Total Annual Revenue Average

Running head: MARKET ANALYSIS
MARKET ANALYSIS
Name of the student
Name of the university
Author note

1MARKET ANALYSIS
Introduction to the organization
The t-shirt manufacturing organization is headquartered in US and is specifically focused
on improving the marketing operations with the purpose of improving their market share in the
economy. Moreover, the organization aimed to undertake a licensing activity with Disney,
Michael Godard and Marvel. The licensing activity of the organization and the cause marketing
technique would support the same in improving their market scope while making expansions in
the competitive global locations. The overall study would enable the organization in conceiving
an idea on the market prospects.
Distinguishing characteristics
The distinguishing characteristics of the business proposition is based on the licensing
activity that is being planned by the organization. The proposition that would be provided by the
organization would be the merchandise of Disney or Marvel which would support the same in
attracting the attention of the prospective customers. Moreover, the quality of the fabric that
would be used by the organization for the t- shirts would propose a comfort zone for the users,
while supporting the business in gaining a competitive edge over the existing players in the
market. Musalem et al. (2017) stated that the changes in the buying behavior of the customers
have resulted to alterations in the existing operational processes. In this connection, the
organization is planning to develop a cause marketing technique where the organization would
be taking the initiative of planting a tree for every purchase.
The cause marketing technique would allow the organization in drawing the attention of
the target customers while operating in the different markets. Sale, Mesak and Inman (2017)
stated that the cause marketing technique supports an organization in increasing the sales volume

2MARKET ANALYSIS
through active indulgence of the millennial population. The millennial population are more
inclined towards the resolution of environmental issues. In this connection, the cause marketing
technique, through planting a tree for every purchase, would allow the organization in improving
the sales volume.
The distinguishing factors of an organization plays an important role in empowering their
competitive benefit over the existing market competitors. In this connection, it has been observed
that the chief distinguishing factors for the organizational proposition of t- shirts would be the
quality of the fabric, the licensing activity and the cause marketing technique (Sombultawee and
Boon-itt 2018). The distinguishing factors would support the organization in improving the
uniqueness of the propositions while improving the capability of the business in retaining the
market position while gaining a competitive benefit from the activities.
Size of the primary target market
The primary target market for the concerned venture will be the millennial population
whose age ranges between 23- 35 years and are more driven towards experience based buying
approach. In this relation, it has been observed from the reports of US Census Bureau that there
are around 83.1 million millennial in US, representing one quarter of the nation's population (Fu,
Cheng and Yi 2019). The organization would target 1/5th of the total population of millennial
which might be approximately 16 million millennial from different parts of the economy. The
greater size of the target market would ensure improvements in the sales volume while
enhancing the marketing scope. The dependence of the millennial population on different
technologies would contribute to the uninterrupted functioning of the systems in accordance with
the demand of the customers. The major aspects of change in the organizational operations are
based on the effective functioning of the systems in accordance with the needs of the customers.

3MARKET ANALYSIS
The selection of the target market would support an organization in positioning the propositions
while adhering to the common needs of the same. Therefore, the delineation of the size and the
general characteristics of the target market would allow the concerned business in empowering
their sales volume while increasing the viability of the operations.
Market share that can be gained
The market share that might be gained by the concerned venture while operating in the
US markets are reliant on the competition that might be encountered by the same from 181 other
existing companies (Brock 2018). The market share of an organization is mostly influenced by
the sales volume and the position of the competitors in a market. Therefore, the organization
might possess a lower market share while introducing the propositions. However, it might be
assumed that the organization’s market share would eventually grow with the unique
propositions by 4% within the next 2 years. The estimation of the growth of market share will be
solely based on the sales volume and the increased rate of profitability that is gained by the
organization while retaining the trust and loyalty of the target customer base.
The improvement in the market share of the organization will be specifically dependent
on the increased sales volume and the retention of the customers. Ramanathan, Subramanian and
Parrott (2017) stated that the increase in sales volume of an organization empowers the growth of
an organization. On the other hand, the uniqueness of the t- shirt propositions that are made by
the business would allow the same in drawing the attention of the growing number of millennial
buyers. It would contribute to the added competitive benefit of the venture while increasing the
feasibility of the operations in alliance with the strategic sustenance related objectives.
Therefore, the organization would encounter a growth in the market shares within the next 2

4MARKET ANALYSIS
years of its operations through continuous innovation in the processes, contributing to the
uniqueness of the t- shirt propositions that are made by the same.
Pricing and gross margin targets
The organization will be utilizing competitive pricing measures with the purpose of
upholding the competitive value of the propositions. The estimated gross margin targets will be
based on the sales forecasting (Refer to the appendix). The prices of the Marvel character printed
t- shirts would be US $25, Michael Godard T- shirts would be US$ 24 and Disney t- shirts would
be US$ 22. The expected sales volume is portrayed to grow in an exponential manner which
would enable the organization in gaining competitive benefit over the existing market players. It
has been observed that the implementation of the competitive pricing strategy would enable the
organization in gaining effective control over the existing market players in the business.
Therefore, the application of competitive pricing strategies would enable the business in
improving the margins while increasing the sales volume of the same. The projected sales of the
organization estimates a growth of sales volume within the years which would again contribute
effectively to the margins of the venture by 3% increase. Therefore, the application of the
competitive pricing strategy for the unique propositions would allow the business in improving
the sales volume and the margins as per the common objectives.
Competitive Analysis
The competitive position of any organization is reliant on the uniqueness of the
propositions that are made by the same while operating in the different markets (Bardhan and
Pattnaik 2017). The business operations are specifically based on proposing unique T- shirts that
would hold characters from different famous animated movies and would work as original
merchandise of Marvel or Disney. On the other hand, the competitive pricing and cause

5MARKET ANALYSIS
marketing strategies of the organization would support the same in increasing the sales volume.
It has been observed that the US apparel industry hold a large number of manufacturing firms
that propose similar propositions like the concerned venture. However, the competitive vantage
point of the concerned venture would be based on the quality of the propositions, the licensing
activities and the cause marketing techniques relating to plating a tree with every purchase.
Therefore, the quality of the propositions and the application of competitive pricing techniques
would support the concerned venture in gaining a competitive benefit over the existing market
players.
Regulatory Restrictions
The regulatory restrictions that might be encountered by the organization are related to
the imposition of the Delaware General Corporation Law (DGCL) apart from the environmental
legislations and Employment acts. The legislation monitors and controls the business activities
while addressing the interests of every stakeholder. In this connection, the objective of the
organization of maximizing the profits through different strategies might be curtailed. The
application of the employment legislations in the business context might affect the capability of
the organization in laying off employees to reduce the operational costs of the same. On the other
hand, the environmental legislations critically subdued the organizational operations while
restricting the same to operate freely. The rate of taxation and the customs might again affect the
performance of the venture.
Questions
(Sourced after watching the video in: Abc.com 2020)

6MARKET ANALYSIS
Q: What is the unique proposition that would help you to stand out of the queue of the existing
market players?
A: We are providing the people with a fabric that is rare in the apparel industry apart from the
printing initiatives. Moreover, our licensing activity with Marvel or Disney has provided us with
a privilege of offering the customers with their heroes, as official merchandise. Moreover, we are
supporting a social cause through planting a new plant with every new purchase of our
proposition which will surely increase our sales volume.
Q: How do you expect to achieve a sales of 14,200 by the end of the first quarter in your opening
year?
A: We will be using social media platforms and integrate with Amazon for maximizing the
availability of our products. We are specifically targeting the millennial population who are
mostly driven towards an online buying behavior. Therefore, we believe that the extensive use of
the social media platforms would support us in not only improving the rate of awareness among
the target audience but also ensure increased engagement of the customers. Therefore, we can
expect an increased sales volume even from the first quarter of our activities.
Q: What are the strategies that you would consider if the forecasted sales volume differs from
the actual sales, specifically if the difference is negative?
A: Our Company has already created a contingency plan for any unfavorable situation that might
arise out of any sales activities. In a contingent situation, we will be taking the initiative of
making a market assessment through surveys and thereby induce improvements in the
propositions with the purpose of boosting the sales volume at par with the assumptions.

7MARKET ANALYSIS
Conclusion
Therefore, from the above assessment it might be stated that the new t- shirt
manufacturing organization holds opportunities of market growth due to the imposition of cause
marketing strategies along with their extensive licensing activity with different production
houses. Moreover, the competitive pricing of the propositions and the social media presence
would allow the organization in drawing the attention of the target group of millennial customers
towards their extensive range of propositions.

8MARKET ANALYSIS
References
Abc.com (2020). WATCH: Mark Cuban Asks an Entrepreneur to Change Up Her Product Video
| Shark Tank. [online] Abc.com. Available at: https://abc.com/shows/shark-tank/video/most-
recent/vdka15618598 [Accessed 19 Jan. 2020].
Bardhan, A.K. and Pattnaik, S., 2017. Effect of cross-functional integration between operations
and marketing on negative critical incidents. Total Quality Management & Business
Excellence, 28(11-12), pp.1357-1377.
Brock, J.K.U., 2018. The Evolution of Marketing Technology. Handbook of Advances in
Marketing in an Era of Disruptions: Essays in Honour of Jagdish N. Sheth, p.343.
Fu, C., Cheng, S. and Yi, Y., 2019. Dynamic Control of Product Innovation, Advertising Effort,
and Strategic Transfer-Pricing in a Marketing-Operations Interface. Mathematical Problems in
Engineering, 2019.
Musalem, A., Olivares, M., Borle, S., Che, H., Conlon, C.T., Girotra, K., Gupta, S., Misra, K.,
Mortimer, J.H., Vulcano, G. and Zheng, F., 2017. A Review of Choice Modeling in the
Marketing-Operations Management Interface.
Ramanathan, U., Subramanian, N. and Parrott, G., 2017. Role of social media in retail network
operations and marketing to enhance customer satisfaction. International Journal of Operations
& Production Management, 37(1), pp.105-123.
Sale, R.S., Mesak, H.I. and Inman, R.A., 2017. A dynamic marketing-operations interface model
of new product updates. European Journal of Operational Research, 257(1), pp.233-242.

9MARKET ANALYSIS
Sombultawee, K. and Boon-itt, S., 2018. Marketing-operations alignment: A review of the
literature and theoretical background. Operations Research Perspectives, 5, pp.1-12.

10MARKET ANALYSIS
Appendix
Sales Forecasting for 1st Year:-
Products Price
per
unit
1st month - 4th
month
5th month - 8th
month
9th month - 12th
month
Total
Annual
RevenueAverag
e
number
of
custom
ers
Reven
ue
Average
number
of
custome
rs
Reven
ue
Averag
e
numbe
r of
custom
ers
Reven
ue
Marvel T- shirts $
25.00 5,000
$
125,0
00.00 5,500
$
137,50
0.00 4,700
$
117,50
0.00
$
380,000.00
Michael Godard t-
shirts
$
24.00 5,500
$
132,0
00.00 6,000
$
144,00
0.00 5,000
$
120,00
0.00
$
396,000.00
Disney t- shirts $
22.00 3,700
$
81,40
0.00 7,000
$
154,00
0.00 5,600
$
123,20
0.00
$
358,600.00
Total
14,200
$
338,4
00.00 18,500
$
435,50
0.00
$
360,70
0.00
$
1,134,600.0
0
Sales Forecasting for 2nd Year:-
Products Price
per
unit
1st month - 4th
month
5th month - 8th
month
9th month - 12th
month
Total
Annual
RevenueAverage
number
of
customer
s
Reven
ue
Average
number
of
customer
s
Revenue Average
number
of
custome
rs
Revenu
e
Marvel T-
shirts
$
25.00 9,500
$
237,50
0.00 10,000
$
250,000.
00 15,000
$
375,000
.00
$
862,500.00
Michael
Godard t-
shirts
$
24.00 7,000
$
168,00
0.00 9,700
$
232,800.
00 13,000
$
312,000
.00
$
712,800.00
Disney t-
shirts
$
22.00 11,300
$
248,60
0.00 12,900
$
283,800.
00 15,600
$
343,200
.00
$
875,600.00
Total
27,800
$
654,10
0.00 32,600
$
766,600.
00 $1,030,
200.00
$
2,450,900.00

11MARKET ANALYSIS