assets Staff Salary All other overheads Tax Total Surplu s (Deficits) Cash in Bank Closing Balance 16,000 6,000 3,000 4,200 ---(29200) 2,300 (8 000) (5700) 12,000 ----2,800 3,500 ---(18,300) 16,020 (5700) 10320 13,000 10,000 3 ---(29,900) (460) 10320 8960 14,000 ---2,500 3,500 2,500 (22,500) 13,620 8960 23 --2,700 4,100 ---(20,500) 17,780 23480 41260 22,000 ---3,200 4,500 ---(29,700) 550 0 Mashukur Rahman Id: 4098 Business Decision Making Page no. 24 of 26

References Avasarikar, D.P. and Dr.Chordiya, S.B.(2007) Marketing Research. 1st Edition. (Page- 3.8) Horne, J. and Wachowicz, J. (2008), Fundamentals of Financi al Management. 13th Edition (Pg-180),Pearson Education Limited. Kendrick(2000) T he Project Management. 2000 Edition.(Page-40) Kotler, P. Amstrong, G. Wong, V an d Saunders, J.(2008) Principles of Marketing. 5th European Edition.(Page-333) Ko tler, P. Amstrong, G. Wong, V and Saunders, J.(2008) Principles of Marketing. 5t h European Edition.(Page-334) Kotler, P.(2000) Marketing Management. The Millenn ium Edition. Kotler, P.(2003) Marketing Management. 11th edition Lancaster, G an d Massingham, L and Ashford, R.(2002) Essential of Marketing. 4th Edition Mashukur Rahman Id: 4098 Business Decision Making Page no. 25 of 26

Appendix 1. Do you have an own computer? (Desktop or Laptop) 2. Do you have a printer? 3. Do you use a scanner? Yes Yes Yes No No No 4. How much money have you spend annually on computer Hardware? 5. Would you like cordless keyboard? 6. Would you like cordless mouse? 7. Have you use your monitor as a television? (Would you like the TV Card?) 50-100 100-150 150-200 Yes Yes Yes No No No 8. How often do you change your computer? 9. Would you like laptop with a webcam? 10. Do you like optical mouse and optica l keyboard? 11. Would you like combined printer and scanner? < 1 year < 2 years < 3 years Yes Yes Yes No No No Mashukur Rahman Id: 4098 Business Decision Making Page no. 26 of 26