1 QUESTION
The market which Jim is going to penetrate is two countries in North America Canada and USA. Jim has an advantage because he located in Ontario which is the second biggest Canadian province after Quebec for the population of cows i.e. 7557 farms. The fact that Jim collected some marketing information from his students before starting the business talks about his professionalism. It means that he is a person whose data we can trust. His business idea is to sell special shoes to the farmers, whose cows have cow leg illnesses, thru three different distribution channels such as direct advertisement, farm equipment dealers, veterinaries.
According to some valuable information from the reports the total market capacity is 10.3 million cows in the US and Canada, 21911 cow farms in Canada and 9210 in the US respectively. It looks not bad for the beginning but we should pay our attention to two confusing things.
- The data from Census Farms Reporting in Canada table. According to this data the quantity of farms is decreasing from 50037 in 1986 to 21911 in 2001. What is the reason? We should scrutinize the reasons. Otherwise we can fall in to decreasing market. It is written in the case that the quantity of cows is rising in the farms but at the same time the total cow population is going down. Why? We do not have any appropriate statistic data or explanation.
- According to the case Jim was going to sell 20 percent of his product to beef cow farms but they are not interested in such kind of treatment because they can just kill the cow a little sooner than it was expected before. Moreover small baby cows from that kind of farms are out of market as well due to impossibility to provide them with necessary sizes of shoes for small cows.
Recommendation. Jim should reconsider his market capacity and have a look to some markets abroad. Also he can get some information from the internet. Perhaps the similar product already exists at other