Should the company go after the home market?
Yes Plastic Industries Inc should enter the home market because this market is new and untapped. Also it is 5 times higher than their current market.
However a thorough Market Research needs to conducted before entering the home market which will be a reality check to its profitability.
When entering the home market first of all the Company should try to create positive attitude on the general public over the visibility of the product since it is observed in the home market that the general public image of plastic pipes is that they are easily breakable and would not last as long as conventional pipe. Hence in order to solve this specific challenge the company should perform image building work through convincing the middle man. One of the best ways to win the market is through convincing the middle man to take and display the product in the eye caching location on the retail shop. As a result of this the plastics industries Inc. Can create positive attitude regarding the product.
Also the advantage that Plastics Inc. Can highlight to the public is the fact that the price of plastic pipe is less than the metal one, hence the company can get acceptance in the home market through providing product at a lower price through penetration pricing strategy.
The company can also set a low initial price in order to penetrate the market quickly to attract a large number of buyers and win a large market share.
Thus looking at the various positive sides for Plastics Inc. It should definitely try to enter the home market.
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