October  2010  

 

            Project  Proposal  for  International  Marketing      

 

Amber  Dubinsky   International  Market  Analysis  for  gsetAbstract     [Type  the  abstract  of  the  document  here.  The  abstract  is  typically  a  short   ummary  of  the  

 contents  of  the  document.]  
Authors  

  Brandy  Visscher   Amber  Dubinsky    
Lecturer  

  Christina  Neylan        
   

  BA  Class  e 51  -­‐  e achelor  ia nnternational  s ]anagement  and  Economics   3   t h B   c o m p n  I y   a d d r e s M   [Typ Lucerne  University  of  Applied  Sciences  and  Arts  –  School  of  Business        

Management  Summary  
GetAbstract, a Lucerne based SME, is planning to expand to Edmonton, Canada. GetAbstract summarizes business books, making subscribers the best-read, most expert players in the business scene of today. The mission is to provide executives worldwide with the best in business knowledge. GetAbstract offers the world’s largest library of business books summaries. As the service is online only, the expansion to other countries is primarily about promoting getAbstract to potential customers. Visscher as a resident sales representative in Edmonton will promote getAbstract in different ways. Not only will she have personal contact with the targeted potential customers but she will also monitor the business book trends and assist when choosing North American newly published books to be summarized. GetAbstract will consider expanding its product range for the Canadian market by offering an additional length of summary and also have the summaries translated into French. The expansion to Edmonton was coming from a personal trigger. However, the report conveys that both, the PEST and competition analysis conducted by Porter’s Five Forces, support the expansion to the chosen location –Edmonton. The analysis was done by a thorough market survey, taking all possible factors into consideration. Concluding the findings, even though there is a large geographic distance between the two countries, psychic distance is rather small. Therefore, getAbstract can rely on dealing with a similar culture and can remain with the same values and norms. These facts make getAbstract confident that Edmonton will demand the summaries and that the market can gradually be further expanded.

 

............................................................................................................................................................................................................................................... 9   Substitutes........................ 12   6   International Customer Relationship ..........................................................................................................................................................................................13   7   Marketing Mix .........................................5   Psychic  Distance............................................................................ 10   New  entrants................................................... 3   2...............................................................................................................................................................................................................................................................1   About  getAbstract .....................  Alberta...........................15   Promotion ................................... 8   Porter’s  Five  Forces ..........................................................................................................................1   Screen  Country ................................................4   Sociocultural  Environment......................................................................................................................................................................................................................................................................................................................................................18   11   Appendix................................... 6   General  market  risks ..................................................................................................................................................................................................................................................  Canada ...................................................................................................................................................2   7............................................................................................................................................................................................................................................................................................. 3   2....1   7..................................................................... 10   5   Market Entry Strategy ...............................................................................2   Economic  Environment .................................................................................................................................14   Price ............................................................................................................. 8   Market  Competitors ........... 1   1.................................................... 5   3   Initiation of Internationalization..................................................................................................................................................................................................................................................2   Reasoning  for  Edmonton............................... 12   Transaction-­‐specific  factors .................. 4   2......................15   8   Marketing Budget....17   10   Reference List ....................................................................................4   Product ............................................. 1   2   Market Environment / Cultural Analysis ..................................................................................................................................................................... 6   3............................................... 6   3..................................................................... 9   Buyers .................................................. 5   2..............................................................................11   Internal  Factors........................... 12   Desired  Mode  Characteristics....... 1   1...................................................................................................................................13   7...................14   Place ............................................... 1   Preliminary  screening............................................................. 1   2.......................................................................3   Political  /  Legal  Environment............................................................................................ 7   Political  risks.......................................................................................................................................... 1   Relative  Competitive  Strength .........................................................................................................................................1   Initiation  Motives........................... 8   Suppliers ..................... 11   External  Factors.................................................................................................................................. 6   Commercial  risks...................2   Internationalization  barriers/risks .......18     ............................................ 7   4   International Competitiveness.........................................................16   9   Conclusion..................Table of Contents 1   Introduction ...........................................................................................................................................................................................................3   7.........................

Visscher had a particular interest in getAbstract and often asked Dubinsky about the company. Founded in 1999. The summaries are available online in several different formats. 2 Market Environment / Cultural Analysis 2.d.1 Screen Country Preliminary screening Edmonton offers getAbstract a large market share with more than 1 million people and a growth rate faster than the rest of Canada (Labour Force. among having reputable customers like Microsoft and PricewaterhouseCoopers.1 About getAbstract Caught in the constant hustle and bustle of life. She often expressed how much she would value having access to summaries of these books because she too found little or no time to read. 1. some summaries are free and some require a subscription. many business people find it difficult to find time to cook. n. Visscher saw the potential success of getAbstract in Canada’s market. Dubinsky and Visscher were now business partners. Many of the world’s largest firms provide their employees with full access to the getAbstract library.). This is what prompted Dubinsky to hire Visscher as the International Marketing Director where she could assist in the internationalization of getAbstract to the Canadian Market. After some discussion they decided that although there is demand for these summaries all across the Canadian market it is simpler to begin marketing it to a more specific market like the City of Edmonton in the province of Alberta. and read. The Lucerne based SME employs 120 writers and has more than 400 publishing partners.2 Reasoning for Edmonton.1 Introduction 1. the Marketing Director for getAbstract and part-time student. getAbstract writes business book summaries for those of us who are too busy to simply read a book. GetAbstract also has the potential to gain an even larger market through our plans of expanding to the rest of Canada within the first   1 . met Brandy Visscher a Canadian student who was on exchange in Switzerland. Dubinsky and Visscher formed a great friendship. Canada In early 2010 Amber Dubinsky. Alberta. GetAbstract has surely identified one of these needs. from PDFs to audios. clean.

great trade relations (2. With a growing labour force.). Market Attractiveness Model 1 Very Poor Market Size Market Growth Buying Structure Prices Buying Power Market Access Competitive Intensity Political/ Economic Risks Total Evaluation of market attractiveness for getAbstract (Hollensen. same prices can be set also in Edmonton (7. getAbstract should be able to obtain a large market share in Edmonton and expand quickly throughout Canada. but still attainable (2.2) Market Access: The summaries are online and therefore from everywhere accessible (7. but room for expansion to the rest of Canada (2.1) Buying Structure: Easy to access.year of marketing in this foreign market. as well as.2) Buying Power: Less than in Swiss market. and many businesses. since an online subscription is all it takes (7. 3 5 4 4 5 Poor 2 3 Medium 4 Good Very Good 5 % Weight Factor 25 5 5 25 5 10 10 15 5 5 Result (grading X weight) 75 125 25 40 40 75 15 25 3 100 420   2 . potential expansion to the rest of Canada (2. p. many SME’s and many large corporations’ headquarters. n. many educated people.3) The numbers in brackets refer to the relevant chapter of the report.1) Political/Economic Risks: Stable economy. Edmonton has one of the strongest labour markets in Canada which increased by 12.d. Edmonton is home to 10 post secondary schools. 172) Market Size: Mid-sized market in Edmonton.1) Prices: Since the markets are rather similar.1) Market Growth: Edmonton a booming city.3 % from 2003-2008 (Labour Force. 2008.1) Competitive Intensity: There is one quite large competitor located in the United States (4.

172) Product fit to Market Demands: The market survey conveys a large market demand. Hollensen (2008. knowledge seekers. These questionnaires are effective when evaluating a foreign country’s market attractiveness and competitive strength. 126) says with regards to tertiary economic activities that as average family income increases the percentage spent on services activities will increase. Marketing: Our marketing plan should raise big awareness and demand in Edmonton. 2. British Columbia. Statistics Canada   3 .2 Economic Environment According to The CIA Factbook (2010) Canada is an affluent. After analysing each of these models and all of the factors within them. Communication: Good communication can be made feasible through virtual communication. More specifically Western Canada has a growing economy. Canada’s strong economic environment makes Canada a desirable market for getAbstract to enter.Relative Competitive Strength 1 Very Poor Products fit to Market Demands Prices and Conditions Marketing Communication Obtainable Market Share Financial Results Total 3 5 5 2 Poor 3 Medium 4 Good 4 4 5 Very Good 5 % Weight Factor 25 25 15 10 20 5 100 Result (grading X weight) 100 100 75 30 100 25 430 Evaluation of competitive strength for getAbstract (Hollensen. Financial Results: We expect to acquire many new customers that will reflect in revenues. 2008). Obtainable Market Share: Many businesses and schools. Prices and Conditions: There is still potential for other offers to attract more customers. 2008. The two most western provinces. Market Presence: We will communicate a clear and simple message to attract customers. and Alberta are the economic leaders in the country (Western Canada’s Economic Environment. p. p. we can be positive that Edmonton is a good choice for getAbstract’s market expansion. high-tech industrial society with a market-oriented economic system and high living standards which is similar to Switzerland’s standards.

strengthened the framework for business practises • Mutual Recognition Agreement (MRA) (1999)-covers pharmaceuticals. Factbook. 129). Canada has a stable exchange rate along with Switzerland. p.200 in 2009 and ranked 17th (CIA. Although there are methods to insure against potentially volatile exchange rates these methods are often too expensive for SME’s like getAbstract. Other trade and business practice arrangements include: • • • Arrangement on Trade and Economic Cooperation (1997) Agreement on Double Taxation (1998) Memorandum of Understanding on Good Manufacturing Practices (1998). Based on our findings regarding GDP per capita it appears that Switzerland is slightly more industrialized and Swiss people likely have higher incomes than their Canadian counterparts. providing easier access to conformity assessment procedures (SECO. GetAbstract may need to consider offering the subscriptions at a slightly lower cost because of this income gap.3 Political / Legal Environment After conducting market research we have found that getAbstract should not face many political or legal issues when entering the Canadian Market. electromagnetic compatibility. Switzerland’s GDP Per Capita was an estimated $41. 2010). This is also a favourable factor when getAbstract is doing business in Canada because a stable exchange rate improves accuracy of financial planning. electronic products and sports boats. Canada and Switzerland have been bilaterally conducting business together since 1855.   4 . This is another positive for getAbstract because people will likely be more eager to educate themselves and willing to subscribe for the book summary service. 2010). GDP per capita is a measure of a nation’s income per person and is based on the degree of industrialization within the country (Hollensen.200 in 2009 which ranks 26th in comparison to the rest of the world (CIA Factbook. 2008) Economic ties were significantly strengthened again in 2008 when Canada and Switzerland signed a Free Trade Agreement.” (State Secretariat of Economic Affairs (SECO). p.(2010) found that average family income is on the rise of approximately $1000 each year from 2004-2008. Trade and Establishment Agreement was concluded in 1855. 2008. Alberta will increase based on Canada’s growing economy. 2008. It appears that the growth of getAbstract in Edmonton. medical devices. information technology and transmitter. “The first Bilateral Friendship. The Canadian GDP Per Capita was an estimated $38. 12). 2.

This translates to a small psychic distance. This will help the summaries reach the majority of the Canadian population and more specifically Edmonton. the psychic distance is actually quite small.5 Psychic Distance Although the geographic distance between Canada and Switzerland is large.) the summaries are already available in English. 2010).) 2. Canadians will likely buy the summaries for their own personal desire for knowledge as opposed to attaining this knowledge to compete with their colleagues. as a result of Switzerland’s more masculine culture. 2010). The other main difference between the two cultures is within individualism.   5 . Canada is slightly more individualistic than Switzerland.4 that culturally Canada and Switzerland are fairly similar.8% of the population (CIA Factbook. There is a small percentage of French speaking Canadians as outlined in section 2. One can interpret that the Canadian culture is less competitive driven. Because there are fewer differences in gender roles getAbstract may find that Canada’s market might include more women than those in Switzerland.2. the political and legal environment appears to be quite supportive of business between the two countries. more intuitive and there are fewer differences in roles between men and women.d. This will likely mean that getAbstract will attract more personal subscriptions than corporate because they are less collectivist and are in business more for their own benefit. There is a small language barrier between the two countries. Switzerland is a slightly more masculine culture. In Canada the most commonly spoken language is English which accounts for 58. Therefore. n. Lastly. Hofstede’s Cultural Dimensions (1976-2009. section comparison. Because “English dominates the worlds of business. We also recognize in section 2. In Switzerland the most commonly spoken language is German –spoken by 63. Having an employee who is familiar with both countries will help with identifying any potential issues. however this is more commonly spoken in Eastern Canada. commerce and finance” (English Language.4 Sociocultural Environment As you can see in figure 1 Canada and Switzerland’s cultural dimensions according to Hofstede are quite similar.2.7% of the population (CIA Factbook.

but she also speaks fluent English. p.1 Initiation Motives GetAbstract follows a proactive initiation motive when deciding to enter the Canadian market. The decision to go abroad was based on an internal trigger or managerial urge. Offering the summaries in French would also expand getAbstract to the French market in Switzerland.   6 . which will make the further information research much easier for getAbstract to cope with. having Visscher work with getAbstract in the expansion to Canada will greatly reduce the severity of this factor.2 Internationalization barriers/risks General market risks Market distance is a general market risk that getAbstract will face. Therefore. Because Canada is such a large country they have decided to market the product initially in Edmonton. Not only is she knowledgeable of the Canadian market. GetAbstract has a large advantage to gaining this information and knowledge from Visscher. Hollensen (2008. This problem can be alleviated through the use of virtual meetings and online communication. There will be a small language barrier because of the considerable percentage 22. She will be able to provide information and knowledge with regards to the Canadian market and discuss and identify possible problems. which is approximately 10 hours of flying time. 2010) of the Canadian population who speaks French. 3.7% (CIA Factbook. Dubinsky saw that getAbstract could offer a unique product to the Canadian market and realized that Canadians would value this product. This realization caused the internal trigger of the company to hire Visscher as their International Marketing Director. It would be relatively easy for getAbstract to hire a French speaker who can translate the most popular summaries to begin with. because the summaries are online there are no transportation costs that will incur. The only problem with market distance is meetings between the Canadian counterpart and the Swiss head office. One way to overcome this barrier is for getAbstract to offer the book summaries in French. Luckily. Dubinsky saw the potential growth and success of getAbstract in expanding to Canadian after meeting Visscher.5 there will be some cultural differences during the expansion to Canada. 45) states that information and knowledge are the most critical factors in the initiation of internationalization process in the SME.3 Initiation of Internationalization 3. Canada and Switzerland are about 8000 km away from each other. As identified in section 2. Alberta.

Below is a SWOT Analysis that getAbstract has conducted. Although there is no way to avoid this. but not Canada Opportunities Build the database and offer more summaries Offer summaries in more languages Expand product range and other features (see 7. The franc and Canadian dollar are quite close to par with each other. p. for example on November 21. Political risks As mentioned in section 2. Looking at historical trends also the volatility is quite low between both currencies.offering over 5000 summaries Good and many contacts to publishers worldwide Weaknesses No French speaking employees Time lag for summary approval from publishes Head office located in Switzerland & U. SWOT Analysis Strengths Knowledgeable employees in both countries Multiple formats: PDF. and supports local events promoting Swiss products and services (SECO. 2008. information on trade shows. According to SECO (2008. Smartphone. the weaknesses and threats to look out for.com. It also shows the strengths. China Threats Publishing companies denying the summary approval Idea can be replicated quite easily Competition: Summary.e. The embassy will provide current information on the Canadian market.Commercial risks Fluctuations in the exchange rate between the Swiss franc and Canadian dollar is a commercial risk that getAbstract will face.16). the risk is rather low because the Swiss franc and Canadian dollar are quite stable currencies.16) the Canadian embassy provides a wide range of advice and assistance to Swiss companies who are or who are planning to export to Canada.1) Can easily be expanded to other geographic markets i. Kindle and audio World’s largest library . and more importantly. This SWOT analysis will help with the further development of getAbstract’s expansion to Canada. 2008 p.3 Canada and Switzerland have a Free Trade Agreement which will help ease any political risks.a book summary website (Chapter 4) Increasing number of websites that summarize books with no charge 7   . 6).S. 2010 the exchange rate was $1. the political risk for getAbstract will likely be quite seamless based on the assistance programs and cooperation from the Canadian Embassy. The SWOT analysis is effective in finding the right match between the internal and external analysis (Hollensen. Therefore. Those will assist getAbstract to improve and spruce up its business for entering the new market.02 per 1 Sfr. p.

Another difference worth mentioning is that Soundview allows the purchase of single summaries. whereas Soundview offers merely 560 summaries. To assure that Edmonton is a beneficial location to expand to. We can assume that in terms of firm size. whereas getAbstract also offers a number 8-page summaries of classic literature categories in German language such as opera. philosophy. cost structure and strategy the companies have parallels. According to Porter the state of competition depends upon five basic competitive forces (Hollensen. based in the United States. religion. The differences in terms of the actual summaries are in length and design. 78-81). The summaries of Soundview contain 8 pages. we have analyzed the Porter’s five forces. These additional three languages cover an enormous geographical area. rather than business. Russian. meaning their customer segment is spread by the manifold. which will now be discussed. Soundview offers a similar range of business books and identical downloadable formats.4 International Competitiveness Porter’s Five Forces There has already been light shed on the advantages and rationales why getAbstract should expand to Edmonton. history and politics. science and many more. the number of summaries and the languages offered. Furthermore. This is not possible with getAbstract. where we again think. whereas getAbstract business summaries contain 5 pages. Spanish and Chinese. where it is required to have a subscription. It is “Soundview – Executive Book Summaries” (www. only lies on business related topics. p. that Soundview’s design is too loud and chaotic. The getAbstract website is designed in a more user friendly and simple way. The Soundview website is somewhat unstructured and difficult in terms of orientation.com). This feature can be seen as an advantage for Soundview and may be considered by getAbstract to replicate.   8 . English. Market Competitors After a thorough Internet research we can state that there is one competitor in the market to be taken seriously and that should be monitored closely. Further advantages of getAbstract we see in the design of the website. it is noteworthy that getAbstract offers summaries in German. getAbstract is the biggest summary library worldwide –with over 5’000 books summarized. The length is a matter of taste. Their focus however. Also. one of the most useful frameworks for evaluating the competitive structure. also in regard to competition.summary. The mentioned reasons however were more of internal and personal nature. 2008.

However. Usually getAbstract receives a PDF or the hardcopy of a newly published book as soon as the publisher gives the approval. when he is interested to gain more in-depth knowledge in the field concerned. The customers do not only buy the product itself. These services are all included in one subscription fee. A further advantage getAbstract has is that prices cannot be clearly determined and therefore allow for higher margins. which decreases their bargaining power. which is not determined on the amount of usage. 9   . An issue to take into consideration when looking at pricing is to offer the possibility to purchase single summaries. This could potentially increase revenue but would have to be further analyzed by sound market research. A summary can raise awareness and give the user an incentive to purchase the book. It is comprehensible that the publisher first wants to promote the purchase of hardcopies. which in the most cases takes about one month after the launching date. the buyers are geographically widely spread.Suppliers For getAbstract the suppliers can be seen as the publishing houses of books in the market. GetAbstract offers a rather differentiated product that cannot be found in that form anywhere else. There have been special copyright agreements formed and generally speaking. we can state that the suppliers do not represent a threatening force to getAbstract due to the reasons mentioned and also due to the good relationship getAbstract maintains with all their publishers. it is in the author’s interest to have a summary written on his book. getAbstract is in negotiations with a few of its most important publishers to reduce this time span for the approval. as this yields the highest revenue. getAbstract benefits from a good position for the following reasons. As the product is sold online only. Also. but can also have the opposite effect. Buyers The buyers of getAbstract products can be distinguished between two groups –private and corporate buyers. as this would be seen as a major advantage. and only a little while later allows online summaries. but additional customer services such as audio format possibilities and good reliable quality summaries. Concluding the power of suppliers. As already mentioned. customers will more likely be willing to simply pay the fixed subscription fee. without having to pay the subscription fee. In regard to the buyer’s purchasing power. prices for corporations are not preset and vary regarding number of employees. For the reason of not being able to clearly measure the outcome and individual use. However. summaries can put book sales forward. getAbstract profits from a privileged position in terms of time.

These barriers do fortunately not apply to the online summary business field. Most recent published books on business cannot be found on Wikipedia. However. as for example Wikipedia does. we are talking about financially rather insignificant investments.   10 . as competitors. Therefore. New entrants Profitable markets that yield high returns will attract new firms. Translating books into a foreign language. However. which eventually will decrease profitability for all firms in the industry. (as also spoken in Canada) would bear the risk that these efforts and costs invested would not return any gains. If business in that field is highly profitable it attracts further competing companies to the market. one is required to search for every book. The reason for only coming across one other competitor is because barriers to entry exist in different forms. such as Soundview. This could possibly apply to the book summary market that getAbstract is in. This means that getAbstract could maintain and further establish the entry barriers by differentiating the product range. such as French for instance.Substitutes Having substituting companies in the market could bring a reduction in attractiveness and profitability due to price level constraints. remain the largest summary providers. The number of new entrants depends largely on the extent to which barriers to entry exist. style and quality. GetAbstract cannot be seen as the incumbent player of the market. This leads to new entrants. However. Again. as business is solely conducted online. we were able to detect an advantage getAbstract has. the substitution would cause switching costs for customers. and advance customer relations in order to increase customer loyalty. the hurdles of expanding to other countries are mainly of legal nature and language differences. most of them free of charge. meaning that they would have to pay double for a similar product. that summarize selected books. already have entered the market. when comparing to investments of non-online companies as setting up new plants for example. this only holds for well-known books and usually not books in the field of business. we had troubles to come up with any. However. the according website. As it is required to have a minimum subscription for a half of a year. and the summaries vary greatly in length. One potential threat to look out for is the geographical factor. There are websites that summarize and also interpret renowned books. There are other websites. looking for possibilities to substitute book summaries.

where both the headquarters are located. Nevertheless.Having thoroughly analyzed the position of getAbstract in the industry. 201). China. There are several factors to take into account when deciding which mode to chose. there are different degrees of control. Currently getAbstract has more than 400 publishing partners and employs 120 writers. The Swiss Co-founder and Chairman Rolf Dobelli has worked in several countries such as the United States. Hollensen (p. the company size factor would recommend an intermediate entry mode. Because getAbstract is considered to be a medium enterprise. product expansion. Australia and Switzerland and can influence the company’s culture with his experience. 5 Market Entry Strategy Looking at the assortment of entry modes when entering a new market.206) mentions different aspects affecting the foreign market entry mode decision. the five forces have highlighted the critical strengths and weaknesses. risk. are not perishable. For getAbstract some factors are irrelevant. especially in Switzerland and the United States. Internal Factors GetAbstract’s firm size can be seen as quite large with many available resources around the world. after having detected these fields. The employees also originate from different parts of the world and speak many languages. However. we can also note that getAbstract has a good market position due to the already existing multinational clients. Another internal factor to be taken into account is the product itself. and flexibility associated with each of the entry modes (Hollensen.   11 . as the product is available online and does not require specific production. International experience is given in many ways. many of them having their headquarters in the United States. p. Certain areas such as branding. This international experience reduces the cost and uncertainty of serving a foreign market. The relevant factors for getAbstract to choose the most appropriate entry mode will be discussed. and therefore. internationalization might be the most suitable mode. customer relationships and alternative pricing have shown that there is still unexploited potential. Book summaries are not complex in their creation because they can be written from different places. These advantageous factors disclose that there is additional potential profit to be made. getAbstract must put all efforts and energy to continue pursuing a gainful position in the market of book summaries and monitoring the market continuously in order to counteract to any new upcoming threats.

there is no danger of encountering difficulties in terms of tacit knowledge. However. no matter where they were written. as the management can intervene anytime. this reflects a high amount of flexibility. when assessing the Canadian market environment. The summaries are being controlled in terms of quality. as for instance the choice of books being summarized in foreign markets. The factors will not be elaborated on again. Taking great care when assessing and recruiting skilled writers will mitigate the eventuality of insufficient quality. Transaction-specific factors The last factor that affects the foreign market entry mode decision is the transaction cost analysis. Since expanding to Edmonton will not cause any financial distress concerning new infrastructure. To be more precise getAbstract should position Visscher as a resident sales representative in Edmonton. All of the factors mentioned go hand in hand with the hierarchical mode requirements. Desired Mode Characteristics The preferential degree of risk averseness is difficult to determine. the internet can overcome nearly all information asymmetries. getAbstract has an advantage by selling the products solely online.and only allow limited differentiation possibilities. Even though getAbstract has to remain a certain standard and consistency. the flexibility in terms of equity is ensured as well. Considering all of the mentioned factors we believe that a hierarchical mode would be most suitable for getAbstract’s intention to expand to Edmonton. No costly construction or logistics are required. However. are already currently being sent to either the headquarters in Switzerland or the United States. but we can state that the external factors advocate an entry mode that is mostly internalized. allowing high control but contrariwise high risk and low flexibility. There are still some factors where management will have less control. The actual performance of the sales function is transferred to the foreign market. style and congruence. Visscher would then be responsible to observe the book market in North   12 . The quality control is a manageable task. Furthermore. This would display a great customer commitment because she would be the sales manager located in Edmonton to work on customer acquisition and loyalty. External Factors The external factors have been discussed in detail in chapter 2. All of the composed summarizes. which substantially reduces the risk of losing money when expanding.

there are valuable books that have not been summarized yet. attract. However. is a threat getAbstract has to be aware of. Customers weekly receive a summary by email. place and promotion. 7 Marketing Mix In order to meet the consumers’ needs effectively getAbstract must consider the marketing mix. Interaction with the customer will strongly support a continuous customer relationship.America and inform the headquarters about new trends. Customers can rate the choice of summary and share their opinion. either located in Switzerland or Canada. Each element can be modified to establish an overall brand image. The writers. price.   13 . Most of getAbstract’s customers are knowledgeable and erudite and might know of a book that is still missing in getAbstract’s library. secondly to nurture and retain the existing customers and finally. Having Visscher present in Edmonton provides getAbstract with a high degree of control and a rather low degree of risk. will summarize the book and after having been checked in terms of quality. 6 International Customer Relationship The overall goal of building up solid customer relations is first to find. and win over new clients. This way getAbstract remains in the minds of the customers. upload it onto getAbstract’s website. One possible approach is to give the customer the possibility to suggest books to getAbstract that in his view should be summarized. The goal is to have the customers bound to the company and remaining a customer over time. GetAbstract’s library comprises over 5’000 summaries. this is a passive. High flexibility is ensured due to the possible intervention of management. Every “P” will now be elaborated on. For getAbstract solid and stable customer relationships are crucial. It is the combination of product. as there is no commitment of heavy resources in the foreign market required. nonetheless. to entice former clients back into the fold. where no element is more important than another. downloads all summarises he wishes to and then does not renew the subscription. This needs to be done while reducing marketing and client service costs. The possibility of a customer to subscribe for a half or an entire year. We seized to see potential when it comes to involving the customer. onesided way to build up a relationship. fitting their profile of interest and listing the newly published summaries. GetAbstract already takes actions in this regard.

A further possible product differentiation could be to offer an additional length of summary.7. opera and many more. The “Take-Aways” briefly summarize the key learning points in precise bullet points. The fields of interest can be chosen and getAbstract will email summaries of those categories. Customers have the possibility to give their own rating on the getAbstract website. The “Focus” section shows what categories the book belongs to. On the top there is the title of the book and an image of the cover with all of the relevant author. There are personal and corporation subscriptions available. Several summarizes are available as audio files. where catching quotes can be found on the left margin. Then. costing €299. That way an immense new segment could be targeted. However. We detected product potential in two areas when expanding to Edmonton. This allows downloading 30 business book summaries a year and a biweekly personalized summary based on the customers profile. publisher and book details (see appendix for an example). The most inexpensive is the “Silver Subscription” costing €89. states what will be taught in the article and reasons why the summary should be read. GetAbstract furthermore rates the book. Microsoft. Also. Corporate subscriptions allow for companies to provide their employees with getAbstract summaries. the book is summarized in the “Abstract” section.2 Price It is only possible to purchase a summary with a subscription. Corporate solutions are very popular among multinationals such as Boeing. We think that the classical literature library should be expanded to world literature and translated into English. The “Gold Subscription” includes a one year unlimited access to the entire book library and a weekly personalized summary based on the profile. getAbstract emails a weekly customized summary to its customers. 7. the classical library so far is only available in the German language. The form of the summary is standardized. GetAbstract offers supplementary services to the core product.1 Product The core products sold by getAbstract are book summaries. Most of the summaries concern a variety of business topics. This would allow readers to gather some more in-depth knowledge about the book and topic. The subscription range varies from 6 to 12 months and from a limited amount of accessible summaries to unlimited. The next part “Relevance”. or share their views and opinions on the blog. GetAbstract also has a wide range of other categories such as religion. such as a 15-page summary. ecology. UBS or 14   . meaning that they all contain five A4 pages and follow the same layout and structure.

This allows initial personal contact with Visscher. if possible free of charge. also in North America. As the product is online and therefore already available. 7. There are no intermediates or agents that require a slice of the profit. As soon as getAbstract receives the rights to summarize a newly published book. to increase attractiveness might help the launch in another country. which is of importance when trying to gain customer’s interest and trust. There are a number of business fairs in Edmonton where we are planning to set up a stand. with one summary costing $8. A   15 . Another advantage is the time factor. There are several ways getAbstract wants to tackle it.4 Promotion When expanding to Edmonton. However. Visscher furthermore will meet with managers of large firms in Edmonton to explain the costs and benefits of the book summaries. There will be an e-mailing to all of the SMEs and multinationals in Canada. promotion will be one of the core activities of getAbstract. the product already is available worldwide. Regarding the expansion to Canada there will be a focus on Edmonton. One difference worth mentioning is the single summary purchase possibility that Soundview offers.3 Place Online distribution has a remarkable advantage over traditional production. as for the factors mentioned.Novartis to only mention a few.50. promotion will have to kick in. with a special emphasis on Edmonton informing them about getAbstract and its concept. however. also because Soundview. Even though a market survey was conducted with the focus on the willingness to pay. The price for getAbstract access differs depending on the company size and usage and is negotiated on according to these factors. getAbstract has to be aware of possible required price adjustments depending on the Canadian customers actual willingness to pay. We will make every endeavour to be written about in business magazines. With regard to the price setting in Edmonton we believe that the prices can be similar or the same in the long term as they are in Switzerland. it is difficult to fully rely on that data. the US competitor. provides this possibility. the summary will be worldwide and online without any time lags. 7. Looking at the competitor’s prices of Soundview they are quite similar in price and product. Furthermore. Another important point is our pre-existing publisher network. having a reduced offering price when expanding. presenting getAbstract summaries to attract many new customers. Therefore. we believe that offering individual summaries might be an option to take into consideration.

we are hopeful that getAbstract will market itself through word of mouth marketing after it has been used by some people and corporations and is the most cost efficient method there is. we believe that getAbstract is prepared to expand to Edmonton even tough there is potential for improvement and expansion in all the four Ps. After researching the costs and success of pamphlet mail outs we have decided not to use this marketing technique. Lastly. The Edmonton Journal. To reach large corporations getAbstract’s initial idea of marketing to them was through pamphlet mail outs. This has been done in Switzerland to the Neue Zürcher Zeitung (NZZ) with immense success (see appendix for an example). especially with Visscher being on location. which is read by most business people either online or in print. Essential is promotion. The Edmonton Journal. Concluding the outcomes of the marketing mix. Another promotion tool we want to apply in Edmonton is to enclose weekly a getAbstract summary in physical booklet form to the business newspaper.50 per 1000 impressions online.few renowned magazines have already been contacted and getAbstract seems to fall on sympathetic ears. GetAbstract will advertise in the local newspaper. Through this research it appears that most people find mail out pamphlets annoying and throw them away before they actually look at them. the required means to reach our goals are given.   16 . getAbstract will use publicity techniques as well as. However. To run the ad costs $37. The impact of word of mouth can be immense and it is getAbstract’s goal to profit from it. Because getAbstract is an online service and product they have chosen not to market through billboards and mail outs because it goes against their online attitude. 8 Marketing Budget GetAbstract has prepared a brief marketing budget of our book summaries. viral marketing methods to achieve the desired behavioural response. as getAbstract needs to raise awareness in Edmonton and Canada as a whole in order to acquire new customers. To promote and manage word of mouth communications. After more consideration we realized that it would be more cost effective and personal to have Visscher meet with managers of large firms in Edmonton to explain the costs and benefits of the book summaries. We also feel that when someone sees a billboard they will forget the website by the time they are on computer to access the website.

The fact that the Canadian Embassy is so helpful in providing Swiss SME’s with information and encouraging their entry into Canada will also ease the pressures of entering this foreign market. We also found through our research that the Canadian market entry will be relatively seamless because of the Free Trade Agreement between Canada and Switzerland. in Edmonton and then gradually in whole of Canada. For the moment. market research is being conducted in a regular manner. The chosen entry mode should support our objectives by making the first steps as smoothly as possible. One of getAbstract’s priorities is to promote its internationalization and raise awareness by different marketing techniques. there are not too many threats on the horizon and it seems that getAbstract will be able to prosper and reap the gains of its comparative advantages it has. We would also like to mention at this point that we appreciate the benefits that have arisen through the partnership between Dubinsky and Visscher. however. We will stay in close contact and maintain a trusting relationship. will be highly demanded –by private and corporate buyers. quality controls are being done. After we researched the potential risks and opportunities of this new market we began a business analysis on the competitiveness of that market. GetAbstract is aware of this necessity and is doing its duty with various control measures. The sales will be assessed thoroughly. budgets being controlled and surveys on customers’ satisfaction will be conducted as well.9 Conclusion The internal trigger for getAbstract to hire Visscher as our International Marketing Director has resulted in the desire to expand to the Canadian market.   17 . have to monitor the market at all times in a broad and systemic way. our market entry strategy as well as an analysis of the 4 P’s. especially when abroad. Companies doing business. After conducting market research with regards to purchasing power and demand we feel that getAbstract will be a huge success. We are convinced that our product together with the realized expansion ideas.

.admin. (2008). Essentials of Global Marketing. Retrieved November 3.ca/business/economic_demographic/demographic_profiles/labourforce. Harlow.ch/eda/en/home/reps/nameri/vcan/ref_bufor/buscan.geert-hofstede.eda.aspx State Secretariat of Economic Affairs (SECO).10 Reference List English Language.ca/eng/10263. 2010 from source http://www. English Language in Switzerland.com/hofstede_dimensions. 2010.Example of getAbstract summary .com/e/countries/uk/language. 11 Appendix . from source http://www.isyours. (n. 2010 from source http://www. EFTA-Canada Free Trade Agreement: Opportunities for Swiss Businesses.wd.Booklet of a NZZ-summary   18 . (1976 – 2009).). Prentice Hall Labour Force (n.edmonton. (2008). 2010 from source http://www.d. Labour Force. Retrieved November 3.).. 2010 from source http://www.gc. Retrieved November 14.html Hofstede. (2008).asp. Cultural Dimensions.php?culture1=87&culture2=14#compare Hollensen. England.html Federal Department of Foreign Affairs. (2001) Business and Trade Canada-Switzerland. S. Schweizerische Eidgenossenschaft Western Canada’s Economic Environment.d.Example of Soundview summary . comparing Canada with Switzerland.Power Point Presentation . G. Retrieved November 30. Retrieved November 12.

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