Kickers international marketing strategy
The theory of market mix is my choice of model that I used in the analysis. The role of the culture and ethics of the Swiss is also discussed and its impact on the marketing and selling of the shoes. In conclusion, the Swiss market is the best destination for Kickers to expand into as it is already primed for penetration. Introduction International marketing involves the exchange of goods and services across international boundaries for a buyer and a seller. Various strategies may be analysed to see what can be put in place when a company is venturing into international sales. It is in fact Kickers durability that appeals to consumers, making it a major player in the children’s footwear industry.
It is this reason why Kickers hope to attract a wide market in Switzerland. The objective of venturing into the Swiss market for Kickers Shoe Company is to enable its profits to grow by 5% over a 3 year period. However, Kickers need to first formulate a business plan on how it will enter into the new market. A business plan is a written description of the future of the business and it identifies, describes and analyses a business’s technical, economic and financial feasibility. If sold at the right merchant stores Kickers can gain instant trust from consumers. An example of this theory put into use is Sports direct and JD sports in the UK. Although they both sell very similar items, if a new product is put into both JD and SD it is more likely to sell in JD purely due to their reputation as a consistently reliable merchant compared to the continuously demising reputation of sports direct.
Penetration of kickers to the Switzerland market will be a challenge to the company. However, Kickers can incorporate partnership with other companies with a better market base in Switzerland. In addition sharing of resources is an additional advantage to kickers as it uses the partnership to get into Switzerland market. They can pool their resources by entering into strategic partnerships. Resources such as warehouses can be shared when it enters into a partnership thus helping Kickers reduce costs incurred to set high-cost structures in the foreign market. By sharing resources, both companies will advance on the same path towards innovation. Through a strategic partnership, there will be extended product lines. In contrast, other markets such as Greece were analysed for expansion but turned down due to poor economy.
43% of people aged between 15&24 are currently unemployed in Greece, with this age group being the target market for the next decade it wouldn’t be economically sustainable for Kickers an upper middle end child shoe company to expand into that market. (Businessinsider, 2017). Supply and demand is also another economic term the kickers has to consider as it ventures into the market. This is because factors of supply and demand play the biggest role in marketing a product anywhere in the world. This will entail Kickers coming together with other parties who will own a certain percentage of the business. This will, however, bring a number of good fortunes to Kickers Company. Among the benefits that kicker could enjoy as it enters into a joint ventures includes access to technology where it can access improved technological advancements from the company which they have a joint venture with.
Additionally, it will gain entry to the Swiss market easily and also have readily available channels of distribution. This can, however, be among the best arrangement to penetrate the market easily and also with low costs. The strategy has low control and thus Kickers, agents may also represent their competitors. Notably, the agents are expensive to train, recruit and also retain. Foreign direct investment also known as international sales subsidiary is another way that Kickers can use to enter into the Switzerland kids shoe market. This form of foreign investment entails setting up a new building or it can acquire a plant that was in existence. A number of benefits come along with direct foreign investments among them kickers can now become localized in Switzerland.
Licensing as we have mentioned earlier is a marketing strategy that most organisations have used in an attempt to expand to the overseas, it is becoming a challenge to get a company that is willing to transfer its rights of using a product to another company. This on its own is the main problem that organisations with the intention of expanding overseas have to deal with. Several companies have shown a record of failing in their attempt to expand to Switzerland an example of a fallen company is Swiss air that failed in 2002 because they failed in one way or another. This may not be the case for Kickers because for this organization a detailed background check has been done. Market strategies have been put into action and back up plans established in case of any malfunctioning.
It will also help the company marketing its products by learning the different languages used by swiss nations. Learning the language spoken will also help the company on acquiring necessary information in the market about the taste and preference of Swiss nation and also create good customer relationship hence generating the sales of Kickers Company products. Regional values will also impact the marketing and sales of the kickers' kids shoes. In Switzerland, French people are the second largest regional group of people. This is an added advantage to Kickers since it was made by a French national. Responsible and sustainable initiative the influence sales and marketing strategies Kickers Company can indulge in charitable activities by partnering with charitable organisation in Switzerland.
Through charitable activities the company is able to sell its name out to Switzerland people, this mean that the company will gain recognition in the market thus boosting its sales in the market. Secondly, through charitable activities kickers company is able to interact with the people of Switzerland thus creating good relation with the customer of its products thus better performance of the business activity. Participating in charitable activity is also good for kickers company because it will boost the employees morale, this is because it will give the employees of kickers company a positive attitude towards work and the workplace culture can also be improved leading to better productivity of employees thus boosting sales. Indulging in charitable activities also can lead to tax deduction for the kickers company.
Kickers Shoe Company can also undertake the corporate social responsibility (CSR). This ensures that the company contributes to the social, economic and environmental development of Switzerland. The company should adhere to the laws and regulations set by the Switzerland company concerning the business activities. It should also be ethical in the way that it carries out its activities and should provide products that are of good quality to the people of Switzerland. The company should also ensure that it contributes to the economic development of Switzerland by being profitable. Some parents give preference to shoes that are cheap and affordable compared to children’s taste and preference. Some parents work on their budget and according to them, shoes need to be cheap and affordable because small children outgrow the shoes and it needs to be replaced after a short while of time.
So as the kickers shoe for Kids Company set their stores in Switzerland, it should consider such kind of parents and focus on special promotions and provide promotional discounts for its clients thus reaching a wide range of client (Adam, 2018). Having special offers for kids who are going back-to-school can also bring many customers on board. Social media is another marketing strategy that the kickers company can use to convince clients to purchase shoes for their kids. This refers to learning about the norms and values of people in Switzerland. Also familiarizing with clients segments based on tastes, expectations, views and the specific needs of the clients. Through this, the company will be able to export shoes for kids that rhyme with the needs of people in that country.
This will lead to the company performing well in the competitive globe. The company for children's shoes can also adapt some market theories to help in the sales and marketing of its products. It should take every step that it takes to know the new markets. It may attend shows and exhibitions and participate in them and try to learn about the competition in the market. Kickers Company should also identify the market entry that it should implement. It can either decide to use the agents located in Switzerland to market its products. This will ensure that its products reach to its customers thus increasing sales. These methods may include: Monetary policy, Switzerland government can use the monetary policy to control the flow of currency.
It can use interest rates as a tool for monetary policy. High-interest rates mean kickers shoe for kids will incur the high-interest expense and low disposable income for the people of Switzerland. This means that the kickers company may make high losses due to low sells of kids shoes and low profits thus affecting the sales and marketing strategies of the company (Terpstra at. al, 2012). Exchange rates are another tool that the Switzerland government can use to impact on the sales and marketing strategies of companies. The exchange rate that is easily adaptable includes fixed exchange systems and free floating exchange system. Under fixed exchange systems the government ensures to maintain its currency within a specific narrow band. The government fully take part in the international markets in order to maintain its fixed exchange rate at a level that is near the market exchange rate (Henriksen, 2012).
This means that the government will not allow countries inflationary rate to exceed that of trading partners. Market risk is another factor that may impact the sales and marketing of kickers shoe for Kids Company. This is a type of risk that the company may be exposed to and can result to advance changes in the prices that the shoes are traded in. it may be in the form of liquidity risk where the firm is unable to sell its shoes quickly or find suitable customer before it loses its value in the market. Another market restriction that may have an impact on the sales and marketing of Kickers Company is the political forces in Switzerland. This implies that political uncertainties may have a negative impact on a company’s performance.
The company will be able to access most competent and skilled employees across the world thus ensuring high productivity and satisfaction of its clients. Global sourcing can also lead to maximum utilization of the supply system (kotabe at. al, 2009). The kickers company can also take advantages of tax. It can move from a country that offers low-interest rates for its products to countries with high interest rates. List of References adam, a. Marketing Strategies for Kids' Shoes. [online] Smallbusiness. chron. com. Culture of Switzerland - history, people, clothing, traditions, women, beliefs, food, family, social. [online] Available at: https://www. everyculture. com/Sa-Th/Switzerland. html Health Knowledge. and Murray, J. Y. Global sourcing strategy. The SAGE handbook of international marketing, pp. Ryan, D.
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