Answer to Question #193172 in Management for sushant

Question

 Unique Industries is contemplating to enter the men’s top end shirts category. The company already has a brand “CLINGERS” in the middle segment (₹350-700). The brand is very popular amongst the target audience. Having got the volumes, now wants to play the value game and enter the top end (₹700+) category. He knows there are some formidable brands like Farow etc. that will make life extremely difficult for Unique Industries. But there are certain advantages which Unique Industries enjoys. It has one of the best retail networks in the country. They have their own factory, which ensures regular quality supply. They are the pioneers of branded shirts in India.He has decided to allocate ₹10 crores for sales promotion and advertising budget. Unique Industries is simultaneously entering the readymade trousers market and shoes market. A). Which factors you think needs to be studied before making such entry in the market?

Answer 1

Answer

A) Factors to be considered before making the market entry are explained below;

     i.     Knowledge or Expertise- Research on different and better methods to beat the competitors.

    ii.     Market or Demand- He needs to contemplate demand and market size for the product. This will include the growth potential and profit margins to expect.

    iii.   Start-up Costs- He will have to assess the total cost required to set up and run your business successfully.

    iv.   Capital and Finance- This generally includes the capital that you can introduce from your savings and the funds you can borrow.

    v.    Competition- He needs to know his competitors and what they are doing to survive in the market for a long.