Marketing Plan Project
Description of the company, its operations, and decision of expansion
Superb Company, stylized as SUPERB, is an American business under the information technology and communications sector, established in 1996. The headquarters of Superb Company are in New York City. Superb has about 10000 workers with 150 of them engaging in research and development. It seeks to expand to other countries starting with Spain. Its aim is to realize over 150,000 workers in more than 15 countries around the globe by 2030. It currently has three research and development institutes in the US; and in 2015, Superb invested 100 million dollars in research and development, an increase of 10 million dollars from 2014. In 2015, the company made a profit of 55 million dollars. Its products, mainly the D1 smartphone, are currently sold in the US, but the company seeks to expand and enhance its profitability.
Superb established D1 as an innovative form of smartphone particularly for the young generation in the United States. Currently, Superb aims at serving not just customers based in America, but seeks to develop and become the most successful company and greatly reputed international brand. Presently, Superb Company is diversifying with a scope of products such as the D1 smartphone amid others. The majority of smartphone users in the US are progressively endorsing Superb as a commendable product. Attributable to aggressive and tactical marketing endeavors, D1 has turned into the company’s most excellent brand on revenue creation.
Appropriate country for expansion
Superb Company seeks to expand and start operating in Spain. One of the reasons for choosing Spain is because the telecom companies presently operating there have not completely exploited the market since they have not developed Android to the same extent as the iOS (Recio-Rodríguez et al. 1). This signifies that there is a broad sector of the market to take advantage of through the Android application. For the customers in Spain, Superb Company will enhance the improvement of the Android application to get hold of a sizeable audience. This opportunity appears to be amid the most critical for the success of D1 in Spain. Currently, most of the companies operating in Spain target iPhone clients since they have a tendency of using more for every purchase, but with Android commanding over 65% of the US smartphone market, Superb Company is now evaluating these numbers closely.
Planned entry strategy
The best market entry strategy for the expansion of Superb Company’s operations into the Spanish market is the joint venture between the company and Apple Inc. In the joint venture, both Superb Company and Apple Inc. will make arrangements (usually competing) with the purpose of gaining ample strength for the venture with each company holding a sizeable share both in financially managing and running the business. The joint venture will act as a substitute to the creation of a fully owned manufacturing endeavor and will provide the companies with benefits that encompass sharing of the required capital and possible risk, for instance, minimal government intervention attributable to the creation of the union. Other gains encompass more stringent management of production, marketing, promotion, and other business approaches, as well as enhanced local market intellect offered in the joint venture entry method (Chang, Chung, and Moon 317-337). The greatest drawback that Superb Company and Apple Inc. could face in the Spanish market is the occurrence of conflicts of interest between them, particularly on concerns such as the sharing of profits, contribution of the money required for investment, the mode of managing the business, and other main marketing approaches. Nevertheless, similar to other instances of partnership, there are numerous approaches for the minimization of the threats of conflict of interest through cautiously selecting ideas, and having regular meetings to discuss the arising issues to reach amicable solutions.
Taking into consideration the joint venture strategy, in addition to Spanish and global expansion approaches, Superb Company will keep on expanding through first establishing a robust manufacturing and marketing presence in Spain with the help of Apple Inc. Apple Inc. will offer insights on the operations of the government, rules, internal affairs in the market, and suitable distribution mechanisms. In the course of five years, Superb will gradually amass capital, labor force, and knowledge of the Spanish market that will assist it to stand alone and have the capacity of alleviating any possible risks. Although profit will be shared in the joint venture, disagreements might arise in the course of marketing endeavors, and management may generate challenges. Superb could seek to start operating independently after five years in the joint venture. The joint venture approach is significant as it will help Superb Company to boost its performance and reputation in the Spanish market, enhance its funding and management proficiencies, and expand major business competences to refine technological expertise (Calvo-Porral et al. 309).
Critical operational factors that will affect the company
Mobile phones’ market in Spain developed considerably in 2015 when judged against 2014 as it marked a 5% improvement in volume, which is attributable to the enhancement in internet connectivity around the nation, increased employment, and a broad scope of alternatives in medium and low-cost phones having enhanced technological attributes. Furthermore, mobile phone operators in the country have resolved to stop giving out cellphones the moment their clients get into a contract, a move that has raised the number of mobile phones sold within the country. In a bid to counter the existing crisis, the Spanish government embarked on numerous restrictive monetary strategies that influenced the information communication and technology industry strongly. Among such strategies, tax increment may be amid the most detrimental for the sector. Increasing the taxes signified reduced buying power for mobile phone customers and considering that products from telecommunication companies are not necessities, the industry could experience a tremendous decrease in sales. Nevertheless, not all strategies by the government affect the telecommunication sector negatively. In 2013, the Spanish government established a strategy to promote information communication and technology companies by enhancing success in this area. The government provides grants and special financing plans to existing and new companies (Lin and Pazgal 94-103). Such acts of assistance are beneficial, but considering how enormous the required ventures in this sector is, telecommunication companies such as Superb have much to do to realize triumph and sustainability.
Cultural profile of the local area
The aspect associated with culture, environment, and stakeholders are of great significance for Superb Company’s entry into the Spanish market (Samiee 659-661). This will necessitate the directors of the company to seek ways of boosting social awareness and undertake measures such as waste processing and the application of renewable energy, in addition to corporate social responsibility initiatives in its initial operations in the market. This will promote positive reception by the local government, distributors, consumers, suppliers, and other stakeholders. The Spanish government began liberation endeavors on the telecommunication sector in 1987, and complete liberation was eventually realized in 2003. From that moment, the hindrances of entry were decreased significantly although a few are still extant and make it challenging for companies to venture into the market. Superb will hire a diverse workforce sourced within Spain. Some of the major hindrances to the entry in the market that Superb Company is likely to experience encompass Know-how, Fix Outlays, and Brand Differentiation to mention a few. In this regard, Superb Company will require huge ventures in technology supplies and connectivity boosters. Since such an investment demands not just a onetime outlay but regular maintenance and fixing expenses, the required capital is high, but the joint venture between Superb Company and Apple Inc. will offer adequate resources to satisfy the high requirement.
Country Analysis
Cultural Analysis
The standard of education in Spain is not as high as in the US, although it is progressively improving. In this regard, Superb Company will select some of the executives it hires from Spain to go to the US for some further training, which will also ensure that they benefit from international experience and improvement of language proficiencies. Currently, the Spanish government has initiated programs for the promotion of equal opportunities with respect to job stipulations. In this regard, Superb Company will consider suitable incorporation of women, who have for a long time been discriminated against, in its labor force. Moreover, regulations necessitating the employment of people with disabilities in Spain demand Superb Company to ensure that at least 2% of its personnel are individuals from this group (Yang 239).
Cultural factors such as religion, social formations, business practices and customs, and political and legal frameworks have a powerful impact on the success of Superb Company in Spain. These aspects will have a strong influence on Superb Company attributable to the increasing demand for mobile phones and internet connectivity. The application of the internet in D1 coupled with its low price will appeal to a huge segment of the Spanish market. The demand for D1 will be particularly high because of the recent decrease in the usage of landlines in Spain. In this regard, the Spanish population will switch from landlines to the D1 smartphone. Moreover, some consumers will replace the house landlines with the Superb Company’s smartphone. Superb Company will be keen to follow the set labor laws and safeguard the welfare of its employees to avoid conflict between the management and the employees or the government. The company will also adhere to the General Law of Telecommunications to ensure collaboration that will assist it spread its network to a wide customer base and invest in the country fruitfully (Yang 239).
Economic Analysis
Spain stands at the 14th position globally regarding nominal Gross Domestic Product (GDP) and is amid the major nations with respect to purchasing power parity. It has a population of 46.8 million people and its GDP per capita is about 30590 dollars. Spain is hence ranked as a high-income economy and is one of the nations that have exceedingly high human advancement. After the 2007-2008 financial crises, the economy of the nation dropped into recession, and the country suffered a series of poor macroeconomic performance (with high joblessness being the worst). Increased levels of unemployment created difficult conditions for the majority of the families since even the employed experienced reduction of salaries, which consequently affected savings and buying-power negatively. This created a difficult situation for new businesses venturing into the market and deteriorated the economic situation of the country. Nevertheless, the joint venture by Superb Company and Apple Inc. will create projects to boost employment opportunities and focus on the local population to occupy positions within the company (Yang 239). This will go a long way to bettering the economic situation of the country. Since there are just a few trade restrictions for Superb Company in Spain, the company will exploit the aspects associated with scientific and technological structures to ensure that it is not phased out in the market.
Market Audit and Competitive Market Analysis
When marketing D1 in Spain, the first thing ought to be the development of an apparent approach into the manner in which the smartphone will appeal to would-be consumers. Particularly, the company will determine the cost, technological expertise, and internet connectivity as the fundamental needs that the product will satisfy. Moreover, irrespective of the excellence of D1, it will experience strong competition in the market. Some of the competitors in the market encompass Bq, GeeksPhone, and Silent Circle to mention a few. To suit a wide scope of consumers in the Spanish market, Superb should regularly modify the existing model of D1 and keep innovating through the knowledge and expertise gained in the venture.
Pricing and promotion will act as significant marketing strategies that the company will employ to attract customers in the Spanish market. Superb Company will employ price and promotion in its efforts of increasing the customer base. Sales promotion (for instance, free trials, discounts, contests, and coupons) will attract consumers who may end up developing loyalty to D1 (Ripollés, Blesa, and Monferrer 648-666). Similarly, reducing the price of D1 compared to other smartphones in the market will draw consumers and increase sales. Getting ready to combat the competitors and their major competitive benefit will enable D1 to react via such things as price reduction or increasing advertisements. Most importantly, the company will incorporate its brand name, logo, and D1 into the non-advert content of media, which include print media, music, TVs, videogames, online through such things as social media, and emails to mention a few. This will be an effective means of reaching and communicating with the customers.
Works Cited
Calvo-Porral, Cristina, and Jean-Pierre Lévy-Mangin. “Influence of switching costs and satisfaction on loyalty towards smartphone service providers.” International Journal of Mobile Communications 14.4 (2016): 309.
Chang, Sea‐Jin, Jaiho Chung, and Jon Moon. “When do wholly owned subsidiaries perform better than joint ventures?” Strategic Management Journal 34.3 (2013): 317-337.
Lin, Yuanfang, and Amit Pazgal. “Hide supremacy or admit inferiority: Market entry strategies in response to consumer informational needs.” Customer Needs and Solutions 3.2 (2016): 94-103.
Recio-Rodríguez, José, Carlos Martín-Cantera, Natividad González-Viejo, Amparo Gómez-Arranz, Maria Arietaleanizbeascoa, Yolanda Schmolling-Guinovart, and Jose Maderuelo-Fernandez. “Effectiveness of a smartphone application for improving healthy lifestyles, a randomized clinical trial (EVIDENT II): Study protocol.” BMC public health 14.1 (2014): 1.
Ripollés, María, Andreu Blesa, and Diego Monferrer. “Factors enhancing the choice of higher resource commitment entry modes in international new ventures.” International Business Review 21.4 (2012): 648-666.
Samiee, Saeed. “International market-entry mode decisions: Cultural distance’s role in classifying partnerships versus sole ownership.” Journal of Business Research 66.5 (2013): 659-661.
Yang, Jessie. “The use and abuse of patents in the smartphone wars: A need for change.” Journal of Law, Technology, & the Internet 5.1 (2014): 239.