International Marketing Practices

Price Strategy Determining how to set pricing abroad is a pressing issue and must be considered, specifically making note of exchange rate complications, competitor pricing, costs, market structure, perceived product value, etc. [221, 223, 224]. Success is often reliant on properly identifying the price a market can bear [222]. Urbanwood Insights will ultimately price products using value-based pricing associated with consumer valuation of intangible product attributes. However, prior to entering into the marketplace, the ultimate price of the product must account for raw material acquisition, specialized labor, unique raw material attributes, and overseas shipment costs, as well as desired profit margins. To determine consumer valuation, Urbanwood Insights will analyze historical data, specifically of high-end forest products in Japan, to evaluate their competition, as well as survey consumers to determine their willingness to pay for high-end products and evaluate the price the market can bear. Place (Distribution) Strategy Distribution is how the end consumer receives their product; single and multiple channels are often available but will vary between countries [223]. Distribution can be carried out directly or indirectly, through joint ventures with local partners, using licensed technology, or franchise [224]. Partners can be identified, including distributors, agents, etc., to help increase efficiency. Partner decisions should be based on factors such as credentials, expertise, funding, integrity, competence, and capacity [220, 224]. Firms should also consider the importance of compatibility between a given product and its placement, highlighting interaction with target consumers, such as selling high-end products in a showroom [223]. Logistics management operations discussed in Chapter 4 are also vital to the placement strategy discussed in the marketing plan. A Japanese distributor will be utilized to assist with export and facilitate a joint venture with local partners. It will be important to utilize an intermediary and leverage a network of contacts to effectively distribute products and expand market reach, as Japanese business operations are often reliant on established relationships. Intermediaries also allow urban wood firms to operate at capacities they would otherwise be unable to achieve on their own, allowing Urbanwood Insights to focus on its core business operations. In addition, Urbanwood Insights will explore online sales as operations expand and enter international markets, allowing Urbanwood Insights to reach international consumers using new, unique methods, particularly via a company webpage and potentially a third-party provider, like Amazon or Rakuten.

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