ABC Company's strategy for marketing front load washers in Czech Republic

¶ … 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.

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.

Advantages: Alignment of home interests with those of foreign subsidiaries abroad. No cultural or language barriers.

Disadvantages: One may lose perspective and insight provided by local employees in overcoming challenges in the foreign office. For example, drawing all executives from the U.S. to work in the Czech Republic.

Polycentric staffing. The approach entails hiring host-country nationals to take up the various positions of the organization, for example, from mailroom clerks to executive suites others (Vance & Paik, 2015).

Advantages: Host-country nationals have a better view of local market conditions and aspects.

Disadvantages: Local expertise may place local interests above the company's interests.

Geocentric. In this approach, the management mixes staff from different world locations based on their skills like drawing employees from China, Czech Republic, and Mexico, among others (Vance & Paik, 2015).

Advantages: It is easier for the business to be competitive. It encourages cross-cultural relations, thereby exploring new ways of doing business.

Disadvantages: managers have to adapt to simultaneous styles of leadership. High costs of training and relocation of staff drawn from different parts of the world.