Market analysis, market segmentation analysis and break even analysis Case Study

Market analysis, market segmentation analysis and break even analysis - Case Study Example The goals for the market analysis are: Demand The product depends on the income of the consumers. From the recent past, I can note that there has been a high demand for the product and thus need to increase the productivity. This will enable me compete for the some market space with my competitors so that I stand out to win the trust of my customers. At his very point, the marketing concept applies effectively because when I respond to demand of my customers, I am in a position to establish a positive relationship with them. It is the only way I am going to make long-term profits from the sales of my stock. Audience of the product Knowing the audience of my product will enable me make effective marketing segmentation. By this, I will be in a position to channel the right products to the right consumers. As Mr. Millar, I will segment my market into four parts: new residential, modernization, replacement and light commercial segment. This is because my company deals with different type s of customers. As Millar, I will analyze all the segments to identify their needs. The new residential segment accounts for 55% of all sales. Unfortunately, I realize that this segment is very competitive and the sales can only be effective if they are done simultaneously. These are some of the problems that the Scotts Company faces. The light commercial segment will include restaurants, schools and churches. This is because they are good uses of air conditioners. As for the modernization segment, the good news is that it outshines the new residential segment. This is the where the future of the company lies and thus the appropriate segment that can be used to capitalize on the investments. Price models I know that every company has its own way of determining it prices. It all depends on the model in use. As Millar, the best price model is the Chinese feint trick. With this, the company may announce a price increment in a trade press but delay the implementation. The Scott’s company has the problem of implementing the prices immediately thus will lose its competitive advantage in the market. However, using alternatives will save the company great loses. Basing my argument on the market definition and dynamics concept, I recommend that my market share be made clear so that when am making pricing issues, I do not base on what others are offering. I know that Ben Millar is at crossroads because the company has failed to identify its market share. It is currently missing opportunities because it looks at its market narrowly. I see at tough time for the Scott’s company in future because of the competition that is currently prevailing in the market. In this case, the new residential segment will exist since very little consideration is given. What-If Scenario 1 Sales $112,000,000.00 FC Manufacturing $20,363,636.36 *Fixed Sales Force $3,000,000.00 *Fixed Communications $1,300,000.00 *Fixed R&D $1,200,000.00 *Fixed Materials $61,600,000.00 *Lowered to 5 5% Bottom Line $24,536,363.64 Return on Sales 21.9% Doubling of cumulative production vastly increases profitability The above table reveals that a volume of $ 61,600,000 will enable the company realize its profitability and that the sales force will give the company a good opportunity of ensuring that the sales are very high. Identifying paths to reach customer segments These paths will help my