Market Research Report: Eco-Fone Expansion Strategy

Desklib provides solved assignments and past papers to help students succeed.

-------------------------------------------------------
REPORT FOR ECO-FONE
Date: June 20, 2019

Report for Eco-Fone 2019
Table of Contents
Introduction...................................................................................................................................2
1. Analysis of Issues for Eco-Fone Smartphone.......................................................................3
1.1 An Overview of the Mobile phone market in the UK.........................................................3
1.2 Forecasting the UK Adult Smartphone use.........................................................................5
1.3Smartphones - A potential market for older customers.......................................................7
1.4Feasibility of Expanding business to Kingston using Pros and Cons table.........................8
1.5 Costs of a New Building.....................................................................................................9
1.6Testing the Possible Difference in Net Takings in the Two Shops....................................10
1.7Customer Satisfaction........................................................................................................11
1.8 Quality Procedures............................................................................................................12
1.9 Conclusions &Important Findings....................................................................................13
2. References...........................................................................................................................14
1

Report for Eco-Fone 2019
Introduction
Eco-Fone is a company who is engages in mobile manufacturing services in which wants to
expand its business activities. To identify the potential market segment company want to
analysis the market of United Kingdom. To identify major opportunity in the market company
conducted a market survey. During the study, the company used various tools and technique to
identified key finding which can be helpful in judgment building of the company in the
expansion process. During the assignment, a comprehensive study is conducted which provide
a broad image of the Smartphone market in the United Kingdom. The whole study had the
prime objective to identify the potential of the market for expansions of Eco-Fone in the
market.
2

Report for Eco-Fone 2019
1. Analysis of Issues for Eco-Fone Smartphone
1.1 An Overview of the Mobile phone market in the UK
The Smartphone is the essential need of human in today's routine life. This tool or gadgets are
highly impacting on the lifestyle of the human. The United Kingdom is the place where the
things are highly dynamic in the market and Smartphone are newly introduced in the market.
As the United state is the developed country which had high literacy level in their citizen which
make them dominating the market for Smartphone for manufacturing companies (Deloitte,
2017). According to the survey conducted by Deloitte in 2017, it is identified that mobile and
Smartphone had highly increase in the use and also new service are introduced by
manufacturing companies which supports in better working for routine activities. Further, the
study identified the potential customer in the market as approx. 15.88 lacs employee in the
United Kingdom Uses Smartphone for their routine activities. This report indicates over 91%of
usages of Smartphone in the market by the employee of United Kingdom which means market
had a high rate of demand of Smartphone in the market and this can be the opportunity of
Smartphone manufacturing companies. Companies need to focus on the middle budgets and
lower grade of the employee as they are more use Smartphone in the market and also the
potential market segment for the company.
3

Report for Eco-Fone 2019
Eco-Fone had the market opportunity to target the middle-income population so that they can
paddle on the trigger as there is dramatic growth in the use of Smartphone in United
Kingdome. The company need to conduct the market scanning so that they are unable to
understand their targeted market and also able to achieve the opportunity in the market for the
company,
4

Report for Eco-Fone 2019
1.2 Forecasting the UK Adult Smartphone use
Year Percentage
laptop Smartphone Tablets
2012 73 52 16
2013 76 62 36
2014 75 70 50
2015 79 76 60
2016 76 81 63
2017 78 85 68
Linear regression is used to analyze the market data of the company which helps in
identification of usage of smart gadgets across the year for the market of United Kingdom. The
company identified from the study is that Smartphone is the gadgets which are mostly used in
the market in 2017 and after Smartphone laptops are widely used in the United Kingdom.
Linear regression portrait a positive growth in the usage of Smartphone across the year which
can be an opportunity for Eco-Fone as market indicates positive growth.
5

Report for Eco-Fone 2019
Linear regression is an effective statistical tool which helps in identifying the trends among the
information collected from the market but it is not able to justify the impact on substitute
product for the company. Linear regression helps in identification of growth o Smartphone but
it is not able to identify the impact on demand in laptops on Smartphone so that management of
the company can use regression analysis to identify the demand between laptop and
Smartphone in the market.
6

Report for Eco-Fone 2019
1.3 Smartphone - A potential market for older customers
The company wants to enter two new markets which are situated in the United Kingdom. As
company conducted the market research and also scan environment which helps them in the
identification of potential market segment in which company can explore their business
activities so that they are able to generate the revenue in their business activities.
In recent news by BBC news indicates that the United Kingdom is the place where mobile
manufacturing company is struggling for their market place as the UK is the highly competitive
market for digital gadgets (Techsciresearch, 2012). BBC news further indicates the new market
in which Smartphone Company can explore their product which is Old age. It is identified that
in recent time period there is a dramatically improved in the usage of Smartphone in old age
people in the United Kingdom. Nowadays Smartphone is more come from the feature which
facilitated the routine activities of old age citizen which increase the trend of usage of
Smartphone in old age generation of United Kingdom (BBC, 2017). BBC news also indicates
that approx 71% of payment gateways are conducted by Smartphone in the United Kingdom.
In recent Smartphone manufacturing company launched their mobile phone which had new
features like the big screen and Google assistant which helps in making ease of doing routine
activities for old age people. This kind of features increase the usability of Smartphone in old
age people and resulted in a new market segment for the company in which they operate its
business activities.
7

Report for Eco-Fone 2019
1.4Feasibility of Expanding business to Kingston using Pros and Cons table
Should we expand our business to Kingston?
Pros Score/10 Cons Score/10
Increased customer
reach
10 Limited accessibility 8
Increased profit 10 Limited quality 10
Reduce competition 4 Loss of control 7
Increase resources 8 Increased capital requirement 9.5
New employees 8.5 Increased staff 8.5
Improve brand image 7.5 Increased pressure 8
Consumer awareness 8.5 More expenditure on infrastructure 8
Increased sales 9.5 More funds 8
Total pros 66 Total cons 55
Average pros 8.25 Average cons 8.375
The company had desire of expansion of their business activities so that they need to consider
all factor which can impact their business performance in the market and also helps in
formulating strategic decision (Kokemuller, N., 2019). Balance scorecard can be a good tool
which helps in monitory every factor which had a potential impact on the business activities or
expansion decision of the company. Eco-Fone needs to consider all the merits and demerits of
expansion in the market which can impact on the performance of the company in the new
market of United Kingdom. As the company wants to expand there is a certain limitation
which management need to identify and also need to consider the positive factor which can
help in maintaining their business process in the new market. Business needs to consider
financial, production and other resources which can limit business practices and also help in
revenue generations.
8

Report for Eco-Fone 2019
1.5 Costs of a New Building
A. The company wants to attract financial fund from the market for 3, 50,000 for 15 years for
which they need to repay monthly instalment which is as follows -.
Determinations of monthly installment of a mortgage loan for expansion
Loan amount 350,000
Loan term 15 year
Payment per year 12 year
Rate of interest 7%
Monthly Instalment payment – £ 3,146
B. Some of the financial institutions from the United Kingdom are listed below which
provide mortgage loans to the company.
9
HSBC Bank HALIFAX
Principality
Building
Society
Godiva
Mortgages
TESCO Bank NATWEST

Report for Eco-Fone 2019
1.6Testing the Possible Difference in Net Takings in the Two Shops
Two-tailed Z test
In this Scenario, Company can use two-tailed Z test which helps in assessing the
possibility of significant difference among the net taking of two shops. Eco-Fone needs to
identify the similarity among the net taking which guides in formulating of strategic
decision to take major actions for improvement in business practices.
Hypothesis
*Alternative Hypothesis = H1> 0.05
*Null Hypothesis = H0<0.05
Alternative Hypothesis = Net taking from the shops are not the same for the company.
Null Hypothesis = Net taking from the shops the same for the company.
Information’s given
Particular Amount Amount
Mean £100 £90
Standard Deviations £20 £40
Sample Size 40 40
Formula -
Z Test = 1.4142
Two-tailed provide details related to the positive and negative aspects of the result. From
the analysis it is identified that the Null hypothesis is discarded from the study as the Z
value from the analysis is 1.41 which is lower than 1.96 (Xlstat, 2017). As the null
hypothesis is accepted which means there is not significance relation among the variable
or net taking of two dissimilar shops in the United Kingdom. This study finds that there is
a significant difference among the net taking from the dissimilar shops in the United
Kingdom due to environmental and market factors
10

Report for Eco-Fone 2019
1.7Customer Satisfaction
Question 1
Answer Frequency Answer
1 25 More than One year
2 20 Between 6 month to One year
3 12 Between 3 month to Six Month
4 27 Between 1 month to 3 Month
5 19 Less Than one Month
Mean 20.6 Between 6 month to One year
Question 2
Answer Frequency Answer
1 8 More than 5 Years
2 27 Between 3 to 5 Years
3 37 Between 1 to 3 Years
4 30 Between 6 to 12 Months
5 1 Less Than 6 Month
Mean 20.6 Between 3 to 5 Years
Question 3A
Answer Frequency Answer
1 30 Poor
2 52 Fair
3 14 Good
4 7 Excellent
Mean 25.75 Poor
Question 3B
Answer Frequency Answer
1 10 Poor
2 47 Fair
3 30 Good
4 16 Excellent
Mean 25.75 Good
11