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Business Plan. How to Enter Foreign Market
Research Papers29 Economics, Marketing, Advertising, Business
Nr. | Chapter | Page. |
I) | Organization | 5 |
II) | Product or service | 10 |
III) | Key market characteristics needed for the product to be successful | 11 |
Copenhagen (Denmark) | 12 | |
Amsterdam (Netherlands) | 14 | |
Stockholm (Sweden) | 15 | |
IV) | Suggested market and its basic characteristics | 16 |
a. | Geographic environment | 16 |
b. | Demographic Environment | 16 |
c. | Economic Environment | 17 |
d. | Cultural Environment | 18 |
e. | Competitive Environment Factors | 20 |
f. | Political Environment | 20 |
V) | Market entry mode | 21 |
VI) | Staffing strategy | 24 |
VII) | Marketing strategy | 26 |
VIII) | Funding | 28 |
A recent search engine called ‘Ecosia' is already dealing with re-greening the planet by using adverts to finance the replantation of trees in Madagascar, Burkina Faso and Peru. This German Google extension has successfully been experienced, which make us believe the project is viable and feasible. Thanks to the “One Product One Tree” plan, the client has the instantaneous feeling to participate to greener world and knows exactly where his money is going.
The challenging side of implementing Nature & Decouvertes in Amsterdam is the obvious French connotation. The brand name might not be explicit enough for passers-by to enter into the shop. We are then confronted to a dilemma of developing the brand regardless the lack of meaning, or changing in for Natuur & Vinden. In order to introduce the brand as an eco-responsible actor, we believe in the power of BtoC marketing. As one of the biggest Dutch attraction in Amsterdam is the floral market open every day under tarpaulin, we suggest an ephemeral appearance a month before the opening of the store to present the concept and what’s hidden behind. In terms of marketing legal restriction, packaging, advertising and content information, The Netherland has a great proximity to France, meaning the product won’t be subjected to many product, communication or marketing change. Yet, the French brand decided to widen its distribution channel and go toward Fnac, a large French retail chain selling cultural and electronic products, Blokker Dutch equivalent. To boost visibility, it appears as a great opportunity to seize, however Blokker isn’t environmental-oriented and used to partner with big multinational brands such as Phillips o Nova. The concept will be hard to be sold in the middle of high-tech products and doesn’t belong at all to the brand image.
VIII) Funding
N&D have always set up its store using its own funds and have successfully manage the implementation of more than 89 stores. Thus, the company acquired sufficient knowledge and should pursue the same strategy in the chosen market. N&D are healthy and cash rich company as you can see in the table below company have cash due to years it is increasing into 2014 companies net income was 5612700 Euro but in 2015 net income has increased to 5717500. Unfortunately we don't have access to company's cash flow, and we can't see where exactly money comes from. But we assume that company can finance by themselves new market entry.
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EXECUTIVE SUMMARY Nature & Decouvertes, as the name suggests, is a French brand selling original products related to nature discoveries with a varied range of equipment and accessories intending to cultivate nomadic spirit and connect humans with nature.‘Offer the best of the world, for a better world’ is what Nature & Decouvertes is willing to sell by being actively involved into environmental association The concept has already met a great success in France, Belgium, Germany and Luxembourg, which have revealed the high receptiveness of foreign market. After carefully analysing Sweden, Netherlands and Denmark as potential markets, going from their urban area to their level of environmental commitment, we strongly recommend an entry into the Dutch market and have high expectations on its results. We suggest entering the Dutch market thanks to a Wholly Owned Subsidiary strategy (WOS). In fact, as it was a success for the company implementation in Germany and as this entry mode provides the highest level of control on the store, we think it is the best way penetrate the Dutch market and realize a successful implementation of the concept in Amsterdam. We believe that the city of Amsterdam could be a great option for a first entry into the Dutch market. As a matter of fact, through a PESTEL analysis of the Amsterdam metropolitan area, we have found that the local government’s strategy is to create an international business environment welcoming foreign ventures. In addition, we believe that the values held dear to the citizens of Amsterdam correspond perfectly to Nature & Découvertes’ will to offer quality products with a sense of ethics and responsibility. Furthermore, we have found that Amsterdam is the city displaying the largest proportion of young adults and a strong sense of responsibility concerning sustainable development practices. The company is cash rich and therefore has two options regarding the funding: it can either use its own cash or get a loan from the bank, depending on the company’s future goals. We strongly believe in the strength of sensorial marketing strategy within the shop. As the ideology of N&D isn’t to sell a product but to sell an experience in a “museum-shop”, awakening the 5 senses is an appealing tool to make the customers purchase by curiosity. The specificity of the brand is that consumers aren’t only money generator but a veritable actor of the environmental change. The ‘One product bought, One tree planted’ communication strategy is willing to involve consumers and give them an instantaneous result of their participation.
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