MARKET OPPORTUNITY ANALYSIS Market Opportunity Analysis is a prime tool to determine attractiveness and probability of success in the growing market. It helps in understanding: • It is important for companies to evaluate opportunities so as to grow their business and to sustain in a competitive world where competitors Following is the Opportunity Matrix that can be used to analyze opportunity. |Success Probability | | | | |Attractiveness | | | | |High |Low | | | | | | | | High | | | | | Low | | | | | |1 |2 | | | |3 |4 | -determines opportunity that is High on Attractiveness as well as High on Success Probability. 2 -on the other hand is opportunity that is High on Attractiveness and Low on Success Probability. 3 -determine opportunity that is Low on Attractiveness and High on Success Probability. 4 -on the other hand is case where Attractiveness is Low and even probability is very Low. [Case 4 should not be termed as opportunity as it has low attractiveness and even low success probability] CASE STUDY APT TECHNOLOGIES
Apt Technologies promoted by technocrat entrepreneurs was established in the year 2003, in Coimbatore, Tamilnadu, India. The organization was registered as trader & importer of packaging machines and equipments Apt Technologies promotes world class products imported from Taiwan, Japan and Singapore in the Brand name of ” Apt Pack ” OBJECTIVE To evaluate the market opportunity analysis based on the, – If the opportunity can be articulated in order to benefit companies target market(s) – Can cost-effective channels to reach the target market be figured out Is the company internally capable of delivering what’s expected by customers – Can the company survive the competitor – What will the effect be on companies financial Return On Investment (ROI) ANALYSIS ? If the opportunity can be articulated in order to benefit companies target market(s) In our packaging industry the opportunities are associated with the below informations to meet the target market OPPORTUNITIES • Could develop new products. • Local competitors have poor products. • Profit margins will be good. End-users respond to new ideas. • Could extend to overseas. • New specialist applications. • Can surprise competitors. • Support core business economies. • Could seek better supplier deals ? Can cost-effective channels to reach the target market be figured out After having defined the target customer we figure out the best way to reach them which are • DIRECT MAIL -We show the features in the brochure, show the benefits in the letter, and get the reader to call us • YELLOW PAGES Reaches consumers at an excellent time — when they are ready to shop or need information about products they are about to purchase • TRADE SHOWS -Trade shows are an excellent way to get industry information, meet competitors, network, find resources, receive product feedback, and explore new ways of marketing face to face with both exhibitors and attendees. • TELEMARKETING – Telemarketing is an viable tool to reach the target customer. Speak with them and study their requirements and provoke them to buy the product. To our company it plays a major role as we get appointment and the sales executive meet them which ends up in a positive sales ? Is the company internally capable of delivering what’s expected by customers We have determined our capabilities on which we frequently work to meet the customers expectations • End-user sales control and direction. • Right products, quality and reliability. • Superior product performance vs competitors. • Better product life and durability. • Spare manufacturing capacity. • Some staff have experience of end-user sector. • Have customer lists. Direct delivery capability. • Product innovations ongoing. • Can serve from existing sites. • Products have required accreditations. • Management is committed and confident. ? Can the company survive the competitor Our strategy is to create identity and image that sets us apart from the competitors. We always keep in mind few important BOLD aspects for our survival as, • Be close to the customers by providing them quality products and services -serving the customers effectively and well, and of communicating to them an image, impression, or characteristics of business. Differentiate the product or service -Customizing the product or service to the customers requirement • Position your products and services -By promotional activities • Promote your business by advertising -To find our niche, which is composed of a specific group or class of buyers who need and like our products and services. ? What will the effect be on companies financial Return On Investment (ROI) ROI can also help manage an advertising campaign as effectiveness measures help identify which specific media platforms deliver the best bang for the buck.
ROI research helps to drive budget allocation among different campaigns, allocating more to those that have provided the best return in the past. These templates help the Financial planning process by Spliting and analysing the business or sales according to the main products/services (or revenue streams) according to the profit drivers or ‘levers’ (variables that you can change which affect profit. |quantity |total sales value |average value |% gross margin |total sales or gross | | | | | | |margin | |product 1 | | | | | | |product 2 | | | | | |product 3 | | | | | | |product 4 | | | | | | |totals | | | | | | Split by market sector (or segment): |quantity |total sales value |average value |% gross margin |total sales or gross | | | | | | |margin | |Sector 1 | | | | | | |Sector 2 | | | | | | |Sector 3 | | | | | | |Sector 4 | | | | | | |totals | | | | | | And split by distributor (or route to market): |quantity |total sales value |average value |% gross margin |total sales or gross | | | | | | |margin | |Distributor 1 | | | | | | |Distributor 2 | | | | | | |Distributor 3 | | | | | | |Distributor 4 | | | | | | |totals | | | | | | Thus we concentrate on each segment and calculate the cost incurred for advertisement required for each sector and arrive at revenues got out of it CONCLUSION The result of the Needs Assessment was an analysis of our potential market: The concerns of each market sector and the information needed by each customer or potential customer. The Information Audit helped to analyze what products is capable of offering and how effective it has been in marketing its services