Red is a Swedish producer of outdoor wear born in 1985 in Stockholm.
Since then the company started considering exports as an important activity to develop. Today, the firm is considering penetrating the North American market.
As an international marketing consultant team, we are to analyse this market and recommend a plan to enter the country.
To elaborate this report, we will first survey the American market, then the company will be analysed in order to conclude with a marketing plan.
[...] This will be interesting because he knows the American consumer behavior, has the right contacts to distributors (customer base) as well as the necessary market knowledge. It is less risky and less expensive because the agent receives a commission and not a fixed salary. As soon as we recognize that our products meet the customer's taste and requirements, it will be possible to implement small stores in the regions mentioned in our analysis, in order to be closer to the final customer, to force sales and to offer a sound after sales service. [...]
[...] The two collections had the name of “Luxus Sportswear” and Navy Collection”. The original owners limited there work in product designing and product development. A financial management system was introduced later. The shops which sell the Navy Collection” are put in a maritime atmosphere. Until now there was no export strategy, the company expanded its market haphazardly and kept a good relationship with its distributors and importers in the export countries Strengths and weaknesses analysis Strengths Know how in production and exports Economy of scales Improved margins by producing in Poland High quality products Increase in sales turnover of +950% between 86 and 92 Capacity to adapt products Increase of capital in 2006 Weaknesses No notoriety in the US market Not well established in the foreign market Problematic financial situation Weak knowledge of THE American trade 2. [...]
[...] Hence a RED shop, e.g. situated in San Francisco or Boston would be interesting to enter the American market successfully. As RED and its products which are settled in the upper price segment want to address people who dispose of a large budget, one can remark that 20 per cent of the American households possess an annual income of about $ Technical The expenditure for research and development, totalled 3.5 per cent in the States, are optimal compared to the other industrialized states. [...]
[...] In addition private labels are unavailable from competitors. (Spending for private label sports apparel has risen steadily in recent years and reached 36,7% of total spending in 2003) ( Pressure on national brands for innovation in product design and technology ( High investments needed As retailers become larger and more powerful, and factories become more sophisticated, opportunities for both sides to cut out the middleman increase ( for the supplier ( Maintaining the power of the brand becomes essential Beginning 2005, the international quota system governing apparel production has expired. [...]
[...] Case study: RED, Inc on the American market Agenda Introduction 1. The company: RED Inc 2.1 Company background History and structure Strategy 2. Strengths and weaknesses analysis 2. Market survey 1. United States market in general 1. Pestel Analysis 2. International exchanges 2. Sports market in the U.S.A 1. Sport practices in the U.S.A Sales structure and competition 3. [...]
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