El concepto tradicional de marca

From the quantitative and qualitative analysis in Chapter IV, it was defined which would be the target market where Bigmond would focus to begin its strategy of entering the Mexican market. It was concluded that Bigmond should segment its market to industries: Banking &

Financial Services, Construction, Engineering & Manufacturing, Marketing and digital, and IT.

Considering a cover of 20% in that segment of companies, the potential market is comprised by 122 companies in the Center region of Mexico. This companies will be monitored and see it as a target to create good relationships for more demand in the future.

In another hand, an executive sales interview was conducted of some corporate accounts of the same sector, they provided an approximate ratio of selection processes that are carried out in the Central Mexico region. The structure senior / middle-management allows to infer the income structure of the Executive Search sector in each firm, in Table 36 the comparison of ratios is shown of the firms interviewed. The historical demand allows to have information during a specific period, in this case 2012 to 2017, in order to have data to project the values and

make predictions. For the calculation of the historical demand, the following sources are

considered: (a) Rate senior / middle-management of a sample of Mexican competitors showed in the Table 36. (b) Remuneration’s study by managerial level and industry of Michael Page, this study finds the maximum and minimum salaries that are in the market depending on each

position and the economic sector. Given that you have the economic sectors of the target market, you can consider more exact salaries of each sector (See table 37). (c) Growth annual GDP by Industry in the period 2012 to 2015, it is showed in the Table 38 (d) Real demand 2016 and 2017 of jobs in the OCC World in Mexico by industry presented in the Table 39 (e) Contribution by industry to the Annual GDP of Mexico, it is showed in the Table 40. The final historical demand was calculated with the use of all the mentioned sources.

Table 35

Rate Senior / Middle-Management of a Sample of Mexican Competitors

Senior Middle Management

Competitor Services Fee Process per % Total Process % Total

Admin.

Note. Data from personal communication with sales executives of each firm.

year process Service Fee per year process

Table 36

Remuneration’s Study by Managerial Level and Industry

C-Suite Senior Middle Management

Industries M L M L M L

Note. Data from “Estudio de Remuneración [Remuneration Study],” by Michael Page, 2018. Retrieved from https://www.michaelpage.com.mx/contenidos/investigaciones-y-encuestas/estudio-de-remuneraci%C3%B3n-2017

Table 37

Growth Annual GDP by Industry in the Period 2012 to 2015

Industries GDP Growth

Engineering & Manufacturing 4.10% 1.20% 4.20% 2.60% 1.30%

Marketing & Digital 16.30% 5% 0.20% 7.80% 10.10%

Property & Construction 2.50% -4.80% 2% 2.50% 1.80%

Information Technology 1.10% 1.20% 1.70% 4.20% 7%

Note. Data from “Pacific Alliance business and investment guide 2017 / 2018,” by EY, 2017

(http://www.rree.gob.pe/Documents/2017/Pacific_Alliance_Business _and_Investment _Guide_2017-2018.pdf).

100 180 115 230 65 90 80 130 65 90 80 120 100 140 130 200 80 110 110 140 80 110 100 130 80 140 150 250 80 120 120 200 65 105 110 145 135 160 135 160 70 90 90 110 60 65 65 70

99 156 126 208 75 102 98 140 65 86 83 108

Table 38

Real Demand 2016 and 2017 of Jobs in the OCC World in Mexico by Industry

Industries OCC Mundial

2016 OCC Mundial

2017

Banking & Financial Services 19% 19%

Engineering & Manufacturing 22% 24%

Marketing & Digital 3% 3%

Property & Construction 3% 3%

Information Technology 13% 15%

Note. Data are from “Pacific Alliance business and investment guide 2017 / 2018,” by EY, 2017

(http://www.rree.gob.pe/Documents/2017/Pacific_Alliance_Business _and_Investment _Guide_2017-2018.pdf).

Table 39

Contribution by Industry to the Annual GDP of Mexico

Industries Contribution to the Mexican GDP (%

GDP)

Banking & Financial Services 5%

Engineering & Manufacturing 17%

Marketing & Digital 4%

Property & Construction 7%

Information Technology 5%

38.0%

Note. Data are from “Pacific Alliance business and investment guide 2017 / 2018,” by EY, 2017

(http://www.rree.gob.pe/Documents/2017/Pacific_Alliance_Business _and_Investment _Guide_2017-2018.pdf).

Calculation of the percentage growth of demand by sector. Sources (c) and (d) were used.

Because there is only information on the actual demand for work in 2016 and 2017, the demand must be inferred in the period 2012 to 2015. For this, 2016 is the point to start, since it is the only data in common between the two sources. GDP growth was assumed as a growth trend in

demand, for example, in Banking & Financial Services it was considered in 2016 that the real demand of 19% had grown at the same rate of GDP by 7.70%, therefore the Real demand for

2015 is the result of [19% / (7.7% + 1)] which gives a value of 18%. This procedure is applied to all the previous years to obtain the real variation of the demand in the period 2012 to 2017, being the year 2016 and 2017 real values (See Table 41).

Table 40

Percentage Variation of Real Demand 2012 to 2017 by Industry

Industries 2012 2013 2014 2015 OCC

Mundial 2016

Mundial OCC 2017 Banking & Financial

Services 15% 17% 17% 18% 19% 19%

Engineering &

Manufacturing 20% 20% 21% 22% 22% 24%

Marketing & Digital 11% 11% 11% 12% 13% 13%

Property & Construction 3% 13% 13% 13% 13% 13%

Information Technology 11% 11% 12% 12% 13% 15%

Once the trend of demand in the period 2012 to 2017 has been calculated as is shown in Table 41, the total average trend of the target market must be calculated. To do this, the source (c) ) is used to calculate an annual weighted average but this is based on the contribution of each industry to GDP. It is assumed that the greater contribution to GDP represents the

industry, the greater will be its influence on the trend of demand in the target market. The final variation of the target market demand is shown in the Table 41.

Table 41

Annual Variation of the Target Market Demand

Industries 2012 2013 2014 2015 OCC

Once calculated the trend of the real demand of the target market in the period 2012 to 2017. The demand must be calculated in units. The units will be represented by the number of Executive Search selection processes in both the senior and middle-management levels. For this, the source (a) that represents the ratio of selection processes carried out by the competing

companies is used and an average of the market is selected. This average obtained is from the year 2017, however, having the percentage growth in demand can be inferred the number of processes of previous years. It should be noted that these processes belong to the central region of Mexico but include all industries and the trend obtained is only for the 5 industries of the target market. So, it is known that the 5 industries of the target market together contribute 38%

of the GDP. So, the number of processes in the total market should be adjusted only to the target market, then it is assumed that 38% of the total selection processes correspond to the target market.

With this calculation, we obtain the historical demand for Executive Search selection processes at senior and middle-management levels during the period 2012 to 2017 of the target market, see Table 42.

Table 42

Demand of Selection Process from Executive Search in the Target Market

Executive Search Process 2012 2013 2014 2015 2016 2017 Total

Senior Management 45 48 51 54 58 62

Middle-management 58 61 65 69 74 79

Target Market

Senior Level 37 39 42 44 47 52

Middle-management 49 52 55 59 63 67

Note. Values are expressed in units of selection processes.