The second kind of promotional activities will include the BTL actions such as fashion shows close to POS and in the crowded places. They will look like random ones to create a feeling among the target audience that they can from day to day participate in such a show after buying WF products.
By doing this we create a promotion strategy that arises interest among the target audience and fits the budget constraints.
To make the right decision about the entry mode we considered the matrix (schema) of “Chosing mode of operation” given by our instructor during the lectures:
Since we are planning the launch of our product in Germany, German market is a new one for “Walenki Filz” company. Considering that we have already talked about the main competitor who is operating in German market, we derive that the core product is not entirely new. However Walenki have a lot of significant differences form competitor’s product, which means that such product as Walenki does not exist in the market. That is why we define Walenki as similar product to those existing on the market.
After this reasoning we find the new market/ similar product cell (quadrant) in the matrix which tells us that Foreign Direct Investment or Mergers and Acquisitions are preferable.
Since Walenki Filz Company is still very small the acquisition is impossible and FDI sounds as very risky for us. However, Merging seems as a good solution. We decided to find a clothing company (small chain is preferable) with:
After choosing a desirable company we want to negotiate with it about the probability of selling our product under their roof with some extent of merging to companies.
If everything goes successful this entry mode will give us an opportunity to reduce risk and initial costs on the first stages of international marketing activities.
To conclude we would like to say that we have answered all the questions we had stated in the introduction. We covered them sequentially. First, we defined the product and its main features. Second, we listed domestic and host market trends explaining how they can influence the demand for our product. After this we used Marketing Mix tool to understand the nature of the product deeper. Then we developed GRID-analysis and thoughtfully explained main crossing points which have significant connection. Finally, we described Marketing strategy and Entry Mode decision sequentially.
By answering these questions we achieved the main goal of the paper stated in the introduction: to describe the strategy of taking Walenki to German market. We hope that our strategy would be successful if applied in real business conditions.
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