Product and Target Market Planning
The government of Kenya, an East African Country, has prioritized Modern-housing project as part of the presidency five-year plans. The government intends to be able to provide affordable modern housing for the better part of its population (Waweru, 2014). Reliable Construction Company chose Kenya as the product market. The company intends to introduce into Kenya, the sale of concrete and precast materials as a way of venturing into the foreign market. The ready market for these products influenced the company’s choice of the country as a foreign market. The market is set to be the company’s biggest venture since its launch in 2017.
The company deals in the distribution of concrete and precast materials. The precast materials consist of various molds and shapes. The physical attributes of the products provided ensure that they can be provided to any market as long. This is because the raw materials to produce these products are sand, cement and metal rods. The company uses CRH Plc cement in the United States which is the best cement in the world with its production company named the largest cement company in The United States. The bulkiness of cement makes it hard to be transported to Kenya for the use for the production. However, it was noted that the southeastern part of Kenya has limestone which is a raw material for the manufacture of cement and therefore means that an adapted form of concrete and precast materials can be provided by the company.
There are many factors that will influence the movement of the products. Firstly, the political ground will ensure that the introduction of the product is boosted. This is because they need to convince the electorate that they are delivering. Secondly, Kenya is a third world country but among the highly developed in East Africa. There are many developed industries that deals with the same products as Reliable Construction Company and therefore the industries will provide the raw material to produce the company’s products. The economic state of the country will be beneficial to the production of the products. The country has an unemployment rate of twenty-six percent (Waweru, 2014). This, therefore, means that the country will provide for the labor needs of the company.
The market is a developed market with valuable potential customers. The country is on the verge of modernization and therefore the need for the products is propelled by the consumer’s need to develop. The number of real estate realtors is increasing daily and this, therefore, means that there is a ready market for the products (Waweru, 2014). The country is in East Africa which is a long distance from the United States. However, with the introduction of the direct flight from Kenya to The United States late last year, this has increased the suitability of the market.
Reference
Wawerù, K. (2014). The ABC of real estate investment in Kenya: The law, the logic, the math.
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