Market Selection and Entry Mode

M spell Cristal thr hotshot reality(prenominal) Marketing Executive Summary This report analyses how Cristal stack chose the United Kingdom as its European lauchpad for its MCristal industrious environ. MCristal hollers use the earnest Field Technology (NFC) to enable cashless m unityy transaction. Cristal potful chose to do a strategic in alliance with T- alert to overcome some amount of contrasted market hurdles. The partnership also needs to partner with galactic retail chains similar Tesco, Aldi, and with the airline companies etc. to invest in NFC larboard machines.The report also analyses the associations marketing mix of harvest-home, charge, progress and place. Table of Content Introduction In to sidereal days reality of eminently paced environment with a constant need to be in the frontline of scientific advances, owing the risingest supple ph peerlesss with the latest features is a must corroborate that people line up for hours to get. The return t hat I am firing to portray is currently commissioned and available in lacquer with European countries and USA trying hard to replicate the same success in their own countries.The name of the product is the M-Pay enabled Cristal mobile phones, simply called MCristal. The product, although gift on the use of real engine room, is fictional. M-Pay uses the Near Field Communication (NFC) engineering science. The NFC whole kit and boodle with short range frequency that gives a signal from, in this case, the customers mobile phone to some other terminal (3). With this technology, via M-Pay, one can digest for goods and function cashlessly, by MCristal. The mobile phone allow for get under ones skin a act inserted in it that forget store debit card, credit card randomness and/or prepaid voucher card on it.It go away hold back a ? 200 pounds per transaction limit. You could use the mobile phone to pay back for wide range of purposes from paying for groceries to paying for a plane ticket. every one forget bring forth to do is, touch the mobile phone on the cash-less compensation point, insert a quartette digit ain pin number on the mobile phone to approve and entertain it away the transaction. (2) The idea behind the creation of the MCristal is that on that point is a juicyer(prenominal) see of leaving your wallet behind than your cellphoneular phone phone. This product from the fictional Nipponese technology giant Cristal Corporation.This high society, put uped in the 1979 has grown rapidly into one of the forerunners of technology in the 21st century. Not only has it invented technology to knack the everyday life of individuals but it also uses raw(a) technology to arrive at sassy softw ar and new products. Its cell phone range, with its latest features, touch on that of Sharp and Panasonic in Japan. It now wants to introduce its range of MCristal phones in the European Market. This report lead analyse which outlandish Cristal C orporation should focus on launching its phones, how it should enter the market and how it should handle its marketing mix. acres Selection drawframe drawrect portray One All countries Since the company Cristal Corporation wants to introduce its MCristal phone in Europe, we take over with a list of all the 27 member states of the European Union. away of these countries, we leave behind narrow it down to those countries that have a mobile cell subscription of to a greater extent(prenominal)(prenominal) than 10,000,000, whose per capita income is more than $30,000 a year and whose urforbidding population is more than 5,000,000. Stage Two Priliminary screening Macro AnalysisAfter tapering off it down, we are left with 8 countries France, Germany, Greece, Italy, Netherland, Spain, Sweden, United Kingdom (Appendix). At this full point, we should do a preliminary screening taking into account the macro criteria of social, efficacious, political, economic, technological and enviro nmental influences on the outcome. Below is the ideal pestle for the ideal democracy. ensample Pestle for the Ideal plain Social The sylvan that we are steering on should have a high heartyistic culture where individuals assume values to products and where people are perceived to have a higher status due to the products they own.The country should also have a large demographic in the range of 16-60. Legal While looking into the legal aspect of the country, we should look into the various local anaesthetic al-Qaeda(prenominal), international and home domestic laws. Domestic laws Since the company is trying to penetrate a new country and also going for a strategic alliance with another company, on that point whitethorn exist potential legal problems. The potential country therefrom shouldnt have high take aim of bureaucratism and red tapism as we would want to move in efficiently and with the least time wasted.Also, the local laws shouldnt ban or discourage new entrants into their country olibanum overprotecting their own telecommunication industry and the local companies in that industry. International Laws Since the company wants to penetrate into the European market, it leave behind have to surveil the norms and laws set apart by the European Union and will have to abide by any quotas or restrictions imposed. Besides quantity laws, it will have to follow the quality laws as well.Home unsophisticated laws Besides these two, the company will have to also follow laws set by its home country. There may be cases where the home country may ban the company from entering a country due to the instability of the give tongue to European country. Other than that, the home country will also have its own quality standards, allowed export quantity, price allocation etc. which will have to be followed by the company. Political The company should focus on those countries that have had a stable government continuously over the years.The company also require s the country to be a democratic country, leaning more towards capitalism than socialism. Economic The country that the company should focus on should have a high GDP (of over $30,000). This is necessary in exhibition for the individuals to pay for the MCristal sound. Technological The country should use a high direct of technological advanced/innovated products in its daily life. Environmental influences The target country should be a take aimed country with a high level of infrastructural facility. Majority of the population should live in urban areas.As this company needs to work with various different types businesses ranging from market stores to transportation companies and to develop cashless transaction points, there is a need for high infrastructure handiness in the country. Taking these factors into consideration, we preliminary screen the countries exploitation the Risk abridgment table below. 1=Low 2=Some/Little 3=Medium 4= Risky 5=Very Risky Stage 3 Weighted Envi ronment Criteria After elimination in stage two, we are left with France, Germany, Italy, Netherland, Sweden and the United Kingdom.In this stage, we now assign weights to authorized environmental criteria. The Criteria that we have chosen are a) Advancement in telecom b) Market share of the top mobile service provider. Advancement in telecommunication is important as, being a new product and using a new technology, to implement that into a new country there should exist already established norms and standards in telecommunication. The company will have to collaborate with (at least at the beginning) with one service provider. Thus, there is a need for the top web service provider in the country to have a large market share. ,2,3,4,6 = Ranks 1,2,3,4,5,6= Ranks Stage 4 final exam Selection Criteria From the previous stage, we are left with France, Italy and the United Kingdom. We have eliminated Germany, Netherland and Sweden because although the country may be good at a certain f actor, it was found to be lacking at the other factor and for this company to be successfully established in a country, there needs to be a balance between the two factors. In this stage, we shall eliminate establish on the demand for high technology mobile phones. Thus, the ranked preference of the country to enter isUnited Kingdom France Market Entry modal value As the company needs to partner with a mobile network service provider, it will consider those door modes which offer an affiliation with another company. Thus, we have identified three possible modes of entry. These are joystick Venture, Strategic Alliance, and Merger and Acquisition. The chart below shows the criteria of judgement for these three modes of entry. 1,2,3 are the ranks From the in a higher place table, we can see that there exists a tie between Joint Venture and Strategic Alliance. The company will choose the Strategic alliance.The biggest mobile network provider for the United Kingdom is T-mobile (4) wi th total number of subscribers more than 32 million. A strategic alliance between Cristal Corporation and T-mobile will open up the existing customer base of T-mobile for Cristal Corporations reward. Marketing Mix Product The M-Pay enabled Cristal Phone is the first of its kind in the United Kingdom. This product provides a broadcast for mobile payment facility for various entities like at grocery stores, for airline tickets, train tickets etc.At a later stage, the technology may be adapted to remove the necessity of even purchasing tickets etc. Product Adaptation The mobile phone and the M-Pay device will be in English language and not in Nipponese so that the customers can use the product efficiently. Assessing Product suitability Competive advantage Since the product doesnt have any competitors at present, it will boost monopolistic advantage. Market Acceptance The product combines already available technology in a new form. United Kingdom, being high on the materialist fact or, will at least give the product a try.Also, since it is high the materialistic factor, individuals have the want to own the newest technology products like the MCristal phone. benefit Potential The sale of the phone plus the 1% commission aerated on using the M-Payment will be the primary(prenominal) profit fashioning avenue for the product. Further investment The company needs to invest in NCF interfaces for major chains of supermarkets, airlines, train etc. There is a misadventure of sharing the cost of installing the NCF interfaces with the other companies as it is for the benefit of both. Managing International ProductsPackaging The MCristal Phone will come in a discolor box with blue borders. In the middle, there will be malleable see-through covering through which you can see the cell phone inside. The packaging will have the Cristal Corporation logo on the top left hand corner with the words MCristal under it. On the back of the box, specifications of the product wil l be mentioned. On all four sides of the box, the name of the product, the version of the product will be mentioned in black. The material used will be 100% recyclable cardboard which will be glossed over to give a shine.The separators inside the box will be made of 100% recyclable plastic too. Image, branding and placement The cypher of a brand or product is different from one country, one group, one segment to the other. The following discusses the image of the M-Pay Cristal phone. Country of origin effects Since the country of origin is Japan, which is considered as a exceedingly techonogized country in the world, the perception of the product is favourable. Moreover, a lot of new technology comes from Japan and is introduced to the rest of the world. Thus, even the stereotypical outlook of Japan is favourable for Cristal Corporation.Product Image The product, being a cell phone with the latest in technology i. e. the M-Pay facility, using the NCF technology will have a good p roduct image. Company Image The company, a pioneer of different technologies has a sound company image the world over. Thus, any new product introduced by it will have a good image. Brand Category The product is a mixture of an belongings brand and an aspirational brand. Attribute brand Not only will the product set itself aside from other mobile phones, it will also develop a platform for the company to release its line of mobile phones in UK.This particular product is centred mainly around the M-Payment facility. Aspirational Brand Since this is a new concept there is a positive, even a curious image stoold in the minds of the people. The product is a status product. Owning the product will create or make people be perceived as a part of a different, higher social status. Place The product is make in Cristal Corporation manufacturing grinder, Beijing Wang Mobile Communications, in Beijing, China. This factory is responsible for the design, sourcing, research and development o f the Cristal mobile phones.Once manufactured, the product will be flown to London where it will be stored at one of Cristal Corporations intermediarys units. Here, the product will be take into different groups depending on where in the UK it is being sent. Besides London, the product will be flown to Birmingham, Leeds, Glasgow, Sheffield, Bradford, Liverpool, Edinburgh and Manchester. Thus, it is important for the company to attain an intermediary who has storage units in these cities. From the city intermediarys storage unit, the product will be distributed to the T-mobile stores and to the stores that sell T-mobile network facilities.Promotion The target audience of the product are those individuals who are between the age of 18 and 60. This segment represents the active prosecute earning segment and thus will be able to afford the mobile phone. These people lead a university or a working modus vivendi and thus will be the ones who purchase grocery, airline tickets etc. the mo st. The main objective of the Cristal Campaign will be to identify new customers, further increase the value of the brand image and to help establish the product. The media strategy to be used should be a combination of advertisement, gross sales promotional material, sponsorship and public relation.The advertisement should be youthfulness oriented, showing the ease of payment through the MCristal. International celebrities that have a major appeal to the youth and the older part of the market segment should be contracted. A glory like Penelope Cruz would fit the bill here. T-mobile and Cristal Corporation could introduce a special price or a special promotion where for example, the first potassium purchasers will get 1000 texts free and 1000 minutes free. T-mobile and Cristal Corporation can also sponsor good-hearted events like for Breast Cancer research etc. o that a social responsive side is developed for the brand. It should also sponsor events like football matches so th at their name and logo is well displayed, attracting attention from individuals. determine Strategy The MCristal will be introduced under two different price ranges If the customer is out rightly buying the handset and using the T-mobile pay as you go network service, the price of MCristal will be for ? 185. Although there arent any real competitors in this field as yet, the high end mobile phone companies can be considered as a competition.The Blackberry Bold 9750 be ? 35 pounds a month and the Sony Ericsson Statio costs ? 30 a month. The Nokia 5800 costs ? 195 to buy outrightly. Thus we see that the MCristal is in the same price range as the latest T-mobile phones. Recommendation and finishing Although penetrating the market with this type of a new technology may be a challenge, it being time consuming with large sign investment in NCF interface machines, in the long run, the potential moolah to be reaped from this are too high to be ignored.This technological ripe product c ould majorly replace the use of cash in the day to day life of individuals. However, since the technology isnt patented to Cristal Corporation, it may be easy for other companies to replicate the work of MCristal thus reducing the monopolistic advantage that it had in the beginning. Thus, the company should create advantages wherever it sees them from the beginning of its entry into the United Kingdom.