Skagen Design Report
Skagen Designs Group 4 Q1. What screening belief should Skagen Designs use in affiliation with its best of new markets for its watch collection? Back Skagen Architecture chooses the new markets and use the affiliation with them, at first, they accept to affliction about price. Aggressive bulk is not abandoned one of the capital of their brand, but additionally the easiest adjustment to admission new markets, abnormally in developing markets. In watch markets, you can see which markets is developed or developing from the charts, afterwards adorable at those, you will see which strategies Skagen Architecture needs to admission into anniversary bazaar with.
Somehow, aggressive bulk is able advantage in any markets, of course, it is a lot added affecting to developing markets. So, Skagen Architecture allegation to accumulate the low bulk and able quality, of course, with their acclimatized architecture either. Next, abreast from price, they additionally accept to abstracted bazaar into developed & developing markets in watch markets as I mentioned already. By adding them into two groups, they can adjudge which action they will acclimate to, for instance, if the bazaar is developed market, they accept to advancement their quality.
It will allegation added cost, so the bulk should be higher, but the chump in bazaar doesn’t allegation accustomed one, so it is necessary. Meanwhile, if the bazaar is still developing market, the best way to allure them is to accumulate low bulk with able quality. Also, Skagen Architecture has simple design, it could accomplish attainable to acclimate slight change from bounded needs. Third, Skagen Architecture should assay whether the bazaar has any armament with all-embracing barter such as aerial tariff.
It is basal footfall afore accepting into the market, back Skagen Architecture has not bigger cast adeptness comparing to competitors such as Gap, Calvin Klein, it has to be emphasized with affection and low price. With aerial tariff, it ain’t attainable to accumulate lower bulk than bounded brand, and not alike alternative all-embracing brands which has acceptable online markets. So, if the bazaar has aerial assessment or adjustment from its government, Skagen Architecture should accomplish their business in baby footfall such as online supply.
It is uncontrollable allotment for every watch companies to change the bazaar situation, so it has to accumulate checked, back it is additionally attainable to get aboriginal mover’s advantage if Skagen Architecture gets into new bazaar with low adjustment at first/ Last, no bulk how the bazaar is developed & developing or has altered situation, Skagen Architecture has to accumulate their watch able affection and design. It is capital for every business to accumulate them. Consumers never buy abominable artefact again, additionally the artefact from those cast images.
Even admitting Skagen Architecture could action lower bulk than others, their cast shouldn’t be aforementioned to bounded bearding cast images, so they accept to accumulate their cast characteristic, either. Affection & acclimatized architecture are consistently the best important genitalia in every markets, and aggressive advantages for business success. Q2. Accomplish a specific best of new markets for Skagen Designs. Table 1 and Table 2 can be acclimated to abutment your argument. The characteristics of Skagen Designs are colours, shapes, and simplicity, etc.
However, one of the best aggressive characteristics is aggressive price. Their aerial about-face has been kept for decades, and it’s originally started from aggressive price, of course, its architecture either. To accept which markets Skagen Designs get into, they accept to accede not abandoned how abundant retail aggregate they have, but additionally how abundant they are allow to pay for watch. At least, they accept advantage with their bulk comparing to competitors like Calvin Klein, Coach, Guess, Gucci, Swatch, Alfex and Jacob Jensen, etc, somehow it could accomplish their artefact added acknowledged in retail market.
About retail volume, we can affirm it from Table 1 and Table 2. From Table 1, retail aggregate in bags of units can be estimated, for sure, USA bazaar has been still the bigger bazaar back the assay started from 2003. Also, we can see absorbing accession in India market, their retail aggregate has been growing rapidly the most. Now, India bazaar has the additional bigger retail aggregate in bags of unit, and it is alike aforementioned to USA almost. Adorable at cardinal of watches per 1,000 people, Mexico has showed accomplished ratio, and India’s adjustment is still the lowest.
From Table 1, we can see Mexico, Netherland, South Africa, Sweden accept the greatest cardinal of watches, and adverse to it, India, China, Japan, Belgium accept the everyman cardinal of watches. Abreast from Table 1, Table 2 shows bulk of altered watches, which additionally shows the bigger and the everyman markets as well. From Table 2, USA, Japan, UK are the bigger one, in adverse to Belgium, Hungary which are the everyman one. One affair we can ascertain actuality is counties with bigger retail bazaar accept not so big aggregate bulk of watch market.
Also $ per capita shows agnate aspect, from Table 2, we can see the breach amid developed bazaar and growing market. Already developed markets accept the bigger $ per capita back it comes to market, meanwhile growing markets accept the everyman one. It is aforementioned with bulk of watch markets. So, from those charts, we can advance abeyant markets for Skagen Architecture would be Mexico, India or China. Skagen can action them boilerplate affection with lower bulk than competitor’s, additionally their architecture is so simple and never chase accustomed trends that it can be acclimatized in growing bazaar easily.
It can be acclimatized to bounded needs hardly with marketing. Meanwhile, back Skagen Architecture enters into developed market, it doesn’t allegation to acclimate bounded needs or adaptation. What abandoned they accept to affliction is added aerial affection with college price, so it can’t be acceptable bazaar as abundant as aboriginal one. Q3. Which bazaar admission approach should Skagen Architecture use on the called markets? Aboriginal of all, you accept to apperceive what is a bazaar admission mode : this is an institutional adjustment which is all-important for the admission of a company’s articles into a new adopted market.
There are three altered types of admission mode: - Consign - Average - And hierarchical approach There are few factors that admission the bazaar admission approach choice. These factors are externs or interns, or specifics. The bazaar admission approach is altered amid countries with low, average and aerial accepted of living. Firm’s articles are bogus in the calm bazaar or a third country and again transferred either anon or alongside to the host market. Three types of exporting: 1. Indirect approach 2. Absolute approach 3. Cooperative approach |Lowest US $ per capita |Medium US $ per capita |High US $ per capita | |Indirect consign approach |Is the action of exporting through | | | | |domestically based consign | | | | |intermediaries, but the exporter has no| | | | |control over its articles and over the | | | | |marketing decisions. | | | | | | | | |Fast bazaar access. | | | | | | | | | |No infrastructures are built. | | | | |Low auction promotion. | | | |No bazaar researches are agitated out. | | | |Direct consign approach | |If the all-embracing markets are advised as a | | | | |crucial allotment of the company’s success the absolute | | | | |exporting is the best bazaar admission tool. | | | |Using own sales accessory and absolute business | | | | |(including mail adjustment and telemarketing). | | | | |Low infrastructures are built. | | | | |Market researches are agitated out aloft accessory | | | | |data. | | | | | | | | |The business can use: | | | | |Distributors | | | | |Market country agents | | |Intermediate approach | |The average approach is acclimated to alteration the | | | | |knowledge and the abilities to the bounded | | | | |producer/seller. | | | | | | | | | |There is no abounding affairs by the ancestor close | | | | |involved, but affairs and ascendancy can be aggregate | | | | |between the close and the bounded partner. | | | | | | | | |Four types of average admission modes: | | | | |Licensing | | | | |Franchising | | | | |Contract accomplishment | | | | |Joint ventures | | |Hierarchical approach | | |Solid infrastructure. | | | | |Sponsoring artists, athletes and | | | | |events. | | | |Market research, qualitative & | | | | |quantitative. | | | | |Aggressive business campaign. | | | | |Sales promotion. | | | | |Market coverage: Intensive | Anniversary affectionate of countries has one acclimatized approach apropos its export, and anniversary of these modes are listed in the table above. Q4.
What should be the guidelines for including alternative articles curve in the Skagen Designs collection? Including alternative articles beggarly appetite to accept an expansion? : you can add a new artefact to aggrandize your business; aloof be abiding to booty these four accomplish afore affective forward:? Determine the specific needs of your barter in anniversary acute bazaar segment.? Identify the product/service bundles (groups of features) that would be best adorable to them. Actualize a altered bulk hypothesis for the proposed band extensions and adjudge how you'll position the artefact in the bazaar segments you've identified. ? Determine the sales and administration channels that will accomplish the accomplished assimilation of your ambition bazaar segments.
In all, you'll allegation to use bazaar assay and allege barter and business accessory or distributors and appraise aggressive products. This will admonition you to validate the present akin of appeal for the artefact and the best channels for sales distribution, additional appearance the artefact messaging. If you do your appointment and advance with an analytic eye, your band addendum will access sales, admonition you adeptness new markets and body bazaar allotment all-embracing for your growing business Accepting a guideline represents allotment the appropriate segmenting, targeting and positioning. Segmentation [pic] Targeting [pic] Accession The accession is the action by which marketers try to actualize an angel or character in the minds of their ambition market.
So, the guidelines for introducing alternative articles curve are mainly apropos the positioning. For Skagen, we can call the cast as simple, affected and affordable. It is absolutely actual affected with abstruse attention and a accurate aboriginal design. It agency that a new band of articles has to be allotment of this universe; it agency article chic, no aliment or others. Furthermore, it has to allegation a abstruse attention because they could accept an advantage application their adeptness with that affectionate of materials. It has to be simple. Indeed, for example, the cool abbreviate band is absolutely purified, simple. The watches are non-numerical, the logo is actual discreet. So the new band has to be fabricated in a actual simple style.
Last but not least, it has to be an affordable product. It agency that they accept to acquisition way to aftermath it about low cost. And so it has to be a artefact which can be fabricated about low cost. Ideas for the approaching of new articles - Aerial affection & architecture pen as Rolex for archetype - Clothes as Calvin Klein for archetype Q5. Which belief should Skagen Designs use for its alternative of approaching sponsor partners? Aboriginal of all, it is absorbing to accord a little analogue of advocacy to accept the absorption for companies to accomplish some partnership. Afterwards that it charge easier to ascertain some belief in the alternative of approaching sponsor partner. Sponsoring:
Supporting an event, action or alignment by accouterment money or alternative assets that is of bulk to the sponsored event. This is usually in acknowledgment for announcement amplitude at the accident or as allotment of the publicity for the event.  For Skagen Designs it can be absolutely absorbing to set up a allotment policy. Allotment is one of the best agency of admonition for two reasons. Firstly, it is a acceptable apparatus to highlight and absolute the accession of Skagen Designs acknowledgment to an accident or a celebrity absolutely acclaimed and apperceive by everyone. Secondly, this affectionate of affiliation makes advertisements added visible. For archetype in the past, Skagen Designs had a affiliation with the acclaimed TV alternation Accessory McBeal.
This allotment corresponded to the Skagen Designs targeting (active population, 25-45 years old with a appearance sensitivity) and to the accession additionally (classy, affected and affordable). Moreover, bodies who admired accessory McBeal and who admit themselves in the alternation charge be added acute to the cast Skagen Designs. It was a absolutely acceptable promotion. Indeed, back the advocacy is able-bodied selected, it allows anecdotic with a accurate ambition bazaar or affairs and so alluring customers, easier. The aboriginal acumen is accretion of acquaintance of cast name and then, reinforcing perceptions of key cast angel associations. For example, every time bodies watched Accessory McBeal, they anticipation Skagen Designs.
The allotment makes the cast animate and present accustomed in the activity of customers. As any decisions, nevertheless, sponsor affiliation can be risky. That’s why we allege about selection. One of the difficulties of advocacy it is adamantine to admeasurement and adumbrate success and outcome. Addition accident depends on the sponsored person’ angel which can change because of an accident or a situation. This can affect the cast believability and accessory the cast with this bad accident or behavior and change acumen of cast values. That is why it is important to authorize a account of belief in adjustment to accomplish a acceptable alternative bulk the altered sponsor partnerships available.
Firstly the affiliation has to be in capability with Skagen Designs ethics and strategy: • The advocacy has to be in band with the business and admonition objectives. • It has to be a cardinal fit amid the contest ambition markets and Skagen Design? s. • The advocacy charge bout the targeted bazaar and be able to adeptness it. Finally the sponsor affiliation has to be in band with the accession and targeting in adjustment to blow the chump and allure him: • The advocacy charge accomplish acceptable awareness, access the acclimatized angel and actualize the acclimatized effects. • The consumers accept to see attributions for the sponsor’s engagement
To conclude, Skagen Desings has to focus on its ethics and accumulate in apperception its cardinal administration for the brand. Again it charge be easier to accept a accomplice by afterward the criteria. Finally by afterward up and evaluating the advocacy Skagen Designs will be able to adjudge if it’s bigger to abide or stop the sponsorship. Q6. Skagen Designs is because online sales of his watches. What problems and possibilities do you see for the aggregation in this area? On this base what are your conclusions? Nowadays, every cast is best of the time at atomic a cast “click and mortar”, if it is not a “pureplayer”. Nevertheless, the online barter cannot be acclimatized to every blazon of brand. Indeed, the cast cosmos has to be able to be put on the internet.
Furthermore, back competitors alpha to advertise on the internet, if you do not appetite to lose bazaar share, you accept no choice: you accept to action their advantages and so alpha because affairs online. First, we accept to bethink what an online auction is. An online auction is a anatomy of cyberbanking business which allows consumers to anon buy appurtenances or casework from a agent over the Internet after agent services. So, we can anticipate that a affluence cast such as Skagen, which anyhow looks luxury, will lose its adeptness to admonition consumers, one of his strengths. Furthermore, those watches are appealing abstruse articles and so crave some expertise. However, there charge be some advantages. It is important to say that Skagen has already a website and is already affairs on this website, so every watch can be purchased on the internet.
Indeed, for example, you can accept a watch, bang on it to accept a bigger appearance of it, and again you can “add it to the bag”. You can again see your “bag” on which you see the bulk of your watch and of the shipping. The aftermost footfall is to do the assay out by giving your claimed address, and of course, paying. As a consequence, we can anticipate that Skagen took its decision: they absitively to advertise by the internet also. Now, what agency “problems and possibilities”. A botheration is an obstacle. A achievability is added an opportunity. It agency in this case how the website can be done, what possibilities they have. But also, it agency what opportunities it will bring.
So, we can anticipate that the announcement “problems and possibilities” refers to the “Threats and Opportunities” in the SWOT analysis. First, it is an befalling because barter are not the aforementioned nowadays. The new chump is consistently in a hurry, consistently wants to change his style, optimizes a lot his time in the carriage by application his cellphone. So, of course, if the competitors alpha to advertise on the internet, Skagen customers, which are adolescent and animate people, will lose their adherence against Skagen award bigger answers to their needs. Second, as it was said, the archetypal Skagen chump is the archetypal being who spends a lot of time affairs on the internet and who is actual adequate with new technologies.
It agency that it will not be a botheration for him to buy at the online store, and even, it will accompany new customers: this capital target, the one of Skagen, is sometimes so abundant animate that it does not accept time to buy and sometimes, he is absolutely accommodating to buy in addition country but cannot because there is no online store. As a consequence, it agency that added than an advantage, creating an online abundance was all-important for Skagen’s customers. Plus, every cast does not accept absolutely the aforementioned target. We can assumption that because, for example, Alfex is still not affairs on the internet, you can aloof bang on “where to buy” on its website. Third, but it is a detail, it absolutely attainable to authorize some advantages for affectionate barter on the internet. For example, reductions, appropriate sales. And it is calmly accessible. These advantages can additionally be accumulated with partners.
Indeed, Skagen, allotment to alpha affairs on the internet can alpha accepting acceptable accessory for commutual items such as clothes for example. However, we can beam that best of this cast does not accomplish any advance for alternative brands. We can anticipate that it is because the apple of watches is an “elegant” world; it agency that websites are absolutely avant-garde and purified. Fourth, we can anticipate that it could be cheaper to advertise on the internet because you do not accept to pay a so huge hire and you do not accept to pay the sells staff. However, of course, there are some disadvantages. First, it is a absolutely absolute and abstruse product: some acute chump can feel lost, alike if it is able-bodied declared they ability allegation still added details.
Details that are so abundant that it cannot be put on a website for archetype if you accept some risks to breach a bit your chunk on the watch if you go on the battery with it. Second, Skagen will consistently accept to watch the markets change and to be able to acknowledgment actual bound to demands. It agency a lot of stocks and money. This is an aspect of starting affairs online: affairs online is a job in itself, you accept a lot of technics to access such as how to address your articles for example. And, because it is a lot of money, you accept to account if it is absolutely account it to advertise on the internet and if it is, how you will do it after huge amounts of moneys. Beside, capacity which is important for Skagen which is a cast whose accession is affairs actual appealing articles at affordable prices.
Third, Skagen, as clothes, is a appearance brand, it agency that bodies requires appearance from it. And, as they do with clothes, they ability appetite to try it to see how it feels and how it fits their clothes. And, indeed, it is the capital botheration with online stores. But, anyway, it is beneath grave for watches than for clothes. However, we can apprehension that on their website we abandoned see their watches alone, which agency that it adamantine to brainstorm how it looks on a wrist. Some competitors such as Jacob Jensen or Assumption still accept this trouble, they should all of them do as Alfex, appearance it on the wrist of a archetypal also. As a result, it was about binding for them to go on the internet.
Indeed, they accept the absolute target, it can be cheaper and they are an affordable cast because they can aftermath low cost, their competitors alpha to advertise on the internet and this blazon of articles which are altar and not clothes or food, can be absolutely calmly awash on the internet. The disadvantages are absolutely negligible comparing to the advantages. We can anyhow to go added far anticipate that they could do it in addition way such as proposing pictures of bodies cutting it and alike proposing some clothes appearance to fit with it. -----------------------  http://www. tutor2u. net/business/marketing/promotion_sponsorship. asp ----------------------- Report 2013/02/19 INTERNATIONAL MARKETING SODERTORNS HOGSKOLA
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