Market Seasonality Insights

December 5, 2008 at 10:00 pm Leave a comment

Although it is more fun putting your marketing plans into action, it is important to conduct some analysis before you start spending your time or money. In a previous post I called this the Treasure Hunt (posted under Marketing Plan) as you are looking for information to help your business become more successful.

One of the areas to analyse is market seasonality. If a product or service is seasonal it means the majority of sales occur at one or a few times of the year. For example, the sunscreen market is affected by the weather and the seasons. The majority of sales occur during summer and/or when the weather is dry and sunny.

The demand for a product or service may depend on:

  • Occasions – Christmas, Easter, Australia Day, Mothers Day, Valentine’s Day, School holidays Weather – rain, sunshine, snow,
  • Days – a particular day or month that has a positive or negative impact on sales eg. Saturday extended trading
  • Seasons – autumn, winter, spring and summer
  • Business conditions – end of financial year, end of calendar year, tax returns 

Why Is It Important?

  • Take advantage of opportunities within your market by concentrating your marketing and sales tactics at times when they will have the greatest impact
  • Look for opportunities to lessen the impact of seasonality by spreading your product or service sales throughout the year
  • Enables you to better forecast your production, inventory and employee needs and therefore manage your cash flow more effectively

 Tips

  • Look at your customers’ needs and how they depend on certain factors
  • Analyse your own sales and determine which months or days of the week you experience sales peaks
  • Determine if the seasonality for your market is long term or due to an unusual occurrence eg. special event
  • Seasonality may also be affected by geography or location. For example, if you sell ice creams your sales will be less seasonal in cities with warmer weather
  • Determine if you and/or your competitors may be causing the seasonality due to history eg. promoting and selling premium chocolates only on Valentine’s Day

 What are your tips for analysing a seasonal market?

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Entry filed under: Market Analysis. Tags: , , .

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Susan

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