Segmentation, Targeting and positioning
The company will target the high number of recreation surfers found in Australia’s beaches and coastlines. The other segment will be the surfing sportsmen and women who dominate international surfing sports. Rusty products will be positioned based on the level of quality, price, class, user, application, and attitude.
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The targeted segments will be located based on geographic location, occupation, and professionalism. According to Cant, Strydom & Jooste (2006) segmentation, targeting and positioning of a product success depend as heavily on the adopted marketing mix. Therefore, the 4Ps of the marketing mix should be well researched in this case.
International marketing strategy
The products will have a competitive advantage as they have been made uniquely compared to the existing products in the market. Because of the high surfing levels as a cultural activity, the products will require no further modification. Customers in Australia have a high purchasing power, which will enable high customer reliability. However, the products will be differentiated to accommodate the different targeted segments. For instance, there will be special products for international surfers and the rest of the surfers.
Customers demand always needs to be stimulated. Personal selling and advertisement will be used to promote products. For example, the company will hold shows around the beaches to promote the products. One or two professionals will be endorsed to carry a campaign on the need to have the new surfing board. Promotions will be carried along the beaches where potential customers can be reached.
Other than putting into considerations the legal forces, price escalating factors, and government regulations, the company will adopt premium-priced, hand-made skateboards. The premium prices will range from a wide surf board to a narrow surf board. In other words, size and the purpose of the boards will be considered while pricing the products.
The Surfboards Rusty Company will place its products in strategically accessible points. For example, stores will be placed around the beaches where customers can walk in a have the surfers at affordable prices. However, surfers’ boards will be placed in different areas where products targeting professionals will be placed in different stores. This will ensure convenience and increase reliability through time-saving.
Channels of distribution
The company will have its distribution channels fixed according to convenience and affordability. Dent (2011) note that a well designed and operated distribution channels should be adopted to ensure that products are available to customers at the right time. Some of the distribution channels available for Surfboards Rusty Company are through the use of retailers, distributors, wholesalers, franchise systems, and final-tier channels. The place and the entry of mode determine the distribution channels be adopted by the company.
Modes of entry
According to Ramaswami and Agarwal (1991), the major modes of entry in foreign markets are a sole venture, joint venture, licensing, and exporting. The company will have to choose one of these modes based on three main factors, namely advantages associated with internationalization, advantages associated with the location of the market, and ownership advantages of the firm.
Given the high market potential in Australia’s market, the joint venture would be most preferable. The joint venture allows the company to jointly cooperate with another existing firm in the foreign market. The advantages associated with ownership and locations are very high compared to the other entry modes (Ramaswami & Agarwal (1991).
Cant, M. C., Strydom, J. W. & Jooste, C. J. (2006). Marketing management. Cape Town, SA: Juta
Dent, J. (2011). Distribution channels: Understanding and managing channels to market. London, UK: Kogan Page.
Ramaswami, S., & Agarwal, S. N. (1991). Choice of foreign market entry mode: Impact of ownersip, location, and internationalization factors. Journal of international Business studies, 1-27