The selection of the appropriate market and the promotional techniques as per the capabilities of the business organisation is necessary in order to meet the business objectives. For operating a global business, customers are at the focus and therefore they can be best attracted through the application of proper pricing strategy and distribution of the products. In this assignment, the marketing of Piñatex™ in Brazil is analysed with the justification of the selection.
For the market of Piñatex™, the Brazilian market has been selected. Piñatex™ is a textile weaved product made of clothes out of fibres collected from pineapple leaves. The rationale for the selection of this country is that the textile industry in Brazil has gradually been growing and due to this, there is a huge scope for Piñatex™ to occupy a good market position and achieve the expected revenue through market share. Along with the globalization, there was developing a change in the Brazilian textile industry. The booming of the economy at a rapid rate and can provide a good market for the distribution of Piñatex™.
Through the selection of the preferable market, the placement and distribution of the products can best be performed by the organisational management. There are mainly five types of markets, such as perfect competition, monopoly, oligopoly, monopsony and monopolistic competition (Askar, 2013). Perfect competition refers to the existence of a number of buyers and sellers as well as the existence of a distinct competition among them. On the other hand, monopoly refers to the presence of a single producer and the availability of the buyers. Oligopoly is the handful of sellers and limited buyers (Jain et al. 2014). Monopolistic competition is the condition of a huge number of sellers in the market with different aspects.
For Piñatex™, the perfect completion seems to be the most suitable as through this the distributors can observe the demand of similar other products. Even they can also get the inspiration and motivation to improve the quality of the product and service by ensuring its availability in the market. Even Brazilian market consists of a huge population. The demand for the textile products at a low price is also available in Brazilian country. Therefore, this will help them to satisfy their customers in a better way and also to maintain customer loyalty.
There are different market entry strategies in the global market such as licensing, franchising, exporting, joint venture, outsourcing, Greenfield project, business alliance, and turnkey project (Leih & Teece, 2014). For Piñatex™, the application of exporting seems to be the perfect to make an entry in the Brazilian market. It is suggested because through this the particular type of product can be able to expand their demand beyond national territory. Not only the reputation of Piñatex™ will increase, but also the future scopes will also expand through this.
As per the analysis of Michael Porter, competitive strategy refers to the determination and consideration of a business organisation to increase its profitability and competitive advantages (Block et al. 2015). Competitive strategy is of four types, such as cost leadership, differentiation, cost focus and differentiation focus. Through the cost leadership strategy, the cost of the price is strictly controlled in order to be the cheapest distributor of a certain product. On the other hand, differentiation is the application of undertaking a unique step in business and marketing in order to achieve a different competitive advantage. The concern of the low-cost focus is on the niche market and therefore it also provides products at a low price (Papadopoulos & Heslop, 2014). Finally, differentiation focus aims to provide a unique product for a specific group of customers.
For Piñatex™, the application of differentiation is the most beneficial. Piñatex™ is a textile product made of fibres from pineapple leaves and therefore it has its unique features. There is also a huge demand for unique textile products among the Brazilian customers. As a result, it can attract the Brazilian customers with its unique aspects rather than the pre-existing products. Even through this, the marketing of Piñatex™ can also increase.
It can be stated in this regard that the socio-political and economic condition of Brazil is healthy for the promotion of a new product due to its political stability, social equality and GDP growth. Even the incorporation of the profit maximisation strategies is also helpful for Piñatex™ to proceed with their marketing in Brazil.
Pricing strategy is necessary for the marketing of a particular product in a new market to attract customer attention. According to Novy-Marx (2013), premium pricing strategy is the setting of a high price due to the uniqueness of a particular product. Economy pricing strategy focuses on the setting of a low price of a product in order to attract the customers. Penetration pricing strategy refers to the low cost of the new product while entering in a new marketplace. Similarly, psychological pricing refers to the strategy of setting the price of a particular product in a way so that the customers are convinced about the low price of that product in comparison with other existing products (Giri & Sharma, 2014).
For Piñatex™, the strategy of penetration and psychological pricing strategy seems to be the most beneficial for entering the Brazilian market. Due to the extreme competitive scenario, the penetration pricing strategy may help this product to capture the new market with its unique features. On the other hand, the Brazilian customers can also be attracted to purchase this new product with an attractive price rate. Due to the reduction of poverty rate and gradual flourish of industries the future of Piñatex™ in the Brazilian market can be estimated.
The significance of the market promotion for a particular product is embedded in the process to make the public aware of the product and to earn the expected revenue (Helm & Gritsch, 2014). Promotion of Piñatex™ for the first time in the Brazilian market can be performed through different processes, such as social media, mail order marketing, contests as well as offers and gifts.
The application of social media including offers and gifts can be appropriate for Piñatex™. The media of social networking site like Google+ and Facebook provides the companies necessary support to exhibit their products in the new market as well as to make the public aware of those. In the era of digitization, this strategy is helpful in developing a communication with the customers (Chang, 2016). Even, the attractive offer of special discounts and gifts on the first purchase and repeated purchase can also motivate the Brazilian customers to go for the use of Piñatex™ for a comparative evaluation. The middle and lower-middle class people of Brazil are majorly promotion conscious and therefore they can be encouraged to purchase this product through these promotional strategies.
Attractive distribution of the products provides competitive advantages to the manufacturer. Through the direct distribution, the products are sent to the customers directly from the producers. On the other hand, indirect distribution refers to the existence of a layer of channels and the products pass through those in order to reach to the customers from the producers (Benrqya et al. 2014). Selective distribution offers the products to the customers through some particular outlets and on the contrary, intensive distribution intends to cover a huge area of the market.
If Piñatex™ applies direct distribution strategy; they can be benefitted from the both distribution flow and financial perspectives. It is the fact that if there is a number if mediums between the distributor and the customers, the price of the products automatically increases. On the other hand, it is also necessary to keep the price of a product as low as possible during taking entry into a new market. For Piñatex™, the direct distribution strategy will, therefore, help them to control the product cost and satisfy the Brazilian customers with a new type of product. Due to the huge number of customers, it is necessary for Piñatex™ to satisfy the needs and expectations of their customers through supplying and distributing the products effectively.
We can evaluate from the above discussion that in the Brazilian market the scope and opportunities of Piñatex™ to continue and expand their business is positive. On the consideration of different market strategies such as market selection, market entry, competition, price, promotion, and distribution the success of this company is also depended. We have selected the above-discussed specific strategies in order to project the ways through which Piñatex™ can execute the products to the customers in the most attractive appearance. We also believe that through following these strategies, the reputation and acceptability of Piñatex™ will be increased among the public and this unique product will be distributed in the global market gradually.
Conclusion
Finally, it can be stated that the selection of a preferable market along with the associated facilities is quite necessary to promote a product in a new market. In the global competitive market, it is helpful for a product like Piñatex™ in a new market like Brazil to identify and follow the customer-centric strategies so that they can compete with other existing companies successfully.
References
Askar, S. S. (2013). On complex dynamics of monopoly market. Economic Modelling, 31, 586-589
Benrqya, Y., Estampe, D., Vallespir, B., & Babai, M. Z. (2014, January). Impact of Product Characteristics on Distribution strategy selection. In Supply Chain Forum: an International Journal (Vol. 15, No. 3, pp. 38-50). Taylor & Francis
Block, J. H., Kohn, K., Miller, D., & Ullrich, K. (2015). Necessity entrepreneurship and competitive strategy. Small Business Economics, 44(1), 37-54
Chang, J. F. (2016). Business process management systems: strategy and implementation. CRC Press
Giri, B. C., & Sharma, S. (2014). Manufacturer’s pricing strategy in a two-level supply chain with competing retailers and advertising cost dependent demand. Economic Modelling, 38, 102-111
Helm, R., & Gritsch, S. (2014). Examining the influence of uncertainty on marketing mix strategy elements in emerging business to business export-markets. International Business Review, 23(2), 418-428
Jain, V., Panchal, G. B., & Kumar, S. (2014). Universal supplier selection via multi-dimensional auction mechanisms for two-way competition in oligopoly market of supply chain. Omega, 47, 127-137
Leih, S., & Teece, D. (2014). Market Entry Strategies
Novy-Marx, R. (2013). The other side of value: The gross profitability premium. Journal of Financial Economics, 108(1), 1-28
Papadopoulos, N., & Heslop, L. A. (2014). Product-country images: Impact and role in international marketing. Routledge
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