Market Research For Launching A Business In Jamaica
Type of Business
Proposing of new business requires plan, which can be certified only if there is well documented research work over the requirement of the customers, society, business environment, competitors. The following research work will provide proper info about all the mentioned aspects in well planned and justified way.
There is a huge amount of changes in climate of Caribbean countries as it can be noticed due to the high rise in the temperature as well as UV rays. A country like Jamaica is prone to such situation of receiving harmful rays of UV. In a country like Jamaica where People are considered to be the richest among all the other Caribbean community on the basis of income deserve better product which could help them suffer save themselves from UV rays. On being hired as a consultant to propose a business which would be long-lasting in terms of the situation in Caribbean countries like Jamaica, I would suggest a business for sunscreen body lotion and name it as “Saviour”. The business would be a sole trader business which would have branches all along the busiest ocean in Jamaica to ensure that the product is well acquainted towards the customers in the society.
There are few uncertainties that may arise while setting up of the business in Jamaica, it is because there are competitor selling substitute products and enjoying Monopoly business operation for last decade.
Following is the porters five force analysis to ensure the understanding of the suitability that the business named as the “Saviour” has in Jamaica:
Bargaining power of suppliers: The bargaining power of suppliers in case of the newborn business will be always high. In a country like Jamaica where most of the people are higher in income level from other Caribbean country, setting up of business is never easy keeping in mind the price tag that is to be placed (E. Dobbs, 2014). When considering the suppliers to be acquainted with the new product to be made, it is really a position of strategic understanding. The business management needs to be well aware of the price that goes up or low. Suitable negotiable ideas must be or are needed to be incorporated in order to break in the market of Jamaica.
Bargaining power of the buyers: The bargaining power of the buyer is slightly high as because there are already businesses who are selling similar kind of product. However, to make sure that the business does not fall prey to the situation of buyer bargaining power, they need to make clear the possibilities that the customers will have if they use their product (Porter &Heppelmann, 2014). They need to be more persuasive in words, and clear in thoughts in order to ensure the bargaining power of the buyers go down.
Threat of substitutes: In a country where there is a high amount of heat, people tend to buy products like sunscreen lotion to save themselves from the harmful rays of the Sun. The threat of substitute is a real threat that the business needs to pay attention. It is because people will go for similar products which would be available easily and have a price tag lesser than the one newly being sold. They will go for affordable price rate and brands that are well known to them. Therefore, in order to make sure that the threat of the substitute is positively tackled the business need to be more creative in their packaging system to provide enough information which would attract the attention of the customers.
Competitors analysis by Porter’s 5 forces
Threat of new entrants:Business organisations having their product range in terms of sunscreen lotion would not directly go for investing in a country where the income level is not high as the sunscreen products generally comes with high price range, which the people may not be able to purchase. However, the product the new set up business is going to sell is well in the reach of the buying power of the customers in Jamaica. Due to huge globalisation there always remains a concern where the business may face threat of new entrants, with better propositions.
Political factors: In response to the situation of political factors there is a great opportunity to set up business, as because the politicians have provided them with an efficient aspect of consumer buying power, legal Framework, level framework and Labour forces (jamaica-gleaner.com, 2018)
Economical factors: Considering economic freedom score of 69.1 it can be clearly suggested that there is in a beautiful effectiveness in a trade that would suggestively help the new business to make its ground strong having a proper operation (heritage.org, 2018).
Social factors: The social factors in Jamaica are directly impacting over the economic concept. The social factors will certainly make things harder for the business to compose strong hold (Mitchell et al. 2015). The social challenges related to religion as well as tribal concept will be a threat to the upcoming business operation named as the “Saviour”.
Technological factors: There is a huge range of development in upcoming years with clear opportunities been provided from technology in terms of geographic information. The networking objective in technological advancement would be helpful for this trading of business operation in marketing (jamaicaobserver.com, 2018).
Legal factors: With the support in the protection of property rights in Jamaica there is easier chances of the business to ensure that their intellectual properties are safe and they have proper and lawful business market (export.gov, 2018)
Environmental factors: The concept of environment safety is well supported by Jamaica because of the negotiator from around the world and the United Nation who have made sure to have a sustainable business market (jamaicaobserver.com, 2018).
An important aspect that presents a business different from other businesses is the efficiency in understanding their strength, weakness, opportunities and threats. Strength suffices the situation where the organisation or a business understands the positive factors that need to be kept in mind as to ensure success in future (Indiatsy et al. 2014). Weaknesses are to be minimised or kept in check to bring out the best of the business organisation and work. The opportunity shows an organisation or a business the chances that grow in the market of any country or society the business is working. In this part for threat, business looks out for the changes and challenges that occur in the environment which is dynamic in nature to safeguard them from certain obstacles.
Strength: The strength that the business has is its compelling (Unique selling proposition) USP, which is “When there is Saviour, Sun is not severe”. The new business has a unique way of understanding the requirement of the customers in society as they have the knowledge of conducting business research work to enable them to have a wide range of objectivity is to be fulfilled to bring out the attention of the customers to them. The business will have a more technologically advanced range of products that would be available in normal market price competing with the competitors in the society (Mathooko & Ogutu, 2015).
Pestle analysis of the business
Weaknesses: Novice market appearances is the prime weakness that the business will face
Opportunities:Huge amount of interested customers in society along with growing market is the prime opportunity that the business will enjoy setting up in Jamaica society (jamaicaobserver.com, 2018).
Threat: financial barrier and organised crime pose a great threat (insightcrime.org, 2018)
Following is the survey questionnaire presented to a group of randomly selected 10 people:
|
Options |
Responses |
Total respondents |
Percentage of response |
|
18 to 25 yrs |
1 |
10 |
10 |
|
26 to 32 yrs |
4 |
10 |
40 |
|
33 to 40 yrs |
3 |
10 |
30 |
|
40 and above |
2 |
10 |
20 |
Analysis: Around 40% of the people where will be the age group of 26 years 52 years which have provided the better position of understanding the requirement in the market that will satisfy the need.
|
Options |
Responses |
Total respondents |
Percentage of response |
|
Male |
4 |
10 |
40 |
|
Female |
6 |
10 |
60 |
Analysis: Out of the randomly selected people, 60% of them were women which have helped the researcher to ensure core knowledge in understanding the new market product requirement
|
Options |
Responses |
Total respondents |
Percentage of response |
|
Very Often |
3 |
10 |
30 |
|
Often |
4 |
10 |
40 |
|
Sometime |
1 |
10 |
10 |
|
Rarely |
1 |
10 |
10 |
|
Very rarely |
1 |
10 |
10 |
Analysis: From the above table it can be seen that most of the Jamaican people often visit market as they are used to shopping from daily market basics
|
Options |
Responses |
Total respondents |
Percentage of response |
|
Lip balm |
1 |
10 |
10 |
|
Shower gel |
4 |
10 |
40 |
|
Skin grooming kit |
3 |
10 |
30 |
|
lotion |
2 |
10 |
20 |
Analysis: To avoid hot climate people in Jamaica uses shower gel the most, as 40% of the randomly selected people have selected so. In grooming kit is there at the second position with 30% of the people collecting such product
|
Options |
Responses |
Total respondents |
Percentage of response |
|
Moisture |
2 |
10 |
20 |
|
Safety against UV |
3 |
10 |
30 |
|
Safety against tan |
4 |
10 |
40 |
|
Don’t know |
1 |
10 |
10 |
Analysis: Asking why the product they use is necessary, safeguarding against tan was the maximum response. Around 40% of the people who were selected for the questionnaires said that they use the product to save themselves from tanning. How about around 30% of the people say that they want protection against the harmful UV rays that have increased due to the recent global warming
|
Options |
Responses |
Total respondents |
Percentage of response |
|
WildStone |
2 |
10 |
20 |
|
AXE |
2 |
10 |
20 |
|
Ustraa |
1 |
10 |
10 |
|
Badger(Broad spectrum protection) |
5 |
10 |
50 |
Analysis: Most of the people who were considered for undertaking the research questionnaire format shows Wild Stone and AXE as their preferred brand. This clearly suggest that globalisation have which every corner in the world providing Universal brand to be selected.
|
Options |
Responses |
Total respondents |
Percentage of response |
|
Grocerry |
4 |
10 |
40 |
|
Stationer |
2 |
10 |
20 |
|
Households |
4 |
10 |
40 |
Analysis: Evaluation of the new product that was presented in front of the people from the market Questionnaire that was prepared it is clearly understood that around 60% of the people wishes to have sunscreen lotion as the new product to be introduced in the market which is being followed by cheap air coolers.
|
Options |
Responses |
Total respondents |
Percentage of response |
|
Tooth paste |
1 |
10 |
10 |
|
Suncream lotion |
6 |
10 |
60 |
|
Cheap Air cooler |
2 |
10 |
20 |
|
Innovative umbrella |
1 |
10 |
10 |
Analysis: Evaluation of the new product that was presented in front of the people from the market Questionnaire that was prepared it is clearly understood that around 60% of the people wishes to have sunscreen lotion as the new product to be introduced in the market which is being followed by cheap air coolers.
|
Options |
Responses |
Total respondents |
Percentage of response |
|
2 JA$ to 5 JA$ |
2 |
10 |
20 |
|
6 JA$ to 8 JA$ |
4 |
10 |
40 |
|
9 JA$ to 11 JA$ |
3 |
10 |
30 |
|
12 JA$ and above |
1 |
10 |
10 |
Analysis: Around 40% of the people out of the 10 people who were randomly selected for answering the question have selected the option for 6 Jamaican dollar 8 Jamaican dollars. The price of the product can also be extended is 9 Jamaican Dollar to 11 Jamaican dollar
|
Options |
Responses |
Total respondents |
Percentage of response |
|
Very efficiently |
4 |
10 |
40 |
|
Efficiently |
3 |
10 |
30 |
|
Don’t know |
2 |
10 |
20 |
|
Not at all |
1 |
10 |
10 |
Analysis: On asking whether the product the consumer wishes to be launched will satisfy the need or not there was a unanimous winner of people saying that that will very efficiently surprise their need. This clearly suggests that the introduction of a new sunscreen lotion will be properly welcomed by the customer
Conclusion:
From the above research work there has been enough information related to the suitable business that can be set up in Jamaica. With gathering of views from the use of the survey questionnaire, it is well justified that the people in Jamaica are well in favour of having a sun scream lotion that is affordable and easily available. The 5 force analysis and the Pestle analysis has well provided the an overview of the business environment and competitors.
References:
- Dobbs, M. (2014). Guidelines for applying Porter’s five forces framework: a set of industry analysis templates. Competitiveness Review, 24(1), 32-45.
export.gov, (2018) EXPORTJAMAICA Retrieved from https://www.export.gov/article?id=Jamaica-Protection-of-Property-Rights Retrieved on 2 December 2018
heritage.org, (2018) HERITAGEJAMICA Retrieved from https://www.heritage.org/index/country/jamaica Retrieved on 1st December
Indiatsy, C. M., Mwangi, M. S., Mandere, E. N., Bichanga, J. M., & George, G. E. (2014). The application of Porter’s five forces model on organization performance: A case of cooperative bank of Kenya Ltd. European Journal of Business and Management, 6(16), 75-85.
jamaica-gleaner.com, (2018) JAMAICA Retrieved from https://jamaica-gleaner.com/article/business/20160403/why-small-businesses-should-care-about-politics Retrieved on 1 December 2018
jamaicaobserver.com, (2018) JAMAICASERVER Retrieved from /https://www.jamaicaobserver.com/columns/Opportunities-through-technology_8350950 Retrieved on 29 November 2018
jamaicaobserver.com, (2018) JAMAICASERVER Retrieved from https://www.jamaicaobserver.com/environment/ Retrieved on 1st December
Mathooko, F. M., &Ogutu, M. (2015). Porter’s five competitive forces framework and other factors that influence the choice of response strategies adopted by public universities in Kenya. International Journal of Educational Management, 29(3), 334-354.
Mitchell, R., Noh, S., Hamilton, H., Brands, B., Wright, M. D. G. M., Cumsille, F., &Khenti, A. (2015). The role of social factors in the use of licit drugs among university students from one university in Kingston, Jamaica. Texto&Contexto-Enfermagem, 24(SPE), 177-183.
Porter, M. E., &Heppelmann, J. E. (2014). How smart, connected products are transforming competition. Harvard business review, 92(11), 64-88.
jamaicaobserver.com, (2018) Retrieved from https://www.jamaicaobserver.com/news/What-you-probably-didn-t-know-about-sunscreen_92161 Retrieved on 1st December
insightcrime.org, (2018) Retrieved from https://www.insightcrime.org/news/brief/jamaican-gangs-follow-regional-patter-recruiting-schools/ Retrieved on 5 December