Feasibility Study

- The Odiham Project

A Stewart Scott
Assessment
Background..........................................................................................................................4
Objectives............................................................................................................................5
Primary Objective............................................................................................................5
Secondary Objectives.......................................................................................................5
Objective One..............................................................................................................5
Objective Two..............................................................................................................5
Objective Three............................................................................................................5
Objective Four ............................................................................................................5
Objective Five..............................................................................................................6
Objective Six................................................................................................................6
Analysis of Demand Research.............................................................................................7
Concessions......................................................................................................................7
Ages Ranges.....................................................................................................................7
Former Martial Artist Ratios............................................................................................7
Bibliography........................................................................................................................8
Background
As a resident of Odiham, and a martial arts enthusiast, I have noticed a distinct lack of a
martial arts supplies retailed in Odiham. More in depth consideration, and perusal of the
high street has lead me to believe that it would be feasible for the following reasons:
• Martial arts such as Qui-Gong and Tai-Chi are used to treat various conditions
associated with age, this knowledge coupled with the local demographics I have
observed lead me to perceive a gap in the market.
• Not only in Odiham, but the whole county is lacking such a retailer, and with a
successful promotion strategy, customers would be plentiful.
• There is also a distinct lack of competition, and the market has low barriers to
entry, making market relatively easy to penetrate.

As you can see, the chosen towns are situated very closely together, with trains and roads
connecting them all, and as someone who walks to Winchfield and back daily, I can
safely say it’s not hard, or it shouldn’t be for people with martial arts body conditioning.

It is also the case, that due to the closeness of the towns, that martial arts classes will
contain people from towns other than the one in which the class is situated. This will not
only help spread the word of mouth promotion from region to region, forming a web as I
expose multiple classes to my marketing strategy.
Objectives
Primary Objective
To undergo a feasibility study into the potential of opening a martial arts retailer in
Odiham.

Secondary Objectives
Objective One
‘Research demand levels for a martial arts retailer in Odiham.’
This objective will involve questionnaires to random people on the street in the following
locations;
• Fleet
• Odiham
• Winchfield
• Hook
As well as asking enthusiasts in local dojo, presenting them with the same questionnaire,
but also asking them about far less static opinions.
These results will then be analysed, and the potential demand evaluated.

Objective Two
‘Investigate local competition levels and evaluate threat levels’
This objective will involve perusing the local high streets of the four locations from the
first objective, as well as using answers obtained from the questionnaires and
conversations, also attained in objective one. This data will be analysed and the threat
level ascertained.

Objective Three
‘Research supply levels and establish a pricing strategy’
This objective will involve using both the prices from suppliers for stock demanded and
the prices suggested by my potential customers (found in objective one) as well as the
prices of my competition (if any(found in objective two)). PED will also be taken into
account.

Objective Four
‘Research the total costs of the initial set-up of the business’
This objective will involve estimating refurbishment costs of the premises as well as the
initial cost of the rent.
Objective Five
‘Calculate the overall costs, revenues and thus profits of the business’
This objective involves calculating total revenue, which can be found by “Average
turnover per sale * Number of sales” as well as the initial costs, and the subsequent ones,
which will both use the formula “fixed costs + variable costs”, but the initial costs will
include one-off payments. The contribution could also be used to find the breakeven
point.

Objective Six
‘Confer with the local herb shop, and sensei to try and establish trade agreements’
This objective will involve lengthy discussions with the above potential stakeholders, so
as to try and not only avoid competition, but also allow for a firm customer base, and
word-of-mouth promotion.
 Analysis of Demand Research
Concessions
The questionnaires were only answered by 100 people, this is a very small test group and
could well raise concerns as to the impact of anomalous data. The comments from the
Sensei are my other form of primary data, and are in my mind, highly accurate as many
(most notably Jon Wicks) have been in the industry for quite some time and as such have
a fairly fluent knowledge of the status quo in the market.

Ages Ranges
Looking at the data that I collected, it would appear that much of the population are either
above, or below middle-age. This would lead me to identify two major customer groups,
the elder customers, who are more likely to value far ‘softer’ martial arts, with the aims
more around health benefits (My figures support an interest for this) and as such, would
be more interested in books, and medicinal herbs. The other group, younger range of
customers, are more likely to be interested in hard, combative arts and as such, my store
would have to stock weapons and possibly offer a post-board system that could help
students find sparing partners. Increasing the amount of entrants to my store.

Former Martial Artist Ratios

As I suspected, there are many people who are not martial arts. If, however, my search is
representative, and indeed, 17% of the population of Fleet, Hook, Winchfield and
Odiham are indeed current, or former martial artists, if these figures are representative of
the whole population (41,281 people), then there are 7017 people who are likely to be
interested, and might well pass the word of the store around even if they don’t buy
anything. This data leads me to believe that asking martial artists with whom I am
acquainted with, to perform demonstrations in Basingstoke high-street wearing gear that I
would be selling, possibly even allowing bystanders to try the gear on for themselves,
adding to the personal touch that appeared to be highly valued by my test subjects.
Bibliography
Local martial arts classes
http://www.guildford.gumtree.com/guildford/02/6643902.html
http://www.su-ha-ri.co.uk/main/index.php?
http://www.sarahgoodall.co.uk/
http://www.fleetaikidoclub.org.uk/
http://www.martialartsclubs.com/byarea/hampshire.php
Proof that certain arts befit the aged
http://www.martrix.org/Gigong.pdf