Report on the Market Structure and Features of Paragon Polymers

This report provides a comprehensive analysis of the market structure of Paragon Polymer Products Pvt Ltd. It begins with an introduction to market structure, emphasizing factors like market position, competitiveness, and pricing. The main body of the report delves into Paragon Polymer's market structure, examining its size, strength, business environment, strategies, and sales. It explores the key features of Paragon's market structure, including its expansion strategies, laboratory testing of raw materials, focus on sustainability, and plans for new plants. The report also analyzes Paragon's production, pricing, and product strategies, including the use of psychological pricing and promotional tools. Finally, it includes a comparison of Paragon's market structure with that of Nike, highlighting differences in their approaches and strategies, and concludes with a summary of the key findings.

MARKET STRUCTURES

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Market structure of Paragon Polymer products Pvt Ltd..............................................................1
Main features of Paragon's market structure...............................................................................2
Production of price and products ...............................................................................................3
Comparison of market structure .................................................................................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Market structure is considered as a combination of different properties and characteristics
of the market (Chung and Chuwonganant, 2014). Various factors associated with it includes
market position, competitiveness, pricing etc. The report is about discussing the market structure
of Paragon Polymer products Pvt Ltd. and its basic features that they are dealing with. Also, it
involves evaluation of products and pricing within Paragon Polymer products Pvt Ltd. Along
with this, the report also includes the comparison of the market structure of Paragon Polymer
products Pvt Ltd. with that of its competitors.
MAIN BODY
Market structure of Paragon Polymer products Pvt Ltd.
Market structure of any organisation involves factors that play a very essential role in the
overall productivity of the company. Whether it is about pricing of products or its dealing in
market place, all these are considered within the market structure. Paragon Polymer products Pvt
Ltd. is one of the leading manufacturers of rubber footwear, promising people an extended life of
the foot wears. Thus, over the years, they have successfully achieved the trust and attention of
people, helping them in achieving an increased productivity rate. Also, the brand is well
introduced to people for its quality based and well designed foot wears, very well efficiently
getting the attention and interest of people. After successfully achieving a great interest rate of
people in Kerala, the footwear brand expanded its operations in different states of the country.
Basic features of the market structure of Paragon Polymer products Pvt Ltd. are discussed as
under :
Size
Size of an organisation is the driving factor of an organisation. For about 50 – 100
employees are engaged in the business operations of Paragon Polymer products Pvt Ltd in every
store. The brand is classified as one of the largest manufacturing and selling of rubber footwear's.
Strength and Business environment
The greatest strength of Paragon Polymer products Pvt Ltd is their staff and distributors.
The management at Paragon seems so because their staff acts cooperative enough in every single
operation of the company. An interactive enough environment leads to a sort of positiveness in
the environment of the company. Also, the distributors manage all the products etc. in a safe way
so that till the time, they are delivered to the customer, they remain efficient.
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Strategy
All the strategies of Paragon are simple yet helpful. It is because every single raw
material is first tested in laboratories. A combination of synthetic and natural rubber products are
being supplied by Paragon. Along with the manufacturing products, even the packing papers are
also made up of recyclable paper (Farboodi, Jarosch and Shimer, 2017). Therefore, it can be
considered that Paragon deals with a sustainable and healthy production of products, thus this
can minimize some part of risk to health hazards. Paragon tends to provide efficient soles to
people such as of PVC, PU etc. so that their customers can walk safely and comfortably as well.
Sales
The overall sales of Paragon as estimated is about 14,00,00,000 pairs for every single
year. Although there has been observed some sort of fluctuation in the sales in 2017 but the
brand has again achieved the interest of people to a huge extent. Also, the company is ISO 9001
certified, increasing the trust rate of their customers.
Main features of Paragon's market structure
There are enormous features of Paragon that can be considered as attentive and
interesting enough. One of the basic factors is that the company started from Kerala and sold a
variety of products there. After they remain successful there, then they started expanding its
operations in various other parts of company as well such as in Tamil Nadu, Andhra Pradesh etc.
Another important factor is that there are specialised laboratories of Paragon in which there is a
special team that checks in the testing for raw materials that are being afterwards used for
manufacturing of foot wear.
As the brand uses a well quality of rubber in their footwear, so the rubber and other raw
material are being tested in the laboratory where it is being checked that whether the matter is
safe and strong so that it may be comfortable if used in the sandals etc. Along with these, another
feature that acts essential is that the company focuses on providing a bio degradable and also,
maintains an efficient rate of sustainability (Manshadi and Khodayar, 2016). It is because the
firm makes use of recycled paper for the manufacturing of packing material for the foot wears.
So, ensuring and maintaining sustainability can be termed as one of the essential factor of
Paragon because they think on the fact that if they are taking advantage of some natural products,
then the future generations should also take. Therefore, for maintaining an appropriate rate of
sustainability
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, they make use of bio degradable and nature friendly products.
Paragon Polymer products Pvt Ltd is also planning to set up a new plant in Maharashtra.
Although the brand has already expanded its operations in various states but is now planning to
expand in Maharashtra as well. This can also help them to achieve a larger rate of customers
there as well. It is because the brand already has a well popular and leading name. So, its
expansion will be easy enough. So, then there also, the firm can be able to achieve a great set of
customers, thus helping them to attain a higher rate of productivity as well.
Various strategies are also being used by Paragon Polymer products Pvt Ltd in order to
achieve a higher productivity rate. Some basic examples of these strategies include multiple and
psychological strategies, by which Paragon Polymer products Pvt Ltd can be able to sell an
increased range of products, thus gaining a wide range of customers as well. These strategies are
termed as a very interesting way of attaining all the objectives because by such means, the
customers will also stay happy and the firm will also achieve a higher productivity rate that can
help them to achieve a huge competitive advantage in the market place.
For about 12 crores of pairs were sold by the Paragon Polymer products Pvt Ltd last year,
so now the company is aiming to cover about 14 crores of pairs. Also, they are planning to make
involvement of some new strategies such as producing low range footwear's so that they can grab
the attention of people more widely and by this means, they can surely get the better productivity
rates than before. Although the brand is dealing with affordable range of products but still, they
may opt for a lower price range than this also so that more customers will get attracted towards
it. This can be considered as a very essential feature of Paragon Polymer products Pvt Ltd that it
may help them to achieve their target of 12 crores pairs.
Production of price and products
The forte of Paragon Polymer products Pvt Ltd is to provide standard and reasonable
products to their customers. For this, various techniques and strategies are being used within the
firm. Raw materials are being tested in the laboratories to check whether the matter can act
suitable or comfortable for the person. It deals with a variety of sleepers, shoes for men, women,
kids etc. For its production with rubber footwear section, the brand has achieved a huge amount
of attention from people. When the brand expanded its operations from Kerala to other states,
they started developing a new and designed range of products on a regular basis and with this
fact, they achieved a wide range of popularity all over the world. The strategy of Paragon
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Polymer products Pvt Ltd is that on the basis of labour costs, testing, they set the price for every
single product. Also, a wide variety of customers also find the products of Paragon Polymer
products Pvt Ltd affordable enough because all the customers are aware of the durability of their
products, so they can trust the brand. Also, the company sets targets on a yearly basis. A well
known example of this can be considered as the fact that Paragon Polymer products Pvt Ltd has
a target of achieving 5,000 crores by the year 2020. It means an overall increment percentage of
about 25 – 30 %. This can also help the brand to gain more popularity as well. In the year 2016,
Paragon Polymer products Pvt Ltd had a turnover for about 1,400 crores whereas in the year
2017, it was about 1,600 crores. So, on the basis of the satisfaction of customers and their
interest, the firm has set a target of 5,000 crores till the year 2020. Paragon Polymer products Pvt
Ltd also makes involvement of some pricing strategies so that more of their products can be sold.
Some well known pricing strategies that are being used by them involves psychological
pricing technique. It means that Paragon Polymer products Pvt Ltd tends to rate the product as
$3.89 instead of $4.00. This is considered as a very effective strategy because in such cases,
there are major possibilities that the customer will think it as $3.00 rather than $4.00. So, this can
be termed as a very interesting strategy (Campbell, Goldfarb and Tucker, 2015). Also, the firm
tends to change their products and pricing strategies from time to time because this is important
to maintain the interest and attention rate of customers. Sometimes, Paragon Polymer products
Pvt Ltd also makes involvement of multiple pricing strategy in which the firm provides an offer
or discount to the customers such as Buy two, get one free. This is also considered as a very
essential strategy to attract customers because while buying two, one more product of the
company gets sold.
In terms of products, Paragon Polymer products Pvt Ltd focuses on targeting the range
that they think are interested in buying their products. Also, they make involvement of various
promotional tools as well so that they can be able to sell a wider range of their products, so that
they can be able to achieve their targets and objectives. By means of posting regularly on their
social media web pages, their forte is that their posts can reach up to a wide variety of customers.
It is because more than half of the generation have access to social media networking websites.
So, it can be considered as a great platform for promoting of services as well as of products. So,
the strategy of promoting the products and services by means of social media websites by
Paragon Polymer products Pvt Ltd can be considered as an effective way to achieve maximised
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popularity. These ways are being performed by Paragon Polymer products Pvt Ltd so that
customers can also stay happy with them and in return, the company also achieves a wide range
of benefits such as maximised productivity as well as popularity.
Comparison of market structure
Paragon Polymer products Pvt Ltd Vs Nike
If the market research of Paragon Polymer products Pvt Ltd will be compared with any
of its competitor such as Nike, there might be the possibility that some factors of Paragon
Polymer products Pvt Ltd will be beneficial whereas some will be of Nike. Whereas Paragon
Polymer products Pvt Ltd focuses on promoting of their products and services by different ways,
Nike focuses on targeting people by different means of strategy. Although there is a very wide
range of footwear in Paragon and is known for its durability because they produce footwear's
based on rubber. Also, the raw materials that are being used goes under a proper testing
procedure. Paragon Polymer products Pvt Ltd deals with a range of footwear that is durable and
for basic purposes whereas Nike mainly focuses on dealing with a major range of sports
footwear. As an increased range of people are nowadays indulged in various sports activities, so
on the basis of the requirements, Nike focuses on it and tries to involve different range of
products on a regular basis. If the variety of products in both Nike and Paragon Polymer products
Pvt Ltd are being compared, then it can be easily classified that Nike holds a maximized range
that is actually attractive enough that people can buy it. Also, if the products of Paragon Polymer
products Pvt Ltd are being considered, they tend to provide simple yet durable products that can
be preferred by people as well.
Another factor that can be compared here is that Paragon Polymer products Pvt Ltd is
deciding to lower the pricing for footwear collection of kids but Nike has already applied the
same. It is because if their men and women range is being compared to that of kids, their kids
range is comparatively less than that of others. So, this can also be termed as a well efficient
strategy because when kids will wear that range and feel comfortable, then they may want to try
it in the future as well (Auer and Schoenle, 2016). So, this can be termed as a well managed
strategy for attracting customers, thus it can also help them in achieving maximised rate of
productivity as well. The channel segmentation of Nike is also much effective than that of
Paragon Polymer products Pvt Ltd because Nike deals with a premium product range as well and
usually, the products under the range of premium products is being provided to their
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manufacturers etc. whereas the affordable range is kept within different stores for their sale to the
customers. In terms of durability, Paragon Polymer products Pvt Ltd can be considered as much
effective because they make use of rubber and other various raw materials. Also, along with this
fact, these raw materials are being tested within laboratories to check their durability. The brand
focuses on durability of products, so they perform a proper testing so that they may not provide
any non durable product to their customer because it can affect the level of trust over them.
When Nike is being compared to Paragon Polymer products Pvt Ltd in terms of durability,
although the durability rate is good but then it might be said as quite weak because they deal with
a wide variety of sports wear and after regular use, their lifetime gets affected after some time.
So, these can be considered as factors comparing the overall market structure of Paragon
Polymer products Pvt Ltd with Nike.
CONCLUSION
It can be concluded from the report that market structure involves a variety of
components that play an essential role in managing different operations of the market place.
Market structure of Paragon Polymer products Pvt Ltd involves size, strategies and other
important factors having an impact on the overall productivity rate of the firm. Strategies for
product as well as for pricing of Paragon Polymer products Pvt Ltd have also been discussed in
the report. Also, the market structure of Paragon Polymer products Pvt Ltd has been compared
with Nike and is discussed within the report.
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REFERENCES
Books and Journals
Auer, R.A. and Schoenle, R.S., 2016. Market structure and exchange rate pass-through. Journal
of International Economics, 98, pp.60-77.
Campbell, J., Goldfarb, A. and Tucker, C., 2015. Privacy regulation and market
structure. Journal of Economics & Management Strategy, 24(1), pp.47-73.
Chung, K.H. and Chuwonganant, C., 2014. Uncertainty, market structure, and liquidity. Journal
of Financial Economics, 113(3), pp.476-499.
Elfenbein, D.W., Fisman, R. and McManus, B., 2015. Market structure, reputation, and the value
of quality certification. American Economic Journal: Microeconomics, 7(4), pp.83-108.
Farboodi, M., Jarosch, G. and Shimer, R., 2017. The emergence of market structure (No.
w23234). National Bureau of Economic Research.
Holtz-Eakin, D. and Lovel, M.E., 2017. Technological linkages, market structure, and production
policies. In International Economic Integration and Domestic Performance (pp. 59-72).
Hong, G.H. and Li, N., 2017. Market structure and cost pass-through in retail. Review of
Economics and Statistics, 99(1), pp.151-166.
Manshadi, S.D. and Khodayar, M.E., 2016. A hierarchical electricity market structure for the
smart grid paradigm. IEEE Transactions on Smart Grid, 7(4), pp.1866-1875.
Pe'er, A., Vertinsky, I. and Keil, T., 2016. Growth and survival: The moderating effects of local
agglomeration and local market structure. Strategic Management Journal, 37(3), pp.541-
564.
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