Factors Empirical Findings World Markets - Myassignmenthelp.Com

Question: Discuss About The Factors Empirical Findings World Markets? Answer: Introducation A concept which is used for receiving financial gain that is generally positioned on a service or product and offered to people in return for money is known as a Business Idea. The base of a pyramid is an idea of the business. The characteristics of an effective and strong business idea are: Unique and Innovative. The idea is about a perfume brand i.e. Neoteric which is going to be placed in the market of Australia. The managers of the company are planning to place the office in Melbourne, Australia. Mr. Chris is the one who provided this idea of the product; he is the part of companys marketing team and going to lead this project. Neoteric perfume is the combination of vital oils of fragrance or compounds of aroma, solvents, and fixative used to provide the body of human, animals, objects, food and living spaces, a delightful scent. The company of Neoteric Perfume is providing different options to its customers in terms of fragrance, along with this the perfume can be used by men, w omen and also for youth. Benefits of Using Neoteric perfume This benefit is quite understandable. Perfume has been used from ancient time and the key aim of using it was for fragrance (Ameya, 2017). Neoteric perfume will help people in keeping the uninvited smell of body away and confirms that the user always feel fresh and they smell good whole day. Enhances Mood The major benefit of using Neoteric perfume is that it will help in enhancing the mood of the user (Neesh, 2016). Neoteric Perfume is providing various fragrance options which make the user to buy the product according to their mood. In every condition whether the user is feeling reserved, mischievous, playful, or timid the Neoteric perfume provides many smells options for different moods. The customer can choose and apply the perfume according to the event so that he/she can create the perfect mood for it (Eula, 2013). Boosts Confidence Same as a pretty dress, a soothing smell of a perfume can boost the confidence of the user and confirms that the user can spend his/her day without feeling uncomfortable about the smell of the body (Nik, 2018). A splash of fragrance can do wonders for the user's personality. In order to have a soothing and attractive body smell people can choose Neoteric Perfume as it will suit the personality of each user and will also increase the confidence and morale to battle against all the unwanted smell. Mission of Neoteric Perfume The Mission of Neoteric Perfume is to become the leading brand of perfume in the world, by meeting the preferences and taste of their customers and providing them different fragrances. Product Offering The Neoteric Perfume will offer a variety of fragrances to its customer so that they can use it according to their mood and occasion. The variety of fragrances provided by the perfume is Citrus, Oceanic, Floral, Green, Spicy, Woody, Fruity, and Oriental. The perfume is focused towards providing the quality to its customers so that they can become the loyal customers of the company. Along with this, all the varieties offered by neoteric Perfume are very gentle to the skin which does not have any side effects on the skin (Kynaston, 2015). The services of the perfume will be offered in the local market of Australia but the management has also planned to place the product on online shopping sites such as David Jones, Myer, etc. in order to offer products easily to the customers. Market Analysis An assessment of determining how much a market is suitable for a particular industry is known as Marketing Analysis. It can be used to evaluate the present market of the company or can evaluate the new markets. A well-rounded and holistic picture is provided to the company by market analysis that helps in identifying interest and wants of the customers. There are various evaluation tools involved in the components of analysis, comprising a conversation of the company and its position in the market. It also helps in examining the target market, cultural and legal regulations, and conducting competitive analysis. Industry Analysis The products like perfume, cosmetics, toiletries, lotion, deodorants are manufactured by toiletries and perfume manufacturing industry. This industry is very small it covers less than 5% of Chemical product manufacturing companies in Australia. The degree of globalization is high in this industry, which reflects the governing position is covered by the beauty brands sector. Various products of perfumes and cosmetics are imported as packed and fully formulated products. The estimation of the imports in 2017-2018 is projected as the total $1.9 billion, which will be able to satisfy 70% of the local demand and emphasizing the strong role of the imports in the industry (IBIS World, 2017). Industry Threats and Opportunities The performance of the industry has been determined by the strong growth of export from last five years. The positive image of the industry in overseas market has increased the rates of export from last five years. The environmentally friendly, organic and natural products development will increase the demand. Competition Industry obstacles to entry are reasonable. Manufactures which are established previously with popular and important resources of promotion have a benefit when challenging for the downstream retail projection space. Their governance can act as a considerable difficulty for prospective applicants wanting to participate in the huge market. Most of the established toiletries and cosmetics market is of saturated nature and act as a hurdle and have less scope for new business or applicants with new products. The Neoteric Perfume can face huge competition from the companies like Aesop, Art of Man, Australis, David Jones, Evocative Perfumes, Jessica Mauboy, etc. Australias Online Cosmetics and Perfume Sales The industry of Cosmetic and perfumes sales has reflected a growth from last five years, mainly because of the increasing trend of online shopping in Australia. Buyers are getting more comfortable and clever with online shopping; mainly as platforms of online shopping become extra user-friendly and safe. Cosmetics and Perfume are well-matched to the online shopping because they are packed goods that users normally trust and know. The revenue of the Industry is anticipated to rise by a 14.1% over the five years by 2016-2017, to attain $297.4 million. As shopping through the online medium has now commissioned into a range of demographics of the market, its acceptance is increasing, which is predicted to result in the extra passive progress of 5.1% over 2016-2017 (IBIS World, 2017). Primary Target Market The primary target market of Neoteric Perfume in Australia is the women and along with them they will target men and youth. Those women's lie under the age group of 14 to 24 in Australia is considered as the highest payers on perfume. Perfume is now affordable and available at every place from chemist's to online retailers, supermarkets, and discount stores. In Australia, approx. 11 percent of women lie under the age group of 14 and up purchase perfume in an average of four weeks, but from them, women's under 25 covers the highest share. According to the recent findings of Roy Morgan Research reflected that the women of age group 14 to 24, out of them 18 percent of women are those who purchase perfume in an average period of four week and women who lie under the age group of 50 to 64 cover 10 percent. The women percentage from the age groups of 25 to 34, 35 to 49 and 65 plus who bought perfumes of women in given four weeks was equally steady, hovering nearby the 9 percent mark. Along with this, the Neoteric Perfume will be focusing towards men and youth who use perfume while going offices or out of their residence (Inside Retail, 2015). Marketing Mix A set of tactics or actions, that organization uses in order to advertise or promote its product or service in the market is known as Marketing Mix (The Economic Times, 2018). 4ps make a marketing mix strategy- Product, Price, Place, and Promotion. Though, currently, the marketing mix strategy progressively comprises numerous other Ps like People, Packaging, Politics, and Positioning as important mix elements. In other words, the definition of the marketing mix is very simple. It is about placing the correct product or a mixture thereof in the place, at the correct time, and at the correct price. Product An item created for selling and for satisfying the needs of the customers is known as a product (Mars, 2014). The product may be tangible or intangible because it can be in the goods and services forms (Marketing Mix, 2018). The company needs to confirm that they should provide the correct product which can fulfil the demand of the customer, at correct time and place (50MINUTES, 2015). Neoteric Perfume will be having its manufacturing unit in Melbourne, Australia, where they are planning to offer their products to the local people. The perfume is having different types of fragrance options for its customers living within the boundary of Australia. The major target market of Neoteric Perfume women but along with them the company also offers perfumes for men and youth. Place Distribution and Placement of the product is a very vital part of the marketing mix. The company needs to place the product properly in correct place so that the targeted customers can reach there easily and buy the products. This can be done by understanding the target market deeply. If the business will understand the target market from the inside then they will be able to identify the most competitive place and delivery channels that straight talk with the target market (Richter, 2012). The Neoteric Perfume will place its product in the Australia market by opening its own stores and they will also offer its products online with the help of an online shopping website. The company can use both direct and indirect distribution channel. The company will select direct distribution channel for selling the products in its own stores and will select indirect distribution for supplying the products to the office of online shopping website. Price The product's price is mainly the amount of money that a customer is ready to pay in exchange for the product. Price element of the marketing mix is very important. It is considered as a vital component of the marketing plan as it defines company's survival and profit (Kemmer and Boden, 2012). Amending the product's price has a huge influence on the whole marketing strategy as well as significantly disturbing the demand and sales of the product (Codita, 2011). The prices range of the Neoteric Perfume is $99 to $381. This is the affordable price for the customers of Australia and reasonable as compared to other competitors present in the market. Promotion The important element of marketing is a promotion because it helps in increasing the recognition of brand and sales. Promotion is consisting of numerous elements like Advertising, Sales organization, Public Relations and Sales Promotion (Wenderoth, 2009). Neoteric Perfume can opt to advertise its product by Television advertisement, Posters, Pamphlets, and hoardings. Financial Plan Australia Neoteric Perfume Profit Loss Statement Amount ($) 2018 2019 2020 Sales $3,50,000 $6,00,000 $7,50,000 Miscellaneous income $0 $60,000 $75,000 A. Total $3,50,000 $6,60,000 $8,25,000 B. Cost of Sales $2,27,500 $3,90,000 $4,87,500 C. Gross Profit (A-B) $1,22,500 $2,70,000 $3,37,500 D. Operating Expenses Salary $1,00,000 $1,10,000 $1,21,000 Rent $5,000 $5,500 $6,050 Utilities $1,000 $1,100 $1,210 Insurance $300 $330 $363 Depreciation $2,000 $2,200 $2,420 Marketing $5,000 $5,500 $6,050 Maintenance Repairs $500 $550 $605 Other $120 $132 $145 Total $1,13,920 $1,25,312 $1,37,843 Operating profit $8,580 $1,44,688 $1,99,657 Less: Interest $10,000 $12,000 $15,000 Profit before tax -$1,420 $1,32,688 $1,84,657 Less: Tax @ 25% -$426 $39,806 $55,397 Net Profit AT -$994 $92,882 $1,29,260 Balance Sheet Neoteric Perfume Balance Sheet Amount ($) Assets 2018 2019 2020 Current $50,000 $60,000 $72,000 Fixed $1,25,000 $3,00,000 $3,00,000 Other assets $25,000 $1,25,000 $1,25,000 Total Assets $2,00,000 $4,85,000 $4,97,000 Liabilities Non-Current (Borrowings) $1,00,000 $2,00,000 $3,00,000 Total Liabilities $1,00,000 $2,00,000 $3,00,000 Equity $1,00,000 $2,85,000 $1,97,000 Total Liabilities Equity $2,00,000 $4,85,000 $4,97,000 Cash Flow Neoteric Perfume Cash Flow Statement Amount ($) 2018 2019 2020 Cash Flow from Operating Activities Cash sales 1,05,000.00 1,80,000.00 2,25,000.00 Realization from Debtors 1,22,500.00 2,10,000.00 2,62,500.00 Payment to Creditors - - - Expenses paid (1,65,256.00) (3,74,281.60) (4,81,009.76) Total 62,244.00 15,718.40 6,490.24 Cash Flow from Investing Activities Machinery Purchased (1,25,000.00) - - Equipment Purchased (50,000.00) - - Total (1,75,000.00) - - Cash Flow from Financing Activities Equity capital 1,00,000.00 - Borrowings 1,00,000.00 2,00,000.00 3,00,000.00 Total 2,00,000.00 2,00,000.00 3,00,000.00 Cash surplus/ deficit 87,244.00 2,15,718.40 3,06,490.24 Opening balance - 87,244.00 3,02,962.40 Closing balance 87,244.00 3,02,962.40 6,09,452.64 Critical Risks The major risk that a business faces is at the time of entry. It is very difficult for a business to enter in a market where other companies are operating and are giving strong competition to each other. For entering into a market the Neoteric Perfume needs to have a good and unique idea which can make them different from other companies present in the market. Along with this, the company needs to take the permission from the regulations established for safeguarding the customers from the unethical activities of the business. Competition The major risk that a business can face in the market is competition. In the market, there are various businesses that are operating in the market from last many years and gaining profit. They have survived in the market by giving cut-throat competition to other companies and due to that many companies have to wind up. It the case of Neoteric Perfume, it will face huge competition from the competitors already present in the market of Australia. Therefore, management of the perfume need to make strategies and should be ready to face the competition. Conclusion In the conclusion, it can be said that Neoteric Perfume is a good and attractive business idea which will definitely help the company to gain profit in the market of Australia. The above report has explained the new business idea and its offering along with its mission. Further, the report has conducted the market analysis of industry and competition for the Neoteric Perfume which will help them in making the strategies. It has also provided the primary target market along with the marketing mix strategies for the Neoteric Perfume. It has projected the financial plan of the perfume which includes Profit and Loss account, Balance sheet and Cash flow statement and in the end, the report has explained some critical risk that perfume brand can face in the market. 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