Market Evaluation for Successful Business - Case Study Example

Market Evaluation Market evaluation is a very essential component of any successful business. This is because evaluation makes it possible to gauge the current market and make decisions based on what will succeed. This is with respect to improved goods and services that will meet consumer demands (Walters, 2003). Market evaluation should be undertaken from time to time. This is because in the business world things change from time to time. It is essential for businesses to realise this and make adjustments in line with the potential or actual changes experienced (Acuff, 1998). Summary Report Small businesses suffer from these changes that affect the market. Many at times, the problems are economical. This means that they are related to the amount of money that a business is making in terms of profits. In other cases, the problems are environmental. It has been observed that environmental problems are cumbersome to deal with in many cases. This is because there is no human with the ability to effectively manage environmental issues. The environmental issues change drastically and they are hard to predict or evaluate (Beckman & Davidson, 2002). Small businesses battle with the issue of emissions. In respect to the global trends, the issue of emissions is the most current environmental issue. Many small businesses operate and conduct their business with no emphasis to they type of emission that they produce. This creates a situation where many small businesses contribute significantly to the emissions of that country (Walters, 2003). It should be noted that green house gases are the most common type of emissions in small businesses. This is also a very tough call for governments as the formulate policies. This is because they do not have adequate understanding on how to deal with small businesses and the issue of environmental pollution and emissions. The small business is plagued with the issue where it contributes significantly to the issue of global warming (Hisrich, 2000). Waste management is another environmental issue that affects very many businesses. This is because in their day to day transactions, they generate waste materials. In many cases, small businesses have not put in place adequate measures to deal with the waste that they produce. Many businesses attest that the cost of putting in place waste management structures may cost more than their actual businesses (Walters, 2003). This leaves them with no choice but to find other cheaper ways of dumping their waste. In most cases, cheap does not mean environmentally friendly. In the end the random dumping of waste material results in more losses for the business (Kotler, Armstrong, Wong & Saunders, 2008). Effective waste management systems lead to the general process of recycling. If small businesses do not have effective waste management policies and structures, they use a lot of money that could have been saved by recycling. Water is one of the materials that could be recycled in any small business. It is essential for the businesses to have the mechanisms that are going to ensure that it is possible for the businesses to use and reuse water after treatment (Acuff, 1998). If they do not have the ability to do so, they spend a lot of their profits in offsetting water bills. The environment currently requires a lot of innovation when dealing with technology and all its innovations. This means that small businesses have to have the upper hand when dealing with new and upcoming technologies. Businesses have to have the ability to use wind or solar energy instead of continuously relying on electricity and any other form of petroleum products (Walters, 2003). It should be noted that the environment comes with changing and varied consumer needs and demands. The environmental trends have adverse effects on the environment and all that it is required to do. An individual might have started a cyber café because of the ever growing need for internet connectivity all over the world. Currently, the few cyber cafes that are still conducting their businesses are finding it very hard to sustain themselves. This is because it is growing more and more difficult to make profits for themselves. People have switched to the convenience of net books and mini computers. They match this with the convenience of the modem and they are set (Acuff, 1998). The emergence of phones with all these capacities is also making cyber cafes lose out on a lot of their profits. This shows that the small businesses are always pressurised to conform to all the set international standards. This is always at the expense of the profits that they have accumulated over a period of time. Successful businesses are those that have mastered the ability to master the environment and perform as it expects them to. This is with respect to the changes that are experienced from time to time in the environment. Market Research Report Chicken treat is one of the biggest chicken joints in Australia. It started out as a personal liking for good quality chicken. It was in 1974, in Perth, Australia that the first Chicken Treat barbeque store was officially opened. It had the many objective of ensuring that the citizens of the area enjoyed a scrumptious piece of barbequed chicken. It monopolised the market in this region for so long (Acuff, 1998). This is because it continued to pay great emphasise to the needs and wants of the people in the region. This allowed it to expand its ranches from the western part of the country to other areas. This positioning strategy ensured that they were identified by the products that they produced all over the country (Pride, Rundle-Thiele, Waller, Elliot, Paladino, & Ferrell, 2007). In many of its competitor analysis, their major competitor is the Big Roaster fast food chain. This chain has also provided stiff competition for Chicken Treat. They have provided stiff competition because they have also trade marked themselves with the same quality goods and services. They however came together with the sole aim of creating effective and all round brand names for themselves. This ensured that the merger brought together consumers from the two brands. The two companies also ensured that they rebranded and created a unique brand them that identified the merger (Pride, Rundle-Thiele, Waller, Elliot, Paladino, & Ferrell, 2007). The Red Rooster brand was used in many areas all over Australia where Chicken Treat and Big Rooster had already established themselves. This ensured that all previous clients knew about the merger and its effects on their favourite brands. One of the approaches that will be very crucial for this brand is aggressive advertising. Advertising will ensure that all those people that did not have a clue about the merger now know. It will also create a chance for the market to continue in its endeavours to grow and penetrate market that they had not sold their products to before. Once a company has joined or partnered with another, many of the different companies’ unique features may be absorbed. Advertising will ensure that ensure that the clients are aware of the unique features of the brand being retained. This is because it is very possible for brands to partner and yet retain their clients. The sole purpose of partnering is to ensure that they have the ability to get rid of their weaknesses and maximise on their strengths. Advertising could be done through product quality and various forms of media. They could include television, radio and the effective communication through the packaging (Pride, Rundle-Thiele, Waller, Elliot, Paladino, & Ferrell, 2007). Another approach could be based on environmental factors. As has been discussed above, environmental factors are affecting the overall success of many businesses. It is essential for these partners to come up with effective strategies that could reduce the negative effects of environmental problems. These range from emissions from the fast food chains. They should put in place measures that would ensure that they actively deal with waste from their companies’. This is through effective waste management channels. Once this has been done, it will possible for the fast food chain to make as much profit as they can. This will be by making it the best consumer choice for all the people interested in fast food (Rix, 2010). Market segmentation is essential because it allows market evaluators to know what is required of them by their consumers. Executive Report Table of Contents Executive Summary…………………………………………………………………. 8 Introduction…………………………………………………………………………. 8 Purpose of the report……………………………………………………………….. 9 Findings……………………………………………………………………………… 9 Conclusion…………………………………………………………………………… 10 Recommendations…………………………………………………………………... 10 Executive Summary The hidden valley cabin is as unique as its name. One of the key factors that make it unique is the fact that it has powered up the entire business with 100% solar power and is since the first Australian carbon neutral resort. The hidden valley cabins are located 1.5 hours northwest of Townsville. It is among one of the area’s most unique landscapes with the nearby running River Gorge which is surrounded with plethora of natural wildlife, fauna and flora. There are also a lot of major initiatives that the hidden valley cabins have been involved in. One of them is their pursuit to be 100% environmentally friendly. This has been achieved by using solar to power the entire area and ensuring carbon neutrality in all their operations. The uniqueness of the hidden valley cabins gives them a competitive edge over other businesses of the same nature. This essay will discuss various factors relating to the hidden valley cabins such as behaviours of its customers, market size, market growth, key competitors, environmental factors and major opportunities for the organization. Introduction Since 1986, Ian and Bonnie McLennan have been the owners of the hidden valley cabins. It has undergone tremendous changes over the years to become the fully serviced resort and tour company that it is today. The business has a spa, swimming pool, six cabins and four hotel rooms. Most of the guests who visit the hidden valley cabins are those that conscious about protecting the environment. People who wish to go solar and protect the environment are highly attracted to the establishment since it practices what they are passionate about. The main competitors of the hidden valley cabins are those eco resorts and establishments that aim at protecting the environment in all their endeavours. There are also some individuals who own other establishments in other places who come to see the proprietors of the hidden valley cabins so that they can get advice on how to save on the amount of money that they spend on energy (Kotler, Brown, Adam, Burton, & Armstrong, 2007). Purpose of the report The purpose of this report is to investigate and evaluate the key market factors of the hidden valley cabins. These factors include the market background, market size, market growth, key competitors, environmental factors, market segments and factors that influence consumer behaviours. The report is also meant to study the financial viability opportunities of the hidden valley cabins and to find out the current changes that need to be made on the current operations of the business so as to make it a more viable entity. Apart from finding out the changes that need to be made, the report also estimates the resources that are required to make these changes. The viability of these changes and the justification of using resources to effect the necessary changes are also discussed in the report. The report generally evaluates market data while distinguishing the characteristics of possible markets an assessing the viability of making changes to the current operations of hidden valley cabins so that market opportunities can be taken advantage of. Findings From the case study, it has been established that the hidden valley cabins has a lot of opportunities to expand its market base. This is through some of the activities that it is involved in which are aimed at protecting the environment. Some of these activities include the recycling of aluminium cans, the continuous planting of native vegetation and trees, building with local timber, building walking tracks that have low environmental impacts, educating its guests and the members of the public on the importance of protecting wildlife and minimizing wastes by ensuring that paper and food products are used in the garden (Rix, 2010). These are some of the practices that give the hidden valley cabins a competitive edge over the rest. As a result of all these, the company is now saving up to 78 tonnes of carbon dioxide emissions per year. This translates to saving $ 45,000 per year in diesel fuel. The choice of the business to go green has helped it to offset other business expenses and it can use the money it saves to market itself and attract more customers. This is one marketing strategy used by the company to attract and retain clients (Kotler, Brown, Adam, Burton, & Armstrong, 2007). Conclusion The hidden valley cabins can ensure that customers are provided with quality services by maintaining their environmentally friendly operations. There are no major changes that need to e made to the business. The owners have already established a very viable business that prides itself in protecting the environment while maintaining a high number of customers. According to the case study, no major challenges were presented. This shows that the business is very efficient and can continue to thrive if it is managed well. The business was inspired by the need to have an eco friendly resort that is concerned about giving protecting the environment and still giving customers the best experience. Recommendations It is recommendable that the business explores other alternative forms of power so that it can continue to have access to power even when the sun is inadequate to generate enough solar power. This will ensure that it remains in business during all seasons and meets the needs of its customers at all times. The business should also continue to offer advice to the people in terms of protecting the environment because it is making a good name for itself and at the same time gaining a lot of profits. References Acuff, D. (1998). What Kids Buy and Why: The Psychology of Marketing to Kids. New York: Free Press. Beckman, T. & Davidson, W. R. (2002). Marketing. Cornell: Ronald press co. 1962 Hisrich, R. (2000). Marketing. New York: Baron Educational Series. Kotler, P., Armstrong, G., Wong, V. & Saunders, J. A. (2008). Principles of marketing. New York: Pearson INC. Kotler, P., Brown, L., Adam, S., Burton, S. & Armstrong, G. (2007). Marketing.7th ed. Sydney: Pearson Education Pride, W., Rundle-Thiele, S., Waller, D., Elliot, G., Paladino, A. & Ferrell, D. (2007). Marketing (2nd Asia-Pacific ed.). Brisbane: John Wiley & Sons. Rix, P. (2010). Marketing a practical approach. 7th ed. North Ryde: McGraw Hill. Walters, S. (2003). Library Marketing that Works. New York: NealSchuman. Read More