Res341_Market_Research

To understand the future demand of the use of hand sanitizer globally key holders have to truly understand the need as well as the usefulness that hand sanitizer can provide. In order to get a good comprehensive understanding the optimal approach is broken down by key countries, which are more likely to use the products due to their current efficiencies in standards. Globally the sales for hand sanitizer have increased as more people are becoming aware of its benefits. Projected growth in sales for the United States should surpass US$402 million by 2015 (Global Industry Analysts 2011). According to Forrest (2010) the higher the per capita the market for the countries reflects the best standards if they are interested in additional spending for items such as hand sanitizer. Gastrointestinal illnesses were reduced in United States households by 60%. Gastrointestinal illnesses are common in developing countries (Global Industry Analysts 2011). Most countries that are economically challenged suffer the most from gastrointestinal illnesses. During a field study in Dar es Salaam, Tanzania a study was conducted to see the effectiveness of hand sanitizer. In Dar es Salaam more than three billion persons do not have household level access to piped water. When he hand sanitizer was used in field conditions my mother’s there was a 66% reduction in Escherichia coli and a 64% reduction in fecal streptococci per hand respectively. Hand washing only had a 50% and 25% reduction per hand respectively (Pickering, J., Boehm, B., Mwanjali M., et al. 2010). Although the hand sanitizer market is crowded in the United States there is a larger market outside the United States. Companies like Johnson and Johnson are starting to see the need to look outside the box into less desirable markets such as Tanzania. Empyrean Biosciences Inc., headquarters to Cleveland, Ohio understands the need to move into other markets. Their goal is to gain $100 million in market share simply by moving into other markets. Currently the hand sanitizer market is estimated as a $1 billion market (Santiago R., 2000). In order to obtain good reliable data for market research a multi-stage approach was conducted a latent demand approach has to be used. This approach relies on the use of certain basic economic assumptions. Latent demand functions relate the income of a country, city, state, household, or individual to realized consumption (Parker, P. M. 2000). Therefore the market potential for hand sanitizers in different countries can be assessed properly to gage the overall market share. Below is a chart showing projected market share in sales in Malaysia. MALAYSIA Hand Sanitizers (US$ Million): Malaysia 2004 - 2014 Year Malaysia % of Region % of Globe _________________________________________________________________________________________________ 2004 4.56 1.59% 0.54% 2005 4.75 1.58% 0.55% 2006 4.94 1.57% 0.55% 2007 5.14 1.56% 0.55% 2008 5.35 1.55% 0.56% 2009 5.57 1.54% 0.56% 2010 5.79 1.53% 0.56% 2011 6.02 1.52% 0.56% 2012 6.25 1.51% 0.57% 2013 6.50 1.49% 0.57% 2014 6.76 1.48% 0.57% _________________________________________________________________________________________________ Source: Philip M. Parker, INSEAD, copyright 2008, www.icongrouponline.com . Reference Forrest, M. B. (2010). Potential Toxcity of Hands Sanitizers. Texas Public Health Journal, 62(3), 27 Global Industry Analysts (2011). Hand Sanitizers: A Us Market Report. Information was retrieved on April 7, 2012 from website http://www.companiesandmarkets.com/Market/Consumer-Goods/Market-Research/Hand-Sanitizers-A-US-Market-Report/RPT797341 Pickering, J., Boehm, B., Mwanjali M., et al. (2010). Efficacy of Waterless Hand Hygiene Compared with Handwashing with Soap: A Field Study in Dar es Salaam, Tanzania. AMERICAN JOURNAL OF TROPICAL MEDICINE AND HYGIENE  Volume: 82   Issue: 2   Pages: 270-278 Parker P., (2000). The 2009-2014 Outlook for Hand Sanitizers in Asia & Oceana. Regional Outlook Reports. American Medical Association January 5, 2010;:N.PAG. Santiago, R. (2000). Santiago R. Hand sanitizer marketing company raises $3M. Crain's Cleveland Business [serial online]. March 6, 2000;21(10):5. Available from: Regional Business News, Ipswich, MA.