The Marketing Aspect - Essay Example

The Marketing Aspect Essay

From an idea to its execution, the path to the financial success of a business is laden with high risk. This applies to all aspects of life, but more so with launching new products. To alleviate that risk of wasting money and time, economists have developed a construct called a feasibility study. These studies feed upon all the relevant factors that exist on the market for the specific business type, which may aid or halt the progression of product deployment and sales. One such feasibility study, in the Marketing Aspect Essay, is the Marketing Aspect concerned with the Camias bleach. It is an outstanding example of how a feasibility study should be conducted, as it takes into account the demand for the product, its competition, and how should it be most cost-effectively priced and marketed.

Marketing Aspect’s Goals:

The purpose of a feasibility study is to outline all the market potential and competitive threats presented to a bleach product derived from a locally grown tropical fruit called Camias.

• Assess the demand for Camias, given the existing competition in the marketplace.
• Determine the metric by which the price of Camias should be set.
• To locate the target market for the product.
• How to construct a marketing campaign to best introduce Camias to potential buyers.
• How to convince potential clients that a naturally-derived bleach is superior to its competition.

Market Assessment

Analyzing the market gives us an insight into the balance between economic opportunities existing in the market and the threat presented by other competitive products. In a vacuum, if one were to create an original commodity, the latter would not be necessary. However, in a world where everyone copies each other, a sound strategy is needed to counter the competition. Marketplace analysis is the first step in developing such a strategy.

Threats and Openings

Accounting for the threats that other line of products in the same niche present and that cannot be avoided. Likewise, exploring the gaps in the market left open by competitor businesses.

Openings

Determining the openings for Camias that are not readily available for other competitive businesses? The first among them is the abundance of the main material used in the creation of the commodity. As a signature tropical fruit of the Philippines, Camias serves as an excellent raw material that can be found and collected easily on the island. This translates to the low cost of initial production. Moreover, Camias has other net benefits for the launch of the product:

• It may be acquired locally at markdown prices, across the country.
• Camias is widely regarded to be environment-friendly, as a non-toxic fruit. Other chemical bleaches cannot claim the same.
• The novelty of a bleach made out of natural fruit may be a very appealing proposition for buyers, both of low and higher income.

Threats

Identifying all possible factors present in the environment that may exert a negative impact on the launch and proliferation of the merchandise.

• More conservative buyers, no matter the income level, may not openly embrace newly-launched products.
• Consumer habituation is one of the main obstacles to launching a new commodity, especially for a new business. If something works, “why change it” is a common line of reasoning. This is why novelty and pricing must work in unison in the initial stage of product deployment.
• It is likely that natural forces, such as tsunamis, storms, and typhoons, may disrupt the supply chain of raw materials.
• Other companies that manufacture the same type of commodity, especially those with an established marketing presence.
• The economic instability that may lead to lowered purchasing power, in which case people would opt for the cheapest versions of the product possible, regardless of marketing.

Environment Assessment

A newly-formed business has to face numerous challenges. A feasibility study deconstructs these obstacles into five main categories: political stability, demographics, economy, nature, technology.

Demographics

The business needs to establish the total environment landmass of the intended product deployment, its infrastructure, and the layout of the land. For the purpose of launching Camias, the targeted market would be situated within North Bay Boulevard South, situated in Navotas, with a landmass of approximately 255 sq. m. This translates to a population density of at least 270, and a total population of about 68,000 potential customers. The population is largely young and male.

Economy

The city of Navotas experiences growth from 5% to 10%, according to data from BPLO, issued in 2009. The city’s economic and business activity can be divided into three strata of income. 70% of people have low income, 20% have middle-class income, and 10% of the population have a high income. Given this data, the bleach should be priced reasonably, although the inherent novelty of the product may attract higher-income customers.

Nature

Any business would find the abundance of necessary raw material within the local environment as the ideal starting position. Such is the case with the tropical fruit Camias, which is abundant in the Philippines and grows all year long. Provincial areas hold the highest density of the fruit trees, but great availability is also present in Metro Manila. Furthermore, wet markets can be used for the acquisition of its small piled called tumboks. Outside of an unprecedented and major natural disaster, the supply of the fruit should be uninterrupted throughout the whole year.

Technology

The implementation of technology is key in cost-effective and large-scale production of Camias. No doubt, competitor businesses already hire the most advanced chemical processing plants in the country, but their processes can be replicated by other bidders.

Political stability

If there is one thing that marks Third World nations, it is the fact that they are rife with corruption, from top to bottom. The Philippines is no exception. Therefore, spotless business documentation must be ensured so it doesn’t leave any wiggle room for bureaucrats to exploit. The only issue that might arise is the time it would take for the process to complete, from the moment of application to final approval. Local politicians and media personnel should be approached to explain the benefits of opening a new business, which would aid the infrastructure of their communities. Thusly, as the local community receives the benefits of a new business, the politicians in charge of leading that community become more popular. Such dynamics of local politics should be mined so that local politicians receive sufficient incentive to speed up the process.