Marketing an unique product in international market

EXECUTIVE SUMMARY

Double Shoes are the shoes which are making with sole, foam, rubber, zipper, color, synthetic etc. for getting two facilities; one is for casual use and another for sandal, from one pair of shoe.  To build up the strategic planning, we first analyze the market condition as a result we will identify that who is our customer after all. Than the competitor and their strength and our strength or weakness and how we recover them than we go to the main part of the strategic planning development process. We divide the total process into some major activity of the strategic planning task and these are positioning strategy, pricing strategy, branding strategy, corporate identity build up strategy, retention and business development strategy etc.

INTRODUCTION

Planning is the ongoing management process of choosing the objectives to be achieved during a certain period, setting up a plan of action, and maintaining continuous surveillance of results so as to make regular evaluations and, if necessary, to modify the objectives and plan of action. Also described were the requisites for successful planning, the time frame for initiating planning activities, and various philosophies of planning (i.e., satisfying, optimizing, and advertising). Strategy, the course of action selected from possible alternatives as the optimum way to attain objectives, should be consistent with current policies and viewed in light of anticipated competitive actions.

Double shoes are the most flexible sandal & comfortable casual shoes at a time on the market and closest to the common people recommendations. These shoes are comfortable & durable because of its making with quality based raw materials, the individuals will able to be worn for long length of time. This is affordable to our male young generation. We fixed the price of our product at a minimum range so that individual can afford to buy this. Our two-in-one feature is fashionable and we hope that this can take position easily in our male young generation. There are different array of colors, styles and appearance. So, there is bound to be something that will feel good and look good at the same time. Double shoes mill directors analyze the situation using the 4C framework. 4C stands for customer, competitors, company and context.

When we think about any strategic planning we have to decide about the three aspects in this case of strategic planning these are market on which planning in executed, on which way we compete and when we execute.

  • Market (where to compete)—Double shoe’s market is the major metropolitan cities because the consumption pattern is more aggressive in the metro area than the rural.
  • Means (how to compete) — this market is already an established market and we compete though our high quality product with superior value.
  • Timing (when to compete) — generally strategic planning is prepared for long time purpose and cover also short range objective.

SITUATION ANALYSIS

Market Profile
Highly luxurious conscious people are the main target of the market. The market characteristics are specially categorized by below category:

  • Luxurious Conscious Customers
  • Young people
  • Students
  • People who want to stay tiredness free

Market segment
1. Geographical:

  • Urban (Metro cities) areas of USA, Need satisfaction for feeling cool
  • Rural (Small towns & villages) Need Satisfaction
  1. Demographic:
  • Income (high, medium)
  • Age (20 to 35- especially those who are stylish and updated)
  • Education (Double shoe is preferred by educated people)
  • Occupation ( job holders, business persons, and students)

In order to determining overall marketing strategy, the company is ready to begin planning the details of the marketing mix, one of the major concepts in modern marketing. The marketing mix strategic planning is the set of tactical marketing tools that the firm blends to produce the response it wants in the target market. The marketing mix consists of everything the firm can do to influence the demand for its product. The many possibilities can be collected into four groups of variables—the four Ps.

Product: The Double Shoe is marketed in two special categories that are regular and premium. Regular are the general customers and others is for the heart dieses patient as a result this two category is for two different type of customer. The major concentration is provided on the  regular because customer of this market is high .It is considered that this two product can differentiate the Double Brand from the competitor because in the Rice bran oil market it is possible to choice  two different type in a single brand at same price . The distinctive feature is added in the Double sole is the element that protect heart from block and double regular is adding nutritious element

Price:  The Price determined by the Double is must be competitive in nature because it is a modified existed product and price in the Bangladesh sole and zipper market is important element. But price is reasonable and after few year of the operation of the market organization increase the price of the product because it motivate the organization to invent and use new technology and support organization to provide customer premium products

Place: The main target of the marketers is to make the product available to target consumers. Because we considered that urban market is the main attraction of our potential market so first few years we specially focus on the metropolitan market. In the distribution channel, we maintain the two different line one is own product suppler and other is the regional distributor. They both have the target and both of them serve the companies propose and how coordinate with them is determined by the top level management.

 Promotion: under the promotional activity we followed the several promotional tools. They are

  1. Advertising
  2. Personal selling
  3. Public relations

Advertising is showed in the Television, Newspaper and online media. The brand ambassador is the famous cardiologists of Bangladesh. We also have a personal selling line and publications are maintained on providing cardiac tips and discussion on the talk shows and newspaper.

MARKETING OPPORTUNITY AND ISSUES

The SWOT for the Double is describe below

Strengths

  • Health consciousness is the most considering factor nowadays in choosing an shoe brand
  • Most of the customer are try to using various type of the shoes , someone try boot shoes , Convers shoes , Sandal etc. but double is the most healthy and cost saving for the Bangladeshi customers.
  • Availability of raw material is the fact for this.

Weakness

  • Need more internal and external supporter.
  • Lack of financial support is considered as the critical weakness because interest rate is too high in Bangladesh and personal financial support is also limited
  • Facing strong competition in the market because BATA is the market leader and it is very tuff to convince customer to buy rice bran oil because high price

Opportunities

  • Changing consumer preferences.
  • Double shoe is designed to addressing the need and demand of target market as result profitability of the market is very high
  • Increasing rate of purchasing power is the one another consideration
  • Potential of relatively low operating costs and enjoy economies of scale
  • Government attention to increase the market of double is the another positive sign
  • New technology invented to improve the facility

Threads

  • Entrants the new competitor.
  • Continuous price reanalysis due to strong competition.
  • Unfavorable government rules and regulation regarding business.

INTERNATIONAL MARKETING PROCEDURE

Planning for International Market

Some planning steps like corporate planning, strategic planning and tactical planning are taken by us to enter the international market.

  1. Company Objective and Resources: Defining objectives clarifies the orientation of the domestic and international divisions, permitting consistent policies. The lack of well-defined objectives has found “double shoes” rushing into promising foreign markets only to find activities that conflict with or detract from the double’ primary objectives. Foreign market opportunities do not always parallel corporate objectives; it may be necessary to change the objectives, alter the scale of international plans, or abandon them. One market may offer immediate profit but have a poor long-run outlook, while another may offer the reverse. Only when corporate objectives are clear can such differences be reconciled effectively.
  2. International Commitment: The planning approach taken by an international firm affects the degree of internationalization to which management is philosophically committed. Such commitment affects the specific international strategies and decisions of the firm. After double shoes objectives have been identified, management needs to determine whether it is prepared to make the level of commitment required for successful international operations—commitment in terms of dollars to be invested, personnel for managing the international organization, and determination to stay in the market long enough to realize a return on these investments. A company uncertain of its prospects is likely to enter a market timidly, using inefficient marketing methods, channels, or organizational forms, thus setting the stage for the failure of a venture that might have succeeded with full commitment and support by the parent company. Any long-term marketing plan should be fully supported by senior management and have realistic time goals set for sales growth. Occasionally, casual market entry is successful, but more often than not, market success requires long-term commitment.

Stages of International Market Development

Marketing is the process of building understanding and communication between the supplier and the customer. Sales takes this process one step further, and can be characterized as the process of fulfilling the needs of customers with a satisfactory product or service, consummated by the exchange of money. One hasn’t truly entered a market until a customer has paid money for the product or service being offered. Commercial transactions are the ultimate goal of international trade and, indeed, trade of any kind. The pattern of international market development often follows a series of stages. That is why we follow this stage to enter the market as footwear product.

  1. Domestic-market establishment: The domestic market is often an appropriate place to test products and fine-tune performance before tackling the complexities of international trade. It can also give a good indication of performance. However, in some instances, this stage of the export process doesn’t serve any purpose at all. For Double Shoe Company, that has developed a product specifically for a foreign market. Because international-market development requires resources of time and money on the part of the exporter, it’s important to ensure that a strong foundation has been built in the domestic market upon which to base future export-market-expansion activities, so that international activities do not compromise double shoe’s core business.
  2. Export research and planning: When double shoes begin trading abroad, we often target a country similar to their own in language, financial structures, legal and economic systems or culture. For example, Canadians entering the international marketplace usually address the U.S. market first. Before venturing into an unfamiliar market, we should prepare ourselves properly. By analyzing how successful the proposed product or service may be in a potential market, the exporter can narrow the target markets down to three or four. “A well-researched marketing plan can give the potential exporter the confidence to commit to exporting”. Such concentrated effort is preferable to the common and costly mistake of ‘chasing orders around the world’. Another advantage to undertaking appropriate international-market-research and planning activities is that by creating a written document, potential problems and weaknesses can be identified more easily. This enables exporters to foresee potential challenges prior to making the investment of time and money that will be required for successful export-market development.
  3. Initial export sales: When implementing an export plan, double shoe’s advisable to begin modestly by testing the market. A graduated strategy enables the novice exporter to acquire practical experience in a market without incurring unnecessary or unmanageable risk. “Developing markets in phases enables the exporter to monitor their progress and make any necessary changes as they progress along the path to export success”. During this stage, our exporting team should use initial shipments to become familiar with the mechanics of exporting (documentation, distribution channels, transportation and collections), to get to know the customer target group, to determine what product modifications may be necessary and to learn about regulations that might affect the business. This is also the stage at which to revise the initial plan.
  4. Expansion of international sales: If initial sales have been good, planning for larger orders and expanded activity should follow. This stage is usually accompanied by intensified market research, more aggressive participation in international trade shows and other marketing activities and greater emphasis on strengthening networks and contacts in the target market. “Double shoe may enter negotiations with potential local partners to strengthen its position in the market in win-win business relationships”. By the time our exporting team have reached this stage, they ‘ll have already learned a great deal about the export market through prior experience, which will assist them in making appropriate adjustments to their strategy as they proceed with strengthening their position in the market.
    5. Investment abroad: If sales are brisk of double shoes, profits encouraging and opportunities promising, double shoe may choose to expand its presence in the target market. It can, for example, open a local office, tighten relations with local partners, buy an existing local company, form a joint venture or invest in R&D or production facilities. The target market may serve as a stepping stone to adjacent markets and become a focal point for a larger trade strategy. This final stage carries additional ramifications and responsibilities, beyond those of a company that is based elsewhere simply operating remotely in a foreign market. New issues come into play because the scope of a double’s presence broadens when it takes on a permanent physical presence in the market. For instance, the investing company must take into account the impact on and interaction with the community and all other stakeholders—employees, local government, the environment, legal and tax compliance, transparency, public image and sustainability. All of these impacts must be managed seriously and carefully as a corporate citizen, with strong corporate social responsibility as a policy that should be demonstrated at every opportunity.

Brand in International Market

A successful brand is the most valuable resource a company has. The brand name encompasses the years of advertising, goodwill, quality evaluations, product experience, and other beneficial attributes the market associates with double shoe product. Brand image is at the very core of business identity and strategy. Western researchers have personified brands, imbuing them with personalities and images. In a sense, the consumer–brand interaction becomes much like an interpersonal interaction, wherein cultural differences hold heavy sway. This comparison also implies that even global brands must be positioned locally, as a US consumer will see and interact with the Double shoe brand differently than a French consumer, Thus, customers everywhere respond to images, myths, and metaphors that help them define their personal and national identities within a global context of world culture and product benefits. We offered this shoe as a private brand because we want to dominate the whole world as this criterion.

SEGMENTING, TARGEGETING AND POSITIONING

Segmenting

Double segmented the market in two categories and they are

Geographical:

  • Urban (Metro cities) areas of USA, Need satisfaction for feeling cool
  • Rural (Small towns & villages) Need Satisfaction

Demographic:

  • Income (high, medium)
  • Age (20 to 35- especially those who are stylish and updated)
  • Education (Double shoe is preferred by educated people)
  • Occupation ( job holders, business persons, and students)

Targeting        

Once a firm has identified the market segments it wishes to target, it needs to develop effective targeting strategies for these segments. Double’s Targeting strategy when product specialization strategy when a firm possesses a particularly attractive product, and hence tailors it to a variety of feasible market segments. Double‘s attention is in Urban Upper middle class why the reason is described below.

  • Urban: Upper & Middle Class: Twenty percent of the country’s population lived in urban areas or large cities and consume a large amount of edible oil per year while the vast remainder lived in rural areas, villages, and small towns. We focused mainly on urban population because of its high quality product and benefits are very difficult to explain to the rural. Healthy oil category was undifferentiated in the minds of rural people.

Rural market was very unattractive because of following reasons:

  • Per capita consumption is quite low
  • Poor rural infrastructure & consumption habits were very different from the urban people and were two major obstacles to enter rural markets.
  • Affordability is a great factor for the reluctant of rural people buying rice bran oil which is a high premium brand.
  • Age group- Keeping in mind about the health conscious people which are present in all age group,
  • Income group- high income group is more entertained by rich bran oil due to quality & health caring and price premium.
  • Educated people- we created awareness in educated people towards the health implications of cooking oil and launched ads to educate people which they named as Cholesterol Management.

Positioning:

Positioning is the place that a product occupies in the minds of consumers relative to competing offers. In today’s fast life people hardly have time to sit down at ease and have a hearty breakfast, lunch or dinner. Thus depriving them of proper nutrition and leading to various diseases. Heart disease is one of the most dreaded diseases due to improper diet habit. Fortunately people in Bangladesh especially the urban class consumers have started realizing this fact and have become very careful in what they intake including the cooking oil.  Our project is claimed to be Heart Friendly shoe and prevent heart disease. Our shoe project satisfying relaxed Needs. Food fried in rice-bran oil absorbs less oil and thus reduces the consumption of oil in your diet. Positioning strategies are-

  • Competitive advantage
  • Points of parity
  • Points of difference
  1. Points-of-difference (PODs) – Attributes or benefits consumers strongly associate with a brand, positively evaluate and believe they could not find to the same extent with a competing brand. In the POD double offer two different product type with added feature and more personalization feature.
  2. Points-of-parity (POPs) – Associations that are not necessarily unique to the brand but may be shared by other brands i.e. where you can at least match the competitors claimed best. While POPs may usually not be the reason to choose a brand, their absence can certainly be a reason to drop a brand. While it is important to establish a POD, it is equally important to nullify the competition by matching them on the POP. As a late entrant into the market, many brands look at making the competitor’s POD into a POP for the category and thereby create a leadership position by introducing a new POD.

We divide the total strategic planning into different subgroups that are stated in the below figure

Business development Strategy
STRATEGIC

PLANNING

 DEVELOPMENT

Branding Strategy
Pricing strategy
Corporate identity builds up strategy
Distribution channels
Retention strategy
Positioning Strategy

STRATEGIC PLANNING AND DEVELOPMENT DIVISION

 

Positioning strategy

In the strategic positioning process we first try to develop the competitive positioning as competitive positioning is about to differentiate the companies offering and providing the superior value to the targeted customers. Double can provide the best offering, the cheapest offering, or the most comprehensive offering, but we can’t provide all three. Competitive positioning is about defining how “double” will differentiate their offering and create value for their market. It’s about carving out a spot in the competitive landscape, putting stake in the ground, and winning mindshare in the marketplace—being known for a certain “something.”
Double’s positioning strategy is influenced by:

Market profile
Customer segments or personas
Competitive analysis
Method for delivering value

  1. How to deliver value: At the highest level, there are three core types of value that a company can deliver: operational efficiency (the lowest price), product leadership (the best product), or customer intimacy (the best solution & service). Among them we provide product leadership because our vision is to provide the customer superior product than customer
    2. Evaluate our competition: We have direct and indirect competitors in the shoe market and imported lather market is the direct competitor and other oil brand such as Bata, mustered oil is the direct competitor of Double oil.
  2. Stake a position: Competitor is weaker at the position of providing healthcare oil and market of sunflower oil is very effective in the case of Bangladesh. We select the mindshare organization want to own, and create strategy to achieve it. Review the components of companies market and evaluate what company wants to be known for in the future. Condense all research and analysis we find that these segment of the market have soft corner for the Double shoe and it has good future opportunity.

 

Branding Strategy

Branding is crucial for products and services sold in huge consumer markets. Successful branding creates “brand equity”—the amount of money that customers are willing to pay just because it’s brand. Brand equity is an intangible asset that can be tracked on balance sheet, and can make company more valuable over the long term

Steps in forming branding strategy

  1. Regularly Audit brand: Company need to know the consumer mind set of the existing brand because it helps to design the brand positioning. Though the brand audit an organization know how to execute a message for the customer.
  2. Formulate brand architecture: Evaluate the features and benefits of sunflower oils. A feature is an attribute—a color, a configuration; a benefit is what that feature does for the customer. Such as Kim famous model of Bangladesh is the brand ambassador of “double” what would be the color of the front advertisement.
  3. Define brand experience: Brand as a person with a distinct personality. Describe Brand, and then convey these traits in
    everything that company do and create. Determine brand promise—the one thing that company deliver each time to interact with market.
  4. Define your brand visual and operational requirements: To create the strong brand with the customer we need to update them time to time and make them aware about the product and we choose the direct contract with the customer for building relationship.

Pricing strategy

Price is one of the classic “4 Ps” of marketing (product, price, place, promotion). Since price is one of the 4Ps, it’s a key element of every B2C marketing strategy.
Pricing is a complex subject—there are many factors to consider, both short- and long-term.  Our pricing strategy should follow the following rule:

  • Reflect the value that company provide versus competitors
  • Consider what the market will truly pay for market offering
  • Enable company to reach its revenue and market share goals

Distribution channels

Evaluate how end-users need to buy our company will answer these questions to evaluate.
› How and where they prefer to buy
› Whether they need personalized education and training
› Whether they need additional products or services to be used along with yours
› Whether your product needs to be customized or installed
› Whether your product needs to be serviced

  1. Match end-user needs to a distribution strategy: In the market of “double shoe” customers are prefer to buy though the outlet or local store as a result direct distribution is difficult in this sector .
  2. Identify natural partners: We build the good understanding and communication to the wholesaler and retailer as a result It require to give them good discount and other facility to improve the shelves stock.
  3. Building channel: we setting up a distribution channel with one or more partners, treat it as a sales process:
  • Approach the potential channel partner and “sell” the value of the partnership.
  • Establish goals, service requirements and reporting requirements.
  • Deliver inventory (if necessary) and sales/support materials.
  • Train the partner.
  • Run promotions and programs to support the partner and help them increase sales.
  1. Minimize pricing conflicts: Because of we use multiple channels that’s why we need to concern about the price conflict we carefully map the channels and figure out the expected level of profit at each channel We compare the price that the end-user will pay—if a customer can buy from one channel at a lower price than from another, your partners will rightfully have concerns.
  2. Drive revenue through the channel: we provide our channel with marketing funds or materials to promote your products; run campaigns to generate leads and forward them to your partners.

 Corporate identity builds up strategy

Double follow that each element in company identity should use the same fonts, colors, and layout. Consistency and professionalism in identity make an impression.

  1. Double Evaluate current identity usage: we check all the identity of business carefully such as business logo, appointment and other objects are also checked carefully that’s why we are focusing on innovative, expensive new products.
    2. Double create professional, consistent templates for every touch point with market: Every check point of the process we need to develop professionalism so that every touch point create the exclusive impression towards the customers

Retention strategy

Positioning and brand strategy should drive retention plan. For example, our method for delivering value is customer intimacy; our customers are expecting great customer service.

  1. Double build own team: we need to build a team of customer suppliers and all other stake holder to retain them profitably and continuously communicate them about their problems so those dropout rates are limited as possible.
  2. Double pay commission for renewals and growing the business: Current customers are our most valuable asset—if our sales reps don’t earn commission on renewals, they’ll have more incentive to spend their time chasing new business instead. So we are emphasis on the commission and renewals of the sales reps and others.
  3. Double prefer to existing customers: Put as much effort into our current customer campaigns as us put into the rest of your marketing programs. Know our audience, grab their attention, focus on the offer, measure your results. We use campaigns to:
  • Nurture your customer relationships
  • Encourage customers to buy again
  • Expand your relationships by cross-selling, up-selling and asking for referrals
  • Identify customers who are at risk of defecting continually deliver on our brand promise

Measure purchase intent and loyalty, not “satisfaction “Customer feedback can help us improve our products and enhance relationship with customers. However, it’s not effective to measure “customer satisfaction” because it’s so vague.

Business development Strategy

In this section, “business development” refers to high-level partnerships that generate revenue, create better products and/or increase efficiency. Business development strategy is effective
› Access new markets
› Increase sales to existing markets
› Improve your access to technology
› Boost your productivity
› Gain capital (human or financial)
In a true partnership, Double collaborate to achieve a common goal. It’s more than a short-term promotion, such as a special offer or marketing to each other’s customers. Instead, it’s an agreement to do business together while sharing responsibilities, resources, risks and rewards.

Here is the way by which Double develop business development strategy

  1. Double Identify potential partnerships
    Brainstorm to identify partnerships that can help us to meet your goals. For example, there may be related companies with customer relationships in a different market; double have vendors or suppliers who can help Double to improve their products or firms that can help us round out our services.
  2. Pitch a partnership: Double develop a strong pitch to capture the attention of our potential partners; focus on the high-level benefits for each party. As Double move through the sales process, cover all aspects of the partnership including detailed structure and terms.
  3. Double share responsibilities, resources, risks and rewards: Double have a much stronger chance of success when a partnership is balanced. As Double negotiate the deal, make sure that our interests are completely aligned and that each party is contributing.

 

CONCLUSION

Proper planning is not all to achieve success but proper implementation and periodic check out is important for any organization alternative planning must needed to be developed because the changing marketing environment and every department and every responsible person have specific duty to perform the task according to the planning

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