Market entry strategies
——from a case study of Hershey
When talking about Hershey,people will think of chocolate. Hershey is the largest manufacturer of chocolate and candy in North America,which had long history of 105 years.Now Hershey's chocolate sold around the world. From the case study, we found that hershey met difficults when entered into Australia market ,and the same things also happened in China market.They withdrawn from the market and return after strategic recombination.This article is talking about the problems we should pay attention to and strategies to develop market. 2 Previous preparation
2.1 marketing research
Before entering into new markets,marketing research is a important step.It can help company to understand their competitors,including condition, trend, strength, disadvantage etc. From that, it can make a strategy exactly.And the content of the research should include: 1) taste
It is important for food item specially.View on taste, it's vary from person to person. Not only the difference between two countries people,but also the difference between customer groups ,like children tastes sweeter than adult.so it determine whether the formulation should be change and how should it change.This is one of the cause of failure in Australia and China at first. 2)competition
Each market have their competitors,Knowing oneself and each other is an important prerequisite for competition.That mean, we should grasp ours strengths and weakness,master competitors market targeting and do marketing orientation exactly. For example China market.
The chart shows that the awareness of each branch chocolates in China.obviously,the most high profile product is Dove over 90 per cent in chocolate market.The second one is Leconte about 70 per cent ,and the popular of Cadbury is similar to Nestle almost 60 per cent.But the profile of Hershey just only 28 per cent in China market.From this survey, we can found the brand competitors in China.So we should pay attention to brand awareness when entering into new market.It is not just relate into sale but influence. Currently,international market competition has spanned product competition period and enter into brand competition period.And become the primary form in global market.So one of the aim is to enhance brand competition,when entering into new market.
As we all know,we can not entry into foreign market directly, because many countries have their trade barrier to protect domestic market.for example china If the foreign firm want to do business in China,there are some kind of methods ----indirect exporting, active exporting ,production abroad. Indirect exporting,some firms are unwilling to undertake any of the activities of marketing abroad , including Export Trading Company,Export Management Corporation,Piggy-Backing. Active exporting,include agent,distributor,marketing subsidiary etc.In addition,that also can be subcontracting,franchising,licensing,joint venture etc. Some investors often used these as the way to entry market.The choices are not only affect the level of involvement,but also the strategics pursued by the exporter. In addition, the choices of cooperation instead of importing directly,can help to decrease the cost and improve the price competition.
Advertisement is one of the way to promotion ,in order to raise recognition of brands,but also in shaping the company's image.For example,Dove is mean"do you love me ",using a love story to attract lover.The message is the soul of advertisement and is the tool to lure customers. Dove--taste its strong atmosphere of milk,just like silk fly around you.
Kisses ---Small stature big flavor
But the spending in ad is expensive. If no influence in sales that firms may suffer financial difficulty. Further more, commodity demand volume is also influenced by competitor's advertising input as well as by one's own advertising...
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