International Marketing Endeavour of the Polish 3D Marketing Company Zortrax in Brazil Market - Business Plan Example

Abstract

The paper essentially discusses the international marketing endeavour of the Polish 3D marketing company Zortrax, in the market of Brazil.

INTRODUCTION

As per American Marketing Association, international marketing can be broadly defined as a multinational process that enables the planning and the execution of conception, promotion, prices strategy and the distribution of a particular range of products and services for the creation of various types of exchanges in order to satisfaction of the objectives of an individual and the organization. For example, in 2013, Rafal Tomasiak and Marcin Olchanowski founded a start-up, Zortrax a 100% Polish owned SME that manufactures various models of 3D printer and filaments for SMB market. The head office of this company is located at Olsztyn and it operates in 50 countries around the world. Some of the countries where its products are marketed are United States, China, South Korea, Japan, Germany, UK, Switzerland, and Netherland. While planning for the international marketing of the 3-D printers, Zortrax has several business objectives.

Business objectives of Zortrax

While registering its worldwide presence, Zortrax has some business objectives, for example, financial, sales and marketing, human resources and quality customer services.

Financial objectives

The first objective of any company while planning international marketing of the product is to set the clear financial objectives and emphasize its importance in the business strategy of the company. For example, the company needs to set a financial objective regarding the growth of the company earnings and the revenue. It is also necessary to attach a quantifiable number that can be measured and adjusted as per the situation. As Brazil is counted among the emerging and high-growth economies, the company can easily consider 20% of growth in the earning from this country as reasonable (Scott, 2016)

Sales and Marketing objectives

The second objective of the company is to measure their position against the industrial competitors in the market and includes brand recognition, product quality and the market share. As the products of Zortrax have won many national and international awards, they are well-known among the customers of the product. In Brazil, the company faces competition from two national start-ups, Ikea and Tok Stok and 8 other international brands in the market. So, the company can adopt different tactics in sales and marketing to achieve its objectives such as introducing a new range of product line or use pricing strategy to attract the customers (Scott, 2016).

However, with increasing awareness, the expected price decline and compatibility for the mass production, the market in Brazil can only witness a healthy growth at the fast rate in a near future. The big names that can be seen in the Brazilian market as far as3D printing is concerned are – Voxeljet Ag, Optomec, 3D Systems and Hoganas AB. These players have chosen to enter the Brazilian market with alliances and the partnerships with the nationalized technology firms (6wresearch.com, 2016).

Human resources

One of the most important factors in the international marketing planning is the incorporation of the competent employees. Before entering in the market, Zortrax will have to create a comprehensive personnel strategy in order to attract the best employees and train them as per the company culture. This factor is very important as it would decide the success or failure of the company in the Brazilian market (Scott, 2016).

Customer Service

With the increasing and the tough competition, the quality customer services often provide an edge to the company. The main objective of the company is to measure the customer satisfaction with the overall quality of the product and its cost. It can also be the reduction in the distribution and the delivery time of the product (Scott, 2016).

2. Which Country and Why?

Although, the company has presence in more than 50 countries around the world through resellers or premium resellers, presently they do not have any presence in Brazil. Located at South American Continent, Brazil is counted among the emerging economies such BRIC countries. The main market for the company includes various sectors of any economy includes robotics, architecture, industrial design, engineering, industrial automation and aviation among the others. Most often, this product is also used in various Research & Development for the creation of the prototypes of the various products. It is a fact, that Brazil is the fifth largest country by both population and by area (Philander and Phil., 2012). During last decades, the Brazilian Science and technology has acquired a significant reputation in research and development in the above field as the government has made higher education as an essential part of its policy. Companies like Ford and others have shifted their research facilities in the country (Country-data.com, 2016).

3. Which Market Segment(s)? STP

It is a fact, that the main market of the Zortrax’s product, 3D Printers is research and development departments in includes various sectors and includes robotics, architecture, industrial design, engineering, industrial automation and aviation among the others. Most of the research and development in the country in controlled under the aegis of government and the ministry of science and technology. Also, the other market segmentation includes the foreign companies who have established their factories and research facilities (Country-data.com, 2016). A separate market segmentation, where the product can be targeted is the Brazil’s SME and home users target market group.

In the cost of operations for doing business form the headquarters along with several factors like time differences, language barriers and cultural ignorance are becoming the barrier for the competitiveness of the company in the foreign market even though the exporting departments are successful, then it make sense to make offices in the foreign soil of Brazil. Many at times it is seen that the companies buy out the organizations that are already functioning in the foreign countries in order to take advantage of relationships, factories, storefronts and personnel that are already in place (Lee & Carter, 2011). These taken over offices maintain reporting relationship with headquarters established in the home market. In this scenario most of the marketing mix decisions are taken based on the situation in the individual countries as the staffs are most knowledgeable about the target market scenarios. The marketers here are considered as polycentric as they acknowledge that each market or country has different requirements.

4. What is to be achieved in the chosen market? Marketing Objectives

Presently, Zortrax does not have any presence in the country, so its main objective should be to measure their position against the industrial competitors in the market and includes brand recognition, product quality and the market share. As the company is facing tough competition with 10 brands in the market, it should use appropriate strategy to ensure its objective (Palmatier et al., 2006).

The main objectives that Zortrax wants to achieve through its international marketing plan in Brazil can be summarized as follows:

• To bring two countries closer in terms of trading and encourage large-scale free trading environment among two countries.
• To bring integration of the economies of these two countries and thus facilitating the globalization process of trade.
• To establish a healthy trade relations among the two nations and thus maintain a cordial relations between them for maintaining world peace.
• To facilitate and encourage cultural and social exchange among the countries.
• To provide assistance to Brazil, which is a developing country, in their economic and industrial growth and hence fill the gap between a developed and a developing country.

SWOT analysis of 3D printer in Brazilian Market

Strengths

As per the market research, 3D printer Brazilian Market has a lot of potential, that is growing to increase with the increase in spending on R&D in various industries such as military, aerospace, automotive, architecture, medical and industrial applications. Patrik Ohldin has mentioned that his company will focus primarily in the B2B segment currently. With its rich natural resources and with the abundance of technically educated workforce the market in Brazil is going to be solid and stable. Additionally, the MNCs all over the globe is seeing the country as potential spot for their R&D facility.

Weakness

Some key hurdles include low awareness about the technology and cost constraints.

Opportunities

It has been estimated by the market research that the 3D Printer Market in Brazil is poised to grow to $79 Million in 2021. The entry of Arcam AB in Brazil in present market condition can enable them to increase their sales as they will be in right place at the right time.

Threats

Zortrax can face fierce competition from the established players in the market such as Voxeljet Ag, Optomec, 3D Systems and Hoganas AB as these companies have made partnerships and alliances with the local technology firms

5. How will you bring the product to the customer? - Entry Mode Selection

For minimizing the investment costs and maximizing the profits, the company uses reseller model, that has well-served it in the past, however, with increasing competition as well as the potential of the market, the company has to change the marketing model for the future. As the company manufactures an advance technology such as LPD or Layer Plastic Deposition technology, while looking for new markets, the company has to take this factor into the consideration. Further, the company also needs to consider the prices strategy with many companies in the field. Due to this, the company can use various entry modes such as franchises agreement, contracts with established stores and so on as per its budget.

6. How will you compete and generate value? - Detailed International Marketing Mix

The company should use 4 Ps as the marketing mix for competing in the market. The proper assessment of the 4 Ps of marketing mix is highly important for Zortrax to set foot in Brazil with their 3D printers business (Gordon, 2012).

Price

Price is the first of the four P’s. It is important that the price of the product must be thoroughly examined all the way before it reaches to the end users. It is necessary for Zortrax to ensure that they consider everything that entails the price of the product in the Brazilian market. Zortrax also need to consider the variables like distribution, location of distribution, the retailer’s price mark-up, competitor pricing and payment plans before reaching the final price.

Product

Product is the second of the 4 P’s. Zortrax need to first understand the product that they want to sell. For example, “What solution will this product furnish to the end users?” or “What could be the features and benefits of this product that might be beneficial for the customers?” Zortrax must determine how their product is unique in the market and who would be their customers. One important thing that needs to be taken care is to ensure you address the features that aren’t available in this product. The reason for that is to be honest to their customer and let them know that no one product can do everything. This will narrow down the benefits and features as well as what the product is lacking.

Promotion

Promotion is the third P. This determines how Zortrax is going to promote the product in the Brazilian market? They need to determine whether they are going to use web promotions, traditional advertising, event marketing or any other tactic to promote their 3D printers to the market. They need to ensure that their marketing strategy is suitable for the product, price and customer of the market. An inadequate promotional initiative may lead to wastage time and revenue.

Placement

Placement is the fourth and the final P. It clarifies where the product will be sold in the market. This determines where Zortrax would like to place their product in the market for selling – whether the customers need to reach them through their website or they need to set up stalls in the important business areas to catch the attention of the customers. It is necessary to figure out if product is suited for the chosen placement. It is also wise decision to determine an exit strategy in case the product does not do up to the expectation and Zortrax need to find a new sales channel.

The Purpose of the Four P’s

The four P’s are a tried-and-tested formula to formulate an effective marketing plan in both international and domestic markets. The reason for the development of 4 P’s was to determine the “marketing mix” or a specific recipe that would have the capacity to satisfy the needs of both customers and the business (Manchanda, Rossi & Chintagunta, 2004). According to the Marketing Guru, Philip Kotler, this recipe has proven to be a successful tool if it is determined properly and utilized (Wood, 2008).

7. How much will it cost? Will we make or lose money in year one? - International Marketing Budget?

The costing will depend on the extent to which the company wants to penetrate the Brazilian market. As per 6Wresearch, by 2021, the 3D Printer Market is poised to grow and reach the figure of $79 Million. 3D printers are primarily used in military, aerospace, automotive, architecture, medical and industrial applications. It has been predicted by the experts that, over the next few years the growth in this industry would be at the fast rate due to increased spending on the research and development in various sections of the economy such as automotive, military and aerospace-related equipment (6wresearch.com, 2016).