International Marketing Analysis Presentation by Zak Kasza

Generated by Foxit PDF Creator ÂŠ Foxit Software http://www.foxitsoftware.com For evaluation only.

Poland Entering the Polish outerwear market

Brianna Kliesmet, Jason Kowalke, Mitchell Griffin, Zak Kasza

Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only.

Outline • • • • •

Cultural Analysis Economic Analysis Market Analysis Preliminary Marketing Plan Conclusion

Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only.

Culture • Aftermath of WWII led Poland to become a Soviet satellite state • Primary religion became Roman Catholic • Official Language – Polish • 96.7 % of population is Polish • Very homogenous, little diversity

Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only.

Culture • Generally live in 2 family buildings • Recreation – 22 National Parks – Cycling, swimming, mountaineering, soccer, skiing, hiking all popular activities

• Health care is covered by general healthcare • Diet – Optimal Diet (High fat, Low carbs)

Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only.

Business Practices • Rules and regulations are an important part of the business environment • Working hours are 8am to 4pm, Mon-Fri, with no official break for lunch • Punctuality is vital and lateness diminishes your reliability • Hierarchy and authority are important

Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only.

Business Practices • Expected to know proper business etiquette • Meetings are very personal – Use personal titles – Maintain good eye contact – Be open and honest with feelings and emotions

• Key is to develop trusting relationships

Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only.

Economic Analysis • Population – 38,500,696 (July 2008) – Growth rate -0.045% – 71.4% between the ages of 15-64 – Birthrate 10.01/1000

Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only.

Economic Analysis • Statistics – GDP $420.3 billion – GDP growth rate is 5.1%, expected to drop to 4.1% in 2009 – Labor Force 16.86 million – Unemployment rate 12.8% – Salaries and Wages on the rise

Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only.

Economic Analysis • Foreign Direct Investment – $89 billion between 1990-2005 – 75% of FDI comes from EU countries – Majority sectors of FDI inflow • 36% Manufacturing • 20% Financial Services • 8 % Transport, Logistics, Data tranfers

Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only.

Market Analysis • In Sept. 2008, Clothing and Footwear market was up 15%. • Consumer demand driven buy lower prices • Market Leaders: – Branded clothing – Reasonable prices – Distributed in chain stores

Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only.

Market Analysis • Competitors – LPP • Owner of Reserved and Cropptown chains • Largest clothing company in Poland

– Greatest threat from foreign importers • Poles preference for foreign brand names • Nike/Adidas largest sporting good competitors

– Market leaders distribute to “Hypermarkets”

Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only.

Market Analysis • Channels of Distribution – # of retail stores more than doubled in recent decades – Enterprises with >2 stores 2% – Range from large chains to many small bazaars – Cash accepted in smaller stores, Cash/credit in chains and urban areas

Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only.

Opportunities • Constant shift towards more democratic/free market state • Higher salaries and lowering unemployment lead to increased consumer spending • Large population percentage in target market • Abundant opportunities for outdoor recreation • Preference for western branded clothing

Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only.

Recommendation • A US firm should enter the polish market if: – They have high brand recognition – They have available capital to invest – They have relatively low production costs – They are able to ally with local wholesalers and retailers – They have reliable transportation to and within the country

Preliminary Marketing Plan • Timeline of under one year to introduce any new brand • Focus on functionality while maintaining a fashion conscious approach • Below average market price (penetration pricing) • Use large, popular chain stores as primary retailers

Preliminary Marketing Plan • Strategy – Product Extension, Communication Adaptation

• Target Market – Age 18-40 – Active, health conscious consumers – Middle Class – Urban dwellers that travel occasionally

Preliminary Marketing Plan • Specific Campaign Ideas – Target popular resorts and frequent guests • Showcases and product demonstrations • Product bundles coordinated with the resort

– Sponsor a local sports team or star • Sponsor a soccer team and supply them with appropriate brand attire • Feature a popular athlete as a spokesman

Brand Promotion • Website and internet marketing is extremely popular • Only 5% of companies prefer to use TV advertising • Over 80% of companies use sales discounts as the number one form of sales promotion

Brand Promotion • Popular promotion techniques:

Sources • • • • • • • • • • • • • • • • •

[1] “Poland Unemployment Rate” 16 May 2008 <http://www.indexmundi.com/poland/unemployment_rate.html> [1] Short, David “Poland's Media Mogul: Zygmunt Solorz-Zak” 1 Feb. 2000 <http://www.allbusiness.com/technology/479646-1.html> [1] Poland “Warsaw Business Journal “ 06 Jul 2005 http://www.wbj.pl/?command=article&id=27087 iii Poland “The World Fact Book” 20 Nov 2008 https://www.cia.gov/library/publications/the-world-factbook/geos/pl.html [1] Poland “Warsaw Business Journal “ 06 Jul 2005 http://www.wbj.pl/?command=article&id=27087 v “Huth, Micheal” 16 May 2007 < http://www.intlalliances.com/polishproduct-price.pdf> [1] <http://www.poland-export.com/categories/showcategory.php?categories=86#Scene_1> [1] < http://www.pwc.com/pl/eng/guide/regions/cities_krakow.html> 14 Nov. 2008 [1] “Clothing and footwear market” Sep 2008 PMR Publications 12 Nov. 2008 [1] “The Outerwear Market in Poland” Sep 2007 CBI Market Information <www.cbi.eu > 14 Nov. 2008 i “Poland Unemployment Rate” 16 May 2008 <http://www.indexmundi.com/poland/unemployment_rate.html> [1] “CIA: The World Fact Book” <https://www.odci.gov/library/publications/the-world-factbook/geos/pl.html#People> [1]“Polish Public Opinion” Mar. 2008 <http://74.125.45.104/search?q=cache:sKz75TOJlMMJ:www.cbos.pl/PL/Opinia/2008/03_2008.pdf+poland+family+life&hl= en&ct=clnk&cd=9&gl=us> 23 Oct. 2008 [1] “Doing Business in Poland” Cummunicade 2005 <http://74.125.45.104/search?q=cache:hN5kAnfbyOsJ:www.communicaid.com/pdf/doingbusiness/Doing%2520Business%2 520in%2520Poland%2520v2.pdf+poland+business+customs&hl=en&ct=clnk&cd=7&gl=us> 28 Oct 2008 [1] "The History of Poland” KASPRZYK : INDEX. 23 Oct. 2008 <http://www.kasprzyk.demon.co.uk/www/history/index.html> [1] <http://www.infoplease.com/ipa/A0107891.html> 25 Oct. 2008 [1] “Poland: Housing Challenge in a Time Of Transition” 2003 Maureen Markham 14 Oct.