In short tem Quality Craft Carpet Ltd should focus on direct marketing strategy to capture the potential customers and generate rapid purchase. Although they are new in foreign market but they had potential

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Introduction

Quality craft carpets Ltd was established by William Jackson and John Turner in 1989 at UK tradition carpet making town Kidderminster. Kidderminster has the UK largest carpet manufacturing industry established hundred years ago. When William Jackson and John Turner established the firm, there was decline in UK carpet manufacturing industry, but they both had a good experience in production and loom tunning. The main objective of the Quality Craft Carpet was to manufacture traditional, woven good quality Axminster carpets in which they both had a good experience which in the competitive advantage they have on the other competitors in the industry. Due to the decline in the carpet industry that time import s of the synthetic tufted carpets from North America and EU were taking an increasing share of over 40% of UK market. By this time company decided not to deal with carpet superstores, largely because profit margin was low, as bulk purchasing power enabled them to demand low margins. The company was operating very successful in UK market because of good quality and good marketing sales strategy. The company has not attempt to sell its product abroad but after consideration they have decided to expand there business overseas. It has found that initially USA offered the best potential for the immediate future. However, it has been decided that if company will have initial success in USA they will try to enter the Middle East and Japan.

Sales Strategy

Short term strategy

In short tem Quality Craft Carpet Ltd should focus on direct marketing strategy to capture the potential customers and generate rapid purchase. Although they are new in foreign market but they had potential to capture the customers on there quality and success in UK market. Profit margin should be minimizing.

Mid term Strategy

After making there place in the market, mid term strategy should be to stabilize the market. Huge advertisement is required to increase market share. Manufacturing subsidiary would be added advantage to the company.

Long term Strategy

After getting successful initial growth in market, more investment needs to establish there manufacturing plant in USA which can result in reducing the transporting cost. Push strategy would be more effective in long term.

Form of Representation

To enter in international market there are broad choices which are indirect exporting, direct exporting, licensing, joint venture and direct investment. Companies need to be very careful in selecting the method of representation in international market because there are many risk factors involved. According to financial position and size of the Quality Craft Carpet indirect exporting is most suitable choice to enter in huge US market. They work through independent intermediaries. Domestic base export merchants buy the manufactures products and then sell them abroad. Domestic based export agents seek and negotiate foreign purchases and are paid commission.

Indirect exports have few advantages, first it involves less investment, the firm does not need to develop an export department and overseas sales force or a set of foreign contacts. Second, it involves less risk: because international marketing intermediaries bring know how and services to the relationship, the seller will normally make fewer mistakes.

So after looking at the size, financial position and in experience in the exports, the indirect export will be the best choice for Quality Craft Carpet to enter in US market. Company does not have good financial position and management has no knowledge of selling overseas

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Manufacturing Subsidiary  

In this growing stage of the company, manufacturing subsidiary is not a good decision as it needs investment which is not possible to make at this stage. Setting up sales branch overseas, distribution, warehousing and promotion all need a big investment and involve risk factor. Quality Craft Carpet is small organization with some financial crisis and manufacturing the subsidiary would not be a good decision. After successfully establishing in US market manufacturing subsidiary would be beneficial because transportation and travel cost will be avoided.  

Strategic Issues

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