Answer to Question #194104 in Marketing for ABC

Question

a.      Do you think the brand name “Clingers Gold” is right for the top end segment? Justify your answer.

b.     Which factors you think needs to be studied before making such entry in the market?

Answer 1

Answer

a)      The present brand name is the finest to use because many people already know its existence; hence it will be easier for it to grow since the new members will add to the current customers.

b)     Before making such an entry into the market, the following factors should be considered;

      (I)  Knowledge or Expertise-Research on different and better methods to beat the competitors.

     (ii)   Market or Demand- He needs to consider demand and market size for the product. This would include the growth potential and profit margins to expect.

   (iii)    Start-up Costs- He will have to access the total cost that is required to set up and run the business successfully.

   (iv)    Capital and finance- This generally includes the capital that you can introduce from your savings as well as the funds that you can borrow.

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