Economic Political and Legal Concerns in Marketing a Product in Czech

¶ … Staffing Approaches

ABC Company

My first strategy will endeavor to address the mean income of the country concerning marketing front load washers and dryers. To penetrate the market, I believe price reduction should ensure inevitably to capture a wider customer base. The gas-powered dryers are the main target for ABC in venturing into the Czech Republic. Currently, front load washers and dryers retail at about $2,000, depending on the manufacturer. The machines of ABC Company will depict high efficiency attributed to wastage of less power. Additionally, the machines would be star rated, observing minimum energy performance standards and ratings. As the CEO, I will ensure that the machines introduced to the Czech Republic market will conform to electrical ratings of the nation based on factors like volts, watts, and amperes.

Economic Concerns

Recently, Czech consumers have remained careful in their choices of purchasing home laundry appliances. The economic crisis has affected the nation, and it explains the increased awareness of the economic aspects at hand to avoid purchasing uneconomical laundry products. In 2014, for example, value sales increased by about 2% whereas the volumes sales growth was 1% (Euromonitor International, 2015). Based on this statistics, we realize that consumers are not ready to spend on home appliances, only if the necessity arises.

Based on this concern, ABC will endeavor to provide customers with affordable front load washers and dryers. Redesign of the products to reflect the market requirements depicts the essence of affordable and economical products that meets the needs of consumers. Newly developed technologies in the market foresee a reduction of manufacturing and production costs. As a result, ABC Company will utilize these opportunities to offer affordable and economical washing appliances to the consumers.

Legal and Political Concerns

Since the collapse of communism back in 1989, the government in the Czech Republic has engaged in a bold move endeavored to facilitate the restructuring of the economy. Today, the private sector drives 80% of the nation's GDP. Czech depicts one of the best infrastructure networks within the region. As one of the stable and prosperous markets in Central Europe, Czech Republic has managed to attract foreign direct investment (FDI). In 2013, FDI stood at the U.S. $136 billion (The World Bank, 2015). The business legal climate is conducive that allows new entrants to venture into the market. Political stability and legal goodwill of the nation have placed the nation as a hotspot for foreign direct investments (FDI) within central Europe. Based on these factors, it is evident that ABC Company will capitalize on the good business climate to encourage productivity and positivity in driving market sales.

Product Differentiation and Alteration Strategies

Low-cost strategy and advertising will occur as the prominent driving force to ABC Company in the Czech market. Based on the biting economic crisis, it evident that the citizens will not 'splash' money in purchasing home appliances, the front load washers, and dryers. Lowering costs while utilizing the well-informed technology of water and power will attract many customers. Venturing into a new market also calls for advertising, especially on the online platform of the new, innovative, and affordable product in the market. Alteration strategies depict conformity of the product's specification, in this case, performance and efficiency regarding the market needs.

Marketing Mix Strategies (Price, Promotion, and Place);

The marketing mix strategies I endeavor to include low pricing of the products compared to the existing ones in the market. Based on an average cost of $2,000 currently depicted in the market, I would enforce a reduction of about $100. Undoubtedly, the low pricing strategy will attract a majority of the consumers ready to purchase the front load washers and dryers from our company. In product promotion, I will utilize advertising strategies as a method of raising product awareness to create brand loyalty.

Utilizing the e-commerce platform will enable me to cut costs in advertising and reach a wider market group. Czech has embraced the use of the Internet in many households. As a result, online marketing will pay off. The target market of ABC products encompasses a wider market reach, especially the middle and low classes in the society. The biting economy crisis means that these two classes will require a cost-effective product, based on power and cost of purchase. I would position the products in major retail stores in various cities and towns in the country.

Staffing Approaches

Ethnocentric Staffing. The approach depicts deployment of foreign country staff to serve major position in foreign subsidiaries of the company.