Hello and welcome to my proposal for entering the international market. The objective of this proposal is to first, develop marketing research to determine if the company should pursue the development of products for the consumer market. Then create a position for JavaJoy in the consumer coffee brewer market. The proposal is based on the analysis of surveys, sample testing, and most current secondary data. After further determinations, it was found that JavaJoy has a highly competitive product that will prosper in the international market.
After conducting a situation analysis, we have found that the need for niche coffee brewer products exists in the European continent. Although there are several competitors in the industry, the coffee market has a trend of increased sales and distribution over the last ten years. The potential for growth has tripled since 1998, and coffee houses has expanded over the Asian continent. The market characteristics indicates that the current size of the market is 33%, while the projected growth rate is estimated to be another 12% by year 2014. With daily operations, the manufacturing plant will meet the needs required to enter the brewing market with minimum capital requirements. The main barrier seen in positioning JavaJoy’s product is import costs and delivery time. The market segment has been divided by demographics, and should first target inner cities before expanding to suburban areas.
The SWAT analysis provides us with the strengths, weaknesses, threats, and market opportunities that JavaJoy may encounter when positioning the market. For example, Although JavaJoy is a high quality product, they face the weakness of distance that their international competitors do not face. Therefore, the threat becomes the international competitors as well as other U.S. based competitors who have already positioned themselves globally. Yet, opportunities still arise for JavaJoy such as positioning themselves internationally, global partnering, and exponentially increasing their sales.
The business environment is controlled politically by domestic and international laws that include exporting, and distributing foreign goods. The economic environment can be altered by changes of domestic and international taxes, inflation, and the current value of the currency exchange. Social life and custom plays a major role in the sales of JavaJoy products in the European market. Europe has a history with coffee that makes them avid coffee drinkers today, thus needing a high quality coffee brewer. JavaJoy’s products are technologically advanced where the life of the product is guaranteed for five years, contains a digital thermostat (to avoid scorching the beans), and a NASA research inner lining to keep brewed coffee fresher longer. Finally, The competition can change our environment by becoming more innovative or exiting the market. The business environment always changes, therefore it must be frequently monitored (The Times 100, 2009).
Entering the International Market June 26, 2009 Marketing Research Practices MKT350-0902B-01 Phase III Individual Project Professor: Kay Green By: Irvin Fitzgerald
Introduction Welcome Objective: To develop a marketing research proposal to determine if the company should pursue development of products for the consumer market. To create a position for JavaJoy in the consumer coffee brewer market.
Implementation Restaurant Chains Small business owners Franchises Milestones Time schedules
Control System Action plan Benchmarking and measurement systems
References The Marketing Mix. (2007), The Four P’s of Marketing. QuickMBA. Retrieved June 24, 2009, from http://www.quickmba.com/marketing/mix/ The Times 100. (2009). Marketing and the Business Environment. Retrieved June 24, 2009, from http://www.thetimes100.co.uk/theory/theory--marketing-business-environment--184.php