Opportunity AnalysisIn the marketing opportunity report we have shown the opening, whether the wooden furniture manufacturing unit can fit the market of the Pakistani International and Domestic market.
In this section we will analysis the market in further details, and their likely fit with the organisationÃÂs goals and capabilities.
Penetrating the international and domestic market will be excellent for the organization.
Domestic MarketIn the Pakistani Society people give furniture as dowry, therefore the demands increase during spring and winter seasons due to weddings.
(The graph above is forecast of the marketing and financial department).
As shown in the graph above, during the 2 seasons of the year, the sales increase constantly, then drops during summer seasons. Competition will lie during winter and spring time, and the prices will double, so concentrating on quality and marketing is very essential in these timings.
Therefore, placing our products between the line of Penetration and Premium, will allow us to achieve great sales in the domestic market.
However, according to National Housing Policy 2001, the construction of houses will raise quite rapidly. Hence, the sales of each season will be dramatic.
International MarketThe Pakistani exports are creasing rapidly in the international market. PakistaniÃÂs exports of wooden furniture have increased by 34.33 percent in year 2002-2003.
As shown above, the Pakistani furniture manufacturing is increasing rapidly, mostly in the United Kingdom, United Arab Emirates and USA. Entering the international market will be a great advantage for our company, however focusing on our domestic service is very important.
In the year of 2000-01 the Pakistani export has shown a huge growth, which has grown 29.50%. Entering the Pakistani market during winter timings will be a great benefit for the manufacturing company, and the international and domestic market will show a substantially margin profit for the organization.
Evaluation on Current Business and CustomerExpanding the business will be a great interest to our organization, as our manufacturing unit expands there will be some change in our business and customer base.
As the wooden furniture manufacturing unit expands so does everything else in the company, externally and internally.
Hence, the net profit will increase as we expand, customers will frequently come to purchase our new products in yearly bases, and give a word of mouth for the rest of the people they know, and so on.
Whilst the organization increases so will our reputation so our showroom, would might have to expand as we go along, to keep our organization more aware for the customers.
Also during the years we might have some competition, which might lead to an issue, however chances of that happening is not quite high.
Below are the projects return;Net Present Value is at 18.5%; 1,800,496 Rs.
Internal Rate of Return is 44%; which is 2949238.08 Rs. And will be paid within 3.25 yearsBibliographieshttp://www.quickmba.com/marketing/