Marketing Cell Phones to Poland and Slovakia

MKT 359

HW 5

2/28/10

*POLAND Chain ratio* method

Total population 38,482,919 (July 2009 est.)

Adult population 15-64 years: 71.6% (male 13,713,078/female 13,845,251)

Cellular/mobile phone users 44.004 million (2008)

Population below poverty line 17% (2003 est)

38,482,919 x 71.6% = 27,553,770 x 17% = 4,684,141 – 27,553,770 = 22,869,629

SLOVAKIA Chain ratio method

Population 5,463,046 (July 2009 est.)

Adult population 15-64 years: 71.7% (male 1,952,527/female 1,965,646)

Population below poverty line 21% (2002)

Cellular/mobile phone users 5.52 million (2008)

5,463,046 x 71.7% = 3,917,004 x 21% = 822,571 – 3,917,004 = 3,094,433

Trade audit

Slovakia

Exports $45.05 billion (2009 est.)

Electrical exports 21.3%

Imports $46.47 billion (2009 est.)

Imports Electrical 19.3%

45,000,000,000 x 21.3% - 46,000,000,000 x 19.3% =* $710,000,*000

Poland

Exports $134.7 billion (2009 est.)

Electrical Exports 23.7%

Imports $141.7 billion (2009 est.)

Imports Electrical 21%

The information from both analysesgives my company an idea of how much money to put into things like advertising. The smaller the market the smaller the advertising budget, without an market size assessment the company wont know how big the market is and demand projections will be inaccurate. These assessments also give indication to the number of people that will be reached by promotion. The assessment also allows investors to gauge the amount of people the product will be able to reach. The numbers show investors that the large numbers of potential customers is a sound investment.

The trade audit helped in a couple of ways. First, it showed that there is no company producing cellular phones in Poland or Slovakia. Second, it showed there is a willingness to import products that are not produced inside of the country. Some red flags were raised but one was brighter than others. The amount of imports in the electronics...