Market reaction

Category: Market, Microeconomics
Last Updated: 27 Jul 2020
Pages: 2 Views: 101

Marketing Mix (Four P’s) The products of Z-Wing are support system and spare parts of plane body. It sold and distributed around the world through direct selling, e-commerce, etc. Z-wing decides their pricing policy in cost-conscious and reasonably priced consideration. They promote the products by some methods, consisting of direct mailings, information sheets, in the course of a website and e-commerce, ads in business pamphlets, and a demonstration section (“Aviation Research Group”, 2007).

Marketing Research Competitive atmosphere are essential, the most significant footstep is realization. Without realization, strategic marketing plan is just an arrangement without medium to force the outcomes. Realization is the solution to accomplishment (“Aviation Research Group”, 2007). Financials Break-even Analysis Another important tool of financial management is the Break Even Analysis. Results of the analysis can be used to supplement financial forecasting and contributes to better financial decision.

Break Even Analysis is an assessment regarding the connection between sales volume and profitability. It is an effort to define in which point sales will cover cost associated with production. Within financial forecasting, this assessment is required in order to see whether investment within the particular business will bring profit or not. It will also display the amount of additional resources (retained earnings) and when will the company obtained it.

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The break even concept is generally used for calculating the amount unit sales required to cover all corporate expenses. The formula is as follows: BEP = TFC / (SUP-VCUP) It means that Z-Wing needs to sell 3,333 units to reach break even point. Sales Forecast In order to provide data for calculating break even analysis, we need to develop sales forecast first. Concerning the forecast, we assume the annual growth is 5% so in 2007, we assume that the company’s turnover is about $10,500,000 that increased 5% from previous year ($10,000,000).

Controls Implementation Plan Evaluation control becomes a significant factor that highlights the performance of an organization including Z-Wing. Table 3 shows proposed annual evaluation control plan for Z-Wing. Contingency Planning In case that the result does not reach the target, the company has contingency plan to respond the market reaction by cooperating with third party in order to enhance the revenue, increase market share, and satisfy the customer satisfaction index.


Aviation. (2006). Retrieved August 17, 2007 from http://www.tourismvictoria. com. au/strategicplan/plan2002_2006/10_aviation/section10_index. htm Aviation Research Group. (2007). Retrieved August 18, 2007 from http://www. aviationresearch. com/market_research. asp Aviation Marketing and Online Advertising. (2007). Retrieved August 18, 2007 from http://www. gofir. com/aviation_marketing/index. htm AVIATION MARKETING SUPERVISOR. (2007). Retrieved August 17, 2007 from http://www. ci. phoenix. az. us/JOBSPECS/25250. html Break Even Point and Break Even Analysis. (2006). Retrieved August 18, 2007

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Market reaction. (2018, Sep 01). Retrieved from

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