Opportunities for Amazing Ideas Launch Its Product - Assignment Example

?amazing ideas Transition Windows transition Windows DC 7600 5/5 Preliminary Marketing Report Executive Summary Purpose The purpose of this document is to present a study of the opportunities for Amazing Ideas, a young company, to launch its product; Transition window, into the Australian market and to make an initial proposal that Amazing ideas pursue opportunities in Australia. Methodology Throughout the research an independent study based on internet and books all of which were instrumental in compilation and analysis was used (Wiid & Diggines, 2009)1. Phase 1 - Key Findings Amazing Ideas could be a major manufacturer and producer of Transition windows in Australia. This is due to the fact that most companies, mostly cars makers like Honda are planning to and ready to buy the idea. Therefore, after an evaluation of Amazing Ideas and its product-transition windows, strategies, the market, and possible competition, this analysis will make suggestions on whether the company should use a Local Sales Branch or not. Phase 2 - Key Findings Using the micro screening methodology several regions in Australia were evaluated. Climate and the ultra violet (UV) index (an informative way often used by the Australian Government Bureau of meteorology to describe the daily danger of solar UV radiation intensity) are factors that could prolong the potential sales. This criterion was used to weigh up a relative score for the country; it thus helped in narrowing down selection of the market. Phase 3 - Key Findings Given the abundance of minerals in Australia it would be ideal for Amazing Ideas with its product-Transition windows. Through analysis, it was determined that Australia has potential because of its mineral deposits, population, and climate. Phase 4 - Key Findings Ii was determined, through my analysis that if Amazing Ideas is to venture into this market, it would be an entry well counted for and therefore, it should incorporate the same strategies of pricing, distribution, and promotion used in Australia into the market because culture will not heavily affect the product. In addition, the company should focus on developing and producing superior quality products in order to make an instant impact in the market. Conclusions Amazing ideas could be a leading manufacturer of Transition windows in Australia if does venture into this market. There are opportunities that exist for the company to pursue in the Australian market given its limited strengths. Recommendations These will be founded on facts fathered during the research process on whether the company should go ahead and launch its product-transition windows and make its entrance in the Australian market. Table of Contents Table of Contents 4 Introduction 5 2. Phase one report 5 B. Company mission Statement 5 C. Amazing ideas Strategies 6 D. Industry analysis 6 E. Target Market Profile 6 F. Product Profile 7 G. Country Readiness 7 H. SWOT Analysis 7 3. Phase two report 8 A. Place (Location) 8 B. Macro-level screening 9 C. Indicators of Market Accessibility 9 D. Micro-Level Criteria Screening 10 E. Phase II Conclusions and Recommendation 10 A. Competitive Analysis 11 C. Market entry 11 5. Entry mode 11 6. Market Segmentation 12 7. Promotion 13 8. Summary conclusion and Recommendations 13 Introduction The purpose of this document is to present a study of the opportunities for Amazing Ideas to establish and launch its Transition Windows product in the Australian market. This research process provided an opportunity to prepare a thorough analysis of Amazing Ideas and its product- Transition Windows, in order to present a detailed report on opportunities available in the Australian market. This document includes background information that is developed with the assistance of a SWOT analysis. Using this analysis, both market and sales potentials in Australia were studied resulting into the development of entry strategies and marketing plans with conclusions and recommendations for pursuing this wonderful opportunity in Australia (Stapleton,1997)2. 2. Phase one report The objective of this phase is to conduct an in-depth situation analysis to establish a basis to assist in determining the company’s opportunities to compete in the market. Here is the scenario. A. Company Background Amazing Ideas a company that is to be headquartered in Australia, is eyeing to venture into the Australian market with its new product, Transition window. This company was established by students from the Swinburne University of Technology in the first year of marketing tutorial class. During this session the students came up with idea of transition windows with hopes of launching their invention which holds a considerable appeal to a potential Australian Market. B. Company mission Statement Amazing Ideas’ mission is to be the industry leader in producing superior quality transition window products and an innovator in product development. The company would be a leader if it develops high quality products that are cost- effective. It aims at providing a positive return on investment to its shareholders as well as foster long term relationships with its customers by maintaining high standards of product quality it sets. It will provide a safe and rewarding environment for all employees and create an environment that fosters innovation in product development. C. Amazing ideas Strategies Production Amazing ideas production strategy is to promote a consistent quality approach within its culture. It should use a Total Quantity management and an Organizational objective to achieve an International Standards Organization (ISO) accreditation. Attaining and maintaining this quality standard will enable the business process to be improved in a continuous manner to enable delivery of the highest level of customer care services and product quality. Marketing The company should seek to develop a product and a market through diversification strategy. This can be accomplished by being a product innovator Human Resources The company should seek professionals to sit in its office and experienced production managerial positions. This should help in developing a dynamic culture within the company. D. Industry analysis Amazing Ideas is in both housing and automobile industries. The total housing and automobile industries are mature. The housing industry in itself is mature, even though the current climate has caused the sale of houses to plunge down since 1994. It’s also a point of concern that industry regulations are moderate in both the housing sector and the Automobiles industry. Economic Trends The price of Transition windows will be directly affected by the general trends in both the Housing sector and Automobile industry. In the case of housing sector, sales of houses have plunged to the lowest. This can be seen as a struggle in the real estate sector. This would generally affect the sale of Transition windows. But in the case of Automobiles, the sales can be projected to be higher given the ever growing sales figures for cars in Australia. Technological Trends The technological trends in this industry would hugely depend on the rate at which the housing and the Automobile industries change. For instances the housing sector is already using social networks to market itself. Demographic and Climate The general trends in this area are just fads. They include changes in people's tastes and fashion, Climatic changes mostly the UV radiation. E. Target Market Profile The projected users of the transition windows are real estate developers, Automobile makers, car owners, and homeowners. The majority of these people are either working class, or residents of star estates. It is target consumers who hold the final decision on whether to purchase the product or not. This targeted market is major decision makers as far as the manufacture of transition windows is concerned. F. Product Profile The transition window is considered as an industrial good that is used in homes and cars to block or reduce the amount of light leaving or entering the house or the car. Amazing Ideas is basically entering the Australian market as a new company. Its product Transition windows are set to enter the market via the introduction phase. G. Country Readiness Given the country's population and the climate it was concluded that the country is ready to welcome the new product. Through visit on the Australian Government Bureau of meteorology website it was established that the amount of radiation that currently being emitted is way too high (bom.gov.au)3. As a result, this gave the valuable information that the country is ready to embrace the product. H. SWOT Analysis This analyses the key strengths and weaknesses of the company and describes the threats and opportunities facing Amazing ideas Strengths Amazing Ideas should create and make Transition windows a reputable product. The Transition windows should be high quality and provide financial value its customers. Develop a high and diverse product line and offer a quality product to its customers. Weaknesses Amazing Ideas should not hugely depend on either the housing sector or the Automobile industry to gauge its growth or even to make an impact in the market. This can hugely affect its projected sales volume and profitability Amazing ideas will hugely rely on the mines or the availability of the raw materials need in the manufacture of transition windows. A reduction in the availability of materials will directly hamper its production. It still lacks the market presence. Opportunities Amazing Ideas is in a country where the climate; UV radiation is matter of concern. The housing sector is currently catching up and as result there is a slight increase in the number of homeowners. Additional research on Transition windows could enable the company to develop an even better quality product. The product (Transition windows) is applicable in houses and cars and there is yet a company to embrace that idea. Sales opportunity exists in Australia where there is an already mature housing sector and a good Automobile industry. Threats A reduction in the availability of raw materials in Australia would be catastrophic to Amazing ideas. A further decrease in the demand for houses caused by inflation would reduce consumer confidence in the product. Competition from new entrants could threaten the viability of Amazing ideas Transition windows. I. Phase one Conclusions and Recommendation According to the above information for Amazing ideas and transition windows on the Australian market suggests that Amazing ideas should establish a good media for promotion. It is recommended that Amazing ideas complete the research in order to establish a suitable location that will host the company. 3. Phase two report The number one objective of this Phase two was to identify high potential location to market for Amazing Ideas product for the purpose of manufacturing products in the selected markets. Here’s the analysis; A. Place (Location) Seven possible regions where Amazing ideas could enter its products into the Australian market were reviewed. The main idea behind determining the list of regions to review included an estimated population by region and the overall trend of industries in the given region. The regions chosen for review, based on the above stated criteria, included: Melbourne Sydney Brisbane Hobart Perth Darwin B. Macro-level screening In determination of Amazing Ideas’ ability to define its products worth, macro-level variables below were selected to help analyze each identified region. It was believed that the variables will be able to impact Amazing Ideas’ market potential in the country. peoples population Land Area Climate Gross national Product Raw materials It was determined that climate is the most critical variable, giving it a of 50%weight. It got that weighting because it is vital to Amazing ideas success in the country. This is because Amazing ideas product (Transition Window) is solely used by car and homeowners. Raw materials as the second most important criteria giving it a weight of 20% because Raw materials is a major determinant in Transition windows production. Land Area must be in abundance for the company's manufacturing plant to be raised. Gross national product and people’s population are also important factors in determining success of Transition windows production; each got a weight of 10%. GNP (Gross national product) is important because Australians must have enough wealth where citizens (homeowners and car owners) are willing to pay for the product. C. Indicators of Market Accessibility In order to determine Amazing Ideas’ ability to launch its products the variables below were selected to analyze the market accessibility for each identified region. I believe that these variables will impact the company’s success in the country: Transportation Systems Attitude Toward Imports Protection of Patents and Trademarks Embargos Tariffs and duties Location Location, Protection of patents and trademark got a 25% weight. It is critical to do this in order to protect the company's legal assets, which is one of the major competitive advantages. Transportation is also important and so it was awarded a weight of 20%. Even if the potential customers could or would use the product, a way has to be devised to get the product to the distributors and the ultimate potential customers. Tariffs and duties are therefore important variables here and are weighted at 15%. This is because if they are too high, it would cut into the company's profit margin and may make marketing impossible or non logical. Embargos and location from Amazing ideas market operations are also important and they were weighed 10% each. Embargos are important because if the government doesn't allow us to trade in the country, then the company won't have any expansion plans. D. Micro-Level Criteria Screening The following micro-level variables were selected to help me analyze the regions identified in an attempt to determine the company’s ability to engage its product into the market. Here are the variables: Local Competitors Local Production of Comparable Products Possible international Competitors Export of Amazing ideas Product Possible local competition is the most critical variable in this category and it was awarded a weight of 30%. This is because the higher the level of competition, the harder it would be to penetrate the market. The local production of comparable products is also important and was given a weight of 30%. It would be of great importance that the company to be in Sydney because it’s not that flooded and this limits the risk of margin erosion. Possible International competitors are also as important as the local competitors and therefore were given a weight of 20%.The international competitors could try to export their product into the identified regions and this could also erode margins and volume. The possibility of exporting the company's product is also important. The company might want to export its products to other countries as its still establishing some arrangements to produce within/in that country. Finally, competition is an important factor in any market or any industry and therefore cannot be ignored. Higher competition erodes margins in a segment of the industry hence requires technology for innovation and as a result must allow for healthy margins. E. Phase II Conclusions and Recommendation As per the analysis in Phase two, Melbourne and Sydney proved to be the best options for helping the company grow. The other regions analyzed are, Brisbane, Hobart, Perth, and Darwin are cited as having less opportunity for Amazing ideas to be successful as compared to Sydney and Melbourne. Of these two regions accepted, it appears that Sydney is the better choice of the two. Sydney scored an 89 out of 100 and Melbourne scored a 75 out of 100. It is recommended that the company continues to analyze its options of producing and marketing Amazing ideas Product in Melbourne and Sydney 4. Phase three report The general objective of this Phase was to identify the best target market region for Amazing Ideas and its product. Here is my analysis: A. Competitive Analysis Sydney Two potential competitors all of whom are planning to launch their product were identified and a competitive analysis to Amazing Ideas done. Although their products aren’t as similar to that of Amazing Ideas, they still do possess a great deal of threat to the company. Research shows that there is abundance sodium in Sydney and could be acquired at a price lower than that at Melbourne. It further shows that pricing of products in Sydney appears to allow for margins that can sustain a healthy business and that overall environment isn't that intense in terms of competition. Melbourne Two contacts were identified within Melbourne. Both were quick to agree that there is an abundance of resources that exist in Melbourne and that Amazing ideas could use this to establish its product operations. Two possible competitors were also identified in Melbourne and a complete comparative analysis of each to Amazing Ideas undertaken. The competitors identified in Melbourne are also planning to produce a product similar to Amazing Ideas’. In general, the target market and products are almost comparable to that of Hobart. B. Amazing ideas Sales Potential Sydney Since all there is virtually less no competition transition windows market in Sydney, the unrealized market potential is around $600 million, which is estimated to be the total market potential. Based on this information, it is estimated that Amazing ideas could potentially achieve a protracted 40% of this market potential. Melbourne Transition windows’ sales in Melbourne are estimated to be around $160 million as compared to the estimated market potential of $200 million. Amazing ideas estimates that it could achieve 18% of the total market potential by establishing a presence in Melbourne. C. Market entry In Australia the Payment and Financing Method is already developed the banking system is already well established. 5. Entry mode Drivers Entry Mode A B C D E F G H I j Total score Confirming new houses 2 3 4 3 3 2 5 2 2 2 29 Indirect export 5 4 4 2 2 3 4 3 3 3 34 Direct export 3 5 2 3 2 2 3 4 4 4 32 Foreign based sales branch 2 4 2 3 4 3 3 3 4 4 32 Foreign based market subsidiary 2 3 2 3 4 3 3 3 4 4 31 Wholly owned manufacturing subsidiary 5 5 3 4 5 4 5 2 4 4 41 Joint venture( manufacturing) 5 5 5 5 5 5 5 3 5 5 48 Joint venture marketing 3 4 4 5 5 5 5 4 5 5 45 Franchising 2 2 4 4 5 5 5 5 3 4 39 Licensing 2 2 4 4 5 5 5 5 3 4 39 Management contract 3 3 4 4 5 5 5 5 3 4 41 E-commerce 1 5 3 2 5 3 1 5 2 3 30 Drivers Key A = Goals/Objectives B = Control C = Resources D = Experiences E = Competition F = Regulations G = Market Size H = Risk  I = Flexibility J = Feedback The entry mode with the highest score was a manufacturing joint venture. Thus suggests that Amazing ideas should develop a manufacturing joint venture assist entry mode strategy for Sydney. The results are based on Amazing ideas desire to exert control and involvement in production. In addition this arrangement along with some type a marketing arrangement would allow Amazing ideas to learn about operating and marketing in Sydney. 6. Market Segmentation The variables below are used to distinguish the target market that Amazing ideas would pursue in Sydney Variable Variable class Target class customers Homeowners Car owners Real estate developers Automobile industry Distribution indirect wholesale indirect retail D direct Indirect whole sale Product purpose Growth Light reduction Growth This analysis shows that Amazing ideas will pursue the car and home owners through indirect wholesale and will focus in products that will foster and improve their growth (Croft, 1994)4. 7. Promotion Advertising Amazing ideas will use print advertising to reach the end consumer. The advertising should be included in trade magazines for real estate developers. In addition, Amazing ideas should develop a publication on product info and distribute through its dealers. The publication should also have articles that explain the basic information about Transition windows as shall be used as a platform to explain the benefits of Amazing ideas products. Sales Promotion Amazing ideas could use a push strategy by creating a dealer incentive program that will strive to encourage and reward dealers for selling its products (Bowman, 2000)5. Publicity Trade Shows should be the main publicity tool used. It could be use to explain more details the importance of the Transition windows 8. Summary conclusion and Recommendations After a thorough review, it has been determined that Amazing ideas should make its appearance in Sydney. The reasons why Sydney was selected over other regions is due to its population, which is one of the largest in Australia. Other reasons included were environmental factors like weather, governmental regulations, transportation, and dealer networks in both housing sector and Automobile industry. Bibliography Electronic Source http://www.bom.gov.au/uv/index.Shtml Stapleton, J. (1997). How to prepare a marketing plan: a guide to researching the consumer market. Hampshire, Gower. Croft, M. J. (1994). Market segmentation a step-by-step guide to profitable new business. London: Routledge. Wiid, J., & Diggines, C. (2009). Marketing research. Lansdowne, Cape Town, Juta. Bowman, R. (2000). Promotion marketing: tools and resources. Stamford, CT., Intertec Pub. Corp. (Promo Magazine). Read More