Activity 1

Directions: Out of the basic components of an economic market, choose one and explain it.

 

Basic component chosen: ______________________________

 

________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
 

The basic components of an economic market which are: 

1. Market Identification

 2. Business Cycle

 3. Product Niche

 4. Growth Potential

 5. Competition

 

Activity 2

Directions: With your identified products (Products 1 and 2), analyze each with its basic components of an economic market.

 

In the previous lesson the 

Product 1: Beauty products

Product 2: Textile  products

 

Product 1: _______________________________

 

MARKET IDENTIFICATION

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BUSINESS CYCLE

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PRODUCT NICHE

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GROWTH POTENTIAL

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COMPETITION

________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

 

IS THIS PRODUCT VIABLE OR NOT? _________________

 

RECOMMENDATION? (SHALL YOU PURSUE PRODUCING THIS PRODUCT TO THE MARKET? WHY? WHY NOT?

________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

 

Product 2: _______________________________

 

MARKET IDENTIFICATION

________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

 

BUSINESS CYCLE

________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

 

PRODUCT NICHE

________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

 

GROWTH POTENTIAL

________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

 

COMPETITION

________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

 

IS THIS PRODUCT VIABLE OR NOT? _________________

 

RECOMMENDATION? (SHALL YOU PURSUE PRODUCING THIS PRODUCT TO THE MARKET? WHY? WHY NOT?

________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

Textile and beauty products analysis

Step-by-step explanation

Basic component chosen:

Market identification

Market identification entails identifying why a client would want to buy from you, segmenting the total market based on shared qualities, and selecting the most practicable, profitable market segment or segments as the target market for your marketing mix are all part of target market identification. Target Market Identification's Advantages
The following are some of the benefits of choosing a target market:
Product, price, and distribution channels may all be tailored to better fit the wants and desires of your clients if you know who they are.
Assists you in selecting the appropriate marketing channels: With a target market in mind, you may promote your products or services to customers where they are, whether it's through social media or placing ads in a neighborhood where your target market frequents.
Makes better use of limited time, money, and resources: Promoting to a smaller target market rather than the entire market allows you to focus your time and resources more effectively on the individuals who matter. To identify the target market, the following steps are conducted: 
Examine the following features of the product or service: Make a list of the qualities and advantages that your product or service offers. A color-safe stain-removal compound, for example, might be found in a laundry detergent, with the benefit of cleaner clothing that preserve their vivid color. Determine why clients would choose to buy from you: Determine the main selling point that provides clients a reason to acquire your product or service based on the features and benefits you listed. Determine the most important segmentation dimensions: Determine the dimensions along which you want to segment or break down the bigger overall market into smaller target markets. Make a list of the primary segmentation bases and decide which are applicable to the bulk of your potential clients. Geographic (customers are targeted locally, statewide, regionally, or nationally), demographic (customers are targeted by their age, gender, race, income, and education level, for example), psychographic (identification based on attitudes, beliefs, emotions, lifestyle, and hobbies), and behavioral (customers are targeted by their age, gender, race, income, and education level, for example) are all major segmentation bases (identification based on various patterns such as purchasing occasion and loyalty status). Segment the market using the following criteria: Define the target market by identifying one or more specific categories. For example, a men's and women's shoe retailer may select to target men who enjoy running in their performance running shoe campaign and ladies who play tennis in their tennis shoe campaign based on demographic features of gender and psychographic qualities of hobbies. Select the most profitable segments for your target market: Evaluate your firm's financial resources and the profitability of each identified market segment, as well as which segments your competitors service and how established you are in the market, to determine whether it is worthwhile to pursue each identified market segment. If you can't afford to promote to all of the identified segments (or it wouldn't be profitable), there's too much competition for a particular segment, or you're trying to break into a new market, you might wish to narrow your target market to just one.1

MARKET IDENTIFICATION
Beauty products encompasses a vast range of products, ranging from skincare to cosmetics and beauty. Even though some guys are interested in cosmetics, these are commodities that primarily appeal to women. Women are more likely to acquire beauty products than men.

As a result, a typical cosmetics business dealing in make-up goods and other skincare products will largely target women aged 18 and up as its target market.

BUSINESS CYCLE
The marketing objective
The marketing brief is crucial when establishing a new product because it serves as the beginning point for all projects. The more specific it is, the more straightforward it will be to use. The product and packaging requirements, such as the product category, desired function, color, odor, texture, and size, are all included in the marketing brief. It can be shared with other departments to begin product development once it has been approved. It will be used by the R&D team to develop the formula and product prototype. The packaging team chooses the product pack based on the brief's criteria. The first stage is crucial; it will decide the success of the entire procedure and product.
1.During the expansion period, economic activity such as production, employment, output, wages, profits, product demand and supply, and sales all increase.
2.The economy then reaches peak, where the maximum limit of growth is attained and economic indicators do not grow further. This stage marks the reversal in trend of economic growth.
3. During a recession, demand for beauty products and services begins to rapidly decline. Prices are falling, and economic indices such as income, output, and salaries are starting to plummet
4. In the depression phase, the economy's growth continues to diminish, and unemployment is on the rise.
5.In the trough phase, demand and supply of beauty products and services, as well as their prices, reach their lowest levels. The national income and spending have both been depleted to a large extent.
6. The economy begins to recover from its negative growth rate during the recovery phase after a turnaround from the bottom. Demand and supply are increasing, and people are more optimistic about investing and finding work.

PRODUCT NICHE
The product niche is production of environmentally friendly and natural beauty products that contains 100% natural ingredients. The company can adapt the productions to ecologically concerned consumers. The beauty products should be unique in the materials that are used in manufacturing. The materials are supposed to be environmental friendly.

GROWTH POTENTIAL
The industry is powerful globally, and it is only getting stronger.
The size of beauty industry is expected to reach $716 billion by 2025, up from $483 billion in 2020 to $511 billion in 2021, and with an annual compounded growth rate of 4.75 percent globally. By 2027, it will be worth $784.6 billion.
Rapid growth through digital media, as well as the enticement of more clients prepared to pay more for higher quality.
As emerging markets gain purchasing power and become more globalized, multinational corporations may see opportunities to enter provided they bring higher-quality items than those offered domestically. With the increasing technological development, the growth potential of beauty products is high, this is because of availability of various social media platforms where most beauty products can be advertised and purchased. Beauty is a common trend in today's world and most people are concerned on their appearance and this is really good for the business.

COMPETITION
Over the years, the beauty product business has continued to grow at a rapid pace, and it has emerged as one of the industries with the greatest potential for future expansion and growth. Female and male consumers are expected to expand globally, according to the study. The beauty product industry has seen fast growth due to greater awareness of high-quality beauty products, treatments, and glooming. Increased global competitiveness has resulted from an increase in the demand for beauty product items. To gain a competitive advantage, the beauty product industry is becoming increasingly imaginative and creative in bringing new, high-quality items to the market. In order to stay competitive, the beauty product industry must modernize their products and integrate technology. The beauty product business is growing competitive over the years due to new innovations as well as due to demand of natural beauty products.

IS THIS PRODUCT VIABLE OR NOT? _the product is viable since it has a long term value and the beauty products are profitable. Most people are in great demand of beauty products and due to this there has been an increasing demand of beauty products worldwide.

RECOMMENDATION? (SHALL YOU PURSUE PRODUCING THIS PRODUCT TO THE MARKET? WHY? WHY NOT?
I shall pursue producing this product to the market mainly because of the increasing demand of the beauty products in the market. We are in a generation why beauty is a major concern to most people both male and female. Most people are in great demand of beauty products and due to this there has been an increasing demand of beauty products worldwide.

Product 2: Textile product

MARKET IDENTIFICATION

Customers are not all the same. A target market is a certain type of customer that a business has identified as being interested in its product or service. A niche can be represented by a target market. The firm, for example, can customize its design and manufacturing outputs to the home textiles market, which is a sizable market segment. The company can adapt the productions to ecologically concerned consumers. The firm can then advertise products to both broad merchants in the domestic textile market and specialty environmental products retailers in the market for specialist environmental products.

BUSINESS CYCLE
The marketing objective
The marketing brief is crucial when establishing a new product because it serves as the beginning point for all projects. The more specific it is, the more straightforward it will be to use. The product and packaging requirements, such as the product category, desired function, color, odor, texture, and size, are all included in the marketing brief. It can be shared with other departments to begin product development once it has been approved. It will be used by the R&D team to develop the formula and product prototype. The packaging team chooses the product pack based on the brief's criteria. The first stage is crucial; it will decide the success of the entire procedure and product.
6.During the expansion period, economic activity such as production, employment, output, wages, profits, product demand and supply, and sales all increase.
7.The economy then reaches peak, where the maximum limit of growth is attained and economic indicators do not grow further. This stage marks the reversal in trend of economic growth.
8. During a recession, demand for textile products and services begins to rapidly decline. Prices are falling, and economic indices such as income, output, and salaries are starting to plummet
9. In the depression phase, the economy's growth continues to diminish, and unemployment is on the rise.
10.In the trough phase, demand and supply of textile products and services, as well as their prices, reach their lowest levels. The national income and spending have both been depleted to a large extent.
6. The economy begins to recover from its negative growth rate during the recovery phase after a turnaround from the bottom. Demand and supply are increasing, and people are more optimistic about investing and finding work.

PRODUCT NICHE
The company can adapt the productions to ecologically concerned consumers. The firm can then advertise products to both broad merchants in the domestic textile market and specialty environmental products retailers in the market for specialist environmental products. The textile products should be unique in the materials that are used in manufacturing. The materials are supposed to be environmental friendly.

GROWTH POTENTIAL

The textile industry is a rapidly expanding market, with China, the European Union, the United States, and India as major rivals. China is the largest producer and exporter of both raw textiles and finished clothes in the world. The US is the world's largest producer and exporter of raw cotton, as well as the world's largest purchaser of raw textiles and clothing. The European Union's textile industry is led by Germany, Spain, France, Italy, and Portugal, with a combined value of more than 1/5th of the global textile sector. India is the world's third-largest textile manufacturing industry, accounting for more than 6% of worldwide textile production. The textile sector is benefiting from increased industrialization in both developed and developing countries, as well as evolving technologies and have advanced installations capable of producing high-efficiency fabrics. These variables helped the textile sector generate greater revenue.
 

COMPETITION
According to an industry expert, the main difficulty facing textile sector is competition from other low-cost neighboring countries, which attract more business from the world market due to reduced manufacturing costs, ease of doing business, and better trading channels.
"The textile sector has the most competition from low-cost countries such as Bangladesh, Vietnam, Indonesia, and Pakistan. These countries have given their textile industries a boost in recent years and have been able to establish new capabilities using cutting-edge technologies. These countries have a competitive or at-par cost of labor, power, and interest rates, as well as a competitive or at-par cost of capital. Many of these countries have been provided preferential import conditions in countries such as the United States and the European Union, ensuring a smooth trading route.  Increasing domestic demand within the country is another key problem for the industry. It may be difficult for textile products to rely on overseas markets. Promoting the usage of synthetic textiles is also a huge difficulty. Developing a cluster approach and innovation, GST adoption, and a competitive textile infrastructure are solutions for the increasing competition.

IS THIS PRODUCT VIABLE OR NOT? 
This product is viable since it has a long term value and the textile products are profitable. Most people are in great demand of textile products and due to this there has been an increasing demand of textile products worldwide.

RECOMMENDATION? (SHALL YOU PURSUE PRODUCING THIS PRODUCT TO THE MARKET? WHY? WHY NOT?

I shall pursue producing this product to the market mainly because of the increasing demand of the textile products in the market. Most people are in great demand of textile products and due to this there has been an increasing demand of beauty products worldwide. Fashion and textile industry, according to the report, contributes more than $27.2 billion to most countries' GDP and generates $7.2 billion in exports each year. It employs around 489,000 individuals, with women accounting for 77% of the workforce.