Marketing Case

The furniture industry has suffered in the past couple of years due to the poor economic climate in South Africa. Therefore a market analysis should be done with regards to market analysis, (Jooste et al, 2009:p.51) states that "An important aim of a market analysis is to establish whether a market is an attractive proposition to current and potential participants." This is analyzed by using the following dimensions.

Actual and potential market size

The market size of the market can be measures according to the volume of sales. This can increase through more sales or by influencing customers to pay a higher price. One should look at the most profitable sectors.

Market growth & profitability

Hein & Mann needs to find high growth markets thou there are risks involves which include:

Competitor could enter the market

Hein & Mann might not have the resources

Innovative technology

The cost structure and behavior of the industry

This is used to develop a strategy to develop competitive advantage and decide where value is added.

Distribution systems

Aspects to look at include questions such as:

• Channel power structure (having negotiating power over manufactures.)

• Emerging channels and trends

• Existing distribution channels

Market trends & developments in the industry

Market changes facilitates in the rise of opportunities and threats and trends such