Target Market Analysis

6. Target Market Analysis

We now appreciate the potential of the central American market, weather conditions, mosquito fauna and reasonable economic situation give us a good perspective. The focus in this business plan will be Guatemala. Due to business experience, marketing knowledge, distribution channels and good business relationship with local sales companies.

Guatemala’s economic freedom score is 61.2, making its economy the 83rd freest in the 2014 Index. Its score has increased by 1.2 points, reflecting improvements in six of the 10 economic freedoms including business freedom, investment freedom, and freedom from corruption. Guatemala is ranked 17th out of 29 countries in the South and Central America/Caribbean region, and its overall score is above the regional and world averages.

Over the 20-year history of the Index, Guatemala’s economic freedom has largely stagnated.

Improvements in trade freedom, investment freedom, and business freedom have been undermined by an expansion of government spending and taxation and double-digit declines in property rights and freedom from corruption. Reflecting the lack of a consistent governmental commitment to structural reform, the Guatemalan economy has fluctuated in the ranks of the “moderately free” and the “mostly unfree” throughout the history of the Index.

Guatemala enjoys a relatively high degree of market openness but continues to lag in promoting the effective rule of law. The judicial system remains vulnerable to political interference, and lingering serious corruption further undermines the emergence of a more vibrant private sector.

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 2.8% 5-year compound annual growth

$5,209 per capita

Guatemala has the largest population in Central America with over 15 million people. The largest ethnic group in the Republic of Guatemala is the group of people who identify as mestizo, which is mixed ancestry, or European. This group makes up about 59% of the population. The other ethnicities in the country are indigenous populations: K’iche, Kaqchikel, Mam, and Q’eqchi. There are also some other small Mayan groups. The official language of the country is Spanish; however, there are also 21 Mayan languages that are spoken throughout the country. But, 93% of the population does speak Spanish as a first or second language.

The population is much greater than the population of both Honduras and El Salvador and has been historically as well. Based on the total land area and the total population, the population density of the country is about 348.6 people per square mile. The population of the Republic of Guatemala is expected to maintain its population growth trends that it has been exhibiting. There is also a substantial positive migration rate, which accounts for the population increase as well.

Year Population (millions) Percent Increase

2015 16.304 5.6%

2020 18.342 12.5%

2025 20.468 11.6%

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To get a proper perspective of the Guatemalan consumer situation lets see the consumer price index and consumer purchasing power.

Consumer Price Index CPI in Guatemala averaged 26.56 Index Points from 1950 until 2014, reaching an all time high of 118.19 Index Points in November of 2014 and a record low of 1.71 Index Points in April of 1950. Consumer Price Index CPI in Guatemala is reported by the Banco de Guatemala. In Guatemala, the Consumer Price Index or CPI measures changes in the prices paid by consumers for a basket of goods and services.

GDP per capita; PPP (US dollar) in Guatemala was last measured at 5019.41 in 2012, according to the World Bank. GDP per capita based on purchasing power parity (PPP). PPP GDP is gross domestic product converted to international dollars using purchasing power parity rates. 1990 2000 2010.

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Country comparison:

Now we compare Taiwan vs Guatemala. The reason is simple. Inadays product is already established in Taiwan and according to the company data they control 60% of the market share.

Indices Difference

Consumer Prices in Taiwan are 13.48% higher than in Guatemala Consumer Prices Including Rent in Taiwan are 15.24% higher than in Guatemala Rent Prices in Taiwan are 21.67% higher than in Guatemala Restaurant Prices in Taiwan are 20.29% lower than in Guatemala Groceries Prices in Taiwan are 29.28% higher than in Guatemala Local Purchasing Power in Taiwan is 87.64% higher than in Guatemala

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We can appreciate the difference and that leaves forward to the focus in which we will market the mosquito trap in Guatemala. The focus will be in the middle to upper class segment households, hotels, spas, supermarkets.

Product Market Segmentation

According to local surveys for consumer goods. The main focus of the product will be domestic rather than industrial. Leaving the industrial segment to a 15% of the market share to hotels, spas, tourism spots, restaurants, etc. Domestic segment with 75% and others with 5%. (Source. Grupo Fe 26)

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The importance of eco-friendly technologies lies in the fact of a sustainable and long lasting product. Not only Inadays is eco-friendly product and practically harmless to the end user.

The green movement is gaining consistent momentum every day, so it’s essential to exercise eco-friendly marketing techniques to keep up with the evolving market. Many companies and organizations are utilizing sophisticated technologies as well as grassroots initiatives to provide items that are sustainably created. As such, consumers are constantly looking for greener alternatives to their favorite products, so understanding how you can align your business eco-friendliness is imperative.

Although not a leader in the consumer goods, Latin America plays an important role into the eco friendly trends. Eco tourism being one of them. Many of the isolated nature lodges and tour operators around the country are pioneers and dedicated professionals in the ecotourism and sustainable tourism field. Many other hotels, lodges, and tour operators are simply "green-washing," using the terms "eco" and "sustainable" in their promo materials, but doing little real good in their daily operations. Responsible

Travel (www.responsibletravel.com) is a great source of sustainable travel ideas with listings on Latin America; the site is run by a spokesperson for ethical tourism in the travel industry. Sustainable Travel International (www.sustainabletravelinternational.org)

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