Dressmann Challenges (some of them) But also Problem definition: Not cracked the Danish or the German market Competition (low price/collusion?) in these markets Demographics Old-fashioned image/consumeradvertising dissonance Possible long-term consequences of new approaches in Denmark/Germany Stagnating in Norway, Sweden and (to some extent) Finland Dressmann But also A well-oiled and dedicated team/unified corporate culture Earning a lot of money (but could earn more!) Good position in N, S, SF, and doing well in Iceland/Latvia Problem definition: How can Dressmann develop its “affordable” image to be more upscale without losing its backbone customers and at the same time keep a uniform marketing approach and (thereby) become the market leader in Northern Europe? BI/C.A.Solberg 2010 © 2018 Taylor & Francis

Market position in local market Long-term goal: Market leader in Northern Europe Dressmann Market position in local market Market growth High Low Strong Weak Established markets: Sweden, Norway, Finland Investment markets: Denmark, Germany? Exploration markets: Poland, Baltic states? ? Secondary markets: Latvia, Iceland Problem: Stagnating established markets and their investment markets aren’t really stars – yet! © 2018 Taylor & Francis BI/C.A.Solberg 2010

How should Dressmann position itself in its existing markets? Traditional Denmark Germany? Dressmann Norway Sweden TV spots in Norway and Sweden 2005–2007 Who are our main competitors here?? How many Dressmaniacs will follow us on this voyage? Finland Northern Europe External Internal Iceland Latvia?? Innovative How should Dressmann position itself in its existing markets? © 2018 Taylor & Francis BI/C.A.Solberg 2010

Is there really scope for standardisation? Dressmann Sales Norway/ Sweden/ Finland Latvia/ Iceland Denmark/ Germany Intro- duction Growth Maturing Stagnation Decline © 2018 Taylor & Francis BI/C.A.Solberg 2010

Does this matrix apply to Dressmann? Multi-local advertiser Firm has in-depth market insight and a good resource base. Still it should carry out local advertising, warranted by the diversity of market situations “Global” advertiser Firm has a strong position in “global” markets, and a relatively good resource base. Should involve local managers/distributors in the development of ad strategies. “Glocal” advertising “Global” advertiser Firm has a strong position in “global” markets, and a relatively good resource base. Should involve local managers/distributors in the development of ad strategies. “Glocal” advertising. High Dressmann Dressmann Ability to carry out international marketing communication Local advertiser Firm has limited leverage (resources and market knowledge) relative to its local rep and ad agency. Customised ads in every market Export advertiser Firm has limited leverage (resources and market knowledge) relative to its representatives and ad agency. Standard ads in global markets? Low Multi-local Global Industry globality Does this matrix apply to Dressmann? © 2018 Taylor & Francis BI/C.A.Solberg 2010

One price in all the markets? Multilocal price setter Market leaders in selected markets Unexposed to global forces => Mainly local competition Market oriented pricing, adapted to each market. High price strategy Global price leader “Global” market leaders Global competition Cost/market-oriented pricing with “global” high prices based on “one world price” Global price leader “Global” market leaders Global competition Cost/market oriented pricing with “global” high prices based on “one world price” High Dressmann Dressmann Preparedness for internationalisation Local price follower Limited resources and leverage Dependent on local representatives Unexposed to global forces Cost-oriented, standard prices – but willing to yield in price discussions (if exporting is a priority) Global price adaptor Newcomers to global markets Global competition Competitive-oriented pricing – adapting to the global leaders Pressed on margins Low Multi-local Global Industry globality One price in all the markets? Or the same price level relative to competitors? Carl Arthur Solberg 2010 © 2018 Taylor & Francis

Dressmann Confederation Federation Local barons Civil war Deep Dressmann Dressmann Confederation Federation Market insight at HQ Local barons Civil war Shallow Mainly the local rep Mainly the central HQ Influence on marketing decisions Where is Dressmann headed as it expands into new markets? Does it have enough clout at HQ to maintain HQ control? © 2018 Taylor & Francis BI/C.A.Solberg 2010

Three challenges: Dressmann How to “travel” from different positions in the “image grid” to eventually end up in the same location in all markets? What role should Denmark and Germany test-design stores play in this process? As forerunners of a uniform design image? As local variants of a theme? How should Dressmann organise its international marketing team to match these challenges? © 2018 Taylor & Francis BI/C.A.Solberg 2010

Is there any “one solution”? Dressmann Hardly, but one important ingredient would possibly be to organise the marketing department into an international team that leaves some leverage to the two new problem children in the family. Thorough market research is needed in order to find the firm’s position on the conceptual map – in all markets. Whether it should invest in Poland and the other Baltic states is a question of resource allocation. But it needs to do some basic investigations first. © 2018 Taylor & Francis BI/C.A.Solberg 2010

Critical success factors Dressmann Design Pathways to uniform brand image © 2018 Taylor & Francis BI/C.A.Solberg 2010