Screening markets for a specific product
Screening markets for a specific product
As an economist working for a hypothetical multinational corporation with a given home market you are charged with the responsibility of identifying TWO new markets for a specific CONSUMER good or service that is produced by your firm. (You choose the product) One of these markets has to be in a high-income economy as defined by the World Bank and the other has to be a low or middle-income economy. As the MNC is hypothetical, you can assume that all economies are potentially new markets apart from your home market. (Your home market is excluded from the process, i.e. if you are from the UK then your home market is the UK market). Your research has to be presented as a 4000 word report.
Report format
Your report should be word processed, have a cover sheet, a contents page, page numbers and be clearly structured using headings. The standard of English should be appropriate to a business setting, with correct spelling and grammar and formal in style.
For this report, you should use non-personal language i.e. do not use ‘I’, ‘We’ or ‘You’. The following example should explain this more clearly:
Here is an extract of writing which uses ‘I’, ‘We’ and ‘You’:
I think that this report has major flaws as it only looked at hospitals in one area of the country. You can see that this is a problem as the report was supposed to consider the cleanliness of hospitals throughout the country.
Here is an extract that implies the same opinions but does not use ‘I’, ‘We’ or ‘You’:
The report by smith et al. cannot be used to draw conclusions about the cleanliness of hospitals throughout the country as it only focuses on investigating hospitals in one region.
Content – NOTE these headings are for guidance only, students can change the headings to suit their own style and content.
- Abstract
- Introduction Write a few paragraphs explaining the purpose of the report and the specific nature of the product – be as specific and detailed as you can. (250 words approx.)
- Overview of current domestic and international markets for your product Briefly outline the size, growth and nature of current markets for your specific product, provide as much data as possible. (500 word approx.)
- Outline the nature of the screening process to be adopted Highlight the approach you are going to adopt and the reasons for the order it will take. By identifying likely consumers you will be able to focus on the key variables you will need to use. (250 words approx.)
- Undertake an initial screening process to generate a short list of markets with good potential Apply appropriate values to the selected variables in order to eliminate economies with little potential. Size of the short list will vary according to the nature of the product and process. There is no right amount but too many will make further screening difficult too few may mean economies with potential have been overlooked. This is one of the most important elements of the report. (1200 words approx.)
- Undertake a detailed screening in order to identify the two best markets Use further screening variables to reduce the short list step by step eliminating those with the least potential. This stage should also evaluate whether the potential markets can be profitably exploited. This process will continue until the final two markets are selected. (1500 words approx.)
- Provide an overview of your selected markets explaining clearly why you think they are the best markets This should not be a general macroeconomic overview but a clear explanation of why you think they are the best markets for your product. Reference should be made to the factors that are related to the market for your product. (400 word approx.)
- Conclusion A clear overview of the key points of your report. (200 words approx.)