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Market Entry Modes

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Market Entry Modes

Table of Contents
Table of Contents....................................................................................................... 2 Executive Summary.................................................................................................... 4 Introduction:............................................................................................................... 6 Product:...................................................................................................................... 7 Relative Advantage................................................................................................. 7 Compatibility:.......................................................................................................... 7 Complexity:............................................................................................................. 8 Major Problems:....................................................................................................... 8 The Market:................................................................................................................ 9 Geographical Location:............................................................................................ 9 Transportation and communication:........................................................................9 Consumer Buying Habits:...................................................................................... 10 Product use patterns:......................................................................................... 10 Product feature preference:............................................................................... 10 Shopping habits:................................................................................................ 10 Distribution of the product:................................................................................... 11 Typical retail outlets:.......................................................................................... 11 Product sales by middle men:............................................................................ 11 Advertising and Promotion:................................................................................... 12 Promotions:........................................................................................................ 12 Pricing strategy, customary mark-ups:..................................................................12 Types of discounts:............................................................................................ 13 Competitions products:........................................................................................ 13 Price:..................................................................................................................... 14

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Competitors promotion:....................................................................................... 14 Distribution channels:............................................................................................ 14 Market size:........................................................................................................... 14 Estimated Sale:..................................................................................................... 15 Government participation:.................................................................................... 15 References................................................................................................................ 17

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Executive Summary
England is a home to buyers and its market is distinguished all over the world. To start a new brand in the U.K market is not an easy nut to chew. But keeping in mind the progress and performance of the Denim Wears, the company decided to launch a shoe brand with the name CoolWalk. Thus, the CoolWalk will commence its new brand for its valued customers to give them care and comfort as they had been receiving at Denim Wears. The CoolWalk would be compatible with all the other brands and the complexity of the company would also be managed effectively. There could be certain problems in the start of launching the brand like government regulations or the competitors attitude, yet the Denim Wears knows all the pros and cons of the issues in the market and can easily handle all the affairs of the market proficiently. The target market would be the UK, keeping in mind the location of the outlet and the transportation and communication resources for the compliance of the products to the outlets for the valued customers. The market dwells in a number of buyers who usually visit the U.K market for its qualitative products. Innovation in styles along with change with the changing trend will be the punching point for the CoolWalk. Targeting the women, the CoolWalk will take care of all the genders. The CoolWalk will keep itself aware of all the fashion and the trends in the area as well as around the globe. The distribution of the products would be dealt efficiently and it would be made possible that no outlet suffers shortage of variety of any product. Other than that the sale and purchase through the middle man would also be providing the CoolWalk a step ahead as compared to other competitors in the market. The CoolWalk will majorly focus on its advertising campaign. The advertisement always plays a key role in the uplift of a business. All the available resources of advertising would be taken into consideration by the CoolWalk. The

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products of the other brands would also be kept in mind and the CoolWalk will try to enhance its products as compared to other brands. The CoolWalk will also adhere to the government policies and all the rules and regulations will be obeyed. The CoolWalk, a neonate in the market, taking inspiration from the Denim Wears has planned to step into the shoe market and give its customers quality products.

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Introduction:
According to Foley (1999), for the progress of a company in Britain, the company has to be efficient with respect to all the terms involved in the marketing business. For this Denim wears, the clothing company has been progressing in the United Kingdom. The needs of the people have changed and as per the requirements of the people Denim wears has been travelling according to the needs and wishes of the people. That is why, it has seen a rapid progress not only in the marketing ethics but also in the economic related issues. Denim wears, the clothing company was established back in 1990 and since then it has been rising with its product strength and consumer feedback. In U.K, the consumers are very much satisfied with the products of Denim wears and also enjoy the innovative trends it launches quite often. It deals in clothes for all genders and of all ages. It has been expanding and has opened various outlets throughout U.K which evidently proves the growth of the company. Denim wears believes in quality products and the prices are adjusted according to the range of the buyers. It tries its best to make its customers proud of it and tries to give the customers its best so that they keep on visiting the Denim wears. Keeping in view the progress and feedback of Denim wears, the management of the company has decided to launch shoe brand with the name of CoolWalk. Denim wears is confident in launching the new product and is hoping to get good response of the customers. The customers will not let the Denim wears down and the Denim wears will also not let the customers feel embarrassed after choosing CoolWalk as their prime choice.

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Product:
Relative Advantage
Denim wears has launched its new product CoolWalk with an intention to grow in the market. CoolWalk itself will bring an innovation in the market. It will be focusing on all the genders specially women. As the CoolWalk thinks that women are more into fashion and the changing trends in U.K than men. Thus the CoolWalk has an ambition of giving the customers the product of their own choice. This does not mean that the kids and the men will not be given due quality. In 2003, Reynold proposed that the companies should keep all the valued customers in equal standards. Therefore, CoolWalk will produce a comfortable product for its customers which would be more advantageous for them as compared to other brands in the market. The styles and standards of the brand will be comfortable, attractive and the customers would be contented.

Compatibility:
In 2003, Reynold said that the products should focus on competing the other brands but not at the cost of any unfair means and problems and conflicts. Therefore, the CoolWalk footwear would be compatible with all the other brands. It will exist along with the other brands. The compatibility in the current market will be the issue in the long run. As the CoolWalk is foreseeing a strategy to compete all the brands present in the market. And in this case it is quite probable that other competitors will go hard on CoolWalk.

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Complexity:
CoolWalk footwear will be another brand of the Denim wears. For that reason, CoolWalk will be having a number of stakeholders as well as organizational structures. It will focus on its stakeholders and will work efficiently to manage any complexities if there be.

Major Problems:
The Denim Wears has a strong standing in the market and this will benefit the CoolWalk. There can be problems and resistances to the acceptance of the product in the market. In 1999, Yadong highlighted some of the problems and resistances which a company can fac during launching a new product. These include: Other footwear brands have a long standing in the market. Huge advertising campaign would be needed for the good start of the CoolWalk. Permission of the government policies and legislation in this regard would be needed. The price value will have to be made accommodative for the public to choose the CoolWalk brand as their first choice. The launching time and the launching area will decide the fate of the CoolWalk.

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The Market:
The Denim Wears after a detailed study of the market has thought to launch the new brand CoolWalk. The market has got a huge potential in this regard. As per Zimmerer and Scarborough (2008), there is a lot of sale and purchase capacity in the UK market. That is why this new brand of shoe wear has been launched. Following are the main reasons why the Denim Wears has launched Cool Walk in the market.

Geographical Location:
According to Mcdonald, Burton and Dowling (2002), the situation of the market itself is the main reason to launch any new product. The market area is surrounded by the large number of population. The market is open 24/7 and the number of visitors to the market seldom decreases. Its a very famous place in U.K so not only the people of the vicinity would be coming to the new brand but also the tourists and the outsiders would also be attracted to CoolWalk.

Transportation and communication:

The market which has been focused by the CoolWalk is an infrastructural developed place. The means of communication and transports are all time available in the market. Other than that the company has also its own resources to send the products in other outlets in the vicinity as well as at out-stations.

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Consumer Buying Habits:

Keeping in view the buying habits of the customers, CoolWalk has chosen the market. The consumers here are always in need of new trends in shoes along with comfortability. The CoolWalk is ready to give the customers both comfortability and innovation at its outlets. Other than that this area is relatively hotter than the other parts of U.K. so CoolWalk has planned to offer some summer collections which would not be available at their shoe stores and this strategy would help CoolWalk to attract a large number of customers.

Product use patterns:

According to Root and Franklin (1994), mostly high heels and ankle boots are worn by women and men mostly wear formal shoes along with sneakers in UK market. Keeping in view the target trends, CoolWalk will majorly focus on these types of shoes and the other categories would be given due share in the outlet.

Product feature preference:

The products CoolWalk would be launching in the market would be meant majorly for women. The market always abounds with families especially women. So the products would be more specifically for women. This does not mean that products for men would not be available. There would be the availability of the products for men but only in counted shelves.

Shopping habits:
In 2003, McKern argued that the shopping habits in the UK market keep changing with the changing trends. Thus, the CoolWalk will focus on the shopping habits of the customers and the

Market Entry Modes customers will feel like the outlet is moving according to their minds. The families come in the market not for the sake of window shopping. In fact this market is famous for genuine buyers. Thus the CoolWalk keeping all the experiences of the market in mind will try to give the customers according to their habits.

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Distribution of the product:

The product will be launched with all the planning beforehand. The distribution of the product would be managed according to the needs of the other markets. There would be two outsourcing departments.

Typical retail outlets:

The distribution to the typical retail outlets would be done through the vehicles owned by the company and as per the demands of the outlets. The retail outlets need a large supply on a daily basis and to manage the supply chain the productivity would be increased as the demand increased. The typical retail outlets will never be allowed to fall short of the stock.

Product sales by middle men:

The company will also be focusing on the sale of the products through middlemen because in the far distant places where the consumption is not high, a retail outlet does not give good profits. Thus middlemen would be hired for the sale of the CoolWalk products. If there arose any need as per the sales ratio, then outlets would be opened in far distant places.

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Advertising and Promotion:

For the promotion of the new brand, all the possible promotional stunts would be used. As per the research conducted by Walter and Murray (1988), the most effective media campaign is through the banners. A large number of banners with pictures of different products would be advertised all along the market to advertise CoolWalk. Other than that, signboards with attractive lights would be hired for advertising. For the outer reach of the product, fashion magazines and other pamphlets would also be used for advertising the new trends in shoes. For advertising, fashion shows and catwalks would be arranged by the company to tell the other competitors in the town the art of advertisement.

Promotions:
The promotions would also be launched in the retail outlets to attract the customers. Other than that, the sample items would also be floated into the area for the promotional campaign of the product. These inhibits would be done for the promotion of the brand in the market. In 2009, Hitt revealed that the brand always need some time to set for its grounds in the market. Therefore, gifts would be allocated for the valued customers as well as for the kids on buying the products from the retail outlets. Weekly or monthly in-house promotional shows would be planned to attract the customers.

Pricing strategy, customary mark-ups:

The price of the products would be fixed but would not be more than the prices of the other similar products floating in the market by other brands. The prices would be suitable to the customers. And the customers will prefer to buy the quality products in lesser price at the

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CoolWalk outlets. Robin and Gillies (1996) conducted a research in which they proposed that the incentive systems played a vital role in retaining the customers. Therefore, the valued customers would be given incentives such as buying two pairs of shoes will lessen the price of the second shoe to half its original price.

Types of discounts:
Sherman (2004) proposed that customer care cards should be issued for a new product in order to attract customers towards the product. Therefore, customer care cards would be issued which will not only take care of the products in the future but will also help the customers to come again to the outlet. The customers with the customer care cards would be given discounts. Other than that, some shelves would be reserved for the older products and those shelves would be given special discounts.

Competitions products:
The CoolWalk has stepped into the market with a wish to flourish and progress in the field of the shoe market. The real competition in the market is Lotus, a shoe brand. Lotus has been working in the market since long and has a respectable reputation in the shoe industry. The lotus also deals in women and men shoes, giving priority to women's products. The lotus has a variety of products including high heels, heels, boots, sneakers, sandals, sports shoes and party shoes. The main product of the Lotus is its high heels which always grab the customers. The Lotus features comfortability along with affordability. This feature of the Lotus has always given it higher ranks in the market. Other than that the Lotus also gives a good deal of prices to the customers. At times the Lotus is expensive but overall it always gives good price tags.

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Price:
The Lotus is famous for its price tags. Its items are within the range of 50.00 to 100.00. Though at times, the products feel expensive yet the products get the attention of the customers.

Competitors promotion:
The Lotus uses every available source of advertisement. From banners to signboards and from magazines to newspapers are used by the Lotus. Gloomy lights are also used by the Lotus for the attraction of the customers. Other than that the Lotus also uses internet and television for their advertisements.

Distribution channels:
The Lotus distributes its products all over England, as it has spread its branches all over England. For this, trucks are used by the Lotus for the transport of their products to different cities in England. And mini trucks are used for the transportation of the products within the city.

Market size:
According to Bartett (2009), the market of the shoe industry is too huge to be gauged by its sales ratio. There is a lot of potential of selling and buying in the market. The use of new trends in shoes is very much liked in the market. Due to higher sales ratio of the shoe products, a number of shoe brands have been planning to open up in the market. This will create an atmosphere of tough competition (Bartett, 2009). Apart from that, the market is the hub of shoe lovers. In this

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market, the shoe style changes almost every day. Thus due to such a rapid innovation in the shoe styles, there is a lot of potential in this market.

Estimated Sale:
In 2004, Sherman concluded that the estimated UK shoe industry sale for a planning year is about 25.00 billion. This figures will keep on fluctuating during the year as the demands of the customers keep on changing. This estimated rate is dependent on the changing trends in the market. If there are rapidly changing trends, then the sales ratio would be higher. The estimated industry sale of the CoolWalk for the planning year is set for 25.00 million. In this estimate, the retail outlets contribute about 80% while the remaining is estimated for the vendors and middlemen. Every year U.K consumers spend almost 20.00 billion on footwear (Sherman, 2004).

Government participation:
In 1999, Burton et. al said that the role of government in any business cannot be neglected. The government always helps a lending hand in the business. The marketplace is always assigned by the government. Consumer protection is always the job of the government. In this regard the government always issues certain order which keeps the health of the consumers ensured. The government regulates some laws for the free and fair regulation of the information regarding the product is surged in the market. Consumer protection laws are there in the market representing government (Burton, et. al, 1999). In 2003, Hoy and Stanworth further revealed that this not only helps the consumers to make better choices but also helps the government in collecting the complaints from the consumers. Consumer organizations, tax commissions, trade commissions,

Market Entry Modes ombudsmen are present in the market for the coordination of the market with the government. All these organizations lend a helping hand to the government which as a result promotes

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consumer protection. Other than that law of competition in the market also helps the government participation in terms of law of the market (Hoy & Stanworth, 2003). The CoolWalk will follow all the regulations of the government as according to the rule of law as well as according to the rule of the market. The CoolWalk will abide by all the rules and regulations. It will take care of the customers health. And quality in the product would be companys top priority. Besides, CoolWalk will also create a healthy environment of competition in the market. The CoolWalk will not go against the laws of nature and laws of government. The consumers and the customers would be appreciated at all levels.

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References
Bartett, C.A. (2009), Transnational Management: Text, Cases and Readings in Cross Border Management. 5th Ed., McGraw-Hill Higher Education, ISBN 978-0-07-310172-9 Burton, Fred; Chapman, Malcolm; Cross, Adam (1999), International Business Organization, Academy of International Business, ISBN 0-312-22371-4 Foley, J. (1999), The Global Entrepreneur: taking your business international Age, Dearborn, ISBN 1-57410-124-2 Hitt, A. (2009), Strategic Management Competitiveness and Globalization, Nelson Education Ltd, ISBN 0-17-650006-5 Hoy, F.; Stanworth, J. (2003), Franchising: an international perspective, Routledge, ISBN 978-0415-28419-6 McDonald, F.; Burton, F.; Dowling, P. (2002), International Business, Cengage Learning EMEA, ISBN 978-1-86152-452-2 McKern, Bruce (2003), Managing the Global Network Corporation, London: Routledge Reynolds, F. (2003), Managing Exports: navigating the complex rules, controls, barriers, and laws Age, John Wiley & Sons, Inc., ISBN 0-471-22173-2 Robin, J.; Gillies, G. L. (1996), Global business strategy, Cengage Learning EMEA, ISBN 9781-86152-352-5 Root, Franklin R. (1994), Entry Strategies for International markets, John Wiley & Sons, Inc., ISBN 0-7879-4571-4 Sherman, A. J. (2004), Franchising & licensing: two powerful ways to grow your business in any economy, AMACOM Div American Mgmt Assn, ISBN 978-0-8144-7222-4

Market Entry Modes Walter, I.; Murray, T. (1988), Handbook of international management, John Wiley and Sons, ISBN 978-0-471-60674-1 Yadong, L. (1999), Entry and Cooperative Strategies in International Business Expansion Age, Greenwood Publishing Group, ISBN 978-1-56720-161-1 Zimmerer, T. W.; Scarborough, N. M. (2008), Essentials of Entrepreneurship and Small Business Management, New Jersey: Pearson Prentice Hall, ISBN 978-0-13-727298-3

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