Do You Agree with Shearing’s Decision to Move Into the Mass Market for Holiday Services ? Essay

437 WordsNov 18, 20142 Pages
A mass market is a unsegmented market where you are aiming a product at the whole market. Yes I do agree with Shearings decision to move into the mass market for holiday services. The first reason why I agree with their decision is that quite simply they will be targeting a much larger market, this means they will be appealing to more potential customers although this could cause their previous market of over 55 to not like there service, but it will appeal to the majority of customers. This should cause their sales to increase and that will result in increased profit, overall this will help achieve their expansion plans. Another reason why I agree with their decision to move is that at the moment they are not getting as much profit as they forecasted so clearly operating in a Niche market is not working so it makes sense to move into a mass market and increase their sales. It could be argued that it is not a good idea for Shearings to try and appeal to a mass market and move out of the niche market. This is because they were getting a steady profit operating in a niche market so it is a bit of risk moving into a market they are unfamiliar with which could be a huge failure because they are spending lots of money trying to make it work like the £2 million on advertising and the further £35 million they spent on expanding to accommodate the new customers and if it doesn’t work they are left with a huge cash outflow and no where near enough inflows to cover it. Another reason why I would disagree with their decison is that in mass market are huge competitor like Thomas Cook, which could be more appealing to customers, as it is a relatively known name or because they may be able to offer lower prices, this would lead ton o increase in income and would lead to several problems. Overall I think the decison depends on whether the move is affordable as at
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