Electrical Repairs Marketing Plan 1, Market Analysis

Electrical Repairs Marketing Plan

1. Market Analysis

1.1. Geographical Position

Currently the markets are divided as follows:

Belarus — 50%

Russian Federation — 50%

The market geography of the distribution markets for “ElRem” JSC can be prioritised as follows:

1.  The Republic of Belarus

2.  Other CIS countries.

The priorities have been determined judging by the industrial development of the regions, because the customers are, first of all, the industrial companies, and also judging by their remoteness. Table 1 shows the percentage ratio of the major distribution market capacities to the production offered.

Table 1

1.2. Distribution Market Boundaries

At the first stage of the production arrangement it is envisaged that the main customers for the “ElRem” JSC products will be the automobile (40% ), tractor (40%¯) and machine tool producing (20%Û) plants. In future it is planned to add the textile and garment enterprises as well as those manufacturing various mechanisms, including labour saving devices, into the number of the company customers.

The results of the marketing research done by “ElRem” JSC have shown the availability of the following potential customers in the Republic of Belarus which are reflected in Table 2. Currently the distribution of valve electrical drives to these enterprises is already going on. The planned product purchases are given according to the company production plan for 1997.

Table 2

Besides, the products are delivered to the company in Zlatoust manufacturing industrial vacuum cleaners. Its demand for the valve electrical drives will be 775 units in 1997. Out of all the CIS countries the closest contacts have been established with the Kazakhstan washing machines plant. This company needs for 1997 are assessed at 1,500 valve electrical drives.

1.3. Segment Market Analysis

The following industrial market segments can be determined regarding the application of the plant products:

automobile industry (40%),

tractor industry (40%¯),

machine tool industry (20%Û).

In future:

automobile industry (35%),

consumer goods (35%),

tractor industry (10%),

machine tool industry (20%).

1.4 Demand Study

Table 3 shows the general overview of the market segments with the envisaged product consumption volumes and projected development trends. The currently located potential customers for “ElRem” JSC products with whom close business contacts have been already established are understood as a segment  in Table 3.

Table 3