Differentation and Positioning

Differentation and positioning

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Ibrolly

Introduction

Our group decides to penetrate into Hawaii umbrella market. The reason why we choose this state is based on several reasons. First of all, Hawaii has raining days over one to third of year approximately 150days on average. Second, annually, 8 million visitors visit Hawaii despite of its population is over 1.4 millions. These a lot of customers have an enough purchasing power. In addition, we also target local people for considering Hawaii´s various weather condition; sunshine, rain, wind etc.

The objective of ours is to enter in a market approaching the costumer with a new concept. However, difficulties we found are understanding the Umbrella market and how to promote our product to Hawaii market.

Market Research

PEST Analysis

Political: USA has a strong democratic setup and effective rule of law, with elections that are considered fair and transparent. The country enjoys massive political and economic influence over both national and global policymaking, and is recognized as the leading superpower in the world.

In Hawaii there are a lot of inspections, because it is not allowed to introduce any type of fruit, flowers, and plants in general and even certain types of meats. The product that we offer in ibrolly instead, does not have any impediment for its distribution.

Economic: With a GDP of $68.900 of millions, Hawaii is the 38th economy in the United States. The economic system is well-developed and gathers its strength from its services and manufacturing industries. The strategic location of Hawaii in the middle of the Pacific basin makes it one of the largest business centers, being considered the bridge between East and West. Although its biggest industry is tourism, Hawaii attracts more and more businesses and industries every day, to become one of the most important centers for operations about multinational.

Social: Hawaii has some of the best universities in the western region (Hawaii Pacific University), which makes it one of the richest and most culturally diverse in the United States Students from all over the world consider it an appropriate place to study, taking advantage of the proximity to the countries of East Asia and all its advantages

Hawaii had a population of more than 1,42 million, of whom:

* 39.9% are Asians.

* 24.6% are European.

* 7.8% are Hispanic, predominantly Mexican and Puerto Rican

* 2.2% are of African origin.

Hawaii is the state with the highest percentage of Asians from all over the United States.

The five largest groups of Hawaiians by their ancestry are Japanese (16.7%), Filipino (14.1%), Chinese (6.2%), German (7.2%), Hawaiian natives (6, 6%), 7 and Portuguese (5.2%).

Technological: Innovation and technology are the strengths of the US economy. Since its inception, the country has been leading in terms of adapting and applying technology. Even though the country faces strong competition from rising economies, it is expected it will continue to retain a technology supremacy over its competitors.

Differentiation

ibrolly has several core competences compared to competitors in Hawaii market. In tangible assets, first of all, it has a high quality promotional product with reasonable price. Its’ product is made in detail. Customers can imprint their names and print logo on handle, which mean people can personalize their product with their name. Second, ibrolly’s products have a high durability which let customers use products for long. Due to these products reinforced frames and top quality fabric and fiberglass frames, ibrolly products are available for long term. In intangible asset, this aspect makes ibrolly’s product more special and special. ibrolly posses a highly customizable system. All ibrolly products are manufactured in its own factory, operated by Logotek Sport Promotional Merchandise. So, ibrolly can offer high degree on flexibility in terms of printings, colors and patterns to its customers. In addition, customer can also match the color they choose with handle and frames. Over 100 colors are prepared for and there is an online configurator for this matching system. However, the most spectacular thing which customer are allowed to do is they can design their personal artworks which are designed for printing on umbrella. In ibrolly official online webstie, customers can order special patterns and colors, which are in ibrolly opitons and ask ibrolly print whichever image customers like. In order to prove ibrolly has enough core competence to penetrate in Hawaii market, our group uses VRIO method. This methods is to evaluate company’s core competences by 4 criteria; V(is it valuable?), R (is it rare?), I (is it hard to imitate?), O(is there any organizational support?). In V, compared to competitors in Hawaii, ibrolly is stronger to last for long with same degree on product customization. In addition, compared to Blunt, in similar quality and durability, ibrolly shows more reasonable price than Blunt. Furthermore, the new product what we are selling in Hawaii contains these 2 features. This new product is perfect for various Hawaii weathers. This new released one not only lets customers block sunlight and protect them from rain and storm but also it can be used as a parasol which stands on the beach. So, ibrolly’s products are valuable. In R, ibrolly’s features allow products to have lot of amount of flexible patterns and design, which means it is able to customized by depending on customers’ preference. So, ibrolly is quite rare. In I, basically, all ibrolly’s products are customized based on consumers’ requests. So, it is hard for other competitors to imitate ibrolly’s products. In O, until now, ibrolly is operating its’ business in Germany, USA, Canada, Sweden and UK based on HQ in Cardiff. However, it is only selling its’ product through official online website only therefore, its’ retail channel is only online website. So, in Hawaii, there is no brand shop. ibrolly has just no options to start business but selling product through online. We cannot expect to get supports from organization. So, ibrolly is not organizational. Sum up, despite of the absence of own brand shop, our product quality and