The ABC Washing Machine Company wants to move to the Czech Republic with our front load washers and dryers As the CEO developing, analyzing and executing a marketing strategy is paramount. Evaluation starts with the economic, legal and political concerns in the Czech Republic. As stated in a report from 2014, “The Czech Republic is one of the most stable and prosperous markets in Central Europe. Although the country dropped seven places to 75th in the World Bank’s Doing Business rankings for 2014 (owing largely to faster progress on reforms by other countries), its overall score improved slightly year on year. The Czech Republic moved up nine places to rank 37th out of 144 countries in the WEF Global Competitiveness Report 2014-15.” (www.gov.uk
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ABC plans on taking the high end luxury of front load and altering production and pricing to market to the middle class segment including wealthy segment. The product differentiation will be focused on making sure that our product falls in line with domestically produced washers and dryers, however we will strive to give our machines imported flare to gain the higher end economic segment. The country of the Czech Republic has always been considered a Transitional Economy (TE), the move of numerous major brands into the marketplace means that evaluating the penetration process is extremely important. The research for the brands in the marketplace is difficult to acquire as the European Monitor guards all the data and actually wants researchers to pay for the information, we are not paying for the information. That being said, we are going to do the best we can with what resourcing we can acquire and use some speculation on our planning …show more content…
Starting with price, the ABC Company will have to execute pricing with a cost-plus strategy, which is pricing at a desired margin over cost, with movement to a penetration strategy that is defined as introducing a product at a low price to induce maximum number of consumers to try it. Based on the fact that average income is not over $20K a year, keeping the price down will be a must to attract the customer. The product being manufactured or assembled in the Czech Republic will assist in the willingness of the consumer to purchase the new product. Promotions utilizing the pull strategy as well as a piece of the push strategy. This will be important to spread the message of the new ABC Front Loading Washing Machines, options of TV Commercials showing the units being built in the Czech Republic will bring loyal customers to domestically produced products to buy, while not losing sight on the fact that the product is going to cost a relatively high portion of the average household income. Last piece of the mix is distributions, getting the product to the consumer. Focused on setting up manufacturing facilities in the Czech Republic, distribution should have small speed bumps in supplying product to the marketplace. The issue will be in the importing of any items that we cannot manufacture on location in the Czech
ABC plans on taking the high end luxury of front load and altering production and pricing to market to the middle class segment including wealthy segment. The product differentiation will be focused on making sure that our product falls in line with domestically produced washers and dryers, however we will strive to give our machines imported flare to gain the higher end economic segment. The country of the Czech Republic has always been considered a Transitional Economy (TE), the move of numerous major brands into the marketplace means that evaluating the penetration process is extremely important. The research for the brands in the marketplace is difficult to acquire as the European Monitor guards all the data and actually wants researchers to pay for the information, we are not paying for the information. That being said, we are going to do the best we can with what resourcing we can acquire and use some speculation on our planning …show more content…
Starting with price, the ABC Company will have to execute pricing with a cost-plus strategy, which is pricing at a desired margin over cost, with movement to a penetration strategy that is defined as introducing a product at a low price to induce maximum number of consumers to try it. Based on the fact that average income is not over $20K a year, keeping the price down will be a must to attract the customer. The product being manufactured or assembled in the Czech Republic will assist in the willingness of the consumer to purchase the new product. Promotions utilizing the pull strategy as well as a piece of the push strategy. This will be important to spread the message of the new ABC Front Loading Washing Machines, options of TV Commercials showing the units being built in the Czech Republic will bring loyal customers to domestically produced products to buy, while not losing sight on the fact that the product is going to cost a relatively high portion of the average household income. Last piece of the mix is distributions, getting the product to the consumer. Focused on setting up manufacturing facilities in the Czech Republic, distribution should have small speed bumps in supplying product to the marketplace. The issue will be in the importing of any items that we cannot manufacture on location in the Czech