MARKETING STRATEGY

Marketing Strategy for Introducing FREITAG Brand in Brazil

Table of Contents

Introduction1

Analysis for Market Entry2

Exporting3

Strengths of the Exporting strategy3

Weaknesses of Exporting Strategy4

International Marketing Plan4

Situation Analysis5

External Situational Analysis5

Political situation5

Economic Situation5

Social Situation6

Cultural Situation6

Internal Situation Analysis6

FREITAG's Budget and Finance6

FREITAG's Resources7

Marketing Capabilities7

SWOT Analysis7

Strengths7

Weaknesses8

Opportunities8

Threats8

Target Market Analysis8

Competitor Analysis8

Customer Analysis9

Market Segmentation9

Market Targeting9

Market Positioning9

Marketing Objectives10

Strategy formulation10

Product Strategy10

Price Strategy10

Place Strategy11

Promotion Strategy11

Marketing Implementation11

Marketing Control12

Conclusion13

References14

Marketing Strategy for Introducing FREITAG Brand in Brazil

Introduction

The FREITAG is the outstanding and phenomenal cult brand of innovative bags. The brand was launched by Daniel and Markus Freitag at Zurich, Switzerland in 1993. The FREITAG products include messenger bags, handbags, sports bags, shopping bags and a wide range known as accessories like laptop and iphone sleeves, shoulder pads, iPod cases, and key chains. The recent and remarkable product expansion of FREITAG is their collaboration with Pelé Sports leading to production of trendy, attractive and colourful footballs. Their headquarters are still in Zurich, Switzerland but now they are a brand known and admired at world level. Another success is their Flagship stores that are constructed from rusted and discarded cargo containers. FREITAG has expanded widely by recognizing the extensive market for their unique bags. At present they are running five flagship stores across Germany and Switzerland and 300 stores throughout the world mainly located in Shanghai, New York, London, Berlin, Vienna and Paris.

The thing that makes FREITAG unique from other brands excelling in bag industry is their idea of utilizing recycled scrap like truck tarpaulins, bicycle inner tubes, car seat belts and airbags. Their debut creation was a messenger bag made from truck tarpaulin in 1993 and then it set them on the way to success where they never looked back. They create bags with the objective of making them trendy, durable and capable of bearing uncertain weather conditions of Switzerland. The whole process of manufacturing FREITAG bags is completed at the premises of FREITAG at Switzerland where truck tarpaulins are washed, cut and cultivated into stylish bags. After years of struggle and creative endeavours, now FREITAG is looking for internationalising their products to gain recognition and earn profits at a wider level. According to Brechbühl(2008),since the year when Marcus and Daniel produced their first set of 40 F-bags, their production has been increasing at a surprising rate. The following graph reveals their subsequent productions with the passage of time.

Figure 1) Increase in Production of FREITAG

Followed by the FREITAG's incredible success in Switzerland, Japan and England, now the FREITAG brothers want to expand their production further by entering the market of Brazil that always welcomes sustainable and trendy ideas. Analysis for Market Entry

The selection of a market entry method for executing the expansion is the fundamental state in entering international market. According to Bennett (2002), the strategy to enter the market of Brazil needs to be worked out deeply so that it can comply with the competitive and sophisticated nature of Brazil(pp.243). After analyzing all the relative circumstances, it becomes obvious that exporting would be the best method to enter the market of Brazil in the initial ...