Import Plan:

How can Rossmann GmbH import

Gatsbys wax creams for men on the

German market?

Looked at different products to be Imported

Chose the one with highest:

Market size (value in terms of sales and quantities)

Potential growth

Looked for the best country:

Country selection inicated - Germany

Looked for the best supplier

Distributor selection indicated Rossmann GmbH

Introduction

Pre-filter

Gross Domestic Product (GDP) per capita

Inflation

Unemployment rate

Population

First Filter

Market value

Market volume

Segment size

Projected growth market value

Projected growth market volume

Second Filter

Urbanization

Infrastructure

Trading across borders

Global competitive index rate

Country selection

Macro analysis

PESTLE

Meso analysis

Hair-care Market analysis

Industry analysis

Market Structure

Micro analysis

Customer Analysis

Competitor analysis

External analysis

Political

Economic

Social

Technological

Legal

Environmental

Macro-economic analysis

Meso-environmental analysis

Market analysis

Market size

Market growth

Market structure

Monopolistic competition

Porters five competitive forces

Buyer power

Supplier power

Threat of new entry

Substitude products

Rivalry

Micro-environmental analysis

Customer analysis

Segmentation

Customer Motivations

Unmet needs

Competitor analysis

Product Competitors

LOreal

Henkel

P&G

Distribution Competitors

Organizational Analysis

Company Overview

McKinsey 7S Model (staff, strategy, structure, shared values, skills, style, systems)

Financial Analysis

Cost analysis

Budgeting

Pro-forma Income Statement

Ratio conclusions

Marketing Mix analysis

Product

Place

Price

Promotion (Promotional Packages)

Internal analysis

Newbie Shopper

Focus Strategy

Mass-Marketing and Differentiation Targeting

Hybrid (combination of cost leadership and differentiation)

Competitive Advantage

MORE FOR LESS Positioning

Quality, Value, self-expressive, product attribute, appealing design Value Proposition

Brand Building and Distribution Functional strategies

Business Plan

Targeting:

Targeting: The Newbie Shopper

20s-30s

Service industry

High disposable income

Well educated

Focus vs multiple segment Focus strategy meet unmet

demand

Targeting strategy:

Combination between mass-marketing and differentiation strategy

To little research on motivations to buy

Impractical to focus - differentiation

Competitive Advantage Strategy

Differentiation:

Product Focus solely on men

Channel Rossmann is not a typical supermarket, but a drugstore

Image Enhance the image

Cost Leadership:

Supply chain management (ECR)

Operations and Distribution economies

Shelf management

Hybrid Strategy

(high quality, low price)

Differentiation Strategy

(high quality, high price)

Price-based Strategy (low quality, low

price)

Zone X

Positioning strategy

Based on the competitive advantage strategy:

More Quality

Less Price

Value proposition

Product Benefit wax for men

Self-expressive I am...

Appealing design wear in the pocket

Quality reflect Rossmanns image

Value price is a driving force (high elasticity of demand)

Value proposition

Product benefit

Appealing design

Value Quality

Self-expressive

benefits

Functional strategies

Brand building strategy:

Achieved through the Marketing mix:

Rossmann promotes Gatsby

Gatsby gains awareness

Gatsby supports the image of Rossmann

Distribution strategy:

Direct Import

Osaka-Hamburg (BAS/FOB)

1,875,000 Products

5 40ft FCL containers

375,000 per container

Trucks to take 5 containers to the 5 cities

Market Entry Strategy

Direct import:

Disintermediation

Partnership based on exclusive rights

Localized strategy

Also like Japanese products

Advantages:

Control of Supply-chain

Create a monopoly in male hair-care

Increased brand equity

Sharing risk

Marketing Mix

Product

Spiky Edge

Grunge Mat

Wet Texture

Wild Shake

Multi-form

Loose Shuffle

Price

Market Penetration Pricing

Place

Berlin

Frankfurt

Dsseldorf

Hamburg

Munich

Promotion

Premium Package

Standard Pakage

Basic Package

Considerations:

CE Mark

Test Group

Colours

Physical differentiation

Repackaging

Brand name

Is it a word in German?

Product

Price and Place

Market penetration pricing

To obtain a dominant position

Capture higher percentage of the sub-market

To avoid being perceived as lower quality:

Place in the right category

Communicate substance behind the low cost

5 Distribution points:

All part of top10 German wealthies cities

Berlin

Frankfurt

Dsseldorf

Hamburg

Munich

Promotion (1 out of 3)

Different combinations of: 1. Online promotion

Facebook, Youtube, Google awards (endorse a football player)

2. Newsletters and brouchures Put them in shop 1 month before start of sales

3. Samples Can be distributed at viral locations

The Movie Allow customers to feel the product and get excited about it

Promotion (2 out of 3)

4. Posters

Posters of people from different ethnical varieties

Gatsby, Mens care for every type of hair

5. The Great Gatsby

On DVDs - Advertisement before the movie

Samples

6. Magazines - Mens health Magazine

Show different styles

Explain how to use

Focus on different ethnic groups

7. Mobile App

Young customers (smartphones)

Increase interaction

Promotion (3 out of 3)

3 Packages:

Premium 2,500,000 EUR

Online Promotion, Newsletters and Brochures, Samples, Posters, The Movie, Magazine and a Mobile APP

Standard 1,100,000 EUR

Online Promotion, Newsletters and Brochures, Samples and Magazines

Basic 500,000 EUR

Only Newsletters and Brochures

Risk and Financial analysis

Risk Analysis

DB1C

Cost analysis

Direct

Indirect

Budgeting

3 case scenarios

Sales Budget

Cash Budget

Pro-forma Income statement

3 case scenarios

Income statements

Risk analysis

Ranks DB1C

DB1-DB7 (indicate degree of risk)

Letter A-D (tendancy of risk)

According to According to Dun & Bradstreet on doing business

Political

Commercial

External

Macroeconomic

Natural Disaster

Table7.5.Costs

Cost of goods sold 7,406,250 (3.95 per unit)

Trade mark costs 1470

Marketing costs 2,500,000 (premium package)

Logistics 204,067.50

Import duty 740,100.70

Total Costs 10,851,888.20

Cost Analysis

68%

23%

2% 7%

Cost Structure in %

CoGs

Trade Mark

Marketing

Logistics

Import Duty

Q1

Q2

Q3

Q4

0

100,000

200,000

300,000

400,000

500,000

WorstNormal

Best

Worst Normal Best

Q1 250,000 359,375 468,750

Q2 250,000 359,375 468,750

Q3 250,000 359,375 468,750

Q4 250,000 359,375 468,750

Sales Per Quarter

- 2,000,000.00

0.00

2,000,000.00

4,000,000.00

6,000,000.00

8,000,000.00

10,000,000.00

12,000,000.00

14,000,000.00

16,000,000.00

18,000,000.00

20,000,000.00

Worst(5%) Normal(60%) Best (35%)

- 1,013,746.96 2,853,720.59

6,397,470.56

10,851,888.20 10,851,888.20 10,851,888.20

10,000,000.00

14,375,000.00

18,750,000.00

Net Income Expenses Sales

Case Scenarios: Net Income Change

Implementation

2014 - Import Plan

Activity 1 2 3 4 5 6 7 8 9 10 11 12

Register Gatsby in Germany

Shippment of the five containers reachers boarder

Pay Import Duty and other logistics charges

Payments for the Gatsby products

Merchandise reaches Hamburg

Distribute Merchandise to other facilities

Put Merchandise on shelfs

Marketing Campaign

Qualitative Research

Quarterly Meeting

Tax Payment

Top Management Meeting

Months