INTRODUCTION

This essay has a total of 3106 words and 23 pages.

MRS



INTRODUCTION

This study is based on a small firm called Universal School Of Motoring that is located in
Southall, London and offers a traditional service of driving tuition.


This study looks at the feasibility of introducing a range of business services to help
Universal School Of Motoring increase their number of clientele within the time period of
eight months by 15%. And if feasible, what would be the most suitable services for the
firm to use in terms of the local driving tuition market.


This project and business has been chosen as I work for the company and this aim is an
actual requirement for the business and not just a theoretical exercise. This is also an
opportunity to practice all the concepts that I have learnt during my business course and
see whether or not I am able to implement these in ‘the real world’.



BACKGROUND OF THE COMPANY

Universal School Of Motoring (USM) is a small privately owned business with two employees.
There are two partners (husband and wife, who are both qualified instructors), and the
firm is divided into two areas with Mr. Gurpreet Anand teaching males and females and Mrs.
Meena Anand teaching females who only want to be taught by a female. However, Mrs. Anand
has unfortunately developed a back injury that has resulted in her having to give up
teaching as she finds sitting up in an upright position very difficult.


This firm is based in Southall, London and offers a traditional service of driving tuition
to the surrounding areas. The founder Gurpreet Anand established this firm in 1984 and
introduced a female instructor in 1989.


Since then USM had gone from strength to strength with customers arriving in huge quantities.

THE NATURE OF THE PROBLEM

USM want to increase the number of clientele within the time period of eight months. The
problem is simply how to attract more customers to their driving agency.


N.B. Initially the title was could increasing the range of business services help
Universal School Of Motoring increase their number of clientele within the time period of
eight months by 15%. However, information on how many clients they have at the moment was
made unavailable to me, therefore it would be impossible for me to measure whether or not
the increase of 15% was achieved.


USM operate in a highly competitive market where there are at least 14 other driving
tuition firms of the same size as them and at least two larger firms that are nationally
renowned which operate in the same area as USM.


Competitions from larger firms’ such as AA and BSM LTD use above the line promotion in the
form of national radio, World Wide Web and television. This means that they are able to
reach a wider target audience in comparison to USM.


The firms that are of the same size as USM are competitive in terms of pricing along with
the services that they offer. This makes attracting customers very difficult. The prices
that are charged by the local competitors is shown below in a table:



Name of Driving School Price Charged for 1 Hour Lesson
Bains
Bedford
Bestway
Fantasia
Hudson
Impact
MSB
Noel
USM £13
Dhoots
Amber
International
JPS
Raj
Routes £14
Bestway
Chohan £15
BSM LTD £19
AA £20

Mrs. Anand has had to give up driving tuition due to her back condition. Because of this
USM have had to lose customers as inquiries from USM to potential lady clients are being
turned away because of cultural reasons as females are not permitted to be taught by a
male instructor, therefore they are losing sales and profits.


There is also direct competition as yet another driving school has opened in the last year
and this seems to be affecting the number of new clients that USM are attracting.


Turnover of clients has also been lower recently but mainly in the last 6 to 8 months.













AIMS AND OBJECTIVES OF MY RESEARCH

AIM

My aim is to discover how USM can increase their number of clientele within the time period of eight months.

OBJECTIVES OF MY RESEARCH

1. To find out exactly who is learning to drive?

2. What factors influence their choice and why customers choose certain driving schools over others?

3. To help USM come to a satisfactory conclusion as to exactly how they intend to resolve the current customer crisis.

4. Discover a market niche.




OBJECTIVE 1

By setting myself this objective I hope to discover exactly who USM’s target market
audience are. I will do this through the use of a questionnaire to gain information.


Results from this questionnaire will help to show exactly where USM currently stands
within its market and how it can improve its market share through listening to what
prospective clients require. These requirements can then be debated and considered by USM
before proposals are made for future business services.


OBJECTIVE 2

The purpose of this objective is so that USM are able to discover what sort of services
they could offer (to discover a niche in the market). By listening to exactly what will
help gain the custom of prospective clients, USM can increase their chances of a greater
level of market share.


OBJECTIVE 3

I will attempt to advise USM as to exactly what they can do about the retirement of Mrs.
Anand. This will include a range of different resolutions, which USM may decide to
consider.





OBJECTIVE 4

This objective will enable me to discover what services USM should be offering. By
conducting extensive market research, I will be able to evaluate and determine exactly
what USM need to do in order to increase their market share and client base. I will be
able to clearly show my findings through statistical and graphical analysis to help USM
gain a greater level of understanding.










RESEARCH METHODOLOGY

In order for me to achieve my objectives and to collect data and information successfully,
I will need to undertake an extensive program of primary and secondary market research.



PRIMARY RESEARCH


I will need to collect enough primary data to have a clear idea of the views and needs of
potential consumers. This primary data can either be collected by myself or by a market
research agency. However, despite the fact that this can be time consuming I will be
collecting this information personally because of a number of reasons:


 To keep costs to a minimum so that current profits and cash flows of the business are not effected.

 The information that I will collect will be made exclusive only to USM. This
would mean that USM would be the only business to have access to it. This data can
therefore be used to gain a market advantage over rival firms.


QUESTIONAIRE

In order to discover customer needs, I will need to design a questionnaire. However before
I start to design a questionnaire there are certain features that I must consider when
designing my questionnaire. This is because if it is poorly designed it may not obtain the
information that I am looking for.


For my questionnaire to be successful I will be asking an equal number of male and females
a series of questions, thus making this representative data.


Previous research done by the company has showed on many occasions that USM’s main target
market are customers who are aged 17 to 19. Therefore, to save time and money, the
majority of my interviewees will be within that age group. However, I will interview a
number of other age groups in order to represent all ages.


To make sure that my questionnaire is successful I could use the method of sampling to
obtain information. Sampling is a method that involves choosing a group of consumers
selected from the population to obtain accurate and realistic information.


There are a number of different methods of sampling that can be used such as Random
sampling, Stratified random sampling, Quota sampling, Cluster sampling, multi-stage
sampling and snowballing. However, Quota sampling and Random sampling are the most
feasible as the others are far too expensive.



QUOTA SAMPLING

This method involves a population being segmented into a number of groups, which share
specific characteristics. These may be based on the age or sex of the population. I must
then give myself a target for the number of people out of each segment I must interview.


In context to USM, I will segment the market into people aged 16 to 19 (assuming that this
is when people start to learn how to drive) and ask forty males and forty females to fill
out my questionnaire. I will ask females and males, as both genders’ are potential
Continues for 12 more pages >>




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