We have concluded that Exxcel should conduct additional marketing research before authorizing the funds required to launch the new product because of the following reasons
1) Projected 25% market share is not near the desired 30% market share that Exxel wants to achieve. Thus knowledge of the market is the key to achieve this.
2) The housing market has seen a slump. This product is always installed during the construction phase with no plans for replacement. So the initial marketing strategy and tapping the right distribution channels is going to be a major factor to achieving this goal.
3) It needs to evaluate the real estate market before launching the product to mitigate potential risks and identify key insights.
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Some additional points that we noted during our discussion were:
1] Additional market research will help Exxcel review if the target market share of 30% is an attainable target.
2] We also discussed that market timing for the product is important and hence additional market research is critical.
To summarize after considering arguments for as well as against conducting additional market research our team reached to the conclusion that it is 80% likely for our team to conduct additional research before authorizing funds required to launch the new product.
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