The paper "The Selection of the Market and Justification and Opportunity Statement" is a perfect example of a Marketing Case Study. Lempriere is a wool manufacturing company that has been in operation for more than 150 years. This report is an international market assessment of Japan and Russia; countries that the company has a strong drive to expand its international market. For this reason, the paper will discuss the company and product background; provide comprehensive comparative information with regard to country and product attractiveness by providing product market analysis, competitive analysis, as well as buyer analysis.
Lastly, the report will select a better market for the company to enter by providing justifications Company and Product background Lempriere is a family company that has been in operation as a global wool supplier since 1857. The company is a family business that is dedicated to excellence in wool, has a traditional dedication to service quality; accordingly, the company has an inherent drive to maintain its position as a global wool supplier (Lempriere Company, 2013). The company has sourced over 2 billion kilograms of fine sheep wool from highlands of Tasmania, Alps of New Zealand, Australia, Patagonia, and South Africa.
Currently, the company is in its 5th generation stewardship and is being headed by William Lempriere as the Managing Director. Lempriere is firmly placed to offer its wealth of experience, dedication to quality and business integrity; given the fact that the company has made smart business decisions for over 150 years, it strongly positioned to offer the latter (Lempriere Company, 2013). It has consistently maintained a focus on expanding its businesses in the global markets, striving to understand the needs of the consumer, and above working to ensure that, the company business delivers quality value coupled with high-end customer service.
The company implemented its global sourcing strategy in 2000, which resulted in the rapid development of businesses in Argentina, the USA, and South Africa. Currently, Lempriere is regarded as one of the largest global wool merchants and processors. Since 2010, the company’ s business has been on the decline: the demand for the Lempriere products across its main markets of China, Italy, and the USA. The sales volume for woven products fell for between 5 – 15% and knitted products decreased by between 30 – 40%.
The Merino wool business, which accounts for half of the company’ s volume and 75% of its value is currently weak on the market. Customer spending on fine suits has been on the decline since 2007, similarly, retailers are changing to cheap suits in order to remain in the market. Australia’ s fine wool exports fell by 25% in the 2011-2012 financial years (Lempriere Company, 2013). The company mainly deals in fine wool; the main customers for the company are textile mills and fashion houses across the world.
The company wool products were exceptionally performing well until 2011 when the company started registering a decline in the sales due to reduced demand across its major markets in Europe, Asia, the USA and South Africa (Lempriere Company, 2013). According to the company’ s Managing Director, the prices of fine wool will regain their profitable levels by early 2014 because the demand for the high-quality suit as well as knitwear is extremely low. With regard to this, the company has decided to diversify its business operations.
The company has a strong financial base together with vast international presence hence has the abilities and capabilities of expanding its marketing operations to more international markets.
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