Globalization of business due to growing trade policy liberalization, stability in monetary transactions, regional economic integration, convergence of customer preferences, and technological advances have witnessed in the recent decades (Katsikeas, Samiee, and Theodosiou, 2006). Exporting comprises an attractive foreign market entry and expansion approach for firm, especially those of small and medium size. Moreover, export market expansion has become more a matter of endurance than choice for many firms that face challenging economic conditions (O’Cass and Julian 2003). Children R Us is a small company of Bangladesh. Moreover, it manufactures baby strollers, which are made of foldable aluminum frame, four wheels, and a length of canvas. Furthermore, it is necessary for the Children R Us to find out the direct export sales potential for its baby strollers by considering market selection, market entry, marketing communication, price, physical distribution. In this paper, the relevant literature and the application of literature are presented in case of taking baby stroller of Children R Us to the market of England. In the first part of this essay, the market selection will present that how Children R Us is going to select England for its baby strollers. Later, the second part will discuss which market entry mode Children R Us is going to select for entering into the England. Then, the third part will discuss two marketing communication methods which will be appropriate for the Children R Us. Moreover, the fourth part will discuss how Children R Us is going to finance its business to keep it solvent. Finally, it will discuss the benefits, changes of Incoterms 2010 and describe one of the Incoterms in details which facilitate the physical distribution.
Table of Contents
1. Introduction
2. Market Selection:
3. Export market entry options:
4. Export market communications:
5. Price:
6. Physical Distribution:
7. Conclusion:
8. Appendix 1
9. Reference list
10. Bibliography
Research Objectives and Topics
The primary objective of this assignment is to evaluate the direct export sales potential for the baby strollers manufactured by the Bangladeshi company 'Children R Us' when entering the English market. The analysis examines strategic considerations across various marketing and operational dimensions to ensure a successful entry.
- Proactive vs. reactive market selection strategies for small enterprises.
- Evaluation of direct export entry modes, specifically the build-in export organization.
- Development of effective international marketing communication and branding strategies.
- Financial risk management through the utilization of confirmed irrevocable letters of credit.
- Optimization of physical distribution through the application of Incoterms 2010.
Excerpt from the Book
1)Market Selection:
There are two kinds of process in a market selection process (proactive and reactive) which analyze how companies move into exporting and international marketing. According to albaum et al (2008, p.188), “A reactive approach characterizes a situation where the exporter acts passively in selecting a market by filling an unsolicited order or awaiting the initiatives of foreign buyers, importers, agents and others who indirectly select the market for the firm.”Therefore, this type of selection process is informal, unsystematic and purchase oriented. On the other hand, Proactive process is more market oriented. The exporter is more active in initiating the selection of foreign markets and the further customer segmentation of them. This process is thus a more formal and systematic one (Albaum et al., 2008).
Two distinct procedures (expensive or contractible methods) for screening export markets are used in case of implementing a proactive or reactive process. (Tomes & Philips, 2003). Albaum et al ( 2008, p.190) mentioned about the expensive methods ,“market selection over time is based upon similarities between the national market structures of a political, social, economic, or cultural nature, so that the export marketer expands from one market to the next, introducing a minimum of further adaptation to the product as well as other export marketing parameters.”This expensive method is an experienced based market selection.
Summary of Chapters
1. Introduction: This chapter provides an overview of the global business environment and introduces the company Children R Us, outlining the scope of the study regarding its potential export to England.
2. Market Selection: This chapter explores the theoretical frameworks for market selection, arguing for a proactive approach and justifying the choice of England based on birth rate statistics and competitor analysis.
3. Export market entry options: This chapter reviews various direct export modes and selects the build-in export organization as the most suitable initial strategy for the company.
4. Export market communications: This chapter discusses branding and promotional strategies, emphasizing the importance of adapting communications to the English market.
5. Price: This chapter touches on financial requirements and the necessity of managing cash flow through appropriate payment methods.
6. Physical Distribution: This chapter examines the role of Incoterms 2010 in managing logistics and risks associated with shipping goods overseas.
7. Conclusion: This chapter synthesizes the proposed strategies for Children R Us, confirming the viability of their export plan under the outlined conditions.
Keywords
Export Marketing, Children R Us, Market Selection, Proactive Approach, Direct Export, Build-in Export Organization, England, Marketing Communication, Promotional Message, Letter of Credit, Physical Distribution, Incoterms 2010, Baby Strollers, International Trade, Market Entry
Frequently Asked Questions
What is the core purpose of this academic assignment?
The work examines the direct export sales potential for a specific Bangladeshi baby stroller manufacturer, Children R Us, as it attempts to enter the market in England.
Which dimensions of marketing are covered in the analysis?
The document covers five key areas: market selection, market entry, marketing communications, pricing strategies, and physical distribution.
What is the primary research goal?
The goal is to determine the most effective strategic approach for a small firm to enter a developed foreign market with minimal initial financial risk.
Which scientific methodology is applied?
The report utilizes a literature-based research methodology, applying established international marketing theories and export management frameworks to the specific case of Children R Us.
What content is addressed in the main body of the text?
The main body systematically applies theoretical concepts to the company's situation, including an analysis of fertility rates in England, entry mode selection, promotional planning, and the use of letters of credit and Incoterms.
What are the primary keywords associated with this research?
Key terms include Export Marketing, Market Selection, Direct Export, International Trade, and Incoterms 2010.
Why did the author recommend the 'build-in' export organization for this company?
It is recommended because the company is small, new to export marketing, and possesses limited financial resources, making this structure flexible and economical.
How does the company plan to mitigate financial risk in international transactions?
The company plans to use a confirmed irrevocable letter of credit to ensure payment security after shipping goods and providing the necessary documentation.
What role do Incoterms play in this distribution strategy?
Incoterms 2010 provide a standardized set of rules for the company to manage risk, costs, and responsibilities during the physical movement of the strollers from Bangladesh to England.
- Quote paper
- PhD Candidate, MBA, BBA Md. Rajibul Hasan (Author), 2011, Export Marketing , Munich, GRIN Verlag, https://www.hausarbeiten.de/document/208272
