Future Prospect and Positioning Strategy for Kids Market Consultancy - Case Study Example

Report on Kids Market Consultancy Table of Contents Introduction 3 Industry Environment Analysis 3 PESTEL Analysis 6 Competitor Analysis 9 4P’s of Marketing 9 Positioning 10 Future Opportunities 11 Conclusion 12 References 13 Introduction Kids Market Consultancy is a consultancy firm providing research based services to other organization. The consultancy has been successful over the years as it focused on developing the business in such a manner that the needs and requirements of the society were addressed. This report examines the manner in which external and internal environmental factors will have an impact on the performance of Kids Market Consultancy. Based on it an analysis is conducted to find out the effect and the future prospect and positioning strategy for Kids Market Consultancy. This will help to give a direction and ensure that the goals are achieved in the best possible manner. Industry Environment Analysis This analysis helps to highlights the different characteristics of the market research industry so that the attractiveness of the industry can be found out. This analysis is conduced through the Porter Five Force Model and is as (Neuman, 2011) Degree of Competition within the Industry Firstly, the degree of rivalry within firms in low in the Market Research Industry which focuses on kids, tweens and teens in Ukraine because of the presence of a few players. This sector is a niche sector and has very little competition as the degree of awareness both among the masses and the different players looking to work in this segment doesn’t exist. Kids Market Consultancy is one which is working in this sector (Anthony, 2003). Due to low competition and awareness the return at the present moment is high which is bound to attract new players to the niche market. At the present moment the degree of competition is low but with increasing awareness, rising bottom lines and increasing concentration on kids, tweens and teens the degree of competition is bound to increase and will increase the number of players working in the market. Potential Threat of New Entrant The Market Research Industry which focuses on kids, tweens and teens has a high degree of risk when it comes to examining the potential threat of new players. Presently, the sector which focuses to conduct market research for kids, tweens and teens is new and is at is nascent phase as it looks to develop brands for the consumer. The level of profit for this segment is high which will thereby attract others to work in the same industry (Anthony, 2003). This will further be met by the fact that new players working in the international market will also be attracted towards the same industry which will thereby increase the degree of competition. In addition to it Ukraine has about 25 percent of its population which consist of kids, teens and tweens which provide a wide market to cater to and will help to attract more and more players. Thus, the overall attractiveness of the industry clearly highlights that the degree of new players entering the industry is bound to grow in the future. Availability of Substitutes The availability of substitute depends on different factor which helps to understand whether Kids Market Consultancy face high or low risk of substitution. The fact that the Market Research Industry which focuses on kids, tweens and teens in Ukraine is new because of the presence of a few players who look to develop brands for children so the chances of substitutes are low. If brand is not considered and normal products are considered than the availability of substitutes is high but since the focus in on developing branded products and services for kids, tweens and teens the availability of substitutes at the present moment is low (Anthony, 2003). This sector is a niche sector and has very little competition as the degree of awareness both among the masses and the different players looking to work in this segment doesn’t exist. This is one of the prime reasons which has attributed to the fact that substitutes are low and organizations like Kids Market Consultancy which work in the niche market are able to charge higher prices. Bargaining Power of Suppliers The bargaining power of suppliers at the present moment will be high because there are very few suppliers presently working to carry out market research for kids, tweens and teens. The present situation makes people and the industry rely heavily of Kids Market Consultancy which thereby provides an opportunity through which the service provider is able to charge a higher price for their product and services. Further, since the focus is on developing brand for smaller children the population and people don’t have awareness about it the overall effect has been such that it has resulted in increasing the degree of competition and ensured that the suppliers have a higher bargain. Bargaining Power of Customers The present situation highlights that the bargaining power of customers is very low. This is primarily due to the fact that there are very few players working in the industry which increases the reliance on them. The customers for their services have to rely on players like Kids Market Consultancy. This thereby increases the overall pressure on the customers as they will have to rely on few service providers and pay whatever is charged to them (Anthony, 2003). This thereby reduces the bargaining power but when more and more service provider will enter in the industry the option for the customers will increase and will thereby have an impact on bringing the required change through which customers are able to gain a better bargain. A further break down of the industry analysis to gauge the market attractiveness is as Economic Factors Economic Factors Market Size Ease of Entry/Exit $100,000 Easy due to opening of economies Scope of competitive rivalry Technology/innovation Low due to lack of awareness and minimum players catering to a wide market High as continuous research is required to develop new additions Market Growth Rate Product Characteristics 2.50% Services Stage of Life Cycle Scale Economies Long High due to development of research Number of Companies in the industry Learning & Experience effect 1 Increases the business as past experiences help to design better services Number of Customers Capacity Utilization 12 billion High Degree of Vertical Integration Industry Profitability Low High The overall industry attractiveness through the Porter Five Force Model shows that the industry is attractive and will attract more and more people towards it because of the fact that profitability is high, market size is high, market penetration is low and the other factors highlights a better and sustainable venture for a long term. PESTEL Analysis This analysis will concentrate on the external environmental analysis and will help to find out the manner in which the decisions of Kids Market Consultancy will be affected by external factors and will help to develop strategies based on it. The detailed analysis is as follows (Berkman & Gilson, 2001) Political: Ukraine has a stable economy where the government policies are aimed towards improving the overall condition of the economy. This has helped to develop rules and regulation which are in favor of economic development and will help to ensure that Kids Market Consultancy is able to gain the required advantage from it which will thereby have an impact on the overall performance. Economical: The economic condition is slowly improving as the per capita GDP in 2003 was $5300. In addition to it official minimum living standard was $64 per month whereas Ukraine has average monthly wages of $86 per month highlighting the increasing. This has resulted in the number of people below the poverty line to be around 29 percent. This will provide an opportunity for Kids Market Consultancy as it will be able to promote the required brands among the desired customer base and will be able to spread awareness about the different offerings which will help to fetch the required positive results (Cable & Judge, 2006). Social: The social cultural requirements of Ukraine have undergone tremendous changes and there is an increased demand for products and services which are trendier and signify the latest generation. This has thereby given importance to brand awareness and projects an increasing demand for products and services which will help Kids Market Consultancy (Bryman and Bell, 2007). The organization through their innovation which is aimed at teens, kids and small children will be able to understand the required wants and develop the products and services accordingly which will be easily accepted by the cultural requirements. Technological: Ukraine has witnessed technological advancement and looks forward to carry out all the activities based on technological advancement. The increase knowledge and better penetration will be beneficial for Kids Market Consultancy as it will provide them the required framework through which better services and products based on the customer requirements can be delivered. Environmental: Ukraine has developed rules pertaining to keeping the environmental pollution under control and is aimed at improving the overall living condition of the society. Kids Market Consultancy has little relevance with it as the organization aims at finding out the requirements of the society and doesn’t look towards any form of environmental pollution (Bryman and Bell, 2007). Legal: The opening up of the economy has resulted in the development of different rules and regulations which helps to deal with the degree of competition that the internal environment presents and at the same time ensures that the local industry is protected. Kids Market Consultancy has to look towards matching all the legal requirements and have to obtain the required license and permission from the concerned government bodies so that effectiveness in services can be expected. Thus, the overall external environmental analysis highlights the different areas which Kids Market Consultancy has to lay stress on and have to develop their strategies based on it so that the impact which the business faces due to the different factors gets reduced. Competitor Analysis The degree of competition in low in the Market Research Industry which focuses on kids, tweens and teens in Ukraine because of the presence of a few players. This sector is a niche sector and has very little competition as the degree of awareness both among the masses and the different players looking to work in this segment doesn’t exist. Kids Market Consultancy is one which is working in this sector (Brassington and Pettitt, 2001). Due to low competition and awareness the return at the present moment is high which is bound to attract new players to the niche market. 4P’s of Marketing This aspect helps to look at determining the different aspect of marketing which will help to maximize the relevance of the product or services and will determine the manner in which the organization will benefit and is as Product: Kids Market Consultancy looks to conduct the required research which will help to find out the preference of kids, tweens and teens in Ukraine about their preference for brand. This will thereby act as a service for the other players who will be able to understand the market requirements better and will be thereby able to develop strategies which are aimed at attracting and retaining customers (Berkman & Gilson, 2001). The services which will be offered will thereby act as a decision tool for different industry and will help to improve the decisions based on it Price: Since, Kids Market Consultancy is going to conduct a research to find out the preference of kids, tweens and teens in Ukraine about their preference for brand no particular price will be fixed. Instead the pricing mechanism will be fluctuating and will depend on the type of research that the different parties want. This will thereby be influenced by the type of research and the validity of the research which will help to improve the overall focus and ensure high standards Promotion: Kids Market Consultancy will aim at promoting their organization by highlighting the manner in which the research carried out by them is valid. This will act as a major point in determining the success of the organization as it will reflect the service quality dimensions and will help to provide better strategy through which the organization will be able to promote the different services which it looks to provide to its different customers. Place: Kids Market Consultancy looks to carry out the different research in major cities of Ukraine so that basic information which will help to determine the long term success of the business can be determined. Developing the model for the local place will require better strategies which focus on understanding the local conditions and based on it looking to develop their resources in Ukraine. Positioning Kids Market Consultancy has ensured that the position their services differently as they look to provide research related services which will help to improve the overall productivity for other organization. The positioning strategy is different in comparison to the other as they look to position their services for a niche market which will focus on kids, tweens and teens. The fact that Kids Market Consultancy aims at looking towards a niche market and looks towards attracting people based on differentiated services it will thereby act as a strategy through which Kids Market Consultancy will be able to position their services differently. This will thereby ensure that the overall focus is on different aspect as the positioning strategy has been decided based on the following competitive positioning strategy (Amaratunga, Baldry, Sarshaw and Newton, 2002) Key Success Factors Technology Related Factors Using advanced technology and tools like ANOVA will help to understand the market requirements better and identify the different areas of focus Quality Related Factors Providing superior services by finding out the market related information which will strengthen the overall quality of service Brand Related Factors Have been working in the research market for some time now and thereby possess the required skills and efficiency to understand the market requirements Marketing Related Factors Look to capture the teens, kids and tweens who haven’t been directly aimed by any organization will provide the required advantage through which different focus and working on better services will ensure success. Skills Related Factors Hiring the best talent that have the required experience and skills have enabled to deliver quality service Future Opportunities Kids Market Consultancy has a great opportunity in the future as the business model which has been used by the organization will ensure the best possible use of the resources and will thereby provide the opportunity through which effectiveness is gained. Further, Kids Market Consultancy is a market research provider working on a niche market and aims to provide inputs based on research to other organizations so that the decisions taken by them improve (Bateman & Snell, 2004). The fact that the organization is looking to work on a niche market and has the required resources which can be used will multiply the opportunity to be successful and will ensure that the goals are achieved in the best manner. Conclusion The report thereby highlights the manner in which Kids Market Consultancy needs to look at different external and internal environmental factors develop their strategies so that the positioning strategy which the organization uses is distinct. This will act as a major differentiation between Kids Market Consultancy and other players and will provide the required guidance to be successful in the future. References Anthony, R. 2003. Management Control Function. 2nd Edition, Harvard Business School Press, Prentice Hall, UK Amaratunga, D., Baldry, D., Sarshaw, M. And Newton, R. 2002. Quantitative and qualitative research in the built environment: application of mixed research approach, Journal of work study, 51 (1), 17-31 Bryman, B. And Bell, E. 2007. Business research methods, 2nd ed. Oxford University Press Bateman, T. & Snell, S. 2004. Management: The New Competitive Landscape. 6th Edition, McGraw Hill, New York Berkman, H. & Gilson, C. 2001. Consumer Behavior Concepts and Strategies, Kent, Boston Brassington, J. and Pettitt, M. 2001. Principles of Marketing, 2nd Edition, Prentice Hall Cable, D. & Judge, T. 2006. Person-organization fit, job choice decisions, and organizational entry. Organizational Behavior and Human Decision Processes, 67(3), 294–311 Neuman, W. L. 2011. Social research methods: Qualitative and quantitative approaches, Allyn and Bacon, Needham Heights. Read More