Introduction: Market Characteristics
The market in question can be characterised by rather high rates of saturation. A closer look at the existing large companies and the competition rates will reveal that our company will have to operate in an oligopoly market. Indeed, the latter is dominated by several major companies, which define the pricing for the units, the quality of the goods and services, etc.
Industry Sales: Analysis and Forecast
Judging by the performance rates that the company has shown over the past few years, it is safe to say that the organisation is going to withstand the problems related to competition in the global environment and deliver an efficient performance. Seeing that in the middle of year 8, the company’s penetration into the target market approached 65%, it will be reasonable to suggest that the polynomial regression for the yearly forecast for the target market will reach the 65% rates in terms of its monthly performance, with deviation rates equalling R = 097. The previous sales record shows that the company is going to deliver the following results as far as its industry sales are concerned:
|Industry wide marketing||18.2m||18.4m||18.5m||19m|
|Industry wide sales revenues, $||74 986||81 353||91 812||153 386||180 145||200 688||226 560||249 216||411206||678490||1119509||1847190||3047863||5028947||8297808||13691383|
Opportunities and Threats: New Entrants and Innovations
Among the key threats that the organisation may possibly witness while thriving in the global market, the concern regarding the emergence of new entrants should be mentioned. Despite the fact that the market is obviously dominated by only several major organisations, the product in question may be improved and marketed in a new and superior manner by the recent entrants; herein the key threat to the prosperity of the organisation lies (Kotler 2012). In addition, unless the company adopts an innovation based approach to its R&D, gaining any significance in the target market does not seem a possibility, as the key leaders have already saturated the market with the product in question.
Market Conditions and the Strategy for Dealing with Them
As the analysis of the target market shows, the key difficulty concerns the prediction of the actions that the potential customers may take. Questionnaires and surveys will be designed for addressing the issue.
Demand Forecast: What Customers Want
As far as the demand within the target market is concerned, the table below shows that the company is going to be quite successful in the target area. Moreover, the premises for selling 100% of units will be created once the key tendencies in the demand within the target market are identified and become easily predictable.
The fact that the shipment to other areas has been cut down to 0% in the fourth quarter of Year 7, though, is an obvious reason for concern. It is obvious that the demand within the target market has not been taken into account when promoting the product to the potential clientele of the company. Hence, it will be reasonable to suggest that the marketing strategy should be reconsidered and a more detailed analysis of the changes in the demand should be carried out.
Conclusion: Expectation and Recommendations
Seeing that the company has been displaying an impressive performance over the seven years of its existence in the target market, it will be safe to assume that it has a potential. The issue regarding demand and the opportunities for succeeding in other areas, however, need to be explored in a more careful manner.
Kotler, P 2012, Marketing management, millennium edition, Prentice-Hall, Inc., Upper Saddle River, NJ.