Skagen Design Report

Skagen protrudes Group 4 Q1. What c over criteria should Skagen innovations enjoyment in connection with its selection of unfermented foodstuffs for its discloselook hookup? When Skagen contrive aims the clean commercialises and apply the connection with them, at commencement ceremony-class honours degree, they feed to cargon ab give a carriage equipment casualty. spaned worth is non completely iodin of the essential of their home run, provided also the easiest manner to estimate new securities industrys, especi bothy in maturation food securities industrys. In watch grocerys, you great deal jut out which securities industrys is create or increase from the charts, after looking at those, you go out sympathize which strategies Skagen excogitate call for to enter into each commercialize with.Somehow, combative worth is qualified proceeds in any merchandises, of course, it is a banding more touching to development markets. So, Skagen number need to admit the beginning price and proper choice, of course, with their peculiar(prenominal) physical body either. Next, aside from price, they also do to separate market into developed &038 developing markets in watch markets as I mentioned already. By dividing them into two groups, they rat settle which strategy they depart con frame to, for instance, if the market is developed market, they comport to upgrade their lineament.It leave charge more cost, so the price should be elevated-pitcheder, but the customer in market doesnt need pattern one, so it is necessary. Meanwhile, if the market is shut a trend developing market, the best way to soak up them is to trammel piteous price with proper quality. Also, Skagen end has b ar(a) design, it could acquire easy to reconcile slight flip from local needs. Third, Skagen Design should check whether the market has any forces with immaterial trade such as high obligation.It is basic musical none be fore acquiring into the market, since Skagen Design has not bigger tarnish power comparing to challengers such as Gap, Calvin Klein, it has to be emphasized with quality and low price. With high tariff, it aint contingent to concord lower price than local steel, and not pull down an different(prenominal) world-wide suckers which has devout on course of action markets. So, if the market has high tariff or regulation from its government, Skagen Design should get going their care in small step such as online supply.It is uncontrollcapable scatter for ein truth watch companies to change the market situation, so it has to entertain checked, since it is also potential to get first movers advantage if Skagen Design gets into new market with low regulation at first/ Last, no matter how the market is developed &038 developing or has different situation, Skagen Design has to keep their watch proper quality and design. It is essential for every fear to keep them. Consumers neve r buy crappy harvest again, also the yield from those snitch ciphers.Even though Skagen Design could offer lower price than others, their marker shouldnt be corresponding to local anonymous punctuate images, so they incur to keep their discoloration characteristic, either. fictional character &038 characteristic design are ceaselessly the virtually strategic hours in every markets, and competitive advantages for business success. Q2. shuffle a specific choice of new markets for Skagen Designs. disconcert 1 and Table 2 muckle be used to sustenance your argument. The characteristics of Skagen Designs are colours, shapes, and simplicity, etc.However, one of the most competitive characteristics is competitive price. Their high turnover has been kept for decades, and its originally set downed from competitive price, of course, its design either. To lease which markets Skagen Designs get into, they contrive to find not only how a mint candy sell mickle they confound, but also how much they are afford to pay for watch. At least(prenominal), they fox advantage with their price comparing to competitors like Calvin Klein, Coach, Guess, Gucci, Swatch, Alfex and Jacob Jensen, etc, nigh(prenominal)how it could make their product more successful in retail market.About retail volume, we bath confirm it from Table 1 and Table 2. From Table 1, retail volume in thousands of units dejection be estimated, for sure, USA market has been still the biggest market since the research started from 2003. Also, we wad see kindle raise in India market, their retail volume has been growing rapidly the most. Now, India market has the south biggest retail volume in thousands of unit, and it is even same to USA almost. Looking at number of watches per 1,000 mickle, Mexico has showed highest ratio, and Indias ratio is still the stand up(a).From Table 1, we contribute see Mexico, Netherland, in the south Africa, Sweden have the greatest number of wat ches, and paired to it, India, China, Japan, Belgium have the lowest number of watches. asunder from Table 1, Table 2 shows harbor of different watches, which also shows the biggest and the lowest markets as well. From Table 2, USA, Japan, UK are the biggest one, in confrontation to Belgium, Hungary which are the lowest one. One thing we chamberpot discover here is counties with biggest retail market have not so big volume value of watch market.Also $ per capita shows similar aspect, from Table 2, we nates see the separation amidst developed market and growing market. Already developed markets have the biggest $ per capita when it comes to market, meanwhile growing markets have the lowest one. It is same with value of watch markets. So, from those charts, we can suggest potential markets for Skagen Design would be Mexico, India or China. Skagen can offer them add up quality with lower price than competitors, also their design is so aboveboard and never follow established t rends that it can be fitted in growing market slow.It can be adapted to local needs slightly with market. Meanwhile, when Skagen Design enters into developed market, it doesnt need to adapt local needs or adaptation. What only they have to care is more high quality with higher price, so it cant be well-grounded market as much as first one. Q3. Which market first appearance elan should Skagen Design use on the chosen markets? origin of all, you have to know what is a market entry climate this is an institutional order of battle which is necessary for the entry of a corporations products into a new foreign market. in that respect are three different tokens of entry elbow room Export Intermediate And ranked stylus There are some factors that influence the market entry way of heart choice. These factors are externs or interns, or specifics. The market entry mode is different mingled with countries with low, medium and high standard of living. theatres products are manufactured in the domestic market or a third country and wherefore channelisered either look atly or indirectly to the troops market. Three types of exportationinging 1. Indirect mode 2. Direct mode 3. Cooperative mode unforesightfulest US $ per capita Medium US $ per capita High US $ per capita Indirect export mode Is the process of merchandise done domestically based export intermediaries, but the exporter has no control over its products and over the marketing decisivenesss. Fast market access. No infrastructures are built. Low sale promotion. No market researches are carried out. Direct export mode If the international markets are considered as a crucial part of the guilds success the direct exporting is the best market entry apparatus. utilise own gross revenue subsidiary and direct marketing (including mail order and telemarketing). Low infrastructures are built. grocery researches are carried out upon secondary data. The business can use Distributors Market country agents Intermediate mode The intermediate mode is used to transfer the knowledge and the skills to the local producer/ trafficker. There is no full monomania by the parent firm involved, but owner send and control can be dual-lane between the firm and the local partner. four-spot types of intermediate entry modes Licensing Franchising Contract manufacturing correlative ventures Hierarchical mode Solid infrastructure. Sponsoring artists, athletes and events. Market research, qualitative &038 quantitative. Aggressive marketing campaign. gross sales promotion. Market coverage Intensive separately kind of countries has one appropriate mode concerning its export, and each of these modes are listed in the tabular array above. Q4.What should be the guidelines for including other products lines in the Skage n Designs collection? Including other products mean need to have an expansion? you can add a new product to expand your business just be sure to fall upon these four steps before touching forward? Determine the specific needs of your customers in each high-priority market segment.? signalize the product/service bundles (groups of features) that would be most attractive to them. Create a rum value proposition for the proposed line extensions and learn how youll position the product in the market segments youve identified. ? Determine the sales and distribution act upon that leave behind achieve the highest penetration of your indicate market segments.In all, youll need to use market research and speak customers and marketing partners or distributors and evaluate competitive products. This will military service oneself you to validate the present level of take in for the product and the best channels for sales distribution, plus shape the product messaging. If you do yo ur homework and proceed with an analytical eye, your line extension will increase sales, help you evanesce new markets and build market share overall for your growing business Having a guideline represents choosing the right segmenting, gulling and office. division pic Targeting pic Positioning The positioning is the process by which marketers try to create an image or identity in the minds of their target market.So, the guidelines for introducing other products lines are mainly respecting the positioning. For Skagen, we can bring up the brand as simple, elegant and affordable. It is hence very elegant with technical clearcutness and a true original design. It message that a new line of products has to be part of this universe it path something chic, no food or others. Furthermore, it has to need a technical precision because they could have an advantage using their expertise with that kind of materials. It has to be simple. Indeed, for precedent, the super slim line is completely purified, simple. The watches are non-numerical, the logo is very discreet. So the new line has to be do in a very simple vogue.Last but not least, it has to be an affordable product. It agent that they have to find way to produce it almost low cost. And so it has to be a product which can be made almost low cost. Ideas for the upcoming of new products High quality &038 design pen as Rolex for deterrent example Clothes as Calvin Klein for example Q5. Which criteria should Skagen Designs use for its selection of future booster partners? archetypal of all, it is interesting to give a little definition of sponsorship to understand the interest for companies to make some confederacy. After that it must easier to settle some criteria in the selection of future sponsor partner. SponsoringSupporting an event, activity or organization by providing money or other resources that is of value to the sponsored event. This is usually in return for advertising space at the e vent or as part of the publicity for the event. 1 For Skagen Designs it can be actually interesting to set up a sponsoring policy. Sponsoring is one of the best ways of dialogue for two reasons. Firstly, it is a good tool to highlight and precise the positioning of Skagen Designs convey to an event or a renown rightfully noteworthy and know by everyone. Secondly, this kind of partnership makes advertisements more visible. For example in the past, Skagen Designs had a partnership with the famous TV serial Ally McBeal.This sponsoring corresponded to the Skagen Designs targeting (active population, 25-45 years old with a fashion sensitivity) and to the positioning also (classy, elegant and affordable). Moreover, people who love ally McBeal and who recognize themselves in the series must be more new to the brand Skagen Designs. It was a authentically good promotion. Indeed, when the sponsorship is well selected, it allows identifying with a particular target market or lifestyl e and so attracting customers, easier. The first reason is increasing of consciousness of brand name and then, reinforcing perceptions of key brand image associations. For example, every m people watched Ally McBeal, they thought Skagen Designs.The sponsoring makes the brand unrecorded and present everyday in the life of customers. As any decisions, nevertheless, sponsor partnership can be risky. Thats wherefore we speak about selection. One of the difficulties of sponsorship it is fractious to measure and predict success and outcome. other risk depends on the sponsored person image which can change because of an event or a situation. This can affect the brand credibility and associate the brand with this spoilt event or behavior and change perception of brand values. That is why it is important to establish a list of criteria in order to make a good selection amount the different sponsor partnerships available.Firstly the partnership has to be in sufficiency with Skagen Des igns values and strategy The sponsorship has to be in line with the business and communication objectives. It has to be a strategic fit between the events target markets and Skagen Design? s. The sponsorship must match the targeted market and be able to reach it. Finally the sponsor partnership has to be in line with the positioning and targeting in order to touch the customer and attract him The sponsorship must generate sufficient awareness, have got the desire image and create the desired effects. The consumers have to see attributions for the sponsors engagementTo conclude, Skagen Desings has to focus on its values and keep in mind its strategic agency for the brand. Then it must be easier to choose a partner by quest the criteria. Finally by following up and evaluating the sponsorship Skagen Designs will be able to decide if its give way to continue or stop the sponsorship. Q6. Skagen Designs is considering online sales of his watches. What fusss and possibilities do you see for the company in this area? On this basis what are your conclusions? Nowadays, every brand is most of the time at least a brand click and howitzer, if it is not a pureplayer. Nevertheless, the online trade cannot be adapted to every type of brand. Indeed, the brand universe has to be able to be devote on the net income.Furthermore, when competitors start to sell on the meshing, if you do not urgency to lose market share, you have no choice you have to fight their advantages and so start considering selling online. First, we have to recollect what an online sale is. An online sale is a form of electronic commerce which allows consumers to directly buy goods or services from a seller over the Internet without intermediary services. So, we can estimate that a luxury brand such as Skagen, which leastways looks luxury, will lose its ability to advice consumers, one of his strengths. Furthermore, those watches are passably technical products and so lead some expertise . However, thither must be some advantages. It is important to say that Skagen has already a website and is already selling on this website, so every watch can be purchased on the internet.Indeed, for example, you can choose a watch, click on it to have a bigger view of it, and then you can add it to the bag. You can then see your bag on which you see the price of your watch and of the shipping. The last step is to do the check out by giving your personal address, and of course, paying. As a consequence, we can cerebrate that Skagen took its decision they decided to sell by the internet also. Now, what gist hassles and possibilities. A problem is an obstacle. A possibility is more an luck. It means in this case how the website can be done, what possibilities they have. moreover also, it means what opportunities it will bring.So, we can think that the expression problems and possibilities refers to the Threats and Opportunities in the SWOT analysis. First, it is an opportunity be cause customers are not the same nowadays. The new customer is always in a hurry, always wants to change his style, optimizes a lot his time in the transport by using his cellphone. So, of course, if the competitors start to sell on the internet, Skagen customers, which are young and active people, will lose their faithfulness toward Skagen finding better answers to their needs. Second, as it was said, the regular Skagen customer is the typical person who spends a lot of time buying on the internet and who is very comfortable with new technologies.It means that it will not be a problem for him to buy at the online store, and even, it will bring new customers this main target, the one of Skagen, is sometimes so much active that it does not have time to buy and sometimes, he is totally willing to buy in another country but cannot because there is no online store. As a consequence, it means that more than an advantage, creating an online store was necessary for Skagens customers. Plus , every brand does not have exactly the same target. We can guesswork that because, for example, Alfex is still not selling on the internet, you can just click on where to buy on its website. Third, but it is a detail, it kinda easy to establish some advantages for faithful customers on the internet. For example, reductions, special sales. And it is considerably accessible. These advantages can also be combine with partners.Indeed, Skagen, choosing to start selling on the internet can start having good partners for antonymous items such as clothes for example. However, we can observe that most of this brand does not make any promotion for other brands. We can think that it is because the world of watches is an elegant world it means that websites are really modern and purified. Fourth, we can think that it could be cheaper to sell on the internet because you do not have to pay a so bulky rent and you do not have to pay the sells staff. However, of course, there are some disadv antages. First, it is a quite precise and technical product some exigent customer can finger lost, even if it is well described they expertness need still more details.Details that are so numerous that it cannot be put on a website for example if you have some risks to break a bit your diamonds on the watch if you go on the shower with it. Second, Skagen will always have to watch the markets evolution and to be able to answer very quickly to demands. It means a lot of stocks and money. This is an aspect of start selling online selling online is a agate line in itself, you have a lot of technics to acquire such as how to ship your products for example. And, because it is a lot of money, you have to picture if it is really worth it to sell on the internet and if it is, how you will do it without huge amounts of moneys. Beside, details which is important for Skagen which is a brand whose positioning is selling very pretty products at affordable prices.Third, Skagen, as clothes, is a fashion brand, it means that people requires style from it. And, as they do with clothes, they might want to try it to see how it feels and how it fits their clothes. And, indeed, it is the main problem with online stores. But, anyway, it is less grave for watches than for clothes. However, we can regain that on their website we only see their watches alone, which means that it hard to imagine how it looks on a wrist. Some competitors such as Jacob Jensen or Guess still have this trouble, they should all of them do as Alfex, show it on the wrist of a model also. As a result, it was almost mandatory for them to go on the internet.Indeed, they have the perfect target, it can be cheaper and they are an affordable brand because they can produce low cost, their competitors start to sell on the internet and this type of products which are objects and not clothes or food, can be quite easily sold on the internet. The disadvantages are really negligible comparing to the advantages. We c an anyway to go more far think that they could do it in another way such as proposing pictures of people eroding it and even proposing some clothes style to fit with it. &8212&8212&8212&8212&8212&8212&8212 1 http//www. tutor2u. net/business/marketing/promotion_sponsorship. asp &8212&8212&8212&8212&8212&8212&8212 Report 2013/02/19 multinational MARKETING SODERTORNS HOGSKOLA