Marketing and market entry strategy in india

merchandise and grocery store immersion strategy in indiaA grocery storeplace launching strategy maps out how to sell, deliver and move on HMs crosswayions in an icy country such as India. When products and serve ar exported to another country, the strategy ingest define ways of obtaining contracts and delivering them in that country.If HM has dissolved to conquer the planetary market in India, it is capable to m all another(prenominal) choices. These options may include the cost, risk and the degree of control that the union bequeath encounter in the country. In entering an international task, it is primary(prenominal) that the direction of the HM should be adequate to choose market accounting unveiling strategies and conservatively choose the product that the company provide market in India.Exporting, is the simplest signifier of selling entry strategy which includes direct or indirect rule such as victimisation an agent, in the case of direct mode and counter trade if the company opted to implement an indirect method. Due to expert advances, direct merchandise is staging a comeback, leading to a birth preference.Moreover, since HM wants to be hold upn worldwidely, there are many other ways the company sack up choose from like joint pretend or export processing z i. The management of HM may decide to choose the export strategy and include in their operation the proper(postnominal) channels to market their product. kindred marketing has revolutionized the traditional marketing and has stimulate the biggest paradigmatic shift in marketing practice in upstart decades.It has not precisely changed nodes to advocate by replacing client atonement by guest delight exactly has alike increased timberland dish out offers that exceeds expectations. Similarly, it entrust open new horizons for HM. It entrust trigger the HM to introduce new products and services. jibe to Berry and Parasuraman (1991 25) kind marke ting concerns lureing, development and retaining customer descents. Relationship marketing go away try HM with requisite selling approach to cope with various challenges, set by the new-fangled market in India. Relationship marketing transforms single usage to tenfold service usage and bequeath strengthen HM by providing them the wherewithal with which they send away carry out effective customer services in India.Nowadays, ambition in behavior industry and demands of customers are increasing constantly. They demand for global shape company like HM where there are nutrition for an bonus to the customer. So, strong commitment to customer care, attraction and brinytenance at all levels are the top priority of HM, while dealing with the customers. Relationship marketing will help HM to overcome these problems and make the gross revenue procedures much simpler. Palmer (2001) enumerated the components of family family kind marketing as organism a revolve around on custom er loyalty and guardianship long term orientation tracing identifi adapted buyers distinguishing diametrical levels of human kinship between the buyer and the marketer high levels of customer dedication and service quality as being the responsibility of every employee. Relationship marketing will transform listless customers into loyal clientele and emphasizes on their storage. Customer retention is the means to delivering semipermanent profitability in HM.Customer relationships management focuses on customer retention, and customer retention is believed to be more profitable than customer acquisition. Dawkins and Reichheld (1990) found that higher(prenominal) retention rate leads to higher net present value of customers. The lasting customers crapper be retained by HM, the more and more palpable benefits will accrue from a sustained income stream. The end goal of relationship marketing is profit for HM. Saren and Tzokas (2000) raised the usefulness of relationship marketin g in creating unique, difficult to imitate feelledge by dint of the processes of interaction and dialogue with the customer. experience to the highest degree customers can only be enhanced if HM is able to maintain lasting relationships with their customers.The determinants of store choice, customer loyalty, patronage behaviour, customer retention and relationship marketing seduce been widely studied around the globe. therefore, a considerable volume of literature exists, especially regarding port industry. However, there is even considerable scope for search in this field as the surround of elbow room industry is in a constant state of move and the emergence of new store formats in India has led to dramatic changes in consumer behaviour. New and existing fashion industry tend to provide a completely new experience for their consumers by offering sophisticated customer service, a wide and assorted variety of goods, breakfast ambience, quality import and checked products. Since, fashion has invading people style of living and HMs the product that has been chosen to go international market. Hence, this investigate will suggest a marketing entry strategy for HM using Porters Five Forces stupefy (Porter, 1980) and SWOT analysis of other HM companies in other countries. The company is a new entrant to the Indian Market, thus, this paper will provide a marketing entry strategy analysis for the company as it invade the market in India.Competitors AnalysisCompetitors analysis is very important since HM is a new entrant within the market place. It is all-important(a) so that the HM will be able to know their competitors and the affirmable strategy that they may use to level up such competitors and know the postulate of the goat market. Thus, this means that HM will enter the India as a beginning industry considering many competitors within the market place.Marketing Entry AnalysisUtilizing Marketing MixMarketing is considered as one of the most(preno minal) important element underpinning successful business creation and because of its mixed applications, marketing is defined in a variety of ways (Sheth, Gardner, and Garrett 1988). According to Elliot (1990), the marketing concept was first promulgated in the late 1950s. The greatness of marketing concept incorporates oft-repeated elements such as customer orientation integrate marketing efforts and resultant profitability (Elliot, 1990).The marketing mix principles can be adjusted on a frequent basis to meet the ever- changing needs of the target market and other dynamics of marketing surround (McCarthy, 2004). In relation to marketing plan, marketing mix includes both picayune term and long term strategies makes for a more profitable marketing mix. Long term strategies build brand/company awareness and give sales revenue a permanent, gradual boost. Short term strategies hit a temporary, immediate revenue boost by giving buyers an incentive to purchase. By implementing bot h long and short term strategies, you can observe to immediate sales goals while building your business reputation and state of grace (Kyle, 2004).1.1. ProductHM AB (originally known as Hennes Mauritz) is a Swedish clothing company, known for retail of low-cost designer clothings. It was established in Vsters in Sweden in 1947 by Erling Persson, though at the time it only sold womens clothing and was called Hennes, which means hers in Swedish. Persson acquired the exposit and inventory of a Stockholm hunting equipment store named Mauritz Widforss in 1968. Persson expand into menswear and renamed the store to Hennes Mauritz, later abbreviated to HM (www.hm.com).H M is the worlds favourite(a) and preferred designer of apparels and clothing for man and women. In addition, H M is in any case known not only for their fashion cosmetic but because of the quality of the change state designed durability and the funkiness of its clothes. Through the online stores, HM provides the re gional, Continental and European Market an exclusive clothing designs. The main goal of HM is to provide innovative designs of apparels and clothes for opposite types of people in distinguishable countries all over the world. The company is known because of its strategy of providing clothing designs wholly for each countrys preferences and needs.1.2. PricingH M is believed to have advantages when it comes to its pricing tactic. In order to be known into the market place and as a new entrant, the company will provide its target market with an low-priced cost while providing them a high quality products and services. The company will be given the customer and client a price that is lesser than its competitors so that the consumer will be enhanced to buy and patronize the H M clothes and cosmetics.1.3. Placement/DistributionThe HMs products will be distributed directly to its clients and consumers in order to be known in the market place. HM products can utilize joint venture str ategies with distinguished distributor of apparels, clothes and cosmetics, providing them with great offers, so as to market the product of the H M internationally.In 2003, HM announced its entry into the traditionally exclusive Milan fashion scene. It remains to be seen if HM and other low-end retailers will be able to find a market there. In February 2004, The Gap, another prominent international retailer, sold off all of its German outlets to its competitor, HM.HM launched its first American outlet on March 31, 2000 on New Yorks famous one-fifth Avenue. Following the success its stores, additional outlets were opened in the SoHo, Gramercy, and Herald jog areas of Manhattan, followed by outlets in Upstate New York in Syracuse, Utica, and West Nyack. The brand then expanded to other regions of the country, including Chicago and its outlying suburbs.The first deuce HM stores to appear on the West Coast of the US opened in San Francisco, California on November 19th, 2005. HM opene d its first Canadian store in Fairview Mall in Toronto and soon after, its store in Torontos Eaton Centre was opened in March 2004. Following great fiscal success, HM opened ten other stores within the Greater Toronto Area. Stores were in like manner opened in Montreal in Spring 2006.HM continued its magnification in the Canadian market and doubled the number of stores in 2006. It think new markets include Barrie, Hamilton, London, Kitchener/Cambridge/Waterloo, St. Catharines and Windsor and Ontario market, Fairview (Pointe Claire) shopping centre, Rockland Centre, the Galeries dAnjou and the Carrequartette Laval. (www.hm.com)1.4. Promotion/CommunicationHM can use video advertisements, print advertisements and the concept of e-marketing to promote its products. These fronting and communication strategy will tend to meet the consumers form unalike places everywhere, especially those target markets or the consumers in the working place.Moreover, since the trend in the market pla ce today is the usage of e-marketing, the company will provide a website that any client can access. The use of the Internet is changing technologically advanced marketing overnight while variant industries have been trying to use it as part of their marketing strategy. It does not only reconfigured the way different firms do business and the way the consumers buy goods and services but it also become instrumental in transforming the value range of mountains from manufacturers to retailers to consumers, creating a new retail distribution channel (Donthu and Garcia, 1999). E-marketing is a tendinous tool used that can be used by HM. E-marketing is defined as the process of achieving marketing objectives through the use of electronic communication theory technology (ICT). Smith and Chaffey (2001) have provided a 5Ss learning devices on how the profit can be applied by all business firms for different e-marketing tactics. These 5Ss are useful for HM and are selling, serve, speak, s ave and sizzle.E-marketing or online marketing strategy can be used by HM to market its products. Thus, the HM has created its own website (www.hm.com). HM will use the e-marketing strategy is to proceed in touch to different internet exploiters and to be able to attract more clients and consumers. HM will use e-marketing to accelerate its business portfolio whether the user of the website is a customer, employee, stockholders, vendors, retailers or end customers.1.5. Market SegmentationMarketing air division is defined as an aggregating process clustering people with similar needs into a market segment (Perreault McCarthy, 2002 74). According to Ravesteyn (2005), customer variance is vital for an effective relationship marketing strategy. HM will provide its target consumers for its product by using market sectionalisation strategy. The segmentation of the market is a critical aspect of relationship marketing and the segmentation of business customers by HM must be in line with the different levels of relationship offered by the company. They need to make use of relationship marketing and management at segment or market level to signalize the target market they intend pursuing (Stewart, 1995). Primarily, the context of the market segmentation for this company will be the Psychographics. Strydom, Cant Jooste (2000) identify the following four types of segmentation demographic, geographic, psychographic and behavioural segmentation. Psychographics includes social class, lifestyle, and personality variables (Chiagouris and Kahle, 2000). The end result of using these variables is a psychological profile of each market segment. Issues also examined the customers loyalties, habits and self-concept. tender class withdraws how individuals want their office automation will meet their simplicity and satisfaction, what they consider important about their immediate surroundings, their opinions on various issues, and their interests.As lifestyle studies conce ntrates on what the consumer implys, using these discover results as marketing strategies in the end became a marketing concept. The marketing concept is a basic philosophy that maintains that HM should endeavour to satisfy the needs and wants of customers through a interrelated set of activities that also allows the HM to achieve its goals at a profit. The HM must be able to consider its consumer, especially the demands of the consumer so as to let the business have an opportunity of having an expansion of its business portfolio as required by the consumers.The focus of this overview is on the behavioural segmentation process, which refers to the segmentation of buyers or customers into groups on the basis of their knowledge of, attitude towards, use of or response to a product or service of a HM. The behavioural variables identified by Kotler (2000) includeOccasions occasional buyers develop needs, purchase, or use products.Benefits refer to the benefits that buyers seek.Us er status includes potential users, regular users, non-users, first-time users or ex-users.Usage rate will include light, medium or sedate users.Loyalty status are classified as sturdy-core loyals, disassemble loyals, shifting loyals and switchers.Buyers-readiness stages where the customers are either aware or unaware of the product or service, informed, interested, have a desire for the product or service and have intent to buy.Attitude enthusiastic, positive, indifferent, negative and hostile.enquiry ObjectivesRelationship marketing will contribute significantly to the development of HM in India. Therefore, it becomes inbred to use up its applications in a fashion company in India. This study fulfils this need. The study addresses the different pros and cons of relationship marketing in a fashion company in India.Thus, the general think of this research investigation is to identify, describe and analyse factors that have an seismic disturbance on relationship marketing , customer retention and customer acquisition in Indian fashion context. The main objectives of this study are given below,To identify, describe and analyse factors that will have an strike on relationship marketing, customer retention and customer acquisition in a fashion company and at HM in India.To valuate the views of customers of HM in India, how they feel about the companys relationship with them.To gain perceptiveness on how HM in India build customer relationship marketing tactics.To understand and determine the mediating role of customer behavior between relationship marketing and customer retention and acquisition.To indentify the market entry strategies for HM in India. inquiry QuestionsWhat is the relationship marketing tactics practiced by the HM in India?What is the market entry strategy practiced by the HM in India?DeliverablesAs it has been described in the objectives of the research acoustic projection that the main purpose of this study is to examine the market entry strategies and relationship marketing by HM in India and customer relationships in Fashion federation and to find out how fashion company relationships with customers promotes its entry in India. The concluding product of this research project will be a account statement, containing the HMs relationship strategy and market entry strategy in India, what are their advantages and disadvantages. The report will contain the perceptions of employee and customers. Finally, the report will highlight most relationship marketing problems of HM and a fashion company and suggest some guidelines to remove these problems and improve its customers base in India.Research Methodology provoke customer and would be customers of HM in India will be approached to put one across the information. There are two kinds of data.Primary dataSecondary dataPrimary data includes the information about relationship marketing and market entry strategy uncommitted from customers of HM in India. This als o includes responses by the different employee of HM on the shop-floor. Secondary data will promulgate about the disturb of relationship marketing in the retailers and the data has been available in their system. To collect the data, retailers employees, posted at different positions, will be contacted. Similarly, to assess the changes in retail services, caused by the relationship marketing, customers views will also be found out.The tools to collect this data will be the surveys. For this, employees and customers will be interviewed, where as to know the views of customers, different questionnaires will be prompt to ask them different questions.To analyze the collected data, different statistical techniques will be used.Qualitative research can be referred to as the opposite of quantitative research method. Any research method has its advantages and it disadvantages. Qualitative research is a study done that produces its results and findings that do not result from statistical means or other method of quantification. This method of inquiry requires a high level of intelligence and experience from the researcher to arrive at a more realistic and targeted data from the respondent.Quantitative research is referred to as a measurement of how people feel, think or act in a particular way and that this survey tend to include enceinte samples from fifty to any number of interviews, structured questionnaires containing mostly closed questions that require questions along with set responds. This involves the clear statement of variables i.e. specifying the dependent and the independent variable.ResourcesThe most important thing to carry out any research project is to know the background, research objectives, and research methodology of the research project. For this literature is searched out. The University subroutine library will be the primary source to review the literature. Books in hard and soft form will be obtained from the library. Similarly, different research journals and articles in the library will be valuable assets to prepare a all-around(prenominal) research report.To prepare the questionnaires, surveys done by Fashion Company to know the relationship marketing and market entry strategy will be used. Similarly new questionnaires, depending on the situation, will also be prepared. escort PlanThe project is divided into three stages.Literature reviewInterviews of employees of HM and their customersReport writingLiterature ReviewTo carry out any research project, a research must be able to review the literature. This makes researcher aware of work, done by other people in the respective field. The main source of literature is the journals, in which different researchers promulgate their findings of problems.Interviews of retail employees and customersIn order to collect information on the impact of market entry strategy and know impact on relationship marketing in the Indian fashion company, the employees of HM will be inte rviewed. They will be asked about the positive and negative points of relationship marketing utilization in their stores. Similarly, customer views will be taken through the interviews. Considering all these views, suggestion to improve the customer services will be advised.Report writingThe final product of the research project will be a written report. The structure of my report will be divided in following categories,IntroductionIn the introduction, the market entry strategy and history of relationship marketing use in fashion sector will be discussed and how different relationship marketing systems will be used to address the issues of HM, with the passage of time.Aims and objectivesIn this part of report, purpose of the research project will be stated very clearly what are the aims of the study and what are the problems, which will be discussed in the report.Research methodologyThis is the core part of the report. After stating the problem, different research methodologies wil l be explained to gather the data. The primary source will be the interviews of the employees and customers. From these interviews, impact of relationship marketing and market entry strategy of HM will be assessed. The questions asked to employees and customers will be provided in the appendix of report.ConclusionsAfter describing the problems and research methods, suggestion will be advised to eliminate the highlighted problems.RiskIn order to carry out any research project, it is very important to study all the aspects of the project. peerless of the main aspects regarding any project is the risks involved. There are also some risks involved, regarding the research project under consideration. One risk can be privacy. HM employees can be duty-bound(predicate) and show reluctance to give information about their working procedures and on relationship marketing operations, used in the fashion company.Impact and Beneficiaries of ResearchThe main objective of this research activity is to investigate the market entry strategies and relationship marketing by HM in India and customer relationships in Fashion Company and to find out how fashion company relationships with customers promotes its entry in India. This research can be very helpful for the fashion sector. For instance, it will analyze the effectiveness of relationship marketing and its market entry strategies in India. It will determine the views of HM employees about the introduction of relationship marketing in their working environment. From this, both positive and negative points about the role of relationship marketing in the fashion sector, put forward by the HM employees, can be known. Similarly, the customers views about the insertion of relationship marketing and the effect of HMs market entry strategy can be found out. Customers level of satisfaction about the HMs customer services can be assessed. This report will also show the comparison of different strategies among different HMs companies wo rldwide and how they use relationship marketing to achieve the equal target. By knowing the views of customers through this study, their difficulties while dealing with HM, can also be discovered. This report will also address these issues and suggest solutions to carry off these problems. So, the major beneficiaries of this report are the management of HM and by considering the suggestions of the report, they can improve their market entry strategies, customer services and hence the customer relationship from HM will be invigorated.