This document answers to the questions of the following case : http://wps.pearsoned.co.uk/wps/media/objects/9646/9878474/Extra%20casestudy%20deel%20II.pdf
It answers to all the questions in 5 pages regarding the internationalisation of the Danish watches called Skagen regarding market entry, choice of market, screening etc.
[...] In order to select profitable market for its watch collection Skagen has to select various criterias. We think that Skagen has to consider the risk present in the market by using the BERI Index. According to the brand values and prices, the company should enter a market which is stable, developed or developing his economy and allow the population to get access on premium products. Then, it has to be possible to enter this market in term of regulation and currency convertibility. [...]
[...] Sources Skagen Official website : http://www.skagen.com/ Internet Marketing – Strategy, Implementation and Practice, 4th ed, Dave Chaffey et. al. [...]
[...] To enhance the value of the brand, the new products should be developed in a way so that they are clearly connected with the Skagen Designs philosophy, especially regarding design; “The colors, shapes and simplicity inspire the design team.” (Case study 11.4 – Svend Hollensen - Global Marketing). The products developed should fit with the image of the brand in order enhance their Brand awareness and keep its loyal customers interested. It's also important that their new product line follow the company's existing pattern of prices. As mentioned in the case and question above, Skagen Design already sell other products. [...]
[...] That's why; Skagen should be insured that they can fix their prices without taking excessive risks. Furthermore, Skagen has to consider the value and volume of the watch market to see if an introduction of their watches can be profitable for the brand. As a matter of fact, they have to take in consideration the number of watches bought in relation to the population and the price paid for it. This is a way, to analyze the potential performance of the market. [...]
[...] The choice of the purchase place by the customers will depend of their preferences in term of service, choice We believe than to introduce the watch collection in China and India, Skagen has to use the same market entry mode for both countries as they are developing countries and not everybody can afford to buy such a product there. It can be very costly to enter those markets, and then we think that Skagen should be cautious in the market entrance in relation to his small financial capabilities compare to the competition. Firstly, Skagen should use distributor to sell their products. [...]
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