Lorraine has received a lump sum of R500 000.00 from her retirement fund. She intends to use these funds to start a student accommodation business. In order to start this business, Lorraine would need approximately R1 million, funds are needed for building the students accommodation apartments and to register with various regulatory bodies. She has to source additional funding in order to realise this dream. In the business plan, Lorraine has outlined the following: • Accommodation will be offered ONLY to students in Cape Town, Johannesburg, Mpumalanga and Polokwane. • ONLY females will be approved to reside in these houses, between the age of 18 - 35. • Marketing of the business will be done on community Radio stations only at the four mentioned cities. • It is going to be a family business, Friends and relatives are in support of the idea but are not able to support the business financially There are three types of Market coverage. Explain the type of market coverage applicable to Lorraine’s business. Justify your answer. Tip: Your justification should include the description of the market coverage identified and the rationale behind your selection.
Lorraine has received a lump sum of R500 000.00 from her retirement fund. She intends to use these funds to start a student accommodation business. In order to start this business, Lorraine would need approximately R1 million, funds are needed for building the students accommodation apartments and to register with various regulatory bodies. She has to source additional funding in order to realise this dream. In the business plan, Lorraine has outlined the following:
• Accommodation will be offered ONLY to students in Cape Town, Johannesburg,
Mpumalanga and Polokwane.
• ONLY females will be approved to reside in these houses, between the age of 18 - 35.
• Marketing of the business will be done on community Radio stations only at the four mentioned cities.
• It is going to be a family business, Friends and relatives are in support of the idea but are not able to support the business financially
There are three types of Market coverage. Explain the type of market coverage applicable to Lorraine’s business. Justify your answer.
Tip: Your justification should include the description of the market coverage identified and the rationale behind your selection.
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