When How Policy Makers Rely In Private Market Economics Essay

Markets are foundations that allow substitute of commodities to take place between buyers and sellers. They play a central role in allocating resources and allocate income in most up to date economy. And government plays also an important role in it.

Although government intervention can often improve on market conclusion, it does not always do so.

1st step is that government is well known as private negotiator, in relation to different factors that influence optimal economic choice.

2nd step is that civil servants and politicians must have their own point of view either financial or non financial related with job safety or other purposes in short designing polices that reduce economic in efficiencies.

3rd step, government intervention often implies significant administrative costs and inefficiencies caused by weak or distorted incentives and lack of proper monitoring.

4th step government intervention generates chances for various special interest groups which involve devastate of resources to bend policy outcomes.

Government involvement in market has many forms like in shape of:

taxes,

subsides ,

obligation of values,

rivalry rule,

guidelines

and franchise

The merit and demerit of privatization have been argued by policy maker many times from many years, and most of the time results are in favor of merits. In the provision of social services, a part that has a tradition of broad government participation, there is an association toward privatization. For example, as part of U.S. welfare reform state are giving contracts to for-profit firms to run job training and placement programs; a number of states are contracting out the management of prisons to private companies; some advocates have called for increasing privatization of elementary and secondary education through a school voucher program; and the U.S. debate over Social Security reform includes a variety of proposals to “privatize” Social Security, just as Great Britain’s public pension system has allowed individuals to manage their own funds since 1987. Rebecca M Black in her paper focuses on the social service sector tells about different aspects of government intervention in private markets.

Competition. Competition is at effort in mutually government and private markets, but the competition in markets is more civil and unbiased.

Venture development. Program receiver and bureaucratic contractor work in cooperation with chosen politicians to increase government programs. Basically if a government program is good quality and long-drawn-out program then it would be even enhanced.

Venture narrowing or removal. Business venture when failed continuously it must be changed or die while “government program elimination” is almost an eliminated. The life of any business venture is always uncertain either profit and loss.

Progress of achievement. Very fewer industries are conquered by one or two firms, but many members compete instead, success is deliberate by tiny gains in profits and market shares, and there can be numerous winners.

Product diversity. Product differentiation is persistent as big business attempt to appeal to fresh consumers. Different businesses struggle to provide to diverse market segments, resultant in wide consumer choice. Government provision of a product is liable toward one size fits all.

Resource of assessment and accountability. Accountability of market is bottom up from consumers and accountability of government is top-down” based on the diplomacy of political system.

Consumer understanding. Individuals have a tendency about their market option than about their government option or equally candidates and policy issues. The cause is that a customer gets to create decisions for him.

Pressure of the unawareness. Logically uninformed citizens are frequently decisive in politics. For example, a computer producer supplier to computer geeks and buying executives at Wal-Mart relatively than attempting to take benefit of the poorly knowledgeable. Computer buyer knows very little about GB gain from the leading role of well-informed buyers.

Time scope for selection. Management of business likely toward fair consideration of short-term and long-term impact. Yet if a business vendor anticipates selling out shortly, the owner wishes the venture have healthy long-term prospects so as to obtain a high selling price. For government it’s difficult.

Cost control. Basically government is unable to control costs while for the private sector, the profit reason means that managers are constantly in tune to keep away from pointless expenses and to controlling expenditure of manufacture.

The effects of privatization and deregulation pains in other zone of the economy have direct persons to appear for further region where such reorganization may be useful. A public discussion concerning little quality in some publicly-provided services (such as public education or welfare services) has led some to believe privately offer services as a probable option.

In reality, there is a broad variation in the level and kind of public versus private participation in different social service region. It point out the level of government rights in a small number of social service areas, and compares this with the share of revenues in these areas that come from the government. Government possession is quite widespread in U.S. elementary and secondary education, wherever 89 % of students go to publicly hold and operated schools, but is much less pervasive in the health care sector, where only 17 % of hospital beds are in visibly owned and operated hospitals, or in the child care zone.

Government can be considerably involved in these areas in ways not linked to ownership

and management, as indicated by the deviation among financial connection and ownership. The public sector is heavily concerned in the financing of health care than in the tenure of hospitals, providing 62% of all hospital revenues, much of it through publicly operated health care programs. In contrast, the public sector is less involved in the financing of higher education, providing only 38 percent of the revenues, though 78 percent of students go to publicly operated universities or colleges.

It raises the following question: the government heavily involved in some areas and not others For instance, a recent review of privatization by “Shleifer (1998) concludes there are few arguments for extensive government ownership and management, even in areas such as education where this has long been the predominant institutional arrangement”.

“In contrast, Starr (1989) argues that government ownership and management is a good thing in core social service areas, and is wary about privatization schemes.”

One of the uniqueness of the social service sector is the occurrence of different type of market failure. In fact, one way to define “social services” is to describe them by the subsequent market aspects.

Social services main purpose is to create benefit but in less cost which gave high advantages to individuals. Private markets are takes those cost and benefit advantages by providing better services to public. e.g., ineffective prisons take great effect on criminal when they free from prisons and whole society may be affected by their bad behaviors. efficient basic education may benefit the whole society by more literate and numerate future workers, raising productivity and improving citizen understanding in a democratic society.

Most of social services are complex with multi-faceted inputs and outputs. Some services may be only infrequently purchased, such as many health procedures, which limits the information consumers have about them. All of these issues limit the ability of the person to fully recognize its value.

In many social service areas the recipient of the service may have a limited capability for choice and is often not the actual decision-maker. For instance, young children are not able to make serious decisions; very ill or incapacitated persons may be in the same condition.

Divisional issues are frequently a basic cause why private market outcomes are considered insufficient in the social service area, mostly if a few people have limited incomes and are thus expelled from certain markets. At one level, this may involve a apprehension about access.

The model operates in many sectors of the economy in which there are troubles of market breakdown that can be readily corrected by government regulation. For instance, the externalities related to release of dirty water or smoke is corrected through various regulatory schemes.

It’s “coupon” model, government supply some relocation of income among probable beneficiary, but the beneficiary themselves contract for services in the private market.

In this privatized prison and privatized job training programs operate; an important factor in this approach is either government can write complete contracts with the private sector, to reassure that the preferred quality of service is supply.

In this type government composes all operating choice and government workers give the service. Conventionally, prisons, schools, and welfare services have been granted in this way.

Basically if output quality is noticeable, but there are agency and distributional problems as well as externalities, then privatization via out from contract can be feasible. In this case , the government, because it actually owns the service, can inscribe general contracts for a private manager that reassure quality principles are met, access and fairness issues are described.. An example of this may be job training programs, where both the inputs and the results are reasonably measurable. Of course, there are a number of situations meeting these criteria where the government has traditionally owned and operated services rather than contracting out. These are areas where privatization might be considered.

Health and education are two biggest items in any country we take example of US .The public sector straight give the bulk of educational services, during the public school bureaucracy, while the majority public maintain for health care is guide from a scheme of tax-supported government expenses for services give by private provider. The distinction among public policies in these markets enhances a host of questions about the scope of government in a diverse economy, and the structure of policies for market intervention. It then considers the "choice of tool dilemma, the choice between intervention via charge subsidies, directive, and straight public provision of services in markets.

The inability of government to provide higher quality or more equitable services may be due to poor public management. But it may also be due to corrosion in the things that have conventionally acceptable government to keep higher quality services. For example, if the general level of trust in government grind down, and less people consider that “public service” has a constructive meaning, then government may not be able to extract a more thoughtful reaction amongst its employees than the private sector. Instead, if the market control that government had in the labor market grind down, as biased barriers in the private sector turn down, then the government may be fewer able to hire high quality workers at lower wages. Questionably, both of these things have occurred in recent years, perhaps providing one reason for the high interest in superior private provision of social services.

Finally, the part of competition in the provision of social services economists frequently take it as clear that competition will improve the market, and certainly there is extensive proof that greater competition in markets does reduce inefficiencies. There is, however, small proof on the position of competition in the provision of social services. In evaluation the proof for school vouchers, Levin (1998) comments that the proof in favor of competition is relatively weak. The key issue is whether competition, in spite of its optimistic belongings on competence, may have negative effects on quality.

The query of whether specific markets be unsuccessful, and whether rearrangement could in standard be approved out, receive far more discussion among economists than the questions of whether markets actually fail, whether government Intervention in these markets get better or worsen matters, and whether diverse. Yet the alternative between varieties of policies for government involvement depends on the real act of such Policies. This final section outlines numerous areas where further research will give in high returns in informing the debate on choice of public policies in the ground of Education and health care.

Only some people oppose that some government participation in the provision of social services is essential. But there are a broad variety of opinions regarding the favored nature of public participation. The narrower analysis is that a few form of regulation, together with earnings supplementation, is typically as far as the government must exit. The broader idea fall out for much larger government manage, ownership and management in some region.

The following dimensions are as follows:

The level of apprehension by agency problems and the level of faith in government’s skill to be wisely. The more powerfully one think that neither receiver nor their families can make well-organized decisions, and the more impressively one believes in the capacity of the government to improve individual or social conclusion by intervening in individual option, the more probable one is to retain more wide public involvement in the social services.

The levels of apprehension over the difficulty in gather and allocate information on quality of services. The more that one considers measurable principles of quality are capable to be observed in the social service field, the powerful the argument for government rule of the private sector moderately than government management. The one believes that non-governmental agencies can give likely suggestion of quality in a definite market, as of their long-term position concern, or because of the nature of the market, the less duty for government ownership or management.

The extent that equity and universalism are emphasized. The extremely one standards universal values for a service, or that one desires all persons to receive equal services, as powerful the argument for public ownership and management. The more that stratification, arrangement, and discrepancy taste-based choices are favored, the stronger the argument for private ownership and management.

The factor of trust in the public sector. one suppose the public sector to be effective, with good public management and without problems of deceit; the likely to believe that the government can give higher quality social services without losing too much in effectiveness likewise, as one believes in the inspiring factor of public service and the capability of government to acquire strong assertion from their workers, the superior quality services one is expected from the public sector.

The majority of the economists and policymaker can genuinely disagree about how they assess these issues. According to them there remain a number of parts where the direct government provision of social services is not in fact as good as than, and beside at least some level may be better than more privatized provision. The distinguishing nature of the social service region, with numerous forms goes beyond market failure, gives an opportunity for well-organized government participation that may not be justified in numerous other division of the economy.

Blank, R., 2000, When can public policy makers rely on private markets? The effective provision of social services, Economic Journal, 110, pp. C34-C49.

Helm, D., 1986, The assessment: the economic borders of the state, Oxford Review of Economic Policy, 2(2), pp. i-xxiv.

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Market Analysis Of The Uk Retail Sector Marketing Essay

The retail sector comprises almost 8 per cent of the Gross Domestic Product (GDP) of the UK.In 2007, the retail sales were approximately ?265 billion in UK, which is larger than the combined economies of Denmark and Portugal. Over 3 million people were employed by the retail industry. It equates to 11 per cent of the total UK workforce. A verdict research center predicted that the UK retail market in size will rise by 15 per cent over the next five year, taking its value to just over ?312 billion.

It had achieved an about ?110.4 billion of grocery sales by nearly 100,000 grocery stores in the UK in 2007.UK grocery retail sector is divided 4 parts: food and drink, tobacco, non-food grocery and non-grocery. In particular, food and drink part hold the key post in the grocery retail sector. It accounts for 65 per cent of the total. It is very important to take fresh food for keeping our body in good condition. Therefore, consumers always try to buy the best items in the grocery stores and they are very sensitive and changeable. In addition, the grocery retail market is extremely competitive and unpredictable. Moreover, a wide variety of products gradually have increased over the years as customers’ demand. While even common products could be bought in a seller’s market. However, the retailer ought to be careful to display their commodities inventively on the shelves in order to catch the attention of customers. This fact has increasingly compelled retailers to think about how they structure, control and amend supply chains to ensure they are effective and efficient (Sparks, 2006).

The purpose of this research is to identify the reason why it happen the product shortage of fresh food sector in a supply chain perspective at the two major supermarkets, Tesco and Sainsbury’s, in the UK. The paper examines the supply chain availability of Tesco and Sainsbury’s through reviews of academic journals, books, institute reports and web pages. Finally, two supermarkets in this respect will be compared their availability in supply chain management through case studies.

The paper is structured so that the next section on the products shortage in a supply chain perspective is followed by a section discussing a supply chain strategy and policy of two major retailers, namely the supply chain availability. The final section of the main part is trying to find the competitive advantage and disadvantage by studying a pair of case studies. The concluding section considers different perspectives such as cost, consumer service and efficiency in a supply chain management.

?. Products shortage in a supply chain perspective

An effective management of inventory flows is one of the most important dimensions in supply chains for success the business. The balance of supply and demand is one of the goals in managing inventory. A company always tries to keep enough inventories to satisfy its customer demand. However, if a company holds too much inventory, it would be happened in inventory carrying cost. In other words, it is a key factor to hold enough but not too much.

The market trend already has changed seller’s market to buyer’s market. "In a seller’s market, whatever had been stocked was eventually sold. However, in the dawn of a buyer’s market, only the right inventory would produce growing sales. Moreover, only when demand was accurately read and forecasted could ‘right’ inventory be stocked at all." (Lal & Han, 2005)

To manage the flow of inventory effectively, several fragmentations in supply chain management such as information system, demand forecasting, procurement, production planning, warehousing, logistics and customer services should be considered. The section focuses on the concepts and the characteristics of the key factors for successful inventory management above mentioned. The study will find the correlation between the reasons of products shortage and these key factors.

Coyle et al. (2003) defined the concept of procurement as:

Depending on the circumstances, procurement can defied in a narrow sense and in a broader perspective.

In a narrow sense, procurement can be defined as the act of buying goods and services for a firm.

In a broader perspective, it can be described as the process of obtaining goods and services for the firm.

Porter (1985) confirmed the importance of strategic procurement in his value chain, since it includes such activities as qualifying new suppliers, procuring different types of inputs, and monitoring supplier performance (Coyle & Bardi & Langley, 2003). Well-organized procurement provides an effective performance in supply chain context. The quality of raw material by procurement affects final product quality, profits and customer satisfaction. In addition, an under-estimated quantity of raw materials leads to the shortage of stocks in the store. Procurement and inventory management belong to materials management and if there are problems of the planning and control of procurement, the store could run out of supplies and have nothing to sell.

According to Blackwell and Blackwell (1999), demand management may be thought of as “focused efforts to estimate and manage customer’ demand, with the intention of using this information to shape operating decisions.” To understand the relationship between customer demand and inventory correctly, it is essential to review a viewpoint of how supply-demand misalignment impacts whole effectiveness of supply chain. Figure 2-1 provides overall supply-demand misalignment.

Figure 2-1 Supply-Demand Misalignment

2 Real

Shortage

4 Returns/

Cancellation

6

Unit per period

Launch

date

End of

life

Production

Channel

orders

1 True end-customer

demand

3 Channel fill and

Phantom demand

Over-supply

Source: Accenture, Stanford University, and Northwestern University, Customer-Driven Demand Networks: Unlocking Hidden Value in the Personal Computer Supply Chain(Accenture, 1997), 15.

1. True end-customer demand.

2. Production cannot meet initial projected demand, resulting in real shortages.

3. Channel partners over-order in an attempt to meet demand and stock their shelves.

4. As supply catches up with demand, orders are canceled or returned.

5. Financial and production planning are not aligned with real demand; therefore, production continues.

6. As demanded declines, all parties attempt to drain inventory to prevent write-down.

Examining more closely at Figure 2-1, the first stage is a new product launch, true end-customer demand is peak and profit margins are highest at the moment. Unfortunately, PC companies cannot supply sufficient product quantities against demand and retailer and distributors often order than need be. In the next phase, as production increase gradually, producers ship product to meet increased demand and they take priority of price. As stock is filled with over-ordered products at their shelves, price competition begins to be installed, orders are cancelled or returned in the end. In the last stage, as end-user demand begins to decline, all related parties attempt to get rid of their inventory to prevent write-down. “This is largely due to the industry’s planning processes and systems, which are primarily designed to use previous demand as a gauge. Since much of the previous period’s demand was represented by the phantom demand, forecasts are distorted.” (Coyle & Bardi & Langley, 2003)

Information system has become extremely important factor for success in supply chain management. The information in supply chain is mainly comprised of sales data or demand, it is a useful criterion of replenishment and the basis of forecasting. A significant degree of supply chain information exchange or share on a real-time basis leads to less uncertainty and, therefore, less safety stock. Efficient IT can reduce transaction costs and risk to enable firms to engage in more collaborative activities (Sodhi & Son, 2009). High quality and well-organized information about demand can remove inventory. If point-of-sale (POS)  data were available from the retail level on a real-time basis, it would help eliminate the bullwhip effect associated with supply chain inventories and would significantly reduce cost.

Retail practice at Seven-Eleven Japan’s case studies performed by Stanford University and Harvard University is very helpful to understand the availability of information system in supply chain management.

“In response to the customer demographic, SEJ’s  retail strategy emphasized freshness. The information system was designed to support freshness - meaning not only the quality of perishable products, but also the provision of a fresh set of merchandise to keep up with the changing preference of customers. SEJ’s freshness focus was extended to incorporate the timely accommodation of the changing needs and tastes of customers. To make sure customers did not tire of the same offering, old items were constantly retired, giving shelf space to new items. Of 3,000 SKUs  carried by each store, about half of them were replaced every year. SEJ tended to retire items as soon as they noticed a decline in sales, which was generally earlier than other stores. SEJ’s freshness strategy was supported by the company’s information systems.” (Stanford University, 2006)

Logistics has been called by several ways, including the following:

Business logistics

Distribution

Logistical management

Physical distribution

Supply Chain Management

Materials management

What these terms have in common is that they deal with the management of the flow of goods or materials from point of origin to point of consumption, and in some cases even to the point of disposal (Grant et al., 2006). The Council of Supply Chain Management Professionals (CSCMP), one of the leading professional organizations for logistics personnel, defines logistics management as:

“the part of Supply Chain Management that plans, implements, and controls the efficient, effective forward and reverse flow and storage of goods, services and related information between the point of origin and the point of consumption in order to meet customers’ requirements.”

Three key activities of logistics in supply chain management are transportation, inventory maintenance and order processing. These activities are important to implement the efficient logistics management, since they most directly affect the total cost of logistics or they are critical to the effective completion and performance of the logistics mission. Commonly, it is impossible or impractical to produce products on the moment or distribute to retailers (customers) instantly. In order to achieve a reasonable degree of product availability, inventories need to be maintained as buffers between supply and demand. Whereas transportation adds “place” value to a product, inventories add “time” value (Ballou, 1987). If unexpected problems happen in process of transportation, it could cause more or less inventory in warehouse and even store.

?. Supply Chain Availability (Cost, Efficiency, Customer Service)

It has long been recognized by some that the key to major cost reduction lies not so much in the internal activities of the firm but in the wider supply chain (Christopher & Gattorna, 2008).

Reducing cost or efficiency is an important objective of supply chain management. The aim of the enterprise management should be reduce the total cost of logistics activities, often called the landed cost at the end of the pipeline, rather than focusing on each activity in separation. Lowering cost in one area, like transportation, can raise inventory carrying cost according to more inventory is needed to cover longer transit time, or to balance against greater uncertainty in transit time.

There are six major cost categories which cover the key logistics activities in Figure 3-1. It indicates how the logistics activities affect the six major logistics cost categories.

Figure 3-1 how logistics activities drive total logistics costs

? Customer service

? Parts and service support

? Return goods handling

? Traffic and transportation

? Inventory management

? Packaging

? Reverse logistics

? Warehousing and storage

? Plant and warehouse site selection

? Material handling

? Procurement

? Order processing

? Logistics communication

? Demand forecasting/planning

Source: adapted from Douglas M. Lambert, The Development of an Inventory Costing Methodology: A Study of the Cost Associated with Holding Inventory. Chicago: National Council of Physical Distribution Management, 1976, p. 7.

Japan was a seller’s market until the 1970s, but as profits stagnated and declined in the late 1980s, a buyer’s market began, necessitating reform in the retail industry. The reason for this shift was that ownership of objects was very high among Japanese consumers.

- Toshifumi Suzuki, Chairman and CEO of Seven & I Holdings Co.

“Beyond newness, building and sustaining store loyalty is a factor important to retailers in a buyer’s market. If customers consistently have positive experiences at a store – as measured by image, trustworthiness, reliability, friendliness and fulfillment of a saying shopping experience – they are more likely to purchase the same product at one store, rather than another.” (HBR, 2005) Managing customer service and demand forecasting is a key factor for both efficiency and effectiveness in a buyer’s market.

Table 3-1 characteristics of a seller’s market versus a buyer’s market

Product functionality

Buyer preference

(Moderated by marketing)

Product is made, at manufacturer level, upstream in product flow

Buyer selects product from

Pool, at retailer level

Distribution and retail costs are minimized

Demand is satisfied

Cost center

Profit center

Source: Created by casewriter based on: Tomoyuki Ogata (Ed. Daniel Costello). Grasping Customer Demand with Tanpin Kanri. Tokyo: Office 2020 Publishing, 2002. 15.

While customer service has no single widely used definition, customer service is often viewed in three principal ways. These are customer service as an activity, customer service as performance measures, customer service as a philosophy (Lalonde, 1985). However, the definition of customer service that is used in this paper is as follows:

“Customer service is a process for providing competitive advantage and adding benefit to the supply chain in order to maximize the total value to the ultimate customer.” (Coyle & Bardi & Langley, 2003)

We have to consider that information is a key factor to improve customer service. In other words, there is a synergy between information and customer service. High quality and on time information affects positive influence and also reduce cost. Finally, reducing cost brings them satisfaction and happiness.

In case of customer service, there are three identified levels in a supply chain and logistics perspective. The lowest level is reliable, on time and right quantity delivery. In order to maintain customers, this minimum lever is basic in these days. Moreover, to create large customer, it is essential to meet the customers’ unique needs and special demand. The next level may involve, for instance, advanced shipment notices, tail-made pallet packing, scheduled deliveries and so on. In order to continue and increase market share, the highest and maximum level of customer service is needed, that is, adding value for regular customer. Examples of previously mentioned concept may entail supply chain visibility of inventory, VMI (vendor-managed inventory), forecasting and so on.

?. Case studies (Tesco and Sainsbury’s)

In 2008, there were roughly 49,530  convenience stores in the UK, this figure stands for decrease of 2.4% every year. Whilst the number of co-operative convenience store remain unchanged, the number of multiple convenience store and symbol groups stores have increased (See figure 4-1). The UK grocery market was worth ?134.8 billion in the 12 months to May 2008, representing an increase of 4.1% over the previous year.  In view of market structure, top brand list and market share in the UK are core indication to recognize supermarkets’ position.

Figure 4-1 the Consolidation of the UK Grocery Market, by Value Market Share

Source: Economic Note on UK Grocery Retailing 2006. 2010 is IGD estimate. The ‘multiples’ category appears to include symbol-group convenience stores.

Table 4-1 shows the top 10 most valuable retail brands in the UK in 2008. In 2008, Tesco had been named the most valuable brand in UK retailers, the value was ?8.6 billion, whilst Sainsbury’s value was ?4.9 billion, beat other “big four” supermarkets ASDA and Morrisons into fourth and fifth places, respectively.

Table 4-1 the top 10 most valuable retail brands in the UK

1

Tesco

8.6

2

Sainsbury’s

4.9

3

Marks & Spencer

3.9

4

ASDA

3.6

5

Morrisons

2.6

6

Boots

1.9

7

Argos

1.4

8

Co-operative

1.4

9

Waitrose

1.2

10

John Lewis

1.1

Source: http://news.sky.com/skynews/Home/Business/

Figure 4-2 market shares within the non-convenience grocery market

Source: TNS Worldpanel, march 2006.

Tesco was top position in 2006, market share was about 30.6 percent of the non-convenience UK grocery market (See figure 4-2). During the 1990s, Tesco and Sainsbury's enjoyed similar market shares ( of 20 to 25 percent). However, Sainsbury’s has since lost ground.

“Most of the multiples’ growth has been organic, with the exception of Morrison’s acquisition of Safeway in 2003. ASDA was acquired in 1999 by Wal-Mart, the world’s largest retailer. The other market leaders are all UK companies.” (defra, 2006)

Based on above mentioned statistical factors, Tesco, 1st place in UK, and Sainsbury’s, 2nd position, are selected to study their supply chain performance. The key factor in supply chain perspective will be performed through some case studies, and then their supply chain availability might be analyzed by different perspectives such as cost, customer service and efficiency.

One of the powerful grocery retailers all over the world, Tesco, now has expanded from Eastern Europe to Asia. The supply chain management is one of key factors as succeeding off-line and on-line business. Tesco stores tend to be better stocked that those of its competitors, while costs are still kept down (Datamonitor, 2005).

First case study is a specific product, for example, strawberry. It is very difficult to meet demand during the peak season or some special event such as the Wimbledon Tennis Championships. To solve the problem, the head office of Tesco approached the concept of collaborating with the other partners in supply channel. First of all, the company made a small team and tried to find several problems. They found a technical problem which is relative to the preparation of package material, called mould. The suppliers had to order the mould several days in advance to be provided in time and if package suppliers don’t have enough time or enough materials at the agreed moment, they would inform their situation and discuss about some alternative sources. Moreover, the head office had changed last order amendments time at 17:00 as requested by other channel partners. All action points consisted of agreed and implemented.  

The second case study is about logistics, especially, sustainable distribution through integrated transport. The department of transport had a plan to make a policy of sustainable distribution for freight in 1998. The new programme should base on the energy saving at the corporate level. For instance, vehicles which are Tesco owned and 3PL companies picked its pallets on the way of inbound movement after deliver to their retail stores. This practical policy was very useful to reduce vehicle miles. As results, it gave positive effects in the environmental policy of the company.  

The Third one is connected with information technology. Tesco had developed the Oracle Retail Planning to cut more maintenance costs and risk in spite of a traditional IT solution. The new Oracle system had provided various functions. IT department could change options very easily, it had fine turning function to meet special needs. It is possible to predict by using the programme in the system. The company also used it to recognize seasonal demand. Therefore, they could provide customers’ demand with generally accuracy.  

Sainsbury’s has been a leader in retail innovation since 1869 (Hall, 2006). In order to overcome a severe market and provide good quality products to their customers, Sainsbury’s made a “Partnership in produce” agreement with ENFRU Ltd  in 1995. The agreement was included under seven key provisions. “Not only can the immediate needs of the marketplace be met, often when seasonal factors require an imaginative response to specific availabilities, but also, new directions and opportunities can be mapped out for the future.” (Hughes & Merton, 1996)

The next case is related to the change of transportation system in connection with between Sainsbury’s and Nestle. Their transportation route was very complex because of via various points and multimodal transports. They solved the problem through 3rd party logistics and Driver shift. Two companies saved total 64,200 km per year.  

The last case is Sainsbury’s RFID trial. They had set up the vision to enrich information and cope with their major problems. In the first trial, they chose chilled goods and tracked it. The trial was mainly concentrated in one ready-meal supplier, a single depot and a retail store. “The most notable benefit for the supplier is the potential to reduce the out-of-stock rate of suppliers’ products. The reduction of the rate of stock-outs often benefits suppliers more than the retailer, as the consumer almost invariably picks a substituting product.” (Kärkkäinen, 2003)

?. Conclusion

Factors such as population trend, life style (eating out), relationship with customers are driven for grocery retailers to very severe situation. In consequence, supermarkets always try to establish competitive strategies. They should check competitors’ price every day, do their best for customers’ satisfaction, develop new premium goods to preoccupy niche market and new formation of store (e.g. convenience store). According to IGD research, low prices are still a key motivation for customers’ royalty. It is very important to perform their supply chain management because it is not easy to accomplish their goal without the harmonized collaboration.

In price policy, Tesco and Sainsbury’s have pushed different slogan. Tesco is “Helping you spend less every day”. They provide price information that is based on their competitors’ price which is on competitors’ homepages. Sainsbury’s is “Great food at fair prices”. In order to supply high-quality products at reasonable price, they carry out “Great offer” instead of indiscriminate low price policy.

The basic of customer satisfaction is to conduct an effective inventory management, that is, right, enough goods on the shelves and at the right time. Tesco maximize customer satisfaction by running Oracle retail system. Marcel Borlin, the manager of Tesco customer service, said “If we can improve product availability by just 1%, then we will have a great many more satisfied customers.” Meanwhile, Sainsbury’s have centralized their business ability to the rationalization of logistics.

Can you differentiate between the two? In my opinion, the main point is just supply chain availability. It’s not marketing or brand positioning. “Tesco’ supply chain works, Sainsbury’s doesn’t, and the smaller firm appears unable to fix its long-running logistics problem.” (Datamonitor, 2005) Finally, grocery retailers in the UK try to establish the programmme for satisfying customer needs which is to understand well how certain changes affect demand on each product basis. POS  system will be an effective solution to build for managing inventory programme. Furthermore, they have to execute logistics system on demand. Joint delivery programme from supply distribution center, delivery operations management, diversified mode of transportation are good examples.

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Analysis of Compound Crusher Market Strategy

Mining machinery industry is an important pillar industry of the national economy, and as the construction of mining equipment and materials processing equipment in transportation, infrastructure, real estate and industrial raw materials and other industries industry it provides a large number of basic industrial raw materials and products for the rapid development of social economy. So mining machinery industry is not only an important foundation for establishing an independent industrial system, but also is an important symbol of social comprehensive industrial development power.
Compound crusher equipment is one of mining machinery industry and also occupies a very important position in the market. Dozens of different equipments such as Combination crusher , Jaw crusher , spring cone crusher , Impact crusher , compound cone crusher and so on are indispensable in deep processing of raw material of scoal, electricity, building materials and other fields, and also provide based technology equipment support for the railway and highway construction, water conservancy construction, municipal engineering contruction ,etc.
There appears the mineral market weakness and mineral prices sharply felling after the state steps up to the market at the national regulation of mineral resources.Because ad valorem tax will improve the industrial chain of resources exploitation and production cost, thus to curb demand and encourage energy conservation, at the same time, it helps to improve the efficiency of resource exploitation and utilization. From this point of view, implementation of the reform of resource tax will have a great impact on mining machinery, crusher equipment and other patterns.
From this, in order to get better development compound crusher enterprises grasp new market direction accurately, continue to extend "integrated" industrial chain, expand "diversification" marketing strategies deeply, improve quality of products and technical services and increase

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Market Opportunity In The Book Industry Marketing Essay

Ali and Son Bookshop is a new business enterprise which will start operating on December 1, 2010. It is a book and magazine and sationery store serving the needs of the population in the Bentong area and the surrounding housing estates. The objective of this book store is to provide the community with ample choices of books, magazines and stationery, besides promoting and to promote the reading habit of the residents of Bentong especially the younger generation. Presently Bentong does not have a retail outlet dedicated to books and magazines and stationery. Ali and Son Bookshop has a mission to fill this void.

Ali and Son Bookshop bookshop is owned by Ali and son. Ali has many years of experience in the book selling industry in Kuala Lumpur. He had served as a manager with Kinokuniya Book Store and Popular Book Store for thirty years and his son an accountant by profession, having worked in the retail trade in Kula Lumpur for five years.

The company has an ambition to attain and maintain a position as be a major source of books and magazines in the Bentong area. The companys’ target for the first year of business is to achieve a 20% of the local retail market for books and magazines, hoping it will increase to 30% by the third year of operations. A term loan of RM 200, 000 is required to ensure the store has enough inventory when the shop opens for business on December 1, 2010. To guarantee positive cash flows in the first year, operating loans amounting to RM 10, 000 are needed. Few book and magazine distributors have agreed to negotiations and distribution contracts have been drafted. One of them is MPH Distributor, the largest book and magazines distributor in Kuala Lumpur. The distribution contract is in the final stage of drafting after which it will be used for financing.

There are ample marketing opportunities in the book industry, in Bentong where industry studies and analyst projections show that the growth in the market for books is progressing for the next five years. Surveys in this book and business sector for the last eight years showed significant growth. The main client basic are residents with a secondary school education and an increasing population of school going children. An entertainment magazine controls a larger portion of the business. Research indicates that for the next five years this industry will have a 20% to 30% growth, especially in the sales of revision books for important examinations. With the emphasis being focused on obtaining excellent results, parents and students will not mind spending large amount of money buying these books. This in turn contribute to the major growth in the book industry. For magazines, an expected 2% to 3% growth is anticipated and stable. Statistics and data sources project a figure for the market to be RM 500, 000, the accumulative size will most probably studies show that 75% of all magazines buyers are between the age of 15 to 60 and that 60% of retail magazines purchases are female and the males portion is 40%. In Bentong, the majors market segment is the small business enterprise rubber – tapping and farming community.

As there is no other retail outlet in the Bentong district that deals with books, magazines and stationery for a radius of 200 kilometres in any direction, it is in an appropriate location to capture a large portion of the book, magazine and stationery sales. Since there are no other bookshops in this area, hence, there is no competition in this market. Therefore, by focusing on this aspect of the industry, Ali and Son Bookshop can achieve and then maintain a competitive position as the only merchant of books, magazines and stationery in Bentong.

Advertisements through leaflets and flyers distributions will be the key marketing strategy. In addition, introduction of the bookshop will also be included in schools annual magazines. The target audience is, simply put, book lovers. As emphasis is being focused on examinations so revision books will be one of the main items besides stocking books on popular fashions, sports, news and celebrity magazines. Since the larger segment of industries are small business enterprise, rubber – tapping and farming, we will all aim people involved in those industries. Children, parents and students are also potential targets and so are retirees.

The financial projections is anticipated to increase from RM 170, 000 in 2010 to RM 300, 00in 2012. We expect strong growth in revenues of 35% in 2011 and 32% in 2012 results from an expected increase of sales. Direct cost of sales average 61% of gross sales which includes 50% for purchase of books and 11% for purchase of magazines inventory. Projection of net income from 2010 to 2012 will be quite encouraging.

The facts and figures enclosed in this business plan is deemed confidential. Disclosure of information pertaining to it needs the expressed written permission of Ali or his son.

Potential investors are reminded that this business plan is a representation of the management’s best estimation of the imminent potentiality of this venture. The inherent risks should be seriously considered as not all major setbacks can be accurately predicted and non guarantee that few business plans are devoid of errors of omission or commission.

Ali and Son Bookshop is a new retail business enterprise which is due to start business on December 1 2010. The venture is a books, magazine and stationery store with an aim to serve the population of Bentong which does not have a books, magazine and stationery retail outlet. Ali and Son Bookshop aims to fill this void.

Ali and Son Bookshop has vision to become a premier supplier of books, magazines and stationery for Bentong and the surrounding communities. Promoting reading in the community, instilling an awareness of books as a source of knowledge and providing readers with a wide variety of choices is the ultimate goal of Ali and Son Bookshop.

Our primary objectives over the next year are:

Complete start up activities, acquisition of an inventory and opening the business to our customers.

Obtain contracts with main magazine and books distributors in Kuala Lumpur.

Seek approval for a term loan of RM200, 000 in order too acquire inventory for the shop and an operating loan of RM 10, 000 to ensure a positive monthly cash balance.

RM 10, 000 to ensure a positive monthly case balance.

Garnering a market share of 20% of all the books and magazines sold in Bentong by the end of the first year’s business.

Achieve and maintain a position as the main retailer of books and magazines in Bentong.

Ali and Son Bookshop is the proprietorship of Ali and his son. Both partners are handling the operation and management of the company.

Ali and Son Bookshop is located at 3, Main Road, Bentong and occupying an area of 2,500 square feet with a rental of RM 1, 500 per month. The store has in its possession a computer with the Word Perfect suite and a specialized inventory tracking program for small scale retail operations such as Ali and Son Bookshop. The building includes 300 square feet of office space besides having a 600 square feet of storage space. Furniture comprising of shelves, magazines racks and display units have been ordered and expected to be sent to the shop by December 1, 2010. Since Bentong is a small, rural town, the rental is cheap.

In Ali and Son Bookshop, a variety of books and magazines which appeal to the residents of Bentong are in its possession. The store also offers national bestsellers in both fiction and non fiction, books on outdoor activities, motivation, religions and revision books. Children’s books and related publications are not spared as well and a shelf has been assigned for it. The company will also add other types of books, depending on customer demand.

Different types of magazine related to entertainment, fashion, sports and investment will be made available.

Ali and Son Bookshop is considered unique, being a “one-stop shop” where there is a product mix. The goods for sale will reflect the reading preferences of the community of Bentong.

Orders are made directly from the publisher or an approved representative on all the book and magazine titles and no production on site.

It is the goal of Ali and Son Bookshop to continue to expand and diversify our products according to the wishes of customers. Further expansion will encompass an inventory of books on audiotape and CD-Rom as business progress. In addition, a special order service for any book or magazines will be introduced.

Mr Ali has contacts with renowned contributors, thus ensuring any special or limited edition books can be ordered directly from the publisher.

Information pertaining to the market potential of a book and magazine store in Bentong was gathered from a few sources, namely the statistics survey of Book Publishers and Agents. Market surveys were carried out to gauge the trends and preference of the community in Bentong by talking to them and asking them what types of books and magazines appeal to them. Sales data were compiled too. Information was also gathered on the future trends in the book and magazine industry. Form the facts, information and data collected, we were able to prepare client’s profile and deduce what kind of books and magazines were popular.

Datas gathered indicate that the size of the books and magazine industry is quite substantial. With the governments campaign to read, the future of the book industry is definitely very positive and promising. In Pahang, in which Bentong is located, statistics show that the expenditure on books by the population reaches RM 500, 000 annually.

There are three compartments in book sales, namely, Pleasure ( novels, mystery, romance, humour, action, general, non – fiction ), Educational ( textbooks and revision booksfrom primary to secondary schools ) Professional and Reference ( subject specific, subscription reference ). The pleasure segment consists of hard cover and paperback sales. Retail magazine sales can be categorised into sport/leisure, fashion, computer and electronics, business/financial, children and teen, men’s adult and automobile magazines.

The main customers in Bentong are residents with an inclination to reading and school children. Women whose age ranging from 17 to 55 are the most important market segment. Demographic profiles indicate that women make the most retail books purchases. Studies of the book industry show that most of the customers buying magazines are between the ages of 17 and 55. Surveys also indicates that female purchasers exceeded male customers.

Studies show that most of the purchasers are impulse buyers, meaning, they do not specifically intend to buy a specific book when they entered the store. Customers buy when they perceive the price as being reasonable, the books has visual appeal, relevance of subject matter and the customer’s reading capability the purchase is carried out in a straight forward way when the book is bought off the shelf and takes it away.

From the shop’s view, books and magazines in demands by our patrons will be ordered for the store. In a rural area, the distribution of books and magazines will be handled by one or two major distributors.

In Malaysia, large national chain bookstores such as Popular Book Store, MPH Book Store, Reader Book Store and University Book Store dominate the sale of books. Other major booksellers are colleges, universities, specialty book stores and super markets. In Bentong, schools and convenience outlets are the only stores that sell books, whereas magazines are sold in various outlets which include petrol stations, newsstands, supermarkets and provision shop

Due to the awareness created by the Malaysian government on the importance of reading, the onset of technology and a knowledge based society, more Malaysians are reading now. Therefore, it can be deduced that the book industry will improve tremendously as a result of the country becoming more affluent and developed. The Malaysian government aims to make this country as an education centre in this part of Asia, hence the sprouting of institutions of high learning attracting foreign students to study here. This will indirectly affect the book industry to move it into the positive zone when the purchase of books, magazines and stationery will increase. This will definitely have a spill over effect on the book, magazines and stationery business to Bentong.

We are targeting the market in Bentong and the surrounding areas especially

students, office workers, children, parents and retirees. Ali and Son Bookshop will

focus its efforts on the customers of “Pleasure” category books. Another sector will

be the educational category where revision books are a popular buy. The professional

category is not so popular, the demand is insufficient to stock these types of titles.

The makeup of the community and their preferences reflect the magazine titles.

Popular fashion, celebrity oriented magazines, sports and economical activities will

be our main magazine titles in our stock. Ali and Son Books will not stock books and

magazines that are prohibited by the ministry, for example ; pornography and other

reading materials that are considered degrading.

Presently, there are no other bookstores in Bentong to compete with Ali and Son

Bookstore. Although newsstands and convenience stores do pose a small competition

but they do not cause much harm to our business. These outlets gave very small space

to store books and magazines and they do not have more than 20 different magazines

titles.

Ali and Son Bookshop has an edge in capturing the majority of book, magazine and

stationery sales in Bentong as there are no other outlets dedicated to this industry in

the immediate surroundings. Because of the remoteness of Bentong, we believe Ali

and Son Bookshop is poised to fill the void. Ali and Son Bookshop is focused on

catering to the needs of the communities of Bentong and we can achieve the status as

the leading vendor of books and magazines.

Books and magazines will be sold with the price as indicated on the covers except

where there are sales events and clearance of stock. For special orders, a postage fee

and handling cost will be imposed to the cover price.

Ali and Son Bookshop plans to have a grand opening with much publicity by putting

up posters, distribution of leaflets and flyers and through announcements made from a

moving vehicle through loudspeakers. This vehicle will make as many trips as

possible in the surrounding areas, to bring to the knowledge of the inhabitants of

Bentong about the opening of our bookshops.

To overcome the risk of increased store’s product costs should the distributor increase

its prices, a contract will be drawn to prevent the distributor from doing so with the

inclusion of a clause in the agreement for a two year fixed price.

Decreased interest in reading is a risk that needs to be taken care of. As a remedy,

we will stock those titles that are popular, hence minimizing the risk.

Economic downturn when unemployment worsens and less disposable income to

purchase books and magazine.

For the next few months, Ali and Son Bookshop will undertake the following activities:

To complete contracts with the distributor and obtain inventory once financing is secured.

Start implementing marketing strategies and opening the store for business.

Obtain operating loan of RM 10, 000 to maintain monthly cash balance in the first three years of operation.

Periodical adjustment of the product mix and be proactive to customers feedback

Impressive arrangement of books for display as well as furniture.

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Main Market Segments In Egyptian Market Marketing Essay

Paul founded 120 years ago and is a market leader in France with more than 360 local branches and has spread over 20 countries worldwide. It’s a private sector company operated under HOLDER group which its 3 businesses are bread-making, pastry and restaurants.

Paul’s well known across its borders, and Egypt is one of its targeted countries as its further developing, nowadays.

Through our frequent visits to various spots in different cities in Egypt, we noticed how life style is developing encouragingly; we had to be certain about how liable our projected sales would be in this market. Accordingly we had assigned a marketing research to an international marketing research company “ TNS Global “ which had been for decades present in Egypt. By this we could ensure more accurate estimated results with first-rate standards.

TNS Global has provided us with the primary data through statistical research. We agreed upon that to follow the marketing research through the following steps.

a) Defining Problem and research objective. Our main goal is to ensure the feasibility of entering the Egyptian market, and thorough which means.

b) Developing the research plan. We needed to focus on adults and students as a primary target, athletes and healthy people as secondary target & children and seniors as tertiary target, without neglecting business targets as well. The research needed to cover the following information:

- The demographic, economic and lifestyle characteristic of these segments.

- Main market segments in Egyptian market

- Perceived price for our products by Egyptian consumer

- Suitable market entry

- Preferable sales approach

- Acceptance of the Egyptians for French products

-Egyptian consumer behavior and buying rhythm

- Suitable product features (size-packaging-colors-labeling)

- Competitors (local-international)

- Legal and social environment in Egypt

- Raw materials-labor cost and other production cost if we consider producing locally

- Investment rules in Egypt online commercial databases, we emphasize the primary data through our research to guarantee its validity and objective conformity.

- Our primary data collection will use survey research approach

c) Sampling plan. Random sample questionnaire is used to ask people, on our product and on the idea itself and how they react to it and how much acceptable for them it would be and such open-ended questions. To put hands on required information for research objective.

d) Implementing the research plan. TNS Global had feed us with implantation that includes collecting, processing, analyzing the information.

e) Interpreting and reporting the findings. Conclusions were sent to us in a vivid form that assured our idea about the viability and investment of our product in the Egyptian market.

Paul is preparing to launch one of its branches in Egypt, which is one of the big developing markets. Through direct investment to insure our control over the Egyptian market.

Despite the presence of bakeries other competitors, we can compete because our offering combines both high distinctive quality and suitable market price. We are targeting special segments in the consumers level, taking advantage of high quality baked goods, and distinctive foods and desserts.

The primary marketing objective of this research is to obtain first year Egyptian market share of 20 %. This primary financial objective is to achieve first year sales revenue of 20 million EGP, while keeping losses to less than 6 million EGP.

Paul founded 120 years ago and is a market leader in France with more than 360 local branches and have spread over 20 countries worldwide , and is about to enter the Egyptian market directly . The demand of the Egyptians to cafes with baked goods is increasing rapidly which lead to increase in competitive pressure. Thus dependence on high quality and a little over price according to other competitors will be obligatory to reach market share in this environment. Paul must carefully target specific market segments.

Paul market consists of consumers of all ages from young children up to seniors which could be athletic , healthy or food admiring , who needs a quick pick and go or a short break in regular daily basis . In the first year we will focus on specific segments. Table A1 illustrates how Paul covers the needs of targeted consumers

Paul offers various high quality standard products indoor where customers can have ability to connect via the Internet while enjoying leisure or meeting or takeaway:

7 Plates specially for breakfast

6 Varieties of plates for a quick lunch

24 Different sandwiches with the variety of 7 different breads

10 Types of pies & pizzas

15 Salads

8 Grand classic bread

10 Pleasure bread

8 Light and healthy bread

4 Special meals for athletic and Healthy people

11 Different types of cakes and desserts

5 Type of ice creams

9 Viennoiseries and sweet pastries

6 Options of Crepe

36 Fresh juice , Hot and cold drinks

7 Take away boxes of 12 mini special desserts of one's choice

Children

Sweets

Desserts

Macaroons

Cakes

Tarts

Ice creams

Students

Quick pick and go before classes

Small snacks on way back home or between courses

Sandwiches

Viennoiseries

Hot and cold drinks

Salads

Adults

A little gathering between shopping, work or hangouts

A quick drink on busy days

Breakfast or lunch plates

Fresh juice or other drinks

Crepe

Pies and pizzas

Seniors

Buy goods for home or family

One of the 22 Bread

A box of mini desserts

Athletic and Healthy

Healthy low fat food

Food to fit in their daily diet

A grab before or after workout

One of 8 types of the healthy breads with minerals and vitamins

The unique collection of the healthy sandwiches

One of the meals for athletic people depending on their activity and their daily need

First year sales profits are expected to be 20 million EGP based on sales of Paul’s baked goods. During the second year we prepare to introduce Paul’s restaurant which will provide the following:

Soups

Side dishes

Side sauce

Big main dishes for Breakfast , Lunch & Dinner

More menu variety from each category of the previous provided products

Increased entry of cafes and bakeries has pressured competitors to continuously let prices down and add more products every day.

Competitors include:

Starbucks

Costa coffee

On the run

The bakery

Starbucks: Is an international coffee shop from 30 years ago, offering hot and cold drinks, some desserts and very few sandwiches.

Costa café: is a 28 years old coffee shop which is internationally recognized, that offers few sandwiches, salads and desserts. But recently is facing financial struggles due to the increase of competitors and being not able to provide a bigger variety of products.

On the run : is the biggest competitor as its widely branded through almost 9000 stores worldwide , and one of the leading stores locally .It sells desserts , sandwiches, hot and cold drinks , salads , very few pizza.

The bakery : is one of the several shops which is considered to be a café and a bakery that sells some bread , sandwiches , few desserts , hot and cold drinks

Despite this strong competition, Paul can make out a distinct image and win recognition between these competitors and targeted segments. Our Unique way of baking bread is definite and doesn’t exist anywhere else , adding Paul’s large variety of products which have French background makes it unique in the local market , and never disregard 120 years experience.

Paul’s products will be sold through Paul’s stores and also through other stores in top 20 Egyptian markets. Among the most important partners that will help us distribute that already has been contacted are:

Super Markets. Metro market & Alfa market. Will allow Paul to present its product in their store.

Local bakeries. The baker, Bread basket. Will buy from Paul its unique bread variety to offer in their store.

School and University. American University Cairo , German School Cairo , British International School Cairo, German University Cairo & French University Egypt , Le Collège de la Mere de Dieu . Have agreed to deliver most of our sandwiches, desserts and beverages in their Cafeteria.

Fitness centers and sport clubs. World gym, Golds gym and Platinum gym, will sell our healthy sandwiches and athletic’s meals.

Variety. Our customer has a wide range of varieties through which they can explore and try and not getting used to only one product.

Price. Our products are in an affordable competing price according to the provided quality.

Quality. Paul signed with the Ministry of Health's Terms of voluntary commitments nutritional progress under the Programme National Nutrition Santé on all its products. Paul becomes the first brand of bakery and catering to obtain this recognition.

Reputation. Paul has achieved an esteemed reputation throughout the years.

Unique. Paul provides many unique products in the Egyptian market which can allow it to have a definite image between competitors which would help it to have the targeted market share.

Brand Awareness. As a start up, Paul didn’t yet establish an image or brand name in the local market. Whereas “On the Run “and other competitors have a strong image and national brand recognition.

Culture Background. Most of our product comes from French background, thus it will take a little time for the Egyptian culture to explore and familiarize with it.

Lack in market. Egyptian market lacks most of the products that Paul would introduce.

Increase demand. Egyptians demand to cafes with baked goods is growing rapidly.

Increased Competition. More bakeries and café’s are entering the Egyptian market. With hundreds of them, Paul must stress out clear differentiation.

Competitive pricing. Increased completion is pushing down the prices.

Duration. Paul’s products are all food based, thus it has to be sold during a short time period due to expiry and quality precautions.

We have aggressive but reachable objectives during out first and second years of market entry.

First year Objective. During the entrance of Paul for the first year in the Egyptian market, we are targeting for 20% share of Egyptian market.

Second year Objective. We are aiming to achieve 30% of Egyptian market based on launching Paul restaurant and to achieve break even early in this period.

Paul’s marketing strategy mainly depends on positioning of product differentiation.

Primary consumer target. Adults and students which are considered upper to middle income individuals , who gathers around the tea-area in Paul and consumers more during their stay.

Secondary Consumer Target. Athletes and healthy people, due to their demand for healthy and energetic food which contains high vitamins and nutrients that Egyptians market lacks.

Tertiary Consumer Target. Children and seniors, as their needs would be little and met easily by mostly buying few products takeaway, like sweets, bread or desserts.

Primary business target. Is mid to large sized

Schools & Universities. As there are large amount of students who can benefit from its presence at their location especially during their break or between lectures as well as their ability to buy such product.

Fitness centers & Sport Clubs. Can profit from the existence of our products, pre or post workout, which could allow them to maintain their training and diet.

Through product differentiation, our product will position itself differently that other competitors.

We will focus on high quality, unique taste and price added value.

Paul will be offering all the products reviewed in the earlier product review section during the first year. We will establish Paul restaurant which will be offering, Soups, Side dishes, Side sauce, & big main dishes for Breakfast, Lunch & Dinner as well as more menu variety from each category of the previous provided products. Building Paul’s brand name that advocates high quality satisfaction is a crucial part of our strategy. The brand name “PAUL “will be printed on every bags and packaging to strengthen its entrance in the marketing promotion.

Since Paul’s products are new to this market, and due to high competition between prices; Paul will introduce its products in a lower price during the first year until Paul’s restaurant is launched by the second year afterward an addition o 10% on Paul’s product will take place to compensate the costs being paid to establish the restaurant and to allow further expansion to cover more parts of Egypt.

Breakfast Plates ( 14 – 35 LE )

Quick lunch Plates ( 3 5 -56 L.E )

Sandwiches with the varieties ( 24.5 – 42 L.E )

Pies & Pizzas ( 14 – 28 L.E )

Salads ( 24.5 – 38.5 L.E )

Grand classic breads ( 7- 10.5 L.E )

Pleasure breads ( 7- 35 L.E )

Light and healthy breads ( 10.5 – 35 L.E )

Athletic and Healthy meals ( 40 – 65 L.E )

Cakes and desserts ( 14- 28 L.E )

Ice creams ( 7- 14 L.E )

Viennoiseries and sweet pastries ( 5.6 – 14 L.E)

Crepes ( 10.5- 17.5 L.E )

Fresh Juices , Hot & cold drinks ( 7 – 21 L.E )

Take away boxes ( 70 L.E )

Paul’s channel strategy is to use its store location as a primary tool to distribute its products and to rely secondly on well known supermarkets, local bakeries, schools, universities, fitness centers and sport clubs , and lastly on online orders.

By combining and distributing all media messages simultaneously, we will fortify the brand name and the main points of product differentiation, especially out unique breads and desserts. Media campaign will be critical before and during product introduction. Therefore, advertising will appear on a rhythmic basis to maintain brand awareness and convey numerous differentiation messages. We would coordinate Public Relations efforts to develop Paul Brand name and support the differentiation message. We will as well offer limited time promotions, a listed item for customers that will buy a dessert, breads or other products will be offered without charge and further such promotions to attract market attention and favors purchasing.

Paul will provide free samples on first one month, for its business targets, as well as it would set special trades deals for retailers that would place volume orders. We would as well rent booths in grand malls to demonstrate our products for first two weeks, we also will offer discounts for purchases that exceeds 150 L.E.

Multimedia advertising campaign will take place; offers will be held with our partner radio stations, so that free gift coupons would be offered as a prize through them.

Paul will enter the Egyptian Market in September. The upcoming steps will summarize the action programs that will be taking place in the next six months.

We will begin with 400,000 L.E. sales promotion campaigns, to introduce the awareness of Paul to the local bakeries, schools and universities, fitness clubs and supermarket and also to generate excitement for Paul’s entry on October.

Paul will be launched. Internet, Radio, and print campaign will take place, directed towards our business and customer targets. The campaign will show the products we offer, their quality, and that they are new and unique in Egypt.

As internet , Radio, Print & multimedia campaigns persists , we will add consumer sales promotions , as offering promotions for large amount purchases , giving free item to consumers that buy desserts , breads and other products , as well as placing our booth in grand malls offering free samples.

We will distribute our products to schools, universities and supermarkets at this stage .Sales contest will be hold to offer prizes for sales person or one of our partners that offers our products, which had sold most out of our products.

Radio ads will put on celebrities taking about their experience trying Paul. Prints, television and internet ads will show celebrities eating a dessert from Paul.

We will offer out free coupons to our partner radio stations .we will place our products in local bakeries, fitness centers and sport clubs. Results of customer satisfaction survey will be counted and considered to make use of it in further promotions, and to review feedback of our products.

The first Year sales profit is projected to be 20 million EGP. We predict the first year loss of 6 million EGP as there would be marketing budget not less than 1 million EGP plus the start up expenses of factory building , machinery , and staff hiring and training.

We are arranging a Very tight control measure with strong monitoring method to ensure customer satisfaction. That will allow us to respond very quickly in correcting any problems that may arise.

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2013 Latest Report on Mobile Accessories Market in India 2013

(2013, 05). 2013 Latest Report on Mobile Accessories Market in India 2013. StudyMode.com. Retrieved 05, 2013, from http://www.studymode.com/essays/2013-Latest-Report-On-Mobile-Accessories-1723949.html

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Target Market

Target Market
Maria Rose
MKT/498

Target Market
“Just Do It” is a well-known tag line for Nike. The “Swoosh” is another iconic symbol for the number one athletic shoe company. Founded in January 1964, on a hand shake and five hundred dollars apiece, Bill Bowerman and Phil Knight placed their first order of 300 pairs of shoes; and Blue Ribbon Shoes was created. The currently known name Nike was created in 1971 by Jeff Johnson. He had met Phil Knight at Stanford and soon became an invaluable asset to the new company. Johnson created the first marketing material, print ads and brochures, established a mail order system, opened the first retail store, shot the photos for the first catalog, designed many of the early Nike shoes, and managed all shipping and receiving orders. The “Swoosh” logo was created by Carolyn Davidson, a graphic design student from Portland State University. The “Swoosh” was debuted in 1972 on the footwear designed for the U.S. Track and Field Trials (Nike, n.d.).
Target Market
Nike was created for athletes originally, particularly for runners. Nike has not changed their target market. Instead, they expanded their target market. While Nike still targets runners, they decided to take over the athletic shoe world by targeting other various sports. In 1985, Nike debuted a signature shoe for the new NBA rookie, Michael Jordan. The Air Max was the focal point of 1987 and was supported by television ads and the soundtrack “Revolution” by the Beetles. 1989 launched the “Bo Knows” campaign for cross trainers. Soccer and golf became the target market of the 90’s. Several players from the World Cups Brazilian team were signed to Nike. Next came the entire Brazilian team and soon thereafter, Nike signed the U.S. men’s and women’s soccer teams, as well as many national teams from around the world. Eldrick “Tiger” Woods was signed to Nike for an estimated $5 million per year (Nike, n.d.).
Currently Nike has a wide range of products targeting...

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Street Market in Summer

A Street Market in Summer

The long stretch of tarmac, used for completely the opposite of its purpose, and smaller roads and intersections, winding away from the main lane. Along the sides of all these, is a vast stretch of ubiquitous stalls selling all kinds of objects, from the mysterious shop in a dark corner stall to the big bright fruit shop, from air valve caps to toothbrushes to hotdogs to antennas and whatnot.

This is the wonderful, unique scenario one would experience at almost any market around the world.

People, from all corners of the city, meet at this one spot. People from around the world even, tourists obviously. Nevertheless, everyone who visits discovers everyone else’s different traits, clothing, and personalities. The whole market’s people, form shop keepers, to customers, beam with life from every corner and side the long stretch of tarmac that we, or rather the people, know universally as a market, a street market.

It changes however from season to season, changing the whole experience of the place. One particular time where the market is at its busiest, and in some ways not as pleasant, is during summer time. During this time, stalls are full of the opposite of what they previously had, and much, much more of it, to comply with the outstanding demands of the shop goers. People move more quickly, more hastily, more demandingly.

With even all this, the Market still doesn’t cease to attract people from of different corners of who knows where to its exciting, bright and exuberant atmosphere.

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