marketing analysis

Read the Business concept and industry analysis on the document I uploaded. then do the marketing analysis, please read the request carefuuly, answer the question one by one.(ex: marketing size include age, gender,pression etc. ) should be included evey single point that profeesor asked.
Business Concept
• A manufacturing company designing, producing and distributing aftermarket accessories and upgrades for the Jeep Wrangler line of vehicles.
• There are a multitude of companies producing aftermarket accessories and parts for the Jeep Wrangler. There are companies that produce low-quality, low-cost products mainly intended for cosmetic purposes that will not hold up in the face of moderate to difficult off-road conditions. There are also companies, while fewer than those providing low-end merchandise, still numerous, producing high-end parts that are out of the price range and need for all but the most serious of off-road enthusiasts. The goal of Currahee Designs, LLC will be to bridge the gap between these two markets and provide parts that will provide the function needed to handle all but the most difficult off-road conditions.
• Initial products will include front and rear bumpers, spare tire carriers, rock rails, fender flares, and undercarriage protection. All products would initially be made of steel.
• Owners of current (JK) model Jeep Wranglers that participate in easy to moderately difficult off roading activities with their primary vehicle.
• Direct to consumer sales would be available utilizing a company website with shipping to be handled by an established freight company. Primary distribution goal would be either Quadratec and/or Extreme Terrain. Both companies have infrastructure in place and are local to the area.
• Growth is possible by expanding products to other vehicles with similar uses (Toyota FJ Cruiser, the Ford Bronco and Ranger line expected to hit the market in 2020) and other model Jeep Wrangler generations (YJ 1986-1995, TJ 1996-2006) as well as the undesignated next generation Jeep Wrangler, expected to hit the market in 2017. If initially successful production, could begin to incorporate more complex parts that have a higher production cost, such as suspension and engine components.
• Design and manufacture quality parts at a reasonable price, utilizing existing sales and distribution networks to tap into an overlooked market segment.

Industry Analysis
• Currahee Designs LLC, is in the aftermarket automobile parts industry. This industry focuses on creating aftermarket parts for all sorts of automobiles (SUV’s, sedans, coupes, trucks, etc.)
• Porter’s five forces analysis: When it comes to supplier power in this industry, it is not very strong. There are many companies that are more than willing to help produce and create aftermarket auto parts for our company. Buyer Power is very low when it comes to our company because our product is different from other companies because we offer aftermarket parts on a car (Jeep) that doesn’t have many suppliers for aftermarket parts. But in the overall industry, buyer power is high because there are many substitutes. This ties into the threat of substitution. If we stick to cars that don’t have many aftermarket parts associated with them (Jeeps, BMW 135i’s, Mazdas), then we will not have to worry about the threat of substitutes. We will not deal with much competitive rivalry because our products are not widely made by other companies to the vehicles that we cater to. The threat of new entry is a huge issue unless our company is able to patent our products. In the automotive industry, reverse engineering is very common and any company may be able to copy our products and reproduce them.
• Industry attractiveness (based on above analysis): This industry is only attractive under two conditions. The first, as long as we can differentiate our product and quality from other companies, we should be profitable and make solid sales. The second condition is that we are able to create patents that will restrict companies from reverse engineering our products. If we cannot do this, then the threat of new entrants driving the price down will be a big problem.
• SWOT analysis of our company: Our company has many strengths. We already have a whole team of individuals that already have product designs and products developed. This puts us ahead of the other competitors in the industry. We also are an American-based company that offers high quality and reasonably-priced products. The people want quality and not something that is made in China or overseas and will break soon. Our weaknesses lie in the fact that our American-made product can backfire due to high production costs. We also do not have many connections within the United States; these connections are for manufacturing our products. We see that Jeeps clearly do not have high quality aftermarket parts. This gives us a great opportunity to provide the market with products that no one else offers. This allows us to maximize profit (in the short run) before any other competitors become involved. We also see that many other cars and companies lack aftermarket parts, such as Mazda. If our experiment with Jeeps is successful, we can move onto other automobile companies. We have many threats from our competitors. Our biggest threat is being quickly driven out of the industry because bigger, more established companies decide to produce similar, cheaper products. We also have the problem of having our competitors match of quality but lower prices because of outsourcing manufacturing. Although we have weaknesses and threats, our company’s strengths and opportunities are greater. We believe that our company can remain competitive because we can differentiate our
• Competitor analysis: We have many top competitors that have been very successful. Our major competitors are: Continental Corp. ($44.9 Billion in global sales), DENSO Corp. ($39.2 Billion), and Aisin SEIKI Co. Ltd. ($29.3 billion in global sales). These companies are the main aftermarket auto parts distributors in the world. They have the top engineers and have perfected giving the consumer market a wide variety of options in terms of products, cost, and quality. This allows these companies to control a large market share because they cater to all budgets (low quality and low prices versus high quality and higher prices but lower than OEM prices). This makes the consumer very happy because it gives power to the consumer to choose the quality and price that they are willing to pay for aftermarket auto parts. All of these companies have very good websites and decent customer service. Our company will stand up to these companies and compete by finding a niche, this niche being aftermarket parts for Jeeps. These are parts that these companies do not focus on. We will also make it known that our products are American made and high quality. Our competitors have poor customer service because their customer representatives have poor English because they are overseas. Our customer representatives will be strictly English speaking with the option of speaking to other representatives that can speak other languages (Spanish, Russian, German).
• Distribution channels:
o Our main distribution channel will be our website. Through our website the consumer will be able to purchase our product as wholesale prices
o Our second distribution channel will be eBay. EBay motors is a very popular portal in which the consumer can buy aftermarket parts. EBay also allows for customers to pay with confidence and track their orders with ease. The buyer protection is state of the art and advanced.
o Our last distribution channel will be private and franchised auto stores. This will be the most difficult task to accomplish because stores usually do not accept new products and companies without having an opportunity for huge profits.
o Since we are designing and producing our own products, we will enter into the automobile engine and parts manufacturing industry in the US. Our company will also have an online website for the direct sales to our consumers, so we will also be competing with the companies in the online automotive parts & accessories sales industry.
o There are five forces that threaten the performance of the automobile engine & parts manufacturing industry and the online automotive parts & accessories sales industry in the US: competitive rivalry, buyer power, threat of new entry, supplier power and threat of substitution.

Competitive Force Threat to industry profitability
Low Medium High
Competitive rivalry ?
Buyer Power ?
Supplier Power ?
Threat of New Entry ?
Threat of Substitute ?
• Competitive rivalry: Competition in this industry is high and the trend is steady. The number and balance of competitors is medium. However, the concentration of this company is low. The 15.5% of revenue in 2016 is accounting by the four largest operators in the US. Since the purchases power for new vehicle is highly related to the trends in gas prices because they affect the cost of owning vehicles. The fact that the drop of gas prices in 2015 has given more room in the market for the new competitors. As a result, the competition in this industry is considered at a medium level.
• Buyer power: The buyer power is a strong force in the automobile engine & parts manufacturing industry. Consumers have the different options of choosing product from different manufacture. However, the economy plays an important role in the consumer’s buying power. With the upturn of the economy and the advantages of our product, it has led us to a nice position.
• Supplier power: The supplier power of the industry’s aftermarket products are considered relatively low. The products are initially made in steel. There are plenty of steel supply companies in the US. Due to the large quantity of suppliers, so this is not a large threat to our company.
• Threat of new entry: The threat of new entry shows a low to the industry. The companies entering to the industry will face challenges, since manufacturers are required to invest in many high efficiency machines, robotics and equipment to handle molten metal. All these machines would need large amount funding. This would be the largest barrier for them to entry.
• Threat of substitution: The threat f substitution is considered low for our product. Since we are tending to produce high quality products at reasonable prices, and it is our largest advantage. Therefore, it will be hard to substitute.
• After evaluating the five forces of the analysis, this industry is found to be attractive. We have decided to target across the US nationwide. As both of these industries would be affected by the performance of the vehicle sales; the US economy is growing in the 5 years, which would lead to a growth of the automobile industry.

SWOT Analysis

Strength
Quality
Improved product
Environmentally friendly
Strong management
Distinct target markets Weakness
Possible underfunding
Lack of marketing expertise
Lack of experience
Lack of strategic relationship
As new company no track record
Opportunity
Unfulfilled customer need
Customer loyalty
Possible alliances
New materials
Partnerships/ licensing opportunities
Growing market Threat
Aggressive competitors
Economic downturn
Supplier – dependent
Natural disasters

Competitor Analysis
• Auto Parts Manufacturing in the US
o Denso Corporation
o Denso Corporation is one the largest automotive parts and component suppliers in the World. This company was originally founded in Japan. These global operations generated $46.0 billion in the year 2015 and there is 17.6% of the total revenue comes from the US operations. The company is a member under the Toyota Group, and it works closely with Toyota. There is almost half of the revenue is account from the sales to Toyota. Therefore the sales of the Toyota Company would be a big influence factor of Denso Corporation. However, Denso also sells its product to other major vehicle company besides Toyota
o Over the five years to fiscal 2017, Denso Corporation is anticipated to increase at an annualized rate of 17.4% to $5.7 billion. Although Denso Corporation acts as a foreign company in the US, it has successfully survive and penetrated in the US auto market. The company has invested for the growth in the US markets in the earlier period of the five year period to 2016. And this has led to a profit fell for the company. However, as time goes on, the profit increased as the company cut costs through lowered wages and increase the efficiency through automation.

• Online automotive parts &accessories sales in the US
o AutoZone Inc.
o AutoZone Inc. was founded in Memphis in 1979. It is one of the largest auto parts retailers and a leading distributor of automotive replacement parts and accessories in the US. The company operates 4,500 retail stores and 8 distribution centers in the US. They offer products for variety of vehicles. Although they were mainly sales in stores, they have increased putting more effort on their website which is called AutoAnything. AutoAnything is an online retailer mainly focuses on the specialized automotive parts and accessories. The website was launched in 1999 and headquarter is in located in San Diego.
o Over the 5 years to 2015, the company is expected to increase at an annual rate of 10.4%. The profit margin is at an estimated 19.2% of income in 2015 which is much higher than the average of the industry. Since they carry their own private-label brand, it helps to get higher profit for the company.

o US Auto Parts Network Inc.
o Auto Parts Network Inc. operates as an online retailer of automotive aftermarket parts. The company was originally launched in 1995 and the first website was created in the 2000. Nowadays, the company has over 400 employees and they also have operations overseas. Their products are sold and shipped to 160 different countries.
o Over the past five years, the company revenue is anticipated to increase at an annualized rate of 2.6% to $297.7million. However, the US Auto Parts has been struggled past five years. The noncash write-downs of intangibles and restructuring charges related to the WAG acquisition were the main costs that cut down the company’s net income. The revenue had declined 16.4% in 2013.
Market analysis—this section describes and defines who you will sell to. No industry information (i.e., competition, suppliers, etc.) should be in this section.
• Target market description: Describe the target market and include statistics indicating the size of the totalrelevant market. Completing the first two sections here require you to perform secondary research. Use data from secondary sources to provide a vivid description of your target market. (You must use footnotes to cite your source,using the Word automatic footnote function,NOT a Works Cited or References section at the end of the paper. Emily Missner in the library is very helpful). If you are targeting a local market, i.e., you are opening a restaurant in a specific neighborhood in Philadelphia, your market sizing mustbe based on that local market.
• Market size?
• Market growth rate?
• Market trends and what they mean for your business?
• Key success factors for this market and how you will ensure you meet them.?
• Primary customer description—build a profile of the primary group you expect will be interested in your product or service. This profile may contain the following elements:
• If primary customer is a consumer (i.e. if you are pursuing a B2C business model; only discuss those factors that are relevant to your decision-making). Also, discuss them, don’t list them. That means explain why they are important. If they are not important, don’t include them. As an example, if you are targeting both men and women, then you don’t include gender.
• Age ?
• Gender ?
• Profession ?
• Education level ?
• Household income level ?
• Marital status
• Geographic location
• If primary customer is a business (i.e. if you are pursuing a B2B business model; only discuss those factors that are relevant to your decision-making). Discuss them, don’t list them, same as above.
• Company size ?
• Types of products and services they provide
• Annual revenue ?
• NOTE: You may need to understand both the business customer and an end consumer. For example, if you sell a product through a retail chain, you will need to understand your actual customer, i.e., the one who pays you for your product (such as a distributor or the retail outlet), as well as the end consumer who will buy it from the retailer; thus, both of these demographic profiles will be needed. Be sure all information in this section actually adds to the discussion, which means you only include what is important and what will help you make business decisions.
• Primary research: Collect and analyze data from your target market that helps you to credibly determine whether you have a feasible business. Primary research, such as surveys and interviews, should help you answer the following key questions and is absolutely required. We can discuss the most applicable type of primary research you should use if you are unsure.If you are using a survey, plan on collecting about 100 responses. If you are using interviews, you should complete at least 20. Note that if you are selling to consumers, you should always plan to use a survey and gain 100 or more responses. Interviews are generally only acceptable if you are intending to sell to businesses.
• Who is most likely to purchase the product or service at market introduction?
• What do these customers typically buy, how do they buy it, and how do they generally hear about this type of product or service?
• How often do they buy?
• What is their buying pattern?
• What would they expect to pay for this product/service?
• How—if at all—can the new venture meet the customers’ needs?

In this section in the feasibility analysis, you only include the information that is relevant to the discussion of feasibility. That means you do not list every single question you asked of your sample, nor does it mean you list the exact distribution of answers from each question. What it does mean is that you must “find the story” in the numbers—what do the results of your analysis mean for your business? What are the relevant statistics from the research? Be sure to include how you released the survey (or did interviews) and how many respondents you had. Never include respondents’ names! That is a violation of their privacy.

• Entry strategies (initial market penetration – selling to the first customers)
• What marketing tactics will you use in order to realize/achieve/implement your entry strategy?
• NOTE: Basically, this section in the BFS requires you to describe how you intend to enter the market and acquire your first (major) customer(s). What types of market messaging will you use? How will your intended customers find out about you?

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