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Lucas Leung Z5207134 MARK1012 Word Count (including headings and references): 1594 Option 1: The Pearl Industry: Is there a market opportunity? Jane’s Biggest Challenge The biggest challenge Jane is facing in her venture into the pearl industry is a combination of both identifying a key value proposition for her chosen market segment and effectively implementing a sustainable product offering in a niche industry. Given that pearls are a small subsection of the jewellery industry, Jane needs to differentiate her products from the current pool of competitors whilst also overcoming the shortcomings of pearl manufacturing such as the negative effects of climate change and the increase of false advertising and replicas. Furthermore, there is uncertainty in her choice of product distribution, e.g. physical vs. online. Thus, this will be an important factor in her decision-making process as a sole trader. Nonetheless, the pearl market is prime for entry. Currently, the retail pearl market in Canada is far from saturated and there are opportunities to take advantage of this. By taking certain steps such as performing market research and analysis, following the segmentation, targeting and positioning framework as well as using a successful pricing model, there is potential for successful market penetration. Business Opportunities and Marketing Environmental Forces Jane’s potential business opportunities include opening a physical boutique store in a western country such as Canada, operating completely online internationally or selling her products at a wholesale price in larger quantities. Within these business opportunities, there are various other factors that need to be considered which include product lines, her supply chain and market segmentation. As part of a product launch strategy, these factors have a large impact in the growth and implementation of a new business. The above diagram1 shows the breakdown of the marketing environment into the immediate environment and the macroenvironment. ________________________________________ 1 (Grewal et al., 2017) 1
Lucas Leung Z5207134 MARK1012 Word Count (including headings and references): 1594 Immediate environment(or microenvironment) encompasses the factors that can be considered internally within a firm. These components are company capabilities, competitors and corporate partners. Before entering the market, Jane is able to analyse the capabilities of her future company and how she will adapt to trends and keep her products relevant in a dynamic economy. By founding a business as a sole trader, Jane can make all the marketing and business decisions and align her product offerings with her desired brand positioning and create a value network which is intertwined with Customer Relationship Management