International Marketing Report: Market Entry Strategies

This report provides a comprehensive analysis of the international marketing strategies employed by Dellinger Australia and GoCycle. Dellinger Australia plans to enter the Asia Pacific region through exporting, while GoCycle aims to penetrate the emerging African market via contract manufacturing. The report delves into market segmentation, with Dellinger utilizing demographic segmentation and GoCycle employing psychographic segmentation. It explores the value propositions of both companies and details their respective marketing mixes, including product, price, place, and promotion strategies. The report also examines the effective use of characteristic segmentation requirements, including demographic and lifestyle segmentation, with considerations for measurability, accessibility, and actionability. A comparative analysis highlights the contrasting approaches of the two companies in their international expansion efforts, considering factors like market size, economic conditions, and target customer profiles. The report concludes by summarizing the key differences in their strategies to address the challenges of international marketing, such as cultural differences and political risks.

Running head: INTERNATIONAL MARKETING
International Marketing
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Executive Summary
This report highlights the international marketing of Dellinger Australia and GoCycle. Dellinger
Australia is going to enter Asia Pacific region and GoCycle is going to enter emerging African
region. In addition, Dellinger Australia is taking the exporting technique to enter the market,
whereas, GoCycle is going to take contract manufacturing technique. In this report, the market
segmentation of the target market has been explained. Dellinger Australia is chosen demographic
segmentation and GoCycle is chosen psychographic segmentation. In addition, value
propositions of the two organisations have been given. Marketing mix of the two chosen
organisations has been provided. In addition, market segmentation of demographic and lifestyle
segmentation have been given with measurable, accessible and actionable. Finally, sufficient
contrast of the two chosen organisations has been provided to show the effective market
segmentation.

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Table of Contents
Introduction......................................................................................................................................3
Overview of two chosen organisations............................................................................................3
1. Rationale, theoretical assessment of problem of international marketing...................................4
a. Market entry.............................................................................................................................4
b. International expansion............................................................................................................4
c. Emerging markets....................................................................................................................5
2. Technical assessment of positioning and market fit requirements..............................................5
a. Target Customer.......................................................................................................................5
b. Value proposition.....................................................................................................................6
c. Marketing mix..........................................................................................................................7
3. Effective use of characteristic segmentation requirements.........................................................9
a. Demographic variable..............................................................................................................9
b. Lifestyle segmentation...........................................................................................................10
Conclusion.....................................................................................................................................11
Reference List................................................................................................................................12

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Introduction
Brands and their products that originate in a country are accepted in other countries as
well. Consumers have now many options to choose from the similar products in a market
(Papadopoulos & Heslop, 2014). Companies need to ensure that the offered products must be
affordable and high quality. In this report, risks, rationale and technical requirements of market
selection and market entry consideration, as well as market and positioning statement, are given.
In this report, two electric bikes companies are chosen to show the contrast of market selection
and market segmentation choices.
Overview of two chosen organisations
Dillenger started its business in the year 2007 by the founders of a small Aussie-based
engineering firm. This organisation started to build a custom bike and e-bike was the hobby
project of this business (Dillengerelectricbikes.com.au, 2018). Now Dillenger is a registered
company in Queensland, Australia and it is selling limited models of e-bikes. Sometimes, the
production of the e-bikes takes the back seat when they develop the new engineered models.
GoCycle is an e-bike product manufactured by Karbon Kinetics Limited. GoCycle was
established by Richard Thrope in the year 2002 and he once had worked for McLaren
(Gocyclecom, 2018). Richard Thrope had knowledge in making lightweight racing car and he
used his enthusiasm to make lightweight and excellent e-bikes. The best feature of this e-bike is
that the riders can fold up the bicycles and carry in a case. The maximum sales of these e-bikes
are done in Europe.

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1. Rationale, theoretical assessment of problem of international marketing
Entry choice decision of an organisation is determined by the market size in which it is going to
enter.
a. Market entry
Dillenger Australia sells e-bikes in Queensland area and it is going to take exporting as a
mode of market entry in the Asia Pacific region. Dillenger Australia is going to take cooperative
exporting in this region where e-bikes can take the market. As stated by De Mooji (2015), the
organisations need to enter an agreement with another foreign organisation in which the partner
company will its distribution network to sell the goods to the exporters.
GoCycle sells its products in the European market and it is going to sell its products in
the African market. They can take contract manufacturing as its mode of entry in which they will
arrange a local manufacturer to manufacture of the parts. In e-bike industry, GoCycle can have
the benefit of cost saving and flexibility of manufacturing and marketing of the products.
b. International expansion
Dillenger Australia can take the partner up a strategy for expanding its business in Asia
Pacific region as it will provide Dillenger with the protection of best-in Class Company. Relying
on partners will help the company to expand the business internationally to understand the target
market as well (Samiee, Chabowski & Hult, 2015).
GoCycle is going to take Light Footprint strategy as it is not going to invest hard costs
until the foreign operation in African sector is matured. GoCycle will justify the expenses of the
company in long-term Return on Investment.

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c. Emerging markets
Dillenger Australia is going to take the emerging market of Asia Pacific region as real
GDP of this region is expected the growth of 7.7% (Hair & Lukas, 2016). However, the
challenges of this region are the poverty and management of natural resources. Dillenger is going
to take required medium-term policy responses as e-bikes are needed to provide in cheap prices
to increase sell. Malaysia, China, Thailand, India, Philippines and Indonesia will be a good
choice.
GoCycle has its market in European and American regions. The organisation is
expanding its business in the African region. African region will be a good choice for the
organisation as the population are poor and the economy is trying to bring encyclical recovery.
This region has been experiencing weakest GDP and financial crisis. However, Nigeria and
South Africa would be experiencing growth 2018 (Chaffey & Ellis-Chadwick, 2018).
2. Technical assessment of positioning and market fit requirements
a. Target Customer
Dillenger will enter Asia Pacific region and they can target the psychographic
segmentation of the customers. Psychographic segmentation is based on customers who prefer to
buy selected products based on their choices (Armstrong et al., 2015). Dillenger will try to target
the customers based on personality and lifestyle of the customers. In Malaysia, Thailand and
China, the customers can spend money on e-bikes as they are environment-friendly and
economic conditions of these regions are good. Primary target customers of Dillenger in Asia
Pacific region will be customers who have a good lifestyle and who want to keep themselves
healthy.

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GoCycle will enter African market and they can target the customers based on
demographic segmentation. Demographic segmentation of the customers is based on age, gender,
occupation and socio-economic group (Morgeson, Sharma & Hult, 2015). GoCycle will target
the customers based on the socio-economic condition of the customers as the organisation will
target the customers who belong to the high economic class. The price of GoCycle e-bike is
higher than the other companies; however, the products belong from premium qualities. GoCycle
will have the benefit of prices of the products that they charge and they can provide a discount as
well.
b. Value proposition
The value proposition is the promised value to communicate and deliver to the customers.
Dillenger will take the strategy of innovation as Dillenger spends their resources to innovate the
products. Their R&D team always tries to provide better and developed products to the
customers. Customers in Asia Pacific region can experience and acquired the value of innovation
through e-bikes.

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Figure 1: Value Proposition of Dillenger Australia
(Source: Dillengerelectricbikes.com.au, 2018)
GoCycle will provide value through the promise as GoCycle is a big name in e-bike
market. They will do the branding through advertisement and they will spread the value through
brand adding value to the audiences.
Figure 2: Value Proposition of GoCycle
(Source: Gocycle.com, 2018)
c. Marketing mix
Products
Dillenger and GoCycle both are offering to the target customers e-bikes. E-bikes have
integrated electric motors. Dillenger’s e-bikes have rechargeable batteries and it can offer high-
powered vehicles as well. Dillenger offers limited variants in the Australian market and it will

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offer limited variants in Asia Pacific market as well. On the other side, GoCycle will offer Go2
and Go3 (mainly Pedelecs and monopods) variants to the African customers.
Price
Dillenger is going to take price skimming strategy as this company will offer the e-bikes with
relatively high price in the beginning. In China and Malaysia, the demands of these types of e-
bikes are high. In price skimming, the marketers set the price of the products high in the initial
stage and then lower the price after sometimes (Hoegele, Schmidt & Torgler, 2016). It will help
Dillenger to recover the cost of the products.
On the other side, GoCycle can take low-pricing strategy as African customers cannot
afford extra price. E-bikes are not popular among African, therefore, in order to make popular of
e-bikes, the company needs to take low-pricing strategy. GoCycle can make the competition null
through price leadership strategy.
Place
Dillenger is going to place the products in Asia Pacific region and GoCycle is going to
place the products in the African region. Dillenger is going to export the products from Australia
and they will take the strategy of single distribution line. They will employ intermediaries in
order to distribute the products on time. GoCycle will take the strategy of contract manufacturing
in Africa and they will employ the direct distribution. They will recruit new employees for
expanding the distribution channel.
Promotion

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Dillenger is a small organisation in Australia; therefore, they may not be able to do
expensive promotion in Asia Pacific region. They can take social media strategy as it is cost-
effective medium. This social media strategy will be helpful for the organisation to advertising
using Facebook, Twitter and YouTube to reach large numbers of the customers. On the other
side, GoCycle organisation will take the strategy of sales promotions and advertising using
newspapers and hoardings. GoCycle can spend money on advertising and they will provide
advertisement using out-of-home promotion.
3. Effective use of characteristic segmentation requirements
a. Demographic variable
Demographic segmentation is the market segmentation based on race, age, gender,
religion, education and home and income group of the customers. Demographics can be
segregated into several markets that help the organisation to meet the targets of customers
accurately (Fishman & Cherry, 2016). GoCycle and Dillenger can target the customers in
demographic segmentation basis. Demographic segmentation provides the advantage of getting
the information that is available for them. GoCycle and Dillenger will target the customers on
economic condition basis.
Measurable: Characteristics of customers in Asia Pacific region that they are poor, they
show their preference based on prices and upper middle class can purchase the products if those
are necessary. Size of the market is large as Asia Pacific region is a populated area. In case of the
African region, it is also populated and if lower prices products are offered, people can purchase
their products.
Accessible: The targets of the customers are reachable through advertisements.

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Actionable: It will provide business opportunity by increasing target customers. Good
customer base can help to increase the numbers of customers (Fyhri & Fearnley, 2015).
b. Lifestyle segmentation
The organisations need to identify the lifestyle subgroups according to their choices. The
customers are given with their services and products and the customers choose the brands to
which they are loyal. The customers' needs meet their brand name and company. Lifestyle
segmentation is the symbiotic relationship which can benefit the customers and companies
(Akaka, Vargo & Lusch, 2013). GoCycle and Dillenger Australia can choose the lifestyle of the
customers and both rich section of the Asia Pacific and African regions, people love to stay
healthy.
Measurable: Dellinger Australia is targeting customers in Asia Pacific region where
lifestyles of the upper middle-class people are based money and preferences. Size of the upper
middle-class people is large in China and Malaysia. GoCycle is targeting to African region
where the demand for e-bikes is not high and lifestyles of the rich customers can create the
demand.
Accessible: The target customers of the organisation can be accessed through
advertisements.
Actionable: Profitable business opportunities can be gained through the targeting the
customers who need the e-bikes and creates demand through this.

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Conclusion
It has been noticed that both organisations might take different strategies in order to enter the
international market. Cultural differences, logistics, economic conditions and political risks are
there as international marketing factors. Dellinger Australia targets Asia Pacific market and
GoCycle targets African market and they will take different strategies to enter. They will also
take different customer segmentation strategies in order to meet the objectives.