Business to business marketing management

INTERNATIONAL MARKETING
STUDENT DETAILS
STUDENT DETAILS

MARKET ENTRY PLAN 1
Table of Contents
Introduction................................................................................................................................2
The profile of Sydney and Melbourne market in relation with the purchase and consumption
of stylish bags and fond of leather goods...................................................................................3
Market Segmentation.............................................................................................................3
Market entry strategy.................................................................................................................5
Frameworks for pricing, distribution and promotional strategies..............................................6
Pros and Cons of collaboration market entry mode...................................................................6
Pros.........................................................................................................................................6
Cons of the collaboration entry level strategy........................................................................8
Conclusion................................................................................................................................10
References................................................................................................................................11

MARKET ENTRY PLAN 2
Introduction
Market entry strategy is the planned and delivery method so that an organization can
deliver their specific goods or services to a new targeted market. In terms of import and
export, market entry refers to the creation and establishment of contracts in a foreign country
(Zimmerman & Blythe, 2017). For this report, selected company is the Java Pty Ltd. The
headquarter of the company is situated in China. In 2010, Java Pty Ltd. was established and
the company makes stylish bags. Now, the management of the organization is planning to
establish their operations in the Australia. In Australia, Java Pty Ltd is mainly targeting
Sydney and Melbourne city. In this report, there will be discussion about the profile of the
targeted market with the operations of the company because it is important to study the
behaviour of the targeted audience in the targeted market. Apart from this, effective market
entry mode will be identified in this report. Later on, the pros and cons of the chosen market
entry mode will be discussed.

MARKET ENTRY PLAN 3
The profile of Sydney and Melbourne market in relation with the purchase and
consumption of stylish bags and fond of leather goods
The company wants to establish their business of stylish bags and fond of leather
goods in the market of Sydney and Melbourne. Before establishing their business, it is
required that management should conduct a check on the profile of the market for judging the
psychological parameters of the targeted audience in relation with the products that the
company is going to launch (Abdullah & Safari, 2018). The people of Melbourne and Sydney
consider stylish bags and fond of leather goods at priority while thinking about their fashion
accessories. Traditionally, the designer fashion business has traditionally dominated by ready
to accept accessories but since 2012, it has been noticed that social media has transformed the
fashion accessories business in Australia from ready to accept cycle to the lucrative
accessories market. Thus, the company have to work accordingly the current market cycle in
order to fascinate buyers towards. As it is also analysed that the company may face intense
competition from the Coach Handbags, Marc Jacobs, Gucci, Chanel, Source, Louis Vuitton,
etc. Apart from this, according to the statistics by Australian Fashion Council it is analysed
that in 2018, Australian fashion industry stood at the net worth of $11.7billion (Aguelakakis
& Yankelevich, 2019).
Market Segmentation
In this part, market research will be done on the bases to divide a market potential into
groups and segments based on different characteristics. This segmentation will be done on 4
bases such as demographic segmentation, psychographic segmentation, behavioural
segmentation and geographic segmentation.

MARKET ENTRY PLAN 4
Demographic segmentation:
The company is targeting upper- and middle-class income group people. The
marketing management is deciding for targeting all the people who lies in the age group of 17
to 55 years. Java Pty Ltd. offers premium quality leather bags which will costs between $150
to $700 in the Australian market. The company is targeting people who are like to have
stylish bags and who are financially sound (Carr, Hawkins & Westberg, 2017).
Geographic segmentation:
As already discussed, Java Pty Ltd is mainly targeting the Sydney, Melbourne and
other major cities of the Australia. The Australian stylish and sustainable handbag industry is
standing in the fast-paced norms, it is the opportunity for the Java Pty Ltd to establish
effective and efficient market operations in the country.
Psychographic segmentation:
In Australian market, Java Pty Ltd is going to utilize the psychographic segmentation
of the people such as lifestyle and positive psychology of the fashion related goods. By
targeting this psychographic state, the marketing management can specifically fascinate
customers in order to empower customers to purchase accessories of the Java Pty Ltd.
Behavioural segmentation:
The company is targeted those audience who loves to purchase stylish and utility
leather bags. The growth of the entertainment and fashion industry in Australian has
positively impacted the handbags industry in the country (Cesinger, et. al., 2016).

MARKET ENTRY PLAN 5
Market entry strategy
In order to accomplish objectives in the Australian market, Java Pty Ltd. should
utilize the strategy of collaboration with local ventures. This entry mode is suggested by
analysing the operational cycle of the business. As collaboration is the effective way through
which the business can become more innovative and this entry mode will help the business to
establish their operation effectively in the guidance of their collaborating partner. Apart from
this, collaboration entry mode will help the business house to stay ahead of the competition, it
will turn their ideas into reality, it will allow business to access insights and advice,
collaborating partners will also help the employees to develops the required skills, etc
(Chernev, 2018).
By collaborating with the local ventures, the management of the company can become
familiar with the actual condition of the market. For example: according to the statistics, the
fashion bags and other fashion accessories industry grows at a rate of 12.34% in Australia.
However, after entering in the Australian market, Java Pty Ltd can experience different
results. On the other hand, if the management has opt the collaboration entry strategy then
their joint venture partner will effectively help them to analyse the actual state of the market.
Apart from this, there are various legislation in the country for the foreign direct investment
the company have to follow all the legislations in order to establish effective operations
(Chou, Bandera & Thomas, 2017). Thus, it is suggested that the company should first engage
with their collaborating partner and they should fulfil all the requirements of the laws which
are marked by the Australian Competition and Consumer Commission. Moreover,
collaboration entry strategy will help the company to effectively fulfil all the legal
requirements because if the company fails at fulfilling the legal requirements then it can put
the management in the serious legal trouble (Ellram & Murfield, 2019).

MARKET ENTRY PLAN 6
Frameworks for pricing, distribution and promotional strategies
Pricing: Java Pty Ltd should set their price $150 to $700 because in demographic
segmentation it is concluded that the company is mainly targeting upper middle class people
who belongs from the financially sound category. Although it is recommended that at the
initial stage the company should sell products at low prices and it will help the company to
attract large number of customers towards themselves (Hedegaard-Soerensen, Jensen &
Tofteng, 2018).
Distribution: At the initial stage the company can follow two type of distribution
channel that are manufacturer to retailer to consumer and manufacturer to consumer.
Following these channels will help the business to lower down their cost (Jang, Lee & Yoon,
2017).
Promotional strategies: It is suggested that the company should primarily focus on the
social media promotional tactics in order to fascinate large number of people. The company
can also take advantage of the influencer marketing strategies to gain better results. Although,
influencer marketing strategies is slightly costlier than the other social media promotional
strategies (Johnsen, 2018).
Pros and Cons of collaboration market entry mode
Pros
 Better division of labour:
Collaboration entry strategy signifies better division of labour. As collaboration will
empower the company to conduct business operations with the combine workforce. In other
words, when Java Pty Ltd chooses to joint venture with any local stylish bag business then
the workforce of that local bag business will help the workforce of the Java Pty Ltd to learn
and proceed their operations according to the market of the Australia (Keegan, 2017).

MARKET ENTRY PLAN 7
 More balance will be brough to the decision-making process:
Collaboration encourages the competition and open-mindedness in the business.
Resultant, it encourages the effective decision-making process within the business house
(Mikhaylov, Esteve & Campion, 2018).
 Collaboration also improves corporate relationships:
Collaboration process improves corporate relationships of the business. For example:
when two business collaborate with each other then it positively shapes the relations of
both companies. Apart from this, it is also noticed that collaboration helps both
businesses to gain benefit from each other (Serrano-Hernandez, Juari, Faulin & Perez-
Bernabeu, 2017).
 This strategy will help the business house to study about the language and cultural
differences:
Irrespective of the having the modernization and massive influence of the social
media, still it is noticed that there are many cultural differences in both the countries
(Australia and China). Java Pty Ltd is currently operating in the Chinese market and they
have the complete study of their culture with their consumer behaviour. After engaging in
partnership with any local business house, the company will become familiar (in advance)
with the cultural and consumer behaviour of the Australian market (Shrivastava &
Guimarães-Costa, 2017).
 It is cost effective strategy then acquisitions:
This entry strategy is cost effective then the acquisitions of business in the Australian
market. Through the collaboration entry mode, the business house can also gain the major
benefit of shared practical market knowledge about Australian market. For example: after

MARKET ENTRY PLAN 8
joining hands with any local business partner in cost effective way, the management of the
company can also utilize the previous experience of the business in the Australian market
(Zimmerman & Blythe, 2017).
Cons of the collaboration entry level strategy
 Conflicts can be rise in the working style:
At the point when various individuals with remarkable characters are cooperating,
there will be a possible clash in working styles found. Decent variety creates some
novel preferences which ought not to be disregarded. That assorted variety can
likewise hold up a venture when a few specialists achieve undertakings in a manner
that is in opposition to the strategy that others use (Abdullah & Safari, 2018).
 It urges a workforces of collaborating company to expect they have a position of
authority or leadership:
At the point when synergistic structures are in the working environment, there are
more representatives who may feel that they've been given an initiative situation on an
undertaking. Different labourers may feel a similar route inside a similar undertaking.
That makes an issue where there are an excessive number of individuals attempting to
lead utilizing their own thoughts as opposed to attempting to give collective backings.
Should this happen, pressure will in general be made in light of the fact that
everybody in an administration position anticipates that individuals should tail them,
which doesn't generally occur (Aguelakakis & Yankelevich, 2019).
 Collaborative structures can sometimes create conflict:
There may consistently be a sure degree of contradiction inside a group over the key
purposes of a venture. In the event that those differences depend on explicit morals or
ethics, at that point joint effort may make more clash in the working connections than
it settle. At the point when individuals feel like they have an ethical clash with

MARKET ENTRY PLAN 9
somebody, they are more averse to be receptive about the proposed approaches of that
individual. That slows down efficiency, which in the end influences the result of the
work being finished (Carr, Hawkins & Westberg, 2017).
 It may reduce personal interactions:
Since community oriented structures will in general element online devices, the
procedure of cooperation constrains the quantity of individual associations which
happen. Individuals cooperate through video conferencing, online record the board,
and different types of data move. On the off chance that the associations are poor or
restricted in speed, the slack time can lessen ongoing outcomes, which may refute a
portion of the advantages that would ordinarily be gotten with the usage of this
structure (Cesinger, et. al., 2016).

MARKET ENTRY PLAN 10
Conclusion
In this study, it is concluded that the company should utilize the collaboration and
joint venture level entry mode to establish their operations in the Australian market. Through
this entry level mode the company can take advantage to study the Australian market in more
effective and efficient way. Apart from this, it is concluded that at the initial stage the
company should keep their prices low because it will help the management to fascinate large
number of audience. Moreover there are various cons of collaboration entry mode such as
sometimes it creates conflict among the workforce, the collaborating company stated
assuming that they are at the leadership authority, etc. Apart from this, in this study it is also
concluded that the company should force on the social media marketing at their initial stage.

MARKET ENTRY PLAN 11
References
Abdullah, A., & Safari, Z. (2018). Industry collaboration program (ICP): empowering
technology development for national economic growth. Journal of Advanced
Manufacturing Technology, 12(1), 2-20.
Aguelakakis, N., & Yankelevich, A. (2019). Collaborate or consolidate: Assessing the
competitive effects of production joint ventures. Economic Inquiry, 57(1), 73-84.
Carr, J. B., Hawkins, C. V., & Westberg, D. E. (2017). An exploration of collaboration risk in
joint ventures: Perceptions of risk by local economic development officials. Economic
Development Quarterly, 31(3), 210-227.
Cesinger, B., Hughes, M., Mensching, H., Bouncken, R., Fredrich, V., & Kraus, S. (2016). A
socioemotional wealth perspective on how collaboration intensity, trust, and
international market knowledge affect family firms’ multinationality. Journal of World
Business, 51(4), 586-599.
Chernev, A. (2018). Strategic marketing management. Chicago: Cerebellum Press.
Chou, P. B., Bandera, C., & Thomas, E. (2017). A behavioural game theory perspective on
the collaboration between innovative and entrepreneurial firms. International Journal
of Work Innovation, 2(1), 6-31.
Ellram, L. M., & Murfield, M. L. U. (2019). Supply chain management in industrial
marketing–Relationships matter. Industrial Marketing Management, 79(1), 36-45.
Hedegaard-Soerensen, L., Jensen, C. R., & Tofteng, D. M. B. (2018). Interdisciplinary
collaboration as a prerequisite for inclusive education. European Journal of Special
Needs Education, 33(3), 382-395.

MARKET ENTRY PLAN 12
Jang, H., Lee, K., & Yoon, B. (2017). Development of an open innovation model for R&D
collaboration between large firms and small-medium enterprises (SMEs) in
manufacturing industries. International Journal of Innovation Management, 21(01),
175-200.
Johnsen, T. E. (2018). Purchasing and supply management in an industrial marketing
perspective. Industrial Marketing Management, 69, 91-97.
Keegan, W. J. (2017). Global marketing management. London: Pearson.
Mikhaylov, S. J., Esteve, M., & Campion, A. (2018). Artificial intelligence for the public
sector: opportunities and challenges of cross-sector collaboration. Philosophical
Transactions of the Royal Society A: Mathematical, Physical and Engineering
Sciences, 376(2128), 201-357.
Serrano-Hernandez, A., Juan, A. A., Faulin, J., & Perez-Bernabeu, E. (2017). Horizontal
collaboration in freight transport: concepts, benefits and environmental challenges.
SORT. Statistics and Operations Research Transactions, 41(2), 393-414.
Shrivastava, P., & Guimarães-Costa, N. (2017). Achieving environmental sustainability: The
case for multi-layered collaboration across disciplines and players. Technological
Forecasting and Social Change, 116, 340-346.
Zimmerman, A., & Blythe, J. (2017). Business to business marketing management.
Abingdon: Routledge.