Market Expansion and Segmentation factors - Essay Example

Market expansion and segmentation factors Affiliation Market Expansion and Segmentation factors Market segmentation is very crucial in the development of a new business or the entry into new international markets. As an important factor in business expansion, this concept should be observed with the utmost professionalism. In this case, the criteria for the identification of new and promising markets should pay particular attention to the geographical factors, demographical factors, the economic environment, the political and legal factors, and the cultural factors in question.

Therefore, this section will analyze the potential markets in tandem with these propositions as a way of establishing the expansion possibilities of the operations of Runjhun Jewelry. Geographical and demographical factors As a luxury good company, Runjhun Jewelry should consider the geographical as well as the demographic factors that will facilitate an efficient market expansion. When it comes to geographical considerations, the size of the market should be manageable within the operational budget of the company.

A smaller but concentrated market will be idyllic for Runjhun Jewelry. It is, however, imperative to consider the fact that the market demand for the exotic Indian Jewelry should be in a position to justify the expenditure empirically. Concerning the demographic factors, the customers within the stipulated market should have the preferences and taste towards the exotic Indian jewelry. Therefore, the societies in such a scenario should be ethnically diverse. The diversity of the cultures will play a critical role in the increase in demand for the exotic Indian jewelry following the cultural cohesion that is more of a modern trend.

In fact, Runjhun will enjoy a greater market in the event where the society appreciates art, fashion as well as cultural diversity. Additionally, the society should have easy access to the internet following the online nature of the company. With easy access to the internet, the potential consumers will have an interactive platform to shop for their desired exotic jewelry. Economic environment The economic context of the potential market is equally important in the decision-making process regarding the market expansion.

From a critical point of view, the economic conditions of a given region will shape the consumption pattern of the people living within the market frame. In this case, therefore, the company should consider expanding into areas where the employment rate is relatively favorable. An employed society will have a better consumption power, which will increase the estimated profit margins of Runjhun Jewelry. Specifically, the expected economy should be a middle-income economy, which is characterized by a society with disposable income.

On the need as well as the utility, most luxury goods tend to thrive in markets where the people have disposable income. Political and legal factors The political environment is equally imperative in the identification of new markets. Governmental policies regarding foreign direct investments affect cross-border expansions of various companies. In this case, therefore, the given market should have fair governmental policies as well as reduced tariffs, which act as impediments international trade and globalization (Art, 2014).

With the elimination of these barriers, the exotic Indian jewelry will reach the intended market hence a better company performance regarding revenue and market share. In conclusion, the expansion of the company’s operations into other countries will be successful if the discussed guidelines are adopted. Works Cited Art, W. (2014). Lifestyle Market Segmentation. Chicago: Routledge.