SKAGEN DESIGN |
ASSIGMENT 4 |
Marian Nieto y Patricia Preysler |
1. What screening criteria should skagen designs use in a connection with its choice of new markets for its watch collection?
Market screening is the process of discovering relevant information abiut a tradable asset in order to determine a fair price for the asset. Primarily is used to avoid creating an adverse transaction. Its a way of creating shortlists of opportunity list. Market screening its also a way of minimizing the size of the large data collection. Screening is divided in 6 steps.
The first step is market size. In this step screening looks at the demography which concerns the ...view middle of the document...
As well, the improvement of their website so that is useful outside the U.S by applying various foreign languages such as spanish, and not just english.
2. Make a specific choice of new markets for Skagen Designs. Table 1 and table 2 can be used ro support your argument.
While deciding in which market Skagen Designs should enter, we have to see the coarision between the emerging markets and the well-established markets.
First of all, the well-established markets have a low growyh rate. In these countries there is an intensification of the sales force and an increase in the advertisements and marketing efforts so that the image of the product ameliorates. These countries have usually low prices and they use to analyse annuals turnovers and consumption to evaluate the market trend. United Kingdom, Italy or Germany are example of these sources of well-established markets.
On the other hand, the emerging markets have a high growt rate, just the opposite of the well-established markets. These countries usually enter in msrkets with high demands and target customers with medium and high income. Finally, they often offer top quality products at reasonable prices. Australia, South Africa and China are types of emerging markets.
For deciding our choice we choose a marketing attractiveness/competitive strength. After excluding countries which they are already in the market we use different dimensions of the matrix to find out which country we should enter. After the outcomes of the questionnaire for the locating countries of the market, we used the matrix which expose that the best countries to enter are Australia, South Africa and China. These are our A markets which are the ones where it can be developed long-term strategies with the best opportunities. There is not too much difference between the other types of countries.
After a series of diagrams in which we compare the retail volume per thousands of units, the number of watches per 1000 people snd the value of the different watch markets we get to the conclusion that the best strategy is represented by the new emerging markets which are characterized by a high growth rate and a high profitability. The firm aims to conquer these markets by offering a good quality product at reasonable prices which aims to fulfil customer's needs of endorsement, luxury and dynamism, by positioning itself in consumer's mind at the same level of the other competitors such as Gucci, Armani or Calvin Klein.
3. Which market entry mode should Skagen Designs use on the chosen markets?
The decision of entering a new market is usually a tough decision. Choosing the correct one may have a significant impact on the results. Expansion into foreign markets csn be achieved through three main mechanisms; intermediate modes, hierarchical modes and exporting modes.
We will focus on exporting as it is the best market entry strategy for Skagen Designs. Export is the commercial activity of selling goods to a foreign country. It...