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Market Report
Marketing & Sales Guidelines
State Of the Market
 

 

 

Market Report

 

@30/07/2010

GLOBAL ECONOMY- The OECD says that the world is flirting with a double-dip recession because of market pressure on Europe governments to slash spending. The low capital values of euro area banks are also aiding in the slow recovery.                  Australia's fortunes are alligned more to Asia and accordingly there is a concern of a slowdown in this region and possibly coupled by any European economic slump.

CONSUMER SPENDING - The CBA reports the Australian job market is stronger, consumer spender is at its weakest level since the height of the global financial crisis. The chief reasons behind the decline over the last quarter, which was the the worst result since the start of 2008, were higher interest rates, doubts over the state of the global economy, rising utility charges and council rates, all of which were weighing on consumer minds.

LABOUR MARKET, STAFF RETENTION, EMPLOYMENT & UNEMPLOYMENT - There is difficulty for +/- 33% employers to find suitable staffing. Accordingly, the tightening labour market has resulted in employers having to invest in training as well as wage increases to maintain a suitable staffing kudos. However, there are anomalies within the labour market infrastructure. Some of the flaws include (a) a large pool of under-employed workers, who want to work full time but can only find part-time work (b) the claw back of means tested benefits as incomes rise has the perverse effect of locking people into part-time work, with part-timers losing up to 70% in every $ they earn to government (c) Australia's unemployment rates are worse than the unemployment figures suggests, because 25% of those with jobs are working part-time, and 21% of people of prime working age (25-54) have no job at all

JOB CREATION & JOB ADVERTISEMENTS - There is a disconnection between number of jobs advertised and number available...say 5 jobs per 1 advert.

JOB STRATEGY - Most states are contingencies in this area are on target.

WAGES - ahead of a series of pay agreements coming up for renegotiation, unions are pushing wage claims of up to 7%

SMALL BUSINESS - While in the current economic climate, SME's would like to switch lenders to gain better finance deals. MAny SME's have failed to comply with new ATO employee share plan rules.

GOVT. GRANTS - There are +/- 403 state and federal grants currently on offer for businesses, totaling more than $16 billion  of which $5 billion is allocated each year. Most companies don't apply because they don't know what's available or they are scared of all the red tape. information per Govt. grants can be found  at http://business.gov.au/Grant finder/Grantfinder.aspx

HOUSEHOLD DEBT - there is a rise from 18.8b to 19.6b in credit card debt @ 05/2010. Expert note that consumers as well as small business, are more likely to use credit cards now due to rising mortgage and commercial loan costs, with higher interest rates. Retailers, however, are not seeing any parallel boost in turnover.

SKILLED MIGRANTS & AGEING POPULATION - It is estimated that circa 2050, people over 65 will make up 23% of the population

To alleviate this, skilled migrants is being promoted especially in non-suburban areas.

 

Mergers, Takeovers, Acquisitions..

FOSTER'S GROUP - is still pursuing a separation from its wine division. Has abandoned the divestment of 4 vineyards.

SIGMA PHARMACEUTICALS- has decided its generic drug business.

AXA ASIA PACIFIC-NAB and takeover target have extended their acquisition arrangement DULUX- the Orica spun-off group has listed on the ASX. Orica is now seeking mining sector acquisitions.

HEALTHSCOPE-Currently in divestment mode with TPG and Carlyle group.

BHP BILLITON-have advised +/- 150 Adelaide Finance Division staff of impending retrenchment .

BILLABONG- currently in staff rationalisation/retrenchment kudos.

JETSET TRAVELWORLD & STELLA TRAVEL- looking at a JV; currently with the ACCC.

MACQUARIE GROUP-talking to US Spirit Finance Corp.

EMECO HOLDINGS- Considering divesting of its Vic. civil equipment rental business

 

Companies Reporting Poor Results...

NUFARM

SIGMA PHARACEUTICALS

WOOLWORTHS [NSW]

GOODMAN FIELDER

MIRRABOOKA INVESTMENTS [VIC]

ERA [ACT]

BRAMBLES LTD [NSW]

TELSTRA [VIC]

AXA ASIA PACIFIC [VIC]

PLATIUM CAPITAL [NSW]

COUNTRY ROAD [VIC]

SCANTECH LTD [SA]

PAPERLINX LTD [VIC]

PHOTON GROUP [NSW]

NTH. QLD. METALS [QLD]

AIR PACIFIC

 

Companies Reporting Good Results...

COCHLEAR LTD [NSW]

APN NEWS & MEDIA [NSW]

ORICA [VIC]

COLLECTION HOUSE [QLD]

RHG LTD [NSW]

INDEPENDENCE GROUP [WA]

KMART AUSTRALIA [WA]

WEBJET LTD [VIC]

WOODSIDE PETROLEUM [WA]

RSM BIRD CAMERON [WA]

M2 TELECOMMUNICATIONS [VIC]

BHP BILLITON [VIC]

MT. GIBSON IRON [WA]

FORTESCUE METALS GROUP [WA]

STUART PETROLEUM [SA]

SANTOS [SA]

PEABODY ENERGY [QLD]

ALCOA [US/WA]

 

 

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  Marketing & Sales Guidelines

1

Resolve to organise and track your leads. Make certain all leads are in the computer, rated adequately cultivated and followed up. This should increase business by 15%.

2

Resolve to be more visible in your market. Don't assume everyone knows you. Work on ways to be seen in your market place. Use public relations to attract attention.

3

Resolve to polish your business. Is your business projecting the right message with its logo and printed materials? Give your business a new look and see how many more customers notice you.

4

Resolve to make sure your customers see you as their first choice. Don't assume that customers are satisfied just because they are doing business with your company. Look for opportunities to communicate why it's prudent to do business with you.

5

Resolve to create a new marketing niche. Find a niche where you can be the expert. Then go to work developing new business. Become the leader in this niche.

6

Resolve to develop a marketing program. Every business needs marketing program.

Every business needs marketing power to thrive today.

Put on paper a program that will give you the edge.

Nothing happens without a road map.

7

Resolve to think longer term. You need to think about who your customers will be 2, 3 & 5 years from now. Begin communicating with these prospects.

8

Resolve to improve customer communications. Review letters you send & think about those you could be sending. Create new, conversational letters that communicate using the word 'you' more often than 'we'.

9

Resolve to let customers know that you appreciate their business. It's dangerous to assume that your customers know you care. Find ways to present your commitment to customers.

10

Resolve to marketing as an  investment in the future of your business. A constant flow of new customers who want to do business with you is the result of investing in an adequate marketing & sales effort.

11

Resolve to create some excitement! It's time to beat the drums, turn up the music and let it roll. If you're not making the customers heart go pitter-patter, you're not doing the job.

 

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      Market Status Quo...          
HealthCare Demand ROI Price Profit Comments
PHAPPharmaciesRMACIES strong 16-18     always strong demand
Health Shops light 45-55 200 100 demand mainly from within the industry
Dentists selective       as above
Alternative selective       as above
Manf., W' sale& Distribution Demand ROI Price Profit Comments
Manufacturing strong 30-45 2.5m 1m quality purchasers available@$1million +
Wholesaler strong 30-35 2.8m 1m always in demand
Service & Professional Demand ROI Price Profit Comments
Accountancy strong n/a n/a n/a continuity of buyer demand & baby boomer influence... $1.05 in the $
Amusement Rounds quiet 60-80 125 100 location/sites is key factor
ChildCare Centres strong 27-35 1m 300 demand for larger centres
Cleaning solid 40-70 455 250 preference for larger entities
Consultants selective n/a v% 100 sells for 30-60 cents in the $
Courier fair 70-90 80 65  
Dry Cleaning fair 45-75      
Home Services good 60-80 75 50 influenced by employment arena
Mechanical Workshops occasional 60-80 94 75  
Newspaper Delivery Rounds weak 40-60 260 130  
Post Offices moderate 24-33 600 170 demand exceed supply = premium prices
Professionals variable n/a   200 20cents to 100 cents in the $
Recruitment strong 37-50 2m 750 most sectors
TAB Agencies fair 32-37 300 100  
Taxis fair 33-55 175 80 prices have stabilised
Transport fair 60-80 135 100 need written agreements
Travel Agencies poor 70-90 130 100 online marketing a problem
Hospitality/Accommodation Demand ROI Price Profit Comments
C' Van Parks -Freehold strong 12-20 4m 550 highly sought after
C' Van Parks-Leasehold strong 20-30 1m 250 highly sought after
Hotels-Freehold fair 33-45 500 190 country
Hotels-Leasehold fair 33-45 500 190 metro
Motels-Freehold strong 12-18 2m 300 selling quickly
Motels-Leasehold moderate 30-40 500 330 30% roi
Retail - Food Demand ROI Price Profit Comments
Bakeries-franchise fair 40-60 295 130 more popular than "independents"
Bakeries-independents fair 40-60 295 130  
Cafes- 5 days good 30-50 500 200  
Cafes-7 days fair 30-50 500 200  
Coffee Shops - 5 days good 30-50 500 200  
Coffee Shops -7 days fair 40-55 500 225  
Delicatessans patchy 60-90 250 170  
Fast Foods fair 45-70 170 100  
Food Halls light 40-70 200 120  
Growers Markets fair 40-60 500 250  
Health Food Retailers light 45-65 270 150  
Ice Cream Parlours light 60-90 160 120  
Lunch Bars light 60-80 180 120  
Restaurants weak 60-80 200 170  
Retail - General Demand ROI Price Profit Comments
Book Stores fair 35-50 350 150 some buyer interest returning
Boutiques weak 70-80 200 150 a buyers market
Card Retailers light 45-70 280 160 direct/indirect competition abounds
Dry Cleaners solid 45-70 170 100  
Florists poor 70-90 100 80 low purchaser demand
 Hair Salons fair 80-110 110 100  
Liquor Stores strong 25-28 1m 250 not many independents available
Lotto Agencies good 22-28 1m 250 buyer demand exceeds supply
News agencies good 25-30 1m 270 over supply at the moment
Nurseries variable 60-80 290 200 occasional demand
Roadhouses moderate 60-70 200 130 branding important
Service Stations poor 50-80 320 200 branding important
Sports Stores slow 45-70 315 180 direct/indirect competition
Supermarkets-Large good 23-30 2.0m 500 firm demand
Supermarket-Small fair 30-40 700 250 asian enquiry
Surf Shops good 45-50 400 190 few and far between
Video Stores light 50-90 260 180 a lot of direct/indirect competition
Wrecking Yards weak 50-75 450 250 difficult to realise goodwill
General* selective 50-80 450 175 plenty of employment, high rents in s/centres all implode upon demand
           

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