Economic Factors

The market for balloons is, like all other markets, affected by changes in the economy. The most important changes that take place are:

• Changes in interest rates
• Changes in exchange rates
• The rate of inflation
• The amount of unemployment
• Changes in the business cycle
• Changes in government taxation
• Changes in national (or international e.g. European Union) government regulations or policies.

Look in the appropriate section of the Paperless School in order to find out more about each of these changes, and how they might affect Cameron Balloons.

Other Factors

Balloon purchase is also very dependent on income levels. Because it is an expensive purchase it is more likely to be made when income levels are higher and growing - in a time of high economic growth.

The nature of the market also means that advertising and many more conventional marketing techniques tend to be ineffective. There are only a small number of companies producing balloons and any prospective purchaser will tend to be aware of all of them. The most powerful marketing tool therefore tends to be "word of mouth". To market balloons therefore requires a subtle mix of techniques - product orientation, flexibility, a high level of technical knowledge, a good network of international agents and an intimate knowledge of the market. The rapid growth of Cameron Balloons in recent years is a testimony to the fact that they have got this subtle mix down to a tee!

The export market is a vital market to Cameron Balloons. 75% of their output is exported and these are sold through agents and dealers. They have a worldwide network of these agents and much of the marketing department’s time is spent liasing and communicating with these overseas dealers.

Cameron Balloons have some 8 competitors worldwide, although 3 or 4 of these are key global ones. There also tends to be a local manufacturer in each country who will command some of the market. However, Cameron Balloons are around twice the size of their nearest competitor. The main competition is:

• Lindstrand (UK)
• Ultra Magic (Spain)
• Aerostar (US)
• Schroder (Germany)