International Marketing Tips and Samples of Firm Interviews Samples from Previous Classes: Particularly, I would use funnel technique (begin the interviewing questions with broad ones, then down to specific). See below. Part A: General Why is it important for Church's Chicken to seek international market? Who is your target customer group for the international market? Do you look for country that are appealed to westernizing the economy? previous successfull experience in foreign markets? - What special actions do you take to reach this target group? Do you know that Department of Commerce and other government agencies offer free assistance for firms to tap global markets? (e.g., www.export.gov ; www.ita.doc.gov ) Part B: Global Marketing Environment: Because of the size of Puerto Rico, how does Churchs decide when the market is saturated? (Supply vs. Demand) - How is the demand measured for Puerto Rico? Although Puerto Rico is a US territory, what culture differences do you find as obstacles to entering the Puerto Rico market? What employment challenges do you face with the local citizens of Puerto Rico? (i.e. labor unions, work ethic, pay rate, holidays) What legislation (local & federal) has to be taken into consideration if setting up a store in the US versus Puerto Rico? With regards to international trade, what difference so you note with trade tariffs, taxation laws when dealing with a US territory versus US state or another country? Does the local climate play a factor? Part C: Global Marketing Strategy Development What criteria do you use to find a location for a Church's Chicken store in Puerto Rico? - Do you find domestic or industrial areas more attractive to locate a store? What is the approximate ration of franchised to company owned stores in Puerto Rico? - Is their a preference for Puerto Rico and why? Do you deal with your suppliers in Puerto Rico the same as the US? (i.e. equipment for setting up stores, daily operation supplies such as food) What is Church?ˉs price strategy in Puerto Rico compared to the US? Do you have any changes on the product line compared to the US? How is quality control reinforced? What promotions were successful for Church?ˉs in Puerto Rico? - What considerations do you take into account? IKEA SWOT Analysis Strengths Strong international brand recognition built upon a unique philosophy and low product prices. Solid sales performances since 1997. Total control on design, pricing and supply of product ranges globally. A product portfolio that caters for most consumer lifestyles, life stages and budgets. Opportunities Expansion into emerging markets in Asia and Eastern Europe. The development of premium lines. An increase of sales via the development of e-commerce sites in each country. Weaknesses The retailer is still very much reliant on Europe, with 82% of stores located in this region. Meeting customer expectations of service not just price. Lack of strategic direction. Threats Possible over saturation of the market. Style and format may become unfashionable over time. Competitors are following suit by introducing similar product ranges at low prices. Negative impact on sales of continued depressed economic conditions in its core European market. Global competitors such as MFI, GUS and Euromarket Designs IKEA vs. Top Three Competitors: Product GUS Self Manufacturer Products no Small Electronics, Jewelry, Toys, Furniture, Housewares MFI yes Euromarket Designs no IKEA no Home Furniture, Housewares Household Goods, Furniture, Accessories Home Furniture, Housewares Place Promotion Self Assemble Advertising Stores no TV, Newspaper Ads, Store Sales, Catalogue, Internet 561 in 4 countries no TV, Newspaper Ads, Store Sales, Catalogue, Internet Catalogue, Internet, Store Sales, Word of Mouth yes TV, Newspaper ads, Store sales, Catalogue, Internet yes 190 130 in 1 country 200 in 32 countries Price Internet Catalogue yes yes Store Financing yes Philosophy "Low prices, more choice, less hassle" yes yes yes yes yes no ". . .help people live better lives in their homes. We offer products at unbeatable prices . . ."Low prices, more choice, less hassle" "Passion is the word that best captures our fascination and obsession with innovative, highquality design" no "To create well-designed, functional home furnishings available to as many people as possible" yes yes Strategy Low Low to Mid Mid to High Low to Mid IKEA Management Interview Telephone Interview with Arnice Brown, Customer Service Manager, of the IKEA store in College Park, Maryland. QUESTION Do you carry the same products in your store as are carried in other U.S. stores? ANSWER No, each store carries a slightly different product line. The differences in products that are carried in each store differ primarily based on the store's size as well as the geographic area. Each store carries the same basic products, but larger stores will offer larger product selections and more varieties of products than the smaller stores. Do you offer any customization of products offered in your stores? Yes, IKEA offers very limited customization. For instance, furniture such as couches and chairs are advertised in the catalog and in the stores in basic colors. A customer can choose to custom-order a couch to be in a different color than the standard color. There is a limited choice of color choices from which the customer must choose. No, she does not know. Do you know what IKEA executives look for in determining where to expand? Does each store advertise in the same manner? Does the management of an individual store have any flexibility in advertising? Do the stores in the US have the same products as other stores in other countries? She had limited knowledge of this area, but said that for the most part, all advertising was coordinated at the corporate level. Each store has very limited advertising flexibility, such as the ability to donate small amounts of funds to local charities or youth organizations. For the most part, yes, the stores have the same product offerings. However, there will be some differences, similar to the differences that can be evidenced between different stores in the U.S.