Assessment 4: Market Entry and STP Strategy Report for Audiofly

This report provides a comprehensive analysis of Audiofly's market entry strategy, focusing on the German market. It begins with an executive summary and outlines the objectives for the first 12 months, emphasizing customer satisfaction, employee management, and promotional strategies. The report delves into the marketing mix, including product, pricing, place, and promotional strategies, specifically tailored for the German market. It also examines the economic evaluation of the market entry, detailing costs and revenue projections. The implementation and control sections cover communication plans, action plan monitoring, and contingency plans, providing a complete strategic overview. The report emphasizes the importance of understanding market trends, customer needs, and cultural nuances to ensure successful market penetration. The report also analyzes the costs associated with various marketing mix strategies, including product modifications and promotional activities, to guide Audiofly's business decisions.

Market Entry and STP
Strategy

TABLE OF CONTENTS
Assessment 4...................................................................................................................................1
Executive Summary.........................................................................................................................1
1. Summary of second project................................................................................................1
Objectives for the first 12 months of the plan:.......................................................................1
2. Marketing mix strategy:.....................................................................................................2
3.2.1 Product strategy.............................................................................................................3
3.2.2 Pricing strategy..............................................................................................................3
3.2.3 Place:.............................................................................................................................4
3.2.4 Communicational Promotional mix:.............................................................................5
4.0. Economic Evaluation.......................................................................................................5
4.0 Implementation and control..............................................................................................8
4.1 Communication plan for implementation of recommendations.......................................8
4.3 Monitoring of action Plan:................................................................................................9
4.4 Contingency plans............................................................................................................9
REFERENCES..............................................................................................................................10

Assessment 4
Executive Summary
In project 2, market opportunities are analysed, then ‘Country/Product Opportunity Brief’
is developed. The opportunities and challenges that exist for product entry into a given country
are highlighted. Research on products/services with which they plan on entering the market is
conducted. In project 3, the focus is given on evaluating all realistic market entry options for the
organisation in target country market. Further, market segments of Germany and the company's
target market and its positioning strategies are discussed. It helped organisation to successfully
establish their business operations in Germany.
1. Summary of second project
The market opportunities and challenges are determined. Research on new products and
services is done which helps organisation to analyse the culture and needs and demands of the
people. The market entry options for Audioflyare discussed and their advantages and
disadvantage are also studied in this report.
Objectives for the first 12 months of the plan:
Building the groove brand:
The main objective of Audiofly is to manufacture products which make long lasting
impact on customers. For this, it has to evaluate the market needs and try to understand the
problems which people are facing so that they can make effective products (Festa, Cuomo,
Metallo and Festa, 2016). The organisation has made in-earphones which are affordable and best
for the music lovers. Further, the main aim of the company is to make product which is
attractive, easily accessible and affordable. This will help them to increase their profits and sales.
Achieve customers satisfaction:
The main objective of the organisation is to achieve customer's satisfaction because first
impression plays an important role in making effective image in the heart of the people (Plan
Your Business Plan, 2017). Audiofly has tried to achieve the trust and confidence of the
Germany people by providing them best services.
Employees management:
The employees are the most important resources for the organisation. They have aimed to
provide best training and package so that they can be motivated and helps them to increase the
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productivity of the organisation. Further, the main objective is to manage the employees and
their activities because their behaviour and understanding level plays an important role in
attracting the customers towards them (Salam, Inam, and Awan, 2015). Goal of the organisation
is to hire the best employees which helps them to solve their tasks and handle challenging
customers complaints and demands.
Promotion:
Audiofly has aimed to increase its brand awareness by increasing promotional strategies.
It has taken help from the social media, printing press and other communicational websites to
increase the awareness of the products. It has conducted conferences and meetings with media of
Germany to communicate effective features, and price of products. This has helped them to
increase awareness of product among people of Germany. They have also made blogs and
Facebook pages to take views of customers (Jin, Kim, and Kim, 2015). They have also provided
various videos on You tube to help the customers and know about their products and their use.
Increase market sale:
The focus of the organisation is to increase overall sale and make profit. It has planned to
increase its sale by 20% by 2019. It can be made possible by increasing quality of products and
aware people about the new product of the company. The focus is on increasing the growth of
the organisation like size of the employees, customers, locations, and stores of the company.
2. Marketing mix strategy:
The organisation has been using marketing mix strategy to develop the desired response
from the target market. . Therefore, it has made some strong objectives to increase its sales in the
new market (Dadzie, Amponsah, Dadzie and Winston, 2017). The organisation has used product
strategy. It has used promotional, distribution, product and pricing strategy to strengthen the
shares of its sales.
4P's of marketing mix:
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3.2.1 Product strategy
The organisation has to sell the products according to the needs and demands of the
customers. . It is recommended that the organisation has to use well developed product strategy
which will help it to avoid overestimating the target market, incorrect pricing products and risks
from unexpected competition (Akrani, 2011). Audiofly has to identify the marketing needs of the
Germany (Paul, 2014). It has to build time frames which help them to achieve their objectives on
time related to launching of new products.
The organisation has used product positioning strategy which helps it to examine in
which segment of the market will it be suitable to launch its new product. It is recommended that
the organisation has to use quality strategy to manufacture high quality goods which increases
the trust of the customers towards the company and they will purchase more goods.
3.2.2 Pricing strategy
Price of new products will directly affect its sales. This is related to the customer's
behaviour as how they perceive the value of the product. The organisation has to understand how
the consumer are satisfied with selling strategy of the product.. For example, it can be priced
higher than its actual price if the behaviour of the consumers is positive. On the other hand, if the
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Illustration 1: The marketing mix
(Source: Grobbelaar, 2012)

value of the product is lower in the eyes of the buyers than it can be under-priced (Ateba and
et.al., 2015). So, it is recommended that the organisation has to analyse the market needs before
launching its new product. Audiofly has used penetration strategy for its new market.
This strategy has helped them to attract more number of customers by offering the
products at lower price. With this process the income do get affected but it has helps them to
aware the people about their products and drive out the profits slowly. The main aim is to gain
the trust of all the customers by providing them good services at lower rate.
Promotion: Promotion is very important factor for organisation to sell its product in the market.
It depends on the theory of marketing or advertising the product. It is the function of the
organisation to attract the customer in different ways. It is the process where the product is made
to reach the customers and make them satisfied with the promotional activities .
3.2.3 Place:
Distribution is the basis of placement. The organisation has to use the best placement
strategy which will help them to determine most suitable channel for marketing the product. It
must be taken care that the new item is available on every store and easily accessible to the
customers. The STP decision of Audiofly plays an important role in deciding where the product
is distributed.
Further, Audiofly has also considered various personnel, physical and process facilities to
deliver their products in better ways to the customers (Baker, 2014). It has employed skilled
employees which helps them to achieve their desired results in the foreign market also. The top
authority of the company has hired people of Germany which can easily understand needs and
culture of their own country and helps them to develop their product according to their needs and
wants. It has also made team of research and development which helps them to make useful
products. They have also concentrated on increasing the value and image of the products by
successfully launching the earphones and wireless Bluetooth (Gürbüz, Albayrak and
Alaybeyoğlu, 2014). These facilities have given the feeling of joy and satisfaction to all music
lovers and other customers. In order to grow business in foreign market the organisation had to
face various challenges and cope up with it to increase its position in the competitive market.
Audiofly has also implemented various processes and plans to increase its sale and productivity.
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Further, it has also provided various offers and discounts on their products to attract more
customers.
3.2.4 Communicational Promotional mix:
Audiofly has used various communication and promotional strategy to promote their
products. They have taken help of media and social networking sites to provide the information
of their new products and their superb features and qualities. Further, they have taken help from
various social networking sites to communicate with the people and taken feedback of different
people to know about their culture, problems and ratings (Ke and Li, 2015).
Further, they have directly communicated with the customers to know about their views
and opinion. So, the organisation has used many promotional activities to interact directly with
the customers.
4.0. Economic Evaluation
Step 1
Audiofly has evaluated market trends and culture of the Germany positively and
analysed the needs and demands of the organisation. To develop new plans and policies, the
organisation has also used promotional marketing mix strategy to raise their profits and sale. The
promotional activities are used in various ways and has helped in making people aware of the
new products of the company. The company has analysed the market share and size of the
people.
It has founded that there are 48,000 customers who are purchasing the products of the
company. The average annual purchase of the goods is A$150 which is nearly touching the
expectation of the company. The organisation has estimated the annual revenue of A$7.2 million
but the net profit it has gained from its business is much larger (Brand, 2015). The promotional
strategy of Audiofly has used different promotional strategies like customer feedback of the
products, social media, mail ordering market, customer referral incentive programs etc. which
has helped it to increase the overall sale of the product in the market. This strategy has helped it
not only to increase its market share but also to enhance the productivity and sale by 2% in the
first year. It was possible because they have used the best promotional and pricing strategies.
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Step 2:
Total market calculations:
Determine the costs of your recommended market entry mode:
Audiofly has established new business in Germany to increase its market value as well as
its position in the international level. It has analysed cost of establishing new business in the
market. organisation used franchising idea to develop its business operations in foreign market
as it provides access to the trade markets and other market which are banned by the government
policies (Giannaki and Harker, 2014). Further, it also helped the company to make its products
patent. The organisation has entered the international market so that they can negotiate with
partners to set up the distribution and promote its products by using different activities like
conferences, rallies, and providing videos of their products and services on You tube. Audiofly
has analysed the costs for establishing new stores and found that it will cost them more than
$216 million.
The cost for organising trade shows, promotional rallies will depend much more on the
areas in which it was served. Further, the company has also used various methods to analyse the
actual costs of the company. (Gürbüz, Albayrak and Alaybeyoğlu, 2014) This also includes the
cost of maintainance and promoting equipment etc. Its costs may depend on how many
customers and employees are involved and what are the areas in which it is promoted.
Step 3
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Determine the costs involved in your recommended marketing mix strategies:
To develop the business in Germany, Audiofly has to determine the cost involved in
marketing mix strategies. In product strategy, the organisation has to lower its prices and
increase its sale so that they can achieve the confidence of the customers (Baker, 2014). The cost
will increase when the organisation has to change or modify their brands to meet customers’
needs. At that time, they have to suffer loss as the products which are manufactured have no use
and the stock which remains for them remain as it is. In other words, the organisation has to
suffer great loss as the products manufactured could not attract the number of people..
The costs in advertising, sales and promotion is very high as it needs lot of money to
arrange the things which make it attractant and meaningful. The average costs for this can be
estimated as $560 thousands. Further, advertisement of the products can be done through social
media websites which also requires large maintenance cost. Further, other methods like pint
press, media will cost 424 million which disturbs their budget (Brand, 2015).
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Distribution strategy will include placement of various stores and outlets. It will cost
them around $3452 million because the cost of construction in Germany is very high. Further,
the company has to look after maintenance costs as well to properly manage its property in
foreign market. Pricing costs also increases when organisation has to lower down the costs of its
products to increase its purchase rate. They have to look after tax, tariff plans and other policies
of the Germany government (Paul, 2014). Sometimes the people also does not show their interest
in purchasing the products. In order to increase the sale in these conditions , the organisation has
to reduce their price which will create great loss to them.
7.4 Step 4
Justification of Audiofly budget
The above cost price for various marketing mix strategy is appropriate. This is because to
implement new business specially in foreign market, requires large amount of money. The
organisation has to look after all the activities which affect their production, sales and profit.
Product strategies requires large amount when the modifications in the goods are made or new
items are manufactured (Baker, 2014). Further, the cost of distribution strategy was much higher
as compared to other strategies because the equipment and other arrangements like sound
system, human power, transportation etc. requires large amount of money. Further, pricing
strategies are also plays significant role in disturbing the budget. This is because the organisation
has to develop various strategies and plans for implementing their new products in the market.
The company has to organise various plans and schemes for the benefits of their customers
which also affects the overall revenue of the company.
4.0 Implementation and control
4.1 Communication plan for implementation of recommendations
Audiofly has used various strategies to implement its activities in the workplace. It has
set the objectives and targets to achieve desired results.
Activity Responsible Start date Completion date
To collect information
of company's progress
by conducting surveys
Human resource
manager
01/03/17 23/03/17
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To encourage people
for purchasing new
products of the
organisation by doing
rallies.
Marketing manager 05/09/17 05/10/17
Human resource manager will conduct surveys and collect information of the company's
progress which help the organisation to evaluate the demands and needs of the organisation. It
has to provide the report of full details within 23 days (Giannakis and Harker, 2014). Further,
next activity which the organisation has conducted included road shows and rallies which help
the customers to directly interact with the company's employees and know the new features of
the products and services (Brand, 2015). Marketing manager is responsible for carrying out the
activities and helping people to know more about new plans and schemes of company. These
surveys and rallies will help organisation to know more about the customers’ needs and choice. It
will also help them to increase their revenue.
4.3 Monitoring of action Plan:
Audiofly can monitor the action plan by increasing their observation and guiding its
members which are organising the events (Christopher, Payne and Ballantyne, 2013). Further, it
can communicate goals and objectives to marketing and human resource manager so that they
can make the strategies according to the future targets.
4.4 Contingency plans
Audiofly has to make backup plans to increase their business in typical situations. It has
to be prepare for taking challenges and risks of new market. Further, they have to make strong
strategies which helps them to perform better in critical competitive market (Baker, 2014). It has
to regularly interact with its employees so that they are aware of the problems which they are
facing.
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REFERENCES
Books and Journals
Festa, G., Cuomo, M.T., Metallo, G. and Festa, A., 2016. The (r) evolution of wine marketing
mix: From the 4Ps to the 4Es. Journal of Business Research. 69(5). pp.1550-1555.
Salam, A., Inam, S.G. and Awan, W.A., 2015. The Impact of Marketing Mix (5 Ps) Elements on
Sales of UPS: A Case of Karachi Market-Buyer's Perspective. Journal of Business
Strategies. 9(1). p.51.
Jin, N., Kim, J. and Kim, K.H., 2015, June. THE SERVICE MARKETING MIX EFFECT ON
CUSTOMER EXPERIENCE AND CUSTOMER EQUITY IN THE SERVICE
INDUSTRY. In 2015 Global Fashion Management Conference at Florence (pp. 838-
844).
Dadzie, K.Q., Amponsah, D.K., Dadzie, C.A. and Winston, E.M., 2017. How Firms Implement
Marketing Strategies in Emerging Markets: An Empirical Assessment of The 4A
Marketing Mix Framework. Journal of Marketing Theory and Practice. 25(3). pp.234-
256.
Paul, T., 2014. Customer Communication Dimension of Marketing Mix-A Review of Gap
between Mutual Fund Investors’ Expectation and Experience. Scholar Journal of
Economics, Business & Management. 1(5). pp.197-202.
Ateba, B.B. and et.al., 2015. Marketing mix: It's role in customer satisfaction in the South
African banking retailing.
Ke, H. and Li, L., 2015, March. Research on the Development of Chinese market Based on 4Ps
Marketing Mix. In 2015 International Conference on Education Technology,
Management and Humanities Science (ETMHS 2015). Atlantis Press.
Baker, M.J., 2014. Marketing strategy and management. Palgrave Macmillan.
Christopher, M., Payne, A. and Ballantyne, D., 2013. Relationship marketing. Taylor & Francis.
Gürbüz, T., Albayrak, Y.E. and Alaybeyoğlu, E., 2014. Criteria weighting and 4P's planning in
marketing using a fuzzy metric distance and AHP hybrid method. International Journal
of Computational Intelligence Systems.7(sup1), pp.94-104.
Brand, M.B., 2015. Collaborating to shared objectives in the public sector: capabilities required
by the individual participant organisation to realise collaborative advantage (Doctoral
dissertation, Kingston University).
Giannakis, D. and Harker, M.J., 2014. Strategic alignment between relationship marketing and
human resource management in financial services organizations. Journal of Strategic
Marketing. 22(5). pp.396-419.
Online
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Akrani, G., 2011. What are Different Types of Production Strategies ? [Online]. Available
through: <http://kalyan-city.blogspot.in/2011/12/what-are-different-types-of-
production.html>. [Accessed on 4th September 2017].
Plan Your Business Plan, 2017. [Online]. Available through:
<https://www.entrepreneur.com/article/38292>. [Accessed on 4th September 2017].
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