Brazilian market
Exporting Saskatchewan potash product to Brazil market requires the exporter to determine the market segmentation of brazil. Brazil is segmented based on geography, demographic and social-cultural factors. Saskatchewan should consider the ethnocentric behaviour of Brazin to enable it to adhere to the norms and culture of the Brazilians to promote the success of its product into the market. Furthermore, it should take into consideration the case system in Brazil to enable it to understand the classes of customers in Brazil. Understanding the case system will significantly enable Saskatchewan to identify its target demographics, and this would, in turn, promote the success of Potash in the market. The Brazilian also has a low level of individualism since they prefer group relationship. Saskatchewan should, therefore, understand that Brazil has a low level of individualism to enable it to devise strategies from promoting customer loyalty to promote the performance of Potash in the Brazilian market. Market segmentation will assist in determining the target the total population of the country, and this will consequently enable Saskatchewan to enhance its exportation to meet the needs of the customers in Brazil.
Country of origin effect
Country of origin effects habitually dictates the purchasing behaviour of the customers. Saskatchewan should, therefore, take into consideration the country of origin effects of Brazil when exporting its Potash to the Brazilian market to foster the success of its potash product in Brazil. Likewise, it should consider the competitive advantage of the domestic potash fertilizers to enable it to come up with an appropriate price that would outdo the domestic potash fertilizer of Brazil. Additionally, Saskatchewan should establish low prices to constitute core competence that would enhance the success of its Potash resource in the Brazilian market.
Predatory pricing
Furthermore, Saskatchewan should employ predatory pricing to enter the Brazilian market with its Potash product. Predatory pricing will enable it to enter the Brazilian market with prices lower than the market price, and this will consequently promote the success of Potash in the market. Predatory pricing will also enable Potash to establish in the market, and this will, in turn, allow the Saskatchewan to recover its pioneer cost, which it uses to enter the market. Similarly, in case the company receive huge profit from the market, the exporters can consider building a potash industry in Brazil to foster the performance of Potash in the market. The pioneer cost can make exporters establish factories in Brazil and guarantee the buyback of Potash by the Brazilian farmers. Likewise, predatory pricing can enable Potash suppliers to reduce the cost of their firms and prevent the risks associated with the floating exchanges rates. Besides, the floating exchange rates can encourage the Brazilian wholly-owned subsidiary to produce potash fertilizer.
Moreover, Saskatchewan should employ multipoint pricing to lower the price of potash fertilizer in Brazil to make sure that farmers can afford the required fertilizer. The strategy will consequently enable its Potash to become more sustainable and successful in the market. It should also improve its marketing and advertisement strategy to enhance its performance in the market. Also, Saskatchewan should expand its popularity to make its international trade effort successful. Additionally, they should employ a pull strategy to change the impression of the customers towards Potash in the Brazilian market, which is an international business. Consequently, Saskatchewan should minimize obstacles like cultural barriers and noise effects which might affect its operation into the Brazilian market. Additionally, it should adopt a concentrated retail system to enter the market.