Essay Sample on Gaining Competitive Advantage: Essential Steps to Entering a Global Market

Introduction

For any industrial organization having the vision to sell its merchandise universally, the hardest assignment is entering the new global market. This is because numerous elements become an integral factor like stiff competition in the new market, first-mover upper-hand; and above all, knowing the preferences and taste of the company's targeted customer segment. Fulfilling the customers desired needs and wants is vital to gaining a competitive advantage with a new product in the global market. In this case, broad research is to be done to determine in-depth the globe's market preferences, taste, distinct marketing styles, population size, and also changing seasons. If the elements mentioned above are not conducted extensively, there is a high failure probability of new product in the new foreign market, thus leading to catastrophic losses. According to USA statistics, 56% of new items that enter the market come up short due to the absence of enough research and study (Murphy, 2015). Therefore, any industrial organization with an objective of introducing a new product to the market should first enter a test product for research reasons in small quantity before manufacturing large scale quantities to prevent losses. On the off chance that the product in testing fails, one ought to promptly stop or do a further market study. On the other hand, if it's fruitful, the company should progress to production phase that includes a massive investment of the resources required (Mohebbi, 2014).

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One significant approach of merchandising these items to the foreign markets from, for instance, in this case to the USA from China is packaging. Packaging form is the innovation of encasing and ensuring items for sale, distribution, use, and storage. It involves planning, assessment, and products packages production. Due to different evolvement of distinct approaches because of technology, packaging also has evolved into an exceptionally basic tool of marketing. This is because the intimacy of customers' is the present mantra, and packaging is one way to sustain it. Packaging, in this case, is intended to speak a lot more about the item and boost the products sale than before. This is on the grounds that in the international market, there exist other brands of a similar product being introduced; thus, it has to speak for itself to the customers. Therefore, the packaging of products ought to be appealing to the eye, have great and exact subtleties of the item, and ought to persuade clients why they should buy such an item over another equitable by only looking to the products package. The significance of a new product's success and marketing depending on packaging factor is a priority also and should not be under-factored. Packaging, therefore, can be termed as a curving out tool for the new product's brand niche to the targeted customer base in the international market (Mohebbi, 2014).

Industrial manufacturers need to be adaptive and innovative to evolving times. A study was conducted using the customers of three Wal-Mart Supermarkets as the study population crosswise over America to determine what causes them to settle on the utilization of new items. 60% of the sampled population gave a reaction that they decided on their choice because of the product packaging (Packaging-gateway.com, 2019). Their major packaging aspect provided overall in-depth information of what they needed to know about the product. This is on the grounds that other different data sources related to the new product, for example, advertisements on televisions, radio, and newspaper might be misleading the customers or little biased. They may likewise not be effectively open to all individuals conveniently. To the studied population, the packaging allows them to quickly know a ton about the item, spare time, and above all contrast it with the items substitutes. This way, the packaging is essential as it assists customers in making informed decisions while choosing products to choose in the market.

The carton type and simplicity of opening of the new product are likewise significant in a new market. A Picture a situation whereby clients purchase products which have been enveloped entanglement that the clients may even require the assistance from market staff to open it, logically. Next time that client goes out on the town to shop, he/she will search for an item that its packaging and folding is easy to manage (Mazhar et al. 2015). For instance, the above situation occurred to Bird Limited in 2006 while selling its telephones. The packaging of the phones was so confused with the end goal that over 70% of those who's got it vented their disappointment through social media platforms on the muddled idea of unwrapping the package to utilize the telephone. In that financial year, Bird Limited experienced a massive decrease in sales until they changed the packaging form of their manufactured phones to a folding carton. Based on the above example, it is essential to utilize a folding box, which is very easy to use to clients. As a result, the packaging user-friendliness creates customer loyalty to the brand, thus building the long term success of the new product in the international market.

The carton print color ought to never also be under any circumstance belittle. When contrasting two products, it constantly humanly to see the one with a splendid or/and appealing shading. Therefore, market research should be done to determine which color(s) draws explicitly in the eye of the targeted customer base the most. This is on the grounds that seeing accepts and what the eye sees and finds alluring, it acknowledges it. In this case, China's production group needs to obtain the information of what color will attract its targeted customers in the USA for the success of the product as it will act as a significant differentiating factor between great and average sales. After the study, the particular discovered color is applied on the product's packaging. Both the carton type, folding and color (packaging) will help in increasing customers flow thus increased product sale and therefore leading to the product success in new foreign market it is desirable to targeted customer base (Mazhar et al. 2015).

Conclusion

As mentioned earlier on, a test run is essential while introducing a new product in the market; hence must be conducted first. If the new item prevails in the international markets- USA, changes in terms of wholesale should be avoided. This is on the grounds that it is inadvisable to attempt to fix the unbroken product. The best approach is to enhance the product with an objective of brand inculcating loyalty to its customers. On the other hand, if the product is unsuccessful in USA markets, the product manufactures in China should take into consideration in changing the product packaging. For instance, in 2000, Miranda sodas organization when they just touched base in the market packaged their beverages with the end goal that they utilized metal covers needed to use openers to open them. This demonstrated to be a test to customers who settled on different beverages that had plastic-hand-opened covers. On understanding this, the organization quickly acted to address this, which made them make back the initial investment. This increased Miranda sodas finances by 26% in that financial year (Suntory PepsiCo, 2019). This showed the significance of marketing through packaging.

References

Mazhar, M., Daud, S., Arz Bhutto, S., & Mubeen, M. (2015). Impact of Product Packaging on Consumers Buying Behavior: Evidence from Karachi. Journal of Marketing and Consumer Research, 16, 35-42. https://www.researchgate.net/publication/304497679_Impact_of_Product_Packaging_on_Consumers_Buying_Behavior_Evidence_from_Karachi

Mohebbi, B. (2014). The art of packaging: An investigation into the role of color in packaging, marketing, and branding. International Journal of Organizational Leadership, 3, 92-102. https://pdfs.semanticscholar.org/d8b1/9db5bf9c29dbb10fef5ec84de44b38f9e7bc.pdf

Murphy, L. (2015). The Top 10 Challenges in the Market Research Industry. https://greenbookblog.org/2015/06/26/the-top-10-challenges-in-the-market-research-industry/

Packaging-gateway. (2019). Wal-Mart Takes Lead on Sustainable Packaging. https://www.packaging-gateway.com/features/feature1319/

Suntory PepsiCo. (2019). Company History. https://suntorypepsico.vn/page/company-history