Market Segmentation

Topics: Marketing, Target market, Product differentiation Pages: 11 (3264 words) Published: December 16, 2012
1. The company introduction
Handicraft and souvenir industry is an emerging industry in many developing countries. There is a large number of customers who are interested in handmade or unique gifts in European. A rise in demand from the US and European markets has pushed India's handicrafts exports up by around 22 per cent to USD 369 million in August, 2010 ( Among European countries, Finland is considered as one of many potential markets for us to develop this kind of industry. That is the reason why we wish to enhance a designing company to provide more unique designing gifts what meet the market’s demand in Finland. Company information and our products

Our company is established from 2009. Our activity is to sell our souvenirs/gifts designed by our company to wholesale suppliers as well as retail gift shops throughout Vaasa. We want to provide up-to-date designs and products which are suitable with Vaasa customers’ preference. Our purpose is to bring the new concept in gift culture as well as choosing gift in Vaasa. Gift is not just a gift but it is also a message which contains giver’s heart to receiver. Therefore, a gift including own giver’s loving is to be more valuable in receiver’s eyes. Our first market is located at Vaasa, and then we will consider approaching other parts of Finland. In Vaasa, our main customers can be souvenir shops such as Hantverket shop, Hattu&Onni shop, Karitad Snickarbod shop, Kuntsi Museum shop, Maya shop, Onnen Sydan shop, R-Kioski, souvenir posti shop, etc. Basing on the potential market in Vaasa, we want to provide the diversity in style for gifts. Our value is to bring the speciality for each gift. Our products will concentrate on T-shirt with slogan, post card with meaning message as well as more special type of gift. Price offered is reasonable, and it is suitable with many people. Materials for our products can come from the countries where have advantage at handicraft such as India, China, etc. Place of business is located at center of Vaasa city. It is convenient to contact customers and deliver products. Product life cycle

We are in “introduction” part of product life cycle. Our product is not new for some group of customers. However we are a new brand, thus our purpose at very first step is to raise customers’ awareness about our brand and our own features. “Why should customers choose us among other brands?” is the question which needs to answer during this part. To have a clear answer, conducting a market research is necessary step in deciding our product and approaching the market. Organization

In our company, we organize the system including a general manager, a designing department, a marketing department, financial department. Marketing department will advertise our products and increase our product’s value in the market. This department also has a role of studying customer’s preference and transfer the information for designing department. Then, designing department is the most important part because our objective is newly and uniquely designed products to attract customer’s interest. So they are responsible for creating products. Financial department will control cash flow and the investment for each product. Key ratios

Key ratios are considered in some main products such as T-shirt with slogan and post card with message. With slogan T-shirt, the number of quantity for the first release can be 300. We want to provide a small sum first as the penetration. Products are designed in many styles and we will continue producing according to customers’ interest later. The gross margin will be high because the money invested for each product is quite low and we can offer a reasonable price for customer. For example, the price for each post card is 3 euro (including 2 euro for producing process and 1 euro as profit); the price for each T-shirt can be 10 euro (including 5 euro for material, 2 euro for printing process and 3 euro as profit)....
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