Saks Gloweli Business Tip – Understand Your Market
During landscape or market analysis when introducing a new product or entering a new market do not forget to consider non traditional business factors that will effect your business. In China for the toy industry, the product need not have a very long user life because of the one child policy and because Chinese don’t pass down toys to relatives and friends as it is considered loss of face. Ford motor company when entering India had to be price sensitive to the local market and had to significantly bring down the price. Since rebuilding a model for a nascent market is an expensive proposition, they decided cut out features and luxury options to match the prices in their sector. One of the decisions was to have only the front seats with automatic windows and manual in the rear seats. This decision backfired when they learned that customers who could afford to buy a foreign brand like Ford could afford a driver and always sat in the back seat. Ford had delivered a luxury car that gave the chauffeur the automatic windows and the owner manual windows.
By Sid Mewara, Managing Director, Saks Gloweli Consulting Saks Gloweli Consulting is a management strategy consulting firm based out of Shenzhen and Hong Kong that helps clients grow their business www.saks-gloweli.com