Identification of a Small and Medium-Sized Enterprise - Essay Example

? Market Research Report on printing industry Contents Introduction 3 Identification of a Small and Medium Sized Enterprise 4 Evaluation of the Printing Industry 6 Printing Industry in United Kingdom 6 Printing Industry in the World 7 Demand Forecasting in the Printing Industry 11 Identification of Target Segments 11 Effectiveness of the Marketing Mix Structure 12 Utilization of the Research Information 13 Conclusions and Recommendations 13 References 15 Introduction Print has become an essential medium for all the companies in global scenario. The UK printing sector is a very vital part of UK economy. Printing industry produces a lot of business products and luxury products. These products have become essential part of the daily business cycle in the industry. In business print is essential to communicate, to promote products and to make an impact with the clients. Print is used in business to create logo and advertisements to stand out in the market place. Companies often prefer their stationeries, be it business letters, pamphlets or catalogues to be customized and according to their requirements. This strategy of brand building is applied by all the companies. This is where the print industry enters the world of business related print products. In general market where print products are sold as leisure products, print industry has a strong hold. Products like Cards, customized stationeries, and craft products have given print industry a very distinct market to focus on. The print industry is also accredited for the production of lot of educational material. The print industry market is divided basically into three distinct market segments – Corporate sector, Gifts and Entertainment sector and educational sector. The print industry has witnessed gradual and steady growth, the demand for print products have increased considerably in the market. A lot of speculation had surrounded the print industry during the electronic media revolution. However many analyst were proven wrong when the print industry kept growing despite the parallel growth of electronic media. A huge portion of sales in 2004 was due to sales of print products like brochure, literature, leaflets and books. Print industry today is armed with the latest technology and experts who are creative and innovative in their approach (Proskills, n.d). Identification of a Small and Medium Sized Enterprise The European market alone has 132,000 functioning business houses involved in printing industry. This comprises of 85% of SMEs. These SMEs have less than twenty employees each yet they are able to rake 105 billion EUR as annual turnover. The global printing market is dominated by the European printing companies. Most of the printing companies depending on their size are involved in export. Globally the printing market is very much static and not very dynamic in its growth. Most of these companies operating in printing industry are Small and Medium enterprises run by Entrepreneurs. These entrepreneurs have creative bent and open a medium size businesses. However they do lack the expertise in operating the business aspect of the industry. Most of these companies have issues like resource sharing, creative differences and networking as major barriers towards growth. The SMEs also have to face fierce competition from players who are better established and are conglomerate in their operations. Finance becomes a huge criterion for these SMEs as expanding in new market especially in other countries requires a substantial capital. Internet and electronic media although has not been able to completely take over the print sector but does have some influence on the print industry. Thus, economy of scale and the fad of new media have made an impact on the growth of SMEs in print industry (Batgraphs, 2011, p.6) One of the most important aspects for the small and medium enterprises in the printing industry is the incorporation of recent technology in their operations. The introduction of advanced and improved tools in the area of printing has been very rapid. The global economical crunch had forced many SMEs in the printing industry to sell out their small business. Many big players took advantage of this crisis and acquired many small and medium enterprises. Theses SMEs due to lack of capital had no choice but to opt for Mergers and Acquisitions. The SMEs which had the capital to sustain opted for diversification. They used their capital to diversify into multimedia. They incorporated newest technologies in the area of multimedia to enhance their quality and products. The management of the SMEs realized the importance of upgrading their technology and output. The SMEs are often under a lot of pressure to do extensive networking. A lot of the contracts in this sector are won by the SMEs due to extensive networking. The SMEs are also now looking at market outside their country. Small yet profitable contracts are targeted by theses SMEs. Market in China and India are opening up for the print industry. Whereas India has many home groomed SMEs in printing, China still has a lot of market yet left to be explored. The SMEs in Europe especially in UK have to concentrate in these evolving markets in China and Brazil for further expansion. These SMEs have to also improve their product range. The newest trend in printing is the product should be environmental friendly. The printing industry has to now produce products which appeals to the awareness amongst people regarding the environment. They have to be cautious that the entire product cycle starting from procurement of the raw material and packaging of the product is done in an environmental friendly way. The SMEs are also benefitted from the internet because it gives them a cost effective way of reaching their clients. They can target small business houses which themselves want to acquire cost effective printed products. Evaluation of the Printing Industry Printing Industry in United Kingdom The UK printing sector consists of lesser than 10,000 operating businesses. There has been gradual decrease in the number of printing companies operating due to recession. Most companies have made printing an in- house operations Thus, small companies which were thriving on outsource of small printing operations were forced to close down. Almost 85% of the operating print companies are having staff members less than 20 in number. The UK printing sector is the second largest in the Europe and comes second to the German printing industry.(Shunde Shengshi Quenli Packaging and Printing Machinery Co. Ltd. , 2010). Other than economic slowdown the digital revolution also has made the competition tougher for the UK printing companies. UK industry was also under attack from the environmentalists. The main issue being that paper is still linked to the deforestation. Paper production still demands a lot of energy and is seen with a lot of suspicion. People are very cautious about the origin and the grade of paper. The UK prints Industry in growing as a community. It has been able to establish itself as an industry which is sensitive to the cause of environment and the health of its employee. Despite the global pressure on the production of o print products UK print industry has been able to follow the guidelines to have their production safe for environments. They are trying to achieve these goals by using smart advanced technology. Incorporating these technologies in their process reduces lot of paperwork. The process also gets faster. The companies are able to develop their designs and concept faster than earlier. Using technology in printing also gives them the option of being more accurate in their production. To be more environmental friendly the companies have incorporated methods and procedure which reduces the waste in the entire cycle. To have safe working environment for the employees the UK government has enforced new regulations. The health and safety executive has made it compulsory for the printing companies to follow proper training of the employees. The companies have also been asked to have regular checks of their machineries to ensure safety of employees handling the machines [HSE, 2011] Printing Industry in the World The industry related to the printing products is found to encompass a large number of commodities which tends to satisfy the needs of one’s day to day living. In fact, the large number of literary products ranging from books to articles and newspapers all are generated from the works of the printing industry at large. In a similar manner the products like business and invitation cards generated on occasions are also generated by the printing industry. Further the printing industry owing to the production of the above products on large scale also helps in creating a huge scope for employment generation in the different economies. Industries around the world like retail, advertising and promotion industries al greatly depend on the printing industry in order to gain the recognition of large number of consumers. With the development of the product portfolio like the generation of laser and color printers the printing industry as a whole has gained considerable importance in gaining hold of developed markets (Economy Watch, n.d.). In regards to the region of China it is found that printing industry in the region gains access to a larger market base owing to a number of parameters like high amount of product and service diversification involved, aptness and proper customer servicing rendered and a proper trade and competitive environment. Moreover the printing industry in China also works on mass innovations to render high amount of sophistication to the printing process and technology involved. Large number of trade exhibitions and forums are organized to help the Chinese printing industry get access to worldwide markets. Owing to the above reasons the Chinese printing industry becomes able to generate growth of around 6 to 8 percent on an annual basis. The printing industry in China helps to generate a large amount of turnover during the 2003 to 2008 period which acts as a potential contributor to the Chinese economy (Demao, 2011). The same can also be graphically represented as follows. Figure 1: Turnover Potential of the Chinese Printing Industry (Source: Demao, 2011) The printing industry in China produces a plethora of products like books, magazines, newspapers, packaging and other printing materials for sharing commercial information. These separate sectors singularly contribute to the generation of large amount of revenues in the printing industry in China (Demao, 2011). Again the revenue generation potential of the different sectors can also be represented by charts and diagrams as follows. Figure 2: Revenue Potential of Book and Magazine Printing Sector (Source: Demao, 2011) Figure 3: Revenue Accruing from the Newspaper Printing Industry (Source: Demao, 2011) In a similar manner the packaging printing sector also contribute a lot to the revenue generation in the Chinese economy. The same can also be graphically shown as follows. Figure 4: Revenue Generation from the Packaged Printing Products in China (Source: Demao, 2011) Demand Forecasting in the Printing Industry Identification of Target Segments In United Kingdom the printing industry tends to cater to the needs of the customers pertaining to different sectors like manufacturing industries, publishing and other digital printing firms and also other commercial sectors depending on the production and sale of printing matters and stationary products. However with the growth in potential demand of the external market the printing industry in the country is countering the need to develop along the product sphere to enhance its revenue margins. (Stamp, 2010, pp.6-8). Effectiveness of the Marketing Mix Structure Printing Industry catering to the product market operates on the basis of four mixes viz. product, price, place and promotion. Focusing on the product interface it is observed that the printing industry in United Kingdom not only endeavors to develop their products based on digital and other technological innovations but also develops special software packages to personalize the products to the customers. (Stamp, 2010, p.12). Printing products in United Kingdom are also produced out of environmental friendly materials which enhances the social accountability parameter of the printing companies. This fact also enhances the productivity and quality parameter of the different printing products in the country. Pricing of the printing products in United Kingdom it is observed that such products are marketed to the customers at highly affordable prices from 37 to 185 Pounds. These products rendered at economical price ranges by the printing companies however endeavour to render the best quality possible to the customers. (alocalprinter.com, 2006). In terms of Place Mix the printing companies in United Kingdom are spread along a wide market area pertaining to different regions in British Isles. This wide spacing of the printing industries in United Kingdom helps in catering to the variegated needs of the customers. (AccessPlace, n.d.). In the promotional side the printing companies to focus on gathering a large market tend to take resort to highly innovative practices involving the digital media to advertise their products and services to larger customer bases. Further the channels of the different advertisement companies are effectively used by the printing company to fulfil the promotional objectives. (Stamp, 2010, p.13). Utilization of the Research Information The above research information can be used by the potential printing companies to render effective forecasting in regards to the sales and revenue scenario. Utilization of the information shows that the demand for the colour printing products in United Kingdom would take a high turn in the future periods owing to a high growth trend in both the 2006 and 2007 period. In respects to the growth trend it is observed by the printing companies to account for around a 5 percent growth on an annual basis till the 2012 period. To help counter active growth large number of financial bodies is strongly focusing to render high amount of investments in the development of the colour printing industry in United Kingdom. (BPIF, n.d.). Conclusions and Recommendations The development of small and medium sized industries in both United Kingdom and the world at large reflects its growing contribution to the growth of the economy of different regions. Citing an example of the small and medium sized industry the case of the printing industry is taken which reflects a growth stage in the product and industry life cycle. In respect to the printing industry the region of United Kingdom is chosen which is also compared to another international region like China. It is observed that for United Kingdom the printing industry had taken a saturated business phase which implied the development of products, distribution and promotion strategies to gather a large market base. In United Kingdom the demand for the colour printing products are taking an increased trend for which the printing companies are busy devising such models based through proper innovative structures. Moreover the printing companies through the use of information technology are also focusing on the development of special software to help render further product innovations and further personalize their products to the customers. In United Kingdom the consumer circle for the printing products is mainly constituted by major companies pertaining to the manufacturing and advertising and digital media sectors. The printing companies tend to produce packages and other colourful materials for these industries. Printing companies in United Kingdom are also spread along a large geographical area and render quality products to the customers at highly reasonable prices. These companies also gather large number of consumers by focusing on the advertisement and promotion of the commodities produced through the online sphere. Potential investors in United Kingdom having seen the growth trend of the demand for colour printing products are rendering large amount of investment in such companies. References Economy Watch. (No date). Printing Industry. [Online]. Available At: http://www.economywatch.com/world-industries/printing/. [Accessed on May 6, 2011]. Demao, W. (2011). China Printing Industries. [Ppt]. Available At: http://www.chinaprint.org.cn/english/14-09-5-11.pps. [Accessed on May 6, 2011]. Stamp, G. (2010). The Need for Transformation within the UK Printing Sector. [Pdf]. Available At: http://www.ipex.org/files/graham_stamp_white_paper__final.pdf. [Accessed on May 6, 2011]. alocalprinter.com. (2006). Eco-friendly printing at amazing Spring prices. [Online]. Available At: http://www.alocalprinter.com/. [Accessed on May 6, 2011]. AccessPlace. (No date). Printing Companies. [Online]. Available At: http://www.accessplace.com/printing. [Accessed on May 6, 2011]. BPIF. (No date). UK Printing: The Facts and Figures. [Pdf]. Available At: http://www.ipex.org/files/ukprint_flyer_final.pdf. [Accessed on May 6, 2011]. Batgraphs.(2011).Bats Implantation in the European printing industry.[Pdf]. Available at: http://www.batsgraph.com/rs/75/d112d6ad-54ec-438b-9358-4483f9e98868/213/fd/1/filename/report-bats-implantation-in-the-european-printing-industry.].[Accessed on May 06. 2011] HSE. (2011). HSE issues new guidance on handed platens.[Online]. Available at : http://www.hse.gov.uk/printing/alert.htm . [ Accessed on May 06 . 2011 ] Proskills (No date) . Working in the industry. [Online] . Available at: http://www.proskills.co.uk/prospect4u/printing/working_in_the_industry.php . [Accessed on May 06. 2011] Shunde Shengshi Quenli Packaging and Printing Machinery Co.Ltd. (2010). The State of the UK Print Industry.[Online] Available at: http://www.ssquenli.com/new_eng.asp?id=135517 [Accessed on May 06. 2011] Read More