Category: Market Research

Executive Summary

A research is carried out in this report whether entry into Eastern Europe is a viable proposition or not. In this report, we have targeted Ukraine for our research with detailed background of the country and market analysis. We have gathered information through secondary resources regarding the existing watch and clock industry in this country. Furthermore, based on the acquired information regarding this market we have presented a possible marketing mix and mode of entry which would assist the company in a better way.

The major findings in this report are:

• Ukraine’s watch industry is booming for several years.
• Ukraine’s watch industry is dominated by Swiss watches and few local companies.
• Ukraine’s economy is growing at a good rate and overall conditions are favorable to new businesses.

In conclusion, following recommendations have been put forward:

• The company should consider entering Ukrainian market through export.
• The company should also enter Ukrainian market for its new fashion label via joint venture or foreign direct investment.
• The company should diversify its market by entering into Ukrainian market which is favoring new businesses and specially watch industry.

Terms of reference:

1. The company: Company Ltd. (Based on assumption)
2. Current Market: Hong Kong (Asia)
3. Target Market: Ukraine (Eastern Europe)
4. Product: Wrist Watches and Clocks

Introduction

The Company Profile

Company Ltd. was established in Hong Kong in 1975 within a small factory premises by Mr. XYZ who later died in 1997. The company has developed a wide range of wrist watches and clocks to serve different market segments. The company offers quality watches in a competitive pricing and in a timely delivery schedule. Until presently the company has focused on the local market and neighboring countries including China, South Korea, Taiwan and Indonesia.

The company has grown from mere sales of US$13,000 in its earliest year to remarkable sales of US$ 5.4 million during the last year of 2007. Most of the revenue generated by the company has been through direct exports or sales to local buying houses exporting to countries overseas. The company is financially strong as the director of the company has diversified its business into other area of electronic gift items.

Objective

The company aims to expand its watch and clock business to regions beyond Asia. For this purpose the company is targeting the Eastern Europe which includes countries such as Lithuania, Bulgaria, Estonia, Ukraine, Romania, Bosnia, Albania, Serbia, Macedonia and Slovak Republic.

Through this research, a potential target market of Republic of Ukraine is examined. A complete country, political, cultural, legal, competition and economical analysis is carried out with possible market entry modes and marketing mix which company may adopt for a successful entry in the Polish market of watches and clocks. Furthermore, a brief financial projection is developed with the help of the company’s finance manager.

Research Methodology

For the purpose of this research, secondary resources for information regarding Republic of Ukraine and its market are accessed. The information provided by these secondary resources is subject to certain limitations due to time limitations and inherent inaccuracy which may be present.

The research will be carried out with a brief detail of the company’s current product mix, its current market experience and analysis of its production and financial capability to enter into a different market.

A detailed analysis of Republic of Ukraine and market conditions prevailing in the country will be examined deriving conclusions upon the options available for the company to make entry into this market and the marketing opportunities which the company faces.

The Company’s Product Mix

The company started its business from simple analog wrist watches and later on developed products with new technologies. The company is currently engaged to cater two sub-markets within the industry of watch and clock manufacturing. These sub-markets are as follows:

Wrist Watches

The company is manufacturing wrist watches for both gents and women. These wrist watches are further classified into kids, teenagers, adults. The company manufactures different models for each classification developing newer designs every year and retaining only those designs which prove to be successful.

A research and development department is in a continuous process of developing new designs and technology. More successful models are offering technologies such as radio, navigation, blood pressure and sugar check up and even mp3. The company has recently launched a fashion label for its new range of wrist watches which has received tremendous appreciation from the market participants and is expected to go in production early next month. This would take the company’s products to the next level i.e. prestigious watches.

Clocks

The company manufactures different types of clocks and has a wide variety of models. These types include wall hung, table, floor standing and pocket clocks. The models of clocks are less changing and are well accepted by the buyers. A research and development department is in a continuous process of developing and improvement of designs and technology. The most popular models are table clocks and floor standing cathedral style clocks.

SWOT Analysis

Strengths and Weaknesses

1. The company is financially strong.
2. The company has been in watch & clock manufacturing and distribution business for 33 years and has shown steady growth rate.
3. The company has its own state of the art production facility.
4. The company has its own fully integrated research and development department
5. The company is serving to various markets in the region.
6. The company has launched its fashion label which has received tremendous response during fashion week and watch & clock exhibition in Hong Kong.
7. The market in Hong Kong and its neighboring countries are becoming saturated.
8. The company has yet to enter other markets than Far Eastern Asia.
9. The company’s production costs are increasing as the production facility is based in comparatively expensive region of Hong Kong.

Opportunities and Threats

1. The company’s new sport and specific function watches are getting increasingly popular and the company has an advantage over its competitors.
2. The company’s new fashion label is yet to go into production however the company has the opportunity to enter into luxurious watches.
3. The traditional floor standing clocks manufactured by the company are popular in the western countries thus possible markets available.
4. The company can shift its production facility to a cheaper region such as China.
5. The company has developed lines in electronic gifts which also gives opportunity for the company to enter western countries.
6. The market of Hong Kong is becoming saturated.
7. Tremendous pressure from manufacturers of Chinese region to produce low cost watches.
8. There are difficulties in bringing a new label with so much competition not even by local companies but also international brands.

Market Strategies

Market Selected

The company’s current markets have been Hong Kong and its neighboring countries. The culture and values are shared to some extent amongst these markets however the company has not been able to enter the European market. The European market is a big market with watch and clock manufacturing industry highly competitive and concentrating in the Central and Western Europe especially in countries like Germany, Austria, UK and most importantly Switzerland.

With the launch of new label and competitive technology the company believes that it is the right time to enter into the European market. With the intention of making its presence in the European market the company seeks thorough research of the possible potential markets in the Eastern Europe. For this purpose we have selected Republic of Ukraine as the subject country of our research.

PESTLE Analysis

Politics

The country of Ukraine is situated in the east side of Europe bordering the Black Sea, between Ukraine, Romania, and Moldova in the west and Russia in the east. The country is the second largest in the Europe. The official language is Ukrainian however Russian also is widely spoken and understood. The history of Ukraine is enriched with the economic activity this region has been able to generate over centuries due to its coastal line.

Ukraine was previously part of the Soviet Union during which this region was creating 1/4^th of the agricultural output and was considered as an important region for enforcing regimes policies over the rest of the Europe. However, in 1991 the parliament of previously Ukrainian National Republic reinstated the resolution for independence from the Soviet. On 24 August 1991, the country declared its independence.

The country is a republic under a mixed semi-parliamentary led by prime minister and semi-presidential moving away from the Communist regime of the Soviet Union. The political situation is unstable evident from the recent opposition claims of rigged elections and subsequently change of presidents.

The local self-government is allowed however the appointment of the heads of regional and district administrations is done by the president. The country has established separate legislative, executive and judicial branches. However, the corruption-stricken systems are yet to be fully functioning with their desired objectives.

Social

The population of Ukraine is almost 46 million and is well proportioned with 47% constituting of men and 53% women (See Appendix II). The workforce that is considered from the age 16 years to 60 years comprises the most of the population making more than 60% of the population. However, the worrying point is that the country is facing with a negative growth in the population and the government is encouraging families to raise more children.

Environment

The culture and local customs of Ukraine are very much influenced by Christianity. Various events around the year are being celebrated in view of Christian traditions. Also the role of gender is quite traditional with men being the major work force. It is apparent from architectural designs, crafts, music and art that the cross-border influence from neighboring countries and communism is obvious over the culture of the country.

Ukrainian constitutions permits accessibility to free education to all citizens and a certain level of education is compulsory. The emphasis on education system for all and with standards meeting those of developed countries has heightened the literacy amongst the nation indicating rates of 99.4%. The country operates a majority of state schools, colleges and universities where private institutions are also making their place in the betterment of the nation.

Economics

Ukraine was considered as the republic with favorable economic conditions in comparison to other parts of the Soviet Union. However, after the declaration of independence the country suffered tremendous downfall in its economic growth. The country suffering from recession lost more than half of its GDP in its early years from 1991-1999 and inflation was recorded in 5 digit figures.

The overall economy was falling apart almost 40% reduction in industrial output since 1991 which led to increase in crime and corruption and nationwide protests and strikes. However, near the end of the 1990s the economy began to stabilize and different economic sectors started to show positive growth. The government started to liberalize the economy by bringing in significant structural reforms. However, the dependence of the country for its energy needs on Russia still makes Ukrainian economy vulnerable to external shocks.

This was apparent from a recent row between the two countries over the pricing issue which led to a temporary cut off of natural gas. This has led to rethinking of the government over the fulfillment of the energy requirements and steps are taking place to draw energy from another source or develop infrastructure to utilize wide deposits of natural resources embedded in the grounds.

Since 2000 the country has enjoyed an excellent growth rate averaging above 7% (See Appendix III). The country has a broad agricultural base and sufficiently produces quantities of meat, milk, grain and vegetables. The country has a diversified industry with steel industry being the major one having large customers in the mining industry making it a major export in addition to food products.

Sources: CIA Fact Book 2008, Yahoo! Finance.

Due to the location of Ukraine, the country enjoyed the business flowing from Asia and rest of the Europe to Central Asian countries which declared independence from the Soviet Union. However, the country still needs to make improvements in the fight against corruption, developing of financial markets and reforming legislative framework.

The unemployment in the country still surges to high levels and population living under the poverty line is relatively high almost 38%. The economy still faces high inflation rate of 12% mainly due to high energy prices and current account deficit. The economy of Ukraine is expected to grow on a steady pace in the years to come with foreign investment coming in the country however there is uncertainty over the government’s plans to reinstate tax, trade and customs privileges which were removed completely in 2005 and to maintain restrictive grain export quotas.

Legal

In order to safeguard and promote industry cooperation the Ukrainian Watch Association was established in the year 2006 (Serebryanskaya, 2007) with the support of market participants which has helped the industry in many ways. It allowed the participants to face up the difficulties in a unified manner including those pertaining to influencing state institutions to support the industry.

It also provided means of training consultants and craftsmen enabling them to design and produce watches which are of excellent quality and comparable to their counter brands available internationally. It also co-organizes the annual specialized watch exhibition ‘Kiev Watch Salon’ which itself is getting attention from worldwide participants and has now become a real business forum where distributors can meet their retailers and customers, conduct seminar and training courses.

Ukraine – Market Analysis

When Ukraine declared its independence it had no watch industry in the country. However, in 2001 a factory was established with first Ukrainian own watch brand ‘Kleynod’ which received great support from the buyers. Since then the Ukrainian watch market has shown great potential and is developing at a rapid pace.

There is a strong demand for watches in different price segments and has led to greater interest for the producers to invest in this industry. The industry has been able to generate good revenues for the producers, distributors and retailers of watches. The technologies used by the local industry are comparable to international standards and have been upgraded according to new requirements.

However, the participants are under immense pressure to compete with the international brands offering a range of different brands of all styles and value. The import of international brands watches and clocks have increased tremendously effecting the growth of the local industry. More prominently the imports from Swiss watch industry has shown high growths.

In 2005, Ukraine stood at 30^th position for the importation of Swiss watches and by 2006 it rose up to 24^th positions showing a growth of 50% compared to last year. This growth further increased in the year 2007 reaching 29 million Swiss Francs in the first 5 months. The appetite for luxurious watch brands has pushed businessmen to pay more than US$1,000 on an average for purchasing such watches.

However, at the same lower range priced watch and clock brands such as Casio and Romanson have seen a greater delight by the majority of customers who couldn’t afford high prices watches. The sales of such brands have increased several folds and will continue to do so in the coming years. All of these factors have put newer challenges for the local industry which has to compete in all respects with the foreign brand.

The trend in the market is becoming increasingly popular for new designs. The electronic items such as mobile phones and PDAs have affected the sales of watches but as the watch and clock manufacturers are integrating the new technologies in their designs the trends are changing and watches with additional features are becoming more popular. At the same time luxury watches and clocks have their own prestige and style which influence buyers’ willingness to spend more money.

The market for watches and clocks is well supported by the growth in the overall economy. Ukrainian economy has shown healthy growth rates since 2000 and has sufficient investment by locals and foreign investors. Thus, keeping healthy projections regarding the country and its economy it is expected to do well in the near future.

Modes of Entry Into Ukrainian Market

The company based in Hong Kong aims to enter the Eastern Europe market. There are several mechanisms though which the company can make entry into the foreign market which would be discussed in the following with their relative advantages and disadvantages. However, the most important objective in deciding which mode of entry to be used is that the launch in the foreign market should be revenue generating and long term.

Exporting

The company can enter into Ukraine market by exporting from Hong Kong. This will allow the company to use its current production facility and focus on the marketing and direct sale of its watches and clocks in Ukrainian market. This method of entering into a foreign market is a well tried and established method of reaching the desired objectives. There is little adaptation required for watches and clocks therefore exporting can speed up entry and minimizes risks.

By exporting to the target country there is no need for the company to make substantial investment in foreign production facilities. The export arrangement will involve in entering into import and distribution agreement with a local company in Ukraine which will place order for the company watches and clocks and sell through its own outlet or area sales agents.

However, the company exports will be subjected to the custom tariff imposed by the government of Ukraine on imports under the classification covering watches and clocks. This will also incur transport costs which may vary as per available vessel. Furthermore, this will limit the extent to which the company’s products can gain access to neighboring countries of Ukraine and any support which may be available to local producers in that country.

Licensing

The company can enter into Ukraine market by entering into a licensing agreement with a local producer say for example Kleynod or others which will permit this local company in the Ukraine to use the property of the company. The company can act as a licensor and local producer a licensee. The process can allow market entry at greater pace and risks are reduced. The property refers to intangible assets such as trademarks, patents, and production techniques.

The licensee will pay a fee in exchange for the rights to use the intangible property and possibly for technical assistance. This could also allow the company to perform entry on a trial basis where the actual size and conditions of the market are uncertain.

The investment by the company will be minimal as the production facility of the local producer will be utilized and only the technology and designs will be shifted for a payment in return. The possible return on investment can be very large from licensing if the adaptation of the property proves successful.

However, there is a possibility that the returns from manufacturing and marketing the product by the company itself may be lost. Furthermore, limited time agreement or any conflict between the involved companies causing the agreement to fail may lead to loss of intangible property which may be very important for the company’s future.

Joint Venture

The company can enter into a joint venture with a local investor in Ukraine. Through joint venture the company can achieve the objectives of market entry, risk-reward sharing, and technology sharing, joint product development and at the same time conforming to government regulations.

However, there are certain success factors which the company should understand before deciding upon joint venture which may include strategic goals between partners, size of partners and ability of partners to learn from each other while protecting their proprietary skills. Such alliance may also require consideration regarding ownership, control, length of agreement, pricing, technology transfer, local firm capabilities and resources and government policies towards such alliances.

The joint venture can also run into problems if the partners enter into conflict over decisions regarding new investments, mistrust over proprietary knowledge, performance uncertainty, cultural clashes and lack of parent company’s support. Therefore, joint ventures with a local company in Ukraine would require careful understanding of the terms of such alliance and consequences of any failures.

Foreign Direct Investment

The company can also carry foreign direct investment in the target market of Ukraine. This would require investment in the ownership of production facilities in this market. This would involve transfer of resources including capital, technology and personnel. Foreign direct investment can be made through acquisition of the existing production unit or setting up a new facility.

This is a time consuming requiring heavy start up investment and is a riskier proposition with uncertainty regarding the market and political conditions in the target country which till now have been to some extent unstable. Furthermore, with Russia becoming dominant player in the region imposes new challenges for countries which declared independence from the Soviet regime in 1990s. This would require more commitment and management of local resources may be difficult to achieve.

The company could however practice greater control in the operations and adaptability of the product to the trends in the target market become more achievable. The sales can be far promising and a wider market including neighboring countries such as Russia, Poland and Lithuania which are also recording good growth and higher income amongst their population.

Implementation

From the above, it is therefore suggested that the company may enter the target market of Ukraine through export. The ‘Kiev Watch and Clock Salon’ provides a good opportunity for the company to participate and discuss with the interested businesses which may be willing to place order for the company’s products. The company can then produce the ordered product in its current production facilities and focus more over marketing and distributing in the best possible manner in Ukrainian market.

However, for the fashion label which will go into production next month the company could enter into a joint venture or through foreign direct investment to open a watch boutique in Kiev (the capital of Ukraine). By doing so the company would be able to differentiate the two product categories. Through export of traditional and technology supported watches and clocks could be made through an importer in Ukraine whereas to give more focus over the fashion label and comparatively expensive range the company could apply a different approach.

Marketing Mix

As prescribed in previous section, the company should enter into Ukraine’s watch and clock market through exports it should devise its marketing mix accordingly.

Product

1. The company would offer wrist watches and clocks to Ukrainian market.
2. The models of wrist watches would include simple analog and digital offering new technologies and design.
3. Both modern and classical designs would be offered to the market.
4. Fashion labeled product would be offered separately from the existing product lines.
5. New designs would be offered in light of the initial market survey or response from the local business contact.
6. As there are no legal conditions regarding the design therefore no alteration to the existing designs would be made.
7. Watches and clocks would be offered in a new distinctive packing.
8. Fashion Label would be offered in a well designed packing which would be uniform for all markets including this target market.
9. Existing product lines of watches and clocks would be offered with product international warranty for 1 year.
10. Fashion labeled product would be offered with 2 years warranty with full servicing for 1 year.
11. The local business is expected to have sufficient knowledge regarding repairing and servicing of watches and clocks. However, maintenance manual booklets would be supplied with the product and troubleshooting manuals would be supplied to the local business operator.

Price

1. Pricing strategy would be completely formulated based on the production cost plus profit margin plus transport cost plus import tariff plus cost of any government restrictions.
2. There is a big proportion of Ukrainian market which can afford watches between US$10-US$150 therefore more focus would be made on those models which fall between this price-ranges.
3. Fashion label products are to be priced uniformly across different market segments with adjustments to import duties and taxes.
4. Pricing would be made in view of the completion existing in the market.
5. In the initial period, lower margins would be considered for the existing product line in view of making an entry into Ukrainian market.

Place

1. The target market is Ukraine and possible entries into the neighboring countries.
2. The targets of the existing line of wrist watches are kids, adults and women.
3. The targets of the existing line of clocks are household buyers which may include both male and female customers.
4. The local business should be based in Kiev and it should be financially strong company.
5. The local business should be existing distribution lines across the country. Additional preference would be given to that business which has experience of doing trade with neighboring countries and have solid contacts in those regions.
6. The local business should be reliable and which should be trusted by the customers for many years.
7. For fashion label products a watch and clock boutique to be opened in Kiev.
8. The ideal location for such boutique would be Kiev High Street which has various branded stores and good visitors’ turnover.

Promotion

1. The company would enter into Ukraine market via exports of its current product lines, therefore, the main focus would be marketing of its products.
2. The company would approach either directly with marketing agencies or would direct the local business to perform marketing activities.
3. The marketing activities would involve placement in trade listings, newspapers and other watch & clock magazines.
4. The company would also participate in Kiev Watch & Clock Salon.
5. The company would display its products and take part in different seminars to promote its product.
6. The company would seek to arrange a fashion show to promote its fashion label.
7. The company would seek to launch a promo for its boutique with invitations to businessmen and other possible clients in the market.
8. The company would offer discount on different Christianity events including Easter Eggs Day, Christmas and New Year’s Day.
9. The company would participate in organizing young people talent search for designing of watches and clocks which the company could later adopt as its product.

People

1. The prime target of the market population for fashion label is 28-60 years.
2. The prime targets of the market population for current product are kids and adults.
3. There are more men customers than women. Therefore, they more focus on the technical aspects of watches
4. Ukrainian population is much more experienced in the watch industry therefore careful and targeted approach would be beneficial to influence customers’ choice.
5. The customers almost 60-70% are more inclined towards classical designs while remaining prefer sport and unusual models with specific functions.
6. The market segment willing to pay between US$1,000-US$3,000 for a luxurious watch is the prime target for company’s fashion label.

Financial Considerations

The company should consider the following financial considerations before deciding upon the entry into targeted market of Ukraine.

1. Participation fees in Kiev Watch and Clock Salon 2008 and Sampling Costs for display at the exhibition and distribution.
2. Pricing Strategy incorporating the transport costs, export benefits and cost of import duty.
3. Terms of payment and other modalities to be discussed and offered to the local business in the target market.
4. The Ukrainian market is expected to grow in view of its watch & clock industry. It has shown almost 50% increase over that year and is expected to grow with greater appetite from visitor and neighboring countries.
5. The company should expect to achieve good profitability from its current product line. However, fashion label would require more time from achieving return on investment.
6. The company should have a contingency plan regarding failure of any arrangements which the company may consider.
7. The company should set aside a marketing budget of US$75,000/- for Ukraine market.
8. The company should invest US$200,000/- for its fashion label either through joint venture or foreign direct investment.

Conclusion

It is therefore concluded that Ukraine presents itself as the next watch & clock industrial region of the Europe after the Swiss watch industry. However, the market is competitive where various international brands have already made their presence and are making excellent business. This market represents two divisions of population that either low income or big spender businessmen. Therefore, there is a great potential for the company to launch both its current product line and its upcoming fashion label in Ukraine.

It is also suggested that export presents the most viable approach to the market however a different approach of joint venture or foreign direct investment could be made for the company’s luxury product line. The company has the experience and is financially strong to enter into a market which may be largely different on cultural and market conditions but a market worth taking risk.

Thus, the objective of this report is served by detailing a complete analysis of the target market i.e. Ukraine along with the company’s analysis and brief financial considerations.

References

Bennett, R. Blythe J. & Alder H. (2002). International Marketing: Strategy Planning, Market Entry & Implementation. Kogan Page Publishers.

Central Investigation Bureau. (2008). Ukraine. CIA Fact Book. Web.

Fletcher, R & Brown, L. (2008). International Marketing: An Asia-Pacific Perspective (4th edn.). Frenchs Forest, NSW, Australia: Pearson Education Australia.

Serebryanskaya, E. (11 Oct 2007). Market Focus Ukraine. Web.

Yahoo! Finance. (2008). Currency Converter. Web.

Introduction

The purpose of this assignment is to compare market research tools. Companies can conduct marketing research in many ways, and different tools are currently available to aid their research efforts. Not all tools yield the same outcomes when used and, therefore, it is imperative to compare tools. Specifically, for this assignment, the Market Research Database from the U.S. Commercial Services and the Market Analyses provided by 2016.export.gov are compared.

The Company

JXG is one of the leading US medical equipment suppliers globally. The company is now more than a century old with its vision of improving healthcare outcomes for patients. The company concentrates on diagnostics, biosciences, and other areas of medical devices. Since 2015, JXG has focused on acquisition to improve its presence in the global markets. It mainly targets complementary firms to provide new improved services to clients. The company focuses both on the solutions and on modes of delivering them using its qualified personnel for the best outcomes. It leverages expertise from acquired firms to introduce new ideas and products for customers and use novel ways to assist patients to be healthy and safe – a new era in healthcare service delivery. JXG has known for diabetes care; medication management solutions; medication and procedural solutions; pharmaceutical systems; biosciences; diagnostic systems; and preanalytical systems. The company’s purpose is to improve the world of healthcare services and outcomes.

The Market Research Data Base

The U.S. Commercial Services Site

Kenya is an appropriate country for the company. The government through the Ministry of Health and other government agencies delivers more than half of the country’s healthcare services. Nonetheless, the government facilities and other agencies can hardly meet the growing healthcare needs. As such, other providers, including private facilities, NGOs, and faith-based organized supplement healthcare services in Kenya.

The country’s healthcare system is under transition, courtesy of a four-year-old devolution system of government. Thus, there would be community providers, primary care providers, county referral services, and national referral services.

The current system is characterized by variations in the distribution and quality of care. The best facilities are found in the capital city, Nairobi, and some other parts of Central Province and North-Eastern Province are depicted with poorly facilities or none at all. While the government intends to address these challenges using the Managed Equipment Services, all the 47 county governments have an opportunity to improve their healthcare services because healthcare services have been devolved. This ongoing change offers a massive opportunity for all counties to equip their healthcare facilities with state-of-the-art medical equipment.

JXG Medical Equipment, as a US medical equipment supplier, is in an excellent position to grow its market share in the country because of its technical competitive advantage. Kenyans regard other products, especially from China, as generally counterfeit or sub-standard, but they trust brands from the US and other European countries. Kenyan consumers are attracted to the high quality and reliability of the US medical equipment. However, medical equipment from the US is usually perceived as expensive relative to other competing countries. Currently, the main private sector hospitals are extremely focused on modernizing their medical equipment inventories. Additionally, government healthcare facilities are expected to engage in the acquisition of new equipment because of improved budgetary allocations and the growing demands for better facilities. At present, many public health facilities do not have regular medical equipment, and many patients that require specialized care often fly to India and other locations.

The government intends to spend over USD223.4 million on medical equipment for the diagnosis of chronic conditions, including cancer. Cancer-related deaths and other deaths associated with chronic diseases continue to rise in Kenya. Lack of adequate facilities implies that some patients have to wait for over two years before they can get the needed care, leading to many terminal cases and deaths.

Expansion Approach

The most effective entry into the Kenyan market is to acquire and/or partner with a local provider (Hernández, 2015). This strategy would give JXG a competitive advantage over other firms. Notably, Kenya is a country that has experienced the rise of ‘tenderpreneurs’ in the last three years, and, thus, without a local partner, JXG may be frustrated in its expansion efforts (Nsehe, 2015; Ofili, 2016). A local partner would assist the company to navigate dynamics presented by such market actors.

The Buyusa.gov Site

This site declares that the United States is open for business. It allows US companies to find the best partners in Kenya across different fields. In this case, JXG Medical Equipment would rely on this site to find the best local Kenyan companies looking for US medical equipment suppliers, meet partners face-to-face, and take part in trade shows. This site also assists US companies seeking to export for the first time to Kenya. Additionally, it provides physical contact addresses, locations, names, and contacts of persons responsible for specific industries in Kenya. The contacts are considered professionals and specialists who guide interested local companies to identify and develop the right requirements for foreign markets.

Services offered at the site ensure that US firms can connect with local Kenyan companies displaying their products and services at various trade shows. They can further provide matching services, arrange face-to-face meetings or video conferences with potential pre-screened US suppliers. Overall, this site helps US suppliers to meet potential Kenyan firms.

Expansion Approach

Essentially, the Buyusa.gov Site offers opportunities for partnership between local Kenyan firms and US suppliers across various industries. In this case, JXG Medical Equipment would get the best local partners organized by industry specialists.

Most studies now confirm that Kenya can better fight its healthcare challenges through partnerships with other global actors perhaps due to limited budgets, lack of better facilities, expertise, and growing cases of chronic conditions (Mohajan, 2014; Moscou & Kohler, 2017; Njoroge, Zurovac, Ogara, Chuma, & Kirigia, 2017).

A Better Site for Marketing Research Information about the Company

For JXG Medical Equipment, the site, the U.S. Commercial Services Site, Export.gov offers more detailed information on the industry than the site, Buyusa.gov. Notably, Export.gov presents data for any interested investors in the healthcare industry of the country. JXG Medical Equipment can use these data to understand changes in the market, the expected market size, more lucrative counties, and factors driving such changes in the sector and ultimately make informed decisions.

It is however imperative to recognize that both sites are reputable but present their market research information in different ways. While Buyusa.gov concentrates on creating partnership opportunities for US exporting firms using trade shows and other methods, Export.gov is more concerned with presenting figures to any interested stakeholders, particularly the US importers that may wish to learn more about the healthcare sector in Kenya. Additionally, Export.gov assists US companies to circumnavigate the network of different government offices and deliver the required responses to companies. Buyusa.gov requires interested in Kenyan local firms to get in touch with specific market professionals for further information before decision-making. On the contrary, export.gov allows users to decide whether the market is good or not based on the presented facts and reference materials.

Fact-Checking the Accuracy of the Site

Information presented on the site, Export.gov reflects the work of the US government agencies, implying that the source is from reputable authorities. The Department of Commerce on global trade issues works with nearly 20 other offices to provide information presented on the site.

Additionally, Buyusa.gov presents information collected by more than 111 offices across the American Continent. The site claims that is the chief US agency completely committed to advancing the US business interests overseas by helping the US companies to export to Kenya and other parts of the world.

More importantly, it is important to read the sources provided by these sites. They have more details about the information presented. Thus, when there is a need to review specific information or a controversial claim, the company would refer to the sources cited for fact-checking. The primary sources used, their effective usages, credibility, and reliability are more relevant for verifying information presented on these sites.

Reputation

As mentioned above, these sites are reputable. They act as the leading sources of information for US companies interested in doing business overseas. The authorship is extremely trusted and may not wish to present inaccurate market information to US companies. Besides, information gathered is based on the works of multiple agencies collaborating to deliver reliable information.

References

Hernández, J. (2015). Analysis of Cemex’s Strategies as determinants for market power. Journal of Global Economics, 3, 133. Web.

Mohajan, H. K. (2014). Improvement of health sector in Kenya. American Journal of Public Health Research, 2(4), 159-169. doi:10.12691/ajphr-2-4-6

Moscou, K., & Kohler, J. C. (2017). Matching safety to access: Global actors and pharmacogovernance in Kenya- A case study. Global Health, 13, 20. Web.

Njoroge, M., Zurovac, D., Ogara, E. A., Chuma, J., & Kirigia, D. (2017). Assessing the feasibility of eHealth and mHealth: A systematic review and analysis of initiatives implemented in Kenya. BMC Research Notes, 10, 90. Web.

Nsehe, M. (2015). Corruption and ‘tenderpreneurs’ bring Kenya’s economy to its knees.Forbes. Web.

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A description of the management problem

Study Group Australia (SGA) plays a significant as far as the process of identification of international and local students is concerned. Providing the students with educational programs to meet their needs is one fundamental step. The institution has a renowned brand name, which it owes to a good reputation maintained over a considerable period locally and internationally. It maintains a pragmatic environment that students can enjoy during their stay at the campus. It ensures the availability of relevant learning materials along with the essential knowledge regarding social interactions at the campus.

It enjoys keeping its student community comfortable, happy, and in harmony. This is the reason that triggered the need for revamping the facilities existing on the campuses. Through a corporate strategic plan, SGA management one of the places identified for upgrading is the canteen area. The current canteen area comprises of an informal sitting area, self-service vending machines for students snacks, microwave facilities where students warm their food, soft drinks, water, and hot drinks. The question about redesigning the area gave way to an exploration of opportunities for the creation of a café and a retail shop offering refreshments, food, and other items such as branded SGA apparel at the campus. This will give students more convenience than ever.

Background information

The primary concern pertains to the convenience of these facilities. Incidentally, students will not waste time but will always have someone at their service as with a cafe. This opportunity will give students the chance to easily accessing products they need without having to travel far in search of anything they need. It also provides an opportune time for creating stronger bonding between students, as they will access great gifts to share with their friends at campus. Additionally, on the part of the retail shop, it is an introduction without a matching product, and it will have items that can market the institution since it is going to have SGA branded products. This is viable because it will present the students with a chance for identifying themselves with the school. The question here is whether they are ready to do so. It is important to know if the students are proud enough to want to identify with such a venture to an extent of spending on the products offered by the retail shop.

Available secondary research

The secondary evaluation process the campus uses to determine the viability of the proposed project entails surveying students and staff. Since they are the ones using the facility, it is crucial to get their opinion as regards the upcoming project as well as other pending plans. The students are a key influence on the performance of the project. In effect, their opinions would be valuable in the process of structuring the project. The administration must be keen on the design of the café, by ensuring that the new facility has enticements, which are better than what the campus already has. Student representatives on the campus can be useful sources of information gathering since they are in close contact with fellow students and they are in a better position to know the student’s thoughts and reservations concerning the current facilities. The retail show will give students products such as SGA caps, stationery, gifts, t-shirts, hoods, sweatshirts, and track pants all provided in high quality. Through the past recordings of the vending machine business, students are ready to buy products from campus. So far, the reports have been positive and an indication of good purchase with product availability. The management is sure of its reputation since this has been positive and it shows trust in initiatives such as the upcoming Marty’s café. Students will be willing to purchase the products introduced in the retail shop out of trust in the intentions of the management.

Research process

Students have their trust in the administration and that means that running the enterprise, as an SGA activity will be better than introducing a private contractor who is a stranger to the students. There will be questionnaires for interviews with randomly selected 100 students and 20 members of staff. 50 of the 100 students and the 20 staff will be later invited for focus group discussions on different occasions. A day will be split into two with the staff coming in the morning and students holding their discussion in the afternoon after classes. There will also be interviews with the campus manager to know what their expectations are regarding the project.

Testing branding concepts with students and SGA staff

As a testing process for the branding project of SGA staff and students, the two sessions of focus group meetings with students and the other with staff will be the time for doing a mock sale of the suggested products. Participants will be requested to choose what they would buy and what they would not buy so that the research team can collect information regarding the most preferred and the least preferred.

Decision-making process

Collected data are going would be essential in influencing the decisions of the research group. The already gathered would be analyzed to come up with effective resolutions and then a final report will be sent to the administration for approval of relevant procedures to the success of the project. When the research produces information such as on the most preferred and the least preferred products by students and staff, this will help in deciding on the items to stock in the retail shop. It will help in determining the products requiring

Budget, period, and resources

The budget estimate for the research is $500. This would cater to the facilitation of the entire process; taking care of any financial obligations such as paying for the branded products for the testing process. Other aspects such as printing of questionnaires will be done free of charge through the support of the administration for the research team to use available facilities. The administration has also offered the administration hall for a full day to accommodate a morning session of a focus group meeting with participating staff and an afternoon session with students. The total research period will be two weeks.

Confidentiality

Therefore, it will be necessary to collect accurate information from all participants and, thus, will need to assure our participants of mutual trust and respect in the handling of the information. The acquired data of the research would be instrumental in the upcoming researches as well as past researches. There will be respect to the opinions of participants involved in the research process knowing that their privacy is essential. No personal information of participants will be used for any other reason. Personal information is given at the discretion of the participants concerning the anonymity of those who wish to have their identities retained as anonymous. The final report will not have the real names of its participants for the sake of protection of their privacy and right of expression. Alternatively, we will use pseudonyms when referring to students and staff who participated in the research process.

Introduction

The contrasts in the life and culture of a less developed country will significantly visible in the life style of the population, they generally poor or middle class income levels. The purchasing capacity and the consumerist culture influenced by the income levels makes their market more static than dynamic.

In marketing research much of the information required is outside the firm e.g., information on why people buy only certain products and not other products. The variables involved in the marketing decisions being external to the firm make the study of external environment very important in market planning. The researcher will have to take special care to find out which of the environmental factors –social, political, cultural, economic, legal, technological-are the most important for the consumption of a certain product. The researcher should also concentrate on external agents such as competitors, suppliers, customers, trade unions, governments, share holders, local community which are affecting the company most.

The major contributory factor for sustainable competitive advantage of an organization is its positional advantage. The positional advantage of a firm is decided by the assets, skills, and resources possessed by the firm. Examples of positional advantages are factors such as differentiation, customer intimacy, or low cost allowing the firm to achieve superiority and higher profit. Differentiation can be considered as more secure than cost advantage in achieving competitive advantage due to the following reasons such as:

1. differentiation will be build and sustained over time,
2. customer relationships and loyalty are the base of differentiation,
3. differentiation cannot be easily transferred,
4. differentiation can not be easily replicated,
5. quality and innovation are the building factors of differentiation,
6. differentiation stops customers from switching for a lower price,
7. differentiation is successful in creating switching costs for the customers.

Differentiation of a firm’s product is generally based on the following important factors such as:

1. product quality,
2. customer service,
3. product reliability,
4. after sale support,
5. technology leadership,
6. style, and image.

IN order for a company to succeed in understanding how to blend the above mentioned factors to achieve competitive advantage in a less developed country, they must have both primary and secondary information about the market. Unfortunately, it is difficult in the third world or less developed countries to get information relating to the factors mentioned above.

Take an example of a country like Rwanda where information relating to product that will be consumed will be scanty. Therefore for any new multinational going to the market will have difficulty in understanding the customer relationship and other issues that is for the market. This makes research for such markets difficult.

Definitions

Primary Research

This is carried out by gathering data related to the theme of product to be introduced in the market. It includes interviews, surveys, observations, and analyses (Driscoll, D.L. , 2006; Conducting Primary Research Retrieved on 20^th April, 2009. It involves carrying out the research by yourself, and can even help in your secondary research in later stages. Primary research can be helpful when you are conducting a study about a problem that has never before been addressed, or when there is little research available on the topic of your concern. It can be beneficial in writing about a specific product, or when you are writing on a new and original subject (Driscoll, D.L. , 2006; Conducting Primary Research Retrieved on 20^th April, 2009. For example in questionnaire-cum-interview method of conducting survey. A survey of the area is initially conducted prior to giving out questionnaires to people for filling in. the advantages of questionnaires and interviews is that they can be explained by the interviewers in case of any confusions.

The response rate is good; however, questionnaires alone can give a lower response rate (The Education Forum (2008); accessed on 17^th April, 2009) A focus group will taken for the collection of information, which is simpler and effective way to obtain in-depth information from the masses(Kauffman Foundation (2008); Retireved on 20^th April 2009. The number of people to be approached determines which method will be employed to carry out the collection of data. For example, if the number of people is less than twenty, correspondence can be done through the telephone, but if it is greater than twenty, then the survey can be conducted through the Internet (Kauffman Foundation (2008); Retireved on 20^th April 2009.

The questionnaire for the research will be build on a semi-structured approach. The questions were structured in a way that there was no bias whatsoever. The people cooperated well and answered most of the questions included in the questionnaire. There were only a small number of people who were confused regarding one or two questions; otherwise on the whole there was a good feedback from the survey group.

Secondary Research

Secondary research consists of documents and sources that contain data and results from the primary research conducted (Conducting Research, Retrieved on 20^th April, 2009. It involves the making of reports, and exists in the form of books, and journals. Secondary research may include the publications of the primary research results.

The methods used for conducting the research and survey of this paper were mostly through the internet. Online libraries, online books, and articles were consulted for gathering the required and essential information. These days everything is done via internet, from the transactions of businesses to the imparting of education. The internet is the most commonly sought and easiest method of accessing latest possible information these days. Gone are the days when people went around looking for good libraries in city centres, and searching for the books of their interests for carrying out researches. This is the 21^st century, and digital media is the latest technology being used for researching.

The greatest advantage of using the internet to access information is that it possesses ample amount of information al at once, and there is no physical hassle involved in searching matter. Rather, everything is easily accessible all at the same place, and there is no fatigue after writing papers. All the material required by an individual, regarding any subject whatsoever, can be obtained from the internet. And all of it is authentic. There are also some trash websites which do not contain authentic information, but if one knows of such cites to avoid, then a problem does not arise. This is why the only source picked for this paper was also the internet, and its various offerings and sources of information (Creswell, J., 1998).

Online Libraries

There are thousands of libraries online, which one can access through the internet and world wide web. There are various websites which offer material from libraries related to the required subjects of one’s interest. These libraries would provide with written material which one can consult and rewrite in one’s own words, for ease (Online Libraries” 2008. Retrieved on 20^th April, 2009.

Online Books

Online books are an authentic source of information also, as they provide all latest and necessary information required subject-wise. Once again the “search engines” of the internet are consulted, once the names of the books required are typed, one can access the material from them to be written in the papers they are producing. You can seek out electronic texts by typing in the subject of your concern (Online Books” 2008. Retrieved on 20^th April, 2009.

The significance of online books lies in the fact that a person does not have to go to visit libraries physically anymore, and the availability of such written matter help save time and energy of individuals. The books that are accessed online may not be present as a whole, rather, their abstracts may only be given at times. Sometimes you need to subscribe to various sites for access to the complete books. But mostly, a substantial amount of information can be gathered from the reviews or abstracts given. The previews given are at times only of a few selected pages from the book, and some of the pages are missing from in between. It is just like reading the book on a screen, with inclusion of even the contents and the index and glossary, etc. page numbers are also given included as in the case of traditional text books.

The information collected for this paper was also from these online books, which are also called e books. They are basically not in the hard copy form, but are present on the monitor for access of reading.

Articles

The internet contains trillions of articles and there are various directories that provide with the sources one needs. The articles are easily accessed through the search engines one has chosen for research. Currently, “Google” is the most authentic and commonly used search engine, and the articles available here were accessed for this paper’s completion too. All the names of the authors of the articles, and their references are also mentioned inside the articles which are being read, and that makes referencing easier. One can easily make the bibliography of the paper too, with the information provided in the articles. There are a variety of online texts available for viewing, (“HighWire Press: Stanford University” 2008. Retrieved on 20^th April, 2009

Discussion

In less developed countries a marketing researcher faces the dilemma of choosing the most suitable approach to meet the aim and objectives of a study due to availability of information. The application of a wrong approach may render the objectives and significance of the whole study insignificant. However, there is no one best approach to follow since the choice of process is different to each research as well as the objectives themselves. Besides choosing the most suitable methodology also depends on the availability of resources which is by standard is lacking in the third world. The marketer in less developed countries chooses the methodology to satisfy the needs.

The marketing researcher starts by describing the research process and its objectives. Then moves to discuss what maybe the most relevant approaches, research designs, and data collection methods and data analysis. After this, the most suitable methodology for the current research can be selected.

The Research Process in less developed countries

The purpose of conducting research is to find a suitable solution for a specific and immediate problem that is confronted. Research is generally assumed to be a complicated task which is actually not if the various parts or phases of the research are clearly understood. Then the market research project becomes a well-structured process which has a beginning, intermediate part and the end. In today’s world, research is alternatively being termed as logical reasoning (Trochim, 2006)

The problem formulation will be the first and the most important step of the research process for marketing research. The problem will defined clearly and specifically, as an ill-defined problem may result in an ineffective solution. The problem will properly translated into a research topic and the reason why the research is required will also be spelt out. Secondly, an exhaustive revision of the theoretical and empirical framework within the related review of literature will made. The literature review will based on secondary research conducted by reviewing various journal articles, books, research evidences of past research and of course the worldwide web. This step helps the study by generating and refining the research objectives. Another step is the research approach and design of the research. This step covers the way in which data will be collected to answer the research objectives. This step also influences the data collection method. The data collection will be according to the chosen method. Finally, the data is analyzed, interpreted and presented in this research.

Aims and Objectives marketing Research

The purpose of the marketing research is broadly examined in this section. Another important aspect that needs attention while conducting a research is that its objectives should be clear and specific. The objectives should cover question regarding the purpose of the study, how the study will be done, the information needs and the sources of information.

Research Design

The design of the research plan determines the tools and techniques that are employed for conducting the research. Normally the research design is broadly classified into exploratory research, descriptive research and causal research (Institute of Chartered Financial Analysts of India; India Center for Management Research, 2004 accessed on www.asiacase.com/case/southAsia/icmr.html).

Exploratory research helps in the identification of the presence of potential opportunities. The data for this kind of research is obtained from books, journals, magazines etc. Descriptive research is generally conducted after the above research. As the problem is clearly defined in exploratory research, the quantum or intensity of the problem is identified in descriptive research. In causal research, the cause and effect relationships between two variables are analyzed (Institute of Chartered Financial Analysts of India; India Center for Management Research, 2004 accessed on.

Research Design can be simply defined as the structure followed by the researcher. Research Design is the important component or key ingredient which holds all the various elements of the entire research (Trochim, 2006). A design is elaborately explained by using a succinct data which further enables in the summarization of a complex or difficult design structure in an efficient manner. A research design consists of various elements. They are as follows:

• Measures or Observations (Trochim, 2006)– Observations are usually symbolised by ‘O’ in a succinct design. This can be anything ranging from a single instrument or measure to a complex multiple measures.
• Treatments or Programs (Trochim, 2006)– In design notations, treatments or programs are indicated by symbols such as ‘X’. Different program variations can be distinguished by using superscripts as dealt with Measures of Observations above.
• Groups – Every group on a research design is distinct and is given a separate and individual line in the structure of the research. The number of lines in the design notation indicates the number of groups considered for the research.
• Value Assignment to the Groups – This is designated by a particular letter at the beginning of each group. This described the process of assignment. Assignments are of different types

Types of Design

There are basically three types of research design. They are quantitative design, qualitative design and the mixed method design.

Quantitative design is further classified into three types. They are Experimental Design, Quasi-experimental design and Non-experimental Design (Institute of Chartered Financial Analysts of India; India Center for Management Research). Experimental design is conducted to establish a cause-effect relationship. This method helps in the evaluation of a particular outcome simultaneously having a control on the other factors which influence the outcome.

Quasi-experimental design is a process in which pre-existing groups are considered to carry out the research. However, while using this kind of research design, it is mandatory that the characteristics of the selected pre-existing group are described in detail (Institute of Chartered Financial Analysts of India; India Center for Management Research).

Non-experimental design again is classified into three types namely, correlation, descriptive and casual comparative. Correlation is used for prediction and it aims at establishing a relationship between two sets of variables. Descriptive methods just describe the existing phenomena without any change. Casual comparative method is used to prove the cause-effect relationship.

The qualitative methods of research usually give results that are well detailed and very rich in content that provides new concepts and ideas that will work to inform your program. The qualitative research methods will provide the researcher with information on how people and also on what people think about the product but it will fail to provide the information on how many people feel and think in that particular way. If one researcher wants to carry out a research using the qualitative method, the following guidelines have to be used; the researcher will have to select a particular group of people who have similar characteristics in common and thereafter the researcher will have to convene a discussion by the use of either focus groups, interviews or observation of the behavior of an individual through such interviews such as the so called in-home interviews.

The researcher should make sure that the discussion he will start will not have a specific structure so that all the participating people will be free to pick the discussion from any angle and that no specific response will be required for specific questions. He should also have in mind that an interview guide can be used to ensure that the right questions are directed to the right people during the progression of the interview. These questions being talked about here should be asked according to the response of the participant and care should be taken not to ask the questions in predetermined manner or rather order.

The results from qualitative research should be presented as percentages; they should also not be subjected to an analysis of statistics or even be projected to wider population. This is merely because those people participating in this kind of research usually do not make a sample which has been randomly selected and the given samples are usually relatively small and not all the participants are normally asked the same questions. And no matter how much qualitative research one or rather a researcher will conduct, he will still not be sure of how exactly the participants feel or of they are experiencing similar things and at this point is where a researcher will have the preference of using a quantitative research.

There are those tools are normally in common use in a qualitative market research and these tools are the focus groups and those interviews carried out on individual basis and are called the in-depth interviews. Additionally, there are many other methodologies that can be used to assist the researcher to know more about his sample group. Some of the examples of these include; pairs of friendships from which people who claim to be best friends are picked to have a discussion on the subjects that are more sensitive and the other example is observations made on behaviors and how people interact in the natural environment of the targeted participants (Dick, 2005).

This research method has got its own pros and cons which will be mentioned hereafter. The pros of qualitative research method include; this method usually explores various topics in a more detailed manner and depth compared to the counterpart method which the quantitative research method. Also this method has been proven by many to be more affordable that is it is cheaper than the quantitative method because not so many participants will be recruited and also it is not as extensive as the quantitative one. Lastly this method provides room from flexibility as far as timing and location is concerned. The cons of this method include; this many can never quantify the exact answer of your and participants and also it can not be able to generalize the researcher’s findings to his broader target group or generally the public.

The qualitative research method is commonly used when the researcher has one of his goals as exploration of a specific idea or even a topic (Hopwood, 2004). And also it can be used when one wants to fully understand the results obtained from the quantitative research method and lastly can be used when the researcher wants to get some input from his major informants or other people who lie outside the targeted audience.

Mixed-method design is a combination of both qualitative and quantitative research methods.

Data Collection Methods

Data is a collection of related observations, facts or figures. A collection of data is called a data set, and each observation a data point. As already discussed, data collection can be done either by collecting first hand information i.e. primary research or from already existing records i.e. secondary sources. Primary data is collected using research instruments like questionnaires, mails, telephonic interviews etc. Secondary data is collected from already available sources such as published papers, journals, magazines, reports, company literature etc. These strategies can at times be independent and at other times they can be combined with the quantitative methods (Richardson, 1999).

Some of the qualitative strategies will include the following:

• Semi-structured interviews:-These kinds of interviews usually have some kind of questions that are in a way very specific about issues of the project being researched on. These interviews though allow the interviewee to give very detailed answers to the questions.
• Focus groups:-These groups will be seeking to have a full understanding of the attitudes. This will be achieved by carrying out a series of group discussions that will be guided by one researcher leading the discussion and the other one taking the notes. Five or even six questions can selected to act as the guideline for an open ended discussion. The main goal of the discussion will be to achieve a consensus as a group (Robson, 2000). At the end of the discussion the facilitator and the person who was doing the recording will do a summary in written form of the major points that would have been discussed in response to every question that was given.
• Observations:- Observation will be made on the activities of the project and this will be guided by the semi-structured and the structured protocols that have been specifically designed to monitor if these key items that will be discussed in the interviews will be verified.

Procedures of data analysis

There are several steps that will be involved in the analysis of data and these steps are; understanding what qualitative data analysis is all about. The major core of qualitative analysis lies in giving a good description to the phenomenon, classifying the phenomenon and finally seeing how all the concepts interconnect (Roselyn, 2000). The next step will be introducing computers as a main data analysis tool. There are several aspects that will need the help of computers in their analysis and at this point the computers will come in handy.

The following step in the procedure of data analysis will be finding focus. In fact this should have been the first step. The researcher should always have his focus right in place. In finding focus the researcher can use the available resources to make sure everything is in the right place. Then after the focus finding, data management will be the next one. Any good analysis will require that the researcher should have good management of the data found. Information found can best be managed by filing them and giving a good access to the filed information.

A good analysis will depend on how well one reads and understands the data that would have been collected. This requires one to have good reading and understanding skills. Creation of categories will also be necessary in data analysis. These categories will help in easy analysis of data in a faster way. At this point, the data will have to be linked to the actual research project to make sure that everything blends with the other. Once the data or information flows, a conclusion will have to be made on the whole process of analysis.

Management international marketing research

A marketing research management involves a system that consists of people, procedures and methods to get information, analyze the information, evaluate and distribute this information to marketers to make good decisions out of it. It is the proper use of marketing research. It is vital because it assists a company to know what it needs I terms of information and how it will use the information to come up with a good decision in the shortest time possible. It is done by the marketing research team of the company. A market information system includes the sales information systems. These are reports that are made from the up to date sales of a company from the customer and sales representatives. It also includes the marketing intelligence system which is the procedures and sources that are used in the company to obtain information about marketing progress in the environment where they operate( Bernstein, Scheff Joanne and Kotler, Philip, 2006).

The marketing intelligence system also includes the marketing research process which is the designing, analyzing and collection and reporting of data findings to be sued in the company for marketing. Information about marketing intelligence system can be collected from various sources around the company. Some companies have data in the marketing research departments and others have to go to the field to look for information. We have two sources of information and these are (a) Internal sources (b) External sources (Chisnall, P. 2001).

Internal sources for Marketing Information System are most places where the company can get information from within i.e. from the books of accounts, various records kept in the company and former research that was done. Those are the information from records previously kept by the company. External sources include those sources that are from outside the company like publications, books, periodicals, encyclopedia and also commercial data that can be obtained by companies by payment of a fee to research companies. Company can also get information from the internet (Kumar, V., Aaker, D.A. and Day, G.S. 2002).

It is very important for a company to have good Marketing Information System because it helps the company to get more useful information quickly, for expansion, it will assist them to predict how buyers will respond to changes in features of products, environment, styles, etc. they also assist the company on competition and information about competitors price, branding. It also assists the company to develop relevant advertising and good sales promotion and they also get good information about marketing tools through Marketing Information System (Manila Bulletin, 2006).

Methods of research utilized in international marketing

Test marketing

The basic objective of test marketing is to test the effectiveness of a proposed change in a marketing policy and strategy s as to decrease or eliminate the risk attached to such a step. The test method involves an experimental marketing process on a small scale for example the same product may be tested practically in the market in different packaging. A control market is distinguished in which all factors are kept constant in which one factor that is the packaging changes. All other factors are figures’ so it is argues it probably the result of the difference in packaging (Schaik J.L., 2002);.

Various problems emerge such as: which determine the choice of a test market; the comparativeness of the test and control markets; the danger of the carry-over of advertising messages from the test and control markets; the test of the control markets competitors who may attempt to ruin the experiment; retailers who may act differently under test circumstances than under normal business circumstances (Schaik J.L., (2002);.

The field of application is broad and can include: the determination of the potential of new market offering; the determination of the optimum price of a product; and the determination of the most effectiveness advertising message and distribution channel (Schaik J.L., 2002).

Motivation research – the method is concerned with the question of why for example a specific consumption pattern is followed or why consumers act the way the do. The unwillingness or inability of most consumers to explain their behavior gave rise to motivation research. An investigation is thus undertaken of motivations of which the consumer has no conscious knowledge. What persuades consumers to buy a specific product is often not the physical product itself but a total need satisfying market offering and the consumers own conception of ti – they often buy images of thought and not realities. With motivation research the marketing researcher attempts to bring the consumer personality into relation with the personality of the total market offering. The techniques include among others projection techniques such as role play and cloud pictures (Schaik J.L., 2002).

The consumer panel

This method is used to record the spending behavior of the same group of consumers continually over time. The objective of the consumer panel is more specifically: to record the consumer purchases of various products on generic or brand level on a continuing basis; to collect continuous and repeating information from the same households in order to record tendencies in consumer habits and actual expenditure over time and to records tendencies in consumer expectations, attitudes and plans over time. With the aid of the above information a reasonably complete picture can be built up the total market demand and its composition as well as the product is brought when it is bought, the price paid for it who buys it whether it is new or second hand and whether it is an additional or replacement response (Schaik J.L., 2002).

The retail audit

It is thus theoretically possible to determine consumption quantitatively by measuring it at some or other strategic point along the distribution channel. A retail audit is the method which measures the flow at the end point that is the point where the products flow the channel to the consumer. It may be done on a hoc basis, which is generally known as trade research or the measurement of retail sales can take place periodically at the same sample of retail stores (Winer, R.S. ,2007).

The application possibilities of the results are numerous. The most customary one are: the determination of the competitive position of the product. The determination of the general competitive position of the and kind of retailers; the determination of the effectiveness of advertising campaigns specifically and marketing communication programmes in general; the informal can be as a basis for marker forecasting and the method the information can be used as a basis for market forecasting and the method presents an excellent picture of the geographical shift of the market demand for a particular product (Vandermerwe, Sandra 1997).

Consumer intentions

A survey of consumer intentions is usually limited to durable consumer products and for a specific time period. The potential consumers are asked what kind of product and what quantity at specific prices they plan to purchase over a given future period. The intention to buy is of course not always an indication of actual future purchases as purchases are dependent on the availability of the necessary purchasing power and other environmental variables which might affect the consumers’ intention drastically. The information can be made more reliable by taking into account the actual sales over time and the estimated increase in consumer income over time Schaik J.L., 2002).

Conclusion

By understanding the easiness of carrying out market research in less developed countries, multinationals will find it easier to satisfy the needs of their customers thus attaining the objectives of going global. However because there is little information as well as limited resources it becomes very difficult for the companies to carry out research in those countries.

It is clear that international marketing strategy in less developed counties is not at par with developed countries because research in those countries is very difficult because of the amount of information that is available to carry out research.

It must also be acknowledged that when people are asked the questions the responses may be different from their purchasing choices. It is also not always possible to be certain that the responses people give are a fair reflection of the way they would act in real life.

Thus, the possibility to circumvent some of these problems by hosting the questionnaire online cannot be overruled. But then, there is no guarantee that there would be fairness in the response, or for that matter any unbiased response.

Cost benefit analysis is the standard method used to estimate the net gain of a research. With the limited primary and secondary resources available, an attempt will made to elicit consumer needs and how manufacturers achieved this and in the bargain generated ample employment opportunities, and contributed to their national GDP. The results obtained will be helpful in justifying whether predictions for future growth reflect the local market sentiments.

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The Education Forum (2008); Business NZ Election Survey summary results, Web.

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Vandermerwe, Sandra (1997). Increasing returns: Competing for customers in the global market. Journal of World Business. Volume 32, Issue 4, Winter 1997, Pages 333-350.

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Market research is a crucial ingredient in the growth of an organization. It involves a systematic gathering, examining, and interpreting relevant facts to aid in making marketing decisions (Hague, 2002). In the case of JavaJoy Inc, the firm has struggled to succeed until the arrival of its growth opportunity. The firm must first conduct its SWOT analysis to establish whether it will be able to cope with the impending market growth. First, there is a need to identify what market share the company holds in the industry putting in mind that its products are relatively high, and then plan on how to maintain or improve the same. There is also a need to establish the needs of the consumer in the market and the infrastructure to be put in place to aid the firm against the competition.

Both qualitative and quantitative approaches can be used to carry out the research. A quantitative approach will help provide numerical information on the firm such as sales volumes, profit margin, distribution levels, and other quantifiable information. The method, according to Weinreich (n.d.), is more appropriate for the assessment of a large population as it gives quantifiable and more reliable data. However, it fails to capture human aspects in the market. On qualitative approach, data will be collected that show the meaning, perception, culture, and understanding people have on the company’s products, and also their preferences.

Data will be collected through either one of, or a combination of interviews, market survey, observation, and field trials. Also, historical information in JavaJoy’s records will be used to gather more information to help in forecasting the company’s future. A survey will be conducted to establish the estimated market size, how many other players are in the industry and what are their sales, cost-effective distribution channels among the various channels available (whether to distribute directly to the consumers or continue with the current program), and the major threats (including competition) the company is likely to face. With the booming coffee market competition it is highly expected and this will be the best opportunity for JavaJoy to improve brewing systems quality. Thus, customers will be interviewed to establish their needs and what improvements can be made to the products. Also, a sample size of about one thousand people will be used for survey and field trials to collect both quantitative and qualitative data.

The data collected will be analyzed to assist in formulating the strategic plan for JavaJoy. The data on sales volume and the estimated market size will be analyzed using graphs to establish the trend and allow the formulation of expected sales volumes in the next five years. The data collected on other players’ statistics will help to understand what niche they have in the market, their profits, pricing, and their future plans. This will help in analyzing the level of current competition and any potential competition in the market, thus help in establishing the areas to focus on such as product re-branding, pricing levels (whether to lower the price or maintain the same), advertisement, and distribution channels (whether to continue with the current trend or open own distribution centers). Historical data in the firm’s records will be analyzed to gauge whether the firm has the strength to maintain the high profitability or whether the firm has the adequate labor force and other resources to cope with the huge growth in the market (Andreasen, 1995).

The qualitative data collected will be analyzed to help identify the gaps that the firm has to cover up before huge competition comes in. The tastes of the consumers, their lifestyle, culture, and purchasing patterns will help in formulating a plan that will target primarily satisfying the needs of the consumers in the market. This will also help to establish whether to increase the production capacity or maintain the same.

References

Andreasen AR (1995). Marketing Social Change. San Francisco: Jossey-Bass Publishers.

Hague, P. (2002). Market Research: A Guide to Planning, Methodology and Evaluation. 3^rdEdition, New York, Kogan Page Publishers.

Weinreich, N. (n.d). Integrating Quantitative and Qualitative Methods in Social Marketing research. Web.

According to market research, the men’s skincare segment is fast emerging as the market leader in the male grooming industry. Manufacturers are going after the male end users with marketing tactics that are appropriate to their way of life due to the dwindling overall sales growth in the recent past few years. Simple and multi-purposed products such as cleansers, shave treatment as well as moisturizers in the prestige market are the ones that are doing well currently since they belong to the basic regimen. In sales revenue, facial exfoliators come in second due to the fact that men are now beginning to take care of their skins past merely washing them with bar soap. (By Louise Prance, 2006)

It’s no longer about looking better or feeling younger, but it’s about the relevance of the products in their lifestyle as well as impressing the ladies as the old adage goes. Using this as the benchmark, there is great potential in the men’s skincare industry if it can go after men and broaden the end-user base by emulating if not getting better than the size and success of the men’s prestige fragrance industry. Although this may not lead to higher spending on cosmetic products, a recent consumer report hints that there is a lot of pressure on the majority of male American consumers to look good. Presently there is a universal acknowledgment that men want to look good too. With the U.S. in the lead, there is overwhelming unanimous acceptance of the metrosexual male by consumers worldwide. Apart from this, the spending pattern is also determined by the age of the consumer, consumers in their 20s, as well as teens, spend more compared to their much older counterparts. Looks like the older one gets, the less he spends. (Katie Bird, 2007)

Consumers have several reasons why they invest in personal grooming. Grooming makes them feel better according to the majority of American consumers. A recent study shows that men want to get ahead at work by appearing professional hence going for male skincare products. This trend has resulted in rapid growth in male skincare products especially the office-bound professionals whose smart appearance has an impact on their career success. To remain competitive in the workplace, men of all ages are trying to look young. To help the face look fresh, youthful, and energized, men, use products such as moisturizers. (Guy Montague-Jones, 2007)

Lifestyles, as well as the identity, are now closely associated with beauty and health products. In such a crowded marketplace, successful marketers now understand that there is an emotional element involved as far as beauty products purchase decisions are concerned. These emotions are the ones being exploited by manufacturers to curve a niche in this crowded and competitive industry. Manufacturers are piling high-end brands as well as mainstream brands despite slow growth rates. Real growth in male grooming products is a longer-term project as attitudes take a long time to change. (Diana Dodson, market analyst for Euromonitor)

Male consumers who are inhibited to buy these products in stores use the internet as their main retail area despite the upsurge in cosmetics in stores. It won’t be long before there are more and more specified cosmetic ranges aimed directly at men as more manufactures now recognize the increased need for male consumers to feel and look good by using the different male cosmetics available in the market today. (Louise Prance, 2007).

References

Burt’s Bees (2009), Web.

Louise Prance, (2007) Web.

Guy Montague-Jones, (2007) Web.

Diana Dodson, market analyst for Euromonitor. Web.

Target Market

The number of students is high across Australia and ever-increasing. The stationery market is competitive and we will deal with all brands to attract different buyers who are loyal to their tastes. Macquarie (2005) explains that the selected market will specialize on students from learning institutions like universities and colleges. He says that the bus stop, tuition blocks, hostels and student centers are strategic and lucrative to locate the machines (Macquarie, 2005, p.36).

The aim is to reach the students where they are and induce buying to get maximum returns. We will specialize in stationery that is used regularly thereby improving the clients esteem, operations and pleasure during learning. We will provide competitive sales services through modern technology in the sales points. Customers will buy the different brands of stationery from one-stop-shop providing immediate solutions of stationery requirements.

Market Size and Trends

We anticipate a large market size from the pool of students. This will be enhanced by unbeatable competitive pricing to contain rivalry from other players. We will specialize with brands that are common to maximize on their familiarity. Duboff and Spaeth (2000) argue that the main goal is to increase sales volume gradually with an average annual rate of 10%. They explain that the amount of goods sold will be indicated in the machine as a bench mark data for analysis.

The buying trend is expected to increase drastically due to good location and better prices. We will develop a frame work of predictable pricing in all outlets to caution any resistance from competitors by employing long-term and short-term measures that will help create good returns on the venture. We will use accurate projections of stock every time to avoid dead stocks and the changing consumer interest.

Competitive Analysis

The business is unique, being the first to offer a stationery vending machine in Australia. The market size is ripe with the strategic location of the vending machines at the university, college and meeting points as opposed to our competitors like bookstores and supermarkets located at town center away from customers. Having specialized, we will be able to buy stock directly from the manufacturers or appointed distributors giving us lower prices and other discounts which will be passed on to our customers according to Oster(1999). Most of our competitors rely on suppliers who sell a variety of goods and they do not benefit from special discounts. The capital outlay needed is minimal and we will be able to finance the business fully in comparison to our competitors who have a variety of items that need huge capital.

Multinational competitors may use their financial base to lead to aggressive price wars and advertising. We intend to fix our prices to the lowest possible as we endeavor to offer superior value to our customers. We will collaborate with the manufacturers to sponsor some vending machines and adverts. To attract customers from our rivals, we will carry out promotional campaigns across institutions, use interactive sites like Twitter and Facebook, journals and academic magazines, as explained by Oster (2005).

Evaluation

To avoid uncertainty while maintaining cost-effectiveness and profitability, we will collect enough information about the products we are selling. We will utilize innovative methods of collecting first-hand data from our clients by visiting the actual location of the machine to get the client’s complaints and study their reactions. This will help develop tailor-made solutions to their concerns. To extend our care, we will use the contacts available to reach our customers and listen to their grievances, followed by immediate solutions. Equally, we will employ salesmen to visit our clients at the buying point and residence to collect feedback that will help us know the areas that need change or shift so that we adapt to the new market trends. We will keep an eye on our competitors and gauge our success and failure against their performance.

Pricing

In this stage, we endeavor at having competitive prices as possible. During pricing, we will cover costs ranging from purchases, running costs and profit to have an assured cash flow. This will include costs of damaged goods, shortages, employees’ allowances and incurred losses if any. However, we will keep our prices at the minimum by lowering costs at every level. Phillips (2005) explains that the prices will be adjusted whenever producer prices change when competitors change their prices, economy shake-ups or when we change our sales strategy. The business will avoid copying the competitors but capitalize and improve on their weak areas.

The product’s life cycle will be important so that we know when to clear stock or order more. Towards the examinations, we will review our prices to reflect the demand shift. However, the main goal is to have competitive prices across the brands as a tool for attracting customers.

Advertising and Promotions

Belch (2007), explains that the main aim is to promote the new business while creating awareness that will lead to direct market response. We will use print media like flairs, posters, buying space in student magazines, promotional banners, direct mails to students’ emails, newspaper inserts and adverts, editorials, television and radio among others. Each vending machine will contain an electronic advert describing the products available and their prices. We will utilize sales staff to ensure personalized advertising that will lead to direct contact with our clients. We will provide tailored print materials coupled with free samples obtained from the manufacturers.

At all public joints where our customers meet, we will have a demonstration on how to use the machine and a simple game where the winner takes home a prize. We will keep an eye on our competitors and use competition strategies to counter their influence against us. All the machines will be decorated with images and writings on the products describing our uniqueness according to Hackley (2009).

References

Belch, G. (2007). Advertising and promotion: Integrated marketing communications perspective (7^th ed.). Illinois: Richard D. Irwin, Inc.

Duboff, R. & Spaeth, J. (2000). Market research matters: tools and techniques for aligning your business. Toronto: John Wiley &sons.

Hackley, C. (2009). Advertising and promotion: An integrated marketing communication. London: Sage Publications Ltd.

Macquarie, E. (2005). The market research toolbox (2^nd ed.). London: Sage publications Ltd.

Oster, S. (1999). Modern competitive analysis. London: Oxford university press.

Phillips, R. (2005). Pricing and revenue optimization. Stanford: Stanford university press.

Introduction

The success of marketing is determined is determined by various factors; thus marketing managers should ensure consideration of the various factors in laying down marketing strategies. Research has showed that, the quality of goods, the competency of the sales personnel, need recognition, personal preferences as well as the financial status of the buyer are key determinants of sales. In this case, the analysis of market studies should be consultative and inclusive to avoid misinformation. This paper will analyze the reports on a market research concerning the sale of various commodities. Further, the paper will also outline the importance of the results in marketing as well as highlighting what can be done to improve future market studies.

The results of the first report are quit impressive in that they clearly match with the basis of the theory on need recognition. This is very evident from the study; it is realized that customers purchase products deliberately and with some sense of thought. It is evident from the report that, every customer purchased a product of his/her choice with little or no influence from the sales persons. Further, it is noticed that all customers are from the same state, Atlanta thus belonging to the same financial class. It is also evident that, advertising has played a major role in informing the customers on thus enable them to judge between alternatives. I strongly agree with the model and the study report since it reflects the real behaviors of the customer. However it is evident that, customers were also influenced by advertisements in making decisions on closely related products. For instance, all the three customers, Larry, James, and Whitney were to some extent influent influenced by advertisements on making their choices between the closely related commodities. It’s also correct that, all stages are followed before purchasing any product and in only rare cases do people skip the stages of purchasing. In sum, the theory is justified that customers are guided by need recognition; though advertisements and sales experience have a key role in influencing customers’ choices and satisfaction.

The results of the second story based on the theory of Maslow are some how misleading. According to this model, people buy good depending on the benefit they will derive from the product; however this has not been the case in this story. The ideas of this model have not been adequately depicted in this story; this is evident from the customers’ response on the sale of the television. In the first case, frank response was that he was not satisfied from the purchase of the television thus contradicting the theory. Secondly, the response of the customers is not consisted thus creating controversy on the motivating factor of the purchase. For instance, all the three clients are quit satisfied with the vale of the purchase yet Thomas is not with the manufacturer while frank is not satisfied with the television. In sum, it show customers are to some degree influenced by sales methodology, and behavior of sales persons.

The data from the study is very essential in marketing sine it can effectively be used in developing better marketing strategies. From the study it is clear that, customers are widely influenced by sales experience and the level of information on the products. This information will help in improving the quality of products, determination of prices as well as deriving the best marketing methodologies which meet customers’ expectations. Generally the information gathered from the customers is not sufficient; this is because only few clients were selected for the data collection. For an effective study, data should be randomly collected and not from a cluster as in the above case. It is evident that, all the clients were from same region and same financial class.

Conclusion

It has been revealed that, regardless of the customers’ need to purchase a product; the sales experience and sale strategies of the seller have a key role in influencing his sales patterns. Additionally, market studies are very vital and marketing managers should conduct freguents studies to get information on customer’s expectations.

It is important for AeroShield to enter the US market with its innovative product called aerogel, which will be applied to residential window glazing. Given the types of business analytics, the best option to analyze the collected data for the window market in the US is predictive analysis. It is based on the method of situational analysis and forecast of the future that allows exploring historical data to anticipate scenarios and trends emerging in the market/industry. Through it, AeroShield can plan its entry into the most attractive markets such as residential and commercial window markets with an effective strategy to prepare itself for upcoming challenges. This analysis uses data mining, statistical data, and historical data to assess future trends.

The marketing analysis assignment is also an essential tool for AeroShield to understand the market in which it is positioning itself. This analysis consists of analyzing research data that would help AeroShield understand the needs of its customers and define its target audience. It will help the company meet its competitors by looking at data surveys such as market size, market trends, market growth, and market profitability. Through the reviewed scientific articles, it is possible to say that this type of task could be applied using survey and statistical techniques.

The window and door manufacturing market is a growing industry. Residential windows in the United States are a huge market size with 50M+ units per year. Customers are seeking to buy new houses or renovate their existing houses replacing their current windows with those that can insulate the maximum indoor temperature and reduce energy use. AeroShield’s windows are made of the innovative nanoporous silica aerogel, the quality of which is comparable to glass. They are functional and save the maximum amount of heat indoors. Aerogel is less expensive than current alternatives in the insulated glass category, which comprises approximately 70% of windows in the United States. Therefore, AeroShield has the potential to replace standard insulated glass windows from the market. Moreover, the overall residential window market growth and energy-efficient trends contribute to the success of the company.

Introduction

In the development of any business, it is necessary to take into account factors that can negatively affect the development of the company. One of these essential concepts is the business gap, thus, the aspect in which the business of one cannot function (Hague, 2019). In other words, these are certain territories or areas where one’s occupation cannot bring profit due to certain aspects and its characteristics. According to another definition, it also includes the gap in offering services according to specific customer requirements (Hague, 2019). Accordingly, in order to close this gap, it is necessary to analyze the missing aspects of the product offer and launch the production to close the gap.

Market research

Market research is an effective method for identifying and closing potential business gaps and for a company’s development in general. In this case, the analysis of the international e-commerce market showed that more and more countries are involved in this type of business (Hoque et al., 2020). It formulates the relevance and the possibility of increasing the potential target territories for the company’s performance. Besides, 80% of products are purchased online from countries such as China, Germany, and the USA (Hoque et al., 2020). It shows the most attractive areas for investment and launching an e-commerce site.

Moreover, it will help in closing a potential business gap, which in this case may consist of the incorrect distribution of priorities for territorial development. Despite the fact that the legislation may be more favorable in some countries, the insufficient development of digital technologies makes them unprofitable (Hoque et al., 2020). In addition, today, more and more businesses are starting to use cryptocurrencies and to pay for services and goods. It may formulate another business gap for «PERFICIENT», and an effective way to close it would be to implement cryptocurrencies in the future. Implementation will generate additional income and attract more potential customers through a wide range of transaction tools.

Financial Analysis

Financial analysis is an essential part of starting a new business, including e-commerce. It allows one to evaluate possible investments, the level of return on investment, and identify financial opportunities. In this case, the financial analysis will be based on data on the potential opportunities in this area, namely the development of e-commerce. In this regard, a high level of return on investment is expected due to the high levels of e-commerce implementation throughout developing countries (Bass, 2018). As already indicated, the financial costs will include those that will cover the initial and operational costs. Thus, financial transactions will include an investment in the initial stage and a return on investment in the development stage.

Furthermore, the financial analysis should include consideration of possible risks associated with the implementation of the business. In this case, considering the pace of development of the sphere, the risks will be based on high levels of competition (Metawa et al., 2019). Usually, the main financial risk for a company is an insufficient inflow of clients or failure to close significant business gaps. However, given that more and more countries are implementing e-commerce development strategies, financial risks, in this case, will not be based on these factors. The development of this area will be characterized by the development of companies providing services or based on e-commerce.

In this regard, a high level of competition articulates the underlying financial risks in the chosen area. One of the main functions of financial analysis is the consideration and implementation of strategies for leveling risks (Bass. 2018). Thereby, a suitable method for dealing with the financial risk associated with competition is the competitive offer. It is formulated not only by high-quality services and prices below the market average but also by unique offers. In other words, one should analyze the special functions of competitive companies. After this, based on this analysis, one would be able to develop one’s own unique offers for customers. In the case of «PERFICIENT», it can be formulated by the implementation of cryptocurrency, thus, giving the possibility of paying with electronic currency. Finally, high-quality and straightforward functionality could distinguish this company from others.

Risk Assessment

For the successful launch and operation of a company or business, one has to take into account possible barriers to its running. Risk assessment allows one to identify, analyze and develop strategies for leveling potential risks (Ostrom & Wilhelmsen, 2019). Additionally, risk assessment was defined as an effort to look for potential negative incidents that would harm the company in any possible way (Ostrom & Wilhelmsen, 2019). In this case, as already indicated, the main risk is associated with the competition. However, it is part of the external risks, but the launch and development of a business are characterized by a number of internal risks as well. In this regard, it is necessary to apply a special technique to find and evaluate possible risks.

This model can be conditionally divided into several stages. The first preparatory stage is formulated by studying the literature to analyze the possible risks of C2C and B2C e-commerce models (Kahraman et al., 2019). In other words, this part is the theoretical aspect, which in the future will become the basis for the practical one. The second stage is an in-depth interview, and it is articulated by discussing pre-defined risks and developing the final list (Kahraman et al., 2019). After this, one should evaluate each risk by assessing how to relate to it and identify the root cause of the risk (Kahraman et al., 2019). The final stage is articulated by analyzing the results of this model’ applying and developing the strategies to deal with risks.

Exit Strategy

After the risks have been assessed and strategies for dealing with them developed, one should elaborate the exit strategy. It includes developing strategies to get out of the current negative situation in case of insufficient consideration of risks or failed implementation strategies (Goossens & Murata, 2019). It is also defined as a clear plan of action aimed at the maximum advantageous option of selling a company or business to investors or another company (Goossens & Murata, 2019). In other words, it is a plan that will allow one to get the maximum benefit in the event of a situation that would lead to loss of profit or business closure. Usually, with a successful deal to sell a business or company, the owner can get a significant amount of money.

However, there are situations in which one does not have the opportunity to profit from the sale of a business. In this case, the exit strategy implies the most harmless outcome, thus, the maximum limiting of losses (Sasongko & Bawono, 2021). In other words, this plan is characterized by the development of a strategy to minimize the financial losses in the sale or liquidation of the company. In the case of a «PERFICIENT» company, it would be formulated by keeping the maximum profitability of the company until the moment of sale. It will consist in acquiring and retaining the maximum number of customers with the help of profitable offers that would attract an audience from the competitive sector.

Methodology

The methodology of this business plan includes strategic planning, which can be divided into several parts. The first part includes setting goals and sorting them into the highest priorities. Further, it is necessary to develop a plan for the implementation of the set goals, taking into account the priority of the objectives. In addition, strategic planning includes the identification and analysis of possible risks. After identifying risks, one needs to develop steps to mitigate them. On the basis of the above factors, one can determine everyday decisions, which is also part of strategic planning. Finally, based on the developed strategic planning, one will be able to implement all the business development stages.

Conclusion

To conclude, it is worth mentioning that given the above factors, the project is potentially profitable and attractive for investment. Primarily, it is articulated by the favorable economic climate and the development of this area and the growing number of companies that would use e-commerce. Further, the success of the project is connected to a developed approach to clients and a wide range of services. For example, the separation of C2C and B2C departments, which will allow the efficient evolution of each sector and the implementation of successful development strategies.

Moreover, one should mention that the chosen area has extensive opportunities for further development. The possibility of implementing cryptocurrency is important in terms of technology development. Possible risks include a high level of competition, which can be offset by unique offerings. In addition, an effective model for identifying and working with potential risks is proposed. Further, the financial analysis showed that the degree of development of this area is high and allowed to determine the most attractive areas for the extension. Finally, an effective exit strategy was also identified, which would minimize losses in the event of an unsuccessful launch of the company or difficulties in activity.

Reference List

Hague, P. (2019) The business models handbook: Templates, theory and case studies. Kogan Page Publishers.

Hoque, M., Rakibul, B. and Edward, R. (Eds.) (2020) Cross-border e-commerce marketing and management. IGI Global.

Bass, K. (2019) E-commerce and mobile commerce technologies. Scientific e-Resources.

Metawa, N. et al. (2019) Expert systems in finance: Smart financial applications in big data environments. Routledge.

Ostrom, L. T. and Wilhelmsen, C. A. (2019) Risk assessment: Tools, techniques, and their applications. John Wiley & Sons.

Kahraman, C. et al. (2019) Intelligent and fuzzy techniques in big data analytics and decision making. Springer.

Goossens, R. and Murata, A. (2019) Advances in social and occupational ergonomics. Springer.

Sasongko, B. and Bawono, S. (2021) Financial management: For future entrepreneur. BookRix.