Birmingham City University: Lotto's Sri Lanka Market Entry Report

This report presents an international market entry plan for Lotto, a sportswear and footwear manufacturer, focusing on the Sri Lankan market. The analysis begins with a target market appraisal, evaluating the size, growth prospects, competitor profiles (Nike, Adidas, Fila, Reebok, Puma), and consumer buying behavior in Sri Lanka. The report then recommends a market entry method, considering factors such as product nature, business dynamics, potential cost advantages, and the selection of local partners. A comprehensive marketing strategy is outlined, incorporating growth strategies (Ansoff Matrix), competitive strategies (Porter’s generic strategies, Blue Ocean strategy), STP analysis, and a unique selling proposition. Finally, the report concludes with marketing mix recommendations, detailing product offerings (types, assortment), pricing strategies, distribution channels, and promotional activities. The report leverages data from various sources to support its findings and recommendations, providing a strategic roadmap for Lotto's successful entry into the Sri Lankan market.

Entering in Sri Lankan market
Lotto

Table of Contents
INTRODUCTION...........................................................................................................................3
INTERNATIONAL MARKET ENTRY PLAN.............................................................................3
1. Sri Lanka Target Market Appraisal....................................................................................3

INTRODUCTION
Breaking into the foreign markets can be referd to as very critical task. Expanding the
business to the overseas market is considered as one of the greatest task for any company and
critical evaluation has to be done so as to become the leader in that market. Understanding the
target market is one of the key thing in order to have the successful and positive outcome while
going global. Market entry strategy includes the methods of planning, delivering of services or
goods to a new market and distribution of the product in the same target market. While entering
into the new market the company should analyse the external environmental factors that are
responsible for its growth. This report is based on one of the famous brand that is planing to
enter into the new market that is Sri Lanka to expand its business. The company deals in
sportswear and footwear categories. This report will help in analysing the Sri Lankan market
factors such as Size, growth prospects, competitors profile and buying behaviour of the
consumer over their. The entry methods will be discussed and the means of partnering with the
local sub heads to start their business will be analysed.
INTERNATIONAL MARKET ENTRY PLAN
1. Sri Lanka Target Market Appraisal
Size: SL sports industry is one of the reputed industry in the world for its quality. As the
country is having the population of around 21.44 million and the GDP is around 87.59bn us
dollars it is one of the best growing market. The SL market is capable of producing 15mn shoes
annually hence it is the recommended country to expand the business for any sportswear brand.
The large number of UK retailers watches their cost and lead-time savings grow exponentially -
and it all began when they set up their regional Supply Chain Logistic Hubs in Sri Lanka.
Growth: As the market of Sri Lanka has been observed as one of the best market for
growth and expansion prospectus. Over few years this industry has shown the trends to become
the best market. For the Companies like Lotto it provides the best opportunity for growth as the
market has not yet become saturate. The increasing population can be seen as the aspect that will
help the company to grow. The current market condition of Sri Lanka is suitable for the company
to grow their branches and the increase their productivity.
Competitor profile: As the country is one of the best producers of the sports wear
which is widely recognised. It has been the hub for most of the brand to produce and sell their

products there. The competition that will be face by Lotto Italia while expanding their business
in Sri Lanka would be from the rivals brands already having their operations there. These
companies are Nike, Adidas, Fila, Reebok, Puma etc. They have the good customer base and
offers heavy discount to the customers to attract them. The market availability of their products
is very high. So the company has to do some research work to tackle the competition.
External Trends: The external trends in Sri Lanka plays a vital role in deciding whether
to expand the business in that country or not. As this factor includes the social, legal and
technological factors that affects the operation of the business. As 20bn euro sports market is the
key for making the decision for entering the market. The total income in this sector for the
country in 2011 has been accounted for 4.2bn dollar. So this trend helps the company in deciding
whether to enter the market or not.
Buying behaviour: In Sri Lanka brand consciousness is very high amongst both males
and females. Store loyalty is probably higher than product/brand loyalty. Sri Lankans are very
price conscious, but will not accept any quality for a lower price. Further, the level of price
sensitivity increases when income decreases. In general most Sri Lankans look for 'value-for-
money.' So the brands such as Lotto who have the motive of providing the quality product at a
reasonable price can become successful here. The people of Sri Lanka are moving their
preference towards the brand. So it will make the company to sell the product more efficiently.
As it is a hub of sportswear market, the prices of shoes are generally range from low to medium
price.