Selling value….. ….Market Mode

Slides:



Advertisements
Similar presentations
Module V: Introduction to International Business Practices
Advertisements

Business Legal Checklist for Purchasing A Digital Media Company Using Videogame Developers & Publishers As Case Studies.
E-Marketplaces.
Milton Law. National Brand vendors or Private label This is a National brand product made by ConAgra Foods for any one who wants to sell this item. Private.
Local products and regional marketing Experiences from the Netherlands René de Bruin Dutch foundation for local products (SPN)
ValueMathics SWAT ANALYSIS. The SWAT analysis is a new generation balanced scorecard that uses elements of The Magic Pallet to analyse the potential of.
McGraw-Hill/Irwin Copyright © 2009 by the McGraw-Hill Companies, Inc. All rights reserved.
Structural change in the food industry Lecture 31 Economics of Food Markets Alan Matthews.
Chapter Questions What factors should a company review before deciding to expand? How can companies evaluate and select specific markets to enter? What.
Structural change in the food industry Lecture 31 Economics of Food Markets Alan Matthews.
Part One Business Markets and Business Marketing.
Chapter Questions What factors should a company review before deciding to go abroad? How can companies evaluate and select specific foreign markets to.
21 Tapping into Global Markets
Chapter 12 Global Marketing Channels and Physical Distribution
Today's Topics Why international expansion? How to select a market International market research Selecting a mode of market entry.
ValueMathics MARKET ENTRY MODE. Matchmaking Matchmaking is reflected in the market mode. This is the way in which a company uses its strongest value activities.
MARKETING MANAGEMENT 12th edition
The Sales Function and Multi-Sales Channels
Outline Introduction What is a supply chain?
1.
BUSINESS MANAGEMENT PAVONE CHAPTER 1, LESSON 1 THE NATURE OF BUSINESS.
Business Markets and Business Marketing CHAPTER 1.
PLACE. Place Make the product convenient for the target customers to purchase Includes all company activities involved in making the product available.
Marketing Management Marketing 6201
Chapter 11 Participation and Leadership in the Marketing–Procurement Channels.
Entering The U.S. Market Michael RomaniesKOTRA 2008 Managing PartnerDallas, TX VARConnection.com Business Blogger: AllBusiness.com – Operational Excellence.
WHEN I THINK OF “BUSINESS”, WHAT TYPE OF BUSINESS DO I THINK OF FIRST? WHY DID YOU THINK OF THAT BUSINESS?
Business in Action 6e Bovée/Thill Distribution and Marketing Logistics Chapter 15.
PLACE  It is the final component of the 4 P´s of the marketing mix.  Place refers to the distribution of a product, for example: how to get to the consumer.
Copyright © 2007 Pearson Education Canada 19-1 International Trade and Canada 1. 1/3 of our jobs depend on international trade. 2. 9,00 new jobs created.
Chapter 2: The value chain
Advertising and Sales Promotion ©2013 Cengage Learning. All Rights Reserved. Chapter 5.
Business in Action 6e Bovée/Thill Distribution and Marketing Logistics Chapter 15.
CH 13. GLOBAL CHANNELS & PHYSICAL DISTRIBUTION  Channels for Consumer Products and Services  Channels for Industrial Products  Establishing Channels.
 CHANNELS OF DISTRIBUTION  DISTRIBUTION STRATEGY  SUPPLY CHAIN MANAGEMENT/LOGISTICS Place (Distribution)
How do companies enter foreign markets International Business I.
International Marketing.  What is a Business Market? ◦ Companies that purchase products for the operation of a business or for re-sale.  Five different.
International Business II Instructor: Evrim Tören
Unit 3 - The Marketing Mix
Risk Levels for Global Entry
Chapter 3 Logistics in Practice
The Global Marketplace
GTL manages these industries:
Welcome Business Partners By: Neemrana Motors
Michael E. Porter Born in Professors in Harvard Business School.
Sectors of industry.
Introduction to Marketing
Marketing Management Lecture 1 Introduction to Marketing Management
MARKETING MANAGEMENT 12th edition
The Characteristics of Organization Buying Behaviour
Good vs Evil Distribution Math  You need paper & pencil
MARKETING MANAGEMENT 12th edition
What is Marketing? Marketing is societal process by which individuals and groups obtain what they need and want through creating, offering and freely.
The Global Marketplace
Lecture Five Foreign Market Entry Modes
Business to Business Marketing
21 Tapping into Global Markets
Chapter 4 B2B E-Commerce.
21 Tapping into Global Markets
Licensing A contractual agreement whereby one company (the licensor) makes an asset available to another company (the licensee) in exchange for royalties,
Entry Mode Choice.
Operation modes in international markets
Chapter 4 B2B E-Commerce.
Business marketing defined
Introduction to Marketing
Place - Channels of Distribution/ International Marketing
Licensing A contractual agreement whereby one company (the licensor) makes an asset available to another company (the licensee) in exchange for royalties,
Porter’s Five Forces A framework for analysing the nature of competition within an industry and potential for profit.
Operations Management
Introduction to Business-to-Business (B2B) Marketing
Presentation transcript:

Selling value….. ….Market Mode ValueMathics Selling value….. ….Market Mode

Market entry options There are several options to enter a market. We call these options : market modes The choice depends on the outcome of the SWAT analysis i.e. what are the strong points –unique value proposition- of the company The options highlight the capabilities of a company in the five main activities in its value chain: TECHNOLOGY PRODUCTION LOGISTICS MARKETING SUPPORT In some sectors, the market modes have specific names, like “maquila” or “CMT” in the garments sector In this presentation, we highlight the market modes in the sector “Manufactures”

Contract farming ++ +++ ++ - + Variety +++ +++ - ++ ++ TECHNOLOGY PRODUCTION LOGISTICS MARKETING SUPPORT AGRICULTURE Outgrowing + +++ + - + Contract farming ++ +++ ++ - + Variety +++ +++ - ++ ++ Brand/variety +++ +++ +++ +++ +++ GARMENTS CMT/Maquila + +++ + - + FOB + +++ ++ - ++ Sourcing ++ +++ ++ + ++ Brand/variety +++ +++ ++ +++ +++ INDUSTRIAL Contract manufacturing + +++ + - - Subcontracting ++ +++ ++ - + License manufacturing - ++ +++ +++ +++ Private label manufact. +++ +++ + +++ +++ Brand manufacturing +++ +++ +++ +++ +++ SERVICES BPO/Call center + +++ ++ + +++ KPO/ITO/Engineering ++ +++ +++ + +++ IP/Own content +++ ++ + + - Brand ++ ++ ++ +++ + TOURISM Tour handler@destination- - ++ + - + Tour handler/transport - +++ ++ - ++ Tour operator/packages + +++ +++ + +++ Brand +++ + ++ +++ ++

1. Contract manufacturing TECHNOLOGY Seller concentrates on production or execution and leaves technology, design, marketing to buyer -low value adding. Typical trade partners are A-brands, companies with simple after sales requirements PRODUCTION LOGISTICS COST MARKETING SUPPORT SELLER BUYER CONSUMER

Example: CMT/Maquila TECHNOLOGY PRODUCTION LOGISTICS COST MARKETING SUPPORT SELLER CONSUMER

2. Sub-contracting TECHNOLOGY TECHNOLOGY PRODUCTION LOGISTICS COST Seller produces under specifications of buyer,sources all materials. Buyer concentates on logistics, marketing and after sales. Typical trade partners are large retail chains, T1/ OEM’s, firms with more complex after sales requirements. TECHNOLOGY TECHNOLOGY PRODUCTION LOGISTICS COST MARKETING SUPPORT SELLER BUYER CONSUMER

Example: Cosmetics - sprayers TECHNOLOGY TECHNOLOGY PRODUCTION LOGISTICS COST MARKETING SUPPORT SPRAYER LTD. “CHANEL” CONSUMER

Example: Automotive – T2 Tier 2 –piston manufacturer Tier 1 – engine manufacturer OEM – truck manufacturer

3. License manufacturing Seller has captive (regional) markets, but lacks the technology or design capacity. Sources technology from third parties and concentrates on marketing. Typical alliances are with enineering firms, design studios, laboratories TECHNOLOGY PRODUCTION LOGISTICS COST MARKETING SUPPORT SELLER BUYER CONSUMER

3. License manufacturing – 2 options “License and buy back” : Buyer provides the design, drafts, formulation of product, often trough a design studio Buyer provides sometimes a “secret component” Seller takes care of production Other modes : Seller takes care of marketing, sometimes under own label, sometimes under licensor’s brand Seller takes care of outgoing logistics Suitable for regional markets, beware of marketing restrictions from licensor

3. License manufacturing FREE MARKETS BLOCKED MARKETS LICENSOR LICENSEE

Example: Food processing TECHNOLOGY TECHNOLOGY PRODUCTION LOGISTICS COST MARKETING SUPPORT BOTTLER COCA COLA CONSUMER

4. Private label manufacturing Seller has a unique technology or design, production or execution facilities, but lacks/does not want to get involved in marketing after sales. Typical trade partners are retail stores, B-brands, OEM’s. TECHNOLOGY PRODUCTION LOGISTICS LOGISTICS COST MARKETING SUPPORT SELLER BUYER CONSUMER

Example: Automotive – car assembly TECHNOLOGY PRODUCTION LOGISTICS LOGISTICS COST MARKETING SUPPORT MAGNA STEYR CHRYSLER CONSUMER

Example: Oil industry TECHNOLOGY PRODUCTION LOGISTICS LOGISTICS COST MARKETING SUPPORT SHELL CONSUMER

Example: Food processing TECHNOLOGY PRODUCTION LOGISTICS LOGISTICS COST MARKETING SUPPORT SELLER MORNING FRESH CONSUMER

Example: The supermarket shelf FIGHTING BRAND HOUSE BRAND A -BRAND

Example: Accessories – sourcing TECHNOLOGY PRODUCTION LOGISTICS LOGISTICS COST MARKETING SUPPORT UMBRALLA MNF. VODAFONE CONSUMER

5. Brand manufacturing TECHNOLOGY Seller has own technology, content or design, markets its products or service under own brand through trade channels or on the web. Typical trade partners are distributors, retail, -or direct sales PRODUCTION LOGISTICS COST MARKETING SUPPORT SELLER BUYER CONSUMER

Example: Garments - brand TECHNOLOGY PRODUCTION LOGISTICS COST MARKETING SUPPORT CLEVER MODA S.A. RETAIL CONSUMER

Example: Food processing - brand TECHNOLOGY PRODUCTION LOGISTICS COST MARKETING SUPPORT BUYER CONSUMER