- Know the U.S. market share in the target market(s).
- Understand the import tariffs and mark-up structure and the retail price point the products will sell
- Know the legal structure of the distribution system
- Know the useful division of sales through several channels and the end-users of the products
- Develop a marketing plan that caters to the target market(s)
Marketing strategy differs from country to country. It is important to consider the practices unique to the country's culture. What works in the Philippines may not necessarily work in Germany. This is particularly true in the advertisement of the product. One must treat the market separately not uniformly.
Sometimes, product modification is necessary in order to meet the requirements or preferences dictated by a particular culture. Foreign distributors have to cope and follow local regulations on safety and security also import limitations.
Coca Cola makes use of market research to be able to maintain its spot at the top.
External Analysis (Porter's Five Forces Theory)
Porter's Five Forces Theory
Porter's Five Forces demands that businesses should consider the possible factors that influence the course of the business, in this instance, wine exporting business. The five forces (QuickMBA, 2004) include: customer power, supplier power, competition from new entrants, competition from substitute products and intensity of the competition.
Other factors needed for the company to become competitive in the market involve a careful study and implementation of the following:
Internal analysis -
Identify Strengths and Opportunities
The external analysis requires the limits and opportunities brought about by the company's environment. The internal analysis demands that the organization pays attention to its strengths and weaknesses.
Part of knowing the company's strengths and weaknesses is scrutinizing each aspect of company's operations without being overly critical or too lenient. Honest self-assessment is the key to proper identification of strengths and weaknesses without getting too emotional about it.
The most valuable way to do an internal analysis is to carry out an "audit" of operations. The result of the evaluation produces a structure of the company that can be compared to a similar organization. However, no two establishments can be the same so it is important to focus on the similar stages of growth they undergo.
Perhaps one common denominator found in widely successful companies such as Microsoft, Dell, Coca cola, Intel, Unilever, Proctor and Gamble, Mini / BMW and Gillette is its ability to identify the Strengths and Weaknesses in their existing marketing strategies, Opportunities and Threats, and issues which requires to be deal with.
Their ability to see a challenge and respond accordingly in a prompt manner is what put them at the helm.
Segmentation
Porter's Generic Strategies
Another set of strategies that could help the company in generating more sales would be Porter's generic strategies which consist of three: segmentation strategy, differentiation strategy and cost leadership (Porter, 1980).
Cost leadership strategy pertains to mass production of standardized products to lower the cost. Manufacturing the product in high volumes or by bulk would lower the costs of the product because fixed costs are maximized.
Differentiation strategy means creating products that are being packaged as unique. Customers believe that the features of the products are incomparable and superior compared to others hence the reason for its uniqueness.
Segmentation strategy means products are focused on few, selected market or the specialized markets. The company creates the product to suit the tastes or demands of a specific market.
The company could choose to implement any of the three strategies that would best promote the product at the same time usher in more sales. Of course, before choosing the strategy it is important that the company chooses the target market first and clearly define their objectives. Choosing the best strategy could spell the difference between success and failure in the business market.
Coca Cola uses segmentation to be able to remain competitive. It diversified into various products starting in 1960 when it acquired Minute Maid Corporation, producer of Hi-C fruit drinks. It also merged with Duncan Foods Corporation. Then in 1969, it bought the Belmont Springs Water Company Inc. which produces bottled spring water. It also acquired Aqua Chem Inc and Taylor Wines Company and other wineries. Aside from diversification it also expands its product line by producing Fanta, Sprite, TAB, Fresca and diet colas.
Perhaps an antithesis to segmentation and diversification is the Unilever and Proctor and Gamble's move to downsize, instead of increase, on its product lines.
Unilever implemented its year-old marketing strategy which is to trim down its focus on 400 "master brands" instead of the usual 1,500. To remain true to its campaign, Unilever focuses on promoting its three fabric-care master brands - Wisk, All and Surf.
Proctor and Gamble also downsized some powder detergent brands last year , just like Unilever, to be able to focus on its core products Tide.
