Marketing Presentation V2


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Marketing Presentation V2

  1. 1. Market Analysis Copyright © Ahmed Meyaki
  2. 2. Table of contents <ul><li>Introduction </li></ul><ul><li>Situation analysis </li></ul><ul><li>Market selection </li></ul><ul><li>Market entry </li></ul><ul><li>Marketing management </li></ul><ul><li>Conclusion </li></ul>
  3. 3. Table of contents <ul><li>Introduction </li></ul><ul><li>Situation analysis </li></ul><ul><li>Market selection </li></ul><ul><li>Market entry </li></ul><ul><li>Marketing management </li></ul><ul><li>Conclusion </li></ul>
  4. 4. Introduction <ul><li>Case company: Salpomec Oy </li></ul><ul><ul><li>Established in 1985 </li></ul></ul><ul><ul><li>Based in Hollola, Finland </li></ul></ul><ul><ul><li>Logistics solutions provider to garment industry </li></ul></ul><ul><ul><li>20 employees </li></ul></ul><ul><ul><li>85% of turnover from exports </li></ul></ul><ul><ul><li>Main product: Magic tube </li></ul></ul><ul><li>Internationalisation drive </li></ul><ul><li>Experience in Morocco and Tunisia </li></ul>
  5. 5. Definition of objectives and goals <ul><li>Market potential & direction </li></ul><ul><li>Sustainability </li></ul><ul><li>Country selection </li></ul><ul><li>Market entry strategy </li></ul><ul><li>Strategic positioning </li></ul>
  6. 6. Table of contents <ul><li>Introduction </li></ul><ul><li>Situation analysis </li></ul><ul><li>Market selection </li></ul><ul><li>Market entry </li></ul><ul><li>Marketing management </li></ul><ul><li>Conclusion </li></ul>
  7. 7. Situation analysis 1/2 <ul><li>Salpomec </li></ul><ul><ul><li>Original inventor of trolley-less garment handling systems </li></ul></ul><ul><ul><li>Worldwide success </li></ul></ul><ul><ul><li>Products are highly versatile, cost effective, high quality and low maintenance need </li></ul></ul>
  8. 8. Situation analysis 2/2 <ul><li>Trends </li></ul><ul><ul><li>Ongoing massive restructuring of industry </li></ul></ul><ul><ul><ul><li>Investment in new and replacement technology </li></ul></ul></ul><ul><ul><li>Global garment industry </li></ul></ul><ul><ul><ul><li>Focus on low cost countries (AGOA) </li></ul></ul></ul><ul><ul><ul><li>Demand for warehousing and material handling systems </li></ul></ul></ul><ul><ul><li>WTO rules </li></ul></ul><ul><ul><li>China factor </li></ul></ul><ul><li>Barriers </li></ul><ul><ul><li>Long established, tough and bigger competitors </li></ul></ul><ul><li>Ethics </li></ul><ul><ul><li>Securing contracts (bribery & kickbacks) </li></ul></ul><ul><ul><li>Sweat shops </li></ul></ul><ul><ul><li>Child labour </li></ul></ul>
  9. 9. Table of contents <ul><li>Introduction </li></ul><ul><li>Situation analysis </li></ul><ul><li>Market selection </li></ul><ul><li>Market entry </li></ul><ul><li>Marketing management </li></ul><ul><li>Conclusion </li></ul>
  10. 10. Tunisia, Morocco, Mauritius, Egypt, Madagascar, South Africa, Kenya, Swaziland, Botswana, Malawi, Zimbabwe, Ghana, Nigeria, Cameroon, Mosambique, Tanzania, Lesotho Tunisia, Morocco, Mauritius, Botswana, Egypt, Madagascar, South Africa, Lesotho Tunisia, Morocco, Mauritius, Egypt, Madagascar, South Africa Tunisia 1 st filter: established garment industry 2 nd filter: GDP per capita, size of population, proximity to major market, strategic alliances, economical and political 3 rd filter: very well established industry, holistic approach of government, location, market volume, industrial technology Filtering
  11. 11. Risk evaluation <ul><li>Botswana A2 </li></ul><ul><li>Mauritius A3 </li></ul><ul><li>South Africa A3 </li></ul><ul><li>Tunisia A4 </li></ul><ul><li>Morocco A4 </li></ul><ul><li>Egypt B </li></ul><ul><li>Lesotho B </li></ul><ul><li>Madagascar C </li></ul>Source:
  12. 12. Market attractiveness Market attractiveness high low high low Risks and entry barriers Tunisia Mauritius Morocco 10 5 0 0 5 10 Egypt South Africa Madagascar Lesotho Botswana
  13. 13. Defined clusters <ul><li>North Africa </li></ul><ul><ul><li>Tunisia , Morocco & Egypt </li></ul></ul><ul><li>Sub Saharan African </li></ul><ul><ul><li>Mauritius, Madagascar & South Africa </li></ul></ul>
  14. 14. Tunisia: Industrial overview Source:
  15. 15. Tunisian garment industry: Evolution of production and exports Source:
  16. 16. Tunisian garment industry: Major clients and enterprises Source:
  17. 17. Tunisia: Government commitment <ul><li>Employing 50% of the manufacturing workforce </li></ul><ul><li>Training centres established by government </li></ul><ul><li>Red carpet policy for foreign investors </li></ul><ul><li>Subsidies for company training programs </li></ul><ul><li>Favourable policy towards imports of machinery </li></ul><ul><li>Freight and transport upgrades </li></ul>
  18. 18. Table of contents <ul><li>Introduction </li></ul><ul><li>Situation analysis </li></ul><ul><li>Market selection </li></ul><ul><li>Market entry </li></ul><ul><li>Marketing management </li></ul><ul><li>Conclusion </li></ul>
  19. 19. Understanding competitors Gerber Established: 1948 Employees: 2022 (2003) Size: 517MUSD Country of origin: USA Subsidiaries: Europe, China, USA Reach: Global Schönenberger Established: 1977 Turnover 2004: 10 Mio Export rate: 50-60% No. of employees ww: 60 No of systems installed ww:      1700 Subsidiaries in:  Spain and USA, in addition 12 agencies worldwide Reach: Global <ul><li>Eton </li></ul><ul><ul><li>Established: 1960s </li></ul></ul><ul><ul><li>Employees: 25 </li></ul></ul><ul><ul><li>Country of origin: Sweden </li></ul></ul><ul><ul><li>Reach: Eton system is in use in over 60 countries worldwide. </li></ul></ul><ul><li>Duerkopp </li></ul><ul><ul><li>Established: 1867 </li></ul></ul><ul><ul><li>Size: 30 MEUR </li></ul></ul><ul><ul><li>Location: Bielefeld, Germany </li></ul></ul><ul><ul><li>Reach: Global </li></ul></ul><ul><ul><li>No of employees: 160 </li></ul></ul>
  20. 20. SWOT Analysis of Salpomec Opportunities Strengths Threats Weaknesses - An innovator with time tested solutions for the industry can take an advantage of the growing demand for machinery and equipment opportunities in Africa - As a small company with limited product offering, its competitiveness against bigger competitors is limited - As an innovator with a deep understanding of the market and strong relations with past customers, reinforced by its Scandinavian mentality, it has the necessary strengths to gain acceptability and fight against competition <ul><li>Too small company to fight against strong competitors and the elimination of quotas </li></ul><ul><li>Political instability, economic downturns, ethical and cultural differences can cause problems as they lack experience in the target market </li></ul>
  21. 21. Resources and markets Market attractiveness high low bad good Supplier position in the market Tunisia Mauritius Morocco
  22. 22. Product rating (Tunisia) high low low high Sales potential Contribution margin
  23. 23. Entry mode <ul><li>Selected entry mode: Agency </li></ul><ul><li>Reasoning </li></ul><ul><ul><li>Cost effective </li></ul></ul><ul><ul><li>Low risk </li></ul></ul><ul><ul><li>Knowledge of the African culture, language, ethics, and business behaviour </li></ul></ul><ul><ul><li>African business culture is based on cultures of colonial masters </li></ul></ul><ul><ul><li>Having connections </li></ul></ul><ul><ul><li>Knowledge of the product, country and industry </li></ul></ul>
  24. 24. Table of contents <ul><li>Introduction </li></ul><ul><li>Situation analysis </li></ul><ul><li>Market selection </li></ul><ul><li>Market entry </li></ul><ul><li>Marketing management </li></ul><ul><li>Conclusion </li></ul>
  25. 25. Marketing management <ul><li>Agency </li></ul><ul><li>Making contacts and offers </li></ul><ul><ul><li>Cultural sensitivity </li></ul></ul><ul><ul><li>Field trip </li></ul></ul><ul><ul><li>Lobbying </li></ul></ul><ul><li>Visibility </li></ul><ul><ul><li>Fairs (eg. Egyptex, Saatex) </li></ul></ul><ul><ul><li>Magazines (eg. Africa Textile) </li></ul></ul><ul><li>Benchmarking competitors </li></ul><ul><li>Logistics </li></ul><ul><li>After sales services and consulting </li></ul>
  26. 26. Table of Contents <ul><li>Introduction </li></ul><ul><li>Situation analysis </li></ul><ul><li>Market selection </li></ul><ul><li>Market entry </li></ul><ul><li>Marketing management </li></ul><ul><li>Conclusion </li></ul>
  27. 27. Conclusion <ul><li>Market exists </li></ul><ul><li>Salpomec has the right product </li></ul><ul><li>Competition is keen, but the opportunity to succeed is huge </li></ul><ul><li>With a good partnership with the agent, Salpomec can enter the market and expand its reach to other countries within the continent </li></ul>Quitters loose!