To ensure improvement in business and sales, Able Group has conducted several analyses previously. The analyses are industry analysis, marketplace analysis, customer analysis and competitor analysis. This could help Able Group to have better overview of the industry and marketplace for fold-able table.
Marketplace Analysis
The goal of a marketplace analysis is to determine the
attractiveness of the market and to understand its evolving opportunities and
threats as they relate to the strengths and weaknesses of Able Group.
How do we define our
marketplace?
A market is the set of all actual and potential buyers
of a product or service. A market is the
total value or volume of products that satisfy the same customer need. It is
important not to focus only on our products that currently meet the customer
need. Thinking about customer needs first and then identifying the products
that meet those needs is the best way to define a market. For example, UM
students who live in hostel find that they do not have space to use laptop and
study at the same time due to the limited space of table. However, it is also
important not to define a market too broadly. The purpose of market definition
is to provide a meaningful framework for analysis and decision-making.
How large is it and
how fast is it growing?
When it comes to market growth, we need to think about
percentage change as a market forecast. Market forecasts start with the total numbers of possible purchasers in
each market segment, then project percentage change over the next three to five
years. The measurement of market growth is quite simple as we are dealing with
a market that we have been tracking regularly over a period of year that is UM
students in campus.
We analyzed the market and that our products have
strong market growth. It means the overall demand for the product selling has
increased. In other words, there is a larger market for the product we make and
are trying to sell. Instead, it is an increase in demand for all companies that
make that product.
Market growth is a key indicator of the health of our
company. If our company sales growth is greater than or equal to market growth,
our company is comparatively healthy. If, however, our company's growth in
sales is less than market growth, it is very likely that our firm is in
competitive trouble.
How is our
marketplace segmented?
Segmentation is designed to help us to create
marketing messages that talk straight to our specific consumers, influencing
their buying behavior. Creating these target markets can help us get the best
results on marketing and sales efforts. For example, we have segmented our
marketplace into four areas. Area A included third, fourth and seventh
colleges, area B consists of fifth, eleventh and twelve colleges, area C
included eighth and tenth colleges while area D is ninth college. The last step
is to estimate the size of market segments. Areas A and B is larger market and
followed by area C while the smallest market is area D. The size estimation is
done based on the population of students in those colleges.
What companies
currently service this market?
Currently, there are several online shopping companies
selling the same product that is “fold-able table on bed”, such as Tao Bao
Marketplace. Fortunately, Able Group monopoly the market in UM.
What trends are
important in our marketplace?
Changes in the market are important because they often
are the source of new opportunities and threats. The relevant trends are
industry-dependent, but some examples include changes in price sensitivity,
demand for variety and level of emphasis on service and support. Regional
trends may be relevant too.
We need to understand what's going on with our market.
Identify trends that will have influences on market segments. For example, we
are selling fold-able table, is there a trend that shows people responding to
higher office desk prices or more environmental concerns?
Customer Analysis
Basically, our targeted customers are the students,
who are living in Petaling Jaya, especially the ones near SS2, University
Malaya, MAHSA, and KDU College.
Students are the main targets that we are focusing on,
since the product that we are selling is fold-able table, which is not going to
occupy so much space, as well as its lightweight. We are also offering
customization services in terms of colors and designs, up to any individuals’
preference.
Competitor Analysis
Within our niche we have two significant competitors,
Fello Design, and Jelita Furniture. Fello Design is a bigger company, operating
mainly in our same niche, whose marketing is better than its product quality.
Jelita is a major furniture manufacturer, which has recently targeted our
niche. Fello Design is a furniture manufacturer which produces some office
furniture products and markets to the high level and middle-level consumer.
In general, however, our competition is not in our
niche. We compete against fold-able table on bed, cheaper fold-able related
furniture, and the mainstream merchandise in the major furniture channels. It
is not that people choose our competitors’ product instead of our product; it
is that they choose lower quality, mainstream materials instead of the higher
quality furniture we offer.
In the mainstream business, channels are critical to
volume. The manufacturers with impact in the national sales are going to win
display space in the store, and most buyers seem content to pick their product
off the store floor. Price is critical, because the channels take significant
margins. Buyers are willing to settle for laminated quality and serviceable
design.
In direct sales to corporations, price and volume is
critical. The corporate buyer wants trouble-free buying in volume, at a great
price. Reliable delivery is as important as reliable quality.
In the high-end specialty market, particularly in our
niche, features are very important. Our target customer is not making
selections only based on price. The ergonomics, design, accommodation of the
computer features within the high-quality feel of good materials, is much more
important than mere price. We are also seeing that assembly is critical to
shipping and packing, but our customer doesn't accept any assembly problems. We
need to make sure that the piece comes together almost like magic, and as it does,
it presents a greater feel of quality than if it hadn't required assembly at
all.
