To Enter A New Market Needs A Holistic And Logic Process

1976 WordsMar 21, 20178 Pages
To enter a new market needs a holistic and logic process and strategy which should consider different factors including 3Cs (customer, competitors and corporation), the STP (The Segmentation, Targeting and Positioning model) and mix strategy (4Ps as Product, Promotion, Price and Place) and all can largely affect the performance of sale performance in the markets. In this essay, firstly, I would like to discuss the processes and result of the simulation game in my group. Then, one of mix strategies which had become an issue during the simulation game will be reviewed and combined with marketing concepts or theories. And the last part would reveal one tool that should be considered as a significant factor which can influence the strategic…show more content…
During the whole game, these strategies had worked out well in Brazil and Argentina that market share in those two countries rose from a quite low ratio at 6.5% in Brazil and 8.9% in Argentina in the entering period to 20.6% and 19.9% at the end period, respectively. However, the strategy did not work out in Mexico that the market share stayed around 13% to 14%. While our brand equity is quite strong at 67, another obvious evident that we did not have a good performance in Mexico is the profitability that the net contribution is at -53.1 million dollars in the end of the game (Interpretive Simulations, 2017). Though there are many possible issues which affected the performance in the markets, I will just mention one challenging issue with marketing theories and concepts that we met during the game. There are several situations and issues during the whole process of the simulation game. One of the important issue we met, from my point of view, is to set appropriate price and adopt the price during the game. According to Dutta et al. study in 2003, it commented a six steps processes to build the selling price of a product including selecting the pricing objective, determining demand, estimating costs, analyzing competitors’ cost, prices and offers and selecting a pricing method and lastly selecting the final price. In the first step, selecting the pricing objective, this is mean to define the position of the
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