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Marketing Research of Vantec

Marketing Research of Vantec

Discuss Marketing Research of Vantec within the Marketing Research ( MR ) forums, part of the PUBLISH / UPLOAD PROJECT OR DOWNLOAD REFERENCE PROJECT category; Vantec Thermal Technologies is a privately-held multinational corporation with headquarters and an R&D team in the US, sales/purchasing office in ...

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Netra Shetty
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netrashetty
Student of PGDM at Mats Institute of Management and Entrepreneurship
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Marketing Research of Vantec - April 9th, 2011

Vantec Thermal Technologies is a privately-held multinational corporation with headquarters and an R&D team in the US, sales/purchasing office in Taiwan and factories in Taiwan, Korea and China. Vantec designs and manufactures thermal products and computer peripherals. Consumers can buy Vantec products from brick-and-mortar electronics stores or online retailers. The company does not sell to end-users directly.

The printing and publishing industry’s cost structure has benefited since the mid-1990s from low prices for materials, especially paper, and a smooth transition to digital technology. Accounting for up to 20 percent of the industry’s total costs, paper prices have plummeted as a result of collapsed demand from economies in the Pacific Rim. Prices of other material and supply inputs have been held in check by import competition and the strong U.S. dollar. The move toward a digitally-based (electronic) technology has involved high capital investment costs, but the result has been greater productivity and a more highly skilled workforce. These new investments by U.S. printers have increased their plant capacity, leading to more competitive pricing in markets for printed products and intensifying the industry’s movement toward reductions of and consolidations among printing firms.

An expanding U.S. economy, coupled with rising levels of advertising expenditures, should lift the value of shipments of the U.S. printing and publishing industry to $188 billion in the year 2000, an increase in constant dollars of 2 percent over 1999. This growth in demand for printed products should be enhanced by two special events: the Sydney, Australia, Olympics and the U.S. presidential election. The U.S. economy’s strength is expected to keep both corporate profits and tax revenues at the high levels achieved since the mid-1990s, supporting increases in advertising expenditures and increased funding for schools and libraries. Printers’ and publishers’ costs are not anticipated to increase significantly in 2000, since global demand for material inputs, especially paper, remains subdued and rises in U.S. workers’ wages should not outpace the nation’s rate of inflation.

The long-term economic outlook for the U.S. printing and publishing industry is strongly positive. The industry’s rate of revenue growth, adjusted for inflation, should average 3 percent annually over the 5-year period through 2004. This growth rate is predicated on a continuation of the favorable U.S. economic trends experienced since the mid-1990s: low levels of inflation and interest rates, steady gains in school enrollment and tax revenues, and high levels of consumer confidence and business employment. Particularly encouraging is a demographic trend favoring expansion of the U.S. population’s core reading segment (those in the age group 45 and over), which is expected to expand by 10.1 million through 2004. Less encouraging to U.S. printers is the anticipated expansion of U.S. households’ Internet capability, rising to an estimated 40 percent of all households in 2002 from 23 percent in 1998. The transition of some printed materials from paper to electronic format could follow this development, but the Internet’s potential long-term threat appears to lie beyond this 5-year projection period. To date, the Internet has aided publishers’ sales of books and periodicals and has not had an adverse impact on printers’ shipments of catalogs and direct mail materials. U.S. printers and publishers should anticipate greater cost pressures through 2004 as improved global economies lift worldwide demand for paper.

Global Market Prospects

The U.S. printing and publishing industry should have ample international trade and investment opportunities over the next 5 years. Economies in Latin America and along the Pacific Rim are expected to improve, creating increased demand for U.S. printed product exports. Greater enforcement of nternational copyright protection should take place in Asia, the Middle East, and the newly independent states of the former Soviet Union, offering U.S. book publishers wider markets for their products. Growth in the global economy should expand foreign markets for U.S. consumer goods, providing the global advertising support required by U.S. periodical publishers to establish or license more of their titles overseas. In 2006, advertising was the chief revenue producer for commercial printing. In spite of ompetition from other non-print advertising, print advertising continues to grow as print presents greater consumer targeting and the familiarity and portability that many consumers still prefer. Moreover, print is considered to be able to cut through the confusion of other advertising media. Developments in total advertising expenditures also guide print revenues, although to a lesser degree compared to earlier times, taking into consideration current competition between print and electronic media advertising.

Label and wrapper printing are likely to put up the strongest growth through 2011 because of concentration in customized labeling and other higher value printing and domain graphics on such packaging.

US commercial printing revenues are expected to boost 1.3 percent per year to $82 billion in 2011.

Business analysts have come up with an overall general forecast on the commercial printing industry growth:

35% of print and prepress firms cite “growing sales/getting new business” as a top business challenge—a strong number, but less important to respondents than “pricing”
28% of print and prepress firms cite “making our Web site more interactive” as a top sales opportunity, jumping from fourth to first place
21% of print and prepress firms say they offer some kind of new media or non-print services
6% of print and prepress firms plan to invest in Web-to-print in the next 12 months
The number one type of customer cited by print and prepress firms is “non-profits or local community organizations”

Last edited by netrashetty; April 9th, 2011 at 12:20 PM..
   
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