International marketing WS 2019/20, FBE MENDELU

Marketing plan for

TONAK products
sales
in Germany

Elaborated by:

Catalina Plamadeala
Report #1
Market overview
The main aim of this marketing plan is to introduce a German company the reasons why they
should import TONAK products.
TONAK is one of the world's largest and most important manufacturers of headgear. The
two-hundred year tradition of production in Nový Jičín and Strakonice together with
considerable know-how guarantee high product quality. But it is not well-known abroad, that
is why we should expand our products in Germany. (Tonak, 2019)
Important aspects to consider:
a) Weather
Czech Republic is neighbour country of Germany and there is
not a notorious difference in weather and time zone, which is
an important aspect.
b) Location
Germany is a proximal country of the Czech Republic, which
represents an important advantage in trading and logistics.
c) Currencies
Czech Republic uses Czech crowns while Germany uses Euro.
1 Eur= 25.59 czk (18.11.2019)
d) Entry Barriers to the German market
Since both Germany and the Czech Republic are members of the European Union,
WTO and WATT, there are little to none Entry Barriers. The European union is a free
trade area, which means we can export our product without any impending barriers.
e) GDP per capita world ranking

f) Culture
Both Germany and Czech Republic have similar manner of doing business. Although,
there are some cultural aspects that are different, for example:
 (1) Propensity for Improvisation. Czech people tend to solve problems quickly
while German people is used to debate first.
(2) Avoidance of Conflict. German people is more direct while Czech people are
more hesitant, and they tend to avoid direct confrontation.
(3) Rejection of hierarchical structures. Czech people are not used to criticism,
even though it comes from a superior.
Why TONAK?
TONAK was founded in 1799, it is the most famous hat brand in the Czech Republic. Tonak
mostly produces felt or linen hats, for ladies, gentlemen, and children.
Today, the company runs two factories, in Nový Jičín, in Moravia, and Strakonice, a South
Bohemian town famous for the production of fez hats. (Avant garde, 2017)

The beginnings of hat making in Nový Jičín date back to 1630 when the town council
confirmed the articles of the hat makers’ guild. Young journeyman Jan Nepomuk Hückel was
admitted to the Nový Jičín hat making guild in 1799 and founded a hat making shop.
The product quality followed on from the previous handmade standard and they soon asserted
themselves on Austrian as well as international markets. Hückel installed machines in 1865,
becoming the founder of machine factory production of fur felt hats.

TONAK is well known for its high quality products and market stability. Their product range
includes a wide selection of millinery products, primarily felt hats, hat bodies and knitted
headwear, enabling us to satisfy any customer requirements from around the world. (TONAK,
2019)
Market Characteristics
Distance.
We chose to export baseball
hats to Dresden Dukes e.V.,
which is a baseball club in
Dresden, Germany, because it is
the closest one and we can save
up money from transportation
costs.
The distance from Nový Jičín,
Czech Republic to Dresden,
Germany is about 448 km and it
takes about 5 hours through the
road.
TONAK
Competitors.

Currently, their equipment and clothing supplier is Dugout24.de.

The main competitor is Headwear production

which is a headwear production and
distribution agency located in Germay. They
offer customized headwear, for example
snapback, base caps, dad cap, 5-panel, strap
back, flex fit, trucker cap, bucket hat, beanie, fedora.

Report #2

Dresden Dukes e.V. is divided into

3 categories.
1) Dragons
2) Little Dukes
3) Bee-Ball

Thus, TONAK company will be

able to provide baseball hats for
special events as international
meetings, focus on the
representative team members, as
well as for each category which
includes children, teenagers, women and men.
Moreover, TONAK will add a special symbol on our TONAK hat, to personalize the style for
each category. For example, for Dragons category TONAK will add D letter on it.

D D

Customer behaviour
Dresden Dukes’s type of consumer behaviour belongs to Extensive decision making type.
The company spends much longer time for making a decision when it comes to purchasing an
expensive product. And they are spending time carrying out research and comparing multiple
products. They check product ratings and also ask sales professionals.
Frequency of purchasing
Dresden Dukes e.V.club purchase equipment once a year. As every year, they have a selection
of new incoming members and for each of them the company should provide equipment.

Baseball caps are the vital part of the whole equipment. The advantage of TONAK products is
that it has high product quality.

Report #3
Product
Since TONAK will provide baseball hats to the Dresden Dukes for special team events, the
provided hats should be made from high quality materials. Our suggestions:
Baseball Cap Esprite
The „Baseball Cap Esprite“, which is made 100% from fur felt, as the higher priced option.
Price: 117€/hat
Baseball Cap Stretti Stone and Baseball Cap
If your teams want to rather choose a medium-priced hat, TONAK has options in their
portfolio for you. For that, TONAK offers the „Baseball Cap Stretti Stone“.
The main section of the hat is made from 100% cotton & the lining is made from 100%
viscose. (TONAK, 2019)
Price: 43€/hat.

The low-priced hat TONAK offers, is the standard „Baseball Cap“. The main section of the
hat is made from mixed materials: 65% polyester, 35% cotton, 50% cork wood, 25% cotton,
25% polyester. The lining is made 100% from cotton. (TONAK, 2019)
Price: 39€/hat.

Individualisation and Sponsoring

If you like a product, but want to change or add something, feel free to tell TONAK. They can
individualise the product as you wish.
If you are thriving for a discounted price, there are possibilities for sponsoring. You could
either keep your current sponsor „Dugout24.de“ or ask TONAK if they offer to sponsor you.
Distribution and Logistics

As the distance from Novy Jicin to Dresden is about 448 km,

we suggest you the land transportation to deliver TONAK
product. So we recommend two logistics companies:

The first one is CEVA’s Cross-border transportation across

Europe.European Ground transportation operations through
Control Tower based in Antwerp, Belgium offering a single
point of contact for customers. The employees in this
company speak a wide array of languages which makes it
easier for customers and their logistics partners to
communicate. (CEVA company, 2016）

The second company is OSACARGO which is a

Reliable road transport across Europe company.

Germany's highway
system has one of the
greatest kilometer density
levels in Europe.( World's
Top-Ranked,
Infrastructure.nd) And the
Czech Republic's infrastructure is among the best in Central and Eastern Europe. The
country's location at the very center of Europe makes it a natural crossroads for major transit
corridors. An extensive network of transport routes serves not only the Czech Republic but
also links the country to neighboring and other European countries.（CzechInvest, 2018)
Therefore, the transportation of highway between Czech Republic and Germany is very
convienent and efficient.
INCOTERMS Option
The INCOTERMS we suggest is DDP (Delivered Duty Paid). (ICC, 2010). TONAK is
responsible for delivering the goods to the named place in the country of the Dresden Dukes,
and pays all costs in bringing the goods to the destination including import duties and taxes.
This term places the maximum obligations on the seller and minimum obligations on the
buyer. No risk or responsibility is transferred to the buyer until delivery of the goods at the
named place of destination.
TONAK offers to export its products directly to their customers - in this case to the Dresden
Dukes. At the moment, TONAK’s hats are not for commercial sale, thus, brick - mortar
stores or webshop are not needed.
Sources
1. GTAI (Germany Trade and Invest), World's Top-RankedInfrastructure. [online].
Retrieved from: https://www.gtai.de/GTAI/Navigation/EN/Invest/Business-location-
germany/Business-climate/infrastructure.html [Accessed 18.11.2019]
2. CzechInvest (Business and Investment Agency), Infrastructure in the Czech Republic.
[online]
Retrieved from: https://www.czechinvest.org/en/Doing-business-in-the-Czech-
Republic/Infrastructure [Accessed 18.11.2019]
3. CEVA Company, Contract Logistics. [online]. Retrieved from:
https://www.cevalogistics.com/contract-logistics [Accessed 18.11.2019]
4. OSACARGO Company, About Us. Transport & Logistics Services all around Europe.
[online].Retrieved from: https://www.osacargo.com/about-us/ [Accessed 18.11.2019]
5. MGM Research, World GDP Ranking 2019. [online]. Retrieved from:
https://mgmresearch.com/world-gdp-ranking-2019/ [Accessed 16. 11.2019]
6. Headwear Production, Our services. [online]. Retrieved from:
http://headwearproduction.com [Accessed 19.10.2019]
7. Avant Garde Prague, TONAK. [online]. Retrieved from: https://www.avantgarde-
prague.com/shopping/tonak/detail [Accessed 10.11.2019]
8. TONAK, Lookbook. [online]. Retrieved from:
https://www.tonak.cz/kolekce/2019/podzim-zima/ [Accessed 20.10.2019]
9. ICC (International Chamber of Commerce), INCOTERMS 2010. [online]. Retrieved from:
https://iccwbo.org/resources-for-business/incoterms-rules/incoterms-rules-2010/
[Accessed 19.11.2019]