In finance, risk is best judged in a portfolio context. Is this true Essay - 1

In finance, risk is best judged in a portfolio context. Is this true Why - Essay Example in the capital as well as money market in different countries. The whole process is done by the finance manager of the concerned investing companies. The need for the investment market globally generated from the very advent of the securities market and the developments in the line of market participation in the stock exchanges and hence market volumes. These had a cumulative impact on the volatility in the securities market which ultimately gave rise to the need of the technical analysis tool in the hands of the experts to crack the investment market movements (Correia, 2007, p.154). The need for the understanding of the market trends came primary to the fundamental analysis of the companies and this gave rise to the need for qualified and expert personnel to act as investment bankers in the hands of large asset management companies and investment banking sector. Here this study is based on different types of tools and techniques of investment management like risk and return, CAPM m odel, WACC Model, capital structure, option etc. Risk and Return The terminology â€Å"risk† is mainly used for the investment which indicates the difference between the actual return and the expected return of the investment (Kieso, 2010, p.97). On the other side, return on the investment indicates the earring from investment which can be treated as a reward of risk bearing. So, this tool indicates the gain and loss on the investment from the investment within certain time period. Portfolio Theory The fundamental of the portfolio theory indicates to diversify different types of securities in to different types of risk for the purpose to minimise the risk factor. In 1952, Harry Markowitz introduced the idea of diversification. So this theorem was mainly introduced for the purpose of maximising the return i.e. wealth of the investors. International diversification indicates diversification of the various investment strategies decided on, by the finance managers of the investme nt company. It relates to the investment decision made by the finance manager in different securities of different markets, thereby, enabling the investment bank to reap the benefits of investing in different markets. Since, the foreign exchange market operates 24 hours in a day, investing in different markets will ensure maximum returns to the portfolio by taking the advantage of the variance in the currency value in different markets. Currency trading is an important strategy that most of the finance manager adopts for maximizing the portfolio value. Diversification in the portfolio will help in eliminating risk to a great extent, since policies adopted in a country might affect the stock market of a country but might not affect the stock market of another country. Capital Asset Pricing Model (CAPM) Capital asset pricing model is an important technique to know the actual position of the particular assets (securities, bonds, share etc.). International capital asset pricing model is the extended vision of CAPM, used when the investment companies are going to invest internationally. The extract of this model employed to stand the statement â€Å"For reducing the risk the investors should invest in the internationally diverse portfolio†. For example mutual fund can be used as a good diverse portfolio for the investors, who have less capability. The great economist William Sharpe developed the CAPM model for the first time. The key feature of this model is to calculate the risk attached with the investment and highlights

Article analysis 2 Example | Topics and Well Written Essays - 750 words

Analysis 2 - Article Example The results of the study showed a different picture of what is usually assumed concerning marketing. This is shown below: Literature Review From the literature review of the article, we get to know that three factors namely price, product and promotions are used in ensuring that business operate efficiently and marketing campaigns are conducted effectively. The article makes an analysis of price and in fact talks of price being a major factor in terms of ensuring customer numbers are achieved. The article emphasis on the need for a good pricing model since price is responsible for generation of income (Etzel, 2004). Another important factor was promotion in that it determines the way people are informed of a certain brand, service of product. As a result, managers should make use of promotion methods that enhance brand perception such as messages which persuade, inform and linger in minds and hearts of consumers (Daniels, 2009). These factors influence the behaviour of consumers in d ifferent sections of the world and in relation to ChiangMai, the four P’s (Price, Product, Promotion and Place) are important in marketing tourism in the region. The place in this article looks into ChiangMai as a tourist destination with a lot of attractions to offer in terms of nature, culture and the hotel industry (Kandampully, 2007). Hotels in the region rely on the four P’s of marketing to enhance their product offering and thus some 19 hotels decided to conduct a research based on these factors. In this case, questionnaires were deployed for the purpose of conducting the study and these questionnaires were given to managers and hotel guests. Analysis The marketing study was done based on certain variables and the study measured the implementation of marketing practices of hotels and resorts against customer satisfaction levels based on product offering, pricing and promotions. In terms of ownership, the hotels in ChiangMai are either corporate or individually ow ned and this affects that way businesses are marketed. For instance, solely owned hotels have unlimited liability unlike corporations while age of the hotel is also a big factor since many of the hotels in ChiangMai have been operation for a long time. The products offered by these hotels were also surveyed and this included the rooms, types of services, size of rooms and it was found out that most of the hotels offer both sleep and food services (Swarbrooke, 2012). In the process of serving customers, the data analysis revealed that offering food in addition to lodging created better revenues. Apart from offering good products, the services that were offered by ChiangMai’s hotels were superior in the fact that the managers considered services such good hygiene, prompt and courteous service were highly considered in marketing. However, it is the level of implementation the marketing strategies and goals that was important in the process of undertaking this study. In terms of making use of price factor, most hotel managers made use fair pricing systems to attract customers (Sangkaworn, 2008). However, promotion was considered among the high priorities of managers in terms of marketing since hotels made use of friendly gestures and hospitality to attract and retain customers. When the two set of factors were correlated for the purposes of the study, it was found out

Diamond cites multiple factors Essay Example for Free

Diamond cites multiple factors Essay A tale of two very similar farms, 500 years apart in time, in Montana and in Greenland respectively, sets the scene for Jared Diamond’s romp round the known world with an ecological bee in his bonnet. One farm prospered, and the other collapsed. Here ends the first reading, and sure enough, another few dozen parables of human folly follow immediately after. The book reads like a sequel to Diamond’s Pulitzer Prize winning title of 1997: Guns, Germs and Steel: The Fates of Human Societies even though the focus this time is more firmly on the societies that failed. The same cherry-picking formula is used, and the same breezy tone makes Collapse a fairly easy read, despite its heavy theme and expansive range. The book’s central thesis is that it is geography, more than history, that ultimately causes the demise of individual human communities and societies. This is perhaps not surprising from a professor of geology and physiology at the University of California in Los Angeles. The frozen wastes of Greenland and the striking stone heads of Easter Island are presented as grim reminders of past civilisations. Diamond cites multiple factors such as environmental change, climate change, hostile neighbours, loss of trading partners and a poor response to emerging environmental problems as the causes of decline and ultimately the collapse of these societies. He is at his best when he talks about smaller, more isolated and pre-industrial groups, putting us all in mind of an earlier time when people generally lived in villages rather than cities. The book shifts, however, and applies the same kind of analysis to large city-based civilizations like the ancient Maya of South America and more mixed modern economies such as China and Australia. In these cases, as they say, the plot thickens and when Diamond gets his crystal ball out, he predicts that China, â€Å"the lurching giant† will have to apply its typical top-down draconian pressures to environmental issues in the same way that it enforced a strict curb on the birth rate. Diamond’s innocuous description of China’s brutal one child ruling as â€Å"family planning policies †¦ bold and effectively carried out† underplays the culture shift that would need to occur if ever a western democracy were to try a similar tactic in aid of environmental reforms. One can’t help thinking that Diamond has not yet got his head round the concept of globalization and the astonishing capacity that modern democracies have for technological solutions to the old crises of supply and demand of raw resources. His rather glib conclusion â€Å"Globalization makes it impossible for modern societies to collapse in isolation†¦ for the first time we face the risk of a global decline† simply expands the primitive pattern to a bigger scale. This book is a wake up call. Some of its claims are exaggerated, as when the situation of modern Australia is compared to â€Å"an exponentially accelerating horse race† which for Diamond means â€Å"accelerating in the manner of a nuclear chain reaction. † The metaphors may be hopelessly mixed, but the point he is making is clear and critically important. After a leisurely wander through most of human civilisation as we know it, Diamond draws sobering conclusions about the cost of mistakes that we should, theoretically at least, be able to predict and deal with before they become fatal and final errors. While we may not be able to agree with all of his conclusions, we certainly are in debt to Jared Diamond for providing us with, yet again, a gripping sequence of well-drawn episodes and plenty of food for thought.

Construction of a Research Questionnaire

Construction of a Research Questionnaire Construction of appropriate questionnaire items Section 2, Question 3 Describe what is involved in testing and validating a research questionnaire. (The answer to question 3 should be no fewer than 6 pages, including references) The following criteria will be used in assessing question 3: Construction of appropriate questionnaire items Sophistication of understanding of crucial design issues Plan for use of appropriate sampling method and sample Plan to address validity and reliability in a manner appropriate to methodology In order to construct an appropriate research questionnaire, it is imperative to first have a clear understanding of the scope of the research project. It would be most beneficial to solidify these research goals in written form, and then focus the direction of the study to address the research questions. After developing the research questions, the researcher would further read the related literature regarding the research topic, specifically searching for ideas and theories based on the analysis of the construct(s) to be measured. Constructs are essentially mathematical descriptions or theories of how our test behavior is either likely to change following or during certain situations (Kubiszyn & Borich, 2007, p. 311). It is important to know what the literature says about these construct(s) and the most accurate, concise ways to measure them. Constructs are psychological in nature and are not tangible, concrete variables because they cannot be observed directly (Gay Airasian, 2003 ). Hopkins (1998) explains that psychological constructs are unobservable, postulated variables that have evolved either informally or from psychological theory (p. 99). Hopkins also maintains that when developing the items to measure the construct(s), it is imperative to ask multiple items per construct to ensure they are being adequately measured. Another important aspect in developing items for a questionnaire is to find an appropriate scale for all the items to be measured (Gay Airasian, 2003). Again, this requires researching survey instruments similar to the one being developed for the current study and also determining what the literature says about how to best measure these constructs. The next step in designing the research questionnaire is to validate it-to ensure it is measuring what it is intended to measure. In this case, the researcher would first establish construct validity evidence, which is ensuring that the research questionnaire is measuring the ideas and theories related to the research project. An instrument has construct validity evidence if its relationship to other information corresponds well with some theory (Kubiszyn Borich, 2007, p. 309). Another reason to go through the validation process is to minimize factors that can weaken the validity of a research instrument, including unclear test directions, confusing and/or ambiguous test items, and vocabulary and sentence structures too difficult for test takers (Gay Airasian, 2003). After developing a rough draft of the questionnaire, including the items that measure the construct(s) for this study, the researcher should then gather a small focus group that is representative of the population to be studied (Johnson, 2007). The purpose of this focus group is to discuss the research topic, to gain additional perspectives about the study, and to consider new ideas about how to improve the research questionnaire so it is measuring the constructs accurately. This focus group provides the researcher with insight on what questions to revise and what questions should be added or deleted, if any. The focus group can also provide important information as to what type of language and vocabulary is appropriate for the group to be studied and how to best approach them (Krueger Casey, 2009). All of this groups feedback would be recorded and used to make changes, edits, and revisions to the research questionnaire. Another step in the validation process is to let a panel of experts (fellow researchers, professors, those who have expertise in the field of study) read and review the survey instrument, checking it for grammatical errors, wording issues, unclear items (loaded questions, biased questions), and offer their feedback. Also, their input regarding the validity of the items is vital. As with the other focus group, any feedback should be recorded and used to make changes, edits, and revisions to the research questionnaire (Johnson, 2007). The next step entails referring to the feedback received from the focus group and panel of experts. Any issues detected by the groups must be addressed so the research questionnaire can serve its purpose (Johnson, 2007). Next, the researcher should revise the questions and research questionnaire, considering all the input obtained and make any other changes that would improve the instrument. Any feedback obtained regarding the wording of items must be carefully considered, because the participants in the study must understand exactly what the questions are asking so they can respond accurately and honestly. It is also imperative to consider the feedback regarding the directions and wording of the research questionnaire. The directions of the questionnaire should be clear and concise, leaving nothing to personal interpretation (Suskie, 1996). The goal is that all participants should be able to read the directions and know precisely how to respond and complete the questionnaire. To bet ter ensure honesty of responses, it is imperative to state in the directions that answers are anonymous (if applicable), and if they mistakenly write any identifying marks on the questionnaire, those marks will be immediately erased. If that type of scenario is not possible in the design of the study, the researcher should still communicate the confidentiality of the information obtained in this study and how their personal answers and other information will not be shared with anyone. Whatever the case or research design, the idea is to have participants answer the questions honestly so the most accurate results are obtained. Assuring anonymity and/or confidentiality to participants is another way to help ensure that valid data are collected. The next phase entails pilot-testing the research questionnaire on a sample of people similar to the population on which the survey will ultimately be administered. This group should be comprised of approximately 20 people (Johnson, 2007), and the instrument should be administered under similar conditions as it will be during the actual study. The purpose of this pilot-test is two-fold; the first reason is to once again check the validity of the instrument by obtaining feedback from this group, and the second reason is to do a reliability analysis. Reliability is basically the degree to which a test consistently measure whatever it is measuring (Gay Airasian, 2003, p. 141). A reliability analysis is essential when developing a research questionnaire because a research instrument lacking reliability cannot measure any variable better than chance alone (Hopkins, 1998). Hopkins goes on to say that reliability is an essential prerequisite to validity because a research instrument must c onsistently yield reliable scores to have any confidence in validity. After administering the research questionnaire to this small group, a reliability analysis of the results must be done. The reliability analysis to be used is Cronbachs alpha (Hopkins, 1998), which allows an overall reliability coefficient to be calculated, as well as coefficients for each of the sub-constructs (if any). The overall instrument, as well as the sub-constructs, should yield alpha statistics greater than .70 (Johnson, 2007). This analysis would decide if the researcher needs to revise the items or proceed with administering the instrument to the target population. The researcher should also use the feedback obtained from this group to ensure that the questions are clear and present no ambiguity. Any other feedback obtained should be used to address any problems with the research questionnaire. Should there be any problems with particular items, then necessary changes would be made to ensure the item i s measuring what it is supposed to be measuring. However, should there be issues with an entire construct(s) that is yielding reliability and/or validity problems, then the instrument would have to be revised, reviewed again by the panel of experts, and retested on another small group. After the instrument goes through this process and has been corrected and refined with acceptable validity and reliability, it is time to begin planning to administer it to the target population. After the research questionnaire has established validity and reliability, the next step is to begin planning how to administer it to the participants of the study. To begin this process, it is imperative to define who the target population of the study is. Unfortunately, it is often impossible to gather data from everyone in a population due to feasibility and costs. Therefore, sampling must be used to collect data. According to Gay and Airasian (2003), Sampling is the process of selecting a number of participants for a study in such a way that they represent the larger group from which they were selected (p. 101). This larger group that the authors refer to is the population, and the population is the group to which the results will ideally generalize. However, out of any population, the researcher will have to determine those who are accessible or available. In most studies, the chosen population for study is usually a realistic choice and not always the target one (Gay Airasian, 2003). After choosing the population to be studied, it is important to define that population so the reader will know how to apply the findings to that population. The next step in the research study is to select a sample, and the quality of this sample will ultimately determine the integrity and generalizability of the results. Ultimately, the researcher should desire a sample that is representative of the defined population to be studied. Ideally, the researcher wants to minimize sampling error by using random sampling techniques. Random sampling techniques include simple random sampling, stratified sampling, cluster sampling, and systematic sampling (Gay Airasian, 2003). According to the authors, these sampling techniques operate just as they are named: simple random sampling is using a means to randomly select an adequate sample of participants from a population; stratified random sampling allows a researcher to sample subgroups in such a way that they are proportional in the same way they exist in the population; and cluster sampling randomly selects groups from a larger population (Gay Airasian, 2003). Systematic sampling is a form of s imple random sampling, where the researcher simply selects every tenth person, for example. These four random sampling techniques, or variations thereof, are the most widely used random sampling procedures. While random sampling allows for the best chance to obtained unbiased samples, sometimes it is not always possible. Therefore, the researcher resorts to nonrandom sampling techniques. These techniques include convenience sampling, purposive sampling, and quota sampling (Gay Airasian, 2003). Convenience sampling is simply sampling whoever happens to be available, while purposive sampling is where the researcher selects a sample based on knowledge of the group to be sampled (Gay Airasian, 2003). Lastly, quota sampling is a technique used in large-scale surveys when a population of interest is too large to define. With quota sampling, the researcher usually will have a specific number of participants to target with specific demographics (Gay Airasian, 2003). The sampling method ultimately chosen will depend upon the population determined to be studied. In an ideal scenario, random sampling would be employed, which improves the strength and generalizability of the results. However, should random sampling not be possible, the researcher would mostly likely resort to convenience sampling. Although not as powerful as random sampling, convenience sampling is used quite a bit and can be useful in educational research (Johnson, 2007). Of course, whatever sampling means is employed, it is imperative to have an adequate sample size. As a general rule, the larger the population size, the smaller the percentage of the population required to get a representative sample (Gay Airasian, 2003). The researcher would determine the size of the population being studied (if possible) and then determine an adequate sample size (Krejcie Morgan, 1970, p. 608). Ultimately, it is desirable to obtain as many participants as possible and not merely to achieve a m inimum (Gay Airasian, 2003). Lastly, after an adequate sample size for the study has been determined, the researcher should proceed with the administration of the research questionnaire until the desired sample size is obtained. The research questionnaire should be administered in similar conditions, and potential participants should know and understand that they are not obligated in any way to participate and that they will not be penalized for not participating (Suskie, 1996). Also, participants should know how to contact the research should they have questions about the research project, including the ultimate dissemination of the data and the results of the study. The researcher should exhaust all efforts to ensure participants understand what is being asked so they can make a clear judgment regarding their consent to participate in the study. Should any of the potential participants be under the age of 18, the researcher would need to obtain parental permission in order for th em to participate. Lastly, it is imperative that the researcher obtain approval from the Institutional Review Board (IRB) before the instrument is field-tested and administered to the participants. People who participate in the study should understand that the research project has been approved through the universitys IRB process. References Gay, L. R., Airasian, P. (2003). Educational research: Competencies for analysis and Applications (7th ed.). Upper Saddle River, NJ: Pearson Education, Inc. Hopkins, K. D. (1998). Educational and psychological measurement and evaluation (8th ed.). Boston: Allyn Bacon. Johnson, J. T. (2007). Instrument development and validation [Class handout]. Department of Educational Leadership Research, The University of Southern Mississippi. Krejcie, R. V., Morgan, D. W. (1970). Determining sample size for research activities. Educational and Psychological Measurement, 30, 607-610.k Krueger, R. A., Casey, M. A. (2009). Focus groups: A practical guide for applied research (4th ed.). Thousand Oaks, SA: Sage Publications, Inc. Kubiszyn, T., Borich, B. (2007). Educational testing and measurement: Classroom application and practice (8th ed.). Hoboken, NJ: John Wiley Sons. Suskie, L. A. (1996). Questionnaire survey research: What works (2nd ed.). Tallahassee, FL: Association for Institutional Research.

Competitive Sports at an Early Age :: essays research papers

Name Subject Date Should Children Participate in Competitive Sports at an Early Age? Many American parents struggle to answer the puzzling question of what the appropriate age children should start to participate in competitive sports. A subject like this is puzzling because there are many issues that must be addressed, because it is controversial. Some American parents push their children too far, too young. The average American child usually will start to participate actively in competitive sports between the ages of six and twelve and can be unhealthy to a child’s development (CWG 131). The question at what age a child should start, has a different answer for each individual child. Parents often fail to realize that their child may not be physically ready for competitive sports, even though the child is ready. I believe that a child should participate in sports only if he is wanting too participate and is not pushed by their parents. Every parent has a different way of looking at, if their child is ready to start. If a six year little boy wanted to start playing football, the child may not be fully capable of handling such strength and tension that might cause a life long injury (Koppett 294). Some parents may think he is ready, but is probably not. Determining whether or not a child is ready for competitiv! e sports can sometimes be difficult to answer, because to determine if they are ready a child must be mentally ready also. Sports not only take physical strength, but a child must have psychological capacity to get them through such strenuous activity. A child may sometimes become scared when participating in sports. For example, A mother of an eight-year-old Peewee Football player explained, "The kids get so scared. They get hit once and they don’t want anything to do with football anymore. They’ll sit on the bench and pretend their leg hurts†¦"(qtd. In Tosched A32). This quote is a true statement because if a six-year-old child is playing peewee football with an eight-year-old, the eight-year old is a lot bigger that the six year old is and he could cause physical hurt to the six-year-olds tiny body. The psychological part of the story would be that the child would be so scared that he might get hurt which causes physical hurt as well as mental hurt and may scar the ! child for the rest of their life, when that child could of been the next pro- football player of the next century.

Philippine War :: essays research papers

The Philippine War   Ã‚  Ã‚  Ã‚  Ã‚  I don’t believe the Philippine War was justified. There are more ways than war to solve the annexation of the Philippines. I agree on some of the policies, but not all of the policies, that were in place during that time period.   Ã‚  Ã‚  Ã‚  Ã‚  I believe the war was not justified for a number of reasons. The ratio of dead to wounded was higher than it was in the civil war which is considered one of the saddest wars in this country’s history. In the civil war, the ratio was one wounded to five killed, where as in the Philippine War, the ratio was one wounded to twelve killed. America instead of trying to peacefully resolve the situation, decided that force was a more potent way to talk and guarantee control of the newly gained possession. I would use war as a last result, trying diplomacy first. It was good that the United States was freeing a country from an immoral government, but there are better ways to solve the controversy of what to do with the new annexation.   Ã‚  Ã‚  Ã‚  Ã‚  There were several policies in place at the time, some which were put into place before the war, some during the war, and some after. The ratification of the annexation process was long and difficult. There were debates as to how to treat the Filipino people. One suggestion was to treat the Filipinos as dependents, and not citizens, like the Native Americans came to be treated. Many of the imperialists believed that the Filipinos were savages and harsh policies would give America control. The anti-imperialists were not exactly sure whether to treat them as peers or to set them free. I would treat them as equals, as normal people, as they are like everyone else. At the time they might not have been as technologically advanced as we were, and their government may have seemed primitive to ours. I think we should have worked with them to help create a government, rather than occupy and just take over.   Ã‚  Ã‚  Ã‚  Ã‚  Another policy that occurred because of the war was the â€Å"open door† policy. America had much interest in Asia, and the Philippines provided a door to China. America viewed China as a weak country, and was afraid that other countries might attack China, take over, and exploit it. The annexation of the Philippines gave America the opportunity to â€Å"protect† china. So the Americans proposed an open door policy, where each country in the treaty were allowed a place of influence, where china had to respect the laws of the countries, but were allowed to collect tariffs.

Marketing Principles: The Onida Candy Case Study

This is composed of   two types of factors: those that the company cannot control – the external factors and those the company has control – the internal factors (Finch,2001, p.4)  Ã‚   The problem with Onida was they weren’t able to understand the impact of the uncontrollable factors and they don’t have an effective management of the of the controllable factors. Macroenvironmental Factors Onida’s Candy was a hit in Mumbai, Calcutta, Punjab, Tamil Nadu and Karnataka for on its first year.   But Onida was not able to study further the consumer market and the buying behaviour.   If only they have studied what is the evaluation and perception of the people regarding candy they may have not problem at all. Onida’s should have considered the economic conditions of the people.   Candy’s price was a little bit higher compared to its competitors.   If only they have lowered the price of the product, they might get the attention market. The overcrowded CTV market has Japanese brands like Sony, National Panasonic and Toshiba; Korean brands like Samsung and LG; the big two Indian brands BPL and Videocon were just some of the competitors of Onida in the CTV market.  Ã‚   Like Onida all of the competitors are capable of superior technology.   They have compete with their prices especially on the most price sensitive segment of the televisions-the 14-inch CTV.   BPL KWR , LG d70 and Samsung 3302 and 3379   fell in the price range of Rs 7,000 to Rs 10, 000. Onida’s Candy was Rs 2000 higher than BPL’s 14-inch set and Rs 3000 more that Aiwa’s   14-inch television.   The company source felt it was just the right price for Onida Candy.   They forgot to consider the economic situation of the people and its buying power. Another thing they weren’t able to understand was the impact of the social and cultural factors.   The CTV consumer markets were very conservative and having loud coloured cases for televisions just gave them more problems.   The lower and middle class preferred television with sober colours as a reflection of their lives. Microenvironmental Factors The suppliers for Onida is not a problem because they were producing their own CTV sets.   The problems arise in the marketing intermediaries and the target market. Onida must have given seminars to dealer’s and salesperson on how to market their product properly because this people were used in selling television cased in black, grey and other dull colours it is hard for them to accept Candy’s bright hues.   On the seminar they could have explained why those colours were chosen and convince them that this hues will be a hit to the people. The target market of Onida was another problem; we know that they really want this television for the youth and teens.   But this people don’t have money.   Maybe they want to own this hip and cool television set.  Ã‚   But they don’t have a cash of Rs 9,900 to buy this kind of product.   They might convince their parents to buy small stuffs for them but a big money (especially for middle and lower class) like this to spend on a tv for their kids.   I don’t think those parents would allow.   Of course those head of the family(which most of the case has the buying power) would want a television set that will match the whole family’s   need and match their lifestyles.   Candy, therefore is not the right product for them. The Competitive Environment Most businesses operates on the market and needs to be aware of their prices compared with the main competitors (Brumfitt, et.al., 2001, p. 11).   Although Onida knows the ongoing sale price of the most prices sensitive CTV set in the market.   They still justified the price of their product, not lowering it, because they felt the price was right.   They forgot that most of the time consumer where influenced on the pricing of the product.   Those were the first things most people consider when buying things.   Quality, specifications, features and functions of the products were just secondary. Analyse Onida’s approach to segmentation and targeting the Candy range and evaluate the effectiveness of their marketing mix strategies to position the Candy appropriately. The purpose for segmenting a market is to allow the marketing/sales program to focus on the subset of prospects that are â€Å"most likely† to purchase the offering. In the case of Onida Candy, they focused sharply on young people.   It was targeting people between the ages 12 to 25.   They did this because based on the research this age group is looking for personalized product.   As a result they configured Candy will meet this need.   They forgot to consider the buying power of this age group.   This age group is still dependent on their family and will not be able to buy this kind of product cost so much. Maybe they will have an influence on their parents but in most household buying a television is a major decision, it’s a family thing (especially for middle and lower class families) which will likely acquire one tv set that will be used by the whole family.   Though the features of the Candy like configured channels based on the house members’ choice of channels is good.   The colour and packaging of the product is not appealing to the family as a whole. The company could have at least included in the research the priority items that this age group that they were targeting wanted to own.   They should have study first, is owning a television set at least in the first top five priorities of the items that this age group wanted to own. Another thing that Onida did which cause the failure of Candy was the wrong timing of Candy.   It was Onida’s research on the need of the market to replace their black and white tv with coloured once and purchases were made by 24-35 year old.   Still, they mismarketed the Candy tv.   This second set buyers were looking for coloured once, but ofcourse they were still considering the prices of the CTV that will replace their black and white. Onida also forgot to pursue the idea to the market that their television set is the best choice as add-on tv set for the family (since they fixed the idea that Candy is for young people).   Ofcourse prospective buyer of the television set will not relate to that TV and would think it is not for them anymore. The analysts were right when they commented that the initial success of Candy was purely a mere reflection of the market trend.   Depending the company on market trend is very dangerous to the company and to their investment (just like what happened to Onida). Because trends fluctuate, they go up and then go down and you will never know if it will go up again. The Product Life Cycle Introduction Stage In the introduction stage, the Onida seeks to build product awareness and develop a market for the product. The impact on the marketing mix is as follows: Product: they named the product Candy, It came in four colours, Berry Blue, Mint Green, Lemon Yellow, and Cherry Red. Pricing: they prices it at Rs 9990 Distribution: It was distributed nationwide but more effort was made in Mumbai. Promotion: They invited 80 dealers to discuss how to make Onida brand appealing to the youth.   They also use the Cricket Cup to rejuvenate the brand. Growth Stage In the growth stage, the firm seeks to build brand preference and increase market share. In this stage Onida’s product quality is maintained and additional features and support services may be added. In April, 2000 they launched the dual coloured television cabinets.   They called this Candy Duets.   It was available in four colours – Black Currant, Raisin Cream, Berry Delite and Double Mint in a 14 inch version.   They also had a Candy duet in a 20 inches   version in three colours – Cherry Ice, Cool Mint, and Berry Delite Pricing of Candy   Duet in 14 inches maintained the price at Rs 9990 and Candy Duet 20 inches was priced at Rs 12,990. Distribution channels are added as demand increases and customers accept the product. The had a nationwide distribution of the Candy brand. Promotion of the product is still concentrated on its target market : the young people. Maturity Stage At maturity, the strong growth in sales diminishes. Competition may appear with similar products. The primary objective at this point is to defend market share while maximizing profit. Product features may be enhanced to differentiate the product from that of competitors. This was done by Onida through launching the dual TV cabinets On this stage, in order to be competitive to the market Onida supposedly lowered its price to compete to other TV suppliers.   But they were firm to remain their price at Rs 9,990 for their 14 inches and Rs 12, 990 for their 20 inches TV. Distribution becomes more intensive and incentives and supposed to be in this stage the Onida offered the customers and the distributors incentives as a motivation to Promotion on this stage was weak.   They never give a strong emphasis on the strong qualities of the Candy and its advantages to other CTV that is on its same product line. Decline Stage As sales decline, the firm has several options: They maintain the product rejuvenate it by adding new features to the 20 inches candy duet. Discontinue the product, liquidating remaining inventory and selling the remaining items at a low price Using the data given in Exhibits I and II; the other information given in the case and your analysis for question 2, make recommendations as to how Onida develop their targeting, positioning and marketing mix The Onida Candy CTV must be discontinued because it will just brought more losses to the company.   The Onida should launch a new brand of television that has the functions of Candy but with a new name.   More sober colours that will match the life styles of the Indian people.   Those colours that will attract those people who have a buying power.   It is also recommended to the company to change their target market to those people who have the purchasing power.   There should be a research or survey on what they want and what they need in buying a television set. Marketing Mix Onida must attempt to regain the loyalty and faith of the customers to their product.   They should renew their brand and their target market and must blend these four marketing mix variables in an optimal manner. a. Product The product is the physical product or service offered to the consumer. A sober colours for the casing of the new CTV set will be better and a good warranty offering for the new product.   It should retain the functions of the Candy CTV like the configuration of channels; it is also good to incorporate other features like messaging or reminder on the CTV, built in games and multi-channelling. b. Price The price of the product should be competitive and must be in line with the other available product on the market.   Possible discounts and promos for the product must be done to motivate the prospective clients to buy the product c. Place In the early stage of the product, a nationwide distribution must be planned out perfectly.  Ã‚   There should be a follow-up plan or study in the possible international market or exposure of the product. d. Promotion The company should invest in the advertising of the product to assure the company’s success on this new product.   Proper placing of the ads on tv, prints and internet can make a good return of investment. Market Segmentation and Target Market Strategies We can segment the Indian consumer market by the following: Place they Lived: Urban, rural or suburban – people in different location or place they lived have different preferences when buying a CTV, therefore we must learn what they want and what they need in order to satisfy them. Income : low income earners, middle income earners and high income earners –   the income and economic status of the people should be considered in pricing the CTV.   Because if its to high then the prospective buyer will not buy because of practicality reasons. Social Class: Upper class, Upper Middle, Lower Middle, Lower Class – people that belong on this classes have different preferences therefore we should study what they want.   How strong is their buying power, so that we can adjust our marketing strategies. Usage rate: Nonuser, light user and heavy user – this segmentation basis can help us also in our marketing strategy. Target Market: Once we have studied the market segmentation and learned who are the heavy users of CTV on different social classes, age, gender, urban-rural, or gender.   Then we can decide to who we will concentrate our marketing strategy. Bibliography Brumitt, K., et.al   2001.   The Competitive Business Environment.   Nelson and Thomas Ltd. UK., Chapter 2 pp. 11. Finch, J.E. 2001. The Essentials of Marketing Principles.   Research and Education Association, USA,   Chapter 1 p.4.