Pricing
Comparing Japan’s purchasing power with the United States, Sherwin Williams will use the Big Mac Index. As of July 2017, the price of purchasing one Big Mac in Japan is 380.00 JPY or in US dollars, 3.36 USD. The average price for one Big Mac is 5.30 USD in the US. The price of Emerald paints can range from 80 USD to 90 USD in the US. Thus, the retail price of such brand of paint will be priced at 50.71 USD to 57.05 USD in Japan. In Japanese yen, the price will be converted as 5685.15 JPY to 5611.16 JPY.
Promotion
As stated above, we want to target our market to businesses and consumers, such industrial manufacturers and households. To promote our products to businesses, we would make telephone calls to wholesalers, retailers, and …show more content…
Instead, we would conduct all business operations, such as meetings with wholesalers, marketing and advertising through an office. Our office will be located in Shinjuku, Tokyo where it is “the largest neighborhood in Japan.” In this area, we can maximize exposure to consumers that are commuting in the city. Sherwin Williams will ship its exports from the Port of Los Angeles to Port of Tokyo. The company has tens of distribution facilities in the state of California, such as in Moreno Valley, Ontario, San Diego, and Victorville (see Appendix H). The most efficient pick up to the Port of LA would be from either Moreno Valley or Ontario. The freight to ship a 20ft. container from the Port of LA to Port of Tokyo is 377 USD (see Appendix …show more content…
Based on our market assessment, the company would emphasis the products in marine coatings and commercial paints, while still providing products in other categories. To support this point, growth in housing is predicted to be 4.7% annually from 2015 to 2020. Additionally, the market value is forecasted to reach 178 billion USD in 2020, which is 50 billion liters of paint in volume. Not only that, the level of construction spending will increase exponentially during the Olympic Games (see Economic Assessment – Olympic Games). This will increase the demand in paint. PPG has determined the next year’s color trend to be “Black Flame”, or other darker hues. Therefore, we would also increase our inventory in darker hued color paints. Moreover, Japan is the world’s leading nation in technology. For that reason, we will invest in a Sherwin Williams app that uses the camera on customer’s smartphone to scan their houses. The customer can then apply the color of their choosing to their walls through this technology called augmented reality. The purpose of the app is to decrease the number of people with buyer’s remorse in the post-purchase stage. We also believe that technological innovation will make our products more receptive to our target
Comparing Japan’s purchasing power with the United States, Sherwin Williams will use the Big Mac Index. As of July 2017, the price of purchasing one Big Mac in Japan is 380.00 JPY or in US dollars, 3.36 USD. The average price for one Big Mac is 5.30 USD in the US. The price of Emerald paints can range from 80 USD to 90 USD in the US. Thus, the retail price of such brand of paint will be priced at 50.71 USD to 57.05 USD in Japan. In Japanese yen, the price will be converted as 5685.15 JPY to 5611.16 JPY.
Promotion
As stated above, we want to target our market to businesses and consumers, such industrial manufacturers and households. To promote our products to businesses, we would make telephone calls to wholesalers, retailers, and …show more content…
Instead, we would conduct all business operations, such as meetings with wholesalers, marketing and advertising through an office. Our office will be located in Shinjuku, Tokyo where it is “the largest neighborhood in Japan.” In this area, we can maximize exposure to consumers that are commuting in the city. Sherwin Williams will ship its exports from the Port of Los Angeles to Port of Tokyo. The company has tens of distribution facilities in the state of California, such as in Moreno Valley, Ontario, San Diego, and Victorville (see Appendix H). The most efficient pick up to the Port of LA would be from either Moreno Valley or Ontario. The freight to ship a 20ft. container from the Port of LA to Port of Tokyo is 377 USD (see Appendix …show more content…
Based on our market assessment, the company would emphasis the products in marine coatings and commercial paints, while still providing products in other categories. To support this point, growth in housing is predicted to be 4.7% annually from 2015 to 2020. Additionally, the market value is forecasted to reach 178 billion USD in 2020, which is 50 billion liters of paint in volume. Not only that, the level of construction spending will increase exponentially during the Olympic Games (see Economic Assessment – Olympic Games). This will increase the demand in paint. PPG has determined the next year’s color trend to be “Black Flame”, or other darker hues. Therefore, we would also increase our inventory in darker hued color paints. Moreover, Japan is the world’s leading nation in technology. For that reason, we will invest in a Sherwin Williams app that uses the camera on customer’s smartphone to scan their houses. The customer can then apply the color of their choosing to their walls through this technology called augmented reality. The purpose of the app is to decrease the number of people with buyer’s remorse in the post-purchase stage. We also believe that technological innovation will make our products more receptive to our target