Course Code

Market Entry Modes

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Date

Market Entry Modes 1

Table of Contents

Executive Summary.......................................................................................................................................2

Introduction:...................................................................................................................................................4

Product:..........................................................................................................................................................5

Relative Advantage....................................................................................................................................5

Compatibility:............................................................................................................................................5

Complexity:................................................................................................................................................6

Major Problems:.........................................................................................................................................6

The Market:....................................................................................................................................................7

Geographical Location:..............................................................................................................................7

Transportation and communication:..........................................................................................................7

Consumer Buying Habits:..........................................................................................................................8

Product use patterns:..............................................................................................................................8

Product feature preference:....................................................................................................................8

Shopping habits:.....................................................................................................................................8

Distribution of the product:........................................................................................................................9

Typical retail outlets:.............................................................................................................................9

Product sales by middle men:................................................................................................................9

Advertising and Promotion:.....................................................................................................................10

Promotions:..........................................................................................................................................10

Pricing strategy, customary mark-ups:....................................................................................................10

Types of discounts:..............................................................................................................................11

Competition’s products:...........................................................................................................................11

Price:........................................................................................................................................................12

Competitor’s promotion:..........................................................................................................................12

Distribution channels:..............................................................................................................................12

Market size:..............................................................................................................................................12

Estimated Sale:.........................................................................................................................................13

Government participation:.......................................................................................................................13

References....................................................................................................................................................15

Market Entry Modes 2

Executive Summary

England is a home to buyers and its market is distinguished all over the world. To start a new

brand in the U.K market is not an easy nut to chew. But keeping in mind the progress and

performance of the Denim Wears, the company decided to launch a shoe brand with the name

CoolWalk. Thus, the CoolWalk will commence its new brand for its valued customers to give

them care and comfort as they had been receiving at Denim Wears. The CoolWalk would be

compatible with all the other brands and the complexity of the company would also be managed

effectively. There could be certain problems in the start of launching the brand like government

regulations or the competitors’ attitude, yet the Denim Wears knows all the pros and cons of the

issues in the market and can easily handle all the affairs of the market proficiently. The target

market would be the UK, keeping in mind the location of the outlet and the transportation and

communication resources for the compliance of the products to the outlets for the valued

customers. The market dwells in a number of buyers who usually visit the U.K market for its

qualitative products. Innovation in styles along with change with the changing trend will be the

punching point for the CoolWalk. Targeting the women, the CoolWalk will take care of all the

genders. The CoolWalk will keep itself aware of all the fashion and the trends in the area as well

as around the globe. The distribution of the products would be dealt efficiently and it would be

made possible that no outlet suffers shortage of variety of any product. Other than that the sale

and purchase through the middle man would also be providing the CoolWalk a step ahead as

compared to other competitors in the market. The CoolWalk will majorly focus on its advertising

campaign. The advertisement always plays a key role in the uplift of a business. All the

available resources of advertising would be taken into consideration by the CoolWalk. The

Market Entry Modes 3

products of the other brands would also be kept in mind and the CoolWalk will try to enhance its

products as compared to other brands. The CoolWalk will also adhere to the government policies

and all the rules and regulations will be obeyed. The CoolWalk, a neonate in the market, taking

inspiration from the Denim Wears has planned to step into the shoe market and give its

customers quality products.

Market Entry Modes 4

Introduction:

According to Foley (1999), for the progress of a company in Britain, the company has to be

efficient with respect to all the terms involved in the marketing business. For this Denim wears,

the clothing company has been progressing in the United Kingdom. The needs of the people have

changed and as per the requirements of the people Denim wears has been travelling according to

the needs and wishes of the people. That is why, it has seen a rapid progress not only in the

marketing ethics but also in the economic related issues. Denim wears, the clothing company

was established back in 1990 and since then it has been rising with its product strength and

consumer feedback. In U.K, the consumers are very much satisfied with the products of Denim

wears and also enjoy the innovative trends it launches quite often. It deals in clothes for all

genders and of all ages. It has been expanding and has opened various outlets throughout U.K

which evidently proves the growth of the company. Denim wears believes in quality products

and the prices are adjusted according to the range of the buyers. It tries its best to make its

customers proud of it and tries to give the customers its best so that they keep on visiting the

Denim wears.

Keeping in view the progress and feedback of Denim wears, the management of the company

has decided to launch shoe brand with the name of CoolWalk. Denim wears is confident in

launching the new product and is hoping to get good response of the customers. The customers

will not let the Denim wears down and the Denim wears will also not let the customers feel

embarrassed after choosing CoolWalk as their prime choice.

Market Entry Modes 5

Product:

Relative Advantage

Denim wears has launched its new product CoolWalk with an intention to grow in the market.

CoolWalk itself will bring an innovation in the market. It will be focusing on all the genders

specially women. As the CoolWalk thinks that women are more into fashion and the changing

trends in U.K than men. Thus the CoolWalk has an ambition of giving the customers the product

of their own choice. This does not mean that the kids and the men will not be given due quality.

In 2003, Reynold proposed that the companies should keep all the valued customers in equal

standards. Therefore, CoolWalk will produce a comfortable product for its customers which

would be more advantageous for them as compared to other brands in the market. The styles and

standards of the brand will be comfortable, attractive and the customers would be contented.

Compatibility:

In 2003, Reynold said that the products should focus on competing the other brands but not at the

cost of any unfair means and problems and conflicts. Therefore, the CoolWalk footwear would

be compatible with all the other brands. It will exist along with the other brands. The

compatibility in the current market will be the issue in the long run. As the CoolWalk is

foreseeing a strategy to compete all the brands present in the market. And in this case it is quite

probable that other competitors will go hard on CoolWalk.

Market Entry Modes 6

Complexity:

CoolWalk footwear will be another brand of the Denim wears. For that reason, CoolWalk will be

having a number of stakeholders as well as organizational structures. It will focus on its

stakeholders and will work efficiently to manage any complexities if there be.

Major Problems:

The Denim Wears has a strong standing in the market and this will benefit the CoolWalk. There

can be problems and resistances to the acceptance of the product in the market. In 1999, Yadong

highlighted some of the problems and resistances which a company can fac during launching a

new product. These include:

Other footwear brands have a long standing in the market.

Huge advertising campaign would be needed for the good start of the CoolWalk.

Permission of the government policies and legislation in this regard would be needed.

The price value will have to be made accommodative for the public to choose the

CoolWalk brand as their first choice.

The launching time and the launching area will decide the fate of the CoolWalk.

Market Entry Modes 7

The Market:

The Denim Wears after a detailed study of the market has thought to launch the new brand

CoolWalk. The market has got a huge potential in this regard. As per Zimmerer and Scarborough

(2008), there is a lot of sale and purchase capacity in the UK market. That is why this new brand

of shoe wear has been launched. Following are the main reasons why the Denim Wears has

launched Cool Walk in the market.

Geographical Location:

According to Mcdonald, Burton and Dowling (2002), the situation of the market itself is the

main reason to launch any new product. The market area is surrounded by the large number of

population. The market is open 24/7 and the number of visitors to the market seldom decreases.

It’s a very famous place in U.K so not only the people of the vicinity would be coming to the

new brand but also the tourists and the outsiders would also be attracted to CoolWalk.

Transportation and communication:

The market which has been focused by the CoolWalk is an infrastructural developed place. The

means of communication and transports are all time available in the market. Other than that the

company has also its own resources to send the products in other outlets in the vicinity as well as

at out-stations.

Market Entry Modes 8

Consumer Buying Habits:

Keeping in view the buying habits of the customers, CoolWalk has chosen the market. The

consumers here are always in need of new trends in shoes along with comfortability. The

CoolWalk is ready to give the customers both comfortability and innovation at its outlets. Other

than that this area is relatively hotter than the other parts of U.K. so CoolWalk has planned to

offer some summer collections which would not be available at their shoe stores and this strategy

would help CoolWalk to attract a large number of customers.

Product use patterns:

According to Root and Franklin (1994), mostly high heels and ankle boots are worn by women

and men mostly wear formal shoes along with sneakers in UK market. Keeping in view the

target trends, CoolWalk will majorly focus on these types of shoes and the other categories

would be given due share in the outlet.

Product feature preference:

The products CoolWalk would be launching in the market would be meant majorly for women.

The market always abounds with families especially women. So the products would be more

specifically for women. This does not mean that products for men would not be available. There

would be the availability of the products for men but only in counted shelves.

Shopping habits:

In 2003, McKern argued that the shopping habits in the UK market keep changing with the

changing trends. Thus, the CoolWalk will focus on the shopping habits of the customers and the

Market Entry Modes 9

customers will feel like the outlet is moving according to their minds. The families come in the

market not for the sake of window shopping. In fact this market is famous for genuine buyers.

Thus the CoolWalk keeping all the experiences of the market in mind will try to give the

customers according to their habits.

Distribution of the product:

The product will be launched with all the planning beforehand. The distribution of the product

would be managed according to the needs of the other markets. There would be two outsourcing

departments.

Typical retail outlets:

The distribution to the typical retail outlets would be done through the vehicles owned by the company

and as per the demands of the outlets. The retail outlets need a large supply on a daily basis and to

manage the supply chain the productivity would be increased as the demand increased. The typical retail

outlets will never be allowed to fall short of the stock.

Product sales by middle men:

The company will also be focusing on the sale of the products through middlemen because in the

far distant places where the consumption is not high, a retail outlet does not give good profits.

Thus middlemen would be hired for the sale of the CoolWalk products. If there arose any need as

per the sales ratio, then outlets would be opened in far distant places.

Market Entry Modes 10

Advertising and Promotion:

For the promotion of the new brand, all the possible promotional stunts would be used. As per

the research conducted by Walter and Murray (1988), the most effective media campaign is

through the banners. A large number of banners with pictures of different products would be

advertised all along the market to advertise CoolWalk. Other than that, signboards with attractive

lights would be hired for advertising. For the outer reach of the product, fashion magazines and

other pamphlets would also be used for advertising the new trends in shoes. For advertising,

fashion shows and catwalks would be arranged by the company to tell the other competitors in

the town the art of advertisement.

Promotions:

The promotions would also be launched in the retail outlets to attract the customers. Other than

that, the sample items would also be floated into the area for the promotional campaign of the

product. These inhibits would be done for the promotion of the brand in the market. In 2009, Hitt

revealed that the brand always need some time to set for its grounds in the market. Therefore,

gifts would be allocated for the valued customers as well as for the kids on buying the products

from the retail outlets. Weekly or monthly in-house promotional shows would be planned to

attract the customers.

Pricing strategy, customary mark-ups:

The price of the products would be fixed but would not be more than the prices of the other

similar products floating in the market by other brands. The prices would be suitable to the

customers. And the customers will prefer to buy the quality products in lesser price at the

Market Entry Modes 11

CoolWalk outlets. Robin and Gillies (1996) conducted a research in which they proposed that the

incentive systems played a vital role in retaining the customers. Therefore, the valued customers

would be given incentives such as buying two pairs of shoes will lessen the price of the second

shoe to half its original price.

Types of discounts:

Sherman (2004) proposed that customer care cards should be issued for a new product in order to

attract customers towards the product. Therefore, customer care cards would be issued which

will not only take care of the products in the future but will also help the customers to come

again to the outlet. The customers with the customer care cards would be given discounts. Other

than that, some shelves would be reserved for the older products and those shelves would be

given special discounts.

Competition’s products:

The CoolWalk has stepped into the market with a wish to flourish and progress in the field of the

shoe market. The real competition in the market is Lotus, a shoe brand. Lotus has been working

in the market since long and has a respectable reputation in the shoe industry. The lotus also

deals in women and men shoes, giving priority to women's products. The lotus has a variety of

products including high heels, heels, boots, sneakers, sandals, sports shoes and party shoes. The

main product of the Lotus is its high heels which always grab the customers.

The Lotus features comfortability along with affordability. This feature of the Lotus has always

given it higher ranks in the market. Other than that the Lotus also gives a good deal of prices to

the customers. At times the Lotus is expensive but overall it always gives good price tags.

Market Entry Modes 12

Price:

The Lotus is famous for its price tags. Its items are within the range of £50.00 to £100.00.

Though at times, the products feel expensive yet the products get the attention of the customers.

Competitor’s promotion:

The Lotus uses every available source of advertisement. From banners to signboards and from

magazines to newspapers are used by the Lotus. Gloomy lights are also used by the Lotus for

the attraction of the customers. Other than that the Lotus also uses internet and television for

their advertisements.

Distribution channels:

The Lotus distributes its products all over England, as it has spread its branches all over England.

For this, trucks are used by the Lotus for the transport of their products to different cities in

England. And mini trucks are used for the transportation of the products within the city.

Market size:

According to Bartett (2009), the market of the shoe industry is too huge to be gauged by its sales

ratio. There is a lot of potential of selling and buying in the market. The use of new trends in

shoes is very much liked in the market. Due to higher sales ratio of the shoe products, a number

of shoe brands have been planning to open up in the market. This will create an atmosphere of

tough competition (Bartett, 2009). Apart from that, the market is the hub of shoe lovers. In this

Market Entry Modes 13

market, the shoe style changes almost every day. Thus due to such a rapid innovation in the shoe

styles, there is a lot of potential in this market.

Estimated Sale:

In 2004, Sherman concluded that the estimated UK shoe industry sale for a planning year is

about £25.00 billion. This figures will keep on fluctuating during the year as the demands of the

customers keep on changing. This estimated rate is dependent on the changing trends in the

market. If there are rapidly changing trends, then the sales ratio would be higher. The estimated

industry sale of the CoolWalk for the planning year is set for £25.00 million. In this estimate, the

retail outlets contribute about 80% while the remaining is estimated for the vendors and

middlemen. Every year U.K consumers spend almost £20.00 billion on footwear (Sherman,

2004).

Government participation:

In 1999, Burton et. al said that the role of government in any business cannot be neglected. The

government always helps a lending hand in the business. The marketplace is always assigned by

the government. Consumer protection is always the job of the government. In this regard the

government always issues certain order which keeps the health of the consumers ensured. The

government regulates some laws for the free and fair regulation of the information regarding the

product is surged in the market. Consumer protection laws are there in the market representing

government (Burton, et. al, 1999). In 2003, Hoy and Stanworth further revealed that this not

only helps the consumers to make better choices but also helps the government in collecting the

complaints from the consumers. Consumer organizations, tax commissions, trade commissions,

Market Entry Modes 14

ombudsmen are present in the market for the coordination of the market with the government.

All these organizations lend a helping hand to the government which as a result promotes

consumer protection. Other than that law of competition in the market also helps the government

participation in terms of law of the market (Hoy & Stanworth, 2003).

The CoolWalk will follow all the regulations of the government as according to the rule of law

as well as according to the rule of the market. The CoolWalk will abide by all the rules and

regulations. It will take care of the customer’s health. And quality in the product would be

company’s top priority. Besides, CoolWalk will also create a healthy environment of competition

in the market. The CoolWalk will not go against the laws of nature and laws of government. The

consumers and the customers would be appreciated at all levels.

Market Entry Modes 15

References

Bartett, C.A. (2009), Transnational Management: Text, Cases and Readings in Cross Border

Management. 5th Ed., McGraw-Hill Higher Education, ISBN 978-0-07-310172-9

Burton, Fred; Chapman, Malcolm; Cross, Adam (1999), International Business Organization,

Academy of International Business, ISBN 0-312-22371-4

Foley, J. (1999), The Global Entrepreneur: taking your business international Age, Dearborn,

ISBN 1-57410-124-2

Hitt, A. (2009), Strategic Management Competitiveness and Globalization, Nelson Education

Ltd, ISBN 0-17-650006-5

Hoy, F.; Stanworth, J. (2003), Franchising: an international perspective, Routledge, ISBN 978-0-

415-28419-6

McDonald, F.; Burton, F.; Dowling, P. (2002), International Business, Cengage Learning

EMEA, ISBN 978-1-86152-452-2

McKern, Bruce (2003), Managing the Global Network Corporation, London: Routledge

Reynolds, F. (2003), Managing Exports: navigating the complex rules, controls, barriers, and

laws Age, John Wiley & Sons, Inc., ISBN 0-471-22173-2

Robin, J.; Gillies, G. L. (1996), Global business strategy, Cengage Learning EMEA, ISBN 978-

1-86152-352-5

Root, Franklin R. (1994), Entry Strategies for International markets, John Wiley & Sons, Inc.,

ISBN 0-7879-4571-4

Sherman, A. J. (2004), Franchising & licensing: two powerful ways to grow your business in any

economy, AMACOM Div American Mgmt Assn, ISBN 978-0-8144-7222-4

Market Entry Modes 16

Walter, I.; Murray, T. (1988), Handbook of international management, John Wiley and Sons,

ISBN 978-0-471-60674-1

Yadong, L. (1999), Entry and Cooperative Strategies in International Business Expansion Age,

Greenwood Publishing Group, ISBN 978-1-56720-161-1

Zimmerer, T. W.; Scarborough, N. M. (2008), Essentials of Entrepreneurship and Small

Business Management, New Jersey: Pearson Prentice Hall, ISBN 978-0-13-727298-3