Introduction
Marquee products limited is an idea based on current trends in the world. Marquee products limited aims to venture into the hand sanitizer’s market that has exponentially grown over the period between the end of 2019 and the first half of the year 2020. The market for hand sanitizers has grown as a result of the corona pandemic. The supply, however, has not been matched by produces creating a shortage. The company manufacturing operations will be set up in Hong Kong due to the already ripe market. However, the company has ambitions to begin supplies to other parts of the world as time progresses. Labor and raw materials for the manufacturing phase will be sourced within the locality of Hong Kong. Distribution of the products will be through main outlets such as supermarkets and malls.
Data collection techniques
Data backed decisions for determining the viability of any business idea are very important. Market studies and preferences of the customers need to be identified from the data. These preferences will help to create customer satisfaction among the targeted customers and will help them feel like a part of the company’s brand. Due to the ravaging effects of coronavirus, most cities and locations have been locked down as a measure of trying to control the disease. The spread of the disease through human contact makes it impossible to use face to face interviews for data collection. To conduct a market study the company should employ online surveys. Before rolling out of the company it will be important to acquire sales numbers across the city. Such data can be acquired through liaising with major outlets such as the malls and supermarkets to get a view of how the market is.
The company should also set up polls do determine the views of the people on their satisfaction with current supplements to the company’s products. Observation of the market is also very important. The company’s aim is not to thrive in the short term only but to thrive in the future. Data on market trends is important especially in the determination of product distribution logistics. Although the use of interviews is limited, making the questionnaires that contain the interview questions available online might help in the collection of data.
Identification and solving problems by applying suitable tools
The market poses the threat of uncertainty. The uncertainty is due to the probability that the market will exponentially shrink after the coronavirus cure is found. However, there is still hope that the impact of sensitization on hygiene standards on the masses will keep demand for the hand sanitizers high. To determine the impact of any of the following outcomes happening, sensitivity analysis is required.
The company also aims to grow its production and hence increase supply in the future. The company, therefore, needs to assess whether the market will be behaving similarly to the way it is behaving today. To determine the direction of the linearity of market trends, multiple regression can be used with various weights being applied to various characteristics of the market to determine the future properties of the markets.
Different groups have different views and different characteristics of the market interact vastly. There is a problem in the quantification of these differences. However, the ANOVA analysis provides a basis or the analysis of means among various groups or characteristics. These differences in means help in the separation evaluation of different preferences in the market.
The amount of competition that the product is likely to face from established giants in the market needs to be analyzed. There are some conditions where a monopoly exists. In such instances, it is very difficult to access the market. Analyzing frequencies of sales of different brands would assist in getting a view of market shares held by other companies to determine suitability in the market.
Analysis and interpretation of the results
The data collected from these tools include both qualitative and quantitative variables. Mixed methods of analysis should be applied to these data. The direction of the linearity of the data should be analyzed. Linearity indicates the suitability of a simple regression model on the data. The regression helps forecast future sales of hand sanitizers. The sensitivity analysis of the investment to the company needs to be performed. Changes in the experimental model for forecasting sales and investment help in the determination of the effect of unseen occurrences in the market. To determine the extent of the interaction between more than two variables in the data will require the application of the ANOVA analysis. A comparison between various views presented in the data will also be carried out through the ANOVA to determine the difference in means between them.
The situation in the market is a point of interest before opening up any company. Effective distribution techniques need to be implemented. Distribution chains that will best suit the company need to be chosen. From the analysis of sales from different suppliers of the hand sanitizers, the suppliers who record the highest amount of sales are the best to choose. The company should make these suppliers the main distributors of their products. However, other suppliers also need to be considered.
Comparison of different results
Negative linearity or linearity close to 0 indicates that the sales in the market are likely to dip in the future. For this case setting up the company will be a highly risky venture which may not be suitable. However, linearity with an index of over 7 indicates increased sales over time and into the future. Sensitivity analysis is highly likely to yield negative results due to the driving force of demand being artificial. In this case, starting the company would likely generate losses.
Final suggestion
Analysis of various factors in the markets and in sales will help make a data-driven decision on the viability of setting up the company. In case of negative results, the idea of the hand sanitizer company should not be implemented. If all the factors indicate that the company is likely to thrive in the future, then startup will be a very profitable venture. Diversifying the market will be important in order to guarantee the success of the company even after the subsiding of the effects of the coronavirus. The market is highly favorable in the short term.