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Market situation
Study of dinnerware market confirms that an opportunity exists to concentrate on the type of the products proposed for handling by Janware. The large wholesalers and subsidiaries have limited interest in this specially field while the pottery and ceramics suppliers lack the experience and commercial background to deal with a larger customer base. It is seen that a range of good products can be distributed and supported by Janware that will meet both the needs and wants of a growing consumer base desiring a mid range cost product with design uniqueness.
The competitive retail pricing situations is when comparing the market low end, e.g. prepackage dinnerware service for 4 in porcelain, stoneware or glass against the top market products in quality china form the internationally recognized manufacturers. Setting for 4 in the retail chain stores or specialty supermarkets is available in the $30 – 60 range given appearance and versatility (useable in microwave ovens, etc). At the top market end, setting for 4 with the same table items would be retail priced in the $500 – 700 range depending on the name and design of the product. There are variables within this significant range of retail prices, but the median price for an equivalent set of designer pottery ware would be $300. It is believed that this market gap can be utilized if products are properly promoted and marketed and that at least 600 full sets (service for 8 with supplement) can be sold trough Janware Distributors in the first year of activity with a rapidly increasing sales volume as the range selection and customer base expand.
The business concept is considered to be favorable and has been studied with respect to the know market situation and reviewed with both suppliers and potential customers. Given the experience of the owners, and the available opportunity the enterprise will be successful as planned.