Dishwasher Business Strategy - Essay Example

BUSINESS ANALYSIS of Product Information Dishwasher is a unique real-time product which is used for cleaning eating utensils and dishes. It is a mechanical device which has gained significance across the globe. Mechanical dishwasher helps in cleaning dishes through hot water spray. Detergent and water are circulated within the pump of the dishwasher. This product is not only used in private homes but also restaurants. International business strategy In China it is a difficult task to sell dishwashers.

This product holds importance in other countries but has no relevance in China. Only 1% of total Chinese households utilize dishwashers. Cultural norms influence consumer buying behaviour. For instance, Chinese culture does not associate kitchen utensils with status symbols. Dishwashers in this country are often viewed as problem creators, encompassing high costs. Hence the business strategy for this product needs to be inclined towards establishing a strong market position (Pringle, 2008).

There is a desirable percentage of individuals who belong to the middle-income group in China. Market penetration strategy shall be most suitable for this particular business idea. Low-cost products with superior quality are expected to acquire a wider base of customers. STP analysis Segmentation, targeting and positioning are essential components when it comes to trading in foreign markets. Dishwashers are not a necessity in China. Segmentation for this product will be based on demographic factors such as gender and income group.

The main target market for the product would be females, specifically housewives. They might understand the need for this product in terms of making their tasks simpler. Middle-income groups shall be targeted since product prices would be low in the initial stages of product launch. The positioning statement of the product will be – ‘an affordable cleaning power at the doorstep’. This form of positioning reveals that a product which is not a necessity can still prove to be beneficial for living beings (Wintzer, 2007).

The market positioning of dishwashers will be aligned with the concept of low cost and high quality. Global marketing strategy is highly dependent on the characteristics of customers. It can be stated that marketing mix elements revolve around customers’ needs in the context of foreign markets. The four P’s of marketing mixes such as product, price, place and promotion shall outline the marketing strategy of dishwashers in the Chinese market. The product is an innovative mechanical device which cleans dishes or utensils in the least time possible.

Branded dishwashers are sold at 2174 Yuan or $350 via Chinese e-commerce sites. Chinese customers are not able to afford such high ended products. A penetration pricing strategy shall be employed for this product. This strategy is based on high quality and low prices (Proctor, 2014). Product price would range between 700 to 1500 Yuan. These low-priced items shall be bought by Chinese customers who do not consider dishwashers to be a necessity. Distribution would be done through retail outlets and even company-owned stores.

This will increase the accessibility of customers for this innovative product. Test apartment has been designed as a promotional strategy where potential customers organize parties. These customers are accessed through social media (KnowThis LLC, 2015). Product demonstration is provided to all party guests. Discounts or product bundling can also be other promotional modes.