The achievement of any corporation depends on certain aspects like the determination and commitment towards business dealing. The successful corporation chosen for the proposed study is the Oregon Paints industry in USA. The area selected for the proposed business is Illinois, Airlington Heights in USA. It is one of the leading simple and small business industries in United State of America The Oregon Paints in USA is a leading paint business house and is among the top ten decorative paint companies in the country.
Each and every one of the paint makers constructs a superior variety of colors. Oregon Paints in USA works in a different method, trust in team work and brainstorming. They greet the productive condemnation from the clients and employees who are related directly or indirectly through the firm. “Businesses began developing quickly in the village of Arlington Heights after it was settled in the 1830s. With the addition of a centralized Illinois-Wisconsin Railroad line, workers and businesses were able to move their dairy products and vegetables through the center of town to Chicago. Today, despite its large daytime population that includes 50,000 workers and 3,800 businesses, one of the keys to the success of Arlington Heights is that the village remains loyal to its small-town charisma“ (Images of Arlington Heights, IL: Economy and industry, 2010, para.3). The business has an exact characteristic of transforming the product brand to a business brand. The business has its focus on the dealers and the clients.
Define the market
Defining the market or analyzing the market is the first step of analyzing the market environment of any business establishment. The size of the market is not fixed. “A market is any one of a variety of different systems, institutions, procedures, social relations and infrastructures where by persons trade, and goods and services are exchanged, forming part of the economy. It is an arrangement that allows buyers and sellers to exchange things” (Definitions of market on the web, n.d, para.2)
The trends in the market
The Oregon Paints in USA has a separate section for the research and development to observe a variety of eye opening accomplishments and capability in various spectrums through innovative ideas with fruitful outcome. The market trend of the paint industries will vary due to the impact of various micro and macro environment factors. Political, social, economical and technological factors are some of the factors that will lead to the changes in market trends of the paint industry. Another thing is that, the emergence of various multinational companies will also lead to changes in the market trends of the paint industry in the area. Due to the changes in the market trends, the current and anticipated needs of the clients also will change. The financial system modifies the outcome through various types of repossession in the economy circumstances. Oregon Paints is the chief makers and have come up glowing in the emerging operating influence and the requirement in the pricing strategies. Competition inside the business is fundamentally price-based; and on the other hand, the manufacture of environmentally welcoming paints has turn out to be a gradually more significant means of differentiating goods. In-depth manufacturing and marketplace research are offered in a rational and reliable format to understand the current and anticipated demand.
The target market is the combination of various consumers, where the business is keenly targeted in focusing the product features, marketing efforts and the merchandising of the product in the market. The target market is the primary element which the market segmentation and the market strategy enthusiastically focus on. “Once your target market is defined through your knowledge of product appeals and market analysis, and can be measured, you should determine whether that target market is large enough to sustain your business on an ongoing basis. In addition, your target market needs to be reachable. There must be ways of talking to your target audience” (How to identify a target market and prepare a customer profile, 2008, para.10).
Common characteristics of the target market
The paint markets that are demanding to accomplish the necessities of the people ally with the common characteristics of the target market that positions them as a collection. The information on the target market helps to be more precise in developing the marketing strategy of the company.
The main characteristic feature of the target market is the demography which they have to consider and the economic conditions that are prevailing within the company. The main constraints that are to be viewed are the age, income, education and the purchasing power of the people. The hobbies and the habits are also to be considered in the market and how various kinds of resources are useful in getting the features from the market. The income and the purchase power is very important as the purchase decision should be much useful for the product to be in the market and in making it a success, the product has to be in the market and the proper analysis has to be conducted.
The population of the area is to be estimated in the study and as our product is paint, we have to conduct an analysis among the household, companies and on other communities in the country. “By analysis the US census bureau results the following of the information are derived from them, the US population consists of the civilians and the military and the household excludes the group quarters population, The weighting is controlled to population estimates as of July 1 (e.g., July 1, 2003 for the 2003 ACS),” ( Housing topics: Differences between the home ownership rate estimates from the American community survey, the current population survey/housing vacancy survey, and the American housing, 2004, para.9).
The data is observed and the result shows an increase in the number of built for the sale and construction sites, which presents an increasing opportunity for the company to have the establishment in the market. “Built for sale (or speculatively built): the builder is offering the house and the developed lot for sale as one transaction this includes houses where ownership of the entire property including the land is acquired (“fee simple”) as well as houses sold for cooperative or condominium ownership. These are the units measured in the New Residential Sales series” (Comparing new home sale and new residential construction, 2006, para.2).
Competition is the term which is the most common one where the product in the market has to face. Any product in the market is supposed to face all kinds of competition in the market.
As the paint industry is a necessary one in the industry, intense competition is also much likely to be there in the industry. Research is necessary to conduct an analysis of the competitors and to understand strategies of the company and the core competencies of the company. By analyzing the products and services which are offered by the competitor, they can develop the firm’s products and can have an innovative approach in developing their products. The import and export market and the business transaction tactics can also be analyzed by the research conducted by the firm in the various operations.
The various competitors identified are 3D, AkzoNobel, Ameron international, comex group.comeron etc.
When conducting research, the competitor analyzes the following information about the competitor which is much vital and that include the,
- Name and type of the products
- synopsis about the operations conducted
- Competitors strength and weakness
- strategies and objectives of the company
- Arising opportunity in the market for the competitor.
“A useful tool for understanding where your company is positioned in relation to competitors is the Competitive Matrix, a tool from the Strategic Repositioning toolbox. To use the matrix, companies identify their top three products/services, then the critical factors for success for those products/services (for example, delivery, quality or price). The company grades itself on the success factors, then identifies three top competitors and grades them as well” (Get smart about your competitors with competitive analysis, 2008, para.6).
The niche market is the one where the product can be given in a manner such that the product is specified in the particular arena and the product has been customized over a wide range of requirements of the customers.
As the product is concerned, the paint companies are in for growth and a lot of the arising opportunities are there. The companies which survived can be made a niche market and opportunity can be created with this product in the US. The company plans to be in a niche market to tap the increased opportunity in the market.
Business people are coming up with fresh ideas for the novel business approaches. These business people will be resourceful and pioneering models. Once the idea for a paint industry in US has started, then it is the further stage to do the feasibility analysis and to formulate the final decision on the viability.
Feasibility analysis is the estimation of a novel design and to find the complexities in doing a chosen task. These include industrial advance and assignment execution. There should be feasibility study on the machinery and structure, financial and official, and operational feasibility studies, which will help in developing the viable decisions for a business.
The feasibility analysis in the small business like paint is having much significance. The Oregon Paint can grow well and can expand its branches all over USA. There will be some factors which will affect the outcome of this industry. It will be mainly related to the environmental factor which is the main thing that will play as the business controlling factor. The political, socio-economic and other technological features also will make the various results in the market space of USA. Like Oregon Paints, there will be many multinational companies which will produce a huge competition in the US market. The business will rise if there will be the new designs in the produced goods. The eco-friendly and long lasting types of paint material are having great demand in the market. The success of the business will be highly depended on the research and development in the Oregon Paints and also with the market research team in Oregon. Illinois is one of the populous states in USA and thus there will be a huge chance in this business. While conducting a feasibility analysis, there will be three interconnected mechanisms: market viability analysis, product viability analysis and fiscal viability analysis.
- Industry/market viability analysis: This is done to find the fundamental basics of the paint industry and the targeted consumers or markets. By this, it will help in getting some essential ideas as a platform for new business and it will also help in investigating possible profitable areas of this new business. There will be some tasks to find the attractiveness of the industry in the market, to examine the growth of the industry in the global market and also the speed in growth. It will be based on the question about the product purchase by the customers. The primary research was conducted through questionnaire or focus groups.
- Fiscal viability analysis: This will clearly check whether the idea for the new business has been taken with confidence. This analysis has to be done before setting a business scheme. “At this stage of the process, a broad financial analysis is sufficient. If the business concept passes the overall feasibility analysis, an entrepreneur should conduct a more thorough financial analysis when creating a full-blown business plan. The major elements to be included in a financial feasibility analysis include the initial capital requirement, estimated earnings, and the resulting return on investment” (Eisenhower, 2004, p.11).
- By conducting the feasibility analysis, there will be better growth opportunities in the paint industrial sector in USA and Oregon has the ability to develop into a large scale business firm in US market.
The paint industry has huge market opportunities and if with a well developed business plan, the Oregon Paints in Illinois can expand and can reach the top spot in the global market. The success of the business is predicted to be sure and it will be affected by some of the environmental and social factors.
|Table Q1. New Privately Owned Housing Units Started in the United States by Purpose and Design.|
|[Thousands of units. Detail may not add to totals due to rounding]|
|Period||One-family units1||Units in buildings with 2 units or more|
|Total2||Purpose of construction||Design type||Square feet||Total||Purpose of||Number of||Square feet|
|of floor area||construction||units per building||per unit|
|Built for sale||Con-||2||5||10||20|
|2005: 1st quarter||369||303||277||38||22||325||44||2,263||2,482||79||30||49||10||10||13||46||1,148||1,273|
|2006: 1st quarter||382||313||292||38||24||333||49||2,272||2,501||82||39||42||7||10||13||52||1,169||1,321|
|2007: 1st quarter||260||202||187||33||20||226||33||2,309||2,528||62||24||38||6||9||9||38||1,194||1,298|
|2008: 1st quarter||162||116||110||23||16||137||25||2,206||2,510||69||17||52||5||5||8||51||1,108||1,170|
|2009: 1st quarter||78||53||50||15||9||71||8||2,106||2,381||36||5||31||4||3||5||25||1,176||1,225|
|2010: 1st quarterr||114||86||81||16||9||102||12||2,151||2,362||20||4||16||2||2||2||13||1,066||1,123|
|A Represents an RSE that is greater than or equal to 100 or could not be computed. NA Not available. RSE Relative Standard Error.|
|S Withheld because estimate did not meet publication standards on the basis of response rate, associated standard error, or a consistency review.|
|Z Less than 500 units or less than 0.5 percent.|
|1Single-family estimates prior to 1999 include an upward adjustment of 3.3 percent made to account for structures started in permit-issuing areas without permit authorization.|
|2Includes one-family units built for rent that are not shown separately by purpose of construction.|
|3Ownership of the entire property is acquired, both land and improvements, not a condominium or cooperative ownership.|
|4Includes units for sale as condominiums or cooperatives; may also inlclude units where ownership of the entire property is acquired, both land and improvements.|
|Notes: Housing units for which purpose of construction or design type was not reported have been distributed proportionally to those for which the information was reported.|
|Quarterly estimates may not add to the annual figures as the latter include late reports and corrections.|
(Table 1. New Privately Owned Housing Units Started in the United States by Purpose and Design, n.d).
Comparing new home sale and new residential construction. (2006). U.S. Census Bureau. Web.
Definitions of market on the web. (n.d.). Google. Web.
Eisenhower, D. (2004). Conducting a feasibility analysis and crafting a winning business plan. Learning Objectives. Web.
Get smart about your competitors with competitive analysis. (2008). WMEP. Web.
Housing topics: Differences between the home ownership rate estimates from the American community survey, the current population survey/housing vacancy survey, and the American housing. (2004). U.S. Census Bureau. Web.
How to identify a target market and prepare a customer profile. (2008). E Small Office. Web.
Images of Arlington Heights, IL: Economy and industry. (2010). Dex Knows. Web.
Table Q1. New Privately Owned Housing Units Started in the United States by Purpose and Design. (n.d.). Web.