Type: Process Essays
Sample donated: Ted Robinson
Last updated: April 21, 2019
Handywares is a British based homeware company selling door to door through a network of agents.
Business is going well in their UK domestic market and they have decided to expand into Europe.To do this we have drawn up this marketing plan. The aim of this plan is to attempt to ‘predict the future through studying the past’* This plan will attempt to cover all aspects of the process of entering a new market though the following areas:1. Understand your industry, not just your product2. Identify your target market.3.
Identify your competition4. Establish your pricing, distribution and product positioning5. Identify the one, single, correct marketing concept for youMission (or vision) statement:Initially it is important to state the company’s mission statement as this will govern and guide our decisions through the marketing plan. The Handywares Mission statement is as follows:*Situation analysis:Handywares is a British based firm selling homeware door to door though a network of agents with a current turnover of 50m.
The agents are responsible for the door-to-door drop-off of weekly catalogues that are left for the customer to peruse at their leisure. Orders can be made though order forms that are placed inside the catalogues. The agents then collect the catalogues at the end of the week and any orders that have been placed are taken to head office. These order forms are taken to the distribution base, processed and the ordered items are given to the agents to deliver when they drop off the next catalogue.
Handywares is now in a situation where it is able to expand. The markets it has chosen to consider are China, Germany, Hungary and Poland. We will use a complex set of criteria when analysing our shortlist of countries.
Once the country is selected it will be necessary to perform an in depth market analysis enabling handywares to develop a market entry strategyObstacles ; Opportunities:Before any sort of marketing plan can be carried out it is important to analyse the current situation within Handywares through a SWOT analysis. This should enable us to remedy any deficiencies and design a marketing plan which suite the strengths of our company.SWOT AnalysisStrengthsHigh Quality ProductThe domestic accessory market is many countries is flooded with cheaply made equipment and Handywares prides itself on the strength and durability of its products. Our goods are being produced in the East Asia, which will enable us to produce at a low cost. Also, many European countires view Easten production as being of a high quality.
Full Product LineHandywares currently operates a full and varied product range that it will be able to transfer to its desired overseas market. Handywares believes that if it can fulfil all of a consumer’s homeware needs then they will be less likely to notice an alternative. Although initially it will be difficult to introduce a product range as expansive as the one in domestic operation it will be included in our short term plan to build up our product range in our chosen foreign market.Sufficient Capital ResourcesHandywares has a turnover of 50m per year and has sufficient capital resources to cover the expansion.Experienced management teamAs well as financial resources Handyware’s human resources are also strong.
Handwares hopes to transfer its domestic success abroad through its experienced management team.WeaknessesUnfamiliarity with marketDespite Handywares domestic success, foreign markets can be very different to that of the UK and will have to be approached with caution. The four shortlisted countries are culturally, bureaucratically and economically different. Handywares will have to be careful not to make foolish assumptions when entering.No experience in exportingAs well as a lack of experience in the foreign markets Handywares also has no experience in exporting at all. This will have to lead to the induction of new staff and the training of the current managers.
Brand awarenessWhen Handywares was initially expanding in its domestic market it was able to increase brand awareness through expanding from region to region. However in their selected market they will have to start selling on a large enough basis to justify expansion and to do this they will need an awareness of their brand.OpportunitiesInternational expansion has been increasingAs we progress toward a global economy is becomes easier to enter new markets. Distribution channels already exist, trade barriers have been decreased, and financing is becoming easier to find, labour is more diverse and easier to find and language barriers are being lowered.EU integrationFurther EU development would make the Eastern Europe a much more attractive option. Hungary and Poland are tipped to join the EU by 2002 and this would lower trade barriers, encouraging foreign investment develop the economy and encourage immigration inviting even larger numbers to the urban centres.
This makes it an excellent opportunity to gain a market share before the possibility of a large influx of foreign competition.OECD membershipThe OECD is the Organisation for Economic Co-operation and Development. The OECD includes 29 member countries in an organisation that provides governments a framework within which to discuss and develop economic policy. Through the OECD international co-ordination is increased making it possible for bilateral and multilateral arrangements to run more smoothly. It is especially important for a countries such as Hungary, Poland and China who can benefit from the expertise of more experienced member countries.Long-Term Growth prospectAs we can see from the statistics* Hungary’s economic growth has been steadily increasing since 1989 and is set to increase at an alarming rate in the future. It is also in a prim position for further expansion in Eastern Europe for Handwares.
Politically StableHungary is fortunate to be the most politically stable country in eastern Europe and since the communist downfall of 1989 has developed a stable political system and economy and hopes to consolidate this with its planned EU integration.ThreatsCopyrightAlthough copyright is easily available in most foreign countries some of Handywares products are not innovative and copyright cannot be obtained for their design. Handywares must ensure a competitive advantage of some description as local undercutting could pose a problem.High profile competitors and partnershipsDespite operating in different ways Tupperware is a competitor for Handywares and some sort of market or product differentiation will need to be designed. Betterware are also currently developing a partnership with Avon and this could lead to direct competition in the area. Avon already has a large market share in the cosmetics sector in Euope and their customer base could give Betterware a head start.Company ObjectiveIt is important for Handywares to state what they want to do, by when and how. These will need to be divided into financial and marketing objectives.
To do this we will need to take into account our company resources.Marketing objectivesShort Term goalsAchieve a respectable market share in door to door homeware. No matter what market we enter whether it be a small region of Germany or a major section of China we will need to have developed a respectable market share by the end of the first year. This is true for two reasons. Firstly we are a large company and have the resources to be ambitious.
Secondly, the market that we are entering is in many cases in its infancy.Increase Handyware awarenessAs our company will be a new name in our chosen market we will have to promote our brand name. A popular way to do this is through trade shows and although this technique has not been used by Handwares in the UK it will be important to take part in these in our chosen foreign market. As we are initially concentrating on a specific region of a country we can promote through regional newspapers.
If the public are aware that catalogues will be delivered, they will notice them when they come. Once the company is set up weekly adverts informing the public of the drop off and collection dates of the catalogues will be important. The public will also not be familiar with the method of sales that Handywares operates and clear information will need to be available in the advertisements.