International Trade Essay Example | Topics and Well Written Essays - 2750 words

International Trade - Essay Example Electrolux is an established brand of the Company, and a mature product in its portfolio. It has gained critical acclaim for meeting most of the customers’ functional needs. Electrolux Tumble Dryer is a product of an American firm and it is sought to be marketed in India through Electrolux label as its product. The game plan is to capture the Indian market for this line of products through a well conceived Disruptive Marketing Strategy. A comparative study of all existing players in the field and observation of emerging trends with potential to impact the market in the coming few years forms the bedrock of this strategy. Thus this Document will be a crucial turning point in the Business History of the Company. The Document examines the position of Electrolux Brand in the context of the Indian Market. It also looks at the Tumble dryer for its strengths and weaknesses and their potential impact on the Indian customer preference. A study of the Market Plan reveals that the merits possessed by Electrolux Tumbler Dryers closely match the needs of a large number of Target markets. The Plan sets targets for Electrolux to penetrate the Indian Market and the ways to do so. This Document identifies some of the major points essential for making an objective analysis of the Indian Market scene with regard to the introduction of this American product. 1.1 Potential Market Size There is an assumption that the developed market of India, with its existing structural setting will control the market position for Tumble dryers. The market is composed of Manufactures from abroad producing in India, Importers, Whole sale traders and retailers. Many of the Foreign Manufacturers are also their own importers. The Wholesale traders generally have composite inventory consisting of several competing products or other allied goods of the same manufacturers. Retail trade also works on the same lines, (Koch, 2001). Some Retailers have significant presence in the retail market. Tumble Dryers are not seen sold in dependent retail shops in India because this product is not yet popular in the society. But survey shows they are willing to prepare and be ready for special orders. Independent shop owners account for about 80% of the Indian Retail Market and the remaining 20% is shared by several different channels. A review of the market in India shows that no proper distribution network is present for Tumble dryers. The potential customers are not even well informed of the existence of the product and its unique advantages. Available purchase points also do not seem to be educating the potential buyers about the product, (Huang, & Sternquist, 2007). Retail Stores in India are very few in number and the Managers do not have any effective stay in the choice of products that make up their stock in trade. International; products are not marketed in this kind of set up. They are sold through Retail Chains where centralized decision making ensures that the shops are invari ably supplied the product in adequate quantity, depending on sales. Therefore introduction of Electrolux Tumbler Dryer to the Indian market may appear to be starting with a disadvantage. Another problem is that the product requires its own, dedicated Gas supply channel.