Market Analysis

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Question 1: Market Analysis and Market Entry Strategies (35 Marks) By analysing Market analysis, factors affecting competitive rivalry: this is one of the factors emerging from the Porters five forces model can help in strategic development issues such as Differentiation: providing quality products and services when compare to the others, such as whole foods store in London positioned itself as a food retailer emphasising fresh and organic food, access to distribution channels: this helps in market penetration as well as market development. It is not about how good your product but whether the product is accessible to the customers and how fast you can diffuse the product into the existing as well as new markets, marketing intelligence: companies who spend resources on understanding the trends in the market will come up with the better solutions to solve customer related issues. Market selection is a complex process which involves analysing Micro and Macro environmental analysis. Organisations depend on the primary and secondary research related to PESTEL factors as well as on data pertaining to suppliers, consumers and competitors. One of the major constraints for Starbucks in India would be to follow the compliance laid down by Foreign Investment Promotion Board (FIPB) makers about equity distribution in collaborative partnerships. FIPB has laid down that any foreign retailer cannot control more than 50% of the equity in the Indian markets. Since Starbucks would be new to the Indian market it would be critical to gain local expertise by establishing local partnerships to gain understanding of cultural issues as well as gain acquaintance with local intermediaries in promoting their product and services . Starbucks will expect to have stiff competition from the two biggest national bands: Barista and coffee day. Indian culture favours drinking tea over coffee and the established national companies mentioned above had to focus on the segment targeting young and aspiring professional population in India. Working with the local partner would provide necessary infrastructure in building local management teams, who could then be devolved with the responsibility of managing its brand equity. As explained in our presentation forging an alliance with the Tata group (internationally known for its diversified interests) would help Starbucks spread its wings in India. Joint ventures: this is the form of an external development, which involves two organisations working together on a new venture. Two or more organisations share their resources, knowledge, technical know-how and experiences. This may be done to share the risk involved as well as to tap the synergy emerging from working together. Organisations may have complementary skills which in case can be invaluable.

Question 2: An analysis of Brand and Positioning in the chosen country (25 Marks) ) Positioning is something (perception) that happens in the minds of the target market. It is the aggregate perception the market has of a particular company, product or service in relation to their perceptions of the competitors in the same category. It will happen whether or not a company's management is proactive, reactive or passive about the on-going process of evolving a position.

But a company can positively influence the perceptions through enlightened strategic actions. In marketing, positioning has come to mean the process by which marketers try to create an image or identity in the minds of their target market for its product, brand, or organization. It is the 'relative competitive comparison' their product occupies in a given market as perceived by the target market. The Process of Brand Positioning involves: •Defining the market in which the product or brand will compete (who the relevant buyers are) •Identifying the attributes (also called dimensions) that define the product 'space' •Collecting information from a sample of customers about their perceptions of...
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