2013-05-19

Marketing entry strategy

KEY POINTS
Branding & positioning:

No Labels, No Brand Names, No Nonsense

‘Product extension, Marketing Adaptation” global marketing strategy should be saved and arranged within the russian market
Wave timing strategy (start with several products and then broaden to a wide product line).

Franchaizing strategy as it is (several chain stores in the biggest cities of Russia - Msk & SPb and then gradually expand to others).

Product and/or service attributes:
4 major categories for an entry: house goods, office goods, beauty goods & accessories (neutral and smooth way of entering new market, then expand to the clothes department and etc.)

The design and the attributes of the stores will be the same as in the Japan - simplicity and austerity at the forefront.
Website, Muji.ru, to become a platform for design and production where customers can participate (to increase collective customer commitment)

Distribution:
In Russia MUJI will start with the 4-5 department store in Msk & SPb and then expand the network to the chainstores in other russian cities.

Promotion:
Minimum advertising (to be able to offer quality goods at relatively low prices) - mostly word of mouth and trendsetter's leader opinions through social networks (Instagram, VK, FB)

Price:May not be possible to have the cost leadership strategy: the cost of freight, custom duty, inspection fee, handling fee and etc, adds up to 150 to 160% difference between the retail prices at Muji Roshia and Muji Japan.

People/processes:

Famous russian celebrities presenting & promoting the MUJI production.
Muji material selection process, as well as the production processes, are scrutinised to achieve operational efficiency and minimum waste without compromising their product quality. Muji in Russian will be able to make better decision making relating to customer information and automatic ordering systems with an IT based business process support system

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