In view of the current keen competition in the market, a product must be distinguished enough so that it could appeal to the customers and survive in the competitive market. Customers nowadays tend to be very choosy when come to purchasing a product as there are variety of choices and substitutes available in the market. Through this individual task, scholars are given the opportunity to bring themselves into the virtual world of business where they are required to introduce a new household care product to the consumers.
There are three crucial steps that one has to know before launching a product, namely, segmentation, targeting and positioning. Segmentation is a process where people divide market into distinct groups of buyers with different needs, wants, characteristics/ behaviour and demand for benefits. Market targeting on the other hand, is a process where people evaluate attractiveness of each market segment and select one or more of the market segment to enter. In this particular process, they choose the market segment they want to serve. It is also important to be clear with the market positioning process as it will place the products in the mind of customers that they will know the benefits offered and result in a purchase.
Our company, SOUTHERN LION, joint venture between LION CORPORATION JAPAN and LAM SOON (M) BHD, is a leading FMCG marketing and manufacturing company. The company is committed to creating and building great brands that will improve Malaysian lifestyles. Apart from being an ISO 9001 accredited company, we are also honoured to be certified under ISO 14001 for Environmental Management and GMP for personal care products. In every field that we compete, we aim to be the market leaders within the top 3 positions in the market.
2.0 Situational Analysis PEST Analysis
Political factors can have a direct impact on the way business operates. Decisions made by the government affect our everyday lives and can come in the form of policy or legislation. For Malaysia, our government and nation is run under a democracy. In this capitalistic, free market-oriented economy, corporations and other private firms make the vast majority of microeconomic decisions, and governments prefer to take a minimal role in the domestic economy. As a result, the Malaysia has a small social safety net, and business firms in this country face considerably less regulation than firms in many other nations (Wikipedia).
Employee rights in Malaysia also have a substantial effect on business. With the apparel industry being labour-intensive, the effect employee laws have are significant. Employee laws to consider are minimum wage, over time, benefits and health and safety regulations. In short, political factors play a vital role for the business prevailing in the country. If the government is inactive then the company advances at a standard rate but the other way round, a drastic fall can be seen.
Economic factor is another important external force that directly affects our decisions is the economic variation. If a country experiences inflation, then it will have a negative impact on the businesses running in that country. Inflation is a rise in consumer prices, increasing the cost of living. Some inflation is caused because a country has printed too much money or experienced tremendous financial disaster, causing its currency to plummet. In Malaysia, we consider ourselves fortunate as the condition for the time being is stable, still. The purchasing power in Malaysia remains strong and our product is highly affordable for all consumers.
Socio-cultural factor is the main force that affecting decisions about our product. Before taking any decision we have to keep in mind the specific religious and cultural key factors for our survival in the industry because people will repel the product that their religion or culture do not prefer. In today’s world, people are actually leading fast and furious lifestyle. They want things to be done quickly. Therefore, to fulfil their needs, we designed our new product in such a way that it is easy and convenient to be used (user-friendly).
Technology is a factor which its value cannot be ignored. Technologies vary with the passage of time in all industries. We also make our techniques and methodologies up to date for keeping our product preferable in the market. Also, the enhancement in technology enables us to reduce cost of product and increase the productivity. Technology plays its role too when we want to advertise. The emerging social websites which people are so addicted nowadays such as Facebook and Twitter allow us to advertise in a more efficient way. Our messages could be easily and clearly transmitted to our potential customers online.