Zimbastori Vs Undebekistan

Question 1

1. The population of Zimbastori is an ageing one since 17% of the population is above the age of 65. There is a shortage of labour in the manufacturing industry as it is one of the most physically demanding industries to work in. This shortfall of labour can be handled by mechanizing the process of manufacturing. Zimbastori can hence specialize in the production of capital intensive goods and forego the manufacturing of labor-intensive goods.

In case of Undebekistan, 48% of the population is under 25 years of age. Thus, in the coming years, there is going to be a huge influx of labour in the market. This will lead to reduced labour costs and Undebekistan can invest in labor intensive manufacturing industries, i.e. industries produce goods that require more labour than capital investment.

1. The ageing population of Zimbastori will require products that cater to its burgeoning ageing population. Thus, it will have to tailor its marketing mix to cater to this section of the consumer by focusing on age-specific goods for the older generation.

Product: An ageing population creates a growing demand for certain age-specific products and services like healthcare, public transport, pharmaceutical products, private care services like daycare, retirement homes, tourism etcetera.

Price: An ageing population has a high purchasing power and a high propensity to consume owing to huge savings and additional pension. Thus, we can use market skimming and price age-specific products higher. However, if the competition is high, then a competitive pricing should be adopted.

Place: The highly disparate population suggests a higher demand for products in Zone 1 and Zone 2. Thus, placing a larger number of physical retail locations in these locations and moving manufacturing bases to sparsely populated zones like Zone 4 will ensure optimum usage of space and reduced logistical costs.

Promotion: Assuming that the ageing population is not exposed to the internet, promotional activities that involve radio, television, posters, point of purchase displays etcetera should be used.

The burgeoning young population in Undebekistan should be the target market for industries placed in the country. Thus, the marketing mix needs to be tailored to serve their needs.

Product: Young people have an affinity towards lifestyle goods and products, fast mover consumer goods and are highly brand-conscious. The demand for educational services is also bound to grow exponentially.

Price: The youth is an economically dependent segment with a low purchasing power. Thus, products that cater to them should be priced lower and market penetration technique should be used.

Place: Due to the fact that the population is fairly uniformly distributed, the proportion of manufacturing bases and retail locations is quite uniform across all four zones in Undebekistan. More e-commerce platforms than physical retail stores are bound to flourish in Undebekistan given the high percentage of young population.

Promotion: A younger population is more exposed to virtual media and hence internet-based promotional techniques are likely to prove more successful and enjoy increased visibility in Undebekistan. Branding should be done as youth is brand-conscious.

1. For Zimbastori, manufacturing units should be located in the sparsely populated Zones 3 and 4 and concentrate physical retail stores in Zones 1 and 2. Thus, using a supply chain that flows from manufacturer to a central warehouse before moving to the wholesaler and then goes to the retailer will be a smart move.

In case of Undebekistan, where manufacturing hubs and consumers are close by, supply chains are shorter and logistical cost is lesser as goods move from manufacturers to wholesalers to retailers. Also, e-commerce model adopts shorter supply chains.

1. In Zimbastori, Zones 3 and 4 are prime locations for telecommunication and heavy industries like steel, which are highly capital intensive and possess huge global demand. These industries are highly automated and do not require a large workforce and can be concentrated in sparsely populated zones. Healthcare should be focused in Zones 1 and 2 where the users of these services are concentrated.

For Undebekistan, all zones are lucrative sites for investment in the education industry, consumer goods and e-commerce.

1. For Zimbastori, future growth potential for heavy industries like steel and telecom is tremendous as 52 percent of the population is currently earning and 17% are above the age of 65. This means that the country currently has a high purchasing power and can easily fund such investment heavy industries which has tremendous demand in the global markets. The health care sector is also set to grow in leaps and bounds as the ageing population seeks more of its services with time.

In the case of Undebekistan, education sector is set to achieve monumental growth rates as a huge chunk of the population is below the age of 25. A young population also demands consumer goods and lifestyle products and these industries are sure to prosper. E-commerce is likely to boom with an increasingly young population as exposure to ecommerce increases with increasing education levels of the young generation.

1. Zimbastori will support the growth of hospitals more strongly than that of schools. The hospitals should be concentrated more in Zones 1 and 2 since most of the end consumers are located there. Zones 1 and 2 should also house more schools.

On the other hand, Undebekistan will prosper with a greater proportion of schools than hospitals to cater to the needs of its young populations. Schools and hospitals should be scattered uniformly across all four of its zones owing to the uniformly distributed population in the country.