1. 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

2. 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

3. 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

4. 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

5. 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

6. 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

7. 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

8. 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

9. 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

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