Kids Marketing Consulting Essay Example

resources are likely to consider unregistered or black market offerings (Group C), as this group typically offers the lowest rates. The industry's main assets are professionals with knowledge and a built network/resources, and exit barriers are low. Fixed costs, such as opening a factory or maintaining equipment (aside from computer-related), are also low. In general, the market research industry in Ukraine is not stable or declining; rather, it is somewhere in the developmental cycle, making it still an appealing segment to consider.

The threat of mobility in the industry lies in potential entrants. The ideal segment is one with high barriers to entry and low barriers to exit, which allows few new firms to enter while poorly performing ones can easily exit. However, there are no significant obstacles preventing new competitors from joining the market. For instance, many advertising agencies used to outsource their market research work but now choose to conduct it internally. These new participants bring a different business model while offering similar solutions/products. Moreover, independent consultants also compete alongside larger firms in the market research industry. Although not applicable in this case, a potential barrier to entry could be the lack of local connections needed to start and operate a business in Ukraine.

The threat of substitutes refers to having actual or possible alternatives for products or services. Essentially every business or product has a substitute available. A substitute can also be a product that fulfills the same purpose but in a different manner. In certain scenarios, a market research firm focusing on adult consumers could potentially serve as an alternative/substitute option.Furthermore, it can be argued that the kids/tweens/teens segment is dependent on their

parents for financial support, making them less likely to switch to alternatives. A potential explanation is that affluent families may have allocated more funds for their children's expenditures. It is proposed that esteemed marketing and advertising experts in the industry, who possess abundant resources, can easily conduct diverse market research activities.

There are various buyers in the market such as Gfk-USM, ACNielson Ukraine LLC, IPSOS S. A. and others. The threat of buyers' growing bargaining power is a concern for me as the CMO of KMC. I need to understand the control and influence that buyers have, as it can harm our business. Additionally, the services we offer are unique and new, attracting more emerging competitors. This has led to an increase in the threat of higher buyer power compared to lower buyer power.

One reason for this threat is that Ukrainian buyers are generally unfamiliar with the value of market research. They can easily be swayed towards the competition, thinking that they will receive the same or better services.

Why do I need to pay for research if I would rather spend my money on advertising, a concept that is very familiar? Despite the availability of freelance consultants, buyers have some degree of negotiation power when it comes to price, especially in highly competitive markets. Furthermore, the lack of switching costs makes it easier for buyers to consider alternative options. Additionally, buyers have the opportunity to integrate upstream, although larger buyers are not currently customers of KMC due to resource limitations. However, this segment is becoming less attractive as buyers possess increasing bargaining power. As for suppliers, DDI is likely the primary one in my case.

Being a

part of DDI has provided numerous advantages for KMC. These include access to a variety of corporate resources from other DDI businesses at significantly reduced rates, as well as the opportunity to utilize DDI's network of interviewers and market research tools. In addition, KMC benefits from sharing physical office space with SC-DOM in Kyiv at a low cost. It is crucial for KMC's current stage that we maintain our relationship with DDI as separating from our supplier could have detrimental effects on our business. For instance, if DDI were to withhold a necessary supply such as tools for market research, it would force us to seek alternative options that may be more expensive.

Raising prices on rent or other resources may harm my business, but the partnership with KMC has expanded our specialization and attracted more customers. This segment becomes less appealing if suppliers can raise prices or reduce supply, especially since there are limited alternatives and high switching costs. In terms of SWOT analysis, our strengths include exclusivity as the only market research company focusing solely on kids, tweens, and teens in Ukraine and the former U.S.S.R. region. Our proximity to the Ukrainian market gives us a competitive advantage and higher expertise. We are also considered more credible and respected due to our association with UMA. Being 100% Ukrainian-owned allows for significant cost reductions in taxes and operations, which is attractive to our Ukrainian clients.

The text emphasizes the corporate resources available through DDI at a lower cost. These resources include access to a customer base, office space experience, web hosting, utilities, business promotion expenses, and a network of interviewers for market research along with their

tools for collecting sociological, market, and consumer behavior information. It also mentions the relatively easier market entrance, operations, and growth opportunities.On the other hand, DDI has certain weaknesses that are discussed. These weaknesses include a lack of recognition from potential customers, being relatively small compared to global competitors, uncertainty about future growth strategies due to stabilization of growth, and insufficient information about the Ukrainian market segment. Additionally, potential customers have limited awareness about the importance of studying the market for children, tweens, and teens as it is not a common practice. The difficulties in gathering information from children and a lack of reliable demographic statistics are also mentioned as weaknesses.

However, there are opportunities for DDI to consider. One opportunity is to educate and attract new customers in Ukraine and Russia where domestic companies mostly focus on advertising efforts rather than market research. Another opportunity is to expand the customer base by targeting international firms that aim for better targeting of kids, tweens, and teens in Ukraine and Russia since they share a similar target group.

From the former USSR, there is still little distinction between children, preteens, and teenagers in Ukraine and Russia. The increasing economy of the country presents opportunities for areas beyond those focused on high-income individuals. However, there are several threats that need to be considered. Firstly, there is a lack of information regarding the growth rate in the children's market. Additionally, there is an increase in non-specialized Ukrainian firms that are competing for KMC's niche business. Moreover, 29% of the population lives below the poverty line, raising concerns about potential limitations to expansion. The industry also faces competition from unregistered firms operating

in the black and gray markets, which generate high revenue. Furthermore, the political situation in the region is somewhat unstable due to frequent changes in legislation, business law, taxes, and more. While not mentioned in the case, it is worth noting that corruption,bribery,and bureaucracy exist at every level of conducting business.Part 3 delves intothe advantages and disadvantages of targeting children ,preteens,and teenagers.One advantageisdiscoveringa new market opportunity within this segment.Furthermore ,utilizinghigh research analysis can be beneficial.Therearen't many options withinthe industry ,allowingfor consolidated researchwithinthis particular groupIn addition, targeting children, preteens, and teenagers presents an opportunity to engage with their parents as well. However, there are some disadvantages in this niche. One challenge is the difficulty in gathering information from children who may not express their thoughts clearly. Another drawback is the cost of employing child psychologists trained by KMC for market research purposes. Additionally, there is a lack of information about this specific segment in Ukraine which requires conducting various promotional activities to promote the business.
Regarding strategic direction for Ms.Berezovskaya, it is recommended that she pursues a course of action that aligns with global trends of developing innovative products and services more efficiently and quickly, taking into consideration the firm's core competencies.

The text below highlights a few areas of focus for consideration:

• KMC has the capability to provide data and market research to the government when they apply for grants or other types of government financing. It is possible that the Ukraine government has limited knowledge about individuals who will have a crucial role in the country's success in the next 10 to 20 years.

• There exists a significant opportunity for micro spending. A considerable portion

of the population possesses disposable funds ranging between $1 and $3 per week. This offers an excellent chance for small purchases, such as iPhone/Android apps. Among these apps, games are particularly popular among children, adolescents, and teenagers.

The excessive number of vendors catering to the market poses a problem. To address this, it would be beneficial to collaborate with someone who sells data to these vendors. For instance, there are various US-based companies that sell marketing data to software companies developing apps, which may find KMC's data valuable. Additionally, there are likely untapped opportunities that KMC has identified, such as new products for children or issues with existing products or services, that have not been sold to any clients.

Assuming there are no legal issues with mining and reselling the data, KMC may have a valuable opportunity. Similarly, SC-DOM could utilize the historical data to understand the interests and preferences of individuals who have grown up and entered a new segment. This mined data, with some interpretation, can be sold to clients interested in different age groups. Additionally, KMC's established connections with kids, tweens, teens, and young adults can be of interest to various market research firms and other audiences in the talent agency field.