...maximizing profits, achieving ideal production levels, determining fixed and variable costs, and identifying methods to reduce the costs. The business proposal will establish that it is in the best interest for both clients and consumers. The current economy has been declining which has driven Thomas Money Service Inc. to find other methods to stabilize their profits, reduce loss, and help to gain or maintain market share. Thomas Money Service Inc. has been hit by the slow economy and the decease in the homebuilding market. The business proposal model will help Thomas Money Services Inc. to put in place applications to increase revenue, profit maximization quantities and to establish a mix of pricing and non-price strategies with low marginal cost and revenue theories. These applications will offset the negative impact of the decease in the homebuilding market. The business proposal presents methods to overcoming barriers to entry in to the market, how to increase product differentiation, how to input applications that will show potential cost savings for productivity and product pricing, and how to increase separations. Increase Revenue and Profit-Maximization Quantity To increase revenue and profit maximization for production quantities, Thomas Money Service Inc. needs to invest into another subsidiary within the medical industry. The company needs to focus on new construction within the long-term care centers and hospitals....
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...under-pricing rivals. b. a broad differentiation strategy: seeking to differentiate the company’s product or service from rivals’ in ways that will appeal to a broad spectrum of buyers. c. a focused low cost strategy: concentrating on a narrow buyer segment and outcompeting rivals by having lower costs than rivals and thus being able to serve niche members at a lower price. d. focused differentiation strategy: concentrating on a narrow buyer segment and outcompeting rivals by offering niche members customized attributes that meet their tastes and requirements better than rivals’ products. e. best cost provider strategy: giving customers more value for the money by satisfying buyers’ expectations on key quality/features/performance/service attributes while beating their price expectations. 11. What are distinctive features of a broad differentiation strategy? Under what circumstances is a broad differentiation strategy appealing? The distinctive features of a broad differentiation strategy are: command a premium price, and/ or increase unit sales (because additional buyers are won over by the differentiating features), and/ or gain buyer loyalty to its brand (because some buyers are strongly attracted to the differentiating features and bond with the company and its products). A broad differentiating strategy is appealing when buyer needs and uses of the product are diverse, there are many ways to differentiate the product or service that have value to buyers, few rival...
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...Analysis Entering its first year of service, The Wash will utilize a comprehensive marketing strategy to position itself for a timely and lasting success. The basic market need is a premium exterior/interior auto care facility that will exceed customer expectations. Market Summary The target market has a population of 68,925 people. The Varina District of Henrico County is a growing community that is brimming with opportunity for economic development. Market Demographics • Population in target area 68,925. This number is expected to grow 4.5% by 2011. This is important as it relates to self serve revenue • Three car dealerships in target area • Three apartment complexes and a town home development in target area Market Needs • A premium automatic wash offering the latest touch free technological advances • A high quality self serve wash offering the convenience of bill acceptors • A central location for premium hand wash and detail services Market Trends There has been an upturn in the carwash industry. The average home washer is being encouraged to wash their car at a car wash facility. This is part of the “Green” initiative to prevent the inevitable chemical waste from being absorbed into the environment. SWOT Analysis The following SWOT analysis captures the key strengths and weaknesses within the company, and describes the opportunities and threats facing The Wash. Strengths • Strong market demographics ...
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...Sample Write-Up for Auto-Graded Market Research Assignment This is an example of what one of your peers in BMGT350 wrote for the Market Research Auto-Graded Assignment resulting in a score of 4 for each of the 5 graded elements. The feedback below shows what it takes to get a 4 for each of the areas. Development of Ideas: Response identifies relevant and important issues to be answered through market research. Issues cover customers’ needs and/or wants as well as the competitive environment. Issues chosen demonstrate insight with respect to market research and the likely goals of the company AND Response provides an insightful and logical explanation of the purpose of exploring the issues cited. These explanations clearly demonstrate an understanding of how data collected through research informs marketing decisions. Organization is effective and demonstrates a logical flow of ideas within the response. Transitions effectively connect concepts. Contains an effective introduction and/or conclusion. Conventions: Demonstrates sophistication and skill with a wide variety of conventions. May contain minor editing errors in grammar, spelling, punctuation, or sentence construction. Errors do not interfere with the reader’s understanding. Voice is appropriately authoritative, indicating a high level of comfort with the material. Words used are precise and well-chosen. Sentences are varied and have a natural fluidity. Focus & Coherence: Through a combination...
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...Chinese Joint Venture (JV) is facing trouble among its two owners that have different objectives. American based Heartland Spindle is looking for higher profits and a move to higher quality clothing markets in the USA while Suzhou First Textile Company, the Chinese partner, is looking to enter the domestic Chinese market and expand its manufacturing capacity through job growth, in line with local government pressures. My recommendation is to first focus on what is best for the JV given its situation and opportunities – which is to grow through acquisition and focus on expanding its current clothing products into the Chinese Domestic market. From that analysis with the implied 4% ROI, Heartland should to exit the JV and invest in entities that better meet its needs and expectations in countries that are more attractive to its needs. Finally in the future Heartland should be more careful when entering into JV agreements so that all parties have an appreciation for cultural differences, a common understanding of objectives and directions that are embedded in the JV agreement. Note – the Executive Summary is one area that is repetitive of other sections given its nature. B. Industry Dynamics: The Zhong-Lian Joint Venture (JV) is currently manufacturing clothing for the US mass market, a strategic group within the overall apparel industry (versus high end fashion brands). Their clothing is sold through retailers such as Walmart and Target. Customer value must be provided to the retailers...
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...Using market research to support decision making MARKETING Introduction Organisations that operate in the business-to-consumer (B2C) market are increasingly turning to market research to support their decision making processes. A retail business, for example, might be considering opening new stores, expanding internationally, proposing to diversify its product range or thinking about acquiring another company. Before proceeding, the business will require specific information to understand the implications of making such changes. The process of collecting this information and developing this understanding is known as market research. This case study focuses on how JD (part of JD Sports Fashion PLC), the UK’s leading retailer of fashionable sports and leisure wear, uses market research to support and develop its business. As a B2C retailer, JD’s performance depends on providing the most desirable brands and products at the right price and in the right locations to meet with the demands of the consumer. The group has also secured brands such as The Duffer of St George, Sergio Tacchini (under UK licence) and the fashion brands Chilli Pepper, Nanny State and Sonneti. The JD Sports Fashion Group now has over 900 stores across the UK and Europe and a reputation for stocking exclusive and stylish ranges. What is market research? The exchange between sellers (supply) and buyers (demand) for particular goods or services is called a market. A market does not necessarily exist...
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...http://www.emarketer.com/newsroom/index.php/apparel-drives-retail-ecommerce-sales-growth/ Phil Wahba (2011) EBay forecast pleases as PayPal, auctions gain users. Retrieved from: http://www.reuters.com/article/2011/04/27/us-ebay-idUSTRE73Q7Z920110427 Don Davis (2012) Amazon’s North American sales rise 36% in Q2. Retrieved from: http://www.internetretailer.com/2012/07/26/amazons-north-american-sales-rise-36-q2 Online Sales: Different requirements for online marketing Rebecca Gill (2011) Successful Internet Marketing Begin With Goals. Retrieved from: http://www.web-savvy-marketing.com/2011/01/successful-internet-marketing- campaigns-begin-with-goals/ Biana Babinsky (2009) Make Marketing Easier – Define Your Target Market. Retrieved from: http://www.avocadoconsulting.com/articles/c1/easy-marketing.html Brian Benson (2012) Learn More About Internet Marketing. Retrieved from: http://www.morpheyous.com/371/learn-more-about-internet-marketing/ Hubert Hopkins (2009) How Much Should Your Company Spend on Internet Marketing? Retrieved from:...
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...Proposal As BJB Manufacturing is attempting to penetrate the new car and aftermarket segments of high-end compact disk (CD) changers, it has become increasingly important that a quality management approach is developed. This plan will outline the process that management will use in order to assure that BJB operates according to quality standards. In order to revise the current approach to production BJB Manufacturing should incorporate inductive reasoning and also several steps from Deming’s theories to quality management. For starters it is recommended that management ascertain quality requirements for new manufactures of CD changers. In order for BJB to become one of the leading CD changer producers a constancy of purpose need to be created with the intent to improving the quality of the compact disk changers that we provide. There are a few things to be done in order to obtain these goals stated above and become the premier producer of high-end CD changers. BJB Manufacturing need to obtain a quality supplier if quality products with a local distributer as too be able to keep a constant supply of goods without having to run short during production. There also needs to be a quality control process implemented prior to production and assembly. Stakeholder Needs for BJB Products BJB Manufacturing Company strategy is to become the premier producer of high-end CD changers for the new and aftermarket automobile industry, which requires extensive research into...
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...highlight new or adjacent sectors for further investigation; * issue identification and formulation of offer – structured interviews covering size and scope of potential customer activity, existing products/services, current purchase criteria and trends combined with database and financial analysis leading to a formulated offer; * opportunity quantification – having formulated a product or service offer, further structured interviews, questionnaires or web-polling to establish probabilities of spend, movement to new product, service or supplier, information channels and timing; * product/service launch programme – planning and developing a launch or expansion building on the contacts made, developing new targets and adjusting the percentage spent in marketing areas; * segmentation and refinement – ongoing work to analyse the returns, setting sales and commission targets, developing target ‘take’ and return figures Step 1 - Read websites and blogs about the market Before doing business in any new market, read websites and blogs about that particular market. Fortunately, there are websites and blogs written about almost every market in the world, describing its history, culture, business customs, key players and local business politics. Step 2 - Talk to people who already know the market and its culture Don't reinvent the wheel. Talk to people who already know the market and its culture before you try to enter it. Find people who have done business in-market, or...
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...tested method would be to gain advantage in foreign markets, be it Israel or Hong Kong, is by exploiting capabilities first developed at home. This is also termed as capability-based model. With this, the firm can exploit local comparative advantage efficiently (as it exploited at home), to leverage its bargaining power across markets, and to arbitrage cost differentials effectively. (Tallman, 2009). But then it is not so easy to copy and get the capabilities transplanted elsewhere in the global arena. Going from national to international is a whole new ballgame and there are lot of things to consider from preferences to culture. For any capabilities to be transplanted we need to know if these capabilities are relevant, appropriable and transferable to and whether a particular market is suitable for the successful positioning of home-market businesses, in this case Chick-fil-A. Therefore, in that situation, it is beneficial to create new capabilities. This is built through exposure to new markets, internalization of new concepts, ideas from new cultures, access to new resources, and exposure to new competitors, and terms of competition. (Tallman, 2009). Develop new capabilities is to be considered explicitly so as to determine whether the new additions will actually result in an overall enhancement of the company’s capabilities and its global competitive position. More often, the company is humbled by the geographical and cultural difference and made to adapt with new ideas...
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...issues and the recommendations clear for the reader. No need to discuss processes or extraneous items. Industry Dynamics – identifies key issues about how the industry and key competitors operate to provide customer value and profitability 5 Identify how the industry actually operates – are there strategic groups within the industry, how do key competitors provide value to the customers, how do firms generate profits and are there any resources, capabilities or collaborators that are key to success. Performs an insightful Situation Analysis using at least 3 frameworks appropriately (appendix)– IDs key issue(s) 20 Frameworks include such tools/concepts as: Stakeholders Analysis, SWOT, Root Cause, 5 Forces, 5 C’s, Market Expansion grid, etc. The actual frameworks should be placed in the Appendix. Use numbers! Specifies Opportunities Available or Penalties if problem continues 5 Impact of situation or opportunities are clear& specific – magnitude is identified (answers “so what” Appreciation) use numbers whenever possible! Logical Reasoning for Evaluation Criteria 10 Criteria for evaluating the decision are relevant and meaningful while also being discreet Options Identified are Creative & Realistic 15 Options are creative and have pros and cons identified Options Evaluated accurately (matrix) 10 Alternatives evaluated against criteria established above. Note -...
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...objectives by satisfying customers. However, traditional marketing concept is necessary but not sufficient condition for company goals. Therefore, in order to achieve successful, the modern marketing concept is to achievement and set of corporate goals through meeting and exceeding customer needs and expectations better than the competition. However, marketing concept including three condition, customer orientation, integrated effort and goal achievement. First, Corporate activities are focused on providing customer satisfaction rather than others. For example, provide good customers service and producer convenience. Second, all staff need to accept the responsibility for creating customer satisfaction. Company should right to operation production, finance and developing department. Finally, the company achieves goals through customer satisfaction. However, there are has the limitation of marketing concept. Four issue, the marketing concept as an ideology, marketing and society, marketing as a constraint on innovation, and marketing as a source of dullness. Marketing orientation: Marketing orientation focus on customer needs. Company need to change present potential market opportunities to drive the company. Marketing orientation companies seek to demand of current marketing and latent marketing to adapt their product and service. And company gets closed to customers that understand their need and problems. For example, BMW corporate according to customer different...
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...Introduction This report shall focus on China as the world’s largest emerging market, examining how managerial practice in China differs from Western practice. This report shall attempt to offer guidance to managers operating in China, taking into consideration issues outside their normal experience, for example government regulation and cultural differences. According to Justin Lin, The World Bank's chief economist, China, which became the world's second largest economy in 2010, may become the world's largest economy in 2030, overtaking the United States, if current trends continue. Taking this into consideration we can see that not only is China the world’s main production market but also the world’s centre for consumption. It is crucial that western businesses and managers understand how to do business in China and the issues they may face in management practice in an international and cross-cultural context. Political and regulatory considerations for doing business in China, Anti-gifting regulations in China The giving of gifts is an essential part of Chinese culture (Yang 1988). Personal and corporate gifts accounted for approximately 25% of luxury goods sales in China in 2012. Bain et al (2013) This sale percentage is now at risk as the Chinese government attempts to combat both the act of corruption and a negative view among the population of the behaviour of politicians. As part of the anti-corruption campaign, in July 2012, the State Council passed regulations...
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...WHEN ENTERING A NEW MARKET IN B2B ENVIROMENT: Understanding the B2B Dynamics Seminar Report ii ABSTRACT With the rise of globalization and saturated local markets, many companies started chasing international opportunities that would help them expand to new countries and increase their brand recognition around the globe. One of the challenges that companies face while entering a new market is defining the right price and pricing of their offering to be competitive and successful in the market. In B2B area, there are not any wide research on pricing issues that companies face in the markets that they are planning to enter and the effects of business relations on pricing. This paper focuses on market entry strategies and market entry modes, the fundamentals of pricing in a new market and the differences of B2B and B2C pricing. The study covers market entry modes and its impact on profitability, value creation in B2B area and the key aspects of pricing behaviour while entering a new market. This study in general provides a framework for implementing the right pricing strategy while entering new markets and defining the right pricing behaviour in B2B environment. This framework enables companies to understand the dynamics of B2B environment covering buyer-supplier and distributors relations and providing pricing models for companies to be a competitive player. Tamur, O. iii PREFACE This paper discusses the concepts of pricing and pricing behaviour in a new market...
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...grown exponentially. According to the company’s intranet “Liz’s experience and education helped refine her vision of a business environment centered on the Internet revolution. Under her leadership, CanGo has grown from a small online book retailer to a leader in entertainment focused e-commerce”. Liz has done very well for herself and the company with the effort and ideas that she has used thus far. CanGo is growing so fast that she now needs help to show her how to be prepared for what could happen and what she wants to happen as a company. When there is so much growth and so much competition, Liz and CanGo need to have a plan. That is why we are here; to help the company stay successful even when they are considering expanding into a new market. During this research period, The Grads have come up with the top issues that the CanGo team needs to address so that they can ensure further successfulness. The six top issues that we are going to address here in this Week Two Analysis Report are: The lack of direction the company has; its poor management skills; absence of proper communication; the company has a lack of financial awareness; lack of Management by Objectives (MBO) as well as lack of...
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