BBA3823 NAME:-Nimesh Bista

Innovation management for global competitiveness LC:-00023000174

BBA
Six Semester
1. Explain the market expansion strategies of sanex.
Sanex was developed as a liquid personal soap in 1984. its success was established
quickly-with in a year it had gained market leadership in Spain.
Market expansion is a business growth strategy. Companies adopt a market expansion
strategy when their growth peaks in existing channels. Success depends on confirming
that they have fulfilled existing markets. Companies must then identify other markets
that are easy to reach.

The market expansion strategy of sanex was to launch the product simultaneously on
a number of European markets.the idea behind this strategy was that sanex should
obtain a first-mover advantage,which meant that the big competitors did not have time
to copy the product concept before sanex had product extensions ready for
international market launching.similarly sanex concept of sanex shower gel was well
understood in most countries,but the potential for the brand would be different.

2. Elaborate with the reason behind the success of sanex.

Creating positive and sustainable consumer conversations around fast moving
consumer goods can be problematic. The Sara Lee brand, Sanex, sought to directly
meet this challenge by marrying a powerful advertising campaign, ‘Celebrating Skin’,
with complementary social media activity.A key aim of the ‘Celebrating Skin’
campaign was to take ownership of the ‘healthy skin territory’ across European
markets.
With little or no competitor activity embracing the digital arena, this was a perfect
opportunity for Sanex to enhance its brand visibility online.Interest clusters were first
identified. These included a range of groups from photography, choreography and
beauty blogs to forums on advertising, marketing and branding.
Influence were then targeted within these groups and were engaged using a range of
inspiring creative assets, including a popular behind-the-scenes choreography video,
detailing the dance vignettes orchestrated by renowned Cuban choreographer, Alex
Verona.
The main key factor which gives success for sanex are:-
 Positioning
Market segmentation

 Marketing mix
Product
Promotion

 No cultural barriers
 Single brand
 USP health concept

1
3. Describe the international market selection screening process of Sanex.
The international market selection process is different in small and medium-sized
enterprises (SMEs) and large-scale enterprises (LSEs).
In the SME, the IMS is often simply a reaction to a stimulus provided by a change
agent. This agent can appear in the form of an unsolicited order. Government agencies,
chambers of commerce and other change agents may also bring foreign opportunities
to the firm’s attention. Such cases constitute an externally driven decision in
which the exporter simply responds to an opportunity in a given market.
Selecting the right markets and learning how to reach out to them could determine the
viability expansion strategy. These markets will shape international development,
business planning and growth potential.

The international market selection screening process of sanex are:-

A. Environment and market analysis
Analyse the variables for each country:
 GDP growth – including the country’s growth prospects for infrastructure and the
demand for tourism products
 country risk – including political or social unrest, insecurity and currency
devaluations
 political factors – including the degree of political intervention in business
decisions, political and social stability, and possible alliances or trade agreements
with your country of origin
 other factors – including geographic proximity, and the similarity to your source
market in terms of business and social culture

B. Analysis of competition
To analyse competition in market:
 identify main competitors and describe them
 analyse their economic evolution and sales over the last 3 years
 detect their distinguishing factors – including prices, channels, market maturity,
financial position, development potential and plans and/or expansion strategies

C. Distribution channel
Choice of distribution channel will determine how your company expands in the
market.
Track the supply chain of your product, from its origins to its final customer. Develop
a clear idea of the intermediate operators and their prices. Analyse the existing sales
structure in the country and how this could be adapted to your product or service.

There are a number of possible distribution channels:

 international distribution from own market

 a local distributor in the target market
 own commercial agent
 the internet
 a subsidiary or delegated company
 the creation of a joint venture with a local partner

2
D. Demand analysis

They need to analyse the current and potential demand of product in its source market,
as well as its profile and expected evolution. This information should confirm that
your re-selection process was successful and that chosen markets are suitable for
product.

Design your subsequent marketing strategy based on price, presentation, promotion,

distribution and so on. We recommend that this initial analysis is backed-up by further
research in the market itself or through intermediaries. This will help you assess
whether your initial analysis was correct.