Peek No : 11
September 24, 2003

Week's Peek | Wish I were | BrandFact | This Week that Age | Make us Work 4 you | Insight

Hello!

The seasons are changing. And so is our economy. The Chinese say, "This too shall change". The challenge, however, is to stay unperturbed and meet the changing times. From philosophy to business. You would be amazed to know the agility with which our subscribers have been reacting to each issue of Marketspeek. We drew up a plan to meet your swiftness. The net effect: A peek on cars has hit the stands.

But as always, our coverage of the economy follows our automotive journey.

Weekly Natural Gas Storage

Storage of natural gas rose by 102 billion cubic feet in the week ending September 1. This fares at a level higher than market expectations. The market had anticipated increase to the tune of 86 to 105 billion cubic feet.

Philadelphia Fed Survey

Business Outlook Survey indicates an increase in manufacturing activity. The index for the month of September is 14.6. This has fallen short of the expected level of 15.0.

The index of the Conference Board increased by 0.4% in August. This rise matched the
anticipations of the market. This is the fifth straight increase of the index.

Now it is time we got into the sector of the week.

Happy Peeking!

Editorial Team
Marketspeek
Executive Editor - Dr. Sharon Livingston
Editor - Vijay

Week's Peek

Car Industry – America Automotive manufacturers in America rely entirely on dealers to sell their products. The sale value booked by dealers in America has crossed the $800 billion mark. This indicates the nascent development of alternate distribution channels for selling automotives in America. The manufacturers also depend on the dealers to provide after-sales services and parts to customers. California boasts of the largest number of dealers among all the states in the US. This state houses more than 1,625 dealers on the whole.

Vital Statistics - Car Nameplates of Japanese brands possess a market share of 28.5%. This share is built through occupying almost 36% of the car market and around 22% of the truck business. The market share of Japanese companies has grown by 5% on a year-over-year basis. On the other hand, the share of Korean vehicles has dropped by almost 1% to occupy close to 4%. This share is built by occupying 5.4% of the car and 2.5% of the truck businesses. By 2008, foreign-owned capacity is forecast to be 5.4 million. The demand for light trucks has grown from a third of the total passenger-vehicle market to about half. As a result, car plants in Detroit are converted to make Utility Vehicles and minivans. The total capacity of this category of vehicles is around 6 million. Since 2000, the domestic market share of DaimlerChrysler, Ford, and General Motors has dropped close to 9 points. This loss in market share transpires to 1.6 million vehicles approximately.

Analysis - Car

• Sales have been bullish for categories like crossover-utility and sport-utility vehicles in the recent past. The turnover of pickup trucks and vans has been encouraging. These preferences are not overnight phenomena. These only indicate the need for automakers to keep a continuous tab on the attitudes of customers that shape their preferences.
  
• Increase in business spending, quantum leap in the level of incentives and tax breaks are enabling sales of cars and trucks. It is time for the industry to introspect and focus on core aspects of auto purchases, rather than depend on macro-economic carrots.
  
• The number of buyers using the Internet to shop for used vehicles is on the rise. Acquisition and development of such innovative selling networks can bring about changes in the distribution landscape of automotives in the long run.
  

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Wish I were

What can you do with a barbecue tool that flips burgers, pierces sausages, slices meat, opens bottles, and checks meats to see if they're cooked? What else besides these obvious functions, that is!

Well, a suburban housewife in River Forest, Illinois has provided an unexpected answer to this question. Doris Christopher used innovative kitchen tools such as these to lay the foundations of a thriving business. One that is generating kichenware sales worth $500 million for her company - The Pampered Chef, Ltd. With 15,000 in-home demonstrations every week, her sales force of 42,000 kitchen consultants in 50 states lives out the company's motto: "The Kitchen Store That Comes to Your Door."

And it all started out when one mother (Doris Christopher) confronted the familiar women's dilemma of career versus family, with a determination to give family top priority. Resolved to remain a stay-at-home mother, she was sending her two little daughters off to school, which freed her to look for some way to use her professional training - in her case as a home economist.

A classic example of a made-in-the-U.S. entrepreneurial triumph with all the trimmings, The Pampered Chef is rooted not in technology, but in tradition. And in a deeply-felt need for tools that would make it easy for women to do what they were doing every day - cooking. Her customers were captivated by the "try-before-you-buy" experience. And the fact that they could learn cooking tips and techniques during the demonstration, regardless of whether or not they make a purchase.

"One of the key elements in success is having a passion for what you do. My love for my work fuels the resilience to overcome obstacles, supports my dedication to remain true to my original vision and maintains my determination to succeed", says Doris.

At first, she started off with 25 to 30 products and kept adding others that she found were intriguing and useful. As the company developed, a number of factors powered its success, starting with Doris Christopher's expertise and experience. As a home economist, she knew what a kitchen needs. As a good cook herself, she knew what it takes to make a good meal. And her husband Jay Christopher provided much-needed marketing and management expertise. Today, as the executive vice president of corporate development, Jay acts as a mentor and consultant for the company.

All told, an extraordinary and inspiring story. One that started off with just $3,000 borrowed on a life insurance policy.

Doris has never had to look back - or borrow cash again.

For further reading:

http://www.womenof.com/Articles/cb051799.asp

http://www.fortune.com/fortune/smallbusiness/articles/0,15114,411069,00.html

http://www.markusallen.org/messages/1052932205.html

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BrandFact

Barbie(R) doll has had more than a billion pair of shoes and over one hundred new additions to her wardrobe annually.

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This Week that Age

19th September, 1783 -At Versailles, France, Joseph-Michel and Jaques-Etienne Montgolfier demonstrated a hot-air balloon for King Louis XVI. The balloon carried a sheep, a rooster, and a duck as passengers.

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Make us Work 4 you

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Insight

A market is never saturated with a good product, but it is very quickly saturated with a bad one.

- -Henry Ford

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The information presented in this Newsletter is not based on any primary research undertaken exclusively for this purpose; it is based on secondary sources of information, as current as the researchers were able to collect from the sources. However, should any specific client need up-to-date information on this (or any other) segment, they may commission Executive Solutions to do such research.