The public began to find Eric Schou product and quality very useful and the news spread through mouth to mouth, and especially the quality was the fishermen impressed about. They were accustomed to a product which often went broke during use. Now there was this product with enormously durable and able to cope with the hard structures on the sea. Along with the increasing demand Eric Schou could see that it was the right customer basis to start his own business.
Roblon has today 150 employs working, in their three divisoner: Engineering, Industrial Fiber and Fiber Optics.
2. Situations analysis
Head of state in China Hu Jintao, and has stayed in power, where he will sit to 2012. Since both Denmark and China is a member of the WTO, it means that all deals between countries are against international laws and regulations. This means that when Danish exporters to sell goods to China, he will rarely meet requirements as he is not accustomed to from their own country.
3. Analysis of demand
For Roblon it is very important to maintain a good image of their product. It is therefore important for Roblon, to ensure that they can provide the best possible publicity when they enter the Chinese market. This can be done in several ways, but Roblon ways to do this is to continue to produce products which are at a very high quality, so they will not be forgotten, and the buyers’ wants to make a repurchase.
One of the reasons that the company might have chosen this particular form of exports could be for example that the Chinese sales agent knows the market; they know what areas of china and who need this specific product.
Benefits of using indirect distribution and thus an intermediary are:
• Influence on marketing.
• Accelerating the spread of the product.
• Sells in their own brand.
• Knowledge of the public.
Apart from the above arguments, it can be seen that this form of distribution can be an economic advantage for Roblon; because of this form of distribution it only requires a small investment. It will be the sales agent which will have to create the contact and therefore they don’t need to build an export department. The agent has also a lot of knowledge about the Chinese market, which would then minimize the impending mismanagement.
It is certainly an advantage to sell in its own name as it is not only going to be a no-name product for the Chinese.
4. Analysis of competition
Price competition in China in industrial fiber cable seems to keep its prices at a level which approximates the market.
It seems that most Chinese companies have a preference to foreign products.
5. Assessment
Roblon afford to market their product in the Chinese market through a profit of 24.6 million Danish kroner 06/07 years. And they will also allocate more money to promote themselves.
6. Target
The economic targets Roblon has on their exports to China could read as follows:
• Increase the income by 20% in China
The marketing objectives could read as follows:
• To be a well-known supplier in the industry fiber cables
7. Segmentation and choice of target
S: The target audience has been growing in recent years, and will remain so, with a 15% increase in the market.
M: The opportunities to reach the target audience is good, but it requires enough even greater degree of promotion than what we have seen previously from Roblon.
D: The cost comes to processing such a large market as the Chinese would be great. This is due to ads in business magazines, fair and agents are required to communicate the existence of the product to other companies.
C: Competition situation is tough, because there are many providers of this particular product as Roblon also produce. Many of Roblons competitors in this market they just want to get a quick profit and their products are not of equally high quality as Roblon.
9. Differentiation
Focus differentiation
This will fit Roblon best, it will be for several reasons. For an example, they will have to focus on the unique products, the products will be appreciated and interested customers know that they are a serious business. Another important point is that they do not yet have the large market share in the Chinese market.
10. Positioning
Since Roblon have a USP-Unique Selling Proportion, it is that they offer customers the ability to special design the product they are facing and shortcomings. The only requirement is that it simply must be a further development in one of their previous products.
12. Conclusion
There are clearly opportunities in the Chinese marked to sell their products. This is due to the Chinese economy rattling ahead, and that Chinese companies increasingly need foreign quality products.
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