Export Plan. Marketing mix strategies for Koala wine Essay Example

  • Category:
    Marketing
  • Document type:
    Assignment
  • Level:
    Undergraduate
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    2
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    1378

Product development

The development of an effective marketing strategy is fundamental in ensuring that an organisation achieves a competitive advantage over the other players in the markets. China is a market that is very competitive as there are a large number of companies that engage in the wine industry. There are a number of factors that are essential to consider when developing an export strategy and also considering how to customise the domestic marketing mix strategy for Koala wine to fit into the Chinese markets. The first factor which would be considered is the product and how it would be made to fit to the new markets. The satisfaction of the needs of the customers would be of extreme importance in the success of the marketing of the wine (Gabriel, 2003, p. 315). Therefore, it would be necessary to conduct research on the customer needs in the foreign country and their preferences in order to use the results in the determination of the amounts of customisation required in both the product and the product line (Czinkota & Ronkainen, 2007, p.326). This would help in getting an understanding of factors such as appearance, quality, culture and psychological specificity among others that relate to the product that is being offered to the markets. Studies that have been conducted on the adaptation of products to the international or outside markets have indicated that products usually have to be modified in order for them to fit the international marketplace Even companies like the McDonald Company had to tailor their products to the outside markets in order to attract to the local markets in countries where it operates (Czinkota & Ronkainen, 2007, p.330).

This process is the initial development of the product for the export market. Therefore, it would be essential for the firm to have a strategy that clearly articulates the strategy that would be employed in the development of the product for the Chinese market. This would involve the setting of goals to be achieved and the definitions of the strategic areas in the product where re-engineering would be done. It would be imperative for the firm to come up with a product that clearly points out the values of the firm while at the same instance focusing on the value that the customers would get from consuming the wine. The strategy for the development of the wine as a new product for the Chinese markets ought to begin by putting a focus on the incremental changes in the product, which would be followed by the introduction of the new product to the markets. This would help in checking on the performance of the product in the markets. This would then be followed by the revision of the product with the aim of making it suit to the specific requirements of the Chinese markets (Brown et al, 2004, p.10).

Pricing

The export strategy would also put under consideration the export pricing of the wine. There are high chances that the local price of the wine would not apply in China. The pricing would be affected by factors such as the distance from the country of production, Chinese government’s tax policies among others. In most cases, buyers use the pricing of a product to determine its attractiveness. The decision on pricing of the wine would not be made in isolation from the other elements of the marketing mix. Similarly, it would not be made in isolation of the other functions of the firm (Czinkota & Ronkainen, 2007, p.354). In all decisions made in marketing, it is the target market that would determine the basic foundation for pricing. The pricing would also follow the specific policies regarding pricing that the firm has founded in making their pricing decisions. It would therefore be wise for the firm to consider all the costs that would be involved in exporting the product and the intended target market to determine the price with which the wine would be sold at (Leeman, 2010, p.151). Putting these in mind would play a significant role in ensuring that the wine is offered to the market at the most competitive price that would be accepted by the target market (Czinkota & Ronkainen, 2007, p.358).

Promotion

The other factor to be considered would be the promotion of the product. This relates to the communication to the market about the wine. The success of the promotion of the product would be determined by how well the objectives have led to achievements through the generation of more awareness, increase in purchases or a positive attitude towards the product (Pride et al, 2011, p.451). There are differences in the modes of promotion that would be employed. Most of the differences come with the customer preferences and also the array of legal, political, socio-cultural and also the economic environments of the foreign country. This therefore means that the strategies that are applied in one country may not be the same as those applied in another, hence the need for customisation and development of newer promotional strategies for each foreign country (Czinkota & Ronkainen, 2007, p.392).

It would also be of great importance for the firm to consider the language in which the promotional communication is made in order to ensure that the required message with the intended meaning is conveyed. The regular collection coupled with the observation of the feedback would be fundamental in the analysis of the rates of success of the efforts of communication. There are steps that would be followed in the formulation of the market communication strategy in the Chinese market. This would begin with the assessment of the opportunities for marketing communication. It would then be followed by the analysis of the resources for market communication that are available. This would subsequently be followed by the setting of the objectives for the marketing communications, then the development and evaluation of the available alternative strategies. The final step would be the assignment of the specific tasks of the marketing communication to the responsible parties in the promotion team (Czinkota & Ronkainen, 2007, p.392).

Place/Distribution

The other strategy direction would be in the consideration of the place phenomenon. Place here refers to the provision of the product, and in this case is the wine, at a place that is of great convenience to the purchase by the target market (Schulz, 2007, p. 14-24). This is synonymous with the distribution of the product. Due to the fact that the export market of the wine is not in close proximity to the country where it is manufactured, it would be necessary for the company to come up with alternative ways that would ensure that the product moves to its potential consumers effectively. There would be many factors that would be different between the methods of distribution that are employed in the home country and those applied in the overseas markets. These would also be different even between one overseas country and another. Distribution involves the physical movement and the various facilities that are associated with the movement of the product. This would involve the modification of the existent channel design so as to reach the target market effectively and efficiently (Czinkota & Ronkainen, 2007, p.416).

The development and the modification of the channel design would be based on the characteristics of the customers. These characteristics would be in terms of the demographic and also the psychographic characteristics of the customers in China (Czinkota & Ronkainen, 2007, p.416). There would also be the use of intermediaries so as to ensure the products reach the most specific customers. It would therefore be essential for the firm to come up with criteria for the selection of the intermediaries so as to ensure that the product reaches the customers through the use of the most efficient intermediary channel (Czinkota & Ronkainen, 2007, p.425).

Bibliography

Brown, M et al 2004, New Product Development: A Guide for Your Journey to Best-Practice Processes, Houston: Ameican Productivity & Quality Centre.

Czinkota, M & Ronkainen I 2007, International Marketing, Mason, Thomson Higher Education.

Gabriel, V 2003, Management , Singapore, Pearson Education South Asia.

Leeman, J 2010, Export Planning, Dusseldorf, Books of Demand Publishing.

Pride, et al 2011, Business, Mason, Cengage Learning Centre.

Schulz, S 2007, Market Entry Strategy Black Sheep Brewery, Zenettistr, Grin Publishing.