6TH FORM ECONOMICS WITH ANITA STARK KAPITI COLLEGE 2000 ANDREW PIRIE
CONTENTS
• The Kapiti Coast
• Lindale, Coastlands, Raumati South Shops
• April 16, 2000, News Reviews
THE KAPITI COAST
The Kapiti Coast will need to cope with economic and social effects as a result of population growth. This will mainly take place in Otaki which is the designated area for growth. These effects include housing and property prices rising and an increase in crime. It will also mean more facilities, such as sewage and water will be needed for an ever-growing population.
But as facilities increase and businesses expand more jobs will become available.
Demand for houses has increased. Suppliers will face the problem of a very limited amount of space in which to provide new homes.
A growing population that can afford higher-priced houses will attract burglars. Many come from partially poverty-stricken areas like Porirua East. This would mean more law enforcement than is presently available.
As more businesses arrive, through either expansion from Wellington or are national companies interested in setting up in near a fast-growing populace. A wider range of goods and services will be provided to the community. This will draw away more of the Kapiti Coast consumers from shopping in Wellington and they will start shopping in Kapiti since they will be more likely to be able to buy the goods nearby. An example of this is Movieland 4 which was built a few years ago and made consumers not need to travel to Levin or Wellington to watch movies. Businesses setting up will increase the demand for labor.
Better transportation routes will be needed to connect Kapiti with Wellington. Building a 2nd road in Raumati South to divert traffic off the main road is already a proposed idea. Transmission Gully a bigger project is a controversial idea argued over for years which would lower the stress of heavy traffic on the main road going to Wellington. Tranzmetro plans to build a second train station at Raumati South to supply a closer station than Paraparaumu.
Council is making a crucial decision this month on whether to spend money on the Kapakapanui dam or the Otaki pipeline, and a decision on the Waikanae route of the Western Link Road (WLR). People who live near the dam are afraid of being flooded if the dam bursts. Local Maori iwi is opposed to the building of the pipeline.
Council is planning a bulk water supply project. As well as this sewage will need to be improved. The water supply project will cost between $9.5m to $9.6m for the dam while two cost scenarios are given for the pipeline. A staged construction for 23 years costs between $9m - $9.3m or constructing a full capacity pipeline costs between $10.3m to $10.8m.
Some consequences will benefit the community such as an increase in employment and in facilities and the availability of a wider range of products locally. Possible negative consequences include more pressure on a limited water supply, and currently inadequate sewage treatment, and infrastructure. The key determinant of just how much the Kapiti region will expand in the next few years is the amount of progress that will occur in road building and public transport into Wellington.
Lindale
a) What goods and services does Lindale offer?
- Farm Kitchen
- Dairy Products - Cheese/Milk/Ice Cream, etc...
- Souvenirs
- Wood products
- Wool products
- Wood frames
- T-shirts
- Trinkets
- Olive products
- Farm walk/Farm Show
b) Why have these buildings located at Lindale?
Lindale offers a cheaper rental rate than Coastlands. It allows easier access for tour buses. Some businesses use the help of an accountant and solicitor, which are located nearby.
c) How do they promote their products?
- Brochures
- Signs
- Word of mouth
- Radio ads
- Directories (e.g. yellow pages)
- Roadside billboards
- Window displays
- Internet travel guides
d) Are there any restrictions placed on the type of businesses that can be located at Lindale? If so why do these exist?
There are restrictions, which will not allow non-tourist businesses. No franchise businesses are allowed (e.g. Mcdonald's or Farmers)
e) What market or markets are Lindale aiming for? How does its location enhance this?
Lindale is next to a highway, which means that passers-by will see it and may want to visit.
Lindale is not near a heavily populated city although it is near a fast-growing area.
f) What are the rental rates of Lindale? What other running costs would you need to consider if you were to start up a business at Lindale?
Rental Costs
• $130 per sq. meter per annum upstairs rental
• $200 per sq. meter per annum downstairs rental
■ Rental includes electricity and rates
■ paid a levy to promote the Lindale complex
g) Comment on the Pedestrian Flow of Lindale e.g. age/gender/nationality/shops visited
Mainly Asian tourists from Japan. Adults with young children. There were an even mix of males and females. There were some people from the Netherlands. The number of visitors passing through seemed to be fairly constant. . Occasionally the place had no visitors for about 5-minute intervals.
COASTLANDS
a) What goods and services are located at Coastlands?
- Super Markets/Department stores
- Fashion/Footwear
- Gardening
- Bank/Insurance
- Recreation/Entertainment
- Health & Beauty/Hair
- Food
- Photography
- Jewelry/Gifts
- Accessories
- Homemaker
- Furniture/Appliances
- Eyewear
- Travel/General
b) Why have businesses located at Coastlands (give examples)?
Coastlands is the largest market on the Kapiti Coast, shops are not only attracted to their shop but to other shops. (Someone going to buy something from Deka might decide to buy a lotto ticket on the way). Coastlands are in a central location. Located in the middle of the Kapiti Coast between Waikanae and Paekakariki. Many shop owners may live locally so they do not lengthen the workday by traveling to Wellington every day to work. Demographics also show that situating Coastlands where it is will attract as many people as possible on the Kapiti Coast.
c) How do they promote their products?
- Brochures
- Pamphlets
- Flyers
- TV ads
- Posters
- Signs
- Glowing Signs
- Logos
- Customer Clubs/Cards
- Movieland 4 ads
- Overhead speaker
- Flat-screen
- TV in the mall
d) What market do the businesses at Coastlands aim for? Does this differ from Lindale? Explain your answer.
Coastlands aims for families and old people who live in the region (general market). Differs from Lindale, which attracts tourists from overseas. Coastland doesn't specify tourists' goods and attractions. It provides goods and services to shoppers.
e) What are the rental rates at Coastlands? What factors influence the rate of rent a business in Coastlands will pay?
- $400 per sq. meter per year or 6% of turnover whichever is greater per year
- An additional $450 in advertising per year
f) Comment on the Pedestrian Flow (as above)
- Most people were middle-aged there were a lot of elderly people mainly elderly females.
- Most males would be at work unless they were for a lunch break.
- Most children 0-18 would be at school or college.
- The busiest area is the main entrance where the 3 corridors meet.
RAUMATI SOUTH SHOPS
a) What goods and services are located in this area?
- Valhalla Shop -not used being renovated
- Dog Cleaners -closed
- Dairy Family Hair Care - closed
- Fish n' chip shop
- Telephone Box
- post shop
- bus stop
b) Why have these businesses located in this area?
Raumati South Shops is near houses and is surrounded by a residential area (nearer consumers). It is where 3 roads connect Renown Road, Poplar Ave, and Rosetta Road. Not many survive around this area in Raumati South. As only 2 out of 6 shops were active when I went to visit at 5:10 in the evening on Tuesday.
c) What market does this aim for?
Raumati South Shops relies on locals as its consumers. Who get there by walking, while walking dogs, cars, biking, skateboarding. School children could be another source since Raumati South School is nearby. Most people who went to the dairy bought cigarettes.
d) Pros and Cons of locating a business in this area?
On a whole, it is not central enough. It has QE Park after the local houses to its south and its northern consumers mostly would go to Raumati Village shops because there is a larger variety there. Fish n' chips can sell to a wider area and are running well since it has been going for a few years and is still one of the two shops that were still open when I went. Fish n' chips vary compared with cigarettes and newspapers.
e) How do rental rates in this area compare to Lindale and Coastlands? Give some examples Unable to gain the information it was withheld by the shopkeeper
f) Make a comparative study of the PEDESTRIAN FLOWS compared to Lindale and Coastlands
- The pedestrian flow was less than Lindale or Coastlands.
- I took it over a period of 20 minutes between 5-10 and 5-30.
- There were a total of 16 people and most were Males under 18.
- Mostly children on bikes or skateboards.
- There was no elderly at all.
- There were 2 people walking dogs. 7 drove in cars.
Selecting a product Decision-Making Model
Set the Desired Goal
- Sales Maximisation
- Profit Maximisation
- Selling something I'm interested in (Personal Interest)
Obstacles
- I May need to hire staff in areas I am unfamiliar with such as modem settings.
Identify Alternatives
- Food Place
- Computers
Evaluate alternatives in cost and benefits
Food Place
- Food is a need not a want
- Have to hire more staff
- Don't know anything much about the food/restaurant business
Computers
- More diverse ways of making money selling software perform upgrades selling hardware not just selling food.
- Less staff needed
- Personal Interest
Rank the alternatives
- Computers
- Food Place
Best Alternative
- Computers
Evaluate the consequences of decisions made
- We will need to hire fewer staff
- I will be doing something I enjoy
Collect and Select
Name your product Computers
= Specialising in Hardware and Software + Upgrades
- Location $500,000 minus expenses
- Include $150,000 worth of software
- Include $150,000 worth of hardware
- Include $100,000 worth of rental rates
- $100,000 saved money and additional costs eg. wages, savings, electricity,
Alternatives
- Coastlands is the main option unsure of the rental rates for Raumati South Shops and Lindale will only allow tourist-related businesses.
- The alternative is to set up near Lindale like Kapiti Internet Services which I will presume is the same rental rate since it is nearby.
Costs and Benefits
Coastlands for $100,000-450 advertising = $99550 I $400 per Sq. M per year
- 249 sq. M at the most or 6% of turnover
- Near other shops
- More Central
- Better Advertising
Lindale Downstairs for $100,000 I $200 per Sq. M per year
500 Sq. M at the most including electricity or rates More Isolated
Rank Alternatives
- Coastlands
- Lindale
Best Alternative
- Coastlands Costs and Benefits
- Won't be as Isolated
- Have better advertising
- Have to compete with Rialto Computing and Surelock Homes
- If staying at Lindale would only be competing with Kapiti Internet Services
- Higher Rental Rate for making decisions or 6 % of turnover
- Electricity not included in Coastlands rental rates
Why have you chosen this product?
Relating to my decision-making goal it is a personal interest. I have a general knowledge of knowing how to assemble a computer. This is a skill required to perform upgrades on people's computers in which I can set the price. The computer industry is a successful and growing industry that relied on offices, homes, and schools.
What factors did you consider when selecting the product?
The level of competition in the Kapiti Coast (lack of computer stores supplying software on the Kapiti Coast.
- Surelock Homes (Coastlands) supplies - electronic equipment, safety alarms, and some software (not much), some new computers (not much).
- Rialto (Kapiti Lights) (Software and Computers ) small shop.
- PC Challenge (Raumati Village) Upgrades and some software.
I won't need as much staff since I have a lot of computer skills I will probably need to employ a few people but not as many if I chose some kind of food/restaurant place.
Problems that may encounter when providing the product?
Lack of demand for some components. Poor demand for unpopular software. In some periods of the year, there is a low level of demand. (Christmas-January) is the busiest period. Competing with prices in Wellington. Some Wellington stores buy in bulk and get cheaper deals. Markup may be lower on their products.
Comments
Post a Comment