Marketing Strategies to Be Used in New Market Entry

Question: Discuss about the Marketing Strategies to Be Used in New Market Entry. Answer: Business persons are risk takers. Entry into a new market is a significant danger for any business as the competition is stiff and the customers' perception of the product is unknown. Breyer company entry to the new market in Thailand may fail or be successful depending on the marketing strategies the company use against the risk in the market. However, the company may use a plan to enable it to succeed in the new market. The Pricing strategy;(Van Waterschoot, Van den Bulte, 1992, p.83-93) The procedure involves the manipulation of the prices of the Breyers product to attract more customers to buy its products. The price of the organization goods determines the profit margin. The pricing strategy can be done in various ways by the Breyer company to ensure a competitive advantage over Haagen-Dazs, BenJerry's and Baskin Robbins who are the main competitors. These ways are: Pricing at discounts The company should do a market research to check the prices that the competitors offer their products at in the market. The company, therefore, can decrease the prices of its products by a certain percentage e.g. 10%-20%. These are a way to attract more customers who will, in turn, increase the sales of the company leading to high-profit margins. However, the company should look for cheap raw materials, labor and other production inputs to ensure the production costs is low to enable it to be able to offer reduced prices without incurring losses. Pricing at premium Breyer company should do research and come up with unique products for the new market in Thailand. The company then set a price higher than the competitors since the products are of unique characteristics. Unique products will have strong market despite their prices. Price skimming The company may put high introductory price as it enters the new market in Thailand. These may be due to the unique products, and the organization should check whether the high prices have any effect on the market. The company after a while would reduce the amount to be same as those competitors but if the high prices had high no effect on the consumer buying habits the company should not drop the price. Bundle pricing The company can sell multiple products together at lower prices than the customers would get if they bought each product individually. This way the company will attract more customers and reduce the numbers of unsold products. The ability of clients to get more goods at lower prices will enable them to buy more from the company. These will make the company create awareness and also have market for its products, Pricing for Market Penetration Entry to the Thailand market by Breyer company is a significant risk. The company can offer lower prices to penetrate the market and have more customers and later can increase the costs since it will have a market share. The company can manipulate the prices to attract more customers but also prices may scare away potential customers. Research should be done by organizations to enable them to choose the best pricing strategy to have a competitive advantage. References Borden, H. (1964). The concept of the marketing mix. Journal of advertising research, 4(2), 2-7. Van Waterschoot, W., Van den Bulte, C. (1992). The 4P's classification of the marketing mix revisited. The Journal of Marketing, 83-93.a