Market Entry Strategies and Positioning

This assignment delves into the complexities of market entry strategies and their influence on a firm's positioning within a target market. Students are tasked with analyzing diverse market entry modes, such as exporting, joint ventures, licensing, and foreign direct investment, while considering their implications for brand perception, competitive advantage, and market share. The assignment encourages the application of theoretical frameworks and real-world case studies to demonstrate a comprehensive understanding of market entry strategies and their crucial role in achieving sustainable success in international markets.

Running head: Market Entry and STP for DV8 Leather Company 1
Global Marketing
Market Entry and STP

Market Entry and STP for DV8 Leather Company 2
Contents
Part 1...........................................................................................................................................................3
Market Entry...........................................................................................................................................3
Joint ventures...........................................................................................................................................4
Partnering................................................................................................................................................5
Directing exports for DV8 Leather Company..............................................................................................5
Part 2...........................................................................................................................................................7
Potential market segments.......................................................................................................................7
Strategic approach...................................................................................................................................8
Internally driven organization..................................................................................................................8
Customer driven organization..................................................................................................................8
Market driven organization......................................................................................................................9
Target market segments...........................................................................................................................9
Recommended positioning strategies..........................................................................................................9
References.................................................................................................................................................11

Market Entry and STP for DV8 Leather Company 3
Part 1
Market Entry
A market entry is a strategy which has been planned by organization regarding delivering
services or goods in target market. It is an element to enter in a new market or manage contracts.
Segmentation, targeting and positioning is considered as strategic approach in modern
marketing. The model of STP is useful when building marketing communications plans since it
facilitates to market developers to get engaged with audience and deliver products and services
to them. The DV8 Leather Company is the Australia Company. It deals with supplying and
manufacturing leather. It is the company which has been provided its services outline. It is the
company that launching its products to the market of Australia and along with that it tries to
penetrate the world’s international market. It is the new technology for selling of leather vests,
therefore it is necessary for DV8 Company to make plan before entering into new market.
There are number of ways in which company can enter in foreign market to do business.
There are number of market entry options such as licensing, joint venturing, franchising,
outsourcing, acquisition, direct exporting, global partnering, piggybacking, turnkey projects or
buying a company. These options are regarding market entry options. It is important for the
leather company to analyze the market options in a perfect manner before applying any
marketing strategy option (Mooij, 2013). It has been evaluated that among market entry options,
direct exporting will be effective for DV8 Leather Company. It is not possible for company to
enter in new market applying same theory or strategy. Direct exporting may be the most
appropriate option or strategy for in single market while in another DV8 leather company need to
focus on joint venture and in another company may choose different options of marketing entry

Market Entry and STP for DV8 Leather Company 4
options. There will be various factors which may affect the options of marketing strategy such as
tariff rates, cost of marketing and transportation and the level of adaption of product required.
These factors can enhance the cost to be expected the increase in sales will balance these costs
effectively (Winchester & Lees, 2016).
Directing exporting
Directing exporting is the approach to sell directly products and services in to the market
without getting help from any person. It is the approach which would be implemented after
planning sales program of the company. Company established sales program and turns to
distributor for the purpose to represent them ahead in the market. Agents and distributors are
selected by organization to promote the business ahead and that is why they became familiar
with the organization and represented interests of the company. DV8 Leather Company can
prefer this market entry options to enter in the international country. To follow this approach,
DV8 Leather Company needs to accept certain procedures. Sue to direct exporting DV8 would
be able to recognize that who is the customers of it.
Joint ventures
Joint ventures are an individual term of partnership that includes the creation of a third
managed company which is independently. It is the process which is known by 1+1=3. It
enhances the interest of the company to involve in it, two companies concur to work together in a
market, it can be geographic or product, and build a third company to undertake this. In this
market entry strategy, partner are equal liable towards profit or loss (French, 2017). DV8 Leather
Company can choose this option by involving company as a partner. Sony/Ericsson Cell Phone
is the worth example of joint venture market strategy.

Market Entry and STP for DV8 Leather Company 5
Partnering
Partnering is important while entering in to foreign markets and it has been analyzed that
in some part of the country it is considered as mandatory. Partnering is not limited; it can be
form from easy co-operating marketing arrangements to a sophisticated strategic alliance. It is
very useful strategy in those markets where partners of company are belonging to different
culture; it will be helpful to bring the knowledge of local market (Moroko & Uncles, 2010).
Directing exports for DV8 Leather Company
Directing exports will be suitable marketing entry options for DV8 Leather Company. It
is the option which allows company to know that the customers of this company are. It has so
many advantageous forms such as the belief of customers will enhance when they get to know
the direct dealer of tier products. Customers will be able to direct approach without getting any
barrier and provide the feedback about the services of the DV8 Company. Company gets slightly
effective preventions of trademark, copyrights and patents. DV8 Leather Company will be able
to get engaged in the process of export. All transactions can be controlled easily and the possible
chances of disloyalty will be decreased (Foedermayr & Diamantopoulos, 2010). As the business
of DV8 Leather Company will reach at international level through directing exports, it will bring
great flexibility to enhance or redirect the efforts of marketing. DV8 leather company can easily
expands it business by hire an export sales manager, establish a separate department of export,
setup a sales subsidiary of exports and form a foreign sales branch. Hiring of Export sales
manager is a simplest form to expand its business through directing exports, export sales
manager leads all activities regarding all export activities. If company establishes a separate
department of export, is widely self contained and operates without any restriction of the
operations of domestic. Export sales subsidiary will separate DV8 Company from the rest of the

Market Entry and STP for DV8 Leather Company 6
organization. A foreign sales branch is not a legal organization. It is a branch which is able to
handle the sales, promotional efforts and distribution with the help of geographic area and sells
to a target customer of an organization (Tansel, 2015).
Every coin has two aspects; one is positive and another is negative. The disadvantages of
DV8 Leather Company are that company need to be financially more strong. It is the approach
which takes a lot of time to implement. It is important in this approach to build a cultivate
customer base. At every level company needs to take all responsibility at its behalf. It can be
implemented by hiring export sales manager, but it is required for DV8 Company to get updated
of all activities which is not possible every time. In the term of expanding business or bringing
flexibility in the business, this approach will not be suitable. The most disadvantage form of
direct exporting is that company need to more logistic in the term of handling all the
transactions. Apart from that the disadvantages of direct exporting larger material from DV8
Leather Company can be greater initial outlay, larger risks, difficultly in maintenance of stocks,
higher cost of distributions, dependency on distributors and greater managerial ability (Surdu,
Mellahi & Glaister, 2015).

Market Entry and STP for DV8 Leather Company 7
Part 2
Potential market segments
Market segmentation is the process in which broader range of groups is classified as per
their interest and demand. In this element existing and potential customers are involved in to
subgroups of customers which are based on some type of characteristics. The potential market
segments for DV8 Leather Company can be psychographic segment, demographic segment, use
based segment, benefit segment and behavioral segments. DV8 Leather Company will be chosen
direct exporting option of marketing entry option. The products can be bought by youth because
it provides the leather product which is able to become a great attraction in the view of youth.
Geographic: potential customers of DV8 Leather Company are in a local state or a national
marketplace segment. Geographic segment is crucial for Leather Company as it tries to enter in
international market by direct exporting. Business need to recognize the specific boundaries
within which it will do business (Laufs & Schwens, 2014).
Demographic: potential customers of DV8 Leather Company are recognized by criteria such as
religion, gender, race, marital status, occupation, income level and educational level. A target
market of DV8 Leather Company would include certain factors such as number of employees,
varieties in products, customer size and annual review.
Psychographic: it has been analyzed that number of business offers products on the basis of
attitudes and beliefs of target customers. It can be distinguished as per consumer market and
business market. In the term of consumer market, life style, trendy, status, hobby, fun seeking

Market Entry and STP for DV8 Leather Company 8
and social responsible covers consumer market. Business market involves innovative, employee
relation, conservatives and industry leader.
Behaviorist: products and services are consumer for a variety of reasons. It is important for DV8
Leather Company to determine what those reasons are. It can be loyalty, cost and brand. It is the
approach which involves number of questions in it such as reason for purpose, amount of service
or products purchased, taken time to make a decision to purchase and number of times of
purchasing (Wang, Bronevetsky, Beaumont, Stadler, Bao, Smith & Chapman, 2017).
Strategic approach
The strategic approach is a process of planning to achieve a goal of an organization by
elaborating its strategy, directions and making decisions. DV8 Leather Company should be
specific about the strategic approach. Strategic approaches are being used by DV8 Leather
Company are internally driven organization, customer driven organization and market driven
organization (Baker, 2014).
Internally driven organization
DV8 Leather Company are internally driven, which shows that their strategy is driven by what
they have done in the past. It has the weak point as well that the in-house employees are not
anticipating amendments that are happening in the market place (Schlegelmilch, 2016).
Customer driven organization
Customer driven organization is the organization which main focus has on issues of customers
and they try to close the issues by listening them carefully. The weakness of this approach is that
this approach finishes up trying to be all rules and things to all people.

Market Entry and STP for DV8 Leather Company 9
Market driven organization
It is last approach of strategic approaches which demonstrates the targeted market in which they
will serve their services and how they will add value. It will help to understand the growth of an
organization (Fund, Shahsavari, Panwar, Erkip & Rangan, 2016).
Target market segments
DV8 Leather Company deals with aviators’ bags, caps, belts, customer leather, leather
belts and wrist braids. It has been analyzed that the population of youth in Australia is good
enough. The target market of DV8 Leather Company should be focused on custom leather
because it specializes in custom leather. Buffalo leather waist, cow hide bikers waist coat, oil
keep bikers vest, kangaroo whip laced biker vest and custom made bike seats are some products
of DV8 Leather Company. Company should focus on youth of the Australia. This is the
generation which is most interested in sports adventure and trendy things. Psychographic
segmentation is mainly observed in this report in the term of DV8 Leather Company. It is the
target segment of DV8 Leather Company because it distinguishes the market according to the
lifestyle of customers. Customer gets high quality of leather material with reasonable rate in the
variety. It considers the variance of potential effects of buying behavior such as attitude, interest,
activities and expectation of customers.
Recommended positioning strategies
Positioning refers the communication of essential benefits to the potential customers.
DV8 Leather Company needs to make specific group for every products because it is not
possible to available everything for everyone. For instance, athletic equipment makers make
equipments for beginners and advanced player. DV8 Leather Company should manufacture

Market Entry and STP for DV8 Leather Company 10
leather products from child to old one by specifying groups. It should follow low price strategy
along with high price strategy (Wirtz & Lovelock, 2017). It should position itself as affordable
options through selling low priced goods. It will be benefited to the company to make a high
sales volume (Bernstein, 2014). High price strategy should be followed by company only in the
condition of creating a perceived value. The distribution of its products should be done in high
quality places. It will be encouraged positioning of the brand in the market because people will
start to believe that these products are the top of the lines models and desire them more. As it
discussed that DV8 leather company will choose direct exporting marketing entry option so it is
required to maintain its positioning for being loyal for target market.

Market Entry and STP for DV8 Leather Company 11
References
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Bernstein, J. S. (2014). Identifying Market Segments, Selecting Target Markets, and Positioning
the Offer. In Standing Room Only (pp. 125-143). Palgrave Macmillan US.
Bickhoff, N., Hollensen, S., & Opresnik, M. (2014). Step 2: Strategic and Operative Marketing
Planning—Segmenting, Targeting, Positioning. In The Quintessence of Marketing (pp.
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De Mooij, M. (2013). Global marketing and advertising: Understanding cultural paradoxes.
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Foedermayr, E. K., & Diamantopoulos, A. (2010). Market segmentation in practice: Review of
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Strategic Marketing, 16(3), 223-265.
French, J. (2017). The importance of segmentation in social marketing strategy. In Segmentation
in Social Marketing (pp. 25-40). Springer Singapore.
Fund, F., Shahsavari, S., Panwar, S. S., Erkip, E., & Rangan, S. (2016). Do open resources
encourage entry into the millimeter wave cellular service market?. In Proceedings of the
Eighth Wireless of the Students, by the Students, and for the Students Workshop (pp. 12-
14). ACM.

Market Entry and STP for DV8 Leather Company 12
Laufs, K., & Schwens, C. (2014). Foreign market entry mode choice of small and medium-sized
enterprises: A systematic review and future research agenda. International Business
Review, 23(6), 1109-1126.
Moroko, L., & Uncles, M. D. (2010). Employer branding and market segmentation. Journal of
Brand Management, 17(3), 181-196.
Schlegelmilch, B. B. (2016). Entering Global Markets. In Global Marketing Strategy (pp. 43-
61). Springer International Publishing.
Surdu, I. M., Mellahi, K., & Glaister, K. (2015, January). Learning and institutional change:
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launch “NovaRelief” in India. An analysis.
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Market Entry and STP for DV8 Leather Company 13
Winchester, M., & Lees, G. (2016). An Investigation of the Success of Targeting Newspapers
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Wirtz, J., & Lovelock, C. (2017). Positioning Services in Competitive Markets. World Scientific.