The first reason why I agree with their decision Is that quite simply they will be appealing to more potential customers although this could cause their previous market of over 55 to not like there service or maybe feel alienated It will appeal to the majority of customers this In theory should cause their sales to Increase and that will result In Increased profit and they should be able to cope with the sudden Increase n customers because they have recently increased the amount of hotels they own this will enable them to appeal to the mass market while maintaining good customer satisfaction which will lead to repeat purchases and a good reputation which is vital when trying to appeal to a mass market. Another reason why I agree with their decision to move is that at the moment they are not getting as much profit as they forecasted so clearly operating in a Niche market is not working so it makes sense to move into a mass market and increase their sales which will increase their sales providing their costs do not increase by to such when they are expanding to accommodate all these new customers. It could be argued that it is not a good idea for Shearing to try and appeal to a mass market and move out of the niche market.
This is because they were getting a steady profit operating in a niche market so it is a bit of risk moving into a market they are unfamiliar with which could be a huge failure because they are spending lots of money trying to make it work like the EH million on advertising and the further EYE million they spent on expanding to accommodate the new customers and If It doesn’t ark they are left with a huge cash outflow and no where near enough Inflows to cover It furthermore trying to appeal to the mass market which Is younger could alienate their older customers which means there would be no going back because they would lose their loyal older customers which lead to a bad reputation resulting In no repeat purchases and lower profits. I however feel business Is all about taking risks and even though It Is a bit of risk trying to appeal a mass market which could ultimately result In the business becoming bankrupt if the risk pays off it will certainly pay off and will mean they will eve a whole new loyal customer base which will cause their profits to be as much as they forecasted Shearing Holiday Effective Marketing Case Study By Barricades Yes I do agree with Shearing decision to move into the mass market for holiday services.
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