business plan essay
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after_life.docxDB150: Market Research for After Life App
Market Analysis
Competitors
Whilst conducting our secondary research we decided to look into a company that we previously compared to, Resident Advisor Limited.
Resident Advisor charge a simple £1 booking fee for whenever you purchase tickets. With thousands of people purchasing daily you can see how they make their profits. They used the means of social media to initially promote their product including Facebook and Twitter, then relied on word of mouth to expand their business, which people can purchase for free via the App-Store.
Market Size
Our Mobile Application will be entered into a niche market of just students within Brighton, with the view to expand when demand rises. There isn't another company who specifically target Brighton however there are competitors who cover Brighton but work much more on a broader scale, including Resident Advisor and Timeout.
Smartphone sales are predicted to keep on rising which is shown by the below graph, and as the rise of smartphones continues so does the amount of people exposed to the App-Store.
Source found at: http://uk.businessinsider.com/global-smartphone-market-forecast-vendor-platform-growth-2015-6?r=US&IR=T
Barriers of entry
The toughest barrier for us to overcome will be the amount of competition there is within smartphone applications, who each have a unique selling point which we will have to try and better.
Another barrier will be the prices we charge, stable businesses can already offer lower prices than us due to customer base and relationship with suppliers, something we will have to build up fast.
PESTLE
We also need to analyse the external influences that might affect our decision about how we will go about creating our mobile application. In terms of the political factors, we need to investigate the amount of tax we would have to pay to create our mobile app. This will determine whether we charge customers to download the app before being able to access it. An economical factor would be the economic growth patterns. This is a reflection of how active the economy is, therefore if we can see that the economy is very active in terms of spending, we might be able to increase any charges. Social trends have largest effect on our app because in order to begin the app, we need to find out whether students in Brighton go to clubs frequently. The technological factor we need to consider is our application being compatible with all mobile phones. This is important because if we don't make the app compatible with all phones, we will lose potential customers. Copyright would be a legal factor because we need to make sure that we have our own unique selling point which therefore makes it different to competing apps. The final external factor will be environmental. This is another vital factor because by creating an app for students to help them find clubs in early hours increases the amount of people going clubbing which as a result, increases noise pollution as they will most likely be intoxicated which has a negative effect on the local community.
Summary of findings
During our research we have understood the niche we are entering and also the market as a whole, we have found competitors that cover our position in the market but not as specific. We have started to understand what barriers we will come across when entering, including competition and legal barriers. Whilst also noticing the increase demand for such app, as the smartphone and app-store industry continues to rise.
Research Design:
For our market research for our night life events comparison application After Life, we will conduct a mixture of research methods. This is to ensure that we have a broad yet detailed understanding of what the current demands and preferences of our target market are.
To gain an understanding of the market as a whole, secondary research data was mainly used. Through this method we were able to discover the size of the market, existing competitors and how they conduct their business operations, the price ranges of various products and services and the value of the market as a whole. This allowed us to gain a general overview of how our application should operate in order to compete with the existing applications. To a certain extent, through secondary research an understanding of how our application should look, operate and generate revenue was already forming.
A deeper and more detailed understanding of our target consumer will be gained through primary research methods. The first method, a focus group, will outline the specific needs and wants of the chosen members of the focus group. Through analysis of the data similarities between what members of the group said will be highlighted, thus demonstrating what needs to be focused on in order to develop the application further so that our target consumers’ needs are satisfied. This research can be classified as a qualitative research method, designed to provide meticulous insight, especially when compared to a quantitative method. This shall further aid to our understanding of the market which After Life will operate in.
The second method which will incorporate primary research data will be a questionnaire. This method of research will provide quantitative data, which will provide an understanding of what the general trends of the target market, such as the pricing and how people react to certain prices, types of venues and type of artist preferences. A deep analysis of this quantitative data will provide information that would be impossible to obtain through qualitative methods; furthermore, since questions will be modelled around our applications, data obtain will be more orientated and customised around our application.
Focus Group research
Aims
The aims of the Focus group are to find and collect primary qualitative data based on the app. For example, opinions and potential suggestions that could improve the app. As well as any potential problems with the app and how these problems could be fixed to make the app better.
Strengths
Can collect relevant qualitative data. Easy to measure the reactions of the participants to the product. Can provide instant feedback and offer potential improvements and point out problems and how to fix them.
Limitations
Small sample size of views which may not represent everyone as a whole. Potential for participants to be bias as well as influence each other into views they may not have otherwise had. Similarly bias from the moderator could influence the answers of the participants.
Topic guide
Get general opinions of ‘Nightlife apps’,
What Afterlife is about,
Features of afterlife,
Improvements that could be made,
Potential problems,
Overall thoughts.
Design consideration
Small focus group of 5 People. The sort of questions will be questions that require longer qualitative answers and number of questions kept relatively low as not to bore the participants as this could lead to inaccurate results. Ideally you would want a range of different participants of different gender, ethnicity etc. however still based in your target market.
Reliability of results
The results are likely accurate however some bias could be cause from knowing the people in the focus group. Furthermore, the range of type of people is small so opinions might not be representative of the whole.
Summary of key findings
The key findings were that most thought the app is a good idea and if easy to use could be very useful in helping to plan a night out because of its good features. However even though most like the idea of the app some say they would not use it as part of the fun of a night out is going exploring and finding clubs/bars etc. by yourself and if you plan everything it can ruin some of the fun of a night out.
Qualtrics Online Survey
The aim of our Qualtrics online survey is to obtain data about our target market and to find out their needs, likes and dislikes. We are focusing on customers ranging from the age of 18-25, therefore we assess their engagement in the night scene by asking questions about music and preferences to indicate their vibe and their engagement in the parties. Also it is very important that through this questionnaire to find out their willingness to pay and the maximum amount they are able to spend; for us to find out the price range of the app and to maximise in-app buys profits.
The benefits of using Qualtrics survey is the easy accessibility as our research group can access our survey anytime and anywhere, giving them the choice and increasing the chances of participation. Another key aspect that is beneficial that questionnaire provide an easy way to collect and summarise data without having to analyse lengthy information. We aimed to used closed answer questions with multiple choices to minimise collection of data time and acquire the key information needed to obtain the aim of our questionnaire, as closed answer questions can provide large amounts of information and data can easily be obtained. The questions are also standardised thus all respondents are asked the exact same questions, meaning that the questionnaires can be repeated easily to check for reliability. Therefore, a second researched can use the questionnaire to check that the results are consistent. The limitation of using online surveys are the lack of details because the answers are limited therefore some answers are not explained therefore limited data. (McLeod, 2014)
Also, we made sure to follow research key procedures by following insuring to inform consent and confidentiality of participant’s information by keeping the questionnaires anonymous. (HADDON, 2014)
Link to Questionnaire : https://qtrial2016q4az1.az1.qualtrics.com/SE/?SID=SV_01D1j0tLlq7Pzj7
Report Analysis After life December 14th 2016, 1:59 pm MST
Q1 - What is your gender?
|
# |
Answer |
% |
Count |
|
1 |
Male |
45.00% |
9 |
|
2 |
Female |
55.00% |
11 |
|
|
Total |
100% |
20 |
From our research we obtained data from 11 females and 9 males. Therefore female participants dominate our questionnaires.
Q2 - How old are you?
|
# |
Answer |
% |
Count |
|
1 |
18-20 |
20.00% |
4 |
|
2 |
21-23 |
60.00% |
12 |
|
3 |
24-25 |
20.00% |
4 |
|
4 |
25+ |
0.00% |
0 |
|
|
Total |
100% |
20 |
The age range of participants is between 18-25 with four 18-20 participants, 12 participants that are 21-23 and 4 (24-25) participants. This relates to our target market.
Q3 - Do you drive?
|
# |
Answer |
% |
Count |
|
1 |
Yes |
57.89% |
11 |
|
2 |
No |
42.11% |
8 |
|
|
Total |
100% |
19 |
Most people drive from those who answered our questionnaires thus we assume taxi services isn’t a necessity so far.
Q4 - What is your occupation? (tick all answers that are relevant)
|
# |
Answer |
% |
Count |
|
1 |
Student |
85.00% |
17 |
|
2 |
Part-time employee |
70.00% |
14 |
|
3 |
Full-time employee |
10.00% |
2 |
|
|
Total |
100% |
20 |
Mostly students and part-time employees therefore, student discount is very relevant to our research market.
Q5 - What kind of venue do you prefer?
|
# |
Answer |
% |
Count |
|
1 |
Club |
75.00% |
15 |
|
2 |
Pub |
60.00% |
12 |
|
3 |
Lounge |
5.00% |
1 |
|
|
Total |
100% |
20 |
Most of our target market prefers Clubs and Pubs as only 1 participant chose Lounge. Therefore our App would be focusing mainly on Clubs and Pubs guidance.
Q6 - How often do you go out?
|
# |
Answer |
% |
Count |
|
1 |
Daily |
5.26% |
1 |
|
2 |
2-3 times a week |
31.58% |
6 |
|
3 |
3+ a week |
26.32% |
5 |
|
4 |
Monthly |
26.32% |
5 |
|
5 |
Never |
10.53% |
2 |
|
|
Total |
100% |
19 |
From our research we can conclude that most of our participants go out on weekly basis varying from 2-3+ times a week. Therefore giving our App a very strong prospective to be successful and reliable to our target market.
Q7 - On which days are you most likely to go out?
|
# |
Answer |
% |
Count |
|
1 |
Monday |
0.00% |
0 |
|
2 |
Tuesday |
25.00% |
5 |
|
3 |
Wednesday |
35.00% |
7 |
|
4 |
Thursday |
20.00% |
4 |
|
5 |
Friday |
70.00% |
14 |
|
6 |
Saturday |
65.00% |
13 |
|
7 |
Sunday |
5.00% |
1 |
|
|
Total |
100% |
20 |
Most of our participants chose the weekend (Friday and Saturday) as the most convenient days to go out. In contrast 0% chose Monday meaning parties on that day should not be heavily promoted through our App.
Q8 - What kind of music do you desire on a night out?
|
# |
Answer |
% |
Count |
|
1 |
Hip-hop/RnB |
55.00% |
11 |
|
2 |
Country |
35.00% |
7 |
|
3 |
Rock/Metal |
50.00% |
10 |
|
4 |
Soul/Classic |
20.00% |
4 |
|
5 |
Funk/Jazz |
20.00% |
4 |
|
6 |
House/Electronic |
10.00% |
2 |
|
|
Total |
100% |
20 |
55% of our clients chose Hip-hop/RnB Genre compared to the low choice of House/Electronic, showing the kind of vibe the majority of our customers are looking for. Hence ticking off our aim of finding out the vibe preference.
Q9 - How much are you willing to pay for entry?
|
# |
Answer |
% |
Count |
|
1 |
Free |
15.00% |
3 |
|
2 |
£1-£3 |
0.00% |
0 |
|
3 |
£4-£6 |
25.00% |
5 |
|
4 |
£7-£10 |
40.00% |
8 |
|
5 |
£11-£15 |
15.00% |
3 |
|
6 |
£16-£19 |
0.00% |
0 |
|
7 |
£20+ |
5.00% |
1 |
|
|
Total |
100% |
20 |
From the results of the questions above, we found out that most of the participants are willing to pay £7-£10 as entry fees meaning that this is the value we should aim for through giving discount on higher priced venues to obtain the desirable charges of 7-10 entry and increasing promotion for cheaper venues to obtain more profit by focusing on that price.
Q10 - What are the expenses of you average night out?
|
# |
Answer |
% |
Count |
|
1 |
£1-£10 |
15.00% |
3 |
|
2 |
£11-£20 |
40.00% |
8 |
|
3 |
£21-£30 |
25.00% |
5 |
|
4 |
£31-£40 |
15.00% |
3 |
|
5 |
£41+ |
5.00% |
1 |
|
|
Total |
100% |
20 |
Most of our clients spend £11-£20 on an average night out, this includes transport and entry fees. Showing that if 10 is spent on entry only around 20 is spend on drinks, giving us the conclusion of lowering drink prices or giving offers such as buy 2 get 1 half price.
Q11 - How often do you book a table?
|
# |
Answer |
% |
Count |
|
1 |
Often |
10.53% |
2 |
|
2 |
Occasionally |
36.84% |
7 |
|
3 |
Rarely |
31.58% |
6 |
|
4 |
Never |
21.05% |
4 |
|
|
Total |
100% |
19 |
This report shows that table are very essential as most rely on them for occasions however they are not a necessity. Therefore table offers are important but not a main aspect in our promotion through this App.
Q12 - What is your method of transport?
|
# |
Answer |
% |
Count |
|
1 |
Bus |
52.63% |
10 |
|
2 |
Walking |
42.11% |
8 |
|
3 |
Taxi |
47.37% |
9 |
|
4 |
Driving |
31.58% |
6 |
|
5 |
Others |
5.26% |
1 |
|
|
Total |
100% |
19 |
This report shows that most of our participants use Buses to get to the clubs and followed closely by 47.37% therefore showing the need of providing taxi services, and hopefully by offering lower prices taxis more participants would rely on taxis; if the price is the current issue, as taxis are safer for people under the influence of alcohol.
Q13 - What are your pet peeves on a night out?
|
# |
Answer |
% |
Count |
|
1 |
Long queues |
60.00% |
12 |
|
2 |
High capacity (Crowded) |
20.00% |
4 |
|
3 |
Limited drink menus |
35.00% |
7 |
|
4 |
High entry fees |
50.00% |
10 |
|
5 |
Rude/Strict security |
15.00% |
3 |
|
6 |
Venues size (too small or too big) |
5.00% |
1 |
|
|
Total |
100% |
20 |
Q13 indicates that our participants dislike mostly long queues and high entry fees, so our app need to focus on faster entries and lower prices.
Q14 - What are the social media networks do you use?
|
# |
Answer |
% |
Count |
|
1 |
|
55.00% |
11 |
|
2 |
|
60.00% |
12 |
|
3 |
|
90.00% |
18 |
|
4 |
YouTube |
5.00% |
1 |
|
5 |
Others |
5.00% |
1 |
|
|
Total |
100% |
20 |
From the report above we decided to focus our promotion through Facebook, Twitter and Instagram as they are the most active social media networks.
Q15 - What system do you use?
|
# |
Answer |
% |
Count |
|
1 |
Apple |
60.00% |
12 |
|
2 |
Android |
40.00% |
8 |
|
3 |
Others |
0.00% |
0 |
|
|
Total |
100% |
20 |
Most participants use Apple and Android systems so our goal should focus on supplying to App-store and Google-play.
Q16 - Are you willing to pay to access to an app?
|
# |
Answer |
% |
Count |
|
1 |
Yes |
60.00% |
12 |
|
2 |
No |
40.00% |
8 |
|
|
Total |
100% |
20 |
To conclude most of our participants are willing to pay to access the app, as the data above show.
Marketing Mix Infographics
Afterlife is designed and aimed at students ranging from the age of 18-25, providing guidance for the convenience of our clients for a night out tailored to their preferences.
After researching the market we have come to a conclusion that our App would be successful as our target customers are looking for this tool that is compatible to their party life-style. The unique selling point of our App that it is made specifically to Students where as our competitors such as NightOwl is made for the general public and by providing Student discounts and being available in student cities where universities are found, This makes AfterLife different and increases the chance of profit and usage.
Our second USP is that we offer transport services such as automated Uber request and since Uber is new to Brighton, that would give us and Uber the advantage of promoting both businesses to students, hence increasing the chances of Uber accepting our partnership.
The price of the app would be available for Free to access and download, however we will be offering in-app purchases that would charge for discounted entries, discounted drinks and transport. Making our clients more likely to purchase their night out needs through our App.
We will be promoting the app through a variety of social media networks such as facebook, Instagram and Twitter for easy access and distribution to promote the purchases through Play Store for Android and App Store for Apple Users.
Reference:
2016, D. (2016) The law on alcohol and under 18s. Available at: https://www.drinkaware.co.uk/alcohol-facts/alcohol-and-the-law/the-law-on-alcohol-and-under-18s/ (Accessed: 15 December 2016).
HADDON (2014) ETHICS REVIEW QUESTIONNAIRE FOR RESEARCHERS. Available at: http://www.lse.ac.uk/media@lse/research/EUKidsOnline/EU%20Kids%20III/Qualitative/Research-Ethics.pdf (Accessed: 15 December 2016).
Ingraham, C. (2015) The average number of drinks men and women have at every age, charted. Available at: https://www.washingtonpost.com/news/wonk/wp/2015/03/10/charted-when-men-and-women-drink-the-most/?utm_term=.345b3cdc1c58 (Accessed: 15 December 2016).
McLeod, S. (2014) Questionnaires. Available at: http://www.simplypsychology.org/questionnaires.html (Accessed: 15 December 2016).
UNIVERSITY, B. (no date) Student population. Available at: https://www.brighton.ac.uk/about-us/governance-and-information/facts-and-figures/student-population.aspx (Accessed: 15 December 2016).
University, S. (2016) About the university: About us: University of Sussex. Available at: http://www.sussex.ac.uk/aboutus/ (Accessed: 15 December 2016).
