The main goal of industrial investment: benefit from resources or meet demand.
Additional aims: strengthen market position and secure resource supply.
Importance of market analysis for:
Determining investment scope.
Establishing production programs.
Identifying required technology and location.
Feasibility studies involve iterative processes to:
Understand product quantities and qualities.
Explore alternatives based on:
Economic size.
Input availability.
Constraints.
Key components include:
Marketing Research.
Project Strategy Outline.
Marketing Concept Outline.
Assessment of Marketing Costs and Revenues.
Marketing as a market-oriented management philosophy.
Must integrate design of marketing concept based on research.
Four key elements of Marketing:
Business Philosophy: Focusing on consumer needs.
Marketing Research: Essential for informed decisions.
Marketing Instruments: Tools to implement strategies.
Marketing Plan and Budget: Execution strategy and financial outline.
Marketing shifts focus from products to consumer needs.
Requires all decision-makers to align with market orientation.
Systematic research is essential for market-oriented decisions.
Enables development of marketing strategies based on assessed:
Potential market.
Available resources.
Analysis should also consider supply markets for project inputs.
Successful marketing strategies depend on appropriate use of instruments.
Planning essential to influence and shape the market effectively.
Action planning based on marketing research findings.
Marketing budget summarizes necessary costs for evaluation and control.
Concise assessment of market and environment.
Analyze market structure, competition, and distribution methods.
Evaluate both external environments and internal resources.
Start with demand and market analysis:
Identify and describe target market.
Conduct customer analysis and market segmentation.
Sales channels connect producers with end-users via:
Wholesalers,
Retailers,
Direct sales to consumers.
Essential to assess intentions and positions of competitors.
Focus on key individual competitors or similar groups.
Research should include the industrial subsector and broader socio-economic factors.
Corporate analysis applies to existing enterprises:
Relevant for expansion or modernization projects.
Projections of future developments are critical for:
Scope and resource planning of the project.
A project strategy identifies key strategic issues.
Importance of analyzing project significance varies per project.
Identifying relevant market areas and competitive positions is essential.
Example: International competition in consumer goods.
Define long-term market position and target shares for investment projects.
Profitability usually correlates with market share.
Focus on achieving lower costs than competitors to secure market position.
Requires large market share and cost advantages.
Key assets include:
High investment capacity.
Efficiency in processes and operations.
Aims to create unique offerings that bind customers to the brand.
Protects against competition by reducing price sensitivity.
Focus on a limited market segment or product line improves efficiency.
Skills derived from focusing on specific strategic aims.
Market penetration strategy: Enhance market efforts with existing products.
Market development strategy: Expanding into new areas/customers with existing products.
Product development strategy: Innovate to serve future customer needs.
Diversification: Entering new markets with new products.
Competition Strategy: Focus on winning market shares from rivals.
Market Expansion Strategy: Innovate to create or enlarge market volume.
Focus on target markets and customer needs through coordinated efforts.
Incorporates strategic long-term planning and operative management of marketing tools.
Identify target groups for products to shape market relationships.
Important factors:
Market structure and volume,
Consumer behavior,
Competition and prices.
Set clear goals for market reach, sales, and customer engagement:
Sales targets.
Brand awareness.
Customer satisfaction metrics.
Establish clear plans to engage target customers and achieve business goals through:
Competitive positioning,
Market expansion tactics.
The marketing mix should align with consumer needs:
Product policy.
Pricing strategy.
Promotional activities.
Distribution channels.
Involves selecting strategies such as advertising and promotions to meet business goals.
Marketing costs include:
Direct marketing costs tied to specific products,
Indirect costs related to overall marketing strategies.
Sales revenues represent total earnings from products before expenses; calculated using units sold x price per unit.
Direct Costs: Specific to a product or service.
Indirect Costs: General marketing expenses, including overhead.
Estimating future sales based on historical data, market trends, and production capacity.
Plant capacity and technology need to align with sales targets.
Forecast duration varies for different product types:
Long-term (15-20 years for machinery).
Short-term (5-10 years for short-life products).
A detailed plan aligning production targets with sales forecasts.
Ensures proper resource and technology management to meet market demand effectively.
The importance of comprehensive market analysis and strategic marketing planning for successful investment projects.