BX-14: Market Analysis and Strategies, Segmentation Analysis

NB: We do not resell your papers. Upon ordering, we do an original paper exclusively for you.

NB: All your data is kept safe from the public.

Market Analysis

The idea of starting BXIV came from the analysis of the men fashion industry and the brands in it, we analyzed that brands are offering these products for very higher amount that middle class cannot afford that, for that purpose we are putting our foot in this business, We conducted different surveys and researches for analyzing the market and the technological industry, for that we interviewed different people from different classes and got to know different pay scales of people, keeping in mind the average pay scales of people and the amount people want to spend on buying different products we are offering we have set the price of our products, and the most popular way of promotion in the city is billboards and that we are using for promotion, besides that the secondary promotion tool which attract a lot of consumer is media, we are using TV, radio, print media for the promotion of our brand, we also got to know by interviewing and giving people questionnaire that the innovation in a product is the thing that a product carries and forces people to go for shopping so we are also using this marketing strategy as promotion of our brand. For distribution purposes we would target the economic hubs of the city over there we would open our franchises and market our product from those particular areas of the city (Johansson, 1993).

Segmentation Analysis

Market segmentation is used as “a strategic marketing tool for defining markets and thereby allocating resources. Segmentation studies use statistical techniques called factor analysis and cluster analysis to combine attitudinal and demographic data to develop segments that are easier to target” (Dyrud, 2002, p. 23).

We have divided our groups on the basis that which segment of the population is in the most need of our product, so we analyzed that businessmen that is the corporate sector is in the most need of our product and we would be catering to them initially (Davenport, 1993).

Greiner Model

1^st Phase

The Greiner model basically starts with the growth stage of the product. Where the entrepreneur is too busy handling the important functions of the business and most of the communication that is taking place is informal because the number of employees is less when the business is new and growing and the rewards for extra efforts put in are given in the shape of stock options or profit-sharing. But as the organization grows older and there are more employees within the company so it becomes necessary that the conversation used should be formal, and the same sort of situation will be implemented during the growth stage of BX-14. Most of the time leadership crisis arises in this stage so it is necessary that bX-14 management should hire someone professional in order to eliminate this problem

Phase 2

This phase is basically related to the growth through the direction. This would be needed when our product BX-14 has achieved a lot of growth and the environment of our organization is more formal rather than informal. There are so many specifications regarding a product which is difficult to find out and it becomes difficult to manage everything. This is where BX-14 could face autonomy crisis and it is necessary that the power should be distributed among the members of the organization in order to make sure the smooth sunning of the business.

Phase 3

A lot of crisis arises in this stage when the middle management fails to indentify the growth opportunities for the business and all the important work decisions and important work are been done by the top management. In order to save BX-14 form this sort of control crisis it is necessary that all the different and separate parts of the business should work together.

Phase 4

The unorganized products of the business reorganize them into product group or services. What happens at this stage is that there an increased amount of bureaucracy in the company because of which the work becomes submerged. And as a result of it the growth of the company becomes slow or almost very slow. At this stage the BX-14 management should end the red tape crisis so that a new culture for the organization can be developed if any such problems are identified in the company.

Phase 5

This is the stage where the growth of your company takes place through collaboration people are working in teams and the rewards are given according to the performance given by the teams. Most of the times there are crisis of internal growth at this stage the BX-14 can only achieve the target of future growth by developing important partnerships with the other complementary organizations.

Phase 6

The last stage is about the growth of BX-14 through extra organizational solutions. At this stage the growth of BX-14 should continue through mergers, outsourcing, networks and other solutions involving companies. The growth of our company may vary between different phases. And the each phase duration of the growth period depends on the market in which they are operating.

Target Analysis

Our brand focuses on the business man mainly people from the corporate sector and as we are currently selling our product to the corporate sector or the business man so our target market is business mans. At present we are operating from china so currently we are just focusing on the business man of china. But b 14 is only currently focusing on business man in the future it will expand its target market and move towards students, workers and so on. Our brand identified the need of a portable device which has facilities of Bluetooth, scan, multilingual dictionary, remote output, voice input etc. So in order to carter that need of the people basically business man we decided to create out product which has all the facilities that they needed from the portable device. Our product offers all the facilities which make our product distinct from all the other similar sort of products. Some of the characteristics of our product are:

Blue Tooth, Scan, Multilingual Dictionary, Remote Output, Voice Input, Microphone and Memory Card, these are some of the characteristics that we are offering through our product to our target market which is basically the business man or in short the corporate world and look to offer it to everyone in the future.

Products and Services

Offering

We are offering a pen named BX 14 with a lot of multipurpose functions and characteristics.

BX-14

BX -14 is a multipurpose pen being offered by us. It caters the modern needs of the people which require mobility and multipurpose devices and instruments. Those multipurpose instruments include a lot of characteristics these characteristics are things like blue tooth, scan, multilingual dictionary, a remote input, a voice output, a microphone and a memory card. The pen also provides you with a facility to conduct conferences between individuals. This pen is currently targeted towards business a person that is the corporate world but its qualities are just not limited to them only this is a versatile product and in future we aim to carter other segments of population as well that is the students and workers etc. The product which has so many options usually have higher costs, the higher costs are usually because of the so many functions a small device is offering you. Because of the so many features of the product it results in higher manufacturing cost because of the usage of so many electronic parts. In the beginning the cost of the product will be higher but later on it will be lower as we will expand and target the other segments of the population. For e.g.: (A) Workers and (B) Students

Services (Return Policy & Exchange Policy)

The defected products can be retuned back to us within 1 week of purchase of the product. Product can also be exchanged within only 1 week of purchase of the product. Any time after that product will neither be exchanged nor returned.

Pricing

Our brand is a high quality product because of its features and characteristics and the mobility of functions it offers with the pen. Therefore the price of our product would be a bit higher in the beginning because of the electronic parts that we would be using in it. Since electronic parts would be used so it adds up to the cost of manufacturing and increases the cost of our product. But we would only be offering the product with higher prices in the beginning later on it the prices would be lower as we would move on towards other people other than the business man such as the workers and the students.

Place

As our brand is a high quality product as well as a highly unique one. So it will be a complete revolution in the market of multifunctional pens all around the world. It’s the right time to introduce our brand all around the world as it’s the era of innovations and technology. Our brand will be having its main center in China and will be having displacement centers all over the world. As we have been in the market for almost 10 years and have done great research about the multi-functional products so it’s the right time to enter in to the multifunctional pen markets as we see a lot of growth in this market as no such product like our brand has been introduced before.

Promotion

Promoting a product is the most difficult thing to do. It is necessary to know how to convince the customers to buy and have faith in the product. Similarly you should know the ways to persuade a customer towards a brand. Different companies use different way of promotion which includes the ATL activities (above the line) BTL activities (below the line and OTL (on the line) activities, as our main target market is business man and teachers and students, so we have to be very precise in selecting the promotion strategy, We will be having an ATL strategy to persuade the customers towards our brand, we will directly communicate to go with our targeted market through conferences and spokespersons.

People

People play the most important role in the success or failure of the brand. People are the one who actually make the marketer know where their brand stands and where their brand cans even faster grow. So understanding people and their needs determine the brand to perform in a certain level and way. Our brand focus on business mans and the teachers and students mainly. So we will be having different research methods to determine the needs & wants of these people.

Packaging

Packaging plays an important role as “a medium in the marketing mix, in promotion campaigns, as a pricing criterion, in defining the character of new products, as a setter of trends and as an instrument to create brand identity and shelf impact in all product groups” (Gomez-Mejia et al., 2008, p. 45). Packaging has to be the influencer at the point of purchase. It should play an important role to make the customer influence to buy the product. A packaging must have these characteristics in order to attract customers. We will be paying more attention on our product packaging by doing well in the following packaging characteristics. We will be having an eye catching appearance which typically youngsters respond positively to, we will be giving a lot of attention on the design shape and color of the packaging, it increases the post and the packaging will be very communicative so it can communicate and gain customer attention

Unique Selling Proposition

The unique selling proposition is the uniqueness of the product which differentiates itself from other products in the same product category. Our brand is totally a unique innovation itself. As there has not been any such product in the market yet. The multi functionality of our brand make it unique in the market and that our unique selling proposition.the multi functionality includes the features which are starting from a high tech blue tooth in the panthers a scanner in the pen, multi dictionary, a remote output, a voice input microphone and memory card. These features just make this pen so unique itself that itself it is a unique selling proposition.

Point of difference

The point of difference is the concept that every product has something similar which full fills the need but have some point of differences which makes them different from those competing products in the same product category. Our point of difference is the features we are installing in our product.

Point of parity

Point of parity is the similarities between the products competing in the same product category. The point of parity is with the other products are the efficiency of the pen in writing and as like other pens it also fulfills the basic need of a person of writing. Leaving the other features behind and focusing on the writing features ,like all other pen it gives you a smooth and comfortable writing and makes your writing experience more delightful just as you will feel by using the other features of the pen.

Marketing Strategies

Marketing Objectives

To occupy 20% to 30% share of the multi-function products’ Market.
To make considerable profits of the company (Probably 1,000,000 to 2,000,000 pounds).
To achieve market acceptance of our products totally. To bring profit to the company every year.

SWOT Analysis and Internal Performance Analysis

Company has enough resources and tendency to produce the product as per market demand.

Constraints Analysis

The company will only be facing the constraint of being global. Going global is not an easy task to do.

Marketing Mix

As mentioned above.

External

Customer Analysis

Business man and teachers and students are our customers, and according to their needs and wants we have designed our product

Competitor Analysis

Our product is so unique and distinctive that we are actually facing no competition in the market or we can say that we are entering in to the blue ocean market

Technological & Legal barrier

There is as such no technological and legal barrier with respect to our brand

Financial Plan

Starting the analysis of our financial plan we will start it with the analysis of our profitability ratios. In this we will analyze our profit and loss statements, balance sheet and our cash flow statement.

Increase/ Decrease is sales%= (S1-S0/S0)*100= (100,000-10,000/10,000)*100 = 900. It indicates that the sale in the current year has increased as compared to the least year. The rising trend in sales reveals that company product market share increased in one hand and on the other hand it reflects the satisfaction of customer over our product. Sales revenue of the company is treated as oxygen. The increase in sales also requires future investment and expansion of business activities.
Gross Profit to sales%= (GP/Sales)*100= 75% gross profit margin on the sales depicts the trading profit earned by the company out of sales but before meeting operating expenses ,interest, tax. It should be more than 30%. It also indicates that the difference between sale price and purchase cost or manufacturing cost.
Cost of Goods to Sales% = (GP/ Sales)*100= 25% it shows the cost of goods sold in relationship to sales. The management should try to control it in order to increase or maintain the gross profit margin out of sales.
Operating Expense%= (Op.Exp/Sales)*100= 14.23% it indicates the amount spend today on business operation for generating revenue. The increase in expense can only be justified if there is an increase in sales. The management should control the operating expense in order to earn reasonable profit/EBIT. Because operating expense in one of the important factors that the company should maintain in order to get higher levels of revenue from their earnings (Hill and Westbrook, 1997).
Sell distribution and marketing expense to sales %= (selling exp/ sales)*100= 1.92%. Selling expense directly relates with sales revenue and marketing operation. An efficient marketing operation based on strategic market plan yield increase sales revenue, sales promotion activities help in survival of company’s product in the market and maintaining its shares.
Admin Exp to Sales% = (Admin Exp/ Sales)*100= 3.84%. It basically measures the relationship between administrative expense and sales. Administration staff provides support services for managing the business activities. Administration Expense are also covered from sales revenue in order to have an effective, efficient office system admin Expense are incurred.
Net Profitability to sales%= (Net Profit/Sales)*100= 10.769%. Net Profit to Sales ration indicates the profit available for ordinary shareholders who are the real owner of the company.
Return on Asset= NP/ Total Asset=22.4%. It shows the rate of return on total amount invested in assets as per balance sheet. It is compared with market rate of return.
Return on Owner’s Equity= NP/OE=it measures the rate of return on total owner’s equity is equal to shares capital+ reserves+ retained earnings.

Know moving on to the next part of analysis of you cash flow, balance sheet and profit and loss account. The second stage includes the analysis of our liquidity ratios. These are very important form a company’s point of view and important steps should be taken in order to make sure that the proper ratio is maintained.

Current Ratio= CA/CL= 1.07. It measures the financial ability of the company to meet its shorter obligation and failing due on maturity immediately.
Working Capital= CA-CL=5000. Working capital in a business is treated as blood running in the veins of people. It insures the smooth running of business operations without any hurdles or bottle necks. If the working capital is not enough to support the business operation than sales cannot be achieved.
Asset Turnover= Sales/total Assets= 2.08. It measures the utilization of resources for generating sales revenue. The utilization of resources depends on management ability/ skills/ expertise/ planning, controlling, decision making. In order to generate maximum revenue management should use the resources in most efficient and economic ways. The management performance is measured on the basis of assets turnover.

The next ratio that we would be discussing is the debt ratio which also basically helps a lot to the company in decision making process and maintaining the creditability of the company (Katkin, 2005).

Debt Ratio= (total liabilities/ total assets)*100= 100. It measures thee claim of creditors on total assets. It also indicates the amount invested by the creditors in total asset of thee firm.

A company achieves its breakeven point when the total of it sales or revenue is equal to its total expenses or its cost. At breakeven point neither the company is making any profit and nor incurring any losses, so whenever a company is in this sort of a situation than it is said to be in a break even position. The calculation of the breakeven point is critical for any business because it is the lower limit for profit margins. There are many types of cost that has to be taken into consideration while calculating thee break even analysis, these costs are very important and must be considered when calculating the breakeven (Sullivan and Stevens, 2003).

The break even analysis of our company can be done by taking into consideration the total revenue that is being generated from the sales of our product and the total cost that is being incurred in the manufacturing of our product. Currently the total revenue generated by sales of our product is 262,000 and total cost in generating it is 232,000. So currently we are in a surplus situation at the moment we have surpassed are breakeven point and currently we are earning profit from the business. It is because the total revenue we are generating from the sales of our product BX-14 is quite more than the cost that is being incurred in its production. The total cost “includes all the expenses and cost of sales that were being incurred at the time, after or during the production or sale of our product BX-14” (Miller, 2006, p. 30).

break even

Leadership Style

Leadership style is the “manner and approach of providing direction, implementing plans, and motivating people” (Miller, 2006, p. 32). There are three major leadership styles which are

autocratic
participative
delegated.

The autocratic style is not favorable in now a day’s environment by not including the employees in the decision making process, the participative style is letting the employees to participate but still taking the decision him or herself. The declarative style allows the “employees to take the decision.In our organization well be having a participative style to follow” (Miller, 2006, p. 46).

Summary

It is quite evident from the marketing and financial analysis of BX-14 that it is one of the greatest products with a great future a head of it. The characteristics of this product differentiate it with the rest of the products that are available in the market. The main competitive advantage that this product holds over all the other products is that it has an added feature of mobility. It is easy to carry anywhere you like and the extra features it has Bluetooth, scan etc., which makes it a far better product then the rest of the other that are available in the market. One of the other great strengths of this product is the variety of functions it holds. Its convenience to take it anywhere you like is also one of the greatest strength of this product. It is also provides you a lot of opportunities, the first is that it is a progress for the collection of multi-function and secondly it is progress for the universal of technology in society and thirdly that is one of the boldest technology for the transformation of a pen. Break even analysis also indicates that there is a cash surplus with the company which shows that BX-14 is currently operating in a very profitable manner (Gomez-Mejia, et al., 2008). It shows that the future aspects are bright, and currently everything is in the favor of the company and the product BX-14

Reference List

Davenport, Th. (1993). Process Innovation: Reengineering work through information technology. Boston, Harvard Business School Press.

Dyrud, M. A. (2002). Global Contexts: Case Studies in International Technical Communication. Business Communication Quarterly, 65(4) 127-135.

Gomez-Mejia, R.; David B. and Robert C. (2008) Management: People, Performance, Change. 3rd edition. New York, McGraw-Hill.

Hill, T. & R. Westbrook (1997). SWOT Analysis: It’s Time for a Product Recall. Long Range Planning, 30 (1): 46–52.

Johansson, H. J. et al. (1993) Business Process Reengineering: Breakpoint Strategies for Market Dominance. Boston, John Wiley & Sons.

Katkin, K. (2005) Communication Breakdown?: The Future of Global Connectivity after the Privatization of INTELSAT. Vanderbilt Journal of Transnational Law, 38(5), 1323.

Miller, K. (2006) Organizational Communication: Approaches and Processes. 4th edition. McGraw-Hill Company: London & New York.

Sullivan, A. and Steven S. (2003) Economics: Principles in action. Upper Saddle River, NJ, Pearson Prentice Hall.

Click Here To Order Now!