A report on consideration of selling the products in the foreign marketHere we are considering of exporting the products of Quality Kraft Carpets ltd (QKC) in the foreign market. In this case we should consider in few factors which will affect the company's success in the foreign markets. I think the company should hire local representatives to sell its products making 1-2 years short term contracts. As the company is small and flexible it can make various of sized and patterned carpets according to its USA competitors products research and consumers demand. Here are the list of actions the company can do.
1.As the product is high quality the sales representatives can approach to the high profile customers like hotels, offices etc.
2.If the short term contract was successful it should consider widening its export in the USA market or to open its own retailing and subsidiary. USA is a big and very competitive market and the brands are operated very local based.
It means brands and products used are even different in the west and east coast or in different states consumers.
The QKC is a relatively new company in the UK market trying to compete in manufacturing good-quality Axminister carpets. Despite the company is new in the market, the company's effective and successful effort made them to produce good reputation and success in its short period of history.
The company's marketing communications could be the followings:Ã¢ÂÂ¢AdvertisingÃ¢ÂÂ¢Direct marketingÃ¢ÂÂ¢Personal sellingÃ¢ÂÂ¢Sales promotion (Local carpet or related exhibitions)Ã¢ÂÂ¢Public relationsHere the company can use "pull" sales promotion strategy. It can give away the sample of the products to the potential customers.
The method of communications can be direct mailing to the potential customers, advertising on local media, referencing back in UK's reputation, samples etc.
3.The products from Quality Kraft Carpets specialised in well known Axminister carpets which is traditional, woven and has a good quality.
According to the market research conducted in the USA that its interior designers like using Axminster carpets. Keeping this in mind I would recommend that the company's first approach could be to the interior designing companies or local carpet retailers with their own carpet fitters.
Should advertise its products as an, exclusive carpets from British manufacturer, because UK has a high reputation in the USA for quality carpets.
Once you made your reputation in the USA market it should be easier to enter other big markets like Japan or other EU countries. But I doubt in competing in the Middle East market. I believe that there are many strong competitors in the Middle East carpet market, but you can try it some wealthy areas like Dubai, in small margin. Local building contractor might be your customers.
4.You could make other researches like competitive analyses, pricing, and segmentation.
1.Competitive analyses you could carry out researches inÃ¢ÂÂ¢Competitive Intelligence (Competitive intelligence is the gathering of all types of hard data on a competitor from both published and unpublished sources.)Ã¢ÂÂ¢Market perceptions of competitors. (Market perception competitive studies are usually done to ascertain the competition's strengths and weaknesses with regard to the consumer's desire to do business with them.)2.PricingÃ¢ÂÂ¢Comparative Worth Analyses (Comparative worth analyses work on the premise that if you know the value of an existing competitor's products or services, and you can measure the approximate difference in perceived worth between that competitor's product desirability and your own, then you can establish a relative price position that should be stable over some period of time.)Ã¢ÂÂ¢Part-Worth Modelling (Part-Worth models use regression to identify individual features that add to the sense of product value.)Ã¢ÂÂ¢Conjoint Analysis (Conjoint analyses produce several types of information. First, they tell us what features (and levels of features) are most valued by the customers. Second, they allow us to model how likely people will be to purchase various configurations of products, the share of revenue that the product most likely will receive and what role price plays in the assessment of acceptability.)3. Segmentation (Identify potential target customer groups in the USA market)ComparisionUK and USA markets are relatively similar in terms of the consumer behaviour. It means the consumers of the both markets have their loyalty into a good and high quality brand products.
In the graph below shows the company's sales growth during its time till 2006 since it opened. Its average sale in a year is ÃÂ£1,764,000 and is reached just after 5 years of its start and never gone down but stayed by average of ÃÂ£347,000 higher than its average sales. It means the company can be successful in the US market showing similar graph in the UK, but with a bigger margins.
Quality Kraft Carpets Ltd sales (ÃÂ£000)Year1991199219931994199519961997199819992000200120022003200420052006Sales5006408201,2801,7602,3002,9002,1002,0001,9701,9501,9601,9902,0101,9502,100The graph below shows its product sales through contract and retailer. It says the sales are grown constantly by contract. So its also positive side that the QKC can sale its product through contract in the USA market.
ConclusionsThe Quality Kraft Carpets products will be successful in the USA market and I would support this decision. Because the key success in the United States is distribution., many companies set up their own company to run their distribution network You can appoint regional managers for various areas of the United States (anywhere from 2-12 regional managers is common). These regional managers would be responsible for appointing distributors and representatives in major cities in their region. You could end up with more than hundred distributors countrywide and these distributor accounts would be handled by your regional managers.
RecommendationI suggest that the company should give further consideration to widening its awareness in the other big markets making other type of carpets representing British culture in the area.
ReferencesJohn, W., 2004. The Marketing Plan A Step-by-Step Guide. 3rd ed.
Derby, Saxon Graphics LtdGeoff. L., & Paul. R., 2002. Marketing Made SimpleSouthampton, Elle and P.K. McBridehttp://www.speedback.com/types_of_research.htm