Convenience Store

Statement of the Problem

The de Castro couple decided to put up a business with Php 700,000 investments. They’re thinking about a convenience store. The problem now is where to establish it and what’s the appropriate area for the business. In addition, it is essential to know how to manage the business, the regulations, financing and taxation, advertising, marketing and promotional strategies.

Objectives:

* To identify the right area for a convenience store

* To fix an actual pricing strategies

Study Question:

1. What are the initial marketing decisions necessary in establishing a convenience store?

Putting up a business can be a satisfying undertaking, but it comes with its challenges. It is wise to do a research first before starting a business. There are quite a lot of concerns to deem such as regulations, financing and taxation, advertising, how to manage your business and much more.

Industry Analysis

Porter’s Five Forces

Threat of New Entrants – the threat of new competitors would be an easy undertaking but to encourage loyal customers is another story. Bearing in mind that the area they picked to establish their business is very alluring for the others to also start-up a business with the same services they have or perhaps there is already a convenience store running in that particular area . The success of the business is in the owners’ hand, it depends on how they will cope with it.

Threat of Substitute Products – give significance to the customers’ preference concerning the price and quality of the products because consumers at the present time always take the low-priced but good quality products.

Purchasing Power of Buyers – customers enjoy going back to a store if they can get benefits or if they’re well entertained by the owners/staffs. Giving away loyalty cards can be a technique to have reliable customers.

Bargaining Power of Suppliers – it is pleasant to know the customers’ needs and wants. By this means, you...