Marketing: Market Entry Strategy
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Step One
From market analysis and environmental studies, the superiority of product features and its price tag is an essential aspect of foreign market suitability. Moreover, the size of the country’s economy, socio-cultural factors, legal forces, and political environment also influence foreign market selection. As for the South Korea market, the photography drone is likely to face stiff competition due to the free South Korea market as well as from the existing drone producing businesses new entrants when the product gains popularity (Asongu, 2017). However, apart from the restated factors, the drone is likely to enjoy great success in the free South Korean market.
Step two
The photography drone will first enter into the South Korean market through exports as it is a more secure form of operating in foreign markets. Exporting will pose several advantages for the product, including allowing the producer to learn the South Korean market before investing in bricks and mortar, reduce the potential risk of operating in the market as well as enable home-based manufacturing which is less risky than oversea based manufacturing (Froese, 2019). Since the producing company has little exporting skills, piggybacking is the most efficient indirect exporting skill whereby the company will use the services of a more advanced exporting company to reach the South Korean market. Moreover, as the competition intensifies, the company will use countertrade as a competitive advantage tool to reach the South Korean market and expand its operations. However, the most significant limitation to this form of drone entry into South Korean market is that product will be on the mercies of South Korean agents and therefore there is a need to weight the lack of control of the foreign market against the advantages of the form in this trade to prevent massive losses for the photography drone (Schmid, 2018).
Step Three
The photography drone should use the STP model consisting of market segmentation, target the appropriate customers, and then position offering the benefits of the product to a specific market segment. After analyzing the South Korean market from website data and medial social analytics, it will be segmented into three main segments of language, interests, and spending power and pattern and compile data on potential customers. Although South Koreans have a common language, not all residents of South Korea are Korean. Spending power and patterns will determine how many potential customers have to spend, how they will approach to purchase the drone and on which category as well as their specific financial concerns or preferences needed to address. Interest will determine what the potential customer like to do with the drone, as well as the other business they interact with. After analyzing the target market, the drones will be tailored to create a value proposition that will clearly explain how the product will the wants and needs of each target segment with a unique selling proposition and positioning map of low price, high quality, and ready availability of the product. Froese (2019) claims that it is in this way, the marketing campaign will present a value proposition that the target market will appreciate.
References
Asongu, S. A. (2017). Knowledge economy gaps, policy syndromes, and Catch-up Strategies: Fresh South Korean lessons to Africa. Journal of the Knowledge Economy, 8(1), 211-253.
Froese, F. J. (2019). Doing Business in Korea.
Schmid, S. (2018). Strategies of internationalization: An overview. In Internationalization of Business (pp. 1-25). Springer, Cham.