International Marketing Case study: Koc Hodling - Arcelik with White Goods

Essay by lovewee02 February 2007

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Question: Why has Arcelik succeeded in Turkey

Arcelik had succeeded in Turkey because of several factors:

First is governement protection of the white goods industry within Turkey. Government had restricted import goods from others Europe country by imposed tariff over it. Recently, Turkey was intend to join EU membership, Turkey had agreed on phased tariff reductions program to remove tariff over imported goods from Europe country.

In the meantime, Turkey economic was volatile. Facing recession in year 1994 and high inflation in year 1997. Consumer within Turkey had less purchasing power when the economic was bad. Besides that, Turkey's currency had drop, products and servcices become expensive even for imported goods. Arcelik with its durable and resonable price white goods successfully retain the market share.

In the other point of view, Arcelik also achieve competitive advanatge over other's brand because they developed a very comprehensive product range from the most expensive, full feature product to the least expensive product.

It was a stratery to meet all levels of customer needs and wants.

At the same time, Arcelik do not face in stiff competition in white goods industry. They had weak competitor which is Peg Profilo which acquired by Bosch-Siemens from German and Merloni. This two company failed to threatend Arcelik leader position in Trukey.

Last, Arcelik have a complete and intensive retails network within Turkey. They sold their white goods under exclusive outlets which only sell Arcelik product. They also have special dealers to provide good after service to service the customer who encounter problem after purchasing Arcelik products.

Conslusion: Arcelik can suscess because of several reason mention above.

bibliographics: wikipedia