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Markets
and marketing for entrepreneurs - II Let us imagine
you want to sell instrument boxes for schoolchildren in Sri Lanka.
What is the size of the potential market? Let us begin by asking
a few questions: How many school
children are there? The 2000 report of the Central Bank states that
it was 4,337,188 students, both public and private schools combined.
Does it mean over four million instrument boxes? No. Only kids from
grade six onwards need them. Since the same source reveals that
roughly over 300,000 pupils enter schools every year, we can assume
that, if not many drop off, the same number will get into grade
six each year. You can get more up to date and tailored statistics
from the Department of Education. Obviously all
these kids are spread throughout the country. Are you ready to reach
out to everyone? You can. But would you want to? Think of what it
entails, both the costs and the benefits. Most people
buy their instrument boxes at bookshops. How many bookshops? Even
if you decide on one in each town, you are still going to have hundreds
of places all around the country. Of course, there are other channels
and methods. Then we have
to see how long a typical instrument box lasts. I used only two
instrument boxes from year seven to eleven. That is one every two
and half years. Ask your children, friends and family members. Some
people buy a new box every year. Others may do so every term. Try
to see whether consumption patterns change with different levels
in society. It should. Lack of instrument boxes is one reason for
dropping out of school. Talk to people. Talk to bookshop owners.
Do your own market research. Population
statistics show that the Western Province is home to over quarter
of the population. Colombo and Gampaha districts alone account for
nearly 20 percent of the population. Perhaps you should focus there?
Again, since most national schools are in the big towns, you may
argue that you might as well have a presence only in the big towns.
It is all up to you. As the above
demonstrates, depending on the type of product or service you will
have to dig into a lot of information. This probing, asking, questioning
and thinking will provide an insight into your chosen market. Where else
can you get information? Marketing for the small business, an Athwela
publication which I co-edited gives the following sources: Central
Bank reports, customs statistics for imported items, reports from
the Department of Statistics, books, magazines, trade chambers and
associations and their reports and most interesting of all, annual
reports of competitors or organisations serving similar markets.
You may be
able to think of more sources applicable to you. Try visiting trade
fairs and exhibitions. Refer your local library. Internet is also
a wonderful source. We have so
far touched only the tip of the iceberg in marketing. There is a
lot more under the water. We will dive in deep next time. Please
send your questions and comments to btimes@wijeya.lk
or call 074-304100. (The writer is a Chartered Management Accountant by profession with a Masters in Business Administration from the University of Strathclyde in Glasgow. She is the Managing Editor of Athwela Vyaparika Sangarawa (Athwela Business Journal), the only Sinhala management monthly targeting the small and medium-sized business operators.) |
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