The Hess AG (further called Hess) is a medium-sized company, located in Villingen-Schwenningen, Germany. It was founded in 1948 with only eight employees by Willi Hess as a small metal foundry. Throughout the years the company has grown continuously and began producing street lighting in the seventies. In cooperation with architects and industrial designers the company oriented toward creation and production of sophisticated lighting concepts and developed to one of the world’s leading manufacturers of decorative and architectural street and outdoor lighting. Hess makes his mark with outperforming technological and sustainable products and reference projects like the lighting concept of the Olympia Park in Beijing (Hess AG, 2010a).
Following Hess’ growth and expansion strategy (Hess, 2010) this paper is going to analyse the Hess company internationalising into another country market. Possible markets will be detected and evaluated. Moreover, an appropriate entry method and a marketing strategy to penetrate the chosen market will be developed.
... (part of conclusion):
To meet drivers of internationalisation such as economies of scale, managerial urge and high demand of innovative and sustainable lighting solutions, Hess as a German elite global market leader should enter Australia as a further step of growth. With its technological competences to produce sustainable high quality products and a strong brand it can compete and deal with the industry forces on the Australian market. However, Australia entails differences to the German market. A detailed evaluation of entry methods resulted in the establishment of a region centre including a marketing department as the most reasonable solution. The mutual exchange of experiences enables sales forces and marketers on the spot to position and penetrate the market effectively.
Table of Contents
1 Introduction
1.1 Hess – facts and figures
1.2 Hess going global
2 Choosing the right country
3 Entering Australia
3.1 A country profile
3.2 Choosing the entry mode
4 Penetrating Australia – the marketing plan
4.1 Segmenting the market
4.2 Positioning
4.3 Implementation and budgeting
5 Conclusion
Objectives & Core Themes
This work aims to develop a comprehensive market entry and international marketing plan for the German B2B company Hess AG to facilitate its expansion into the Australian lighting market. The research evaluates potential target markets based on strategic fit and psychic distance before designing a tailored entry mode and operational marketing strategy to achieve defined business objectives.
- Strategic analysis of international market potential using CAGE and Porter’s Five-Forces frameworks.
- Evaluation of optimal market entry modes for industrial expansion.
- Market segmentation and targeting strategies for B2B lighting solutions.
- Development of a marketing mix tailored to the Australian business environment.
- Financial planning, budgeting, and performance measurement for the first year of operation.
Excerpt from the Book
3 Entering Australia
Every business has to deal with the environment it is confronted with. After having analyzed and evaluated the micro-environment by taking the competitive forces of the lighting industry into account, Hess, entering Australia, still has to deal with external factors that cannot be influenced and are uncontrollable for the company (Business Dictionary, 2010). These factors are very complex and dynamic and it is hard to capture them. On markets far from the home market it is even more difficult, because very often the general knowledge of managers doesn’t cover every important factor. From knowledge concerning the macro-environment a very important competitive advantage can develop, because the company can adapt their structure and strategy before an environmental change happens. The PESTLE framework is a common tool that categorises the macro-environment (Oxford University Press, 2007) and reveals important political, economical, social, technological, legal and ecological factors (Johnson, Scholes and Whittington, 2008, pp. 55-56).
Chapter Summary
1 Introduction: Provides an overview of Hess AG as a medium-sized manufacturer of outdoor lighting and introduces the company's ambition to pursue international growth strategies.
2 Choosing the right country: Evaluates potential international markets using the CAGE framework to identify countries with the lowest psychic distance to Germany, ultimately focusing on Australia.
3 Entering Australia: Analyzes the Australian business environment via PESTLE and outlines the rationale for establishing a regional center as the preferred hierarchical market entry mode.
4 Penetrating Australia – the marketing plan: Details the segmentation, positioning, and implementation strategies, including a comprehensive budget for the first year of operation.
5 Conclusion: Summarizes the strategic recommendation for Hess AG to enter Australia through a dedicated regional center and confirms the feasibility of the outlined marketing objectives.
Keywords
International Marketing, Hess AG, Market Entry, Australia, B2B, Lighting Industry, CAGE Framework, PESTLE Analysis, Marketing Mix, Strategic Planning, Foreign Direct Investment, Market Segmentation, Positioning, Business Strategy, Regional Center
Frequently Asked Questions
What is the primary focus of this work?
The work provides a structured analysis and international marketing plan for introducing Hess AG's B2B outdoor lighting solutions into the Australian market.
What are the central themes of the document?
Key themes include internationalization strategy, market environmental analysis, competitive structure, and the operational planning of marketing activities for a new geographic market.
What is the core objective of the research?
The objective is to produce a rigorous analysis for market entry and a concrete marketing plan that ensures the successful penetration of the Australian market.
Which research methodologies are employed?
The study utilizes standard academic frameworks such as CAGE (for cultural/administrative distance), PESTLE (for macro-environmental analysis), Porter’s Five-Forces, and SWOT/TOWS analysis for strategic formulation.
What topics are covered in the main section?
The main section covers country selection criteria, the choice of entry mode (establishing a region center), market segmentation strategies, and detailed financial budgeting for the first year.
Which keywords best characterize this work?
The work is characterized by terms such as International Marketing, Market Entry, B2B, Australia, and Strategic Planning.
Why was the "Region Center" selected as the entry mode?
The region center allows for high control over operations and direct adaptation of marketing strategies, which helps mitigate risks associated with entering a new, complex market.
How does the author propose to measure the success of the entry?
The plan defines SMART objectives including revenue targets, the acquisition of reference projects, and the establishment of personal contacts with key architects and governmental entities.
- Arbeit zitieren
- Benjamin Buchwald (Autor:in), 2011, Internationalisation of the Hess AG, München, GRIN Verlag, https://www.hausarbeiten.de/document/174224
