Emhart business
The possibility of the lock business of Emhart to succeed in line with the power tool and land home improvement of B & B is very slim in the international market place in as much as it is offering a new line of product. Different products take different approaches in the international market. Consequently, there in the need to map out another strategies for the marketing of the new lock and associated hard wares.
In as much as Grunewald’s proposal for Emhart business tool is on a global out look, should be given all the necessary approach although not in the same marketing plan and strategy with B & D due to the fact that the products offer vary from one company’s brand name to another. The issue is that, the buyer in foreign markets should are aware of product’s quality and durability before they place orders. In as much as B & D has different product lines and brand names, it is not possible to sell Emhart product in those market proportionately.
It will take time to penetrate the overseas markets. B & D has performed very well using the three key factors which include “strategies, managerial and operational activities” “Black & Decker operationalised its global approach to the identification and development of world products through a process of strategic managerial and operational activities (integrative cases page 655). Consequently, Grunewald should follow these three plans although not in the same approach but on a similar platform due to the fact that his line of products is different from that of B & D with a new brand name.
The three plans (strategies, managerial and operational activities) was applied by B & D in the identification and development of world cleans products. So the words to note are, “identification” “development” and a “world clans products. So the first strategy to apply is the product “identification”. He has identified the “locks and lock sets” handled by Emhart corporation which he wanted to integrate to a world class company in the marketing of her land wares. The big question is, how he knew that the hard ware will be marketable in the overseas countries amidst stiff competition?.
What strategies is he going to apply in order to determine the penetration of his line of product in those markets abroad?. The strategies to be carried out is the identification of a new product. In order words, his product is new in the foreign market. To begin, there is the need to carry out a market research on the products in order to find out the list of countries that have the highest import rate of kitchen hard waves, the exporting countries to those overseas countries on his research list. He must find out the prices they offer, quality, specifications delivery, etc.
He must get this data first and based on these findings, he can map out his strategies. He has two options to take either to sets up a production until in those countries or exporting it directly. Although establishing a production unit is more economical in order to reduce cost of about 50% percent. He should also considered the individual government rules and regulation in those foreign countries as regards exports/import activities and in setting up production unit. In either ways he chooses, he should map out his strategies that will enable him complete with other foreign suppliers in those foreign countries.
He should get samples of the products that are being supplied to those countries to see if he can make a change, modify, making it keeper than others etc. This is the most important aspect of his marketing strategy. He should do every thing possible to make his line of products more economically be attracted to customers in those countries. This is the first step he should do. He should also put into consideration using the “4 Ps” which include product, promotion, place and price. In marketing strategic, the product should be considered first and then the quality, in order to satisfy the buyer.
As regards your place of businessm You should appoint sales representative / distributors in case of exporting to those countries. In the case of setting up production unit, its factory location within and industrial areas become very necessary as local distributors can easily carry his products and sell to whole seller and retailers; he should consider the price of the products and make it very competitive with other dealers both on export to those countries and from the production unit in those countries.
There is also the need for its publicity. The products should be advertised both in the electronic media and in the printed media, to enable it penetrate the foreign markets. Also he must find out the bilateral relationship between those countries and his country. It may be that due to economic and political reason, his country is restricted to trade with either of the countries on the import list.
He should also understand the culture of the people as B & D did and should study the political stability of that country and must ensure that, he insures his investment which should include both insurance from an issuance firm and re-insurance from government agency dealing in export for his national products. This service from the government will assist him a great deal in competing with other suppliers to those regions due to the fact that he could offer goods on credit to buyers and sell at a very competitive price under the government and insurance guarantee
Secure against currency inconvertibility and confiscation of assets by host government in case of setting up production unit abroad. In another development, he may set up the production unit on the export processing zone which can reduce cost unto 60% of the cost and product can be sold both locally and internationally (for exporting to third countries). These are some of the areas to be considered in penetrating the foreign markets as a recommendable strategy. The next step is the product development. The product should be developed based on the researched that has been carried out as stated above.
It must fulfill all the condition necessary to enable it complete with other supplies “This stage is an evaluation of the product idea in term of its potential for enabling the company to take maximum advantage of its competitive strong point…. ” (Don Weller: export product development of international trade center (ITCC) Geneva). The next is the product identification “world class product” like that of B & D. The very procedure outlined about relating product identification should as well be applicable in all foreign countries since, the culture, consuming pattern, prices varies from one country to another.
If this is put into action, then, the product will be marketable in different parts of the world “Don” of ITC wrote “ product differentiation means selling exactly the same product in every market”. It could be the same hard wave from Emhart but specification, sizes, prices, colour etc, vary from one country to another in considering the above factor. In carrying out the market research, he should apply both desk and field research. “Desk research basically involves the collection of information from documentary sources published in unpublished… “according to Don.
Today the internet has become a major source for desk research as most library has gone online; information that can be obtained from desk research include, prices of the commodity, suppliers data, information about the political, terrif of those countries etc. The other is called “Field Research”. The field research should be carried out in the foreign country. In that case, a questionnaire is designed which is given to people in those countries most preferably, the dealers of the hard ware who already had experience in the market.
The research will include questions that will be asked in order to find out the market position of the country in terms of prices, consuming pattern, quality, specification etc. Therefore, the product identification and development in order to suit the foreign market requirement is the key to Emhart’s success. The next is the managerial ability. The management team should include staff that are experienced in international trade operation. Those that can formulate policies and sound business ideas in caring out their operations Worley wrote “initiate the inquiring.
This phase determines the subject and change. It emphasized member involvement to identify the organizational issue they have the most to address” (page 29). In as much as Emhart is focusing on global market, there is the need to replace old staff with new staff that have the skill in international operation. worley added “individual level design components” – Skill – varied, the range of activities and abilities required task completion…” In as much as the required staff are put into place, operation can begin based on the researched that had been concluded in foreign markets on those products.
At this function, Gramuld, can follow up the procedures adopted by B & D by opening regional offices and sales representatives in different part of the word. B & D can provide training to the staff that had the relevant qualification and considerable experience. This is the transfer of the “know how” from B & D to Emhart in their international operations. Gruamud should as has well consult a consultants in international trade who can draw out plans to enable him operate efficiently.
