BU362 Lecture Notes - Lecture 8: Alternative 3, Brand Equity, French Market
Document Summary
Big, growing car market; trade environment is attractive; few. Setting up a plant, incremental costs, carrying costs. Underlying issues: their product is strong but they have a small market share/are not well-known, need to build brand recognition, do(cid:374)"t ha(cid:448)e a good e(cid:374)ough relatio(cid:374)ship (cid:449)ith us (cid:449)holesalers (cid:894)do(cid:374)"t see pote(cid:374)tial i(cid:374) Improve brand awareness: build relationship with wholesaler, reconsider pricing point. Current marketing mix: product: in-ground and surface hoists, hoist chains, ahv lifts (various size, shape, qeight, and lift capacities, price: ,990, place: distribution through sales force & b2b selling, (catalogue type package). Direct, wholesaler, distributors: promotion: personal selling catalogues, etc. Domestic competition: 16 firms, concentrated, brand awareness is much higher, need to be highly differentiated to succeed. Alternative 2: joint venture: collaborate with bar maisse to enter french market, advantage, control of risk, local partners can help, combine expertise, more resources.
