Export Marketing Campaign for Navarre


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This is a powerpoint supplement to a export marketing campaign project about the Navarre Company of Minnesota.

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Export Marketing Campaign for Navarre

  1. 1. Navarre Corporation's Export Marketing Plan Presented By: Natasha Cornelius
  2. 2. Who is Navarre? <ul><li>Navarre Corporation is a publisher and distributor of a variety of home entertainment media in the United States and Canada </li></ul><ul><li>Their products include PC software, video games and accessories, and DVDs </li></ul><ul><li>They have two wholly-owned subsidiaries: Encore Software, Inc. and FUNimation Entertainment </li></ul><ul><li>Navarre Corporation is located in New Hope, Minnesota and was incorporated in 1983 </li></ul>
  3. 3. Why Export? <ul><li>Navarre currently holds itself to distributing within the United States and Canada. In order to keep up with its competition, exporting further is necessary. </li></ul><ul><li>According to their 2007 Annual Report, their business strategy is “to grow our publishing and distribution businesses through a combination of organic growth and targeted acquisitions…” </li></ul><ul><ul><li>Exporting is the next step in achieving this goal </li></ul></ul><ul><li>Exporting is a great initial strategy for pursuing international sales </li></ul>
  4. 4. Export Where? <ul><li>Germany is a great place to start exporting to because: </li></ul><ul><ul><li>English is widely spoken (expensive translators not required) </li></ul></ul><ul><ul><li>It has the world’s third largest economy with a population of 82 million people </li></ul></ul><ul><ul><li>Germany’s 82.4 million inhabitants have one of the highest average income levels in the world </li></ul></ul><ul><ul><li>The dollar is weak against the euro, which is good for American exports </li></ul></ul><ul><ul><li>Like the U.S., Germany is part of the World Trade Organization, which makes exporting less complex </li></ul></ul><ul><ul><li>They are the European leader in e-commerce, so they are knowledgeable and reliable in this sense </li></ul></ul>
  5. 5. Export Where? (cont.) <ul><li>Germany is a great place to start exporting to because: </li></ul><ul><ul><li>They have the largest number of internet users (65% of population); 62% have used online shops </li></ul></ul><ul><ul><li>The most popular product categories of online purchases are music, video, travel, tickets, books and consumer electronics </li></ul></ul><ul><ul><li>The “American-Way-of-Life” is popular, principally among the affluent younger generation (will not be turned off by American imported product) </li></ul></ul><ul><li>West Germany will be more solely concentrated on because of their profitable economy </li></ul><ul><ul><li>As of 2007, there are 67 million people living in the western German states compared to 15 million in the east </li></ul></ul><ul><ul><li>The western states also have lower unemployment rates </li></ul></ul>
  6. 6. SWOT Analysis <ul><li>Strengths: </li></ul><ul><ul><li>Value-added services </li></ul></ul><ul><ul><li>Broad product offering </li></ul></ul><ul><ul><li>Established content in publishing business </li></ul></ul><ul><ul><li>Established relationships with publishers and retailers </li></ul></ul><ul><ul><li>Efficient operations and operating leverage </li></ul></ul><ul><ul><li>Efficient websites for B2B (Navarre.com) and B2C (Encoreusa.com, Funimation.com) </li></ul></ul><ul><ul><li>U.S. leader of home video sales of anime </li></ul></ul><ul><ul><li>Has their own publishing and licensing business segment </li></ul></ul><ul><ul><li>Received large cash flow from divestiture of BCI Eclipse Company </li></ul></ul>
  7. 7. SWOT Analysis <ul><li>Weaknesses: </li></ul><ul><ul><li>Brand management is poor </li></ul></ul><ul><ul><li>Business experience has been limited to North America; working in Europe is a completely new concept </li></ul></ul><ul><ul><li>Business materials are in English and dollars </li></ul></ul><ul><ul><li>Lack of brand loyalty </li></ul></ul>
  8. 8. SWOT Analysis <ul><li>Opportunities: </li></ul><ul><ul><li>Exporting to Germany will create a broader market </li></ul></ul><ul><ul><li>Chance to increase sales </li></ul></ul><ul><ul><li>Gain foreign working experience </li></ul></ul><ul><ul><li>Creation of more jobs </li></ul></ul><ul><ul><li>New distribution channels </li></ul></ul><ul><ul><li>1 EUR = 1.30 USD </li></ul></ul><ul><ul><li>Staples has locations in Germany </li></ul></ul><ul><ul><li>Best Buy announced they are opening locations in Europe </li></ul></ul><ul><ul><li>Popular Metro Group company is a strong retailer headquartered in Germany </li></ul></ul><ul><ul><li>www.ebay.de and www.amazon.de popular in Germany, opens direct B2B and B2C possibilities for Navarre </li></ul></ul><ul><ul><li>Increase anime fan base in Germany </li></ul></ul>
  9. 9. SWOT Analysis <ul><li>Threats: </li></ul><ul><ul><li>Loss of vendor or retailer (like Circuit City) could significantly hurt profits </li></ul></ul><ul><ul><li>Economy downfall could weaken sales; consumers more cautious about discretionary spending </li></ul></ul><ul><ul><li>Wal-Mart shut down locations in Germany, could see repeats with other business partners </li></ul></ul><ul><ul><li>Change in consumer demand for home entertainment products and PC software </li></ul></ul><ul><ul><li>New technology replacing DVDs, CDs, etc </li></ul></ul><ul><ul><li>Technological difficulties with changing digital formats from Region 1 to Region 2 </li></ul></ul>
  10. 10. Financial Objectives <ul><li>According to their 2009 annual report, Navarre experienced loss of sales in 2009 compared to past years </li></ul><ul><li>Navarre plans on recovering their loss by opening business channels with retailers and e-tailers in Germany </li></ul><ul><ul><li>The New York Times stated in 2008 that German consumers spent $30 billion on electronics alone </li></ul></ul><ul><li>By tapping into this market, Navarre anticipates increasing net sales a minimum of 5-10 percent by the end of the next fiscal year </li></ul><ul><li>Navarre should expect to see the 2009 net sales of (in thousands) $630,991 increase to at least $670,000 after one year of distributing to German retailers </li></ul>
  11. 11. Marketing Objectives <ul><li>Navarre will use their primary website to increase awareness of their new ventures in Germany </li></ul><ul><li>They will also advertise their German FUNimation and Encore websites on popular German websites such as www.google.de through online classified advertisements and banner ads </li></ul><ul><li>Promotional sales for Navarre distributed product will also take place in retail stores during the first quarter in Germany </li></ul><ul><li>Navarre’s Marketing and Creative Services department will work with German retailers to ensure proper marketing in foreign media </li></ul>
  12. 12. Marketing Strategies <ul><li>Navarre Corporation will increase sales by exporting their product </li></ul><ul><li>By going international, they will expand their consumer base </li></ul><ul><li>Hire consultant knowledgeable about exporting to Europe </li></ul><ul><li>Meet with internal directors to create export budget </li></ul><ul><li>Form strategic alliances with foreign companies </li></ul><ul><li>Meet with foreign retailers to assess best alliances </li></ul><ul><li>Implement first quarter promotion sales in foreign stores </li></ul><ul><li>Create advertisements that attract European consumers </li></ul>
  13. 13. Product Adaptation <ul><li>Navarre will need to hire agents to translate product labels, marketing packets, and websites into German </li></ul><ul><li>German subtitles or dubbing may need to be added to many products such as films and software </li></ul><ul><ul><li>Software that creates subtitles for movies and other media can be purchased. But because English is spoken widely in Germany, Navarre may not be required to adapt so vigorously in this sense. </li></ul></ul><ul><li>Films will be needed to be converted into Region 2 </li></ul>
  14. 14. Export Expenses <ul><li>Hiring export management company agents </li></ul><ul><li>Translating labels and materials </li></ul><ul><li>Investing in subtitle creation software (or costs of convincing DVD/CD production companies to implement German subbing and/or subtitles) </li></ul><ul><li>Costs to implement change of DVDs to region 2 </li></ul><ul><li>Costs of shipping to destination point </li></ul><ul><li>Licenses to export to Germany </li></ul><ul><li>Costs of additional advertising </li></ul>
  15. 15. References <ul><li>Deacon, Cary L. (2007). Navarre Corporation 2007 Annual Report. Navarre.com . Retrieved July 15, 2009 from http:// library.corporate ir.net/library/10/105/105157/items/255848/2007AnnualReport.pdf </li></ul><ul><li>Deacon, Cary L. (June 9, 2009). Navarre Corporation 2009 Annual Report. Navarre.com . Retrieved July 16, 2009 from http://navarre.com/Investors/default.htm </li></ul><ul><li>Fairfield, Hannah, He, Elaine & Quealy, Kevin. (September 4, 2008). What Your Global Neighbors are Buying. The New York Times . Retrieved July 20, 2009 from </li></ul><ul><li>http://www.nytimes.com/interactive/2008/09/04/business/20080907-metrics-graphic.html?th&emc=th </li></ul><ul><li>Standard & Poor’s. (July 18, 2009). Navarre Corporation Quantitative Stock Report. Retrieved July 20, 2009 from http://www.netadvantage.standardandpoors.com.ezproxy.metrostate.edu/NASApp/NetAdvantage/cp/showStockReport.do </li></ul><ul><li>U.S. Commercial Service. Doing Business in Germany . Retrieved July 19, 2009 from </li></ul><ul><li>http://www.buyusa.gov/germany/en/ </li></ul>