The Architectural Industry: The Market Analysis Of The Architectural Industry

785 Words2 Pages

The architectural sector is costly and not feasible to set up overseas or grow substantially in New Zealand with Leatherworks’ current resources and capabilities. One of the main architectural applications is yacht refurbishment and one of the main Auckland-based refurbishment warehouses has encountered financial hardship (McCabe, 2015). This shows a lack of sustainable demand in the sector which is not attractive. There are very long lead times in refurbishment which affects profitability as one of Leatherworks’ core competencies involves the quick turnaround of product designs, manufacturing and being nimble which is not being enhanced in this sector. Especially with this segment, there is a lot of design time compared to the others and this …show more content…

The existing target market is large and the market analysis has shown this segment to be feasible and profitable as outlined in the situation analysis. The streamlining of resources into this one segment will decrease the inefficiencies present in pursuing three separate markets and ensure market and sales growth. Furthermore, the inclusion and development of a dedicated website in order to cater for the fashion segment will authenticate Leatherworks as a distributor as well as a manufacturer. This introduces cost efficiencies to their business processes through vertical integration and also builds brand awareness …show more content…

These provide flexibility in operations as the fashion products can act as both items for the intended trend setting target audience as well as incorporate goods that are sufficient and premium enough to also cover the corporate sector. Greater individualisation found in the ‘customisable’ section allows Leatherworks to facilitate micro-segmentation in allowing the consumer to mould the product according to his or her wants and needs, resulting in added customer value. As such, the intended value derived from the pursuit of such a single-minded approach include increased customer satisfaction in the quality and quantity of designs specifically for this sector, providing customers with control over individualised goods (which in turn provides insights on popular customer-designed designs) and marketing spend efficiency in the reallocation of efforts and resources towards the one fashion segment.

The results from our survey show that our target market desire bags, wallets and leather accessories that are modern classics and will last them a while. Despite our target market having a relatively low disposable income, as in not the kind of people who would generally demand specifically leather products, our research shows that people who are at univeristy and entering the workforce do value how they look, they are prepared to invest in looking good as long as the price isn 't too

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