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Perform Market Research.
Pick Your Niche.
Write a Business Plan.
Get Funding.
Find the Best Space.
Purchase Equipment.
Find The Right Digital Tool.
Hire People to Make Your Product.
PROMOTIONS
We are going to implement a lot of marketing techniques. We will implement “TV
commercials”. Create brand awareness about our product. Run TV commercials.
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Print Advertising
Banner ads
Posters
Digital Marketing
Brand positioning
Creating brand awareness
Pricing strategy
Creating unique ideas
Repositioning
We have a proper budget for marketing. We are going to spend 30 – 35% in promotions
and marketing
We have conducted proper
surveys
 market research
 Segmentation
 Competitors research
Understanding the consumers and the major problems that they face is essential. We are
building strategies to capture the different sets of segments in the market.
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Target demographics are one way that we are going to differentiate our product.
Traditionally, the task of doing laundry has fallen to women. The majority of today’s
laundry detergent advertising is aimed at wives and mothers. However, we can turn this
idea around and use the psychology of unexpected direction by marketing to men.
In addition to differentiation, we will use the herd mentality of social media to boost the
popularity of our company’s laundry detergent brand. For example, we can launch a
laundry detergent “contest” via Facebook/ instagram, inviting consumers to purchase
our washing powder, use it to wash their clothes, and share a brief story or video about
their washing experience . The participants will stand a chance to win an incentive. In
this process we have the potential to gain customers and make money. Detergent is a
frequently replenished household supply, and gaining loyal customers is the best
strategy for success in this industry.
TARGET MARKET
The detergent powder is an alternative for laundry soap. The major advantage of detergent
powders is that they are very easy to use and remove dirt, oil stains, and grease effectively.
They can also be used for hand washing purposes. They also have longer shelf life compared
to liquid detergents. At present, many people choose detergent powder over laundry soap
because it is more convenient for washing when using washing machines, and also detergent
powders are easy to use and budget-friendly.
It is known that the decisions related to buying any grocery items are commonly taken by
women. So, women of age 18 to 54 are the major target audience of detergent powder
brands. Along with women, middle-class people are also the target group of audiences of
detergent powder brands. The world have evolved into believing in equality and that anything
that was designated for one gender can be done by the other gender, because of that we
cannot exclude men from our target market…bachelors who live alone, most people may
choose to hire help to wash their clothes but the good thing is they still purchase washing
powder. So, the marketing strategies should be based on attracting these groups of people.
Individuals aren’t the only ones who buy and use washing powder, companies such as hotels,
self-catering apartments, use washing powder on a daily/weekly basis to wash bedding and
towels for their clients. These are also some of our target market.
4 Effective Risk Mitigation Strategies
Identifying risk is an important first step. It is not sufficient though.
Taking steps to deal with risk is an essential step. Knowing about and thinking
about risk is not the same as doing something about risk.
Risk will occur. Some good, some bad. Some minor, some catastrophic. Your
ability to mitigate risk allows you to proactively acknowledge and
accommodate risks. Let’s talk about four different strategies to mitigate risk:
avoid, accept, reduce/control, or transfer.
Avoidance
If a risk presents an unwanted negative consequence, you may be able to
completely avoid those consequences. By stepping away from the business
activities involved or designing out the causes of the risk you can successfully
avoid the occurrence of the undesired events.
One way to avoid risk is to exit the business, cancel the project, close the
factory, etc. This has other consequences, yet it is an option.
Another approach is to establish policies and procedures that assist the
organization to foresee and avoid high-risk situations. By not starting a project
that includes a high unwanted risk successfully avoids that risk.
Testing or screening of products that may have a latent defect which may lead
to unwanted and unacceptably high field failures is an option. Screening is not
100% effective yet may reduce the risk of field failures sufficiently.
Design out of a product or process the elements that permit an unwanted risk
to arise. A product design change to a more robust material avoids unwanted
failures due to unacceptable wear of a less robust material. Implementing
engineering design reviews in the product lifecycle process may help identify
high-risk areas of a new product or process prior to the decision to start
shipping.
Acceptance
Every product produced has a finite chance of failing in the hands of your
customer. When that risk is at an acceptable level, sufficiently low estimated
field failure rate, then ship the product. Accept the risk.
When the decision to accept the risk is in part based on an estimate or
prediction, there is the risk the information incorrectly forecasts the future.
Therefore, for high consequence related field failures, closely monitoring field
performance or establishing early warning systems may be prudent.
Reduction or control
FMEA, hazard analysis, FTA, and other risk prioritization tools focus help you
and your organization identify and prioritize risks. Reducing the probability of
occurrence or the severity of the consequences of an unwanted risk (say
product failure) is a natural outcome of risk prioritization tools.
If it is not possible to reduce the occurrence or severity, then implementing
controls is an option. Controls that either detect causes of unwanted events
prior to the consequence occurring during use of the product, or the detection
of root causes of unwanted failures that the team can then avoid.
Controls may focus on management or decision-making processes. Improving
the ability to find design flaws or to improve the accuracy of field failure rate
prediction both improve the ability to make the appropriate decisions
concerning risk.
Another method to reduce or control risk is to diversify. Thinking through the
mix of products, technologies, markets, operations, and supply chains permit
the team the ability to limit the high-risk opportunities to a manageable or
acceptable level.
Finally, unwanted events or high field failure rates will occur. Think through
both how you will detect the onset of the event and how to respond. It may be
wise to stop production and shipping when product failures, even one, has a
major consequence (starts a home on fire, for example). Have plans in place.
Acting quickly and appropriately may reduce the exposure to more
failures/adverse consequences.
Transference
This strategy is to shift the burden of the risk consequence to another party.
This may include giving up some control, yet when something goes wrong
your organization is not responsible.
This approach may not work to protect your brand image if the product is
associated with your organization. Even if the power supply vendor pays for
all damages due to failures in their unit, the customer only knows that your
product has failed and caused damage. Use this approach with caution.
A conventional means to transfer risk to another organization is with the
purchase of insurance. This may require a careful analysis of the presenting
risks and probabilities, yet is a viable option in some situations.
Contract terms with suppliers, vendors, contractors, etc may provide a means
to shift risk away from your organization. For example, if a power supply fails
in an expensive server causing the loss of revenue for a customer, in typical
situations, you might ask for and receive a replacement power supply. Or, you
could require the power supply vendor to cover the cost of the entire server
(which the power supply caused to fail) and the loss experienced by the
customer.
Summary of Risk Mitigation Strategies
Avoid, accept, reduce/control, or transfer. For each risk you encounter, you
and your organization will have to deal with it. A little forethought and work
enable more options than just a major product recall or bankruptcy filing.
Within your organization’s risk management framework there should be both
aware of the various strategies along with understanding the guidelines for
their implementation.
Engineers and managers throughout the organization make decisions
concerning risks every day. Providing a set of clear strategies along with
guidance allows the entire organization to appropriately mitigate risks on a
daily basis.
Distribution Channels
The distribution channel types can be direct and indirect.
Direct Channel
It is where manufacturers or producers directly deal with customers without having
any middlemen involved. Businesses catering to the low volume of consumers and
targeting a narrower marketplace consider this zero-level channel. This is the route
we intend to begin our business with, the only way to get Batswana to know and
love our product is if we take it to them and give them a chance to experience
using our product.
Indirect Channel
We don’t intend to use only one distribution channel. As time goes on, once we
have attained a certain portion of the market we can introduce the indirect
distribution channel to our business. This marketing channel is suitable for
businesses that cater to a broader range of customers and market segments. In this
type of network, products travel from producers through different intermediaries
until reaching the consumers. The intermediaries include wholesalers, retailers, and
distributors.
Producers either trust large retailers to deliver their products to customers or
connect with wholesalers to do the job. These wholesalers distribute products to
multiple small retailers that make them available to consumers in their respective
areas.
Based on the intermediaries involved, indirect channels can be:
1. One-Level (Manufacturer to Retailer or Distributor to Customer), e.g., clothing and
furniture stores.
2. Two-Level (Manufacturer to Wholesaler to Retailer or Distributor to Customer),
e.g., supermarket.
3. Three-Level (Manufacturer to Distributor/Agent/Broker to Wholesaler to Retailer
to Customer), e.g., drop-shipping.
Functions of Distribution Channels
In addition to facilitating the delivery of products or services to consumers, a
distribution channel servers many other essential functions. These include:
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Assembling, storing, bulk breaking, and sorting of products
Moving goods from warehouses to customers
Managing payment flow pre-sales or post-purchases
Providing market information to producers
Promoting the brand and its benefits to end-customers
Maintaining price stability by absorbing any price increase
Sharing the market risk with manufacturers
Getting a chance to promote themselves through the distribution of products
Level up your branding and marketing
Brand identity, It’s our personality. If we don’t have one, it’s hard to make an
impact. Market share leaders usually have an X-factor brand identity and
marketing edge that makes them stand out. Think: Choppies, Nandos, and
Glotto. These brands are household names.
What’s important here is developing a holistic brand strategy that embodies our
mission, our vision, and our message. When we develop a cohesive design and
voice that reflects all these and consistently present it to our audience, we will
make a lasting impression.
It’s much easier to grow from a niche market compared to if we try to conquer
the entire market from the jump. A classic example is Coca-Cola. This
consumer giant didn’t stop after cornering the soft-drink market. The global
powerhouse went after a more health-conscious and fitness-oriented markets,
with hydration and water products like Smart Water, Vitamin Water, and
PowerAde.
The lesson here: it is better to align our marketing to target a specific group
or market segmentation and build a reputation. Then grow from there.
Keep innovating (and not just technology)
To continue to grow our market share, we need new technology. Apple is a
perfect example. The iPhone maker practically stands for innovation and sleek
design and is constantly releasing new products.
Another example is Google and its ever-changing search algorithms to improve
results and meet users’ needs. Google has the largest market share of all search
engines, even in regions where you’ll find other prominent search engines like
Russia, and not by accident.
Product development is a priority for market leaders. And even if a product itself
doesn’t change, we can still innovate. Look at Starbucks and how their
marketing constantly draws new attention to different seasonal trends. There’s
always a way to innovate. We just need to find it.
Add discounts, benefits, and incentives
Discounts, bonuses, or extra benefits can provide an additional incentive for
consumers to buy. In e-Commerce, for example, companies that offer free
shipping generally have an advantage, even if it means adding an extra product
to your cart to meet the minimum. Finding our competitive advantage.
These methods can boost our business when competition is aggressive, or were
not growing as much as we planned.
Cultivating our customer base
Keep your eyes on your customers. Yes, your existing customers.
Our current customer base generates your market share. To maintain that, we
need to hold on to it and view each customer as an investment. Turning
our target audience into loyal customers by making them feel appreciated,
engaging with them, and most of all, listening to them.
Why? Because they will show us where to invest our resources next.
They can tell us what they love about our product and what it is missing.
We will use that in our innovation, our marketing strategy, and our pricing
policy. Our customers need to keep coming back for more. When they do, they
will bring their friends and families.
Word of mouth is a popular marketing strategy. By nurturing customer loyalty,
we will naturally bring in new customers, which will lead to a higher market
share.
Acquisition opportunities
Sometimes the best way to increase market share is by acquiring it.
Instead of putting efforts into developing new products or services that fit their
vision, enterprises often buy out smaller companies that have already done that
or offer a better product. This option requires financial stability and managerial
capabilities.
On the other hand, it keeps competition at bay.
Market share increase starts with growing your traffic
share
If you want to grab a larger market share, you should start with traffic share.
Website traffic represents the market volume in the digital world and tells
you where you stand in an instant. With tools like Similarweb’s research
analytics tools, you can see your own traffic data, traffic data from
competitors, and your industry as a whole.
Get a breakdown according to companies and identify top-performing
websites and potential threats. See which companies are gaining or losing
market share and where you fit into the puzzle.
You can even investigate different traffic sources and dive into engagement
metrics for actionable information.
What Is Market Share?
A company's market share is its sales measured as a percentage of an
industry's total revenues. You can determine a company's market share by
dividing its total sales or revenues by the industry's total sales over a fiscal
period. Use this measure to get a general idea of the size of a company
relative to the industry.
Investors look at changes in market share as a possible sign of relative
competitiveness of a company's products or services. As the market of a
product or service within an industry expands, a company that is maintaining
its market share is growing its revenue at the same rate as the total market. A
company that is growing its market share will be growing its revenues faster
than its competitors.
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Market share is the proportion of activity of a specific company
compared to the rest of the industry.
Market share is usually calculated using total revenue, though nonfinancial metrics like units sold or the number of customers can also be
used.
Market share is calculated by dividing the company's total by the
industry-wide total for any given data set.
Market share is useful when comparing companies accross the same
industry.
Companies with higher market share are often less risky investments
with less upside than companies with lower market share.
How to Calculate a Company's Market Share
A company's market share is often quoted as a percentage of industry-wide
sales. However, there are other ways to calculate a company's market share.
For example, instead of comparing total dollar sales, you can determine how
many monthly subscriptions a single company had compared to the rest of
the streaming industry. With this in mind, there are five steps to calculating
market share:
1. Select the period to analyze. It'll be easiest to obtain monthly, quarterly,
or annual data. Keep in mind that you must gather information for both
the specific company you wish to analyze as well as the entire industry
they reside in.
2. Select your market share basis. You're most likely to see market share
determined on dollars of revenue. However, you can select nonfinancial aspects of a company as well. For example, instead of seeing
what a company's total revenue is compared to the industry total, you
can analyze a company's total number of customers compared to the
industry-wide number of customers.
3. Determine the single company's total. Again, this can be the total
revenue from a specific period or a non-financial metric like the number
of units sold. You can obtain market share data from various
independent sources such as trade groups, regulatory bodies, or
periodic financial disclosures issued by the company.
4. Determine the industry-wide total. This figure must correlate to the data
sourced in Step 3. It must cover the same time period, and it must be
determined using the same methodology. For example, if the data
selected in Step 3 is limited to a specific geographical area, the data in
Step 4 must also be limited to this region.
5. Divide Step 3 by Step 4. By dividing the company total by the industrywide total, you're left with a percentage that represents the size of the
company's presence in the total market. Companies with high
percentages have a greater market share, and your quotient should not
exceed 1 (as a company cannot own more than 100% of any aspect of
an industry).
Market Share Calculation Example
Suppose you want to calculate a toy manufacturer's market share over
one fiscal year. The toy manufacturer had total revenues of $20 million, and
the toy manufacturing industry had total revenues of $200 million over one
fiscal year. To find the toy manufacturer's market share, divide $20 million by
$200 million. The manufacturer's market share is 10%.
The toy manufacturer then releases a new product that captivates its target
audience. During the first quarter of the following year, the company had total
revenue of $10 million, while industry-wide revenue was $40 million. The
company's market share has now increased to 25% of first-quarter sales.
Doing deeper analysis, it was determined that the toy company sold to
10,000 customers during the first quarter. In total, 31,250 customers
purchased toys during this time. Although the company's market share in
terms of dollars was 25%, the company's market share as a factor of total
customers was 32%.
Comparing Market Share in an Industry
Market share can also be used to compare similar companies within the
same overall industry. For example, suppose one technology company has a
20% market share while a second technology company has a 15% market
share. This signals that the first company has a larger market presence than
the first company.
It is also possible to use market share over multiple periods to see how well a
company fares against its competitors and whether the company is growing.
In the following year, let's imagine the first technology company has grown to
a 25% market share. However, its competitor has doubled in size and now
controls 30% of the market. Though the first company has scaled, it has been
outperformed by the second company which now has the strongest presence.
Why Is Market Share Important?
Market share is an indicator of which companies are leading their respective
industries. When a company controls most of the market share, they are
recognized as the leader in their field. Companies that control the market
usually have stronger brand recognition, broader competitive advantages
regarding price and product placement, and more efficient scaling
opportunities.
Companies are always looking to expand their share of the market, as well as
grow the size of the total market by appealing to larger demographics,
lowering prices, or using advertising. Companies with larger market share
have more effectively organized their company to appeal to the broad market,
while companies with small smaller market share may be young or yet to
appeal to the broad market.
When analyzing market share, there are a few things to consider:
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How has a company's market share changed over time?
How has the market share of each competitor of the company changed
over time?
How many competitors are there in the industry?
What is the company's long-term strategy? Is their objective to scale or
to maintain their current product line or client base?
How reliable is the underlying data used to analyze market share?
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What are the underlying trends of the industry? Is a company with a
high market share at-risk of innovative companies stealing market
share in the future?
When making an investment decision, it is important to analyze market share
to decide whether the company aligns with your investment goals.
Companies with larger market share may be safer investments, though their
upside may be limited as they have already achieved market success.
Alternatively, companies with lower market share are at risk of being pushed
out of business though they offer greater long-term potential if they find
success.
What Is Market Share?
Market share is the measurement of how much a single company controls an
entire industry. It's often quoted as the percentage of revenue that one
company has sold compared to the total industry, but it can also be
calculated based on non-financial data.
Why Is Market Share Important to Investors?
Market share informs investors of how successful a company has been
compared to its competitors. If a company has a high market share, it is a
successful company that has secured customers, likely has a recognizable
brand, and it's more likely to be a less risky investment. Alternatively,
companies with low market share provide higher investment upside, though
the success of the company is still to be determined.
Is It Good to Have a High or Low Market Share?
In general, it is often better to have a high market share. If a company has a
high market share, they are well-established in an industry and have likely
achieved some level of success. If an investor wants to pursue riskier
endeavors in younger companies yet to control their market, it is better to
seek out companies with low market share.
Step 1: Combine top-down and bottomup research
To build more focused and defensible total market opportunity estimates,
combine aggregate competitor sales data and industry forecasts along with
more specific, “bottom-up” data reflecting the customer base dynamics of the
product or service. This approach enables product managers to create more
defensible estimates that address the company's specific customer definitions
within the context of the broader addressable market.
Step 2: Shift focus from sizing the global
market to defining the addressable
market
Total available market is a segment or class of prospective buyers you have
chosen to pursue first because of some unique positive characteristics shared
by the members. Honestly assess and accept the strengths and limitations of
your company's operations to refine a total market opportunity estimate into a
total available market calculation.
Define and calculate the number of potential customers or users within the
immediate sphere of your business's influence by applying important gating
factors such as the company's segment focus, customer attributes and
operational capabilities.
Step 3: Refine available market estimate
into total serviceable markets
It is nice to know that the total available market is potentially large and the
total serviceable market is attractive. However, your business leaders and
partners need to know what results they can achieve in the current phase of
the market.
To arrive at your company’s total serviceable market estimate, gauge how
many customers are expected to buy either as early adopters or as more
mainstream adopters in your targeted market. Outline factors such as how
long it will take for the business benefits of the emerging technology to
be accepted among targeted buyers.
“ The market segment opportunity
should represent what your company
can realistically expect to achieve in the
target market”
Quantifying the total serviceable market highlights to business leaders and
your partners their potential level of agency in moving the market to adopt
new approaches. Product managers can show how their involvement,
investment and resources make a difference in growing revenue over the
emerging technology’s life cycle.
Step 4: Focus on actual financial
impacts
The market segment opportunity should represent what your company can
realistically expect to achieve in the target market. The opportunity must
account for critical implementation factors such as the existing combination of
proposed product or service, operational efficiency and scale, and marketing
and sales channels, as well as distribution structure.
Utilize survey and conjoint discrete choice techniques to identify the best
balance of brand, features, pricing and other factors that can lead to a
company deciding to switch vendors. Explore nuanced and detailed insights of
the business model for the product or service being analyzed, including brand
strength, switching behavior and price sensitivity trends.
With an honest and transparent internal assessment, product managers can
derive a market segment opportunity calculation that sets realistic
expectations of likely business opportunity. Only then is the executive buy-in
durable enough to bring the product or services to market with long-term
profitability.