1. Market Analysis
Session # 05 (Oct, 11th
, 2017)
Presented by:
Prof. Akhlas Ahmed
IHM – Dow University of Health Sciences

2. QUIZ # 01
Q1. How will you compare
product life cycle with industry
life cycle?
Session # 05 (Oct, 11th
, 2017)

3. CLASS PRESENTATIONS
Session # 05 (Oct, 11th
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4. OVERVIEW
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5. Today’s topics:
Dimensions of Market
Forecasting Methods
Market profitability
Key Success Factors
Session # 05 (Oct, 11th
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 Forecasting Methods:

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 Market Profitability:
• Competitors
• Potential competitors
• Substitute products
• Customer power
• Supplier power
 COST STRUCTURE
 DISTRIBUTION SYSTEMS

10. Session # 05 (Oct, 11th
, 2017)
Key Success Factors:
•Strategic necessities—if these are absent then they will create a
substantial weakness.
•Strategic strengths—those at which the firm excels and are assets
or skills that are superior to those of the competition. They can
provide a competitive advantage.
RISKS IN HIGH GROWTH MARKETS

11. CASE STUDIES: Cometex…
Door-to-door selling is something which always seems to have been with us. The tinkers of the Middle Ages
still have their counterparts today. In modern times, door-to-door selling seems to have come in and out of
fashion. In the 1950s, for example, even vacuum cleaners were sold in this way. More usual has been the bric-
à-brac type of salesman carrying a range of household utensils in an often large case or encyclopedia salesmen
with their well rehearsed sales chatter. One of the most popular forms of door-to-door selling has been the
Avon representative selling a variety of beauty aids to the appearance-conscious housewife.
Cometex, the door-to-door home cleaning company, is planning an expansion strategy into emerging markets,
as the firm has suffered drops in sales in the home UK market. The firm said it would invest £5m in expanded
joint ventures with a door-to-door cosmetics group. The managing director said sales from the joint ventures
could reach ‘several hundred million pounds’ in ten years. Cometex is launching in five East European
countries beginning with Hungary, and three Asian countries including Japan. The overseas expansion follows
joint ventures with the same cosmetic group in Latin America during the past two years. South American
turnover is expected to rise sharply next year, with this year’s launch in Brazil. Cometex has also begun local
manufacturing in Mexico, where margins are 10 per cent higher than in western Europe. In the UK, however,
Cometex suffered from recruitment problems which affected its network of door-to-door distributors. The
company blamed low levels of unemployment, although it added that its customers were spending on average
6 per cent more than last year. Cometex has tremendous growth prospects with the cosmetic group’s
management in emerging markets which have yet to show through in its results.
Questions
1 Is door-to-door selling in mature markets and developed economies a dying craft? Why or why not?
2 Do you consider that the strategy being followed by Cometex is the right one? Why or why not?
3 How might Cometex undertake market analysis for its products? Be specific.
Session # 05 (Oct, 11th
, 2017)

12. Q/A Session