Market Success and Entry Strategy Research Paper

Market Success and Entry Strategy - Research Paper Example The first and foremost step is the analysis of the market size and demand. The market according to the various segments are divided and categorized. For example, for an automobile market, the division of the market can be as according to the taste, demand and preference of the consumers. The consumers in one group of consumers are different from the other group and each represents a separate entity. The characteristics or the dimensions on which a market size is determined are geographic, cultural, social, economic and psychological factors. The market potential of a new consumer product is tested. The acceptance level of the product would decide the money that product will make in the market. There are various factors, which affect segmentation in a consumer market. Geographic is one such factor, where a country is segmented on basis region, city, urban, rural and climate. Demographically market is segmented on the basis of age, family size, gender, household income, life stage, occ upation, education, religion, race, generation and social class. Further, segmentation can be done on the basis of lifestyle and personality traits. On an individual level market can be segmented on the basis of attitude, belief and perception of products, product awareness and usage pattern. Market success analysis In any country the buying or the purchasing power is depends mostly on the infrastructure, currency, quality of the product and employment level. In mostly all agricultural based society, the production of a commodity, information to other available resources is very less. The resources like the labors, professionals or the working class has a major impact on the success of any foreign company in any country. In India the distribution of labor forces is unequal. Most of the professionals reside in the urban areas. Hangout Plaza is a fast food chain of restaurant. It offers mostly burgers, chicken pizzas, which will not be accepted by the rural population. In India, the c ost of labor is low. In order for the company to be able to market their product smoothly they should employ the local population. The skilled, unskilled labors can be deployed to gain the confidence of the locals and to get the work done at a cheaper rate. The regulations and the duties imposed by the government also play a major part in shaping the business of a company in the international market. The Government's red tape policies are often a hindrance for any foreign company. In India, the government is quite liberal in allowing the foreign companies to enter. India has many U.S. base hotels which are operating since a long time (FAO, 1997).    The political, economic and social factor poses a serious problem risk for any new company in the global market. For Hangout Plaza, there are many competition threats from many other fast food chains of hotels. Since there is no clear-cut strategy to decide and ascertain which strategy can be useful for assessing the competition threat s, the need to understand and calculate the same becomes more tedious and tough.  Ã‚