The natural process of removing fine sediment from the beach or seabed top layer, leaving coarse material behind, thus leading to a more erosion-resistant residual top layer.intended to prevent damage of properties situated on the coast Manmade structures such as seawalls, revetments, bulkheads, geotubes, etc.The deep water angle of incidence is often denoted \alpha_0. See: Shallow-water wave theory, Wave transformation. When waves enter shallow water, the wave propagation direction tends to become perpendicular to the depth contours, by refraction. The angle between the wave propagation direction and the normal to the coastline or the angle between the wave front and the coastline (often denoted by the symbol \alpha or \theta). In the case of a dune coast the front dune is part of the active coastal zone. It extends from the closure depth up to a fixed land boundary (rock, cliff, seawall, sea dike). The active coastal zone (also called active coastal profile) is the cross-shore coastal zone that is highly dynamic, with up and down redistribution of sand by the action of tides, waves and wind. Growth (vertical and/or horizontal) of morphological structures ( beach, bar, dune, sand bank, tidal flat, salt marsh, tidal channel, etc.) by sedimentation. Definition of coastal sub-zones, adapted from the Shore Protection Manual, 1984 On the other hand, a new and unknown product and company will need to pay more margins to the retailers to entice them to stock the product in the first place.Fig. A well-established FMCG company like Hindustan Lever can give less margins to the retailers because the volume of sales of its wide range of products is very high. Strength in the market place also determines the markup and margins allowed. Companies work backwards and after accounting for production and marketing costs, arrive at values for the players in the FMCG industry- the transport, distributors and retailers. The price that the market can bear usually determines the selling price, or in India, the Maximum Retail Price (MRP). So overall, the amount of money made evens out. Low margins means a retailer makes less money on every unit, but the number of units sold is very high in FMCG. In FMCG, typically, the MRP is low and the retailer is allowed a lower markup, from anywhere between 5 and 8%. Higher the markup, greater the cost to the consumer, and greater the money the retailer makes. Markup refers to the cost margins to the price.ĭescription: In the example, what is the significance of mark up? The amount of markup allowed to the retailer determines the money he makes from selling every unit of the product. In this case, the mark up on the cost price is (2/8= 25%) and on the MRP is 2/10 = 20%. The margin of Rs 2 between the cost price and MRP is the mark-up. The retailer adds Rs 2 as his value and sells the soap to the final consumer at Rs 10. The mark-up added to the cost price usually equals retail price.įor example, a FMCG company sells a bar of soap to the retailer at Rs 10. To become a market challenger is a costly process and firms should be well aware of the same.ĭefinition: Mark up refers to the value that a player adds to the cost price of a product. Whatever strategy a firm adopts to gain market share or tries to bring down the market leader, requires a huge sum of money. The best strategy to gain market share is to introduce differentiated products which will help in creating their own brand name and push that product aggressively into the market with different distribution channels. Even companies which are at 2nd or the 4th position may turn out to be competiton as they may be eating into the market share.Ī market challenger can deploy a full-frontal attack by introducing products similar to that of the market leader with similar quality, competitive pricing, aggressive advertisement and distribution process. When a brand enters a market, it is not necessary that the market leader is its competitor.
They can challenge the market leader or other competitors by launching these strategies. Companies with low market share usually try and adopt this strategy to increase their market share. The basic aim of the market challenger is to expand its market share and become the industry leader by introducing a new variety of products or by improving customer service etc. A market challenger is a firm or a company which is usually at the No.2 or No.3 position.ĭescription: A market challenger is a firm which is just below the market leader with a good presence. Definition: A market challenger is a company which tries to expand its market share by aggressively flooding the market with its products at competitive prices.
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