Market analysis is an important instrument in assessing the attractiveness of a particular market, since it is utilised to decide whether to enter a foreign market in terms of international marketing strategy. It is necessary to apply a market analysis in order to determine and examine the appropriate approach to enter a market. This essay provides a scan of the Thai market attractiveness for the Danish medium-sized enterprise Red//Green, in order to recommend a market entry strategy. The first section focuses on the application of the 12C framework in order to draw up a market attractiveness profile, combined with a risk evaluation of the Thai market. The second part determines the attractiveness of the Thai market with respect to the information and relevant factors gathered from the 12C model. Interpretation of those factors will then be used to allocate a determination of a suitable market entry strategy for Red//Green. In addition, a marketing strategy according to the 4Ps will be addressed to identify opportunities and possibilities of how to develop the Thai market.
Table of Contents
1. Introduction
2. Market Profile Analysis
C – Country:
C – Concentration:
C – Culture/Consumer behaviour:
C – Choices:
C – Consumption:
C – Contractual obligations:
C – Commitment:
C – Channels:
C – Communication:
C – Capacity to pay:
C – Currency:
C – Caveats:
3. Risk Evaluation
3.1 Political Risk
3.2 Economic Risk
3.3 General Business Environment Risk
4. Thai Market Attractiveness to Red//Green
5. Market Entry Strategy Recommendation for Red//Green
5.1 Product
5.2 Price
5.3 Place
5.4 Promotion
6. Conclusion
7. References
8. Bibliographies
Objectives and Core Topics
This report aims to assess the attractiveness of the Thai market for the Danish medium-sized enterprise Red//Green to determine an optimal international market entry strategy. The work leverages the 12C framework and comprehensive risk evaluations to identify opportunities for expansion, whilst providing actionable recommendations based on the 4Ps marketing mix.
- Market attractiveness analysis using the 12C framework
- Evaluation of political, economic, and business environment risks
- Identification of growth opportunities within the Thai clothing sector
- Assessment of market entry modes and control mechanisms
- Strategic marketing recommendations tailored to local consumer preferences
Excerpt from the Book
C – Choices:
Competition between branded clothes is especially intense in the catchment area of Bangkok, where brands like Levi’s, Esprit, Hugo Boss, Lacoste, Giodarno and Louis Vuitton have been established. Branded goods are mostly sold in large malls or department stores which offer a range of different brands, hence there is a potential choice of substitute products available. The higher oil price has increased supply and transportation costs, which is passed to the consumer through higher product prices (Euromonitor, 2006). This has weakened the domestic consumption, so too has Thailand’s long-running political uncertainty, which has resulted in an import constraint; imports accounted for $107bn in 2005 (CIAFactbook, 2006). Furthermore, the Thai government has introduced a policy to save energy, as a measure to cope with the higher oil price, by cutting opening hours to 10am until 9pm, which decreases the amount of time spent on shopping. Shopping malls are targeting middle to high-income consumers with more relaxed lifestyles and a strong sense of family. The Thai consumer is also getting more sophisticated about shopping. Outdoor market places are a crucial issue regarding the competitive environment, because a considerable amount of goods will be copied and sold at those markets for consumers with a low disposable income.
Summary of Chapters
1. Introduction: Outlines the purpose of the report, which is to conduct a market scan and risk evaluation of Thailand to recommend a strategy for Red//Green.
2. Market Profile Analysis: Utilizes the 12C model to evaluate factors such as geography, culture, consumption habits, and regulatory frameworks within Thailand.
3. Risk Evaluation: Examines political, economic, and business environment risks to provide a holistic view of the operational challenges in the Thai market.
4. Thai Market Attractiveness to Red//Green: Synthesizes the preceding analysis to argue why Thailand presents a viable opportunity for expansion despite inherent market challenges.
5. Market Entry Strategy Recommendation for Red//Green: Proposes a franchising-based entry strategy and outlines adjustments for the 4Ps (Product, Price, Place, Promotion).
6. Conclusion: Summarizes the findings and suggests that franchising is the most appropriate approach for the current needs of the company.
Keywords
International Marketing Strategy, Market Entry, Thailand, 12C Framework, Risk Evaluation, Franchising, Red//Green, Market Attractiveness, Consumer Behaviour, Product Adaptation, Economic Growth, Retail, Marketing Mix, Strategic Planning, Foreign Investment.
Frequently Asked Questions
What is the primary focus of this report?
The report focuses on evaluating the viability of the Thai market for the Danish firm Red//Green and provides a strategic recommendation for market entry.
What are the central thematic areas?
The study covers macro- and micro-environmental market analysis, risk assessment (political, economic, and business), and strategic marketing adaptation.
What is the main objective or research question?
The goal is to determine the attractiveness of the Thai market and define the most suitable market entry strategy for Red//Green using established marketing frameworks.
Which scientific method is utilized?
The report employs the 12C framework for comprehensive market profiling and combines it with risk rating models to substantiate strategic decisions.
What does the main body of the report cover?
The main body details the environmental scan of Thailand, evaluates potential risks, justifies the market's attractiveness, and develops a specific strategy including the 4Ps.
Which keywords define this report?
Key terms include International Marketing Strategy, Market Entry, 12C Framework, Risk Evaluation, and Franchising.
Why is franchising recommended specifically for Red//Green?
Franchising is recommended because it balances local knowledge acquisition with control, enabling the firm to adapt to Thai consumer trends while minimizing certain risks.
How does the report handle the political instability in Thailand?
The report acknowledges political instability as a factor in the risk evaluation but concludes that the long-term economic prospects still render the market attractive for expansion.
- Quote paper
- MSc International Marketing Strategy Benjamin Bach (Author), 2006, International marketing entry strategy for the Red//Green Company, Munich, GRIN Verlag, https://www.hausarbeiten.de/document/76929
