МІНІСТЕРСТВО ОСВІТИ І НАУКИ УКРАЇНИ

НАЦІОНАЛЬНИЙ ТЕХНІЧНИЙ УНІВЕРСИТЕТ

«ХАРКІВСЬКИЙ ПОЛІТЕХНІЧНИЙ ІНСТИТУТ»

Кафедра міжнародного бізнесу та фінансів

КУРСОВИЙ ПРОЕКТ
з дисципліни: «Міжнародний маркетинг»
на тему: «Foreign market entry strategy development»

Студентки групи БЕМ-717в.е:

Вікторії Мазуркевич

Керівник: проф. Данько Т.В.

Харків 2020
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CONTENT
INTRODUCTION ............................................................................................... 3

1 COMPANY AND MARKET ANALYSIS, MARKETING STRATEGY

OVERVIEW .................................................................................................................. 4

1.1 Company profile........................................................................................ 4

1.2 Market overview ....................................................................................... 5

1.3 Competition overview ............................................................................... 7

1.4 Relevant PEST Trends .............................................................................. 8

1.5 SWOT analysis of the company.............................................................. 10

2 COMPANY'S CURRENT USA MARKET ENTERING STRATEGY AUDIT

..................................................................................................................................... 13

2.1 Objectives for the country market ........................................................... 13

2.2 Market entry mode .................................................................................. 13

2.3 Target market segment ............................................................................ 13

2.4 Product positioning concept .................................................................... 13

2.5 Marketing mix outline ............................................................................. 14

3 RECOMMENDATIONS FOR THE STRATEGY OF ENTERING A NEW

MARKET .................................................................................................................... 15

3.1 General assessment of the current company USA market entry strategy
................................................................................................................................. 15

3.2 Development of strategic recommendation ............................................ 15

CONCLUSION ................................................................................................. 18

REFERENCES .................................................................................................. 20
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INTRODUCTION

The rapid development of society leads to the emergence of new trends in

international trade, the expansion of high-tech industries and the constant generation
of services that are best adapted to the needs of consumers. This necessitates the
constant search for enterprises not only the means to expand their activities, but also
the basic tools through which they can maintain their position in the market.
Such tools are just modern marketing strategies that play an important role in
developing an overall strategy for the operation of economic entities. Therefore, in
modern conditions it is extremely important to be able to choose and successfully
implement a marketing strategy that will most organically correspond to the overall
strategy of the enterprise. This issue is especially relevant for those entities whose
activities go beyond national markets, because it depends on strengthening their
competitiveness and success in winning the tastes of foreign consumers.
In its general sense, marketing strategies can be considered as a set of activities
carried out by enterprises in accordance with the overall strategy of their development
and marketing plans to position their products and services in target markets promote
them and service demand for a particular product. All these actions are carried out
based on a detailed and continuous study of market conditions in the direction of
increasing the competitiveness of the enterprise and expanding the horizons of its
activities. Moreover, some scientists, consider the marketing strategy not only as a
means of competition, but also an intangible asset that is taken into account during the
investment evaluation of the business entity
The purpose of this work is to find ways to improve the implementation of the
company's chosen marketing strategies based on the study of the essence and features
of their implementation in modern conditions, as well as analysis of problems faced by
enterprises in the application of marketing strategies.
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1 COMPANY AND MARKET ANALYSIS, MARKETING STRATEGY

OVERVIEW

1.1 Company profile

Rohrbeck Heger is strategic foresight and innovation consultants. Employees of
this company are creative, critical and analytical thinkers with the drive to prepare our
clients for the future. Their services aim to help customers be prepared for future trends,
events and developments in a way that lets them create value and shape their company's
future.
Company helps organizations to become future-prepared, to mitigate threats and
grasp emerging opportunities, and to create a prosperous future.
Rohrbeck Heger GmbH was founded in 2014 by René Rohrbeck and Tobias
Heger after years of continuous scientific and practical work in related domains to form
the leading strategic foresight and innovation management consultancy.
Mission of Rohrbeck Heger is to increase firms' chances of long-term success
and enhance firms' sustainable competitiveness.
They are willing to achieve that company supports clients in translating trends
into economic value. With their clients Rohrbeck Heger engages in identifying growth
opportunities outside their current business, refocus R&D spending towards high-
margin innovations, and install systems to trigger and fuel innovation initiatives.
Rohrbeck Heger will accompany customers all the way from creating strategic
plans to concept development, building, and leveraging strategic foresight capabilities
that enable you to succeed in the long run.
They develop services that allow to systematically improving the future fitness
of any organization. Rohrbeck Heger uses scientifically proven models to benchmark
your organization to industry standards and create tailor-made solutions for you. In
order to keep our clients at the competitive edge we consistently update our expertise
through close interaction with practitioners and academic partners.
They do not settle for anything less than excellence and have the self-honesty to
admit when they are wrong and the courage to change.
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Rohrbeck Heger is an international team and seek different perspectives and

views, backgrounds, and experiences and believe every person is of utmost importance
and value. For that, company sets great value in open-mindedness, tolerance, inclusion
and diversity. They will not tolerate racism or discrimination of any kind and will
always stand up against it.
Rohrbeck Heger places great value on what clients think and say. A constant
dialogue is essential, especially in any foresight-related activities. They appreciate
open communication and feedback and react swiftly if need be. The highest priority is
creating value for every client.
Team of Rohrbeck Heger will do what it takes to share knowledge with client
and offer the best solutions. In order to achieve that they strive to improve themselves
continuously and set ambitious goals which client will benefit from. Furthermore, they
will take responsibility from the beginning and show great engagement in everything
they do and will not let client down. [1]

1.2 Market overview

Management consultants provide advisory services to businesses, nonprofit
organizations and public-sector agencies to assist in organizational design, corporate
strategy, IT strategy, marketing and sales and logistics. Over the five years to 2020, the
Management Consulting industry experienced strong growth during the beginning of
the period as private business investment and government consumption and spending
precipitated higher demand for advisory services. However, during the latter half of the
period, sustained decline in overall corporate profits tapered industry demand as
companies under tighter budgets shifted away from consultation services. Overall,
industry revenue is anticipated to expand an annualized 1.7% to $247.6 billion, number
of businesses is 810900 and industry employment 1737096 people over the five years.
Such is the dominance of US consulting, that its status as the world’s largest
consulting market barely bears mentioning anymore. The global consulting market
grew by about 8% to $160 billion in 2019, but accounting for 44% of that, the US saw
another year of meteoric growth last year according to Source Global Research. While
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it is still undeniably America, first when it comes to consulting, however, the battle to
be the second largest consulting market is much more tightly contested.
Germany makes up 6.5% of the global consulting market, but has been badly
impacted by the country’s struggling economy more generally. Australia meanwhile
saw strong government investment buoy its consulting market to 3.8% of the global
market – ahead of France’s 3.5% and China’s 3.4%.
According to Source, the UK consulting market is growing at its slowest rate in
seven years. Despite its tepid estimated 4% growth in 2019, however, its £8.6 billion
of revenues still accounts for around 6.8% of the global market – leaving it out ahead
of close rivals Germany, as well as the more distant Australia and France.
Consultants have helped large numbers of companies to prepare for stagnant
growth, if not an outright recession being caused by the UK’s withdrawal from the EU,
and its subsequent redrawing of trade relations with its biggest economic partner. Now
though, as the Brexit, process nears its end and the global economy, as a whole seems
set for a major downturn, many clients are putting off new contracts.
At the same time, the economic impact of the Covid-19 outbreak means that
consulting demand across Europe may fall by 28%
Despite this fact, over the five years to 2019, the Management Consulting
industry has been successful since rising corporate profit and increasing business
expenditure have precipitated higher demand for advisory services. While the industry
also benefits from some countercyclical demand, positive macroeconomic conditions
and an improved business environment over the past five years have supported the
industry's expansion. In recent years, industry demand has been sourced from several
different sectors and services. Demand from financial institutions and professional
firms, such as private equity and asset management businesses, has improved during
the current period as operators in these industries contracted industry consultants to
provide advice on globalizing business operations and investing in new ventures
overseas. [2]
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1.3 Competition overview

Competitive analysis (or competitive research) is a field of strategic research that
specializes in the collection and review of information about rival firms. It's an essential
tactic for finding out what your competitors are doing and what kind of threat they
present to your company's success.
To start the competition analyzing we should first define 10 main
competitors on the market of international consulting services. Therefore, we define on
such factors as:
- Sell similar types of products
- Have a similar business premise
- Market to similar and slightly different audience demographics
- Are both new to the marketplace and more experienced?
Therefore, we found such top 10 companies: [3; 4]
1. Accenture
2. Bain & Company
3. Boston Consulting Group (BCG)
4. Booz Allen Hamilton
5. Deloitte
6. Ernst & Young
7. KPMG
8. McKinsey & Company
9. Mercer
10. PricewaterhouseCoopers
Briefly comparing Rohrbeck Heger and other 3 companies, we can form the table
below:
Table 1.1 - Comparative analysis of companies [5; 6; 7]
Bain & Company
Rohrbeck Heger Accenture centure Deloitte
Positioning consumer based prestige prestige prestige
Price point medium-high high high high
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international/domes
tic companies, international/domes international/domes international/domes
Target small- medium tic companies, tic companies, tic companies,
audience business global companies global companies global companies
Enhance of strategy Deloitte provides
process, Ensure consulting, audit,
efficient strategy enterprise risk, tax,
execution and Bain mainly and financial
monitoring advises Fortune 500 advisory services.
Developing goal companies in The company is
effective and robust corporate strategy, organized into three
strategies in mergers and service areas:
potential futures, Consulting, acquisitions, private human capital,
Ensure efficient strategy, digital, equity investments, strategy and
strategy execution technology, and market analysis, operations, and
Offering and monitoring. operations. and finance. technology.
Sales
channels/whe
re they sell internet (online) internet (online) internet (online) internet (online)
Key orientation on
competitive customers and their
advantage development status, famous status, famous status, famous

Therefore, we can see that one of key advantages is the custom orientation; we
also can consider other competitive advantages as the tools that company provides:
1. Firm Identify innovation fields early
2. Ensure more robust, flexible and agile strategies
3. Benefit from new opportunities
4. Building up foresight functions
5. New Business Development
6. Identify and explore new business fields
7. Train your people to innovate and drive the future

1.4 Relevant PEST Trends

Political factors that impact company
Political factors play a significant role in determining the factors that can affect
the company long-term profitability in a certain country or market. Rohrbeck Heger is
operating not only in Germany but also in a lot of other countries and expose itself to
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different types of political environment and political system risks. Rohrbeck Heger can
closely analyze the following factors of the markets it want to be involved:
1. Level of corruption
2. Bureaucracy and interference of businesses.
3. Legal framework for contract enforcement
4. Intellectual property protection
5. Favored trading partners
6. Anti-trust laws related to consulting services
7. Pricing regulations of government
8. Taxation - tax rates and incentives
9. Wage legislation - minimum wage and overtime
10. Mandatory employee benefits
Economic Factors
The Macro environment factors such as – inflation rate, savings rate, interest
rate, foreign exchange rate and economic cycle determine the aggregate demand and
aggregate investment in an economy. While microenvironment factors such as
competition norms affect the competitive advantage of the firm. Economic factors that
firm should consider while conducting analysis:
1. Type of economic system in countries of operation – what type of
economic system there is and how stable it is
2. Government intervention in the free market
3. Exchange rates, stability of host country currency.
4. Efficiency of financial markets
5. Skill level of workforce in businesses
6. Education level in the economy
7. Labor costs and productivity in the economy
8. Business cycle stage (e.g. prosperity, recession, recovery)
9. Economic growth rate
10. Discretionary income
11. Unemployment rate
12. Inflation rate
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13. Interest rates

Social Factors
Society’s culture and way of doing things influence the culture of an
organization in an environment. Shared beliefs and attitudes of the population play a
great role in how marketers of the company will understand the customers of a given
market. Social factors that should be analyzed:
1. Demographics and skill level of the population
2. Class structure, hierarchy and power structure in the society
3. Education level
4. Culture (gender roles, social conventions etc.)
5. Entrepreneurial spirit and broader nature of the society. Some societies
encourage entrepreneurship while some do not.
6. Attitudes (health, environmental consciousness, etc.)
Technological Factors
Market waves become steeper and shorter, windows of opportunities smaller. In
this environment, adequate instruments to identify innovation fields early, to evaluate
own capabilities to address these fields, to determine the right approach and timing are
required. So consulting firm that gives requirements to the development of other
companies should be concentrated on such factors as:
1. Recent technological developments by competitors
2. New Technologies of marketing analyzing
3. Technology's impact on product offering
4. Impact on cost structure
5. Rate of technological diffusion

1.5 SWOT analysis of the company

Strengths:
1. Well-established system of information flows, because the company works in
the direction of innovation and development of new business ideas, so it has a large
database
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2. They offer not only the development of the core business, but also find ways
of related investment for companies
3. They create a strategy in terms of not only economic benefits but also the
owners' vision of the company's future.
4. Developed system of training and retraining of employees, which is based on
real cases and specific situations
5. Large customer base, which includes such business sharks as BOSCH, TATA,
LG, and SIEMENS
6. Rapid response to changes and market fluctuations
7. Excellent reputation in the market that allows you to work with strong
companies [1]
Weaknesses:
1. Insufficiently developed marketing strategy
2. A relatively small team of employees [8]
3. Limited Services.
Opportunities:
1. Entering new markets through strategic alliances with other consulting firms
2. Development of a consulting system by involving employees within the
client's company, to thoroughly study the situation from the inside.
3. Increasing the value of intangible assets such as a brand
4. Development of potentially new areas of business (Recruitment and training,
HR management, as one of the areas of activity)
5. The beginning of the market recovery after the crisis that will increase the
customer base
6. Increasing the company by diversifying activities
Threats:
1. The global crisis is caused by Сovid 19 (although this can be added to
opportunities, as many companies now need to reorganize their strategy and find a way
out of the crisis, which is what Rohrbeck Heger GmbH is doing)
2. A significant number of stronger competitors in the market
3. New barriers to entry into new markets
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4. Dependence on quality workforce, which cannot always be provided by

suppliers (Universities)
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2 COMPANY'S CURRENT USA MARKET ENTERING STRATEGY

AUDIT

2.1 Objectives for the country market

Since the United States is a center of innovation and startups, the goal of
entering this market is:
1. Gaining access to innovative products and data on the latest
developments and business ideas (Which is extremely important for the company,
because it is engaged in the implementation and search for innovation for its
customers)
2. Expanding the company's brand as an international consulting firm
3. Expand the customer base
4. Occupy a competitive niche in the growing US consulting market [9]
5. Increase the company's profit

2.2 Market entry mode

A joint venture with the USA partner – INVENSITY is a global technology
and innovation consultancy with offices in Germany, USA, This is reasonable
because the US is a remote market, and this option is the least capital-intensive and
optimal solution.[10]

2.3 Target market segment

Start-up companies with the latest and most innovative technologies that need
to develop the right market entry strategy

2.4 Product positioning concept

STORMS:
Scenarios. Tactics. Operations. Response. Manual. Strategy.
Strategic planning of the company's work in terms of corporate forecasting and
integration of innovative systems
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Development of the value offer of a product, for long-term and steady work of
the company [10]
2.5 Marketing mix outline
Price
Pricing policy in this case should be based on the company's reputation,
because the pattern that good cannot be cheap no one has canceled, and therefore the
company with such giant customers as Siemens and Bosch must support the brand
Product
Qualitative planning of the concept of development of start-up companies that
will provide them with rapid growth and value proposition
Place
Silicon Valley as a center for the emergence of new ideas, innovative
technologies and start-ups
Promotion
Cooperation with AT & T [11], advertising through social media and
collaborations with other companies in the market
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3 RECOMMENDATIONS FOR THE STRATEGY OF ENTERING A NEW

MARKET

3.1 General assessment of the current company USA market entry strategy
Given that the US consulting market is quite crowded and includes multimillion-
dollar companies such as McKinsey or the Boston Consulting Group, collaboration
with INTENSITY is generally a good tactic to represent the company in the US market.
In today's world, the main asset of consulting firms is their reputation, and of course
the reputation of their clients, so a German company with such giant clients as Siemens
or Bosch will look decent.
In addition, if talking about the target market, startups are one of the first who
need to develop the company's strategy, create a value proposition and properly
present an innovative product on the market. Therefore, such a choice strategy has a
right to exist and it would be appropriate to implement it in the United States,
although on the other hand it is quite risky because 99% of all startups burn out.
The positioning of the product is quite clear and interesting; the short slogan is
best remembered, even when using such a technique as an abbreviation. Of course, if
you enter a new market with an existing product such as consulting services, the
company has two options; it is to do your job either cheaper than others do, or much
better. In the case of Rohrbeck Heger, this is the right strategy to rely on quality
rather than cheapness.

3.2 Development of strategic recommendation

Table 3.2.1 - SWOT analysis for the USA consulting market
Strength Weaknesses
- Growing market of consulting - A significant number of competing
services companies have already gained a
- The core of multinational reputation in this market
corporations, and as a consequence:
- Overall demand on consulting
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Opportunities Threats
- Integration of consulting firms from - Barriers to market entry such as
national to international brand loyalty, and vertical
integration of many firms
Objectives for the USA market:
- Expand Rohrbeck Heger as an international company
- Increase the company's profits in one of the largest markets in the world
- Involvement of Multinational Companies
- Supply chain management implementation
Market entry mode:
Partnering is almost a necessity when entering foreign markets and in some
parts of the world and Joint ventures as a particular form of partnership that involves
the creation of a third independently managed company. There are many consulting
firms in the US market that already have developed customer bases and feel confident
in the market, and will be ready to merge the two companies to expand. I consider
this to be the best entry into the US market both for increasing the company's capital
and for international business development
Target market segmentation
Geographical segmentation:
Of course, most of the target clients of the consulting firm are in the US
business centers, these are the largest cities such as New York, San Francisco,
Chicago, Washington
Demographic segmentation:
Multinational corporations that need continuous monitoring and surveillance of
changes in the economic and political environment of the world in order to respond
quickly and change the strategic course of the company. For example, Siemens - a
trans national company, one of the activities of which is the production of medical
equipment, in the current period required a reorganization of the strategy of this unit
to effectively meet the demand for medical equipment
Psychographic segmentation:
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Companies that are expanding their business using the latest technologies, or
are looking for a way to better finance new areas of activity. For example,
manufacturers of electronic equipment: Apple, Tesla, Kingston technology
Designing product positioning concept
Given the positioning matrix, Rohrbeck Heger's services in the prestige sector,
ie to have high quality at a high price, because based on the selected market segment,
the company's services can not be cheap or even less quality.
Rohrbeck Heger should evoke associations of stability, high value, prestige,
and reliability.
Table 3.2.2 - Marketing mix development
Product Core product/service:
- High quality strategic analysis and foresight
Actual product:
- Development of a new business strategy, analysis and search for
new financing projects, implementation of innovative
technologies
Augmented product:
- Provision on a temporary basis on 2-3 years of specialists for
adjustment and monitoring of the implemented business strategy,
selection of personnel for the implementation of strategic plans
Price - Premium pricing strategy according to the specifics of target
market segmentation
Place - Offices in places where, according to geographical segmentation,
the largest number of potential customers is concentrated (New
York, San Francisco, Chicago, Washington)
Promotion - Advertising in specialized trade journals or magazines.
- Attracting referrals
- Advertising through local Yellow Pages
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CONCLUSION

Rapid changes in the external environment force companies to apply modern

marketing strategies, which must be implemented on the basis of a comprehensive
assessment of all their areas of operation. The introduction of a comprehensive system
of marketing strategies of the enterprise based on the concept of a balanced scorecard
will improve the results of its activities and increase the long-term efficiency of the
market.
Thus, the company's entry into new markets is a rather complex process that
must take into account many factors such as SWOT market and company analysis, new
market segmentation, positioning and others.
This paper evaluates the activities of Rohrbeck Geger, its current strategy and
provides recommendations for its improvement. Summarizing the above work, we
need to highlight the following:
1. Due to the growing demand for consulting services, the company has a strong
position and it is advisable to expand it as an international company.
2. The US market is one of the most attractive consulting platforms, because
there is the vast majority of all TNCs, so undoubtedly the company is focused on
entering this market
3. The most successful way to enter this market is a partnership or merger with
a company in the United States in the form of a joint venture. This will increase the
company's capital, expand the customer base and attract existing sales channels.
4. Given the company's policy aimed at attracting innovation and ways to finance
new activities, the main customers of this company should be companies with high
technological development and a significant profit base.
5. The pricing policy of the enterprise should be aimed at a prestigious market
segment, in order to maintain the reputation and implementation of supply chain
management.
All these recommendations can be used for successful entry into the US market
and long-term stable operation of the company and its growth as an international and
multinational company. The main problems that the company may face at this stage
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are the global pandemic crisis, border closures and national policies to stimulate
national companies, and despite this in the post-crisis period, consulting companies
will only increase demand for their services, because companies will need a strategy to
overcome the crisis.
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REFERENCES

1. Rohrbeck Heger strategic foresight + innovation [Electronic resource]:

https://www.rohrbeckheger.com (Date of access: 23.05.20).
2. Consulting news [Electronic resource]: https://www.consultancy.uk/news
(Date of access: 23.05.20).
3. Semrush analytical center [Electronic resource]: https://www.semrush.com
(Date of access: 23.05.20).
4. Spotify business platform [Electronic resource]: https://www.shopify.com
(Date of access: 23.05.20).
5. Accenture company site
[Electronic resource]: https://www.accenture.com/us-en (Date of access: 23.05.20).
6. Bain insights [Electronic resource]: https://www.bain.com/insights/global-
growth/ (Date of access: 23.05.20).
7. Deloitte insights [Electronic resource]: https://www2.deloitte.com/us/en.html
(Date of access: 23.05.20).
8. Rohrbeck Heger LinkedIn
[Electronic resource]: https://goo-gl.su/4U811X3 (Date of access: 23.05.20).
9. Size of the consulting market in the United States from 2015 to 2018
[Electronic resource]: https://www.statista.com/statistics/793147/consulting-market-
size-united-states/ (Date of access: 26.05.20).
10. Navigating in STORMS: From Uncertainty to Action [Electronic resource]:
https://www.invensity.com/storms/ (Date of access: 26.05.20).
11. In the US, AT&T rehearses for disaster. [Electronic resource]:
https://twitter.com/Rohrbeckheger/status/1260184489071951872 (Date of access:
26.05.20).