Company market share – tool or myth? Increasing market share Increasing market share of the enterprise

Accelerated growth and expansion of market share. Offensive by maximizing the effect of experience.

Having created an image of their future, they begin to set goals in the field of finance, market development, work with consumers and relationships with competitors. Strategic goals are aimed at expanding market share (absolute, relative to the main competitor), increasing sales at minimal costs and ensuring profitability of share capital. An action program is being developed aimed at optimizing the company's resource capabilities and capturing the planned market share in the competition.

The fact that competitors may have different goals illustrates the rivalry between American and Japanese companies. Most American companies are focused on maximizing short-term profits, since the success of management is assessed primarily by shareholders. If they are not satisfied with the achieved financial indicators, the cost of capital increases. The strategy of Japanese companies, on the contrary, is focused on expanding market share. Because they are able to obtain significant bank loans at low interest rates, Japanese companies are satisfied with lower profit margins.

The company must determine a strategy for changing the effectiveness of the product over a long period of time. There are three possible options here. The first, when a manufacturer continually improves a product, often results in increased profits and increased market share. The second, most common, is to maintain product quality at a given level. And the third strategy option is to reduce product quality over time. It is used to compensate for increasing production costs in the hope that customers will not notice the changes. Some companies deliberately reduce the quality of a product, hoping to increase current profits. Such a solution seems to us unpromising.

The third factor is the possibility of an incorrect marketing mix strategy aimed at expanding market share and reducing profits. Some elements of the marketing mix, which are very effective in expanding market share, lead to a decrease in profit levels. High market share leads to increased profits when company costs are reduced

A company aspiring to leadership must first determine the goals of its strategy. Most companies set expansion of market share as their main long-term goal. Thus, the decision to go on the offensive is interconnected with the choice of the target of attack.

The strategies we have considered allow us to determine the general direction of the company's actions. A company aspiring to be a leader must translate its overall strategy into a set of specific actions to expand market share.

Typically, to expand market share, the applicant has to use a set of strategies described above, and its success is determined by the most effective combination of them.

A competitor may view your company's price cut as an attempt to gain market share, as a sign of financial weakness and an attempt to increase sales, or as a sign of an industry-wide price cut to stimulate demand.

Expanding market share and increasing sales volumes are achieved within

Determine the company's method of expanding market share.

What does it mean to expand market share through competing products?

Expanding market share Product modernization

Transformation, on the contrary, is designed to contribute to the achievement of long-term competitiveness of the company. Its essence is to improve core competencies and motivate personnel aimed at achieving leadership in the industry by the company. Transformation is more difficult and takes a long period of time, since the problems that it is designed to solve are external. The goal of transformation is to win the hearts and minds of customers and a leading position in the market. In today's international markets, this means achieving world-class status. Decisions are no longer about costs, but about the results of expanding market share, positioning brands, stimulating innovation in products, processes and marketing channels.

The authors of many textbooks defend the thesis that positioning strategies are divided into 3 types: differentiation, cost leadership and focus. The essence of a differentiation strategy is to increase the price of a product by offering unique value to one or more characteristics of the product, the performance properties of the product, its image or the level of customer service. Cost leadership is based on the fact that the company is the only manufacturer in the industry that sells products at lower prices and uses its position to expand market share. A focus strategy is to serve a specific segment more effectively than competitors who have captured the majority of the market.

The attention of the management of production-oriented companies is concentrated on achieving high efficiency, reducing costs and mass distribution of products. Adherents of the production concept argue that consumers are interested primarily in purchasing a product, and not in its high qualities, and suppliers concentrate their efforts on finding ways to expand output. This implies that the main tool for expanding a company’s market share is to reduce product prices.

It seems natural to assume that the competitor strives to maximize profits. However, companies place different emphasis on long-term and short-term earnings. Most American companies are focused on maximizing short-term profits, since the success of management is assessed primarily by shareholders. If they are not satisfied with the achieved financial performance, the company's owners can get rid of their shares, which will lead to an increase in the cost of capital. The strategy of Japanese companies, on the contrary, is focused on expanding market share. Because they are able to obtain significant bank loans at low interest rates, Japanese companies are satisfied with lower profit margins. An alternative assumption is to assume that each competitor has a number of goals: maintaining current profitability levels, expanding market share, increasing cash flows, technological leadership, high level of service, etc. Knowing how a competitor evaluates certain goals makes forecasting easier his reactions. If your competitor is a division of a large company, you need information about its management's strategy regarding this structure.

In an effort to expand market share, many companies try to copy the experience of their most successful competitors (see Benchmarks).

The promotion of the results obtained resulted in many companies setting the goal of expanding market share and leadership. General

The second factor is economic costs. It is known that the profitability of a company may decrease when it reaches a certain market share. In Fig. 13.3 the optimal market share of the company is 50%, and its increase leads to a decrease in profitability. This conclusion does not contradict the conclusions of the MSUP, although the study does not provide data on the profitability of companies owning more than 40% of the market. In general, the costs associated with expanding market share may exceed the benefits received. A company that owns 60% of the market must be aware that some consumers may have a fundamentally negative attitude towards any monopoly, others may be loyal to competing suppliers, others have specific needs, and others prefer to deal with small companies. The company will face considerable expenses in paying lawyers, maintaining relations with the press and lobbying for market expansion. In general, market share expansion is not practical when a company is unable to realize economies of scale or experience, unattractive market segments, consumer desire to use multiple supply sources, and high entry barriers. The industry leader should rather focus on

Alexey Karelin,

General Director, Termomax

Expand market share sales can be achieved by increasing the work of the sales department. However, it is often more profitable to reach new clients with the help of partners. A company producing building materials decided to build a sales network, which allowed sales to grow significantly. Currently, the products are sold by 60 dealers. How to establish this process?

Previously, we sold all products through our sales department. We mainly provided materials for large construction projects. To expand the market share, it was possible to increase the staff of the commercial department and open representative offices, but we decided to create a partner network of dealers.

We knew that selling through dealers would be less profitable than selling directly to customers. However, they allowed the company to enter new markets and win a large market share: our own commercial department handles large orders, and we set dealers the task of organizing the sale of products to medium and small customers. This division eliminates internal competition, because we form a dealer network in the same territory in which we operate ourselves. This is work aimed at the future: expanding the client base allows us to promote the brand and increases brand awareness. However, even now the dealer network is showing good results: the entire increase in sales in 2014 was provided by partners.

How to increase market share through partners

Using bad experiences to develop

We started building our affiliate network in 2012. In essence, searching and negotiating with potential dealers is no different from b2b sales, so we hired two sales managers who were supposed to conclude contracts with dealers. The first partners appeared quickly, but we were unhappy with their work, and we also faced competition. Dealers did not always comply with agreements and sold our goods at a price lower than the official sales price. This led to conflicts with the clients of the sales department: they were quite rightly indignant that the manufacturer was selling them a product at a higher price.

We decided to be patient for a while in order to increase our market share in the future. However, ten months after the start of the project, we realized that it was not justified: by the scheduled date, only 15 dealers began to actively sell our products. We stopped the development of the dealer network to analyze our mistakes (figure).

The main mistake was selecting the wrong sales managers. I conducted the interview personally and, as can be seen from the results, I selected the wrong people who were needed. Managers did not show interest in their activities, did not make the required number of calls, and were not prepared for the hard work associated with many telephone contacts and overcoming barriers to establishing them. But we were unable to motivate them to achieve the desired result.

We divide the sales process between employees

The first stage on the path to expanding market share was not easy. We turned to a consultant with a request to help develop a dealer network. On his advice, we first found a new seller. He had extensive experience in sales, was active, focused on working in the field, and had already participated in creating an affiliate network at his previous place of work. We offered him the high-status position of commercial director and a good income: the salary exceeded the combined salary of the two managers who had worked on the project before; in addition to the fixed part, bonuses were provided for new dealers.

First, we jointly created a database of potential dealers - we took information from the Internet, and also used contacts known to us as market participants. The next step was to divide the sales funnel into separate stages and assign different people to work with them: it was unreasonable to force the “expensive” commercial director to make cold calls; we assigned him personal meetings with potential dealers. They did not hire managers for cold calling; they delegated this task to full-time specialists. We optimized their workload, and they devoted two to three hours a day only to calling potential clients.

The commercial director was given a goal: two to three meetings with potential dealers per day. After the negotiations, he immediately wrote a report on how the meeting went, what he did, what he agreed on, what he planned. If a dealer candidate was attracted by our offer, then the technologists or the commercial director himself gave him a presentation-seminar.

To ensure that the commercial director and managers remained focused on achieving results and maintained a high pace of work, the consultant held a weekly motivational meeting. During the meeting, the commercial director and managers summed up the work for the week: compared the plan with the results and, if it was not fulfilled, found out why this happened; analyzed their mistakes and outlined ways to eliminate them; set goals for the next week. If necessary, the work of employees was adjusted: so, in order to achieve greater efficiency of cold calls, we developed conversation scripts.

Thanks to regular meetings, it was possible to identify a number of non-obvious problems. It turned out that additional design engineers were needed to work with dealers, since we took on part of the calculations for partners’ orders, and our specialists did not always complete the work on time. In addition, we changed the packaging - made it brighter and more attractive (previously, caring about design and product recognition did not seem necessary).

The chosen approach paid off: in six months we signed contracts with 60 dealers.

We work with dealers

We offered dealers a very good margin: they can earn up to 30% on our products. In addition, we included technical support in the offer and conduct training seminars for dealer personnel - we teach how to properly sell our products and how to calculate kits for customers. If necessary, we help in concluding a transaction between the dealer and the client. In the case of complex orders, our engineer comes to the dealer’s client’s site, takes measurements of the building’s facade, makes an initial calculation - we take on part of the work on the commercial proposal. At the initial stage of cooperation, dealers have many technical questions - this also requires the participation of our specialists.

At the same time, we do not impose overly strict requirements on candidates. We don’t set them a strict minimum sales volume, but we evaluate their profile. Dealers can be companies that operate in the construction equipment market and understand the specifics of our products. We give preference to organizations that sell materials for facade work and do not have the product lines of our competitors. For example, thermal insulation is used to insulate a facade, and the company that sells it can sell our façade systems. But those who supply bricks or concrete find it difficult to sell our products. We also weeded out the large players: they do not pay enough attention to promoting our product, while medium and small companies are more accommodating and motivated to develop sales. Thus, the basis of the dealer network were wholesalers who dealt with facade thermal insulation materials.

For dealer websites, we provide information about our products - technical specifications, descriptions of advantages, photographs. Now this is one of the conditions that we set for the dealer: a description of our products must be present on his website. We do not publish a list of dealers on our website. Potential customers who come to our website should be taken to our sales department, not to a dealer; the partner must be diligent in finding the client rather than relying on us to provide it. Our strategy is aimed at ensuring that dealers give us new customers, rather than taking away our regular customers or those who found us themselves.

For dealers who have a sales area, we provide product samples, and if the space allows, we build a demonstration stand. If this is not possible, we limit ourselves to brochures with product descriptions. We have changed the layout of the brochures, leaving space for the dealer's information - he can stick a sticker there with his logo and contacts, or put a stamp with a phone number and website address. It is not profitable for us to print separate editions of advertising materials for each dealer.

Stopping network expansion for optimization

After six months of active network growth, we paused the process. We developed it until spring, when the high sales season began for us. At this point, we stopped looking for new dealers and began to support the established network. Particular attention was paid to increasing the efficiency of partners, focusing on training and sales support. The goal was to train dealers to sell our products during the high season, so that by the next sales peak they could already operate themselves. In accordance with these tasks, we changed the team that was previously involved in network development: we parted ways with the commercial director, and the project manager is in charge of optimizing the network.

It is important to properly train dealers. The training takes place on the partner’s premises and is aimed at managers who will be involved in sales of our products. Typically, the lesson is conducted by two specialists - a project manager and an engineer. The bulk of the training takes about three hours, including a question and answer session. We talk about the product, its competitive advantages, and the technology of using materials. We teach you how to correctly calculate an order, provide table templates in Excel and make trial calculations. Typically, this amount of knowledge is enough for sales managers to manage clients on their own.

Sales department standards: step-by-step development and implementation algorithm

Nevertheless, at first it is necessary to constantly be in touch: the dealer’s employees have many questions at this time, and the more active the sales, the more questions there are. Basically, they come down to the problem of correctly calculating material consumption and drawing up a commercial proposal: the product is a complex engineering system, so many nuances need to be taken into account. Sometimes dealers request re-training in connection with the arrival of new employees due to staff turnover or when expanding the sales department - there are about 15–20% of them.

During the initial period, it is important to constantly monitor the dealer's performance; if he has no sales, you need to find out the reason. New dealers do not always show diligence when negotiating with clients, and our task is to convince them that we give a good margin, that the product is of high quality and in demand, and that we are ready to help them with sales.

By receiving full training, dealer employees begin to understand how to sell our materials, they do not give up because of difficulties, and they achieve good results.

In the future, we provide technical support to dealers: we calculate difficult orders; if the client is important and complex, we participate in negotiations; We compare our offer and those of competitors, based on technical characteristics.

Now we are working to ensure that dealers not only sell goods from our warehouse, but also form their own stocks, even minimal ones. After all, they also have small clients who may need two to four units of product, and it is not profitable for us to deliver such a volume of goods.

Some problems on the way to gaining new market shares have not yet been resolved. For example, some dealers are still dumping to our detriment. Our reaction depends on whether the dealer is ready for constructive negotiations. First, we freeze supplies and conduct explanatory work. If the partner improves, we resume cooperation, otherwise we deprive him of dealer rights. About 10% of partners dumped, and we have not identified all of them yet. We do not waste effort on detecting them: as a rule, the fact of dumping is difficult to hide, and the information itself reaches us through market participants.

Alexey Karelin graduated from Moscow Medical School No. 8 in 1986. In 1996 he created a company for the production of building materials. Has experience in successfully bringing businesses out of the economic crises of 1998 and 2008.

"Thermomax"- developer and manufacturer of plastering and ventilated facade systems. The company was founded in 1996. Clients include construction companies engaged in the construction and major repairs of residential, administrative and industrial buildings. The commercial department has nine employees.

Official website - www.thermomax.ru

Companies that are market leaders can also grow by increasing their market shares. For many markets, a small increase in share means a fairly significant increase in sales. Many studies have confirmed that as market share increases, profitability also increases. Therefore, enterprises with a very large relative market share receive, on average, a significantly higher return on investment. Influenced by this fact, many companies are trying to increase their market shares to increase their own profitability. There are three ways companies can strengthen their leadership position.

Conquering competitors' consumers. Winning over competitors' customers is no easy task. Sales promotions and price reductions can quickly increase market share, but such gains can only come at the expense of reduced profitability, and they are lost as soon as the promotion stops. The only exceptions are price wars, which are stimulated by market leaders who have greater resources than their competitors. Much more often, gaining market share is achieved through long-term investments in quality improvement, innovation or brand building.

Conquering competitors. Mature leading companies would rather buy competitors than win their customers. Sometimes this can give a company access to new market segments. Much more often, for companies, conquering competitors is a kind of leap that allows them to increase the scale of their activities by acquiring similar enterprises.

Gaining consumer loyalty. Nowadays, schemes for gaining consumer loyalty have grown incredibly. The best that exists is attempts to establish relationships with consumers based on meeting their needs over a long period of time.

Gaining a larger market share automatically increases the company's profitability. But here a lot depends on the strategy of its struggle for such a market share. We know that there are many companies with a large market share whose profits are small, and at the same time, many companies with only a small market share are highly profitable. The costs of acquiring a larger market share may significantly exceed the resulting profits. An increase in market share can lead to an increase in profits only if, with an increase in this share, the cost per unit of production falls or if the price premium assigned by the company covers the costs of producing goods of higher quality.

In addition, in many industries there are only one or only a few large, highly profitable companies, a few profitable and usually more specialized companies, and a large number of medium-sized companies with only small profits.

Thus, it turns out that a company's profitability increases if it gains some market share not on its own, but relative to competitors in the market it serves.

FEDERAL AGENCY FOR EDUCATION GOU VPO

"IZHEVSK STATE TECHNICAL UNIVERSITY"

DEPARTMENT "EPiGN"

COURSE WORK

In the discipline "Marketing"

Topic "Analysis of the product market in order to increase the market share of the enterprise"

Completed by a student of group 6-21-33 (z)

Ivanov A.L.

I checked E.M. Medvedev.

Izhevsk, 2009

Introduction

1. Product characteristics

3. Market segmentation

3.1 Market capacity

4.1 Need analysis

Conclusion

Bibliography

Introduction

The relevance of the topic of the course project “Analysis of the product market in order to increase the market share of the enterprise” lies in the fact that the product is being studied and the product is understood as everything that can be offered on the market for purchase, use or consumption in order to satisfy certain needs. A product is anything that can satisfy some need (physical objects, services, people, businesses, activities, ideas). Once a product is priced and placed on the market, it becomes a commodity. Therefore, the term “goods” is used on an equal basis with the term “product”.

The purpose of the course project is to consolidate the knowledge gained during the study of the Marketing course, based on the knowledge acquired at the university.

To achieve the goal, the following tasks were solved: a search of educational literature was carried out and the structure of the course project was built.

The course project consists of four chapters. The first chapter reflects the characteristics of the product, its features, distribution channels, and the company’s activities in the market. The second chapter reflects customer research, including questionnaires.

The third chapter is devoted to market segmentation.

The fourth chapter included the development of proposals to improve the situation of the product under study.

The object of the study is a product presented on the market (packaged milk).

The subject of the study is to assess the consumer value of the product presented on the market.

The scientific basis of the research is represented by the works of scientists, including: Golubkov E.P.

1. Product characteristics

1.1 Features of the product, distribution channels

Packaged pasteurized milk in plastic bags (0.5 liters and 1.0 liters). Product distribution channels at the OJSC Agrocomplex enterprise are of a traditional nature, characterized by the sale of products through retail stores without intermediaries, following a contractual policy. Choosing a distribution channel is the most important decision of an enterprise. The size and nature of the sales market of the enterprise OJSC "Agrocomplex" is influenced by its location, its geographical location. The enterprise is located 15 km from the city of Votkinsk where its products are sold. Packaged products (milk in bags) have a trademark, its brand allows you to maintain the image and market share, the loss of recognition of the company's products can cause great damage to the company. The packaging of dairy products of the Agrokombinat OJSC enterprise protects the product during transportation, storage, ensures communication with the consumer, demonstrates the product, highlighting it through design, color, and is its last form that the buyer sees before making a purchasing decision. The products are sold through the retail trade network of the store in the city of Votkinsk, 1st May St., 22.

The cost of 0.5 liters of pasteurized milk is 10 rubles, 1.0 liters - 13 rubles. Sold through the retail chain of the Best LLC store. Once a product is priced and placed on the market, it becomes a commodity. Therefore, the term “goods” is used on an equal basis with the term “product”.

In modern conditions, competition is becoming increasingly fierce, and the problem of maintaining its market share for the Agrocomplex OJSC enterprise is becoming increasingly urgent. Competent, clear and effective building of a sales system for your product and ensuring sustainable interest in it from both existing and potential commercial partners, as well as end buyers, is the primary task of Agrocomplex OJSC.

A discount means a reduction by the seller of the previously stated cost of a product or product. As a rule, this is a percentage reduction in the selling price for a previously declared category of goods or a category of buyers who have fulfilled the conditions for receiving it.

Table 1

The mechanism for providing discounts initially included in the contract price of the enterprise OJSC "Agrocomplex"

Discount system	Volume of each purchase batch, rub.	Total amount of purchases, rub.	The amount of cumulative discount for each batch of purchases
Discount system	Volume of each purchase batch, rub.	Total amount of purchases, rub.	V %	in rubles
0% - up to 5000 rub.	4 300	4 300	0	0
3% - from 5001 rub. up to 10,000 rub.	4 000	8 300	3	120
5% - from 10,000 rub. up to 30,000 rub.	12 000	20 300	5	600
10% - from 30,001 rub. up to 50,000 rub.	14 000	34 300	10	1 400
Total for the period	X	34 300	6,18	2 120

At the Agrocomplex OJSC enterprise, a cumulative discount has been established for current and future deliveries, but in this case such a discount is a way of establishing a new price for each corresponding batch of goods, taking into account the specific amount of the cumulative discount at the time of sale of each batch of goods, and not a change in the cost of previously sold goods.

The second group of discounts, when the formed contract price for a unit of goods can subsequently be changed by the parties by the amount of the discount, determines the buyer's debt based on the new price calculated taking into account the discount.

To attract the buyer's attention to the products of Agrocomplex OJSC, it does not use advertising in the media; it believes that recently consumer confidence in the information contained in advertising has been declining.

The modern consumer weighs options more carefully, is better oriented in the retail industry, and purchases products in accordance with the overall life strategy. The enterprise OJSC Agrokompleks believes that the same result, but at a lower cost, can be achieved by creating certain conditions that will push the buyer to make a purchase at the moment when he is already in the store and sees the product. It is also important that the impression of goodwill arises. This requires accurate and timely information, polite and competent staff, quality products, and a variety of services. In order to create such conditions, the following merchandising techniques are used: arrangement of goods on shelves, lighting.

Correct and rational arrangement helps the buyer to navigate the variety of products offered without much time, makes it possible to see the goods on sale and not be distracted by questions from the seller.

Favorable areas for the sale and placement of goods are areas near the cash registers, shelves on the right side of the flow of customers, as well as shelves located at a distance of approximately 150 cm from the floor (at the level of the buyer’s eyes and hands). They are the most convenient and provide the bulk of any store's sales. Products located on the top shelves sell much worse, and very few people buy products from the bottom shelves. To increase sales volume, merchandisers place the cheapest goods on the lower shelves, and the most expensive ones at a level of approximately 150 cm from the floor, since with this placement they will always be in the field of view of consumers. Children's products are placed on the lower shelves, as well as on stands near the cash registers. Unfavorable areas for the location of goods include sales areas on the left side of the flow of customers, corners of the store and areas near the entrance.

The goods in the Best LLC store, where dairy products of the Agrokompleks OJSC enterprise are sold, are placed according to the principle of complex display, i.e. goods of similar purposes are displayed in one place. It is monitored to ensure that there is no crowding of goods from different brands.

Intense spot lighting is used and the product being put forward is emphasized, avoiding monotony, and individuality is given to the display of the product. Halogen lamps are used, the lighting can be very different, the only question is its balance.

1.2 Activities of the enterprise on the market

The basis for the financial results of the enterprise OJSC "Agrocomplex" is revenue and sales volume. When assessing revenue dynamics, the rate of its change is compared. The volume of milk sales for 2007 by the enterprise OJSC Agrocomplex is presented in Table 1.

Table 1

Sales volume for 2008

Table 1 shows that the cost of one liter of milk did not change during 2008, the price level depended on the possible scale of production and on sales volume. The volume of milk sales in the first quarter amounted to 7,000 liters, in the second quarter - 6,000 liters, in the third quarter - 10,000 liters, and in the fourth quarter - 8,000 liters; in total, 31,000 liters of milk were sold in 2008. Total revenue for 2007 amounted to 403,000 rubles.

Product policy should be aimed at the future and take into account that all products, regardless of their success, are mortal, i.e. sooner or later it will be necessary to use the existing product distribution system more effectively. To do this, it is necessary to conduct observations on the product; the observation sheet is presented in Table 2.

And so, from observations it is clear that the enterprise OJSC "Agrokompleks" is trying to maximize the efficiency of the sales system it has created, but buyers make it clear to the company that this product does not have sufficiently significant distinctive advantages of its products in terms of the quality of other milk producers, it is not enriched with iodine, fruits , high fat content, etc. The distribution channel of the enterprise OJSC "Agrokompleks" is traditional in nature, and sells goods through wholesalers who deal with retail stores. The enterprise OJSC "Agrocomplex" uses discounts and advertising. As a result of fierce competition, the Agrocomplex OJSC enterprise must strive for technological breakthroughs to respond to the changing characteristics of consumers and changes in lifestyle. Good long-term planning of new products requires: systematic research and development, linking the requirements for new products with the capabilities of the Agrocomplex OJSC enterprise. A graphic representation of the activities of the enterprise OJSC "Agrokompleks" on the market is presented in Fig. 1

market consumer channel product distribution

Fig.1. Activities of the enterprise OJSC "Agrokompleks" on the market

2. Buyer research

2.1 Questionnaire

During the survey, 20 people were selected by age category (25 - 60 years). The survey results made it possible to rank factors according to the degree of their influence on sales volume. The survey results are presented in Table 3.

Table 3

Question	Answer
Your income	On average 6000 rubles. per month
Assistance of sales staff in choosing dairy products (manufacturer)	No
Orientation of the potential consumer to the product offer (is the level of visual and sound advertising sufficient)	Low level of image advertising in order to form preferences
How often do you buy dairy products?	Two times a week
Price level (expensive, cheap, etc.)	The price is optimal, consistent with competitors
Name the brand of milk manufacturer that you usually buy: OJSC "Agrokompleks" LLC "Olga" LLC "Porozovo"	I don’t attach any importance, there is little information about the manufacturers
Reliability of packaging	Often breaks, not durable

THANK YOU! 12/15/2007

From buyer research it is clear that the buyer does not give priority to the product of the Agrocomplex OJSC enterprise, its packaging is unreliable, and the level of image advertising is low in order to form a preference. Taking into account the customer survey, it is also clear that the buyer has a need for this product and there is no price barrier.

The success of a commercial idea depends on the created emotional incentives for purchase and the willingness of consumers to perceive the product as necessary. A high sales rate and degree of product recognition indicate the effectiveness of a commercial idea.

3. Market segmentation

3.1 Market capacity

Segmentation allows you to identify homogeneous parts (segments) of the market under study and detail the analytical work in relation to the characteristics of buyer groups. During the analysis, it is necessary due to the diversity of characteristics of the products offered, their consumers, and national characteristics of the markets. Geographical, demographic, socio-economic and behavioral criteria are used to segment the consumer goods market. The type of business of the enterprise OJSC "Agrocomplex" is production, agricultural industry, the size of the business is medium. The location of the business is Votkinsk and Votkinsk district. Wholesale customers are provided with discounts. Market share of the enterprise OJSC "Agrocomplex" in 2007. A graphical representation of the market share of the enterprise OJSC "Agrocomplex" is presented in Fig. 2.

1. OJSC "Iyulskoe" 31%, 2. LLC "Olga" (20%), 3. LLC "Porozovo" (15%), 4. OJSC "Agrocomplex" (11%), 5. LLC "Babino" (23 %)

Fig.2. Market share of the enterprise OJSC "Agrokompleks"

Market segmentation has the ultimate goal of selecting target segments that best correspond to the capabilities of the Agrocomplex OJSC enterprise and the peculiarities of market development. The success of product sales is largely determined by the presence of well-organized, controlled sales channels and means of communication with consumers, or, at a minimum, the possibilities for their development. Lack of prospects in this area (capture of the product sales network by competitors, lack of effective means of sales volumes.

Unreasonably large or small volumes of production and sales may cause a reduction in market share.

The approximate market capacity was obtained based on the results of a telephone survey.

Telephone survey is a fast method with a high level of quality of information received. This method is quite inexpensive, the answers are short, but the problem here is that there may be a refusal to answer.

The telephone survey map is presented in Table 4, Appendix 2. 20 telephone network subscribers were surveyed.

4. Development of proposals to improve the situation of the product under study

4.1 Need analysis

The process of coordinating consumer demands and organization capabilities takes place in a certain external environment in which marketing activities are carried out. From the point of view of the object of study, marketing research is a complex study. Thus, it is very difficult to separate from each other such areas of research as market, consumer, competitor. The market is unthinkable without competition; consumers form their behavior in a certain market environment. The external marketing environment describes the factors and forces external to marketing that affect an organization's ability to establish and maintain successful relationships with customers. These factors and forces are not subject to direct control by the organization. Milk is a staple commodity - i.e. a product that is purchased by consumers on a regular basis. The results of the analysis of the milk demand of the manufacturer OJSC Agrokompleks are presented in Table 5.

Table 5

Analysis results

A sign characterizing a need		Characteristic value	Conclusions and recommendations for improving the position of the product on the market
Level of need		Physiological	The market is stable, both price and product competition are necessary
Satisfaction level		Complex of goods	Targeting different types of consumers through a marketing program is necessary
By the nature of the barriers to meeting needs	Psychological			Communicate the distinctive features of the product in each consumer segment and maintain their image
Level of fundamental satisfaction	Not completely satisfied			Solutions are needed to promote products, including a set of advertising tools, where the consumer carefully studies the information, establishes several alternatives, selects the best one, and makes a purchasing decision. Identify how the decision to purchase a given product was made (to understand who should be targeted with marketing activities)
According to the specifics of satisfaction	Universal			In this case, it is necessary to measure the magnitude of potential demand and develop a new product that satisfies it. When there is hidden, potential demand, developmental marketing is used
Mass distribution level	Universal			It is necessary to sell it in all suitable retail outlets, different for different segments; it is necessary to expand the assortment capable of diversifying products, focusing on different consumer requirements and stimulating purchases.
By elasticity	Elastic			Maintaining stability of price levels, maintaining proper image
Level of penetration into public consciousness	Basic			All appropriate media - different for different segments
Level of opinion	Socially neutral			If you are only interested in increasing sales, you need to think about creating a “good” image

The product concept is based on the fact that consumers favor a product with the best consumer properties, so the organization must continuously improve it. However, we must always remember that consumers do not need this product as such, but a solution to their problems with its help. Moreover, even an improved product will not make it to market if the manufacturer does not take measures to make it more attractive through design, packaging and price, if it does not organize product distribution through convenient distribution channels, does not attract the attention of those who need this product, and will not convince these people of the superior qualities of this product. In other words, this concept can lead to “marketing myopia.”

Conclusion

From the marketing research conducted, the following most important areas of consumer research can be identified:

attitude towards the company itself;

attitude (opinion, preferences) to various aspects of the company’s activities in the context of individual elements of the marketing mix (the company’s released and new products, the characteristics of modernized or newly developed products, pricing policy, the effectiveness of the sales network and product promotion activities - what is often called individual tools marketing activities);

level of satisfaction of consumer requests (consumer expectations);

consumer intentions;

making purchasing decisions, determining the structure of the purchasing center;

consumer behavior before and after purchase;

consumer motivation.

One of the most important tasks of effective and successful management of the enterprise OJSC "Agrocomplex", without a doubt, is the constant stimulation of consumer demand and thereby increasing sales volume. The main role in this belongs to the pricing mechanism, namely its tactics.

Bibliography

1. Golubkov E.P. M.: FiS., 2005. - 420 p.

2. Kotler F Fundamentals of Marketing. M.: Progress 2000

3. Porshnev A.G., Rumyantseva Z.P. and others. Organization management. M.: Infra, 2005. - 540 p.

4. Shulygina O. Merchandising: increasing sales volumes in retail trade // Financial newspaper. Regional release. No. 44, 2007

Applications

Annex 1

OBSERVATION SHEET FOR THE PRODUCT MILK

Object of observation: name of the store LLC "BEST"

Date of observation: 12/12/2007 to 12/22/2007

Questions	Answers
Name of product	Product of constant need, not subject to sudden changes
Manufacturer JSC "AGROCOMPLEX"	The company is protected by a trademark, recognizable by the buyer
Product Features	The product is divisible, liquid. The product is packaged in cellophane packaging, it demonstrates the brand, the composition of the product, highlights the design, and color.
Terms of sale WHOLESALE AND RETAIL
Availability of service for the product	Packaged in polyethylene packaging, which protects during transportation, storage and handling
Advertising at the point of sale	Only the manufacturer is indicated
The price of the product	13-00 rub. / liter
Volume of sales	700 liters

Total observations - 10 Performer Ivanov A.

Appendix 2

PHONE SURVEY CARD

Subscriber 66663 Votkinsk, Udmurt Republic.

ANSWER - NO

ANSWER - I BUY MILK 2 TIMES A WEEK, WITHOUT FOCUSING ON THE PRODUCER, WHAT MILK IS AVAILABLE IN THE STORE, THAT'S WHAT I BUY.

PHONE SURVEY CARD

Subscriber: 69999 Votkinsk, Udmurt Republic.

Hello, I beg your pardon, I would like to hear your opinion about the products manufactured by Agrokompleks OJSC:

did you know that Agrokompleks OJSC is a manufacturer of high quality dairy products?

ANSWER - YES, I KNOW THIS MANUFACTURER, BUT I CANNOT SAY ANYTHING ABOUT THE QUALITY OF ITS PRODUCTS.

How often do you buy dairy products produced by Agrocomplex OJSC? If not, why not?

ANSWER - I BUY MILK 2 TIMES A WEEK, BUT MAINLY PRODUCED BY OLGA LLC.

THANK YOU! ALL THE GOOD, YOU HAVE HELPED US VERY MUCH!

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