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Economic Analysis of Target Markets

The document summarizes an economic analysis to identify target countries for a product with an average bill value of 5 Euros. It determines that people with monthly disposable incomes above 593 in a country are the target group. Based on this, and ruling out Serbia and Bulgaria, it identifies Germany, Hungary, Slovakia, Turkey, and Greece as potential target countries based on population size and average disposable income. It also notes that a CAGE framework analysis was conducted considering cultural, administrative, geographic, and economic factors to further evaluate these potential markets compared to Hungary.

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MuraliShiva
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64 views1 page

Economic Analysis of Target Markets

The document summarizes an economic analysis to identify target countries for a product with an average bill value of 5 Euros. It determines that people with monthly disposable incomes above 593 in a country are the target group. Based on this, and ruling out Serbia and Bulgaria, it identifies Germany, Hungary, Slovakia, Turkey, and Greece as potential target countries based on population size and average disposable income. It also notes that a CAGE framework analysis was conducted considering cultural, administrative, geographic, and economic factors to further evaluate these potential markets compared to Hungary.

Uploaded by

MuraliShiva
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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The derivation of the insights can be found in the Excel sheet attached.

1) Economic Analysis:

Case fact: Average bill value is 5 Euros ( 5.5 USD )

With the help of the median monthly disposable income and population, the income of the 50th
percentile of the population was found.

The cut-off value for disposable income was $593. (i.e) People with monthly disposable income of
>$593 is considered as the Target Group.

Serbia and Bulgaria are ruled out.

With the remaining countries, the average of the population was used as a cutoff.

Final list of countries based on the aforementioned factors:

Germany

Hungary

Slovakia

Turkey

Greece

2) Using CAGE Frame work:


 Cultural and Administration aspects of the CAGE framework, was taken into account through
Hoffstead’s Cultural dimensions were used to benchmark the potential markets with
Hungary.
 Geographic data was obtained from the Google Maps
 Economic data was obtained from the case

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