Assessment Brief:
Working individually, and based on the High House case, you are required to produce a report to:
1. Recommend to High House one foreign market to enter at the same time as the UK launch.
2. Recommend and justify a whole channel market entry mode strategy for High House, into the market you have selected in Task 1 above.
3. Recommend a Marketing Communications Mix Plan (including Brand positioning ) for High House in support of the market entry mode strategy for the market you have selected
Assessment Criteria
In order to achieve a PASS, you must:
1 Apply appropriate and explicit models to inform your decision for each task
2 Take a detailed account of the relevant factors relating to the business environment
3 Use some academic text AND journal article references to underpin and justify your arguments
In order to achieve a DISTINCTION, you must fulfil the above, plus
1. Reference extensively, particularly from the most current texts/journals
2. Discuss and critically evaluate some alternative approaches to each of the 3 tasks.
High House
High House is a wallpaper venture established by X University with the intention of ‘spinning out', probably in the form of a partnership between the University and private investors. Building on specialist expertise within the Faculty of Arts, Media & Design in surface pattern design and the history of wallpaper, an initial range of wallpapers has been commissioned from current students and recent graduates.
Manufacturing will be outsourced to a local supplier and their price to High House for a ‘standard' paper is about £15 assuming reasonably large quantities permit set-up costs to be spread sufficiently. Small volumes of very specialist designs can also be printed digitally but costs will be very much higher, resulting in prices around £97 per roll.
The brand name was derived by reference to the Ancient High House in Stafford where the uncovering of many layers of wallpaper revealed heritage designs, some of which have inspired the current offerings. The name is also intended to suggest its probable positioning towards the high end of the market. Recent involvement in the Staffordshire Hoard has given the Ancient High House international recognition.
Catering for a clientele that seeks good design that is out of the ordinary but not outré, the wallpapers will be contemporary, individual and stylish and English. High House is not seeking a mass market, and its clients will expect to buy into something a little bit special. Customers in this group may typically buy from stores such as Conran, Fired Earth, Anthropology and Heals as well as specialist wallcovering shops and interior designers. They will not take advantage of transitory trends, though they do like to be stylish, and expect the quality and value for money associated with stores like John Lewis.
Some UK competitors have been identified as:
Zoffany: An established brand whose style is recognised by clients who are knowledgeable and prepared to pay good prices, but are not at top end of spending bracket Part of larger company. Prices from £50-97 per roll.
Graham & Brown: Large multi-national, outlets include B&Q, Peter Jones etc. Reliable and mainstream. Have not yet created a brand synonymous with style and quality. Designs tend towards following, not leading trends. Prices from £30 97 per roll.
Cole & Son: Established brand. Known for work in period design. Expensive.Very specific market - tends towards those seeking reproduction papers to suit period properties. Prices from £45-97
Harlequin: Established brand. Mainstream, popular,Target market is those seeking safe choices, and established styles. Prices from £30-97
Designers Guild: Established brand. Quirky, confident, dedicated users who will repeat-buy. Strong colours, trend-setting, market leader for innovative users.Tends towards bold and large designs for a young market. Prices from £45-173
Timorous Beasties: Small manufacturer serving niche market. Designs picked up in design magazines, exhibitions and other trend-setting media. Prices from £45-300
Lizzie Allen: Small manufacturer serving niche market. Starting to become established, particular followers.The wallpaper is only stocked offline at stories: Prices from £45-120.
Other UK competitors include Ella Doran, Mini Modern, Abigail Edwards and Little Greene.
At this stage of the startup process, High House has not yet finalised its marketing strategy. It clearly wants to be positioned ‘high end' but how high end ? Given that the brand is unknown and designs are produced by students, how will this impact on its ability to enter a competitive market with high prices. Initial thoughts are that High House retail price for a ‘standard' wallpaper is likely to be around £50 per roll. Online sales are expected to be made at this full list price but sales through interior designers, wholesalers and major Department stores will be around retail price list less 50% and sales direct to smaller retailers about list less 25%. Again, a channel strategy has not yet been finalised.
Other positioning concerns relate to the brand's Englishness. Are ‘English' styles and English COO (country of origin) for both design and manufacture an advantage or a disadvantage in different foreign markets ?
Traditional theory and wisdom would suggest that an SME first establish itself in its home market before seeking to enter foreign markets. However, High House was introduced to the public at the Tent London exhibition in September 2012 and interest was registered from a number of international buyers.
The next step for High House is to prepare a marketing plan to be used as the basis for attracting outside investors. Given the interest at Tent, this plan should incorporate proposed international opportunities and should assume that the private investors have some experience in international marketing and are able to fund some international expansion.