Question

Read the case carefully and answer what is being asked:

XYZ Crafts is into the manufacturing of ladies' accessories. At present, most of the saleable accessories are using woods, beads, and other materials. While their product is indeed unique, their packaging is also excellent. Part of the direction of the company is to penetrate the GCC market. The company has participated in several exhibits however, in the past 3 years, their sales are going down and they hardly get clients from the GCC who would be interested in their items. Being the operations manager of the company provides an in-depth analysis of the reason for XYZ's difficulty in product sales. What recommendations can you present to improve the sales of the company and further achieve the goal to penetrate the GCC market? Discuss your detailed plan of action.

Answer 1

Introduction

From the above case study we can analysis that the XYZ Crafts facing some issues. XYZ Crafts is industry based on the manufacturing of ladies' accessories. The product of XYZ crafts are very unique and  they have very excellent packing. They using beads and woods material to manufacture the product. On the part of their forward looking they penetrate into the GCC market. in there company makes different exhibits and marketing activity but they can not get good customers for selling their product.

GCC

The GCC simply means the Gulf Cooperation Council. It is gulf market. The GCC covers the countries like Bahrain, Kuwait,Oman, Qatar and UAE. The gulf market is fully integrated market. The regional political organisation controlling the entire market. It is the coordination of all the six countries of GCC.

Reason

The GCC is the market which have large number of firm in same industry. They tries to compete each other. The GCC market are different from others. The challenges they are faced is different types. That also affect the companies which are newly penetrated in the market.

When new companies are enter in to gcc market they have good potential to compete the other companies in the similar industry. The chances of loss is very predictive. the competition in the GCC market are very high. The rules and regulation are very different and rare in the gulf countries. from the unemployment to productivity, to female participation everything have the chance to get punished.

In the GCC there is different labour market challenges. That also affect the XYZ Crafts company. In the GCC the country ensure the better protection of the females and they tries to adopt good quality products in the market. The government is very essential in the market. I think the company fails to understand the changing trends of females to offer the better product. They fails on providing better promotion to their product rather than the competitor.

When a product firstly entered in the market must provide the better promotion. The promotion must be attract the targeted customers. When the company participates in the exhibition must use the unique identity to attract the customers. These are the major reasons to reduce the sale of product.

Goals to penetrate market

when we penetrated into new market we must make an in depth study about the market. How the market responds, what are the key area of GCC market. How the target market behave in the market. Provide better promotion mix to reach the product in the wide reach.

Analyse and monitor the changes in trends in the market. females have mentality to change with the fashion. The product must be designed with the new trends. Understanding the change and act according to the trend that identifies is help to take competitive advantage against the competitor.

The company must conduct different surveys to understand the behavior of targeted customers. That also help to understand the preferences of customers. It help to design the product on the basis of customer preference.