B120

Market segment

Market segmentation is a definition which could stand alone as a business strategy which targets customers as subunits, this dividing technique is made upon a demographic, behavioral and geographic backgrounds of different customers. (Kotler, et .al,  2006, P 45).

The purpose of this strategy is to cover wide areas of Asia, the Gulf area and the Middle East so it set two main segmentations for this mission which are  the demographic and the psychographic ones.

Psychographic segmentation: This would present the chance of allowing the company to focus on attitudes of customers, their values doctrines , lifestyle and the type of their needs for the purpose of satisfying them and providing them with the best products they wish to purchase. The company is mainly a garment production company that produces garments according to the countries special values , Indian values for example are completely different than those of Kuwait. Psychographics are targeted by the company so as to understand methods of achieving success.

Demographic segmentation: This kind of segmentation is meant to focus on the demographic characteristics of different places as gender , age, income, literacy levels and family class. Products that are launched by the company would be varied according to the demographic characteristics of the people they are produced to.

Type of business

The company as being a garment producing company would concentrate its activities on producing different garments to be delivered and distributed in showrooms , retailers' shops and selling branches in the different places of spreading. The good thing is that the company would choose its retailers carefully so as to find the strong ones that customers trust, for example Carrefour. There would be a plan for studying the market and people's buying attitude in order to reach what they think of to buy most and to know what are needed in the market most in order to produce it and achieve high sales.

Operations extension

Operation extension is a main mission which needs to be applied , the company would extend its activity in all the possible places in the Gulf area, the Middle East and Asia. The Gulf market is a remarkable market when searching for one to target. Extending the business would enable the company to collect more profits out of the successful achieved bargains which are made all around the area.

Let's talk about the market of Kuwait as an example. This market is characterized with generous people who are buying lovers as they search for the good fine product and purchase it. Luxury items with good quality would attract those customers that would achieve the company's main target which is sales and earnings.

Type of assets

According to the specialization of the company which is producing different garments we can refer to two mains of assets in the company , they are the fixed assets and the current ones. Let's have a glance at each of them :

Fixed assets; Those assets which are not liable for consuming or liquidating by the company, their existence in the company is an essential for all the company's operations and processes. The company is not supposed to liquidate them before a year of real business. Lands of projects, machines for business work, buildings for offices and other utilities and equipments are considered fixed assets.

Four Season Company is privileged with fine fixed assets used by the company in all its operations and processes. Examples of these fixed assets are the lands on which the projects are established, cars used for the company transportation processes and the buildings of offices and other main operations.

Current assets; They are so-called as they are short term assets liable to liquidation at any time of need , they are transferred either to retailers or to distributors. The raw materials, finished products and cash assets are all examples of these current assets.

Promotion

If we are to discuss company promotion , there are four areas of discussion to be touched as follows:

Advertising: Media tools without exceptions should be depended on by the company in order to reach a good level of fame which leaves a good impression in customers' minds. TV, Radio, newspapers and the internet sites as facebook, twitter or using google Adwords program to reach all possible sections of society. Advertisements which are well planned brings more customers with more profits and fame to the company. 

 Discounts; The services of discounts to the company can not be counted as they can encourage customers of different natures to buy as there are low level persons who wait for discounts , buying lovers who has a buying mania and people who think they are cleverer than others in buying and many other kinds of customers who love discounts. A discount of 10-20 % is enough to attract a fine number of customers and their friends which raises sales and earnings.

Special offers; The company is in need for many factors to serve its success process and special offers is an effective one that encourages customers to buy at some special occasions which need studying from the company in order to present the special offer at its exact time. In Kuwait for example , the company should make good use of the National Day and the Liberty Day of Kuwait and other festivals on which the buying is important specially when there are good special offers.

Sponsorship: Why not to share in sports event or music concerts loved by people who could be possible faithful customer to the company that supports their beloved sports teams and singers. In fact this way is successful in having long run loyal loving customers who appreciate the company's sponsorship activities.

SWOT analysis

SWOT analysis is a good model which is well known and applied by most companies for the purpose of analyzing the company's environment internally and externally. As for the internal environment there are strengths and weakness yet the external one includes threats and good opportunities.
Strengths: This refers to gaining a strong name for the company's brands , being provided by loyal hard working human resources, having excellent training and development programs and of course being well equipped by the most advanced machinery and technologies.

Weaknesses: Costs in fact represent the weakness at the company as there are salaries high costs in the Gulf areas , big costs of lands and buildings, transportation costs and other expenses.

Opportunities: In Kuwait the chances and good opportunities are too many as there is high living level , continuous buying , varieties in demands and the government's facilities for businessmen and investors which low taxes are the best of them.

Threats: Competition levels are too high , they need continuous plans for beating the rivals in the market and presenting surprises for customers. High advanced technologies are also threats because every day there are new updates for technologies that never end.

Strengths Machines of good quality Loyal human resources Good training and development programs	Weaknesses Renting costs that are too much Labor high salaries and wages
Opportunities Customers not ended needs Facilities by government The demand for garments	Threats  Competition with famous brands Updated technologies

Forecasted Income statement

It is expected that the first year would not yield good profits to satisfy the company with them. This is mainly caused by the fixed assets expenses at the first year which are going to change in the following years due to not purchasing more expensive fixed assets. The forecasted expenses need to have all the expenses of the company for the first three years like this example:

	2013	2014	2015
Sales Cost of goods sold	165000 KD (55000)	185000 KD (60000)	215000 KD (65000)
Gross margin Expenses    Wages expenses    Fuel expenses    Equipment expenses    Maintenance expenses    Rent expenses	115000 (6000) (5000) (75000) (4000) (10000)	125000 (7000) (5000) (4000) (4000) (10000)	150000 (7000) (6000) (4000) (4000) (10000)
Net Income	15000	95000	119000

Conclusion

At the end , we have to confirm the importance of targeting customers according to the segmentations suitable for each area and to give interests to the company's activities in Kuwait and in the Gulf areas so that the company would be able to achieve its targets fast and to get the satisfying limits of profits. Promotion activities are needed to raise the people's awareness and perception to the company and to address the public by convincing ways. Good and planned promotion strategies brings success to the company with all its branches of profits, fame and future operations. Choosing the right strong retailers and distributors can make the products of the company are clearer and easy to be reachable by customers. The company should make good use of the opportunities found in Kuwait as a country for successful investments and it should study this market from all sides to reach strategies of reaching the top levels of success in it.