...Factors Involved in Growing a Business Factors Involved In Growing a Niche Company In creating/starting a business, the biggest fear is, “will my product succeed?” No one has any idea of what the future holds, so there is always a chance for success. Where would the world as we know it be if there was no one willing to take a “risk”? There would not be the advancements in technology that is so necessary in our everyday lives. Those products we have become so dependent on began with the idea of success. With that in mind, I will discuss some of the factors that are involved with creating and growing a niche company. Identify at least three challenges when setting up a business. Explain why they are challenges. One of the first challenges faced when setting up a business is developing a product that you are familiar with. I suggest you acquire some skills, or the hands on experience it would take to successfully run your business. Not having researched the information would make it challenging because it would be hard to sell a product you know nothing about. Marketing would be another challenge you will face in creating a business. There are many obstacles you will face when expanding into your products market. Understanding the target market size would be very beneficial. Find out the need for the product in that market. research and get information on some of your competitors and their pricing. Always figure out ways...
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...challenges. Some challenges encountered when setting up a business are: source of funding, types of product produced and sold, and what type of audience the business is targeting for potential sales. Funding will always remain a top priority and challenge for any potential business owner. Without adequate funding, the business is sure to fail. Is it wise to begin a quest for success with failure determined from the beginning due to inadequate funding? In accordance with this concern, liabilities, in the form of loans or other elements, have to be established and if the business were to fail, a huge burden rests upon the ambitious character. When the attention is aimed at the business’ products and services, many factors have to be taken into consideration. Such elements like the economical stability of the nation, product brand and quality, type of hired employee, etc., are all factors which need to be considered. Should the wrong product be presented to the incorrect audience, the business is doomed because theoretically, sales will never exceed expenses. Finally, a new business owner should focus on his or her intended group. It is wise to start small and expand into new branches once the business has been acknowledged and is showing great promise. By targeting a wide range of individuals, the business owner is sure to allocate a lot of the funding for an array of products targeting all ages and preferences. This could merely take form as a hit-or-miss game. If the business...
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...the shape of demand The technology market is among the most competitive sectors in the economy. The suppliers in this field need to strategies adequately to ensure maximum sales in the market. Apple Inc has been a player in the technology market for some time and its products target the upper end of the market. The company ensures that it sales are quality driven rather than quality driven. The company being an innovation leader, it is able to exist in a monopolistic like market where regardless of the price demand for the product is always high. The company under evaluation is Apple Inc and the product they recently introduced into the market the IPhone. Focus will be on the strategies the company uses to make the demand curve steeper when the prices are high. The company is well established in the global market and has a high local following. The company announced the iPhone in July 2009 and it has a price tag of 599. This price discrimination strategy was aimed at ensuring that the product is associated with prestige and attracts the upper end of the market. After record high sales began to drop, the company reduced the cost of the devices to maintain the high profits. The company was able to derive high profits from low pricing strategy that the high pricing strategy. Apple had introduced a new piece of technology that had not been available in the market. The period between the July and September saw the company enjoy a period of no competition as the product was unique...
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...having a viable product or service to bring to the market. The selected product or service must fill a need in the market that is in general not presently being met, or is superior in quality to what is presently being provided. In a market that is saturated with product and services, finding an uncovered market or need demands innovative thinking. Money is the second challenge. After identifying the product or service, capital must be obtained to fund all the costs involved in the initial start-up. These costs would include such things as; securing a physical location for the business, up-fitting and staffing said location, hard costs to produce or supply initial deliverables, and a host of other ancillary items. Securing this upfront funding is difficult in an economy that is struggling with limited resources or incentives to receive funding from government or private investors. A third identified challenge, are the extensive requirements for a new business to insure that the product as well as the operation will be compliant with the myriad of federal and state licensing and regulatory laws. Examples of such requirements would include workman’s compensation, OSHA rules and regulations, payroll and corporate tax payment and filing requirements. A failure to address any of the applicable requirements would prevent a business from ever starting operations. 2) Define what a “niche” product is. Give at least three examples of niche products. A niche product can be defined...
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...Analysis Clean Edge Razor: Splitting Hairs in Product Positioning Group AE1: Abhinav Singh (14S601) Anima Tapadiya (14S607) Dushan Garg (14S616) Niharika G (14S628) Raviteja Palanki (14S636) Prem Sharath (14804) Q.1. What changes are occurring in the non disposable razor category? Assess Paramount’s competitive position. Changes occurring in the non-disposable razor category: Consumers are increasingly becoming aware of technology and are demanding for technologically advanced and innovative razors. The market is growing at the rate of 5% approximately from 2007-10. Every player in this market is planning to increase the advertising media expenditure which translates to say that the market is being tapped to its full potential. Also, distribution outlets are responding to the increasing demand by increasing the shelf space. To cater to this increasing demand, 22 new stock keeping units were introduced between 2008 and 2009. Initially, the distribution of non-disposable razors was limited to traditional food and drug stores. But over the years from 2007 to 2010, the distribution started to shift towards mass merchandisers and club stores. Paramount’s Competitive position: Paramount presence is in the moderate and value segments. Paramount’s products Pro and Avail were currently not able to cater to the demand for technologically advanced and innovative products. Paramount also faced competition from substitute products like disposable razors, electric razors, depilatory...
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...How to Select a Niche Market Brought to you by Chris Cobb Automated Income Stream Ltd © Automated Income Stream Ltd. All rights reserved. No part of this publication may be reproduced, sold, stored in a retrieval system, or in any form or by any means, without the prior permission in writing of the publisher. This is for your own personal use. 1 For legal reasons we are obliged to state the following: Disclaimer: To the fullest extent permitted by law, Automated Income Stream Ltd are providing this written material, its subsidiary elements and its contents on an ‘as is’ basis and make no (and expressly disclaim all) representations or warranties of any kind with respect to this written material or its contents, including, without limitation, advice and recommendations, warranties or merchantability, and fitness for a particular purpose. The information is given for entertainment purposes only. In addition, Automated Income Stream Ltd does not represent or warrant that the information accessible via this written material is accurate, complete or current. To the fullest extent permitted by law, Automated Income Stream Ltd or any of its affiliates, partners, directors, employees or other representatives will not be liable for damages arising out of, or in connection to, the use of this written material. This is a comprehensive limitation of liability that applies to all damages of any kind, including (without limitation) compensatory, direct, indirect or consequential...
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...Niche Market Defined According to Phillip Kotler, a niche is a narrowly defined customer group. Niche markets primarily consist of market segments within the larger market place who have similar demographic, psychographic, buying behavior and/or lifestyle characterics. The Fenix Group started with two entrepreneurs, Anthony Keung (Chinese) and Masaaki Ogino (Japanese) who shared the same business philosophy, which is aiming at niche markets, that most times are left untouched or under-served. How did Fenix identify and tap into different niche markets? Knitwear Manufacturing Niche Market The Group first niche was knitwear manufacturing after which they diversified into fashion and general merchandise retailing. Fenix identified every new niche market out of experience and knowledge gained from previous business opportunites. For instance, knowledge gained from working at a yarn manufacturing supplier enabled them them to move from trading imported Japanese yarn to Hong Kong knitted factories to expanding into knitwear manfacturing and setting up their own manufacturing company in Hong Kong. This venture was successful in the Japanese market due to increasing demand for high quality knitwear due to increased labor cost of local production. Fenix opened knitwear factories in South and Central China to minimize cost and improve their competitiveness by concentrating only on high quality knitwear due to increased price competition. This strategic move to China laid...
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...foreign businesses from the start. There are four main areas in which culture shock can affect business: consumer behavior, local demand, buying decisions, and brand image (Maitah, 2011). Regardless of whether a company is opening on domestic soil or overseas, consumer behavior plays a significant role in its success or failure. When investing internationally, the amount of time a company has to react to markets is limited due to increased investment costs. As a result, the corporation must offer a product of high quality at an affordable price in order to introduce and establish itself. Researchers from Butler University, University of Birmingham, United Kingdom and the University of Illinois at Urbana-Champaign theorize, “We reason that cultural factors are a part of the fundamental factors contributing to the formation of a person’s general perceptual lens. Specifically, we reason that cultural factors may influence customer behavioral intentions through perceived service quality which in turn is influenced by a service quality lens.” (Ching Liu, Furrer & Sudharshan, 2001) Their theory was further proven by the long understood equation that the better the quality of a product, the more likely the consumer is to develop brand loyalty to it and give recommendations to peers. Conversely, the lower the quality of a product, the more likely the consumer is to switch to a different...
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...from Internet as well as results of the previous BCD, our group will test each of strategy to find out what is the most appropriate one for Whole Food Market Company. Testing 1. Low cost provider strategy Work Condition | Evaluation | Product price between rival sellers is vigorous | YES: From the case, competitors of Whole Food Market are trying to lower their price to compete and gain customers. For example: Trader Joe’s price is so attractive with customer, Fresh and Easy also is 20-25% bellow traditional supermarkets that is similar with Wal-Mart’s price and Sunflowers farmer market... | Products are readily available from many sellers | NO:Natural & organic products are special products. From the case, most of retailers try to supply for themselves and carry their private product labels, ex: 45% of products on Fresh and Easy Neighborhood Market product shelves were supplied by themselves, 2000 items carries the Trader Joe’s label, Whole Foods also private label for their products: Whole Body, Whole Baby... | Industry product are not easily differentiated | YES:From summarizing information in each of company website, we can see that each of company has many same product lines with the same quality. | Most buyers use the product in the same way |...
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...effectively create a trendy counterculture image? Counterculture is a way of life and set of attitudes opposed to or at variance with the prevailing social norm (Oxford Dictionaries, April 2010). A creation of a counterculture by Wal-Mart or Sears might not succeed because of different reasons that play a huge role in the marketing techniques or tactics used by Urban Outfitters, Inc. Urban Outfitters, Inc. utilizes niche marketing and exclusivity as their main marketing technique or tactic while Wal-Mart and Sears are considered as large scale American department stores located throughout the United States. Unlike Wal-Mart and Sears, Urban Outfitters is exclusively and discretely positioned and targeted to a small niche. Urban Outfitters uses this strategy to ensure its products are scarce to the general population but exclusively available to certain areas that the intended niche’s population can reach. The created scarcity and resultant demand increases its popularity demand in the niche (Dalgic, 2006)....
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...job of anticipating the problems that beset the Segway? Feasibility analysis is the preliminary evaluation of a business idea, conducted for the purpose of determining whether the idea is worth pursuing. Dean Kamen and his team didn’t do a better job of anticipating the problems that beset the Segway because: • They did not do the market research before they sell this product. Thus, only based on the technological success and innovation, they overestimated the sale for the product – problem of PART 2 – A) INDUSTRY ATTRACTIVENESS. • Rather than identifying niche markets to penetrate and build from, the company saw its product as a solution in all markets – problem of PART 2 – B) TARGET MARKET ATTRACTIVENESS. Solutions of how Segway would do a Better Job of anticipating the Problems that beset the Segway: • Avoid overhyping: When the super-secret project got big corporate names like Steve Jobs and Jeff Bezos to sign off, the hype machine went into overdrive. The inventors' secrecy, the prominence of the endorsements, and the beyond-bold claims that this new product—whatever it was—would revolutionize our lives of course combined to skyrocket expectations into the stratosphere of the impossible. • Prioritize accessibility: Forget the marketing blunders that led up to Segway's release. Heralded as one of the world's most important inventions, when it hit the market, its pricetag was a lofty $5,000. That was, and is, out of reach for the everyman...
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...Feasibility Brief 1: Rowner Community Trust Events Management Ltd. * Rowner Community Trust summary profile - (re-phrased from the internet) Rowner community trust is a new charity organization that operates under the umbrella of Rowner World Company. They aim to support the growth of the area Rowner in Hampshire by focusing on its economic, social and environmental angles and contribute to its community development. Rowner Community Trust is a new initiative. Therefore, as any other organizations it is looking forward to grow its social business by developing new social ventures to support Rowner community and sustain its social business. * Rowner Community Trust next project Group 1 will focus on Rowner Community Trust next project. The Community Trust next project is to create an Events Management Social Enterprise. This new project will generate revenues by providing events management services such as catering, conferences and other events management services to the following target segments: * SME's * Large Corporates * Public sector * Non-profit organizations * Consumer markets in following geographic locations: * London * Regional organizations involving the following stakeholders * Rowner Community Trust * Rowner Community Trust community center * Rowner Community Events Group The revenues coming from the events management social enterprise services will help in sustaining Rowner Community Trust and will...
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...PARRISH, ERIN DODD. NICHE MARKET OPPORTUNITIES IN THE GLOBAL MARKETPLACE. (Under the direction of Dr. Nancy Cassill and Dr. William Oxenham). The purpose of this research was to analyze how a niche strategy can be used by US textile and apparel companies to compete with lower priced imports. With the increasing globalization of the industry, it has been suggested that companies focus on products that offer a competitive advantage over commodity products (Standard and Poor’s, 2003). One way of doing this is to focus on specialized, or niche, products. The conceptual models used in this study provided a framework for specialization within trade. The trade theories examined were 1) Ricardo’s Comparative Advantage Theory (Ricardo, 1817), 2) Heckscher-Ohlin Trade Theory of Factor Proportions (Heckscher & Ohlin, 1991), 3) Posner’s Technology Trade Gap Theory (Posner, 1961), 4) Vernon’s Theory of the Product Life Cycle of Trade (Vernon, 1966), and 5) Porter’s Model of Competitive Advantage (Porter, 1998). Each of these trade theories predicts specialization as a result of trade. This means that as trade barriers decrease, a country’s resources will focus on those processes in which it has a competitive advantage. For the US textile and apparel industry, this means moving away from basic textile items used in apparel production, such as basic fabrics, and moving towards more focused and specialty products, which includes niche products. The methodology used in this study consisted of...
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...1. Executive Summary The primary goal for the Brita products company is to obtain faucet mounted products’ retail market share by at least 10 % in 2 years as a niche product targeting younger people aged between 18 and 44 in western U.S. while maintaining the market share of pitcher products. The main impediment for this is that PUR, number 2 brand, already has owned 74% of total faucet mounts sales in market. The solution for this can be divided into 2. One is to launch innovated faucet-mounted products to earn the market, highly preoccupied with PUR and the other one is to redirect the market towards younger people for Brita pitchers. 2. Problem analysis The most important goal is to obtain faucet mounted filter product’s market share by about 5% in the first year and increase market share by at least 10% in the second year by launching the faucet-mounts as a niche product targeting younger people(18-44), maintaining water purification market share from pitchers. Increasing market share is the primary goal over building brand equity or increasing profitability for several reasons. Firstly, in the consideration of market share, water purification market’s future looks bright as the safety of tap water is growing concern to U.S households. A 1999 survey found that 72% of all respondents seriously concerned about the quality of their households’ tap water and the number of people not caring about water quality is decreased from 47% in 1995 to 35% in 1999. Therefore, when...
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...Situation Analysis Gluten intolerance or sensitivity is a problem. Many stores have started carrying gluten or wheat free, products for their consumers. With this gluten free trend rising, it is still hard to find gluten free beverages such as beer Smart phones and their applications have become a part of people’s everyday lives. Many people rely on smart phone applications for everyday tasks, such as banking, navigation, shopping and much more. As of June 2008, it was estimated that 43% or 44 million of the US population use smart phone applications. (Urso, 2009) With the rising use of smart phones, creating an iPhone application that allows people who require a gluten free diet to be able to find, log and rate places they find gluten free beer only makes sense. 2.1 Marketing Summary The gluten free market consists of people who are gluten free intolerant/sensitive, have wheat allergies or have been diagnosed with Celiac. This market is not highly targeted now, but the growing need for gluten free foods and beverages is increasing with every generation. Though gluten free consumers have increased to 27% since 2009, a recent Mintel research shows that those diagnosed with celiac disease or gluten intolerance/sensitivity is low. (PR, 2012) "The prevailing problem is that many Americans simply may not realize they are gluten intolerant/sensitive, or they may be ignoring signs and symptoms," says David Browne, senior analyst at Mintel. (PR, 2012) 2.2 SWOT...
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