Automatic And the product can be relatively bought by

Automatic garage door:

            Automatic
garage door systems are being used in a wide range of residential and commercial
applications. It opens the door automatically and closes it automatically. It
uses a sensor for this purpose. They are generally used in homes for parking
cars and other storage purpose and on the outside doors of large retail
businesses. These doors are not only providing easy access to all the users but
also provides reliability in the form of security. Automatic garage door can be
of many types like top rolling multi-panel shutters, side rolling multi-panel
shutters which are automatically controlled.

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Step-1:Starting point for estimating the market
potential starts with how the product we have considered is going to solve the
problem of customers. With innovative technology the following problems of
customers are being met by the product, they are

1.Convenience

            One
can stay in their car and can open or close the garage.

2.Security

            Since
the garage is closed using codes and also vacation modes available during which
the remote gets disabled.

3.Relatively inexpensive

4.Safety

            Fingers
won’t get caught anywhere and can be easily operated using the remote.

Step-2:Profiling the customers

            By
knowing the people who are going to access the product we can narrow down to
the number of potential customers.  Indians
generally buy a product when that product is really useful or not. So target
customers can be only those families who have their own homes and cars with
them. And the product can be relatively bought by the customers who have good
amount of income as backup since the cost of the product being 1.5 lakhs and annual
maintenance cost being 5000 .By knowing the people who are going to access the
product we can narrow down to with the potential customers.   

Define the market segment:

            Here
segmentation is being done on basis of income, lifestyle and attitude they
have.

Demographic- People are segmented based on their
income ,house they own and also on the ownership of cars.

Psychographic-People are segmented based on their
attitude towards innovation which can be done through survey using
questionnaires.

Targeting:

1.People with high annual income, a car and enough
housing space are being targeted.

2.People who enjoys comfort and have a positive
attitude towards the product is targeted.

Geographic boundaries:

            Bangalore
has been selected as the market for selling the product since there is a lot of
potential buyers with the above given characteristics in Bangalore.

Step-3:Finding the competitors

            In
Bangalore we have found that there are four potential competitors in the
automatic garage door market. They include

·        
Quality Automations-2 Lakhs/piece

·        
Rolling Shutter Motors India-1.5 lakhs/piece

·        
LMarks House-1.5 lakhs/piece

·        
Sri Sai Automation-1.5 lakhs/piece

These are the four
important competitors who shares the market share for the product.

Step-4:Approach
1-Based on size of house

                  Among the
population of Bangalore which has been estimated as 12 million.It has been
found that 28% of them are earning more than 10Lakhs per annum who come under
our category of segmentation which is equal to 
3.36 million. Since these are the people who have been recognised as
upper middle class to  Richie rich class
who can be considered as our target customers.

Let us assume that people with above income and also
with decent housing space be 561528 i.e. households with more than five rooms
to dwell.

 

 

 

 

1.      Market
size considered here is households having more than 5 rooms i.e. 561528

2.      Market
potential is the total expected sales for the automatic garage in Bangalore for
6 months. This 6 months can generally be 
expanded to one or two years. We can refine or increase the accuracy of
guesses by digging deeper details. As of now an educated guess is being taken.
It has been taken as 5% of the total target customers.

3.      Similarly
by doing the same mental exercise we are estimating how many customers will be
buying form our firm over those 6 months period of time. Thus the sales

 

projection has been estimated as
follows in the below table and thereby our share of the market can be
found. 

4.      If
wanted this below found estimated can be scaled to the nearby districts also
which we want to serve. The crux is start with something which we can measure and
then extend it.

Market forecast

Prediction

Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Automatic garage
door

Units sold by the
whole industry(Market potential)

25000

25000

25000

25000

25000

25000

Automatic garage
door for our firm

Units we will sell(sales
potential)

1250
(5%)

4000 (16%)

5000
(20%)

7500
(30%)

7500 (30%)

8000 (32%)

 

Average price in
lakhs

1.5

1.5

1.5

1.5

1.5

1.5

 

Sales forecast in
lakhs

1875

6000

7500

11250

11250

12000

 

 

Second approach: The above process can be done by
taking into consideration the number of households having four wheelers. In
which the total number of target customers are found as 833478 as giving by the
census report. After this using the same estimation procedures potential and
forecast  can be done.